Commercial Capital Bancorp, Inc. Announces Record Fourth Quarter Earnings of $0.36 Per Share on Net Income of $20.2 Million.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif. -- Commercial Capital Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CCBI CCBI Cleveland Community Building Initiative CCBI Central City Business Institute (Syracuse, NY) ): --Company Increases Cash Dividend 20% to $0.06 per Share --Announces Addition to the NASDAQ Financial 100 Index --EPS grows 89% from Fourth Quarter 2003 and 13% from Third Quarter 2004 --Net Income Increases 229% from Fourth Quarter 2003 and 12% from Third Quarter 2004 --Tangible Book Value per Share Grows 62% from December December: see month. 31, 2003 and 6% from September September: see month. 30, 2004 --$541 Million of Total Loan Originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and $496 Million of Core Loan Originations --Total Loan Origination Pipeline Expands 41% to a Record $497 Million, Core Loan Origination Pipeline Expands 50% to a Record $483 Million --Return on Average Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. Equity Increases to 31.55% --Return on Average Tangible Assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. Increases to 1.73% --Efficiency Ratio Declines to 28.13% Commercial Capital Bancorp, Inc. (the "Company"), (NASDAQ:CCBI), the holding company for Commercial Capital Bank (the "Bank"), announced today record net income of $20.2 million, or $0.36 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the fourth quarter of 2004, increases of 229% and 89%, respectively, from $6.2 million or $0.19 per diluted share, for the fourth quarter of 2003. Additionally, the Company announced today that it has increased its cash dividend 20% to $0.06 per share to be paid on March 4, 2005 to shareholders of record on February February: see month. 18, 2005 and that it has been added to the NASDAQ Financial 100 Index. The Company's net income for the year ended December 31, 2004 was a record $56.3 million, or $1.21 per diluted share, increases of 175% and 83%, respectively, from $20.4 million or $0.66 per diluted share, for the year ended December 31, 2003. The Company's return on average equity ("ROAE ROAE Return on Average Equity ") and return on average assets ("ROAA ROAA Return on Average Assets (business, banking, accounting) ROAA Rural Oregon Arts Association ROAA Royce Online Account Access (Royce Fund Services, Inc. ") for the fourth quarter of 2004 were 13.06% and 1.61%, respectively, compared to 24.83% and 1.56% for the fourth quarter of 2003, respectively. The Company's return on average tangible equity and return on average tangible assets for the fourth quarter of 2004 increased to 31.55% and 1.73%, respectively, compared to 28.59% and 1.57% for the fourth quarter of 2003, respectively. The Company's equity to assets and tangible equity to assets ratios at December 31, 2004 increased to 12.44% and 5.21%, respectively, from 12.26% and 4.94% at September 30, 2004, and 5.92% and 5.17% at December 31, 2003. The Company's ROAE and ROAA for the year ended December 31, 2004 were 14.25% and 1.55%, respectively, compared to 22.69% and 1.57% for the year ended December 31, 2003, respectively. Return on average tangible equity increased to 31.14% for the year ended December 31, 2004, compared to 26.53% for the year ended December 31, 2003. The Company's financial results for the fourth quarter and year ended December 31, 2004 include the effects of the acquisition of Hawthorne Hawthorne. 1 City (1990 pop. 71,349), Los Angeles co., S Calif., a suburb of Los Angeles; inc. 1922. Located in an oil- and gas-producing area, Hawthorne manufactures navigation systems, solar panels, electronic components, silicon instruments, and Financial Corporation ("Hawthorne"), which closed on June June: see month. 4, 2004. The financial data for periods prior to June 4, 2004 do not include the impact of the Hawthorne acquisition. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and H. Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. , Chairman and Chief Executive Officer, stated, "In early 2004, the Company embarked on the next phase of becoming a premier, niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the focused, California-based banking franchise. In June of 2004, the Company completed the acquisition of Hawthorne Financial Corporation. During the second half of 2004, the Company successfully completed the corporate and systems integration and achieved the projected cost savings significantly ahead of schedule. The Company also successfully repositioned the composition of both the loan and deposit portfolios, while driving its efficiency ratio back down to 28%, all while generating returns on tangible equity in excess of 30%. The Company enters 2005 poised for significant growth and profitability, with a record loan origination pipeline, growing capital ratios, total assets of over $5 billion, excellent asset quality, 21 banking offices, dividends being paid to shareholders and a market cap that has grown to $1.3 billion. Additionally, the Company is proud of the recognition of having just been added to the NASDAQ Financial 100 Index." Gordon continued, "The mission for 2005 is clear: continued focus and discipline while executing on our efficient, niche growth plan which is generating strong returns for our shareholders."
($ in 000's, Q4 Q3 Q4 Year Year
except per Ended Ended
share data)
2004 2004 2003 12/31/2004 12/31/2003
Net income $ 20,234 $ 18,004 $ 6,158 $ 56,262 $ 20,429
Basic EPS(a) 0.37 0.34 0.21 1.29 0.70
Diluted EPS(a) 0.36 0.32 0.19 1.21 0.66
Net interest
income 38,468 37,877 12,363 113,022 41,234
Net interest
margin 3.38% 3.49% 3.23% 3.40% 3.30%
Total revenues $ 67,083 $ 60,602 $ 20,859 $ 187,723 $ 75,343
ROAA 1.61% 1.50% 1.56% 1.55% 1.57%
ROAA - tangible 1.73 1.62 1.57 1.65 1.59
ROAE 13.06 12.02 24.83 14.25 22.69
ROAE - tangible 31.55 30.55 28.59 31.14 26.53
Efficiency ratio 28.13 30.59 25.82 28.09 28.06
Core loan
originations(b) $ 495,730 $544,953 $274,884 $1,689,702 $959,182
Some of the Company's fourth quarter 2004 highlights and achievements include: --The Company entered the fourth quarter of 2004 with a core loan origination pipeline of $322 million and total loan origination pipeline of $353 million. The Company's core loan originations were $495.7 million during the fourth quarter of 2004, a decrease of 9% and an increase of 80% from $545.0 million and $274.9 million for the third quarter of 2004 and fourth quarter of 2003, respectively. The Company's total loan originations were $540.8 million during the fourth quarter of 2004, a decrease of 7% and an increase of 78% from $583.2 million and $304.0 million for the third quarter of 2004 and fourth quarter of 2003, respectively. --The Company entered the first quarter of 2005 with a record core loan origination pipeline of $483 million at December 31, 2004, and a record total loan origination pipeline of $497 million, increases of 50% and 41%, respectively, from that which it entered the fourth quarter of 2004. The Company projects significant loan originations volume during the first quarter driven by strong volumes of adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. core loan originations tied to market sensitive indices, with the Company's loan origination pipeline rates floating with market interest rates. --The Company successfully remixed the composition of its loan portfolio during the quarter ended December 31, 2004, completing the sale of $166.3 million of lower coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer , intermediate duration single family hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). loans, and other lower coupon single family loans. These loans were replaced by the Company's core loan originations during the quarter resulting in multi-family and commercial real estate loans increasing to 71% of total loans, while single family loans were reduced to 21% of total loans. The Company's multi-family loans held for investment portfolio grew during the fourth quarter of 2004 at an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of 29% to $2.40 billion at December 31, 2004. At December 31, 2004, the weighted average months to reset or maturity on the Company's loans held for investment portfolio shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. to 12 months, compared to 13 months at September 30, 2004. --The Company's allowance for loan losses was 0.93% of net loans held for investment at December 31, 2004, compared to 0.94% at September 30, 2004, and 0.37% at December 31, 2003. The Company determined that a provision for loan losses was not required for the fourth quarter of 2004 based on the asset quality review completed during the quarter. