Company Website:
http://www.californiabankofcommerce.com
LAFAYETTE, Calif. -- (Business Wire)
California Bank of Commerce (OTCBB: CABC) reported net income of $920
thousand, or $0.32 per share, for the second quarter 2014, up from $597
thousand, or $0.21 per share, for the second quarter of 2013. For the
first six month of 2014, net income was $1.7 million, or $0.58 per
share, up from $1.2 million, or $0.40 per share, for the same period in
2013.
On June 30, 2014, the Bank announced the successful completion of its
$16 million public stock offering. “Our Bank is growing and this new
capital will help open up additional growth opportunities. We were very
pleased and gratified that our existing and new shareholders were not
only able to participate in our capital raise but supported it beyond
our expectations,” said Steve Cortese, Chairman of California Bank of
Commerce.
“Our strong results for the second quarter and first six months of 2014
reflects a continuing story of quality balance sheet growth and
accelerating earnings, driven by an experienced team of banking
professionals,” said Terry A. Peterson President and CEO. “With our
successful capital raise behind us, we are also accelerating our search
for additional experienced bankers to join our team and further fuel our
growth,” said Peterson.
Continued strong quarterly financial results versus 2013:
-
Net income of $920 thousand, up 54% from 2Q 2013
-
Earnings per share of $0.32, up 55%
-
Net interest income of $3.6 million up 17%
-
Net interest margin improved to 4.17%, up from 3.88% last year
-
Return on average assets reached 1% versus 0.71% last year
Strong loan and deposit growth:
-
Total loans of $302 million, up $43 million or 16% from 2Q 2013
-
Total deposits of $334 million, up $53 million or 19%
-
Total noninterest bearing deposits of $125 million, up $36 million or
40%
Continued strong credit quality:
-
Total nonperforming assets declined to 0.97% of assets, from 1.31%
last year
-
Loan loss reserve of $5.4 million increased 9% over last year
-
Reserve ratio fell to 1.80% of total loans from 1.92% as a result of
improvement in credit performance
Improved book value and stronger capital ratio:
-
Tangible book value per share $10.62, up $1.02 or 11% from last year
-
Capital ratios improved on stronger earnings and additional equity
capital
Net Interest Income and Margin
For the quarter ended June 30, 2014 compared to the quarter ended June
30, 2013, net interest income increased by 17% to $3.6 million compared
to $3.1 million last year. The year over year increase in net interest
income was primarily driven by a combination of strong growth in average
loan balances as well as an improved net interest margin.
The net interest margin for the second quarter 2014 was 4.17%, improving
29 basis points compared to the 3.88% average margin in the second
quarter of 2013, while the margin was down six basis points from first
quarter 2014. “We were able to improve net interest margin year over
year, however with our stronger loan to deposit ratio, continuing this
improvement will be our challenge and opportunity,” said Peterson.
Non-Interest Income
Non-interest income reached $612 thousand in the second quarter of 2014
compared to $322 in the second quarter of 2013 and $427 thousand in the
first quarter 2014. The increase in non-interest income was due to a
combination of an SBA loan sale, increased commercial loan and deposit
volumes, and related fees.
Non-Interest Expense
Non-Interest Expense during the second quarter of 2014 increased $410
thousand or 18% compared to the same period in 2013. The increased costs
were primarily due to staff additions to support expanded business
development efforts, enhance client support services, and new product
development and delivery services.
The Bank continues to balance its overall growth with service level
operating efficiency. Consequently, the Bank’s efficiency ratio, (total
overhead as a percent of revenue) decreased to 63.6% in the second
quarter of 2014 compared to 67.7% for the same period in 2013.
Net Income
Net income reached $920 thousand for the second quarter 2014, increasing
$323 thousand or 54% compared to the same period in 2013. Net income
improved for the quarter on increased average earning assets and an
improved net interest margin. Return on average assets was 1.00% during
the second quarter of 2014, compared to 0.71% for the same period in
2013, while return on average common equity reached 12.12% during the
second quarter of 2014 compared to 8.97% for the second quarter of 2013.
