Commercial Capital Bancorp, Inc. Announces Record Third Quarter Earnings of $0.32 Per Share on Net Income of $18.0 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) ): --EPS grows 88% from Third Quarter of 2003, and 14% from Second Quarter of 2004 --Tangible Book Value per Share Grows 62% from September September: see month. 30, 2003, and 9% from June June: see month. 30, 2004 --Company Increases Cash Dividend 25% to $0.05 per Share --Record $545 Million of Core 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 Record $583 Million of Total Loan Originations --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 of 30.55% --Efficiency Ratio Equals 30.59% Commercial Capital Bancorp, Inc. (the "Company"), (NASDAQ:CCBI), the holding company for Commercial Capital Bank (the "Bank"), announced today record net income of $18.0 million, or $0.32 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 third quarter of 2004, increases of 236% and 88%, respectively, from $5.4 million or $0.17 per diluted share, for the third quarter of 2003. Also today, the Company announced that it has increased its cash dividend 25% to $0.05 per share to be paid on November November: see month. 29, 2004 to shareholders of record on November 15 2004. The Company's net income for the nine-month period ended September 30, 2004 was a record $36.0 million, or $0.84 per diluted share, increases of 152% and 83%, respectively, from $14.3 million or $0.46 per diluted share, for the nine-month period ended September 30, 2003. Excluding merger-related costs of $494,000, which were incurred during the third quarter of 2004, the Company's net income would have been $18.3 million, or $0.32 per diluted share, for the third quarter of 2004.(1) 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 third quarter of 2004 were 12.02% and 1.50%, respectively, compared to 23.84% and 1.58% for the third quarter of 2003, respectively. Return on tangible equity increased to 30.55% for the third quarter of 2004, compared to 27.89% for the third quarter of 2003. Average equity and average tangible equity ratios for the third quarter of 2004 were 12.45% and 4.90%, respectively. The Company's ROAE and ROAA for the nine-month period ended September 30, 2004 were 15.05% and 1.53%, respectively, compared to 21.88% and 1.58% for the nine-month period ended September 30, 2003, respectively. Return on tangible equity increased to 30.95% for the nine-month period ended September 30, 2004, compared to 25.74% for the nine-month period ended September 30, 2003. The Company's financial results for the three and nine-month periods ended September 30, 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 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, "The first full quarter since the close of the acquisition of Hawthorne Financial Corporation was marked by continued strength in the markets in which the Company operates, continued strength in overall balance sheet performance and mix, record loan originations, and continued transition of the composition of the Bank's deposit base towards a greater percentage of core deposits. In the face of significant capital markets 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 during the quarter, including two Fed rate increases, and an overall flattening of the yield curve Flattening of the yield curve A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift. , we're we're Contraction of we are. we're we are pleased to have again announced significant growth in net interest income, total revenues, net income, tangible book value and earnings per share." Gordon continued, "With the Company growing earnings per share at an 88% annual growth rate and tangible book value per share growing at a 62% annual growth rate since September 30, 2003, we're also pleased to increase the Company's quarterly cash dividend by 25% to $0.05 per share to be paid to shareholders on November 29, 2004."
($ in 000's, except per share data)
Q3 Q2 Q3 YTD YTD
2004 2004 2003 9/30/2004 9/30/2003
Net income $ 18,004 $ 10,923 $ 5,357 $ 36,029 $ 14,271
Basic EPS(2) 0.34 0.30 0.18 0.90 0.49
Diluted EPS(2) 0.32 0.28 0.17 0.84 0.46
Net interest
income 37,877 22,875 10,808 74,554 28,871
Net interest
margin 3.49% 3.51% 3.33% 3.42% 3.34%
Total revenues $ 60,602 $ 36,591 $ 18,546 $ 120,640 $ 54,484
ROAA 1.50% 1.57% 1.58% 1.53% 1.58%
ROAE 12.02 17.66 23.84 15.05 21.88
ROAE - tangible 30.55 32.58 27.89 30.95 25.74
Efficiency ratio 30.59 25.34 27.55 28.06 28.91
Core loan
originations(3) $544,953 $418,916 $243,415 $1,193,972 $684,298
Some of the Company's third quarter 2004 highlights and achievements include: --The Company's 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 increased 5% to $4.97 billion at September 30, 2004, from $4.74 billion at June 30, 2004, and 243% from $1.45 billion at September 30, 2003. Average assets increased 72% to $4.81 billion for the third quarter of 2004, from $2.79 billion for the second quarter of 2004, and 255% from $1.36 billion for the third quarter of 2003. --The Company's core loan originations were a record $545.0 million during the third quarter of 2004, an increase of 30% and 124% from $418.9 million and $243.4 million for the second quarter of 2004 and third quarter of 2003, respectively. The Company's total loan originations were a record $583.2 million during the third quarter of 2004, an increase of 25% and 76% from $466.7 million and $331.4 million for the second quarter of 2004 and third quarter of 2003, respectively. --The Company's loans held for investment increased 6% to $3.86 billion at September 30, 2004, from $3.65 billion at June 30, 2004, and 351% from $857.1 million at September 30, 2003. At September 30, 2004, the weighted average months to reset or maturity on the Company's loans held for investment portfolio was 13 months, compared to 14 months at June 30, 2004. The Company continues to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. and portfolio significant 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. loans secured by lower risk multi-family properties, which rates are tied to market sensitive indices. --The Company's multi-family loans held for investment grew during the third 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 33% to $2.24 billion at September 30, 2004. --The Company's allowance for loan losses was 0.94% of net loans held for investment at September 30, 2004, compared to 1.00% at June 30, 2004, and 0.46% at September 30, 2003. The Company determined that a provision for loan losses was not required for the third quarter of 2004 based on the asset quality review completed during such 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 $5.1 million, or 0.10% of total assets, at September 30, 2004, compared to $5.3 million, or 0.11% of total assets, at June 30, 2004. At September 30, 2004, the allowance for loan losses totaled 719% of nonperforming assets. --The Company's securities portfolio decreased 3% to $486.2 million at September 30, 2004, from $499.8 million at June 30, 2004. Total securities represented 10% of the Company's total assets at September 30, 2004, significantly below the industry peer average. --Transaction accounts totaled 52% of total deposits at September 30, 2004, of which business deposits accounted for 22% of total transaction deposits. The Company's Financial Services 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. Group accounted for $70.2 million of transaction account deposits at September 30, 2004, an increase of 52% from $46.2 million at June 30, 2004. It is the Company's belief that should market interest rates rise, the rates paid by the Company on its transaction accounts will lag such moves, as evidenced by current market rates paid by the Company on its transaction accounts. --The Company's equity to assets and tangible equity to assets ratios were 12.26% and 4.94% at September 30, 2004, respectively, compared to 12.29% and 4.62% at June 30, 2004, respectively, and compared to 6.63% and 5.73% at September 30, 2003, respectively. The Company's tangible equity to 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. ratio was 5.33% at September 30, 2004, compared to 5.00% and 5.78% at June 30, 2004 and September 30, 2003, respectively. --The Company's book value per share increased to $11.20 at September 30, 2004, compared to $10.97 and $3.22 at June 30, 2004 and September 30, 2003, respectively. The Company's tangible book value per share increased 9% to $4.51 at September 30, 2004 from $4.13 at June 30, 2004, and 62% from $2.78 at September 30, 2003. --The Company's total revenues, defined as interest income plus noninterest income, increased 66% to $60.6 million for the third quarter of 2004, from $36.6 million for the second quarter of 2004, and 227% from $18.5 million for the third quarter of 2003. --The Company's net income increased 65% to $18.0 million for the third quarter of 2004, from $10.9 million for the second quarter of 2004, and 236% from $5.4 million for the third quarter of 2003. Excluding the merger-related costs of $494,000 the Company's net income for the third quarter of 2004 would have been $18.3 million, or $0.32 per diluted share.(1) --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 September 30, 2004, the Company had repurchased a total of 657,400 shares at an average price of $18.39, of which 172,900 shares were purchased during the third quarter at an average price of $20.45. 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. --On October October: see month. 4, 2004, the Bank opened its 21st branch, which is located in 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. , 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). . The Company has plans to open banking offices to be located 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 in 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 28th largest thrift thrift: see leadwort. in the country, and sixth largest in California, 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. June 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 June 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 June 30, 2004, according to information available from Dataquick Information Systems. ACQUISITION UPDATE The Company's acquisition of Hawthorne and the merger of Hawthorne Savings into Commercial Capital Bank were completed after the close of business on June 4, 2004. As of September 30, 2004, the integration of Hawthorne is proceeding on schedule, with 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 cost savings significantly ahead of schedule. At the time of the announcement of the Hawthorne acquisition in January January: see month. 2004, the Company estimated cost savings of 25% of Hawthorne's projected general and administrative expenses, with 25% of these cost savings phased in during the third quarter of 2004 and 50% of these cost savings anticipated to be phased in during the fourth quarter of 2004. The Company believes that the aggregate annual cost savings of 25% of Hawthorne's projected general and administrative expenses will be achieved. There were no branch closures and core data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a system conversions are anticipated to be completed in October 2004. As a result of the acquisition of Hawthorne, the Company incurred $494,000 of non-recurring merger-related costs during the third quarter of 2004, due to the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of its item processing contract and to accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. for retention bonuses for certain Hawthorne employees required during the transition, which is anticipated to be completed by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . NET INTEREST INCOME The Company's net interest income increased 250% and 158% to $37.9 million and $74.6 million for the three and nine-month periods ended September 30, 2004, respectively, from $10.8 million and $28.9 million for the three and nine-month periods ended September 30, 2003, respectively. The Company's net interest margin decreased two basis points to 3.49% for the third quarter of 2004, compared to 3.51% for the second quarter of 2004 and increased 16 basis points compared to 3.33% for the third quarter of 2003. The Company's net interest spread decreased two basis points to 3.39% for the third quarter of 2004, compared to 3.41% for the second quarter of 2004 and increased 12 basis points compared to 3.27% for the third quarter of 2003. Excluding the net effect of the amortization or accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of premiums or discounts resulting from the purchase accounting adjustments due to the Hawthorne acquisition, the Company's net interest margin would have been 3.23% during the third quarter of 2004, a decrease of nine basis points compared to 3.32% for the second quarter of 2004 and the Company's net interest spread would have been 3.11% during the third quarter of 2004, a decrease of 10 basis points compared to 3.21% for the second quarter of 2004.(1) The Company's yield on interest-earning assets increased nine basis points to 5.25% for the third quarter of 2004, compared to 5.16% for the second quarter of 2004. The Company's yield on total loans decreased three basis points to 5.41% for the third quarter of 2004, compared to 5.44% for the second quarter of 2004. The increase in yield on interest-earning assets during the third quarter of 2004, despite the decrease in yield on total loans from the second quarter, is a result of the changing composition of the Company's balance sheet, with loans held for investment totaling 87% and securities totaling 11% of average interest-earning assets for the third quarter of 2004, compared to 75% and 22%, respectively, for the second quarter of 2004. The Company's cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities increased 11 basis points to 1.86% for the third quarter of 2004, compared to 1.75%, for the second quarter of 2004. The Company's cost of deposits declined seven basis points to 1.57% for the third quarter of 2004, compared to 1.64% for the second quarter of 2004. The decline in the cost of deposits was driven primarily by an 11 basis points decline in the average rate paid on transaction accounts, and reflects the impact of the acquisition of Hawthorne and its strong community-based retail deposit franchise. 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. , which includes the effect of noninterest-bearing deposits, increased 11 basis points to 1.82% for the third quarter of 2004, compared to 1.71% for the second quarter of 2004. During the third quarter of 2004, the Company continued to take proactive steps to manage its interest rate risk position in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of higher market rates of interest. During the third quarter of 2004, the Company made the asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. decision to replace higher costing, shorter duration time deposits and other non-core deposits, and further support the Company's asset growth, with $275 million of longer duration, fixed rate borrowings from the Federal Home Loan Bank of San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden ("FHLB FHLB Federal Home Loan Bank "). NONINTEREST INCOME Noninterest income increased 143% and 9% to $3.6 million and $8.4 million for the three and nine-month periods ended September 30, 2004, respectively, from $1.5 million and $7.7 million for the three and nine-month periods ended September 30, 2003, respectively. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. loan and retail banking fee income increased 737% and 383% to $2.8 million and $4.4 million for the three and nine-month periods ended September 30, 2004, respectively, from $335,000 and $913,000 for the three and nine-month periods ended September 30, 2003, respectively. The primary reason for the increase is loan related fees included 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 $2.0 million and $3.3 million for the three and nine-month periods ended September 30, 2004, respectively, compared to $286,000 and $753,000 for the three and nine-month periods ended September 30, 2003, respectively. The Company's noninterest income included gains on sales of loans and securities of $72,000 and $2.4 million for the three and nine-month periods ended September 30, 2004, respectively, compared to $593,000 and $5.3 million for the three and nine-month periods ended September 30, 2003, respectively. NONINTEREST EXPENSES The Company's efficiency ratio was 30.59% and 28.06% for the three and nine-month periods ended September 30, 2004, respectively, compared to 27.55% and 28.91% for the three and nine-month periods ended September 30, 2003, respectively. General and administrative expenses were 1.05% and 0.99% of total average assets for the three and nine-month periods ended September 30, 2004, respectively, compared to 1.00% and 1.17% for the three and nine-month periods ended September 30, 2003, respectively. The increase in the efficiency ratio during the third quarter of 2004 reflects the acquisition of Hawthorne as of June 4, 2004, as well as the impact of merger-related costs. Excluding merger-related costs of $494,000 and $914,000, the Company's efficiency ratio would have been 29.40% and 26.96% for the three and nine-month periods ended September 30, 2004, respectively, and the Company's general and administrative expenses would have been 1.01% and 0.95% of average total assets, respectively.(1) The Company's general and administrative expenses totaled $12.7 million and $23.3 million for the three and nine-month periods ended September 30, 2004, respectively, compared to $3.4 million and $10.6 million for the three and nine-month periods ended September 30, 2003, respectively. The increases during the periods ended September 30, 2004 compared to the periods ended September 30, 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 $261,000 of amortization of the core deposit intangible for the three and nine-month periods ended September 30, 2004, respectively, as a result of the acquisition of Hawthorne. INCOME TAXES The Company's effective tax rate was 37.04% and 38.10% for the three and nine-month periods ended September 30, 2004, respectively, compared to 37.61% and 39.26% for the three and nine-month periods ended September 30, 2003, respectively. The reduction of the Company's effective tax rate during the periods ended September 30, 2004 compared to the year ago periods reflects the realization 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 assets of $4.97 billion at September 30, 2004, an increase of 5% and 243% from $4.74 billion and $1.45 billion at June 30, 2004 and September 30, 2003, respectively. Total loans, which include loans held for investment, net of allowances, and loans held for sale totaled $3.88 billion, an increase of 6% and 339% from $3.65 billion and $883.6 million at June 30, 2004 and September 30, 2003, respectively. At September 30, 2004, multi-family loans held for investment totaled $2.24 billion, representing 57% of total loans, an increase of 8% from $2.07 billion at June 30, 2004. At September 30, 2003, multi-family loans held for investment represented 89% of total loans. 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 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 . At September 30, 2004, 52% of the Company's loans held for investment are tied to an index that adjusts each month or mature within one month, up from 46% at June 30, 2004. In addition, 66% of the Company's loans held for investment have interest rates scheduled to reset or mature within six months from September 30, 2004 and 68% reset or mature within one year from September 30, 2004, up from 63% and 67%, respectively, at June 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. 13 months at September 30, 2004, a decrease from 14 months at June 30, 2004, thereby creating a greater degree of asset sensitivity at September 30, 2004. The Company's securities portfolio totaled $486.2 million at September 30, 2004, a decrease of 3% and an increase of 8% from $499.8 million and $449.0 million at June 30, 2004 and September 30, 2003, respectively. Mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. were 10% of total assets at September 30, 2004, well below industry peers, and below the Company's historic levels, which were 11% and 31% at June 30, 2004 and September 30, 2003, 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 $2.30 billion at September 30, 2004, a decrease of 6% and an increase of 306% from $2.44 billion and $566.4 million at June 30, 2004 and September 30, 2003, respectively. Transaction account deposits totaled $1.19 billion at September 30, 2004, a decrease of 3% and an increase of 265% from $1.22 billion and $324.6 million at June 30, 2004 and September 30, 2003, respectively. Of the Company's transaction account deposits at September 30, 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 $266.5 million
of the total. The Company's time deposits totaled $1.11 billion at
September 30, 2004, compared to $1.23 billion and $241.9 million at June
30, 2004 and September 30, 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 and
other non-core deposits with longer duration, fixed rate borrowings from
the FHLB, opportunistically extending duration of those liabilities as
the yield curve flattened flat·ten v. flat·tened, flat·ten·ing, flat·tens v.tr. 1. To make flat or flatter. 