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. totaled $6.4 million, or 0.13% of total assets, at December 31, 2004, compared to $5.1 million, or 0.10% of total assets, at September 30, 2004. At December 31, 2004, the allowance for loan losses totaled 572% of nonperforming assets. --The Company continued to successfully remix re·mix tr.v. re·mixed, re·mix·ing, re·mix·es To recombine (audio tracks or channels from a recording) to produce a new or modified audio recording: the composition of its deposits, with transaction account balances increasing to 55% of total deposits at December 31, 2004, compared to 52% at September 30, 2004 and 50% at June 30, 2004. Business deposits increased to 29% of total transaction deposits at December 31, 2004, compared to 22% at September 30, 2004 and 19% at June 30, 2004. --The Company's equity to assets and tangible equity to assets ratios increased to 12.44% and 5.21% at December 31, 2004, respectively, compared to 12.26% and 4.94% at September 30, 2004, respectively, and compared to 5.92% and 5.17% at December 31, 2003, respectively. The Company's tangible equity to tangible assets ratio increased to 5.62% at December 31, 2004, compared to 5.33% and 5.20% at September 30, 2004 and December 31, 2003, respectively. --The Company's book value per share increased to $11.47 at December 31, 2004, compared to $11.20 and $3.41 at September 30, 2004 and December 31, 2003, respectively. The Company's tangible book value per share increased 6% to $4.80 at December 31, 2004 from $4.51 at September 30, 2004, and 62% from $2.97 at December 31, 2003. --The Company's total revenues, defined as interest income plus noninterest income, increased 11% to $67.1 million for the fourth quarter of 2004, from $60.6 million for the third quarter of 2004, and 222% from $20.9 million for the fourth quarter of 2003. --The Company's net income increased 12% to $20.2 million for the fourth quarter of 2004, from $18.0 million for the third quarter of 2004, and 229% from $6.2 million for the fourth quarter of 2003. --The Company's noninterest income, which during the fourth quarter of 2004 was comprised primarily of loan related fees, mortgage banking fees and gains on the sale of loans, as well as retail banking fees and other fees, increased 85% and 367% to $6.7 million, compared to $3.6 million and $1.4 million for the third quarter of 2004 and fourth quarter of 2003, respectively. --The Company's general and administrative expenses to average assets was 1.01% for the fourth quarter of 2004, compared to 1.05% and 0.90% for the third quarter of 2004 and fourth quarter of 2003, respectively. The Company's efficiency ratio was 28.13% for the fourth quarter of 2004, compared to 30.59% and 25.82% for the third quarter of 2004 and fourth quarter of 2003, respectively. --In May 2004, the Company announced that its Board of Directors had authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 2.5% of the Company's proforma Proforma A financial projection based on assumptions. shares outstanding, giving effect to the Hawthorne acquisition, not to exceed $20 million in value. At December 31, 2004, the Company had repurchased a total of 831,700 shares at an average price of $19.12, of which 174,300 shares were purchased during the fourth quarter at an average price of $21.85. The Company's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization The right or permission to use a system resource; the process of granting access. See access control. remains in effect. --The Company was the 27th largest thrift thrift: see leadwort. in the country, and sixth largest in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. September 30, 2004 data from SNL SNL Saturday Night Live SNL Sandia National Laboratories SNL School for New Learning (Depaul University) SNL Springfield News-Leader (Missouri newspaper) SnL Sweet N Low SNL Standard Nomenclature List Financial. The Bank was the fastest growing savings institution in California for the 36-month period ended September 30, 2004, according to data available from the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). website www.fdic.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Additionally, the Company was the third largest originator Originator A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting of multi-family loans in California for the 12-month period ended September 30, 2004, according to information available from Dataquick Information Systems. NET INTEREST INCOME The Company's net interest income increased 211% and 174% to $38.5 million and $113.0 million for the fourth quarter and year ended December 31, 2004, respectively, from $12.4 million and $41.2 million for the fourth quarter and year ended December 31, 2003, respectively. The Company's net interest margin decreased 11 basis points to 3.38% for the fourth quarter of 2004, compared to 3.49% for the third quarter of 2004 and increased 15 basis points compared to 3.23% for the fourth quarter of 2003. The Company's net interest spread decreased 13 basis points to 3.26% for the fourth quarter of 2004, compared to 3.39% for the third quarter of 2004 and increased ten basis points compared to 3.16% for the fourth quarter of 2003. The Company's yield on interest-earning assets increased five basis points to 5.30% for the fourth quarter of 2004, compared to 5.25% for the third quarter of 2004. The Company's yield on total loans increased six basis points to 5.47% for the fourth quarter of 2004 compared to 5.41% for the third quarter of 2004. The Company's cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities increased 18 basis points to 2.04% for the fourth quarter of 2004, compared to 1.86%, for the third quarter of 2004. The Company's cost of interest-bearing deposits increased 14 basis points to 1.71% for the fourth quarter of 2004, compared to 1.57% for the third quarter of 2004. The Company's cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. , including the effect of noninterest-bearing deposits, increased 18 basis points to 2.00% for the fourth quarter of 2004, compared to 1.82% for the third quarter of 2004. NONINTEREST INCOME Noninterest income increased 367% and 65% to $6.7 million and $15.1 million for the fourth quarter and year ended December 31, 2004, respectively, from $1.4 million and $9.2 million for the fourth quarter and year ended December 31, 2003, respectively. Loan and retail banking fee income increased 388% and 384% to $2.1 million and $6.5 million for the fourth quarter and year ended December 31, 2004, respectively, from $438,000 and $1.4 million for the fourth quarter and year ended December 31, 2003, respectively. The increases in loan related fees compared to the year ago periods were driven by loan prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fees of $1.4 million and $4.7 million for the fourth quarter and year ended December 31, 2004, respectively, compared to $381,000 and $1.1 million for the fourth quarter and year ended December 31, 2003, respectively. The Company's noninterest income included gains on sales of loans and securities of $3.8 million and $6.2 million for the fourth quarter and year ended December 31, 2004, respectively, compared to $680,000 and $6.0 million for the fourth quarter and year ended December 31, 2003, respectively. The Company accelerated the remix of the composition of its loan portfolio by selling $166.3 million of single family residential loans, which resulted in the gain on sale of loans included in noninterest income during the fourth quarter of 2004. NONINTEREST EXPENSES The Company's efficiency ratio was 28.13% and 28.09% for the fourth quarter and year ended December 31, 2004, respectively, compared to 25.82% and 28.06% for the fourth quarter and year ended December 31, 2003, respectively. General and administrative expenses were 1.01% and 0.99% of total average assets for the fourth quarter and year ended December 31, 2004, respectively, compared to 0.90% and 1.09% for the fourth quarter and year ended December 31, 2003, respectively. The Company's general and administrative expenses totaled $12.7 million and $36.0 million for the fourth quarter and year ended December 31, 2004, respectively, compared to $3.6 million and $14.1 million for the fourth quarter and year ended December 31, 2003, respectively. The increases during the periods ended December 31, 2004 compared to the periods ended December 31, 2003 are primarily due to higher personnel and operational costs, including occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy , marketing and insurance costs related to the additional operations from the acquisition of Hawthorne, as well as the growth and maturation maturation /mat·u·ra·tion/ (mach-u-ra´shun) 1. the process of becoming mature. 2. attainment of emotional and intellectual maturity. 