Balance Sheet
As of June 30, 2014, Total Assets were up by $73 million or 21% to $422
million with loans up by $43 million or 16% year over year to $302
million compared to June 30, 2013. Commercial and Industrial (C&I) loans
were the primary driver of loan growth, increasing $26 million over the
second quarter of 2013 to $151 million. “We remain focused on our core
business banking strategy exemplified by C&I loans comprising 50% of our
total loan portfolio. The majority of our C&I portfolio floats with the
Prime Rate making us well positioned for an eventual rising interest
rate environment,” said Peterson.
For the quarter ended June, 2014, total asset growth was funded
primarily with deposits, which were up by $53 million or 19%, with
non-interest bearing deposits increasing by $36 million or 40% over the
quarter ended June 30, 2013. Non-interest bearing deposits represented
38% of total deposits at June 30, 2014 compared to 32% at June 30, 2013.
Credit Quality
The Bank’s overall loan quality remains strong. For the second quarter
of 2014, total non-performing loans were $4.1 million or 0.97% of total
assets at June 30, 2014, compared to $4.6 million or 1.31% of total
assets at June 30, 2013. The reserve for loan losses increased to $5.43
million as of June 30, 2014 compared to $4.97 million at June 30, 2013.
As a percent of total loans, the reserve level continues to reflect the
conservative posture of the Bank, at a healthy level of 1.80% of total
loans at the end of the current period.
“We are pleased the investment community validated our business model by
quickly oversubscribing to our $16 million capital raise. We are proud
to announce these financial results to our new and existing
shareholders,” said Peterson.
About California Bank of Commerce
California Bank of Commerce was designed and built to provide a unique
banking experience for its clients. The Bank offers a broad range of
commercial banking services to closely held businesses and professionals
throughout the San Francisco Bay Area. For more information on
California Bank of Commerce and our unique banking experience, call us
at (925) 283-2265, or visit us at www.californiabankofcommerce.com.
|
|
|
CALIFORNIA BANK OF COMMERCE
|
|
UNAUDITED SUMMARY FINANCIAL STATEMENTS
|
|
| |
|
|
|
| |
|
| |
|
| |
|
|
|
|
| |
|
| |
|
INCOME STATEMENT
|
|
($ Thousands)
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | Three Months Ended | | | | | | Year Over Year Change |
| | | | | | 30-Jun-14 | | | 31-Mar-14 | | | 30-Jun-13 | | | | | |
| $ |
| | | % |
|
|
Interest income
| | | | |
$
|
3,954
| | | |
$
|
3,859
| | | |
$
|
3,446
| | | | | | |
$
|
508
| | | |
15
|
%
|
|
Interest expense
| | | | |
|
(307
|
)
| | |
|
(298
|
)
| | |
|
(342
|
)
| | | | | |
|
35
|
| | |
-10
|
%
|
|
Net interest income before provision
| | | | | |
3,647
| | | | |
3,561
| | | | |
3,104
| | | | | | | |
543
| | | |
17
|
%
|
|
Provision to the Loan Loss Reserve
| | | | |
|
(3
|
)
| | |
|
153
|
