Business & Finance
Business and Finance
Business and Finance
Tue, October 20, 2009
Mon, October 19, 2009 California Bank of Commerce: California Bank of Commerce Announces Results for the 3rd Quarter 2009
LAFAYETTE, CA--(Marketwire - October 19, 2009) - California Bank of Commerce (
"California Bank of Commerce continues to attract new business relationships and deepen existing ones. We do so while maintaining strong loan quality, capital, and liquidity positions. The market acceptance we are receiving, after just two years in business, points to a bright future," said John Rossell III, President and CEO.
Third Quarter 2009 Highlights
-- Total Assets were $178 million as of September 30, 2009, up $54 million or 44% from $124 million on the same date one year ago, and up $23 million or 15% compared to $155 million on June 30, 2009. -- Total Loans were $129 million as of September 30, 2009, up $51 million or 65% from $78 million on the same date one year ago, and up $18 million or 16% compared to June 30, 2009. -- The Bank's loan portfolio remains healthy, with no reported delinquent or non-performing loans as of September 30, 2009. -- Total Deposits were $147 million at September 30, 2009, up $52 million or 54% from $95 million on the same date one year ago, and up $22 million or 18% compared to June 30, 2009. -- Non-Interest Bearing deposits were $35 million, compared to $14 million one year ago. Non-Interest Bearing deposits grew by $8 million or 30% during the third quarter of 2009 compared to the second quarter 2009. -- During the third quarter, the Bank improved its loan yields and volumes, and lowered its cost of funds, thus increasing net interest income, both in comparison to the third quarter of 2008 and in comparison to the second quarter of 2009. -- Third quarter net interest income growth moved the Bank closer to profitability, allowing it to grow Shareholder's Equity during the third quarter by $126,523.
Third Quarter 2009 Compared to Second Quarter 2009
Total Loans were $129 million as of September 30, 2009, up $18 million or 16% compared to $111 million on June 30, 2009. Total Commercial and Industrial (C & I) Loans increased $3.5 million to $51 million from $48 million at the end of the second quarter 2009. Total Commercial Real Estate (CRE) Loans increased $14 million to $56 million from $42 million at the end of the second quarter 2009.
Total Deposits were $147 million at September 30, 2009, up $22 million or 18% compared to $125 million on June 30, 2009. During the third quarter, Core Deposits increased $14 million or 14% to $115 million from $101 million in the second quarter 2009. Included among Core Deposits, Non-Interest Bearing Demand deposits increased $8 million or 31% to $35 million from $26 million in the second quarter 2009.
Over the course of the third quarter, the Bank continued to move closer to profitability, recording a $96,054 net loss for the third quarter 2009, an 86% improvement over the loss in second quarter 2009. Net Income during the second quarter 2009 was negatively impacted by an increase in the Bank's contribution to the allowance for loan losses ($475,000) and by an FDIC special assessment that was levied on all banks during the quarter ($65,790). Excluding the provision for loan losses and FDIC special assessment, the Bank's quarterly net loss decreased by $313,139, compared to the second quarter of 2009. During the third quarter, the Bank increased Shareholder's Equity by $126,523. Shareholders Equity grew primarily because the Bank's net loss was smaller than its stock option expense. Stock option expense does not affect Shareholders Equity.
During the third quarter, Net Interest Income increased by $185,294 from the second quarter 2009, as a result of strong earning asset growth, offsetting a decline in the Net Interest Margin. The Bank's Net Interest Margin declined by 14 basis points, from 3.61% in the second quarter 2009 to 3.47% in the third quarter, as deposit growth outstripped loan growth.
Third Quarter -- Year Over Year Comparison
Total Loans were $129 million as of September 30, 2009, up $51 million or 65% from $78 million on the same date one year ago. C&I Loans reached $51 million at the end of the third quarter 2009, up $15 million or 42% from the end of the third quarter 2008. CRE Loans reached $56 million at the end of the third quarter 2009, up $30 million from $26 million the end of the third quarter 2008.
Total Deposits were $147 million at September 30, 2009, up $52 million or 54% from $95 million on the same date one year ago. Core deposits reached $115 million at the end of the third quarter 2009, up $53 million from the end of the third quarter 2008. Non-interest bearing demand deposits reached $35 million at the end of the third quarter 2009, representing 24% of total deposits at the end of the current quarter compared to 15% of total deposits a year ago.
The Bank's $96,054 net loss for the third quarter of 2009 compares to a $2,855,478 net loss for the same quarter of 2008. The 2008 loss was affected by a write down of the Bank's FNMA investment of $2,045,875. Net Interest Income was $1,442,478 for the third quarter 2009, up $604,401 over the same period in 2008. Improvements in loan yields and volume, as well as lower cost of funds contributed to the increase in net interest income.
Capital and Liquidity
The Bank remains well capitalized, with a Tier 1 Leverage Capital Ratio of 13% at September 30, 2009. In addition, the Bank continues to maintain strong liquidity, with over $25 million in cash and cash equivalents at September 30, 2009.
"California Bank of Commerce remains on plan. We are growing. Our asset quality is strong. Our capital and liquidity positions are strong. We are young, but we are making steady progress toward profitability," said Rossell.
About California Bank of Commerce
California Bank of Commerce was designed and built to provide a unique banking experience for its clients. The Bank offers a broad range of commercial banking services to closely held businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at 925-283-2265, or visit us at [ www.californiabankofcommerce.com ].
CALIFORNIA BANK OF COMMERCE UNAUDITED SUMMARY FINANCIAL STATEMENTS ($ Thousands) 3rd 2nd 3rd Quarter Quarter Quarter SUMMARY INCOME STATEMENT 2009 2009 2008 --------- --------- --------- Interest income $ 1,784 $ 1,554 $ 1,282 Interest expense (341) (297) (444) --------- --------- --------- Net interest income before provision 1,442 1,257 838 Provision for loan losses (225) (475) (325) --------- --------- --------- Net interest income after provision 1,217 782 513 Non-interest income 112 49 69 Non-interest expense (1,426) (1,525) (1,392) FNMA Preferred Security Loss - - (2,046) Income (loss) before tax provision (96) (694) (2,855) --------- --------- --------- Provision for income taxes - - - --------- --------- --------- Net income (loss) - Period $ (96) $ (694) $ (2,855) ========= ========= ========= Basic loss per share $ (0.054) $ (0.273) $ (1.038) Weighted average shares outstanding 2,750,000 2,750,000 2,750,000 3rd 2nd 3rd Quarter Quarter Quarter SUMMMARY BALANCE SHEET 2009 2009 2008 --------- --------- --------- Assets Cash and Investments $ 48,072 $ 44,433 $ 45,760 Loans, net of deferred costs/fees 129,029 111,328 78,251 Loan loss reserve (2,200) (1,975) (1,100) Other 2,682 1,270 1,285 --------- --------- --------- Total Assets $ 177,582 $ 155,056 $ 124,195 Liabilities Demand deposits $ 34,543 $ 26,543 $ 14,285 Interest bearing deposits 112,630 98,335 81,140 --------- --------- --------- Total Deposits $ 147,173 $ 124,878 $ 95,425 Other borrowings & other liabilities 6,869 6,764 8,260 --------- --------- --------- Total Liabilities 154,042 131,642 103,685 Common Stock, net 19,595 19,468 20,510 Preferred Stock, net 3,946 3,946 - --------- --------- --------- Shareholders' equity 23,540 23,414 20,510 Total Liabilities and Equity $ 177,582 $ 155,056 $ 124,195 ========= ========= =========
