California BanCorp doubles share repurchase authorization to 3.2 million shares
Key Facts
California BanCorp’s board authorized an expansion of its share repurchase program on November 5, adding 1.6 million shares and raising the total authorized limit to 3.2 million shares from 1.6 million previously, according to a company filing. The added shares represent about 5.0% of outstanding common shares, according to Reuters coverage via Investing.com. The decision gives the company additional capacity to continue returning capital to shareholders by buying back its shares. David Rainer, chairman of the company and the bank, said, "Strong earnings and capital position allow us to continue returning capital to shareholders through share repurchases." He added that the expansion reflects the board’s and management’s confidence in the relationship banking strategy and their commitment to delivering sustainable value to shareholders over the longer term.
The increase follows the use of much of the previous authorization. As of November 3, 557,315 shares remained available for repurchase under that authorization, while the company had repurchased 1,042,685 shares since the program began, at a total cost of $19.7 million, according to coverage published via Investing.com. The decision therefore raises the program’s total ceiling to nearly three times the number of shares previously repurchased, with an additional 1.6 million shares available for execution. The authorization does not mean the company will buy the full amount immediately; the timing and size of transactions depend on the execution conditions cited by the company. The company’s stock, BCAL, closed at $22.19 on November 4, according to EL7 data.
Third-quarter results show that repurchases were already proceeding at a faster pace than in the previous quarter. California BanCorp repurchased 209,348 shares in the third quarter of 2026 at an average of $21.81 per share, for a total cost of $4.6 million, compared with 102,594 shares at an average of $19.46 per share and a cost of $2.0 million in the second quarter, according to the company’s results. For the nine months ended September 30, the number of shares repurchased totaled 721,857, at an average of $19.36 per share and a total cost of $14.0 million. These figures partly explain the decline in shares remaining under the previous authorization before the increase was announced. The new expansion also comes in the context of a program the company had been using to return capital to shareholders during the year.
The decision followed a quarter in which the company posted net income of $14.0 million, or $0.43 per diluted share, in the third quarter of 2026. It had reported $14.3 million, or $0.44 per share, in the second quarter, according to the company’s earnings release. At the same time, net interest margin declined to 4.61% from 4.71% in the previous quarter. The company attributed the 10 basis-point decline mainly to a 9 basis-point decrease in the yield on interest-earning assets, alongside a 1 basis-point increase in the cost of funds. The provision for credit losses rose to $3.2 million in the third quarter from $714,000 in the second quarter, according to the same release.
The company said it intends to fund repurchases with available working capital and cash generated from operating activities. The authorization allows purchases in the open market, through privately negotiated transactions or by other means consistent with federal securities laws. According to the published coverage, the timing and size of purchases will be determined by factors including the share price, trading volume, economic conditions and market conditions. The board first approved the program on June 15, 2023, then amended it on May 1, 2025, before the latest expansion. The program has no expiration date and may be suspended, modified or terminated at any time without prior notice.
California Bank of Commerce, a wholly owned subsidiary of California BanCorp, operates 14 branches, including 12 commercial banking offices serving California, according to published coverage. This footprint places the bank’s activities within the market served by the relationship banking strategy Rainer cited. The new decision sets a higher ceiling for repurchases, while leaving actual execution subject to company decisions and market conditions. The flexibility to suspend or terminate the program remains in place under the announced authorization terms.