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New words:
acknowledged, advertising, auction, bridge, broader, CALB, CBC, certified, CMT, codification, Commerce, Constant, content, customary, cut, damper, deductible, deed, delinquency, disaggregated, disaggregation, diversion, edge, error, expanding, fact, farmland, February, foreclosed, forward, globally, guarantor, hope, important, imprecision, instability, jurisdiction, largest, lieu, LLC, merge, objective, occupied, occurrence, opted, optimistic, pendency, pending, pertain, pessimistic, pressing, problem, proposed, put, receipt, renewal, satisfaction, short, Simplification, slowdown, stalling, strictly, tech, technical, transparency, trended, troughing, unanimously, unused, voting, weather, workforce, world, worse
Removed:
achieve, advance, aggressive, America, ARC, assigned, assuring, ATM, attentive, BOLI, BTFP, Clarita, convene, creation, criteria, death, decay, deep, Deferral, designed, deter, discounting, DLC, effort, employment, evidence, extinguishment, Facilitation, goal, hedge, hedging, hiring, immaterial, implemented, interchange, leading, legacy, LIBOR, margining, Notwithstanding, opening, optional, Paycheck, payroll, penalty, percent, pledge, PPP, processing, profile, Protection, quickly, recognition, Registration, relief, resilient, responsible, Riverside, safe, section, select, shareholder, sound, successful, sunset, swap, Tighter, uncertain, United, weigh, yielding
Financial report summary
?Risks
- Difficult market conditions are adversely affecting the banking industry.
- We may be adversely affected by the lack of soundness of other financial institutions
- We have unrealized losses in our securities portfolio. If required, recognizing these losses would reduce our net earnings and shareholders’ equity, possibly significantly.
- We face risks related to pandemics, natural disasters, global climate change, acts of terrorism and global conflicts.
- RISKS RELATED TO LENDING AND CREDIT
- We may suffer losses in our loan portfolio despite our underwriting practices.
- Construction and land development loans are based upon estimates of costs and values associated with the completed project. These estimates may be inaccurate, and we may be exposed to significant losses on loans for these projects.
- Liquidity, primarily through deposits, is essential to our business. A lack of liquidity, or an increase in the cost of liquidity could materially impair our ability to fund our operations and jeopardize our consolidated financial condition, consolidated results of operation and cash flows.
- We may need to raise additional capital, but additional capital may not be available.
- We rely on the dividends and return of capital it receives from its subsidiary.
- Our growth and expansion may strain our ability to manage our operations and our financial resources.
- Combining the Company and CBC and may be more difficult, costly or time consuming than expected and the anticipated benefits and cost savings of the merger may not be realized.
- Termination of the Merger Agreement could negatively impact us.
- We will be subject to business uncertainties and contractual restrictions while the Merger is pending that could adversely affect our business and operations.
- We will incur substantial costs related to the Merger.
- The Merger Agreement limits our ability to pursue acquisition proposals.
- We may experience goodwill impairment.
- Competition may limit our growth and profitability.
- We are subject to laws regarding the privacy, information security and protection of personal information and any violation of these laws could damage our reputation or otherwise adversely affect our business.
- Failure to keep up with the rapid technological changes in the financial services industry could have an adverse effect on our competitive position and profitability.
- System failure or breaches of our network security, including as a result of cyber-attacks or data security breaches, could subject us to increased operating costs as well as litigation and other liabilities.
- Our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses.
- We are subject to certain operational risks, including, but not limited to, internal or external fraud and data processing system failures and errors.
- We may fail to maintain effective internal controls over financial reporting.
- We rely on third-party service providers for key aspects of our operations.
- Climate change could have a material negative impact on us and our clients.
- Our consolidated financial statements are based in part on assumptions and estimates which, if incorrect, could cause unexpected losses in the future.
- RISKS RELATED TO AN INVESTMENT IN OUR COMMON STOCK
- Our common stock currently has a limited trading market and is thinly traded, and a more liquid market for our common stock may not develop.
- We may issue additional equity securities, or engage in other transactions, which could affect the priority of our common stock, which may adversely affect the market price of our common stock.
- An investment in our common stock is not an insured deposit and is not guaranteed by the FDIC, so you could lose some or all of your investment.
Management Discussion
- ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- Southern California Bancorp is a California corporation incorporated on October 2, 2019, and headquartered in Del Mar, California. On May 15, 2020, we completed a reorganization whereby Bank of Southern California, N.A. became the wholly owned subsidiary of the Company. Bank of Southern California, N.A. has a wholly-owned subsidiary, BCAL OREO1, LLC, which was incorporated on February 14, 2024. BCAL OREO1, LLC is used for holding other real estate owned and other assets acquired by foreclosure. We are regulated as a bank holding company by the Board of Governors of the Federal Reserve System (“Federal Reserve”). The Bank operates under a national charter and is regulated by the Office of Comptroller of the Currency (“OCC”).
- We are a relationship-focused community bank and we offer a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through our 13 branch offices serving Orange, Los Angeles, San Diego and Ventura counties, as well as the Inland Empire. We keep a steady focus on our solution-driven, relationship-based approach to banking, providing clients accessibility to decision makers and enhancing the value of our services through strong client partnerships. Our lending products consist primarily of construction and land development loans, real estate loans, C&I loans and consumer loans, and we are a Preferred SBA Lender. Our deposit products consist primarily of demand deposit, money market, and certificates of deposit. We also provide treasury management services including online banking, cash vault, sweep accounts and lock box services.