California BanCorp (NASDAQ: BCAL) reported a net loss of $16.5 million, or $0.59 diluted loss per share, for the third quarter of 2024. This compares to net income of $190 thousand, or $0.01 per diluted share, in the second quarter of 2024.
The net loss was primarily driven by one-time merger-related impacts, including a $15.0 million after-tax CECL-related provision for credit losses on acquired non-PCD loans and unfunded loan commitments, and $10.6 million of after-tax merger expenses. Excluding these items, the company would have reported net income of $9.1 million, or $0.33 per diluted share.
Net interest income for the quarter increased to $36.9 million from $21.0 million in the prior quarter, and the net interest margin expanded to 4.43% from 3.94%, reflecting the impact of the merger's expanded asset base. The company also successfully executed a core system conversion on September 20, 2024, integrating operations post-merger.
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