| | |
|
(58
|
)
| | | | | |
|
55
|
| | |
-95
|
%
|
|
Net interest income after provision
| | | | |
$
|
3,644
| | | |
$
|
3,714
| | | |
$
|
3,046
| | | | | | |
$
|
598
| | | |
20
|
%
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Non-interest income
| | | | | |
612
| | | | |
427
| | | | |
290
| | | | | | | |
322
| | | |
111
|
%
|
|
Non-interest expense
| | | | |
|
(2,707
|
)
| | |
|
(2,857
|
)
| | |
|
(2,297
|
)
| | | | | |
|
(410
|
)
| | |
18
|
%
|
|
Income before tax provision
| | | | | |
1,549
| | | | |
1,284
| | | | |
1,039
| | | | | | | |
510
| | | |
49
|
%
|
|
Provision for income taxes
| | | | |
|
(629
|
)
| | |
|
(528
|
)
| | |
|
(442
|
)
| | | | | |
|
(187
|
)
| | |
42
|
%
|
|
Net income
| | | | |
$
|
920
|
| | |
$
|
756
|
| | |
$
|
597
|
| | | | | |
$
|
323
|
| | |
54
|
%
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Preferred Dividends
| | | | |
|
27
|
| | |
|
27
|
| | |
|
28
|
| | | | | |
|
(1
|
)
| | |
-4
|
%
|
|
Income to Common Shareholders
| | | | |
$
|
893
|
| | |
$
|
729
|
| | |
$
|
569
|
| | | | | |
$
|
324
|
| | |
57
|
%
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Basic Earnings per Common share
| | | | |
$
|
0.320
| | | |
$
|
0.263
| | | |
$
|
0.207
| | | | | | |
$
|
0.114
| | | |
55
|
%
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Weighted average shares outstanding
| | | | | |
2,787,061
| | | | |
2,768,893
| | | | |
2,757,243
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Return on Average Assets
| | | | | |
1.00
|
%
| | | |
0.85
|
%
| | | |
0.71
|
%
| | | | | | | | | |
|
Return on Average Tangible Common Equity
| | | | | |
12.12
|
%
| | | |
10.69
|
%
| | | |
8.97
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Non Interest Expense to Average Total Assets
| | | | | |
2.93
|
%
| | | |
3.22
|
%
| | | |
2.73
|
%
| | | | | | | | | |
|
Efficiency Ratio
| | | | | |
63.6
|
%
| | | |
71.6
|
%
| | | |
67.7
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| |
|
| |
|
|
|
| |
|
| |
|
CALIFORNIA BANK OF COMMERCE
|
|
UNAUDITED SUMMARY FINANCIAL STATEMENTS
|
| | | | | | | | | | | | | | | |
|
|
INCOME STATEMENT
|
|
($ Thousands)
|
| | | | | | | | | | | | | | | |
|
| | | | | Six Months Ended | | | | | Year Over Year Change |
| | | | | 30-Jun-14 | | | 30-Jun-13 | | | | |
| $ |
| | | % |
|
|
Interest income
| | | | |
$
|
7,813
| | | |
$
|
6,811
| | | | | |
$
|
1,002
| | | |
15
|
%
|
|
Interest expense
| | | | |
|
(605
|
)
| | |
|
(722
|
)
| | | | |
|
117
|
| | |
-16
|
%
|
|
Net interest income before provision
| | | | | |
7,208
| | | | |
6,089
| | | | | | |
1,119
| | | |
18
|
%
|
|
Provision to the Loan Loss Reserve
| | | | |
|
150
|
| | |
|
(269
|
)
| | | | |
|
419
|
| | |
-156
|
%
|
|
Net interest income after provision
| | | | |
$
|
7,358
| | | |
$
|
5,820
| | | | | |
$
|
1,538
| | | |
26
|
%
|
| | | | | | | | | | | | | | | |
|
|
Non-interest income
| | | | | |
1,039
| | | | |
639
| | | | | | |
400
| | | |
63
|
%
|
|
Non-interest expense
| | | | |
|
(5,564
|
)
| | |
|
