-- Total Assets of $194 million, up 41%
-- Total Loans of $144 million, up 48%
-- Total Deposits of $153 million, up 38%
-- Net Interest Income of $5.392 million, up 80%
-- Net Interest Margin of 3.52% in 2009 as compared with 3.12% in 2008
During the course of its second full year in business, the Bank has reduced
its start-up related losses dramatically. On the strength of an 80%
increase in net interest income in 2009, the Bank reduced its full year net
loss to ($1,537,000) from ($5,254,000) in 2008. In addition, the Bank
turned positive on an operating basis during 2009, making an operating
profit of $449,000 compared to an operating loss of ($1,337,000) for 2008.
Operating income is defined as net loss adjusted for the loan loss
provision, stock option expense, and extraordinary items. In 2008, the Bank
experienced an extraordinary loss when the Federal Government seized Fannie
Mae, forcing the Bank to write-off $2,046,000 of its preferred stock
investment.
Fourth Quarter 2009 Highlights:
-- Total Assets increased by $16 million over third quarter 2009
-- Total Loans grew $15 million over third quarter 2009
-- Total Deposits rose $6 million over third quarter 2009
-- Net Interest Income reached an all time quarterly high of $1.651
million, up by 14% over the third quarter of 2009
-- Net Interest Margin of 3.75% vs. 3.47% for the third quarter of 2009
In the fourth quarter, the Bank grew earning assets by $10 million,
improved its net interest margin by 28 basis points and made use of these
improvements to make a substantial $456,000 addition to the reserve for
loan losses. As a result, the Bank's fourth quarter net loss widened to
($180,000) versus a net loss of ($96,000) for the third quarter. "Our loan
losses have been minimal thus far (one - $91,000) and we finished 2009 with
no non-performing loans on our books. However, a healthy reserve is an
important building block for a bank like ours that is committed to growing
the franchise," noted Rossell.
Operating income was a positive $467,000 for the fourth quarter 2009
compared to a positive $309,000 for the third quarter 2009, a 51%
improvement.
Capital and Liquidity
The Bank remains well capitalized, with a Tier 1 Leverage Capital Ratio of
12.8% at December 31, 2009, well in excess of the FDIC's 8% standard for a
"well capitalized" bank. In addition, the Bank continues to maintain strong
liquidity, with over $30 million in cash and cash equivalents at December
31, 2009.
"California Bank of Commerce remains on plan. We have tested systems and a
qualified staff. We are growing. Our asset quality is strong and it is
buttressed by a loan loss reserve of $2.565 million. Our capital and
liquidity positions are strong. We have just completed two consecutive
quarters of operating profit. So, we enter 2010 with excellent momentum and
high expectations," commented Rossell.
About California Bank of Commerce
California Bank of Commerce was designed and built to provide a unique
banking experience for its clients. The Bank offers a broad range of
commercial banking services to closely held businesses and professionals
throughout the San Francisco Bay Area. For more information on California
Bank of Commerce and our unique banking experience, call us at
925-283-2265, or visit us at www.californiabankofcommerce.com.
CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
($ Thousands)
SUMMARY INCOME STATEMENT 2009 2008 $ Chg % Chg
-------- -------- -------- --------
Interest income $ 6,739 $ 4,473 $ 2,266 51%
Interest expense (1,347) (1,481) 134 9%
-------- -------- -------- --------
Net interest income before
provision 5,392 2,992 2,400 80%
Provision for loan losses (1,256) (1,152) (104) -9%
-------- -------- -------- --------
Net interest income after
provision 4,136 1,840 2,296 125%
Non-interest income 350 468 (118) -25%
Non-interest expense (6,022) (5,515) (507) -9%
FNMA Securities Loss - (2,046) 2,046 NA
Income (loss) before tax
provision (1,536) (5,253) 3,717 71%
-------- -------- -------- --------
Provision for income taxes (1) (1) - -
-------- -------- -------- --------
Net income (loss) - Period $ (1,537) $ (5,254) $ 3,717 71%
Basic Income (loss) per share $ (0.635) $ (1.910) $ 1.275 67%
CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
($ Thousands)
SUMMARY INCOME
STATEMENT 4th Quarter 2009 3rd Quarter 2009 4th Quarter 2008
---------------- ---------------- ----------------
Interest income $ 1,998 $ 1,784 $ 1,510
Interest expense (347) (341) (443)
---------------- ---------------- ----------------
Net interest income
before provision 1,651 1,442 1,067
Provision for loan
losses (456) (225) (300)
---------------- ---------------- ----------------
Net interest income
after provision 1,194 1,217 767
Non-interest income 149 112 282
Non-interest expense (1,524) (1,426) (1,412)
FNMA Preferred
Security Loss - - -
Income (loss)
before tax
provision (180) (96) (364)
---------------- ---------------- ----------------
Provision for income
taxes - - -
---------------- ---------------- ----------------
Net income (loss) -
Period $ (180) $ (96) $ (364)
Weighted average
shares outstanding 2,750,000 2,750,000 2,750,000
Basic loss per
share $ (0.085) $ (0.054) $ (0.132)
CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
($ Thousands)
SUMMMARY BALANCE
SHEET 4th Quarter 2009 3rd Quarter 2009 4th Quarter 2008
Assets ---------------- ---------------- ----------------
Cash and investment
securities, net $ 47,884 $ 47,204 $ 39,363
Loans, net of
deferred costs/fees 144,163 129,029 97,620
Loan loss reserve (2,565) (2,200) (1,400)
Other 4,282 3,549 1,834
---------------- ---------------- ----------------
Total Assets $ 193,764 $ 177,582 $ 137,417
Liabilities
Demand deposits $ 35,418 $ 34,543 $ 17,787
Interest bearing
deposits 117,256 112,630 92,723
---------------- ---------------- ----------------
Total Deposits 152,674 147,173 110,510
Borrowings & other
liabilities 17,760 6,869 6,574
---------------- ---------------- ----------------
Total Liabilities 170,434 154,042 117,084
Common Stock, net 19,384 19,594 20,333
Preferred Stock, net 3,946 3,946 -
---------------- ---------------- ----------------
Shareholders'
equity 23,330 23,540 20,333
Total
Liabilities and
Equity $ 193,764 $ 177,582 $ 137,417
Contact Information: Contact: Mark DeVincenzi 925-444-2916