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1. Company Snapshot

1.a. Company Description

California BanCorp operates as the bank holding company for California Bank of Commerce that provides commercial banking services in California.It accepts various deposit products, including commercial checking, savings, and money market accounts, as well as certificates of deposit.The company also offers asset-based lending loans; standby letters of credit; construction and development loans; real estate loans, such as commercial real estate loans and other loans; small business administration (SBA) loans, including SBA 7(a) and SBA 504 loans; consumer loans, such as secured and unsecured installment loans, and revolving lines of credit; and commercial and industrial loans, including term loans, working capital, accounts receivable and inventory financing, and other business loans to the dental and veterinary industries, contractors, and emerging companies.


In addition, it provides foreign exchange, treasury and cash management, and online and mobile banking services.The company has a full-service branch in California located in Contra Costa County, California; and 4 loan production offices in Alameda, Contra Costa, Sacramento, and Santa Clara.California BanCorp was incorporated in 2007 and is headquartered in Oakland, California.

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1.b. Last Insights on CALB

California BanCorp's recent performance was driven by the proposed merger with Southern California Bancorp, which received regulatory approval. The company's financial results for the second quarter and six months ended June 30, 2024, showed a quarterly loss of $0.68 per share, but the merger is expected to create a stronger bank with increased scale and efficiency.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Challenged Athletes Foundation Set to Roll Out on the 2025 Million Dollar Challenge Ride, October 16–24

Oct -15

Source: globenewswire.com

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Post Heads West: New York Post Media Group Launches "The California Post"

Aug -04

Source: prnewswire.com

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Southern California Bancorp and California Bancorp Complete Merger of Equals

Jul -31

Source: globenewswire.com

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California Bank of Commerce (CALB) Reports Q2 Loss, Lags Revenue Estimates

Jul -29

Source: zacks.com

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California BanCorp Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2024

Jul -29

Source: globenewswire.com

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STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates Merger of Envestnet, Inc. - ENV

Jul -11

Source: prnewswire.com

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SHAREHOLDER ALERT: The M&A Class Action Investigates the Merger of Asensus Surgical, Inc. - ASXC

Jun -07

Source: prnewswire.com

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New Strong Sell Stocks for June 6th

Jun -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Commercial Banking Services

Expected Growth: 2.0%

California BanCorp's 2.0% growth in Commercial Banking Services is driven by increasing demand for cash management and treasury services from small and medium-sized businesses, expansion of commercial lending products, and strategic partnerships with fintech companies to enhance digital banking capabilities.

7. Detailed Products

Commercial Banking

California BanCorp offers a range of commercial banking services, including cash management, treasury management, and commercial lending, to help businesses manage their finances and achieve their goals.

Treasury Management

California BanCorp's treasury management services provide businesses with tools to manage their cash, mitigate risk, and optimize their financial performance.

Commercial Lending

California BanCorp offers a range of commercial lending options, including term loans, lines of credit, and construction loans, to help businesses finance their growth and operations.

Private Banking

California BanCorp's private banking services provide high net worth individuals with personalized financial solutions, including investment management, trust services, and wealth planning.

Wealth Management

California BanCorp's wealth management services provide individuals and families with comprehensive financial planning, investment management, and wealth protection strategies.

8. California BanCorp's Porter Forces

Forces Ranking

Threat Of Substitutes

California BanCorp operates in a highly competitive market with many substitutes, but its strong brand recognition and customer loyalty help to mitigate the threat.

Bargaining Power Of Customers

California BanCorp's customers have significant bargaining power due to the availability of alternative banking services, which puts pressure on the company to maintain competitive pricing and services.

Bargaining Power Of Suppliers

California BanCorp has a diverse supplier base, which reduces the bargaining power of individual suppliers, allowing the company to negotiate favorable terms.

Threat Of New Entrants

While there are barriers to entry in the banking industry, new entrants can still disrupt the market with innovative products and services, posing a moderate threat to California BanCorp.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry and puts pressure on California BanCorp to differentiate itself.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.13%
Debt Cost 8.55%
Equity Weight 59.87%
Equity Cost 8.55%
WACC 8.55%
Leverage 67.04%

11. Quality Control: California BanCorp passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
First Bancorp

A-Score: 6.6/10

Value: 7.0

Growth: 4.9

Quality: 5.9

Yield: 9.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Farmers National Banc

A-Score: 6.2/10

Value: 7.0

Growth: 5.6

Quality: 5.4

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Stellar Bancorp

A-Score: 6.2/10

Value: 6.0

Growth: 4.9

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Western New England Bancorp

A-Score: 6.0/10

Value: 5.4

Growth: 4.4

Quality: 6.2

Yield: 5.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
WesBanco

A-Score: 5.8/10

Value: 5.1

Growth: 4.0

Quality: 4.2

Yield: 8.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
California Bank

A-Score: 4.8/10

Value: 5.8

Growth: 8.4

Quality: 6.3

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.09$

Current Price

25.09$

Potential

-0.00%

Expected Cash-Flows