(4,636
|
)
| | | | |
|
(928
|
)
| | |
20
|
%
|
|
Income before tax provision
| | | | | |
2,833
| | | | |
1,823
| | | | | | |
1,010
| | | |
55
|
%
|
|
Provision for income taxes
| | | | |
|
(1,157
|
)
| | |
|
(672
|
)
| | | | |
|
(485
|
)
| | |
72
|
%
|
|
Net income
| | | | |
$
|
1,676
|
| | |
$
|
1,151
|
| | | | |
$
|
525
|
| | |
46
|
%
|
| | | | | | | | | | | | | | | |
|
|
Preferred Dividends
| | | | |
|
54
|
| | |
|
55
|
| | | | |
|
(1
|
)
| | |
-2
|
%
|
|
Income to Common Shareholders
| | | | |
$
|
1,622
|
| | |
$
|
1,096
|
| | | | |
$
|
526
|
| | |
48
|
%
|
| | | | | | | | | | | | | | | |
|
|
Basic Earnings per Common share
| | | | |
$
|
0.584
| | | |
$
|
0.398
| | | | | |
$
|
0.186
| | | |
47
|
%
|
| | | | | | | | | | | | | | | |
|
|
Weighted average shares outstanding
| | | | | |
2,778,027
| | | | |
2,757,243
| | | | | | | | | |
| | | | | | | | | | | | | | | |
|
|
Return on Average Assets
| | | | | |
0.92
|
%
| | | |
0.68
|
%
| | | | | | | | |
|
Return on Average Common Equity
| | | | | |
11.43
|
%
| | | |
8.78
|
%
| | | | | | | | |
| | | | | | | | | | | | | | | |
|
|
Non Interest Expense to Avg. Total Assets
| | | | | |
3.07
|
%
| | | |
2.73
|
%
| | | | | | | | |
|
Efficiency Ratio
| | | | | |
67.5
|
%
| | | |
68.9
|
%
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
CALIFORNIA BANK OF COMMERCE
|
|
UNAUDITED SUMMARY FINANCIAL STATEMENTS
|
| | | | | | | | | | | | | | | | | | |
|
|
BALANCE SHEET
|
|
($ Thousands)
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | Year Over Year Change |
| Assets | | | | | 30-Jun-14 | | | 31-Mar-14 | | | 30-Jun-13 | | | | |
| $ |
| | | % |
|
|
Total Cash and Investments
| | | | |
$
|
110,742
| | | |
$
|
71,859
| | | |
$
|
83,149
| | | | | |
$
|
27,593
| | | |
33
|
%
|
|
Loans, net of deferred costs/fees
| | | | | |
301,520
| | | | |
291,422
| | | | |
258,963
| | | | | |
$
|
42,557
| | | |
16
|
%
|
|
Loan Loss Reserve
| | | | | |
(5,425
|
)
| | | |
(5,420
|
)
| | | |
(4,970
|
)
| | | | |
$
|
(455
|
)
| | |
9
|
%
|
|
Other
| | | | |
|
15,081
|
| | |
|
14,946
|
| | |
|
12,035
|
| | | | |
$
|
3,046
|
| | |
25
|
%
|
| Total Assets | | | | |
$
|
421,918
|
| | |
$
|
372,807
|
| | |
$
|
349,177
|
| | | | |
$
|
72,741
|
| | |
21
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| Liabilities & Shareholders' Equity | | | | | | | | | | | | | | | | | | | |
|
Non-interest Bearing Deposits
| | | | |
$
|
125,449
| | | |
$
|
101,643
| | | |
$
|
89,518
| | | | | |
$
|
35,931
| | | |
40
|
%
|
|
Interest Bearing Deposits
| | | | |
|
209,042
|
| | |
|
201,105
|
| | |
|
191,644
|
| | | | |
$
|
17,398
|
| | |
9
|
%
|
|
Total Deposits
| | | | |
$
|
334,491
| | | |
$
|
302,748
| | | |
$
|
281,162
| | | | | |
$
|
53,329
| | | |
19
|
%
|
|
Total Borrowings and Other Liabilities
| | | | |
|
30,682
|
| | |
|
30,209
|
| | |
|
30,601
|
| | | | |
$
|
81
|
| | |
0
|
%
|
|
Total Liabilities
| | | | |
$
|
365,173
| | | |
$
|
332,957
| | | |
$
|
311,763
| | | | | |
$
|
53,410
| | | |
17
|
%
|