2. To knock down; lay low: The boxer was flattened with one punch. during the quarter. This resulted in core transaction accounts equaling approximately 52% of total deposits at September 30, 2004, up from 50% of total deposits at June 30, 2004. The deposit franchise consisted of approximately 68,000 accounts at September 30, 2004, served by 20 banking offices with an average of $115 million in deposits per branch. The Company's approximately 51,000 transaction accounts had an average balance of approximately $23,000. The Company's approximately 17,000 time deposit accounts had an average balance of approximately $64,000. Borrowings totaled $2.02 billion at September 30, 2004, an increase of 20% and 168% from $1.69 billion and $755.6 million at June 30, 2004 and September 30, 2003, respectively. FHLB advances totaled $1.89 billion at September 30, 2004, an increase of 22% and 175% from $1.55 billion and $686.6 million at June 30, 2004 and September 30, 2003, respectively. FHLB borrowings with maturities of greater than one year and less than 6.25 years totaled $853 million, at September 30, 2004. At September 30, 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 $135.2 million, compared to $135.4 million at June 30, 2004, and $42.5 million at September 30, 2003. The increase from September 30, 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 $608.7 million at September 30, 2004, an increase of 4% and 533% from $582.8 million and $96.1 million at June 30, 2004, and September 30, 2003, respectively. Tangible stockholders' equity totaled $245.2 million, an increase of 12% and 195% from $219.1 million and $83.1 million at June 30, 2004 and September 30, 2003, respectively. The Company's equity to assets and tangible equity to assets were 12.26% and 4.94% at September 30, 2004, respectively, compared to 12.29% and 4.62% at June 30, 2004, respectively, and compared to 6.63% and 5.73% at September 30, 2003, respectively. The Company's tangible equity to tangible assets ratio was 5.33% at September 30, 2004, compared to 5.00% and 5.78% at June 30, 2004 and September 30, 2003, respectively. Book value per share totaled $11.20, an increase of 2% and 248% from $10.97 and $3.22 at June 30, 2004, and September 30, 2003, respectively. Tangible book value per share totaled $4.51, an increase of 9% and 62% from $4.13 and $2.78 at June 30, 2004, and September 30, 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 7.63%, 10.49% and 11.59% at September 30, 2004, respectively. LOAN ORIGINATIONS The Company's core loan originations were a record $545.0 million during the third quarter of 2004, an increase of 30% and 124% from $418.9 million and $243.4 million, for the second quarter of 2004 and third 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 a record $583.2 million during the third quarter of 2004, an increase of 25% and 76% from $466.7 million and $331.4 million for the second quarter of 2004 and third quarter of 2003, respectively. The Company's total loan originations increased 63% to a record $1.31 billion during the nine-month period ended September 30, 2004, from $805.5 million for the nine-month period ended September 30, 2003. The Company's core loan originations for the third quarter of 2004 consisted of $325.6 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, $40.7 million of commercial real estate loans, $131.9 million of single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. residential real estate loans, $43.7 million of construction and land loans, and $3.1 million of business and other loans. During the third quarter of 2004, purchase transactions represented 57% of the Company's core multi-family originations, 57% of core single-family residential originations and 34% of the core commercial real estate loan originations. The Company's core multi-family originations during the third quarter of 2004 had an average loan size of $1.7 million, loan-to-value ("LTV LTV See: Loan-to-value ratio ") of 68.7% 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 1.28 to 1. The Company's core commercial real estate originations during the third quarter of 2004 had an average loan size of $1.9 million, LTV of 65.7% and DCR of 1.33 to 1. The Company's core single-family loan originations during the third quarter of 2004 had an average loan size of $916,000, and LTV of 64.4%. Of the Company's $545.0 million of core loan originations during the third quarter of 2004, 99% were adjustable rate loans, of which 76% 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 13 months at September 30, 2004, thereby continuing to position the Company well for rising market rates of interest. At October 22, 2004, the Company's total pipeline amounted to $432 million, and core pipeline amounted to $380 million. The value of loans in the Company's total loan pipeline equaled $353 million at September 30, 2004, compared to $470 million and $320 million at June 30, 2004 and September 30, 2003, respectively. The value of loans in the Company's core loan pipeline equaled $322 million at September 30, 2004, compared to $439 million and $270 million at June 30, 2004 and September 30, 2003, respectively. The Company projects significant interest-earning asset growth during the fourth quarter of 2004 driven by strong volumes of adjustable rate, core loan originations. PORTFOLIO ASSET QUALITY The Company's asset quality review, performed during the third quarter of 2004, was based on its asset classification process along with the prior classification process of Hawthorne, which the Company applied to the acquired 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 third quarter of 2004 was not required and that the allowance for loan losses is adequate to cover potential 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 September 30, 2004, Commercial Capital Bancorp, Inc. had total assets of $5.0 billion, and total deposits of $2.3 billion. Commercial Capital Bank operates 21 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, 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:
Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Corte Corte (Corsican Corti) in is a town and a commune in the Haute-Corse département in central Corsica, in France. It is the fourth-largest commune in Corsica (after Ajaccio, Bastia, and Porto-Vecchio), with a 1999 census population of 6,329 inhabitants. Madera, Burlingame Burlingame, city (1990 pop. 26,801), San Mateo co., W Calif., on San Francisco Bay; founded 1868, inc. 1908. Burlingame is mainly residential, with light manufacturing (plastic and metal products, furniture, and computers). The city is named for U.S. diplomat Anson Burlingame. , Oakland Oakland, city (1990 pop. 372,242), seat of Alameda co., W Calif., on the eastern side of San Francisco Bay; inc. 1852. Together with San Francisco and San Jose, the city comprises the fourth largest metropolitan area in the United States. , Encino, Glendale Glendale. 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 in early 2005, and Newport Coast, California in mid-2005. The Company was the 3rd largest multi-family lender in California during the 12 months ended June 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 June 30, 2004 (source: www.fdic.gov). CONFERENCE CALL AND WEBCAST INFORMATION Analysts and investors may listen to a discussion of the third 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. Conference Call Date: Monday, October 25, 2004 Time: 7:00 a.m. PDT (10:00 a.m. EDT) Phone Number (800) 591-6923 International Dial-in Number (617) 614-4907 Access Code: 24172327 Webcast Date: Monday, October 25, 2004 Time: 7:00 a.m. PDT (10:00 a.m. EDT) Webcast URL: www.commercialcapital.com Windows Media player is required Replay information: for those who are unable to participate in the call or webcast, 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 site at www.commercialcapital.com beginning approximately 2 hours following the end of the call. The archive will be available until November 28, 2004. It is recommended that participants dial into the call, or log in to the webcast, approximately 5 to 10 minutes prior to the event. 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 each 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 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.
(1) For detail regarding non-GAAP financial measures, see financial
tables.
(2) Per share data has been adjusted to reflect the 3-for-2 stock
split completed on September 29, 2003, and the 4-for-3 stock split
completed on February 20, 2004.
