-- Capital ratios substantially exceeded the regulatory standard for
"well capitalized" with a Total Risk-Based Capital Ratio of 16.38%, Tier I
Risk Based Capital Ratio of 15.09%, and Tier I Leverage Ratio of 16.10%.
-- Total Assets were $155 million as of June 30, 2009, up $52 million or
50% from $103 million on the same date one year ago, and up $17 million or
13% compared to $138 million on March 31, 2009.
-- Total Loans were $111 million as of June 30, 2009, up $57 million or
over 100% from $54 million on the same date one year ago, and up $12
million or 12% compared to $99 million on March 31, 2009.
-- Total Deposits were $125 million as of June 30, 2009, up $45 million
or 56% from $80 million on the same date one year ago, and up $18 million
or 17% compared to $107 million on March 31, 2009.
-- Non-Interest Bearing deposits were $27 million, representing 21% of
Total Deposits at June 30, 2009 compared to $13 million or 17% of Total
Deposits one year ago. Non-Interest Bearing deposits grew by $5 million
during the second quarter of 2009.
-- The Bank's Net Interest Margin improved to 3.61% for the quarter ended
June 30, 2009 compared to 2.96% during the second quarter of 2008 and
compared to 3.17% during the first quarter of 2009.
-- Total Cash and Cash Equivalents stood at $24 million at June 30, 2009,
relatively unchanged from a year ago and from the previous quarter.
As a result of continuing economic weakness, the bank found it prudent to
increase its Allowance for Loan and Lease Losses to 1.78% of Total Loans at
June 30, 2009, compared to 1.45% as of June 30, 2008 and 1.52% at March 31,
2009. The increase in the allowance was due to management's assessment of
the California economy and its potential impact on the Bank's loan
portfolio. The Bank had no loan losses during its almost two years in
operation. At June 30, 2009, the Bank had no non-accrual or non-performing
loans on its books.
Despite the burden of building its allowance for loan and lease losses, the
Bank continued to make substantial progress toward breakeven, with strong
growth in net interest income and careful management of controllable
overhead.
The Bank reported a net loss for the second quarter of $693,984, which
represented a $381,880 or 35% improvement over the loss in the second
quarter of 2008. Net Income during the second quarter 2009 was negatively
impacted by the 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 reduced its 2009 second
quarter loss by $607,670 compared to the second quarter 2008 and made a
$313,139 improvement compared to the first quarter of 2009.
Second Quarter - Year Over Year Comparison
Net Interest Income was $1,257,184 for the second quarter 2009, up $663,292
over the same period in 2008.
Commercial and Industrial (C & I) Loans, the core of the Bank's business
focus, reached $48 million at the end of the second quarter 2009, up $20
million or 73% from the end of the second quarter 2008.
Related to its loans to closely held businesses, the Bank's portfolio of
term commercial real estate loans reached $42 million at the end of the
second quarter 2009, up $22 million from the end of the second quarter
2008.
The Bank's deposit composition improved over the second quarter 2008. Core
deposits reached $101 million at the end of the second quarter 2009, up $44
million from the end of the second quarter 2008. Non-interest bearing
demand deposits reached $27 million at the end of the second quarter 2009,
growing $13 million over the previous 12 months. Interest Bearing core
deposits were $74 million at the end of the second quarter, up $31 million
from the end of the second quarter 2008.
Second Quarter 2009 Compared to First Quarter 2009
Net Interest Income increased by $215,281 from the first quarter 2009 as a
result of strong earning asset growth and a higher net interest margin.
Commercial and Industrial (C & I) Loans increased $4 million or 10% to $48
million from $43 million at the end of the first quarter 2009.
Core Deposits increased $9 million or 10% to $101 million from $92 million
in the first quarter 2009. Non-Interest Bearing Demand deposits increased
$5 million or 26% to $27 million from $21 million in the first quarter
2009. Other interest bearing core deposits increased during the second
quarter, by $4 million to $75 million, from $71 million at the end of the
first quarter 2009.
Capital and Liquidity
The Bank remains well capitalized with a Tier 1 Leverage Capital Ratio of
16.10% at June 30, 2009. In addition, the Bank continues to maintain
strong liquidity, with over $24 million in cash and cash equivalents at
June 30, 2009.
"California Bank of Commerce is making solid progress toward breakeven and
remains on plan for the year. The Bank continues to be a favored choice of
closely held Bay Area businesses. So, we intend to stay focused on serving
established business and their owners and key employees," said Rossell.
About California Bank of Commerce
California Bank of Commerce was designed and built to provide a unique
banking experience for businesses, entrepreneurs, and their families.
California Bank of Commerce provides a broad range of commercial banking
and advisory services to mid-market businesses and professionals throughout
the San Francisco Bay Area. For more information on California Bank of
Commerce and our unique banking experience, call us at 925-283-2265, or
visit us at www.californiabankofcommerce.com.
CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
($ Thousands)
2nd Quarter 1st Quarter 2nd Quarter
SUMMARY INCOME STATEMENT 2009 2009 2008
------------ ------------ ------------
Interest income $ 1,554 $ 1,403 $ 937
Interest expense (297) (361) (343)
------------ ------------ ------------
Net interest income before
provision 1,257 1,042 594
Provision for loan losses (475) (100) (315)
------------ ------------ ------------
Net interest income after
provision 782 942 279
Non-interest income 49 40 50
Non-interest expense (1,525) (1,547) (1,405)
Income (loss) before tax
provision (694) (565) (1,076)
------------ ------------ ------------
Provision for income taxes - (1) -
------------ ------------ ------------
Net income (loss) - Period $ (694) $ (566) $ (1,076)
============ ============ ============
Weighted average shares
outstanding 2,750,000 2,750,000 2,750,000
Income (loss) per share $ (0.252) $ (0.206) $ (0.391)
2nd Quarter 1st Quarter 2nd Quarter
SUMMMARY BALANCE SHEET 2009 2009 2008
------------ ------------ ------------
Assets
Cash and Investments $ 44,433 $ 38,858 $ 49,015
Loans, net of deferred costs/fees 111,328 98,959 53,791
Loan loss reserve (1,975) (1,500) (775)
Other 1,270 1,263 1,185
------------ ------------ ------------
Total Assets $ 155,056 $ 137,580 $ 103,216
Liabilities
Demand deposits $ 26,543 $ 21,102 $ 13,493
Interest bearing deposits $ 98,335 $ 85,964 $ 66,645
------------ ------------ ------------
Total Deposits 124,878 107,066 80,138
Other borrowings & other
liabilities 6,764 6,640 221
------------ ------------ ------------
Total Liabilities 131,642 113,706 80,359
Common Stock, net 19,468 19,926 22,857
Preferred Stock, net 3,946 3,948 -
------------ ------------ ------------
Shareholders' equity 23,414 23,874 22,857
------------ ------------ ------------
Total Liabilities and Equity $ 155,056 $ 137,580 $ 103,216
Contact Information: Contact: Mark DeVincenzi 925-444-2916