3. of the Company. The Company recorded $203,000 and $464,000 of amortization of the core deposit intangible for the fourth quarter and year ended December 31, 2004, respectively, as a result of the acquisition of Hawthorne. During the fourth quarter of 2004, the Company recorded a $416,000 reduction in its liability on unfunded commitments primarily reflecting the decline in the Company's unfunded construction loan commitments. INCOME TAXES The Company's effective tax rate was 37.26% and 37.80% for the fourth quarter and year ended December 31, 2004, respectively, compared to 39.49% and 39.33% for the fourth quarter and year ended December 31, 2003, respectively. The reduction of the Company's effective tax rate during the periods ended December 31, 2004 compared to the year ago periods reflects the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of low income housing and other tax credits, and the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of income property loans in enterprise zones that generate certain state tax benefits. BALANCE SHEET AND CAPITAL The Company had total consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: assets of $5.02 billion at December 31, 2004, an increase of 1% and 192% from $4.97 billion and $1.72 billion at September 30, 2004 and December 31, 2003, respectively. Total loans, which include loans held for investment, net of allowances, and loans held for sale totaled $3.91 billion, an increase of 1% and 268% from $3.88 billion and $1.06 billion at September 30, 2004 and December 31, 2003, respectively. At December 31, 2004, multi-family loans held for investment totaled $2.40 billion, representing 61% of total loans held for investment, an increase of 7% from $2.24 billion at September 30, 2004. At December 31, 2003, multi-family loans represented 89% of total loans held for investment. The Company anticipates that multi-family loans will increase as a percentage of total loans, as the Company continues to focus on income property lending, as a market leader in its primarily multi-family lending niche. At December 31, 2004, 57% of the Company's loans held for investment are tied to an index that adjusts each month or mature within one month, up from 52% at September 30, 2004. In addition, 70% of the Company's loans held for investment have interest rates scheduled to reset or mature within six months from December 31, 2004 and 71% reset or mature within one year from December 31, 2004, up from 66% and 68%, respectively, at September 30, 2004. The Company's total loan portfolio had a weighted average duration to reset or maturity of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 12 months at December 31, 2004, a decrease from 13 months at September 30, 2004. The Company's securities portfolio totaled $491.3 million at December 31, 2004, an increase of 1% and a decrease of 12% from $486.2 million and $560.7 million at September 30, 2004 and December 31, 2003, respectively. Mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. were 10% of total assets at December 31, 2004, well below industry peers, and below the Company's historic levels, which were 33% and 36% at December 31, 2003 and December 31, 2002, respectively. The Company continues to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. cash flows received from the securities portfolio into the Company's higher yielding, adjustable rate loans, positioning the Company to benefit from anticipated higher market interest rates. The Company's deposits totaled $2.26 billion at December 31, 2004, a decrease of 2% and an increase of 250% from $2.30 billion and $645.6 million at September 30, 2004 and December 31, 2003, respectively. Transaction account deposits totaled $1.23 billion at December 31, 2004, an increase of 4% and 217% from $1.19 billion and $388.0 million at September 30, 2004 and December 31, 2003, respectively. Of the Company's transaction account deposits at December 31, 2004, the majority was from Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Orange, Riverside Riverside. 1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , and Ventura Ventura (vĕnt  `rə), city (1990 pop. 92,575), seat of Ventura co., SW Calif., on the Pacific coast in a farm and oil region; inc. 1866. counties, with business deposits accounting for
$360.3 million or 29% of the total. The Company's time deposits
totaled $1.03 billion at December 31, 2004, compared to $1.11 billion
and $257.6 million at September 30, 2004 and December 31, 2003,
respectively. The decrease in the Company's total deposits,
primarily through a reduction in the balance of time deposits, reflects
the asset/liability decision by the Company to replace higher costing,
shorter duration time deposits with transaction account deposits. This
strategic decision resulted in transaction accounts equaling
approximately 55% of total deposits at December 31, 2004, up from 52% of
total deposits at September 30, 2004.Borrowings totaled $2.09 billion at December 31, 2004, an increase of 3% and 117% from $2.02 billion and $963.3 million at September 30, 2004 and December 31, 2003, respectively. FHLB FHLB Federal Home Loan Bank advances totaled $1.86 billion at December 31, 2004, an increase of 1% and 126% from $1.83 billion and $822.5 million at September 30, 2004 and December 31, 2003, respectively. FHLB borrowings with maturities of greater than one year and less than six years totaled $293.0 million, at December 31, 2004. At December 31, 2004, the Company's junior subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". issued to its unconsolidated trust subsidiaries totaled $135.1 million, compared to $135.2 million at September 30, 2004, and $52.5 million at December 31, 2003. The increase from December 31, 2003 reflects the additional issuances by the Company and the debt assumed through the acquisition of Hawthorne. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. totaled $625.2 million at December 31, 2004, an increase of 3% and 513% from $608.7 million and $102.0 million at September 30, 2004, and December 31, 2003, respectively. Tangible stockholders' equity totaled $261.9 million, an increase of 7% and 194% from $245.2 million and $89.0 million at September 30, 2004 and December 31, 2003, respectively. The Company's equity to assets and tangible equity to assets were 12.44% and 5.21% at December 31, 2004, respectively, compared to 12.26% and 4.94% at September 30, 2004, respectively, and compared to 5.92% and 5.17% at December 31, 2003, respectively. The Company's tangible equity to tangible assets ratio was 5.62% at December 31, 2004, compared to 5.33% and 5.20% at September 30, 2004 and December 31, 2003, respectively. Book value per share totaled $11.47, an increase of 2% and 236% from $11.20 and $3.41 at September 30, 2004, and December 31, 2003, respectively. Tangible book value per share totaled $4.80, an increase of 6% and 62% from $4.51 and $2.97 at September 30, 2004, and December 31, 2003, respectively. The capital ratios of Commercial Capital Bank continued to exceed federal regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for classification as a "well-capitalized" institution, the highest regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. standard. The Bank's core, tier one risk-based and total risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. are estimated to be 8.01%, 11.11% and 12.21% at December 31, 2004, respectively. LOAN ORIGINATIONS The Company's core loan originations were $495.7 million during the fourth quarter of 2004, a decrease of 9% and an increase of 80% from $545.0 million and $274.9 million, for the third quarter of 2004 and fourth quarter of 2003, respectively. The Company's total loan originations, which include loans that were funded through the Company's strategic alliance with Greystone Servicing Corporation, a Fannie Mae Fannie Mae: see Federal National Mortgage Association. DUS DUS Driving Under Suspension (criminal charge) DUS Dwelling Unit (real estate) DUS Dynamic Underground Stripping DUS Dusseldorf, Germany - Dusseldorf (Airport Code) lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. , and the Company's other broker and conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the channels, totaled $540.8 million during the fourth quarter of 2004, a decrease of 7% and an increase of 78% from $583.2 million and $304.0 million for the third quarter of 2004 and fourth quarter of 2003, respectively. The Company's core loan originations increased 76% to a record $1.69 billion during the year ended December 31, 2004, from $959.2 million for the year ended December 31, 2003. The Company's total loan originations increased 67% to a record $1.85 billion during the year ended December 31, 2004, from $1.11 billion for the year ended December 31, 2003. The Company's core loan originations for the fourth quarter of 2004 consisted of $315.6 million of multi-family residential Multi-family residential is a classification of housing where multiple separate housing units are contained within one building. The most common form is an apartment building. Many intentional communities incorporate multi-family residences, such as in cohousing projects. real estate loans, $23.5 million of commercial real estate loans, $110.1 million of single family residential real estate loans, $44.2 million of construction and land loans, and $2.3 million of business and other loans. During the fourth quarter of 2004, purchase transactions represented 53% of the Company's core multi-family originations, 55% of core single family residential originations and 64% of the core commercial real estate loan originations, while refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. transactions were 47%, 45% and 36%, respectively. The Company's core multi-family originations during the fourth quarter of 2004 had at origination an average loan size of $1.8 million, loan-to-value ("LTV LTV See: Loan-to-value ratio ") of 67.5% and debt coverage ratio ("DCR DCR Department of Conservation and Recreation DCR Decrease DCR Digital Cable Ready (television) DCR Dark Crisis (Yu-Gi-Oh! cards) DCR Debt Coverage Ratio DCR Dacryocystorhinostomy ") of 1.23 to 1. The Company's core commercial real estate originations during the fourth quarter of 2004 had at origination an average loan size of $2.1 million, LTV of 62.2% and DCR of 1.32 to 1. The Company's core single family loan originations during the fourth quarter of 2004 had at origination an average loan size of $1.0 million, and LTV of 63.5%. Of the Company's $495.7 million of core loan originations during the fourth quarter of 2004, 98% were adjustable rate loans, of which 81% reprice within one year. The Company's focus on adjustable rate lending continues to create a greater degree of asset sensitivity, as reflected in the previously stated portfolio weighted average duration to reset or maturity of 12 months at December 31, 2004. The value of loans in the Company's total loan pipeline increased 41% and 132% to a record $497 million at December 31, 2004, compared to $353 million and $214 million at September 30, 2004 and December 31, 2003, respectively. The value of loans in the Company's core loan pipeline increased 50% and 193% to a record $483 million at December 31, 2004, compared to $322 million and $165 million at September 30, 2004 and December 31, 2003, respectively. The Company projects significant interest-earning asset growth during the first quarter of 2005 driven by strong volumes of adjustable rate, core loan originations. PORTFOLIO ASSET QUALITY The Company's asset quality review, performed during the fourth quarter of 2004, was based on its asset classification process, which the Company applied to the acquired Hawthorne loan portfolio. The Company used this current information, along with other qualitative qualitative /qual·i·ta·tive/ (kwahl´i-ta?tiv) pertaining to quality. Cf. quantitative. qualitative pertaining to observations of a categorical nature, e.g. breed, sex. and quantitative quantitative /quan·ti·ta·tive/ (kwahn´ti-ta?tiv) 1. denoting or expressing a quantity. 