Rainer Takes CEO Helm at California BanCorp in Post-Merger Leadership Shift

SAN DIEGO, CA – January 07, 2026 – California BanCorp (NASDAQ: BCAL) has announced a significant leadership transition, appointing its current Chairman, David Rainer, to the additional role of Chief Executive Officer. The move, effective as of December 31, 2025, follows the retirement of CEO Steven Shelton and solidifies the executive direction of the bank holding company less than two years after a transformative merger created a statewide commercial banking powerhouse.

Steven Shelton, who guided the bank through its recent merger, has retired from his positions as CEO and Director but will remain with the company in an advisory capacity through the end of 2026. This arrangement signals a commitment to a stable and seamless handover at the top. The appointment of Rainer, a seasoned banking executive with a long history of building successful financial institutions in the state, consolidates leadership and sets a clear strategic course for the bank's future.

“On behalf of our Board of Directors and all of us at the Bank, I want to thank Steve for all he has done to help grow and develop California Bank of Commerce into a premier, statewide relationship-based banking franchise; his efforts were critical in ensuring the success of our 2024 merger and we wish him and his family all the best in his retirement,” said David Rainer, who now serves as both Chairman and CEO. “I am excited about the progress we have made, our profitability, and the continued success of our franchise.”

A New Era of Unified Leadership

David Rainer is no stranger to leading California-based banks through periods of significant growth. His career, spanning over four decades, is marked by a consistent focus on building relationship-centric banks that cater to small and mid-sized businesses. Before becoming Executive Chairman of the newly merged California BanCorp, Rainer was the Executive Chairman and CEO of Southern California Bancorp, one of the two entities in the 2024 merger.

His track record includes founding and leading CU Bancorp and its subsidiary California United Bank from 2005 until its successful sale in 2017. This experience in organically growing and strategically positioning community banks for success is seen as a major asset for California BanCorp as it navigates the competitive landscape. Rainer’s background also includes executive roles at larger institutions like US Bank, giving him a broad perspective on the banking sector. His appointment as both Chairman and CEO streamlines decision-making and aligns the board’s vision directly with executive action.

Forged by a Landmark Merger

The current structure and strategy of California BanCorp were fundamentally shaped by the July 2024 “merger of equals” between the original California BanCorp (then trading as CALB) and Southern California Bancorp (BCAL). The all-stock transaction, valued at approximately $233.6 million at the time of its announcement, was a strategic move to create a leading California-focused business bank.

The combined entity, which retained the California BanCorp name and the BCAL ticker, created an institution with a significantly expanded footprint across key California markets, including San Diego, Orange County, Los Angeles, and the Bay Area. At the time of closing, the new bank held approximately $4.2 billion in assets. The primary rationale for the merger was to achieve the scale necessary to compete more effectively, enhance lending capacity, and invest in technology and talent. By combining complementary business lines and diversifying their loan portfolios, the banks aimed to build a more resilient and profitable franchise.

The leadership structure post-merger was intentionally collaborative, with Rainer serving as Executive Chairman and Shelton as CEO. Shelton’s retirement and Rainer’s assumption of the dual role represents the final, planned step in that integration process, moving the bank from a transitional leadership model to a unified command structure.

A Legacy of Growth and a Smooth Succession

Steven Shelton’s retirement marks the end of a significant chapter for the bank. He is credited with playing a pivotal part in establishing what he called “the premier commercial banking franchise for small to medium-sized businesses in the state of California.” His leadership was instrumental not only in the day-to-day growth of the original California Bank of Commerce but also in navigating the complexities of the 2024 merger.

In his statement, Shelton reflected on his tenure with pride. “It has been a great honor and pleasure to serve the community, the clients and the employees of California BanCorp and California Bank of Commerce,” he said. His decision to stay on as an advisor for a full year is a testament to the planned nature of the succession, ensuring continuity for clients, employees, and investors. This stands in contrast to more abrupt leadership changes that can create uncertainty and is viewed as a sign of strong corporate governance.

Strong Financials and a Competitive Outlook

The leadership transition comes as California BanCorp demonstrates robust financial health, indicating the 2024 merger integration is yielding positive results. The company’s third-quarter 2025 financial results showed a marked improvement, with net income rising to $15.7 million, an 11% increase from the prior quarter. This performance represents a significant turnaround from the net loss reported in the same quarter of the previous year, which was heavily impacted by merger-related expenses.

Key metrics point to a strengthening balance sheet and improving asset quality. The bank’s ratio of non-performing assets to total assets decreased significantly to 0.38% as of September 30, 2025. Furthermore, the bank reported strong deposit growth and loan originations in the quarter, signaling continued business momentum. This solid financial footing provides a strong platform for Rainer to execute his strategic vision, which centers on leveraging the bank’s increased scale to deepen relationships with California’s vibrant small and medium-sized business community.

As it moves forward under Rainer’s unified leadership, California BanCorp appears well-positioned to compete against larger national banks and nimble fintech rivals by doubling down on its core value proposition: providing sophisticated banking solutions with the personalized touch and direct access to decision-makers that define relationship-based banking.