(3) 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)
Sept. 30, 2004 Sept. 30, 2003
--------------------------------------- -------------- ---------------
ASSETS
---------------------------------------
Cash and Bank Accounts $20,445 $8,347
Fed Funds - 20,500
Securities
MBS - Available For Sale 486,120 448,859
Other Investments - Available For
Sale 100 101
-------------- ---------------
Total Securities 486,220 448,960
FHLB Stock 86,147 35,395
Loans Held for Investment
Single Family 957,825 2,754
Multi-family 2,235,427 764,996
Commercial Real Estate 435,075 83,687
Construction Loans 213,656 -
Land 55,786 -
-------------- ---------------
Total Real Estate Loans 3,897,769 851,437
Business and Other Loans 13,399 10,397
-------------- ---------------
Total Loans 3,911,168 861,834
Net Deferred Fees, Premiums and
Discounts (11,740) (808)
Allowance for Loan Losses (36,846) (3,938)
-------------- ---------------
Total Loans Held for
Investment, Net 3,862,582 857,088
Loans Held for Sale 17,620 26,514
Fixed Assets - Net 9,989 1,400
Foreclosed Assets - -
Accrued Interest Receivable 16,819 5,514
Goodwill 357,367 13,035
Core Deposit Intangible 6,105 -
Bank-Owned Life Insurance 46,270 17,774
Other Assets 57,212 15,061
--------------------------------------- -------------- ---------------
TOTAL ASSETS $4,966,776 $1,449,588
======================================= ============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------
Deposits
Demand Deposits - Noninterest-
Bearing $92,950 $8,827
Demand Deposits - Interest-Bearing 80,267 858
Money Market Checking 419,760 312,501
Money Market Savings 298,165 -
Savings 293,905 2,365
-------------- ---------------
Total Transaction Deposits 1,185,047 324,551
Retail Time Deposits 1,040,634 183,742
Broker Time Deposits 72,961 58,117
-------------- ---------------
Total Time Deposits 1,113,595 241,859
-------------- ---------------
Total Deposits 2,298,642 566,410
Borrowings
FHLB Advances 1,888,798 686,562
Securities Sold Under Agreements to
Repurchase - -
Junior Subordinated Debentures(1) 135,225 -
Trust Preferred Securities(1) - 42,500
Warehouse Line of Credit - 26,512
-------------- ---------------
Total Borrowings 2,024,023 755,574
Other Liabilities 35,403 31,502
--------------------------------------- -------------- ---------------
TOTAL LIABILITIES 4,358,068 1,353,486
STOCKHOLDERS' EQUITY 608,708 96,102
--------------------------------------- -------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $4,966,776 $1,449,588
======================================= ============== ===============
Operating Data
Performance Ratios and Other Data: Sept. 30, 2004 Sept. 30, 2003
-------------- ---------------
Equity to assets at end of period 12.26% 6.63%
Tangible equity to assets at end of
period 4.94 5.73
Tangible equity to tangible assets at
end of period 5.33 5.78
Nonperforming assets $5,126 $175
Nonperforming assets to total assets 0.10% 0.01%
Allowance for loan losses to loans held
for investment at end of period 0.94 0.46
Allowance for loan losses to nonaccrual
loans 719 2,250
Per Share Data
Common shares outstanding at end of
period(2) 54,361,762 29,859,865
Book value per share(2) $11.20 $3.22
Tangible book value per share(2) 4.51 2.78
(1) 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.
(2) Per share data has been adjusted to reflect the 3-for-2 stock
split on September 29, 2003, and 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 data)
THREE MONTHS ENDED
Sept. 30, 2004 Sept. 30, 2003
---------------------------------------- -------------- --------------
Interest Income
Loans $50,777 $11,425
Securities 5,301 5,273
FHLB Stock 891 345
Federal Funds Sold and Other 18 17
-------------- --------------
Total Interest Income 56,987 17,060
Interest Expense
Deposits 9,060 2,676
FHLB Advances 8,437 2,941
Repurchase Agreements/Fed Funds
Purchased 2 76
Junior Subordinated Debentures 1,611 -
Trust Preferred Securities - 438
Warehouse Line of Credit - 121
-------------- --------------
Total Interest Expense 19,110 6,252
-------------- --------------
Net Interest Income 37,877 10,808
Provision for Loan Losses - -
-------------- --------------
Net Interest Income after Provision for
Loan Losses 37,877 10,808
Noninterest Income
Gain on Sale of Loans 72 198
Mortgage Banking Fees 137 244
Loan Related Fees 2,217 312
Retail Banking Fees 588 23
Other Income 601 314
Gain on Sale of Securities - 395
-------------- --------------
Total Noninterest Income 3,615 1,486
Noninterest Expenses
Compensation and Benefits 6,148 2,019
Severance - -
Non-Cash Stock Compensation 29 -
Occupancy and Equipment 2,131 344
General Operating 3,892 1,024
Merger-Related 494 -
-------------- --------------
Total G&A Expenses 12,694 3,387
Early Extinguishment of Debt - 320
Amortization of Core Deposit
Intangible 203 -
-------------- --------------
Total Noninterest Expenses 12,897 3,707
-------------- --------------
Income Before Taxes 28,595 8,587
Income Tax Expense 10,591 3,230
-------------- --------------
Net Income $18,004 $5,357
============== ==============
Operating Data THREE MONTHS ENDED
Performance Ratios and Other Data: Sept. 30, 2004 Sept. 30, 2003
-------------- --------------
Earnings per share - Basic(1) $0.34 $0.18
Earnings per share - Diluted(1) 0.32 0.17
Weighted average shares outstanding --
Basic(1) 53,625,568 29,609,168
Weighted average shares outstanding --
Diluted(1) 56,824,595 31,569,969
Return on average assets 1.50% 1.58%
Return on average stockholders' equity 12.02 23.84
Return on average tangible stockholders'
equity 30.55 27.89
Interest rate spread 3.39 3.27
Net interest margin 3.49 3.33
Efficiency ratio 30.59 27.55
G&A to average assets 1.05 1.00
Effective tax rate 37.04 37.61
Total loan originations $583,184 $331,384
Core loan originations(2) 544,953 243,415
Broker/conduit originations 38,231 87,969
Core loan originations retained 542,434 221,799
Percent of core loan originations
retained 100% 91%
Net Charge-offs (Recoveries) $(15) $64
(1) Per share data has been adjusted to reflect the 3-for-2 stock
split on September 29, 2003, and the 4-for-3 stock split on
February 20, 2004.