2. relating to the proportionate quantities or to the amount of the constituents of a compound. factors, updated industry and peer comparison data to calculate the allowance for loan losses. This review indicated that a provision for loan losses for the fourth quarter of 2004 was not required and that the allowance for loan losses is adequate to cover losses inherent in the loan portfolio. Future additions to the allowance for loan losses may be required as a result of the factors described below. Management establishes the allowance for loan losses commencing with the credit quality and historical performance of the Company's multi-family, commercial real estate, single family residential, construction, and land loan portfolios, which accounts for virtually all of the loan portfolio. The Company's overall asset quality remains sound, as supported by its internal risk rating process of a more seasoned multi-family, commercial real estate and single family residential loan portfolio. The allowance for loan losses is derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. by analyzing the historical loss experience and asset quality within each loan portfolio segment, along with assessing qualitative environmental factors, and correlating it with the delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. and classification status for each portfolio segment. Management utilizes a loan grading system with five classification categories, including assets classified as Pass, based upon credit risk characteristics and categorizes each loan asset by risk grade allowing for a more consistent review of similar loan assets. Management has also evaluated the loss exposure of classified loans, which are reviewed individually based on the evaluation of the cash flow, collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although , other sources of repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan , guarantors and any other relevant factors to determine the inherent loss potential in the credit. Management considers the following qualitative environmental factors in determining the allocated loss factors when analyzing the allowance for loan losses: the levels of and trends in past due, non-accrual and impaired See assistive technology. loans; levels of and trends in charge-offs and recoveries; the trend in volume and terms of loans; the effects of changes in credit concentrations; the effects of changes in risk selection and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards, and other changes in lending policies, procedures and practices; the experience, ability and depth of management and other relevant staff; national and local economic trends and conditions; and industry conditions. The overall adequacy of the allowance for loan losses is reviewed by the Bank's Internal Asset Review Committee on a quarterly basis and submitted to the Board of Directors for approval. The Internal Asset Review Committee's responsibilities consist of risk management, as well as problem loan management, which include ensuring proper risk grading of all loans and analysis of specific allocations for all classified loans. At December 31, 2004, the Company had total assets of $5.02 billion, and total deposits of $2.26 billion. The Bank operates banking offices located in Westlake Westlake, city (1990 pop. 27,018), Cuyahoga co., NE Ohio, a suburb of Cleveland; inc. as a city 1956. A growing city, its various manufactures include ink and plastics. Village (Ventura County), Tarzana, Malibu, Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Baldwin Baldwin, cities, United States Baldwin. 1 Uninc. city (1990 pop. 22,719), Nassau co., SE N.Y., on the south shore of Long Island, on Baldwin Bay; settled 1640s. A fishing center and summer resort, it has varied manufactures. Hills, Westchester Westchester is the name of some places in the United States of America:
n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. Santa Margarita Santa Margarita ("Saint Margaret") may refer to:
1 City (1990 pop. 148,134), Maricopa co., S central Ariz., adjacent to Phoenix; inc. 1910. It is located in a rich agricultural region irrigated by the Salt River project. Glendale has become one of the fastest-growing U.S. , West Los Angeles
San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , with plans to open banking offices in San Mateo, California San Mateo is a city in San Mateo County, California, in the San Francisco Bay Area. It is one of the larger suburbs on the San Francisco Peninsula, located between Burlingame to the north, Foster City to the East, and Belmont to the south. in early 2005, and Newport Newport, town, England Newport, town (1991 pop. 19,758), Isle of Wight, S England. It is also a port and the commercial center of the island, with agricultural markets and light industries (plastics, soft drinks, and woodworking). In the 17th cent. Coast, California in mid- mid- pref. Middle: midbrain. 2005. The Company was the 3rd largest multi-family lender in California during the 12 months ended September 30, 2004 (source: Dataquick Information Systems) and the Bank was the fastest growing savings institution in California, based on percentage growth in total assets over the 36 months ended September 30, 2004 (source: www.fdic.gov). CONFERENCE CALL AND WEBCAST INFORMATION Analysts and investors may listen to a discussion of the fourth quarter of 2004 performance and participate in the question/answer session either by dialing the phone number listed below, or through viewing a live video webcast of the discussion accessed through a link on the home page of the Company's website at www.commercialcapital.com. The multimedia webcast enables participants to listen to the discussion and simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics view the video broadcast, tables, charts, an outline of the performance highlights, and submit questions for live response from the hosts. Windows Media player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. is required for viewing the video webcast. Interested parties can download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the slide presentation from the Company's website prior to the start of the call. It is recommended that participants dial into the call, or log in to the webcast, approximately 5 to 10 minutes prior to the event. Conference Call Date: Monday, January 24, 2005 Time: 7:00 a.m. PST (10:00 a.m. EST) Phone Number (800) 299-9086 International Dial-in Number (617) 786-2903 Access Code: 20745033 Webcast Date: Monday, January 24, 2005 Time: 7:00 a.m. PST (10:00 a.m. EST) Webcast URL: www.commercialcapital.com Windows Media player is required Replay Information: for those who are unable to participate in the call or webcast live, an archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. of the webcast will be available on the Company's website at www.commercialcapital.com beginning approximately 2 hours following the end of the call. To listen to the call replay dial (888) 286-8010, or for international callers dial (617) 801-6888, the access code for either replay number is 89916471. The webcast archive and call replay will be available until March 6, 2005. This press release and the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. webcast may include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. related to the Company's plans, beliefs and goals, which involve certain risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: competitive pressure in the banking industry; changes in the interest rate environment; the health of the economy, either nationally or regionally; the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of credit quality, which would cause an increase in the provision for possible loan and lease losses; changes in the regulatory environment; changes in business conditions, particularly in California real estate; volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of rate sensitive deposits; asset/liability matching risks and liquidity risks; and changes in the securities markets. The Company undertakes no obligation to revise or publicly release any revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. to these forward-looking statements. (a) Per share data has been adjusted to reflect the 4-for-3 stock split completed on February 20, 2004. (b) The Company defines core loan originations to exclude those loan originations funded through its strategic alliance with Greystone Servicing Corporation, a Fannie Mae DUS lender, and the Company's other broker and conduit channels.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, except per share data)