| | | | | | | | | | | | | | | | | | |
|
|
Shareholder's Equity
| | | | |
$
|
56,745
|
| | |
$
|
39,850
|
| | |
$
|
37,414
|
| | | | |
$
|
19,331
|
| | |
52
|
%
|
| Total Liabilities & Shareholders' Equity | | | | |
$
|
421,918
|
| | |
$
|
372,807
|
| | |
$
|
349,177
|
| | | | |
$
|
72,741
|
| | |
21
|
%
|
| | | | | | | | | | | | | | | | | | |
|
|
Common Shares Outstanding
| | | | | |
4,311,248
| | | | |
2,768,893
| | | | |
2,757,243
| | | | | | |
1,554,005
| | | |
56
|
%
|
|
Book Value per Common Share
| | | | |
$
|
10.62
| | | |
$
|
10.44
| | | |
$
|
9.60
| | | | | |
$
|
1.02
| | | |
11
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | |
|
Average Balances - Period | | | | | 2Q 2014 | | | 1Q 2014 | | | 2Q 2013 | | | | | | | | |
|
Total Assets
| | | | |
$
|
370,544
| | | |
$
|
360,431
| | | |
$
|
337,711
| | | | | | | | | |
|
Total Loans
| | | | |
$
|
294,837
| | | |
$
|
283,559
| | | |
$
|
249,442
| | | | | | | | | |
|
Total Investments
| | | | |
$
|
40,584
| | | |
$
|
46,252
| | | |
$
|
43,238
| | | | | | | | | |
|
Total Earning Assets
| | | | |
$
|
350,558
| | | |
$
|
341,620
| | | |
$
|
320,909
| | | | | | | | | |
|
Total Non-Interest Bearing Deposits
| | | | |
$
|
98,439
| | | |
$
|
98,713
| | | |
$
|
82,947
| | | | | | | | | |
|
Total Deposits
| | | | |
$
|
295,574
| | | |
$
|
289,685
| | | |
$
|
269,315
| | | | | | | | | |
|
Total Borrowings
| | | | |
$
|
29,731
| | | |
$
|
29,112
| | | |
$
|
29,000
| | | | | | | | | |
|
Tangible Common Equity
| | | | |
$
|
30,450
| | | |
$
|
28,697
| | | |
$
|
26,691
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | |
|
Average Yields and Cost | | | | | 2Q 2014 | | | 1Q 2014 | | | 2Q 2013 | | | | | | | | |
|
Net Interest Margin
| | | | | |
4.17
|
%
| | | |
4.23
|
%
| | | |
3.88
|
%
| | | | | | | | |
|
Yield on Earning Assets
| | | | | |
4.52
|
%
| | | |
4.58
|
%
| | | |
4.31
|
%
| | | | | | | | |
|
Cost of Interest Bearing Liabilities
| | | | | |
0.54
|
%
| | | |
0.55
|
%
| | | |
0.64
|
%
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
End of Period | | | | | 30-Jun-14 | | | 31-Mar-14 | | | 30-Jun-13 | | | | | | | | |
|
Loan Loss Reserve to Total Loans
| | | | | |
1.80
|
%
| | | |
1.87
|
%
| | | |
1.92
|
%
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
|
NPAs (incl non performing TDRs) to Total Assets
| | | | | |
0.88
|
%
| | | |
1.00
|
%
| | | |
0.39
|
%
| | | | | | | | |
|
Performing TDRs to Total Assets
| | | | |
|
0.09
|
%
| | |
|
0.22
|
%
| | |
|
0.92
|
%
| | | | | | | | |
|
Total NPAs
| | | | | |
0.97
|
%
| | | |
1.22
|
%
| | | |
1.31
|
%
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
|
Tier I Leverage Ratio
| | | | | |
15.20
|
%
| | | |
11.07
|
%
| | | |
11.10
|
%
| | | | | | | | |
Contacts:
California Bank of Commerce
Terry A. Peterson, 925-444-2910
President
and CEO
tpeterson@bankcbc.com
or
Mark
DeVincenzi, 925-444-2916
EVP Shareholder Relations & CMO
mdevincenzi@bankcbc.com
Source: California Bank of Commerce
© 2024 Canjex Publishing Ltd. All rights reserved.