BCAL — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-07

• At its June 17, 2026 meeting, the Federal Open Market Committee (“FOMC”) maintained the federal funds target range at 3.50% to 3.75%, reaffirming its objective of maintaining ample reserves in the banking system. The FOMC noted that economic activity continued to expand at a solid pace despite eleva…

• The Federal Reserve’s July 2026 Monetary Policy Report reflected a more cautious inflation outlook compared with March 2026. The June 2026 Summary of Economic Projections showed median 2026 real GDP growth of 2.2%, unemployment of 4.3%, PCE inflation of 3.6%, and core PCE inflation of 3.3%. The medi…

• Recent economic commentary from the Federal Reserve Bank of San Francisco noted that the U.S. economy continues to expand at a solid pace, supported by strong business investment in technology equipment and software, while consumer spending has moderated. The same report noted that elevated energy p…

• economic activity to date. The most recent PCE inflation data cited in that report showed headline PCE inflation at 4.1% in May 2026, with inflation risks remaining mainly to the upside.

• In California, the UCLA Anderson Forecast released in March 2026 indicated that the state’s economic output continued to outpace the national economy, supported by high-productivity sectors such as artificial intelligence and aerospace. However, the forecast also noted ongoing employment weakness, w…

Text removed vs the prior filing · source: 10-Q · 2026-05-08

• At its March 18, 2026, meeting, the Federal Open Market Committee maintained the federal funds rate in a target range of 3.50% to 3.75% amid uncertainty related to geopolitical developments in the Middle East, lagged inflation data following recent energy price increases, and mixed labor market indi…

• The Fed also announced it will increase the System Open Market Account holdings of securities through purchases of Treasury bills and, if needed, other Treasury securities with remaining maturities of three years or less to maintain an ample level of reserves. Such purchase program is meant to ensur…

• Since mid‑2025, U.S. trade policy has continued to evolve, including the termination of certain emergency tariffs, the implementation of temporary broad‑based tariffs, and adjustments to sector‑specific duties. In addition, ongoing geopolitical tensions in the Middle East have increased energy price…

• In California, overall consumer prices are predicted to peak around 3.5% to 3.6% in early 2026 with annual average unemployment remaining above 5% and peak at 5.6% in 2026 then fall to 4.8% in 2027, according to the UCLA Anderson Forecast released on March 4, 2026. The forecast estimated California’…

• Moody’s anticipates GDP growth in California to grow to 2.3% in 2026 and to have a slight decrease to 1.5% in 2027. The state has shifted to the position of the world’s fifth-largest economy, following a decline from its previous fourth-place ranking. California’s economy is cooling off, with slower…

Text added vs the prior filing · source: 10-Q · 2026-08-07

• Because our earnings are primarily dependent on our ability to generate net interest income, we focus on actively monitoring and managing the effects of adverse changes in interest rates on our net interest income. Our interest rate risk is overseen by our management Asset Liability Committee (“ALCO…

• compliance with regulatory guidance in the formulation and implementation of our interest rate risk program. ALCO reviews the results of our interest rate risk modeling quarterly to assess whether we have appropriately measured our interest rate risk, mitigated our exposures appropriately and any re…

• The modeled NII results at June 30, 2026 and December 31, 2025 indicate we would sustain a decrease in NII if interest rates declined due primarily to adjustable-rate loans repricing lower and at a faster pace than the decline in deposit rates. In the current rate environment at June 30, 2026, our N…

Text removed vs the prior filing · source: 10-Q · 2026-05-08

• Because our earnings are primarily dependent on our ability to generate net interest income, we focus on actively monitoring and managing the effects of adverse changes in interest rates on our net interest income. Our interest rate risk is overseen by our management Asset Liability Committee (“ALCO…

• The modeled NII results at March 31, 2026 and December 31, 2025 indicate we would sustain a decrease in NII if interest rates declined due primarily to adjustable-rate loans repricing lower and at a faster pace than the decline in deposit rates. In the current rate environment at March 31, 2026 and …