Dec. 31, Dec. 31,
2004 2003
----------------------------------------------------------------------
ASSETS
------------------------------------------------
Cash and Bank Accounts $16,961 $4,066
Fed Funds - -
Securities
MBS - Available For Sale 491,265 560,629
Other Investments - Available For Sale - 100
----------------------
Total Securities 491,265 560,729
FHLB Stock 96,046 41,517
Loans Held for Investment
Single Family 841,818 3,193
Multi-family 2,396,788 935,063
Commercial Real Estate 420,015 108,560
Construction Loans 225,058 -
Land 56,308 -
----------------------
Total Real Estate Loans 3,939,987 1,046,816
Business and Other Loans 16,360 5,711
----------------------
Total Loans 3,956,347 1,052,527
Net Deferred Fees, Premiums and Discounts (5,708) (953)
Allowance for Loan Losses (36,835) (3,942)
----------------------
Total Loans Held for Investment, Net 3,913,804 1,047,632
Loans Held for Sale 976 14,893
Fixed Assets - Net 10,318 1,534
Foreclosed Assets - -
Accrued Interest Receivable 17,120 6,827
Goodwill 357,367 13,035
Core Deposit Intangible 5,902 -
Bank-Owned Life Insurance 46,277 17,925
Other Assets 67,888 14,981
----------------------------------------------------------------------
TOTAL ASSETS $5,023,924 $1,723,139
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------------
Deposits
Demand Deposits - Noninterest-Bearing $97,931 $12,125
Demand Deposits - Interest-Bearing 78,003 942
Money Market Checking 473,344 372,273
Money Market Savings 245,306 -
Savings 336,474 2,700
----------------------
Total Transaction Deposits 1,231,058 388,040
Retail Time Deposits 932,562 189,566
Broker Time Deposits 93,161 67,990
----------------------
Total Time Deposits 1,025,723 257,556
----------------------
Total Deposits 2,256,781 645,596
Borrowings
FHLB Advances 1,856,349 822,519
Repurchase Agreements / Fed Funds 101,000 74,475
Junior Subordinated Debentures (a) 135,079 -
Trust Preferred Securities (a) - 52,500
Warehouse Line of Credit - 13,794
----------------------
Total Borrowings 2,092,428 963,288
Other Liabilities 49,499 12,213
----------------------------------------------------------------------
TOTAL LIABILITIES 4,398,708 1,621,097
STOCKHOLDERS' EQUITY 625,216 102,042
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,023,924 $1,723,139
======================================================================
Operating Data
Performance Ratios and Other Data: Dec. 31, Dec. 31,
2004 2003
----------------------
Equity to assets at end of period 12.44% 5.92%
Tangible equity to assets at end of period 5.21 5.17
Tangible equity to tangible assets at end of
period 5.62 5.20
Nonperforming assets $6,443 $129
Nonperforming assets to total assets 0.13% 0.01%
Allowance for loan losses to loans held for
investment at end of period 0.93 0.37
Allowance for loan losses to nonaccrual loans 572 3,056
Per Share Data
Common shares outstanding at end of period (b) 54,519,579 29,956,372
Book value per share (b) $11.47 $3.41
Tangible book value per share (b) 4.80 2.97
(a) The Company adopted FIN46R on January 1, 2004, which
deconsolidated the trust subsidiaries and changes the
classification of the related debt from trust preferred securities
to junior subordinated debentures.
(b) Per share data has been adjusted to reflect 4-for-3 stock split on
February 20, 2004.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, except per share data) THREE MONTHS ENDED
Dec. 31, Dec. 31,
2004 2003
----------------------------------------------------------------------
Interest Income
Loans $54,221 $13,593
Securities 5,285 5,435
FHLB Stock 860 382
Fed Funds and Other 27 15
----------------------
Total Interest Income 60,393 19,425
Interest Expense
Deposits 9,174 2,880
FHLB Advances 10,717 3,362
Repurchase Agreements / Fed Funds 264 179
Junior Subordinated Debentures 1,770 -
Trust Preferred Securities - 534
Warehouse Line of Credit - 107
----------------------
Total Interest Expense 21,925 7,062
----------------------
Net Interest Income 38,468 12,363
Provision for Loan Losses - -
----------------------
Net Interest Income after Provision for Loan
Losses 38,468 12,363
Noninterest Income
Gain on Sale of Loans 3,809 424
Mortgage Banking Fees 122 136
Loan Related Fees 1,591 404
Retail Banking Fees 546 34
Other Income 622 180
Gain on Sale of Securities - 256
----------------------
Total Noninterest Income 6,690 1,434
Noninterest Expenses
Compensation and Benefits 6,120 2,008
Severance - -
Non-Cash Stock Compensation 29 -
Occupancy and Equipment 2,096 334
Merger-Related 282 -
Other 4,178 1,220
----------------------
Total G&A Expenses 12,705 3,562
Early Extinguishment of Debt - 58
Amortization of Core Deposit Intangible 203 -
----------------------
Total Noninterest Expenses 12,908 3,620
----------------------
Income Before Taxes 32,250 10,177
Income Tax Expense 12,016 4,019
----------------------
Net Income $20,234 $6,158
======================
Operating Data THREE MONTHS ENDED
Performance Ratios and Other Data: Dec. 31, Dec. 31,
2004 2003
----------------------
Earnings per share - Basic (a) $0.37 $0.21
Earnings per share - Diluted (a) 0.36 0.19
Weighted average shares outstanding -- 54,399,694 29,917,584
Basic (a)
Weighted average shares outstanding --
Diluted (a) 56,947,525 32,007,081
Return on average assets 1.61% 1.56%
Return on average tangible assets 1.73 1.57
Return on average stockholders' equity 13.06 24.83
Return on average tangible stockholders' equity 31.55 28.59
Interest rate spread 3.26 3.16
Net interest margin 3.38 3.23
Efficiency ratio 28.13 25.82
G&A to average assets 1.01 0.90
Effective tax rate 37.26 39.49
Total loan originations $540,783 $304,039
Core loan originations (b) 495,730 274,884
Broker/conduit originations 45,053 29,155
Core loan originations retained 494,642 257,289
Percent of core loan originations retained 100% 94%
Net Charge-offs (Recoveries) $11 $(4)
(a) Per share data has been adjusted to reflect the 4-for-3 stock
split on February 20, 2004.
(b) The Company defines core loan originations to exclude those loan
originations funded through its strategic alliance with Greystone
Servicing Corporation, a Fannie Mae DUS lender, and the Company's
other broker and conduit channels.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, except per share data) YEAR ENDED
Dec. 31, Dec. 31,
2004 2003
----------------------------------------------------------------------
Interest Income
Loans $146,685 $43,878
Securities 23,058 21,005
FHLB Stock 2,811 1,240
Fed Funds and Other 82 51
----------------------
Total Interest Income 172,636 66,174
Interest Expense
Deposits 26,137 10,099
FHLB Advances 27,731 10,975
Repurchase Agreements / Fed Funds 653 1,108
Junior Subordinated Debentures 5,005 -
Trust Preferred Securities - 1,876
Warehouse Line of Credit 88 882
----------------------
Total Interest Expense 59,614 24,940
----------------------
Net Interest Income 113,022 41,234
Provision for Loan Losses - 1,286
----------------------
Net Interest Income after Provision for Loan
Losses 113,022 39,948
Noninterest Income
Gain on Sale of Loans 4,022 2,168
Mortgage Banking Fees 566 740
Loan Related Fees 5,194 1,265
Retail Banking Fees 1,347 86
Other Income 1,806 1,095
Gain on Sale of Securities 2,152 3,815
----------------------
Total Noninterest Income 15,087 9,169
Noninterest Expenses
Compensation and Benefits 17,930 7,658
Severance - 671
Non-Cash Stock Compensation 117 353
Occupancy and Equipment 5,301 1,178
Merger-Related 1,196 -
Other 11,440 4,285
----------------------
Total G&A Expenses 35,984 14,145
Early Extinguishment of Debt 1,204 1,301
Amortization of Core Deposit Intangible 464 -
----------------------
Total Noninterest Expenses 37,652 15,446
----------------------
Income Before Taxes 90,457 33,671
Income Tax Expense 34,195 13,242
----------------------
Net Income $56,262 $20,429
======================
Operating Data YEAR ENDED
Performance Ratios and Other Data: Dec. 31, Dec. 31,
2004 2003
----------------------
Earnings per share - Basic (a) $1.29 $0.70
Earnings per share - Diluted (a) 1.21 0.66
Weighted average shares outstanding -- 43,749,774 29,329,289
Basic (a)
Weighted average shares outstanding --
Diluted (a) 46,351,889 31,111,208
Return on average assets 1.55% 1.57%
Return on average tangible assets 1.65 1.59
Return on average stockholders' equity 14.25 22.69
Return on average tangible stockholders' equity 31.14 26.53
Interest rate spread 3.29 3.21
Net interest margin 3.40 3.30
Efficiency ratio 28.09 28.06
G&A to average assets 0.99 1.09
Effective tax rate 37.80 39.33
Total loan originations $1,850,029 $1,109,502
Core loan originations (b) 1,689,702 959,182
Broker/conduit originations 160,327 150,320
Core loan originations retained 1,685,892 768,009
Percent of core loan originations retained 100% 80%
Net Charge-offs (Recoveries) $(8) $60
(a) Per share data has been adjusted to reflect the 4-for-3 stock
split on February 20, 2004.