(2) 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)
NINE MONTHS ENDED
Sept. 30, 2004 Sept. 30, 2003
---------------------------------------- -------------- --------------
Interest Income
Loans $92,464 $30,285
Securities 17,773 15,570
FHLB Stock 1,951 858
Federal Funds Sold and Other 55 36
-------------- --------------
Total Interest Income 112,243 46,749
Interest Expense
Deposits 16,963 7,219
FHLB Advances 17,106 7,613
Repurchase Agreements/Fed Funds
Purchased 297 929
Junior Subordinated Debentures 3,235 -
Trust Preferred Securities - 1,342
Warehouse Line of Credit 88 775
-------------- --------------
Total Interest Expense 37,689 17,878
-------------- --------------
Net Interest Income 74,554 28,871
Provision for Loan Losses - 1,286
-------------- --------------
Net Interest Income after Provision for
Loan Losses 74,554 27,585
Noninterest Income
Gain on Sale of Loans 214 1,744
Mortgage Banking Fees 444 604
Loan Related Fees 3,603 861
Retail Banking Fees 801 52
Other Income 1,183 915
Gain on Sale of Securities 2,152 3,559
-------------- --------------
Total Noninterest Income 8,397 7,735
Noninterest Expenses
Compensation and Benefits 11,810 5,650
Severance - 671
Non-Cash Stock Compensation 87 353
Occupancy and Equipment 3,205 844
General Operating 7,263 3,065
Merger-Related 914 -
-------------- --------------
Total G&A Expenses 23,279 10,583
Early Extinguishment of Debt 1,204 1,243
Amortization of Core Deposit
Intangible 261 -
-------------- --------------
Total Noninterest Expenses 24,744 11,826
-------------- --------------
Income Before Taxes 58,207 23,494
Income Tax Expense 22,178 9,223
-------------- --------------
Net Income $36,029 $14,271
============== ==============
Operating Data NINE MONTHS ENDED
Performance Ratios and Other Data: Sept. 30, 2004 Sept. 30, 2003
-------------- --------------
Earnings per share - Basic(1) $0.90 $0.49
Earnings per share - Diluted(1) 0.84 0.46
Weighted average shares outstanding --
Basic(1) 40,173,889 29,131,036
Weighted average shares outstanding --
Diluted(1) 42,794,098 30,810,429
Return on average assets 1.53% 1.58%
Return on average stockholders' equity 15.05 21.88
Return on average tangible stockholders'
equity 30.95 25.74
Interest rate spread 3.31 3.24
Net interest margin 3.42 3.34
Efficiency ratio 28.06 28.91
G&A to average assets 0.99 1.17
Effective tax rate 38.10 39.26
Total loan originations $1,309,246 $805,463
Core loan originations(2) 1,193,972 684,298
Broker/conduit originations 115,274 121,165
Core loan originations retained 1,191,250 510,720
Percent of core loan originations
retained 100% 75%
Net Charge-offs (Recoveries) $(19) $64
(1) Per share data has been adjusted to reflect the 3-for-2 stock
split on September 29, 2003, and the 4-for-3 stock split on
February 20, 2004.
(2) 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)
Sept. 30, June 30, Mar. 31,
2004 2004 2004
---------------------------------- ----------- ----------- -----------
ASSETS
----------------------------------
Cash and Bank Accounts $20,445 $18,379 $7,897
Fed Funds - - 64,000
Securities
MBS - Available For Sale 486,120 499,746 506,682
Other Investments - Available For
Sale 100 100 100
----------- ----------- -----------
Total Securities 486,220 499,846 506,782
FHLB Stock 86,147 85,543 48,475
Loans Held for Investment
Single Family 957,825 924,238 2,882
Multi-family 2,235,427 2,065,938 1,045,651
Commercial Real Estate 435,075 427,898 146,329
Construction Loans 213,656 216,926 -
Land 55,786 51,637 -
----------- ----------- -----------
Total Real Estate Loans 3,897,769 3,686,637 1,194,862
Business and Other Loans 13,399 12,926 7,094
----------- ----------- -----------
Total Loans 3,911,168 3,699,563 1,201,956
Net Deferred Fees, Premiums and
Discounts (11,740) (14,801) (1,087)
Allowance for Loan Losses (36,846) (36,831) (3,944)
----------- ----------- -----------
Total Loans Held for
Investment, Net 3,862,582 3,647,931 1,196,925
Loans Held for Sale 17,620 983 3,079
Fixed Assets - Net 9,989 8,441 1,784
Foreclosed Assets - - -
Accrued Interest Receivable 16,819 16,897 7,626
Goodwill 357,367 357,367 13,035
Core Deposit Intangible 6,105 6,308 -
Bank-Owned Life Insurance 46,270 45,843 18,130
Other Assets 57,212 56,312 91,923
---------------------------------- ----------- ----------- -----------
TOTAL ASSETS $4,966,776 $4,743,850 $1,959,656
================================== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------
Deposits
Demand Deposits - Noninterest-
Bearing $92,950 $92,627 $35,959
Demand Deposits - Interest-
Bearing 80,267 88,922 1,084
Money Market Checking 419,760 450,317 441,595
Money Market Savings 298,165 386,836 -
Savings 293,905 198,063 3,105
----------- ----------- -----------
Total Transaction Deposits 1,185,047 1,216,765 481,743
Retail Time Deposits 1,040,634 1,154,211 186,597
Broker Time Deposits 72,961 72,961 67,960
----------- ----------- -----------
Total Time Deposits 1,113,595 1,227,172 254,557
----------- ----------- -----------
Total Deposits 2,298,642 2,443,937 736,300
Borrowings
FHLB Advances 1,888,798 1,550,770 970,477
Securities Sold Under Agreements
to Repurchase - - 58,502
Junior Subordinated Debentures(1) 135,225 135,370 64,435
Trust Preferred Securities(1) - - -
Warehouse Line of Credit - - 2,100
----------- ----------- -----------
Total Borrowings 2,024,023 1,686,140 1,095,514
Other Liabilities 35,403 30,952 14,082
---------------------------------- ----------- ----------- -----------
TOTAL LIABILITIES 4,358,068 4,161,029 1,845,896
STOCKHOLDERS' EQUITY 608,708 582,821 113,760
---------------------------------- ----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $4,966,776 $4,743,850 $1,959,656
================================== =========== =========== ===========
Operating Data
Performance Ratios and Other Data: Sept. 30, June 30, Mar. 31,
