About California BanCorp

California BanCorp operates as the bank holding company for California Bank of Commerce (the bank) that provides a variety of business focused financial services primarily to business and professional corporations. The company has a full service branch in California located in Contra Costa County and loan production offices in California located in Alameda County, Contra Costa County, Sacramento County, and Santa Clara County. Some of the products and services that the company offers include commercial checking, savings and money market accounts, certificates of deposit, treasury and cash management services, foreign exchange services, commercial and industrial loans, asset-based loans, loans to dental and veterinary professionals, commercial real estate loans, residential and commercial construction and development loans, online banking, and mobile banking. The company provides a range of commercial lending services, including commercial and industrial loans, commercial real estate loans, and residential and commercial construction and development loans. The company’s specialty commercial lending niches include dental and veterinary lending, commercial contractors, asset-based lending, commercial and residential construction and emerging businesses. The company’s customers are generally small to medium-sized businesses and professional firms that are located in or conduct a substantial portion of their business in its market areas. The majority of the company’s customer-facing offices are loan production offices. Strategy The bank is a relationship-based commercial business bank focused on providing innovative products and services that are value-driven. It maintains a strong credit culture as a foundation of sound asset quality, and it embraces innovation and strive to provide the solutions its customers need and expect. The company focuses on creating value for the communities and clients it serves to provide exceptional return for its shareholders, and also growing relationship deposits and lending those funds to invest in and support the communities it serves, with the ultimate goal of yielding superior growth in earnings per share. Market Area The company is headquartered in the San Francisco Bay Area in Oakland, California. The bank maintains its headquarters in Walnut Creek, California, where it offers full banking services. The company also operates loan production offices in Walnut Creek, Oakland, San Jose and Sacramento, California. The company’s market areas cover primarily the greater San Francisco Bay Area and Sacramento. The company’s branch and loan production offices are located in three contiguous counties in the San Francisco Bay Area: Alameda, Contra Costa and Santa Clara; and Sacramento County. Commercial and Industrial Loans The company has significant expertise in small to middle market commercial and industrial lending, with an emphasis on the dental and veterinary industries, contractors and emerging companies. The company provides a mix of variable and fixed rate commercial and industrial loans. The company extends commercial business loans for working capital, accounts receivable and inventory financing and other business purposes. Generally, short-term loans have maturities ranging from 12 months to 3 years, and ‘term loans’ have maturities ranging from 5 to 10 years. Asset-Based Lending (ABL) Loans A subset of the company’s commercial and industrial loans are structured as asset based lending (ABL) loans, which are secured by the borrower’s accounts receivable or inventory. The company’s ABL loans are structured as callable and cancelable transactions. The ABL loans are originated through and managed by its Business Credit division. Construction and Development Loans The company offers adjustable rate residential and commercial construction loan financing to builders and developers and to consumers who wish to build their own home. The term of construction and development loans generally is limited to 12 to 36 months. Real Estate Loans A significant component of the company’s loan portfolio is loans secured by real estate. These loans include both commercial real estate loans and other loans secured by real estate. The company’s commercial real estate loans generally have terms of 10 years or less, although payments may be structured on a longer amortization basis. Small Business Administration Loans The company offers the U.S. Small Business Administration, or SBA, loans for qualifying businesses for loan amounts up to $5 million. The bank primarily extends SBA loans known as SBA 7(a) loans and SBA 504 loans. SBA 7(a) loans are typically extended for working capital needs, purchase of inventory, purchase of machinery and equipment, debt refinance, business acquisitions, start-up financing or to purchase or construct owner-occupied commercial property. SBA 7(a) loans are typically term loans with maturities up to 10 years for loans not secured by real estate and up to 25 years for real estate secured loans. SBA loans are fully amortizing with monthly payments of principal and interest. SBA 7(a) loans are typically floating rate loans that are secured by business assets and/or real estate. The company’s SBA 7(a) loans are originated through its SBA Loan Department. The SBA Loan Department is staffed by loan officers who provide assistance to qualified businesses. The bank is designated as an SBA Preferred Lender, whereby the SBA has delegated its authority to the company to make, service and liquidate loans. This designation generally facilitates a more efficient marketing and approval process for SBA loans. The company has attained SBA Preferred Lender status nationwide. Consumer Loans The company occasionally makes loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Consumer loans are underwritten based on the borrower’s income, current debt level, past credit history, and the availability and value of collateral. Consumer rates are both fixed and variable, with negotiable terms. The company’s installment loans typically amortize over periods up to 5 years. Deposit Products The company offers a range of commercially focused deposit and treasury management services at its branch locations that are similar to those typically available in the commercial divisions of the larger regional and national banking institutions, including commercial analysis and other cash management accounts, ranging from money market accounts to long-term certificates of deposit. The company’s customers primarily include businesses, associations, organizations and governmental authorities. Its deposits are insured by the FDIC up to statutory limits. Securities The company’s investment portfolio is consisted primarily of the U.S. government agency securities and mortgage-backed securities issued by government-sponsored entities, though it may hold other securities, such as corporate debt securities. Supervision and Regulation As a bank holding company, the company is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (Federal Reserve) under the Bank Holding Company Act of 1956, as amended (the Bank Holding Company Act). The company is also a bank holding company within the meaning of the California Financial Code. As such, the company and its subsidiaries are subject to examination by, and may be required to file reports with, the Federal Reserve and the DFPI. As a California state-chartered commercial bank the bank is subject to supervision, periodic examination and regulation by the California Department of Financial Protection and Innovation (DFPI) and the Federal Deposit Insurance Corporation (FDIC). The bank is supervised and regulated by the California Department of Financial Protection and Innovation (the DFPI) and the Federal Deposit Insurance Corporation (the FDIC). As a California corporation, the company is subject to the limitations of the California Corporations Code, which allows a California corporation to distribute cash or property to shareholders, including as a dividend or repurchase or redemption of shares, if the corporation meets either a retained earnings test or a balance sheet test. The deposit accounts of the bank are insured by the FDIC to the maximum extent provided under federal law. The bank’s deposits are insured by the Deposit Insurance Fund of the FDIC up to the maximum amount permitted by law. As an FDIC insured financial institution, the bank is subject to deposit insurance assessments as determined by the FDIC. Additionally, the bank must publicly disclose the terms of various Community Reinvestment Act-related agreements. The company is subject to the provisions of Regulation W promulgated by the Federal Reserve, which implements Sections 23A and 23B of the Federal Reserve Act. The bank is subject to the Bank Secrecy Act of 1970 as amended by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the Bank Secrecy Act), which gives the federal government powers to address money laundering and terrorist threats through enhanced domestic security measures, expanded surveillance powers and mandatory transaction reporting obligations. For example, the Bank Secrecy Act and related regulations require that the bank report currency transactions that exceed certain thresholds and transactions determined to be suspicious, establish due diligence requirements for accounts and take certain steps to verify customer identification when accounts are opened. The bank is subject to consumer laws and regulations intended to protect consumers in transactions with depository institutions, as well as other laws or regulations affecting customers of financial institutions generally. These laws and regulations include, among others, the Truth in Lending Act, the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Real Estate Settlement and Procedures Act, the Fair Credit Reporting Act, and the Federal Trade Commission Act, among others. Depository institutions with less than $10 billion in assets, such as the bank, are subject to rules promulgated by the Consumer Financial Protection Bureau (CFPB) but continue to be examined and supervised by federal banking regulators for consumer compliance purposes. History California BanCorp was founded in 2007. The company was incorporated in 2007.