(b) The Company defines core loan originations to exclude those loan
originations funded through its strategic alliance with Greystone
Servicing Corporation, a Fannie Mae DUS lender, and the Company's
other broker and conduit channels.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, except per share data)
Dec. 31, Sept. 30, June 30,
2004 2004 2004
----------------------------------------------------------------------
ASSETS
-------------------------------------
Cash and Bank Accounts $16,961 $20,445 $18,379
Fed Funds - - -
Securities
MBS - Available For Sale 491,265 486,120 499,746
Other Investments - Available
For Sale - 100 100
---------------------------------
Total Securities 491,265 486,220 499,846
FHLB Stock 96,046 86,147 85,543
Loans Held for Investment
Single Family 841,818 957,825 924,238
Multi-family 2,396,788 2,235,427 2,065,938
Commercial Real Estate 420,015 435,075 427,898
Construction Loans 225,058 213,656 216,926
Land 56,308 55,786 51,637
---------------------------------
Total Real Estate Loans 3,939,987 3,897,769 3,686,637
Business and Other Loans 16,360 13,399 12,926
---------------------------------
Total Loans 3,956,347 3,911,168 3,699,563
Net Deferred Fees, Premiums
and Discounts (5,708) (11,740) (14,801)
Allowance for Loan Losses (36,835) (36,846) (36,831)
---------------------------------
Total Loans Held for
Investment, Net 3,913,804 3,862,582 3,647,931
Loans Held for Sale 976 17,620 983
Fixed Assets - Net 10,318 9,989 8,441
Foreclosed Assets - - -
Accrued Interest Receivable 17,120 16,819 16,897
Goodwill 357,367 357,367 357,367
Core Deposit Intangible 5,902 6,105 6,308
Bank-Owned Life Insurance 46,277 46,270 45,843
Other Assets 67,888 57,212 56,312
----------------------------------------------------------------------
TOTAL ASSETS $5,023,924 $4,966,776 $4,743,850
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------------
Deposits
Demand Deposits - Noninterest-
Bearing $97,931 $92,950 $92,627
Demand Deposits - Interest-
Bearing 78,003 80,267 88,922
Money Market Checking 473,344 419,760 450,317
Money Market Savings 245,306 298,165 386,836
Savings 336,474 293,905 198,063
---------------------------------
Total Transaction Deposits 1,231,058 1,185,047 1,216,765
Retail Time Deposits 932,562 1,040,634 1,154,211
Broker Time Deposits 93,161 72,961 72,961
---------------------------------
Total Time Deposits 1,025,723 1,113,595 1,227,172
---------------------------------
Total Deposits 2,256,781 2,298,642 2,443,937
Borrowings
FHLB Advances 1,856,349 1,831,798 1,550,770
Repurchase Agreements / Fed Funds 101,000 57,000 -
Junior Subordinated Debentures
(a) 135,079 135,225 135,370
Trust Preferred Securities (a) - - -
Warehouse Line of Credit - - -
---------------------------------
Total Borrowings 2,092,428 2,024,023 1,686,140
Other Liabilities 49,499 35,403 30,952
----------------------------------------------------------------------
TOTAL LIABILITIES 4,398,708 4,358,068 4,161,029
STOCKHOLDERS' EQUITY 625,216 608,708 582,821
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $5,023,924 $4,966,776 $4,743,850
======================================================================
Operating Data
Performance Ratios and Other Data: Dec. 31, Sept. 30, June 30,
2004 2004 2004
---------------------------------
Equity to assets at end of period 12.44% 12.26% 12.29%
Tangible equity to assets at end of
period 5.21 4.94 4.62
Tangible equity to tangible assets at
end of period 5.62 5.33 5.00
Nonperforming assets $6,443 $5,095 $5,255
Nonperforming assets to total assets 0.13% 0.10% 0.11%
Allowance for loan losses to loans
held for investment at end of period 0.93 0.94 1.00
Allowance for loan losses to
nonaccrual loans 572 723 701
Per Share Data
Common shares outstanding at end of
period (b) 54,519,579 54,361,762 53,126,308
Book value per share (b) $11.47 $11.20 $10.97
Tangible book value per share (b) 4.80 4.51 4.13
Mar. 31, Dec. 31,
2004 2003
----------------------------------------------------------------------
ASSETS
------------------------------------------------
Cash and Bank Accounts $7,897 $4,066
Fed Funds 64,000 -
Securities
MBS - Available For Sale 506,682 560,629
Other Investments - Available For Sale 100 100
----------------------
Total Securities 506,782 560,729
FHLB Stock 48,475 41,517
Loans Held for Investment
Single Family 2,882 3,193
Multi-family 1,045,651 935,063
Commercial Real Estate 146,329 108,560
Construction Loans - -
Land - -
----------------------
Total Real Estate Loans 1,194,862 1,046,816
Business and Other Loans 7,094 5,711
----------------------
Total Loans 1,201,956 1,052,527
Net Deferred Fees, Premiums and Discounts (1,087) (953)
Allowance for Loan Losses (3,944) (3,942)
----------------------
Total Loans Held for Investment, Net 1,196,925 1,047,632
Loans Held for Sale 3,079 14,893
Fixed Assets - Net 1,784 1,534
Foreclosed Assets - -
Accrued Interest Receivable 7,626 6,827
Goodwill 13,035 13,035
Core Deposit Intangible - -
Bank-Owned Life Insurance 18,130 17,925
Other Assets 91,923 14,981
----------------------------------------------------------------------
TOTAL ASSETS $1,959,656 $1,723,139
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------------------
Deposits
Demand Deposits - Noninterest-Bearing $35,959 $12,125
Demand Deposits - Interest-Bearing 1,084 942
Money Market Checking 441,595 372,273
Money Market Savings - -
Savings 3,105 2,700
----------------------
Total Transaction Deposits 481,743 388,040
Retail Time Deposits 186,597 189,566
Broker Time Deposits 67,960 67,990
----------------------
Total Time Deposits 254,557 257,556
----------------------
Total Deposits 736,300 645,596
Borrowings
FHLB Advances 970,477 822,519
Repurchase Agreements / Fed Funds 58,502 74,475
Junior Subordinated Debentures (a) 64,435 -
Trust Preferred Securities (a) - 52,500
Warehouse Line of Credit 2,100 13,794
----------------------
Total Borrowings 1,095,514 963,288
Other Liabilities 14,082 12,213
----------------------------------------------------------------------
TOTAL LIABILITIES 1,845,896 1,621,097
STOCKHOLDERS' EQUITY 113,760 102,042
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,959,656 $1,723,139
======================================================================
Operating Data
Performance Ratios and Other Data: Mar. 31, Dec. 31,
2004 2003
----------------------
Equity to assets at end of period 5.81% 5.92%
Tangible equity to assets at end of period 5.14 5.17
Tangible equity to tangible assets at end of
period 5.17 5.20
Nonperforming assets $75 $129
Nonperforming assets to total assets 0.00% 0.01%
Allowance for loan losses to loans held for
investment at end of period 0.33 0.37
Allowance for loan losses to nonaccrual loans 5,259 3,056
Per Share Data
Common shares outstanding at end of period (b) 30,100,472 29,956,372
Book value per share (b) $3.78 $3.41
Tangible book value per share (b) 3.35 2.97
(a) The Company adopted FIN46R on January 1, 2004, which
deconsolidated the trust subsidiaries and changes the
classification of the related debt from trust preferred securities
to junior subordinated debentures.