2004 2004 2004
----------- ----------- -----------
Equity to assets at end of period 12.26% 12.29% 5.81%
Tangible equity to assets at end
of period 4.94 4.62 5.14
Tangible equity to tangible assets
at end of period 5.33 5.00 5.17
Nonperforming assets $5,126 $5,255 $75
Nonperforming assets to total
assets 0.10% 0.11% 0.00%
Allowance for loan losses to loans
held for investment at end of
period 0.94 1.00 0.33
Allowance for loan losses to
nonaccrual loans 719 701 5,259
Per Share Data
Common shares outstanding at end
of period(2) 54,361,762 53,126,308 30,100,472
Book value per share(2) $11.20 $10.97 $3.78
Tangible book value per share(2) 4.51 4.13 3.35
Dec. 31, Sept. 30,
2003 2003
---------------------------------------------- ----------- -----------
ASSETS
----------------------------------------------
Cash and Bank Accounts $4,066 $8,347
Fed Funds - 20,500
Securities
MBS - Available For Sale 560,629 448,859
Other Investments - Available For Sale 100 101
----------- -----------
Total Securities 560,729 448,960
FHLB Stock 41,517 35,395
Loans Held for Investment
Single Family 3,193 2,754
Multi-family 935,063 764,996
Commercial Real Estate 108,560 83,687
Construction Loans - -
Land - -
----------- -----------
Total Real Estate Loans 1,046,816 851,437
Business and Other Loans 5,711 10,397
----------- -----------
Total Loans 1,052,527 861,834
Net Deferred Fees, Premiums and Discounts (953) (808)
Allowance for Loan Losses (3,942) (3,938)
----------- -----------
Total Loans Held for Investment, Net 1,047,632 857,088
Loans Held for Sale 14,893 26,514
Fixed Assets - Net 1,534 1,400
Foreclosed Assets - -
Accrued Interest Receivable 6,827 5,514
Goodwill 13,035 13,035
Core Deposit Intangible - -
Bank-Owned Life Insurance 17,925 17,774
Other Assets 14,981 15,061
---------------------------------------------- ----------- -----------
TOTAL ASSETS $1,723,139 $1,449,588
============================================== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------------------------
Deposits
Demand Deposits - Noninterest-Bearing $12,125 $8,827
Demand Deposits - Interest-Bearing 942 858
Money Market Checking 372,273 312,501
Money Market Savings - -
Savings 2,700 2,365
----------- -----------
Total Transaction Deposits 388,040 324,551
Retail Time Deposits 189,566 183,742
Broker Time Deposits 67,990 58,117
----------- -----------
Total Time Deposits 257,556 241,859
----------- -----------
Total Deposits 645,596 566,410
Borrowings
FHLB Advances 822,519 686,562
Securities Sold Under Agreements to
Repurchase 74,475 -
Junior Subordinated Debentures(1) - -
Trust Preferred Securities(1) 52,500 42,500
Warehouse Line of Credit 13,794 26,512
----------- -----------
Total Borrowings 963,288 755,574
Other Liabilities 12,213 31,502
---------------------------------------------- ----------- -----------
TOTAL LIABILITIES 1,621,097 1,353,486
STOCKHOLDERS' EQUITY 102,042 96,102
---------------------------------------------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,723,139 $1,449,588
============================================== =========== ===========
Operating Data
Performance Ratios and Other Data: Dec. 31, Sept. 30,
2003 2003
----------- -----------
Equity to assets at end of period 5.92% 6.63%
Tangible equity to assets at end of period 5.17 5.73
Tangible equity to tangible assets at end of
period 5.20 5.78
Nonperforming assets $129 $175
Nonperforming assets to total assets 0.01% 0.01%
Allowance for loan losses to loans held for
investment at end of period 0.37 0.46
Allowance for loan losses to nonaccrual loans 3,056 2,250
Per Share Data
Common shares outstanding at end of period(2) 29,956,372 29,859,865
Book value per share(2) $3.41 $3.22
Tangible book value per share(2) 2.97 2.78
(1) 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.
(2) Per share data has been adjusted to reflect the 3-for-2 stock
split on September 29, 2003, and 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 data)
THREE MONTHS ENDED
Sept. 30, June 30, Mar. 31,
2004 2004 2004
---------------------------------- ----------- ----------- -----------
Interest Income
Loans $50,777 $26,647 $15,041
Securities 5,301 6,301 6,170
FHLB Stock 891 662 399
Federal Funds Sold and Other 18 16 20
----------- ----------- -----------
Total Interest Income 56,987 33,626 21,630
Interest Expense
Deposits 9,060 4,815 3,088
FHLB Advances 8,437 4,774 3,895
Repurchase Agreements/Fed Funds
Purchased 2 139 156
Junior Subordinated Debentures 1,611 986 638
Trust Preferred Securities - - -
Warehouse Line of Credit - 37 51
----------- ----------- -----------
Total Interest Expense 19,110 10,751 7,828
----------- ----------- -----------
Net Interest Income 37,877 22,875 13,802
Provision for Loan Losses - - -
----------- ----------- -----------
Net Interest Income after
Provision for Loan Losses 37,877 22,875 13,802
Noninterest Income
Gain on Sale of Loans 72 4 138
Mortgage Banking Fees 137 194 112
Loan Related Fees 2,217 977 410
Retail Banking Fees 588 186 27
Other Income 601 345 238
Gain on Sale of Securities - 1,259 893
----------- ----------- -----------
Total Noninterest Income 3,615 2,965 1,818
Noninterest Expenses
Compensation and Benefits 6,148 3,452 2,210
Severance - - -
Non-Cash Stock Compensation 29 29 29
Occupancy and Equipment 2,131 713 361
General Operating 3,892 1,933 1,439
Merger-Related 494 420 -
----------- ----------- -----------
Total G&A Expenses 12,694 6,547 4,039
Early Extinguishment of Debt - 1,204 -
Amortization of Core Deposit
Intangible 203 58 -
----------- ----------- -----------
Total Noninterest Expenses 12,897 7,809 4,039
----------- ----------- -----------
Income Before Taxes 28,595 18,031 11,581
Income Tax Expense 10,591 7,108 4,480
----------- ----------- -----------
Net Income $18,004 $10,923 $7,101
=========== =========== ===========