(b) Per share data has been adjusted to reflect the 4-for-3 stock
split on February 20, 2004.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, except per share THREE MONTHS ENDED
data)
Dec. 31, Sept. 30, June 30,
2004 2004 2004
----------------------------------------------------------------------
Interest Income
Loans $54,221 $50,777 $26,647
Securities 5,285 5,301 6,301
FHLB Stock 860 891 662
Fed Funds and Other 27 18 16
---------------------------------
Total Interest Income 60,393 56,987 33,626
Interest Expense
Deposits 9,174 9,060 4,815
FHLB Advances 10,717 8,345 4,774
Repurchase Agreements / Fed Funds 264 94 139
Junior Subordinated Debentures 1,770 1,611 986
Trust Preferred Securities - - -
Warehouse Line of Credit - - 37
---------------------------------
Total Interest Expense 21,925 19,110 10,751
---------------------------------
Net Interest Income 38,468 37,877 22,875
Provision for Loan Losses - - -
---------------------------------
Net Interest Income after Provision
for Loan Losses 38,468 37,877 22,875
Noninterest Income
Gain on Sale of Loans 3,809 72 4
Mortgage Banking Fees 122 137 194
Loan Related Fees 1,591 2,217 977
Retail Banking Fees 546 588 186
Other Income 622 601 345
Gain on Sale of Securities - - 1,259
---------------------------------
Total Noninterest Income 6,690 3,615 2,965
Noninterest Expenses
Compensation and Benefits 6,120 6,148 3,452
Severance - - -
Non-Cash Stock Compensation 29 29 29
Occupancy and Equipment 2,096 2,131 713
Merger-Related 282 494 420
Other 4,178 3,892 1,933
---------------------------------
Total G&A Expenses 12,705 12,694 6,547
Early Extinguishment of Debt - - 1,204
Amortization of Core Deposit
Intangible 203 203 58
---------------------------------
Total Noninterest Expenses 12,908 12,897 7,809
---------------------------------
Income Before Taxes 32,250 28,595 18,031
Income Tax Expense 12,016 10,591 7,108
---------------------------------
Net Income $20,234 $18,004 $10,923
=================================
Operating Data THREE MONTHS ENDED
Performance Ratios and Other Data: Dec. 31, Sept. 30, June 30,
2004 2004 2004
---------------------------------
Earnings per share - Basic (a) $0.37 $0.34 $0.30
Earnings per share - Diluted (a) 0.36 0.32 0.28
Weighted average shares outstanding
-- Basic (a) 54,399,694 53,625,568 36,729,282
Weighted average shares outstanding
-- Diluted (a) 56,947,525 56,824,595 39,194,351
Return on average assets 1.61% 1.50% 1.57%
Return on average tangible assets 1.73 1.62 1.63
Return on average stockholders'
equity 13.06 12.02 17.66
Return on average tangible
stockholders' equity 31.55 30.55 32.58
Interest rate spread 3.26 3.39 3.41
Net interest margin 3.38 3.49 3.51
Efficiency ratio 28.13 30.59 25.34
G&A to average assets 1.01 1.05 0.94
Effective tax rate 37.26 37.04 39.42
Total loan originations $540,783 $583,184 $466,690
Core loan originations (b) 495,730 544,953 418,916
Broker/conduit originations 45,053 38,231 47,774
Core loan originations retained 494,642 542,434 420,988
Percent of core loan originations
retained 100% 100% 100%
Net Charge-offs (Recoveries) $11 $(15) $(2)
Mar. 31, Dec. 31,
2004 2003
----------------------------------------------------------------------
Interest Income
Loans $15,041 $13,593
Securities 6,170 5,435
FHLB Stock 399 382
Fed Funds and Other 20 15
----------------------
Total Interest Income 21,630 19,425
Interest Expense
Deposits 3,088 2,880
FHLB Advances 3,895 3,362
Repurchase Agreements / Fed Funds 156 179
Junior Subordinated Debentures 638 -
Trust Preferred Securities - 534
Warehouse Line of Credit 51 107
----------------------
Total Interest Expense 7,828 7,062
----------------------
Net Interest Income 13,802 12,363
Provision for Loan Losses - -
----------------------
Net Interest Income after Provision for Loan
Losses 13,802 12,363
Noninterest Income
Gain on Sale of Loans 138 424
Mortgage Banking Fees 112 136
Loan Related Fees 410 404
Retail Banking Fees 27 34
Other Income 238 180
Gain on Sale of Securities 893 256
----------------------
Total Noninterest Income 1,818 1,434
Noninterest Expenses
Compensation and Benefits 2,210 2,008
Severance - -
Non-Cash Stock Compensation 29 -
Occupancy and Equipment 361 334
Merger-Related - -
Other 1,439 1,220
----------------------
Total G&A Expenses 4,039 3,562
Early Extinguishment of Debt - 58
Amortization of Core Deposit Intangible - -
----------------------
Total Noninterest Expenses 4,039 3,620
----------------------
Income Before Taxes 11,581 10,177
Income Tax Expense 4,480 4,019
----------------------
Net Income $7,101 $6,158
======================
Operating Data
Performance Ratios and Other Data: Mar. 31, Dec. 31,
2004 2003
----------------------
Earnings per share - Basic (a) $0.24 $0.21
Earnings per share - Diluted (a) 0.22 0.19
Weighted average shares outstanding -- 30,018,996 29,917,584
Basic (a)
Weighted average shares outstanding --
Diluted (a) 32,215,530 32,007,081
Return on average assets 1.56% 1.56%
Return on average tangible assets 1.57 1.57
Return on average stockholders' equity 26.30 24.83
Return on average tangible stockholders' equity 29.91 28.59
Interest rate spread 3.03 3.16
Net interest margin 3.14 3.23
Efficiency ratio 25.86 25.82
G&A to average assets 0.89 0.90
Effective tax rate 38.68 39.49
Total loan originations $259,372 $304,039
Core loan originations (b) 230,103 274,884
Broker/conduit originations 29,269 29,155
Core loan originations retained 227,828 257,289
Percent of core loan originations retained 99% 94%
Net Charge-offs (Recoveries) $(2) $(4)
(a) Per share data has been adjusted to reflect the 4-for- 3 stock
split on February 20, 2004.
(b) The Company defines core loan originations to exclude those loan
originations funded through its strategic alliance with Greystone
Servicing Corporation, a Fannie Mae DUS lender, and the Company's
other broker and conduit channels.
COMMERCIAL CAPITAL BANCORP, INC.
Average Balances, Net Interest Income, Yields Earned and Rates Paid
(Dollars in Thousands)
THREE MONTHS ENDED DEC. 31,
------------------------------
2004
-----------------------------
Average Interest Average
Balance Yield/Cost
------------------------------
Interest-Earning Assets:
Total Loans (a) $3,965,200 $54,221 5.47%
Securities (b) 492,297 5,285 4.29
FHLB Stock 92,491 860 3.72
Cash and Cash Equivalents (c) 4,880 27 2.21
-------------------
Total Interest-Earning Assets 4,554,868 60,393 5.30
Noninterest-Earning Assets 475,741
-----------
Total Assets $5,030,609
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts (d) $1,084,645 4,534 1.66
Certificates of Deposits 1,049,900 4,640 1.76
-------------------
Total Deposits 2,134,545 9,174 1.71
FHLB Advances 1,945,610 10,717 2.19
Repurchase Agreements / Fed Funds 52,248 264 2.01
Trust Preferred Securities / Junior
Subordinated Debentures 135,175 1,770 5.21
Warehouse Line of Credit - - -
-------------------
Total Interest-Bearing Liabilities 4,267,578 21,925 2.04
--------
Noninterest-Bearing Deposits 98,828
Other Noninterest-Bearing Liabilities 44,302
-----------
Total Liabilities 4,410,708
Stockholders' Equity 619,901
-----------
Total Liabilities and Stockholders'
Equity $5,030,609
===========
Net Interest-Earning Assets $287,290
===========
Net Interest Income/Interest Rate Spread $38,468 3.26%
==================
Net Interest Margin 3.38%
==========
2003
------------------------------
Average Interest Average
Balance Yield/Cost
------------------------------
Interest-Earning Assets:
Total Loans (a) $981,061 $13,593 5.54%
Securities (b) 508,182 5,435 4.28
FHLB Stock 37,592 382 4.06
Cash and Cash Equivalents (c) 6,032 15 0.99
-------------------
Total Interest-Earning Assets 1,532,867 19,425 5.07
Noninterest-Earning Assets 47,125
-----------
Total Assets $1,579,992
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts (d) $351,022 1,769 2.00
Certificates of Deposits 255,785 1,111 1.72
-------------------
Total Deposits 606,807 2,880 1.88
FHLB Advances 733,854 3,362 1.82
Repurchase Agreements / Fed Funds 61,282 179 1.16
Trust Preferred Securities / Junior
Subordinated Debentures 43,898 534 4.83
Warehouse Line of Credit 19,833 107 2.14
-------------------
Total Interest-Bearing Liabilities 1,465,674 7,062 1.91
--------
Noninterest-Bearing Deposits 10,845
Other Noninterest-Bearing Liabilities 4,279
-----------
Total Liabilities 1,480,798
Stockholders' Equity 99,194
-----------
Total Liabilities and Stockholders'
Equity $1,579,992
===========
Net Interest-Earning Assets $67,193
===========
Net Interest Income/Interest Rate Spread $12,363 3.16%
===================
Net Interest Margin 3.23%
===========
----------------------------------------------------------------------
(a) The average balance of loans receivable includes loans held for
sale and is presented without reduction for the allowance for loan
losses.
(b) Consists of mortgage-backed securities and U.S. government
securities which are classified as available-for-sale, excluding
the unrealized gains or losses on these securities.
(c) Consists of cash in interest-earning accounts and federal funds
sold.
(d) Consists of savings, money market accounts and other
interest-bearing deposits.
COMMERCIAL CAPITAL BANCORP, INC.
Average Balances, Net Interest Income, Yields Earned and Rates Paid
(Dollars in Thousands)
YEAR ENDED DEC. 31,
--------------------------------
2004
-------------------------------
Average Interest Average
Balance Yield/Cost
-------------------------------
Interest-Earning Assets:
Total Loans (a) $2,706,840 $146,685 5.42%
Securities (b) 537,505 23,058 4.29
FHLB Stock 70,565 2,811 3.98
Cash and Cash Equivalents (c) 5,703 82 1.44
--------------------
Total Interest-Earning Assets 3,320,613 172,636 5.20
Noninterest-Earning Assets 300,211
-----------
Total Assets $3,620,824
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts (d) $818,594 13,864 1.69
Certificates of Deposits 757,734 12,273 1.62
--------------------
Total Deposits 1,576,328 26,137 1.66
FHLB Advances 1,398,274 27,731 1.98
Repurchase Agreements / Fed Funds 45,378 653 1.44
Trust Preferred Securities / Junior
Subordinated Debentures 102,372 5,005 4.89
Warehouse Line of Credit 4,089 88 2.15
--------------------
Total Interest-Bearing Liabilities 3,126,441 59,614 1.91
---------
Noninterest-Bearing Deposits 71,884
Other Noninterest-Bearing Liabilities 27,678
-----------
Total Liabilities 3,226,003
Stockholders' Equity 394,821
-----------
Total Liabilities and Stockholders'
Equity $3,620,824
===========
Net Interest-Earning Assets $194,172
===========
Net Interest Income/Interest Rate
Spread $113,022 3.29%
===================
Net Interest Margin 3.40%
==========
2003
------------------------------
Average Interest Average
Balance Yield/Cost
------------------------------
Interest-Earning Assets:
Total Loans (a) $751,004 $43,878 5.84%
Securities (b) 463,319 21,005 4.53
FHLB Stock 28,459 1,240 4.36
Cash and Cash Equivalents (c) 5,014 51 1.02
-------------------
Total Interest-Earning Assets 1,247,796 66,174 5.30
Noninterest-Earning Assets 50,128
-----------
Total Assets $1,297,924
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts (d) $278,354 6,050 2.17
Certificates of Deposits 209,913 4,049 1.93
-------------------
Total Deposits 488,267 10,099 2.07
FHLB Advances 544,944 10,975 2.01
Repurchase Agreements / Fed Funds 86,686 1,108 1.28
Trust Preferred Securities / Junior
Subordinated Debentures 37,349 1,876 5.02
Warehouse Line of Credit 35,533 882 2.48
-------------------
Total Interest-Bearing Liabilities 1,192,779 24,940 2.09
--------
Noninterest-Bearing Deposits 8,649
Other Noninterest-Bearing Liabilities 6,472
-----------
Total Liabilities 1,207,900
Stockholders' Equity 90,024
-----------
Total Liabilities and Stockholders'
Equity $1,297,924
===========
Net Interest-Earning Assets $55,017
===========
Net Interest Income/Interest Rate Spread $41,234 3.21%
===================
Net Interest Margin 3.30%
===========
----------------------------------------------------------------------
(a) The average balance of loans receivable includes loans held for
sale and is presented without reduction for the allowance for loan
losses.
(b) Consists of mortgage-backed securities and U.S. government
securities which are classified as available-for-sale, excluding
the unrealized gains or losses on these securities.
(c) Consists of cash in interest-earning accounts and federal funds
sold.
(d) Consists of savings, money market accounts and other
interest-bearing deposits.
COMMERCIAL CAPITAL BANCORP, INC.
Reconciliation of Non-GAAP Financial Measures
(Dollars in Thousands, except per share data)
The following tables provide a reconciliation of the Company's
reported net interest margin and net interest spread compared to
adjusted net interest margin and net interest spread excluding the net
effect of the amortization or accretion of premiums or discounts
resulting from the purchase accounting adjustments due to the
Hawthorne acquisition:
4Q 2004 As Reported Excluding
Premium/Discount
Effect
------------------------------ ------------------
Average Interest Avg. Average Interest
Balance Yield/Cost Balance
------------------------------ ------------------
Total Interest-
Earning Assets $4,554,868 $60,393 5.30% $11,643 $(2,400)
Total Interest-
Bearing Liabilities 4,267,578 21,925 2.04% (4,893) 962
--------- --------
Net Interest Income/Interest
Rate Spread $38,468 3.26% $(3,362)
Net Interest Margin 3.38%
3Q 2004 As Reported Excluding
Premium/Discount
Effect
------------------------------ ------------------
Average Interest Avg. Average Interest
Balance Yield/Cost Balance
------------------------------ ------------------
Total Interest-
Earning Assets $4,339,744 $56,987 5.25% $13,660 $(1,434)
Total Interest-
Bearing Liabilities 4,079,424 19,110 1.86% (6,103) 1,295
--------- --------
Net Interest Income/Interest
Rate Spread $37,877 3.39% $(2,729)
Net Interest Margin 3.49%
4Q 2004 Adjusted
--------------------------------
Average Interest Avg.
Balance Yield/Cost
--------------------------------
Total Interest-Earning Assets $4,566,511 $57,993 5.08%
Total Interest-Bearing Liabilities 4,262,685 22,887 2.14%
---------
Net Interest Income/Interest Rate Spread $35,106 2.94%
Net Interest Margin 3.08%
3Q 2004 Adjusted
--------------------------------
Average Interest Avg.
Balance Yield/Cost
--------------------------------
Total Interest-Earning Assets $4,353,404 $55,553 5.10%
Total Interest-Bearing Liabilities 4,073,321 20,405 1.99%
---------
Net Interest Income/Interest Rate Spread $35,148 3.11%
Net Interest Margin 3.23%
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