Operating Data THREE MONTHS ENDED
Performance Ratios and Other Data: Sept. 30, June 30, Mar. 31,
2004 2004 2004
----------- ----------- -----------
Earnings per share - Basic(1) $0.34 $0.30 $0.24
Earnings per share - Diluted(1) 0.32 0.28 0.22
Weighted average shares
outstanding -- Basic(1) 53,625,568 36,729,282 30,018,996
Weighted average shares
outstanding -- Diluted(1) 56,824,595 39,194,351 32,215,530
Return on average assets 1.50% 1.57% 1.56%
Return on average stockholders'
equity 12.02 17.66 26.30
Return on average tangible
stockholders' equity 30.55 32.58 29.91
Interest rate spread 3.39 3.41 3.03
Net interest margin 3.49 3.51 3.14
Efficiency ratio 30.59 25.34 25.86
G&A to average assets 1.05 0.94 0.89
Effective tax rate 37.04 39.42 38.68
Total loan originations $583,184 $466,690 $259,372
Core loan originations(2) 544,953 418,916 230,103
Broker/conduit originations 38,231 47,774 29,269
Core loan originations retained 542,434 420,988 227,828
Percent of core loan originations
retained 100% 100% 99%
Net Charge-offs (Recoveries) $(15) $(2) $(2)
Dec. 31, Sept. 30,
2003 2003
---------------------------------------------- ----------- -----------
Interest Income
Loans $13,593 $11,425
Securities 5,435 5,273
FHLB Stock 382 345
Federal Funds Sold and Other 15 17
----------- -----------
Total Interest Income 19,425 17,060
Interest Expense
Deposits 2,880 2,676
FHLB Advances 3,362 2,941
Repurchase Agreements/Fed Funds Purchased 179 76
Junior Subordinated Debentures - -
Trust Preferred Securities 534 438
Warehouse Line of Credit 107 121
----------- -----------
Total Interest Expense 7,062 6,252
----------- -----------
Net Interest Income 12,363 10,808
Provision for Loan Losses - -
----------- -----------
Net Interest Income after Provision for Loan
Losses 12,363 10,808
Noninterest Income
Gain on Sale of Loans 424 198
Mortgage Banking Fees 136 244
Loan Related Fees 404 312
Retail Banking Fees 34 23
Other Income 180 314
Gain on Sale of Securities 256 395
----------- -----------
Total Noninterest Income 1,434 1,486
Noninterest Expenses
Compensation and Benefits 2,008 2,019
Severance - -
Non-Cash Stock Compensation - -
Occupancy and Equipment 334 344
General Operating 1,220 1,024
Merger-Related - -
----------- -----------
Total G&A Expenses 3,562 3,387
Early Extinguishment of Debt 58 320
Amortization of Core Deposit Intangible - -
----------- -----------
Total Noninterest Expenses 3,620 3,707
----------- -----------
Income Before Taxes 10,177 8,587
Income Tax Expense 4,019 3,230
----------- -----------
Net Income $6,158 $5,357
=========== ===========
Operating Data
Performance Ratios and Other Data: Dec. 31, Sept. 30,
2003 2003
----------- -----------
Earnings per share - Basic(1) $0.21 $0.18
Earnings per share - Diluted(1) 0.19 0.17
Weighted average shares outstanding --
Basic(1) 29,917,584 29,609,168
Weighted average shares outstanding --
Diluted(1) 32,007,081 31,569,969
Return on average assets 1.56% 1.58%
Return on average stockholders' equity 24.83 23.84
Return on average tangible stockholders'
equity 28.59 27.89
Interest rate spread 3.16 3.27
Net interest margin 3.23 3.33
Efficiency ratio 25.82 27.55
G&A to average assets 0.90 1.00
Effective tax rate 39.49 37.61
Total loan originations $304,039 $331,384
Core loan originations(2) 274,884 243,415
Broker/conduit originations 29,155 87,969
Core loan originations retained 257,289 221,799
Percent of core loan originations retained 94% 91%
Net Charge-offs (Recoveries) $(4) $64
(1) Per share data has been adjusted to reflect the 3-for-2 stock
split on September 29, 2003, and the 4-for-3 stock split on
February 20, 2004.
(2) 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
Three Months Ended Sept. 30,
--------------------------------
2004
--------------------------------
Average Interest Average
Balance Yield/Cost
----------- -------- -----------
(Dollars in thousand)
Interest-Earning Assets:
Total Loans(1) $3,755,796 $50,777 5.41%
Securities(2) 494,957 5,301 4.28
FHLB Stock 85,241 891 4.18
Cash and Cash Equivalents(3) 3,750 18 1.92
----------- --------
Total Interest-Earning Assets 4,339,744 56,987 5.25
Noninterest-Earning Assets 474,926
-----------
Total Assets $4,814,670
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $1,122,315 4,559 1.62
Certificates of Deposits 1,176,655 4,501 1.52
----------- --------
Total Deposits 2,298,970 9,060 1.57
Repurchase Agreements/Fed Funds
Purchased 446 2 1.78
FHLB Advances 1,644,687 8,437 2.04
Warehouse Line of Credit - - -
Trust Preferred Securities/Junior
Subordinated Debt 135,321 1,611 4.74
----------- --------
Total Interest-Bearing Liabilities 4,079,424 19,110 1.86
--------
Noninterest-Bearing Deposits 101,268
Other Noninterest-Bearing Liabilities 34,630
-----------
Total Liabilities 4,215,322
Stockholders' Equity 599,348
-----------
Total Liabilities and Stockholders'
Equity $4,814,670
===========
Net Interest-Earning Assets $260,320
===========
Net Interest Income/Interest Rate
Spread $37,877 3.39%
======== ===========
Net Interest Margin 3.49%
===========
Three Months Ended Sept. 30,
--------------------------------
2003
--------------------------------
Average Interest Average
Balance Yield/Cost
----------- -------- -----------
(Dollars in thousand)
Interest-Earning Assets:
Total Loans(1) $780,855 $11,425 5.85%
Securities(2) 478,124 5,273 4.41
FHLB Stock 32,749 345 4.21
Cash and Cash Equivalents(3) 7,970 17 0.85
----------- --------
Total Interest-Earning Assets 1,299,698 17,060 5.25
Noninterest-Earning Assets 55,570
-----------
Total Assets $1,355,268
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $300,680 1,569 2.07
Certificates of Deposits 244,216 1,107 1.80
----------- --------
Total Deposits 544,896 2,676 1.95
Repurchase Agreements/Fed Funds
Purchased 26,911 76 1.12
FHLB Advances 623,385 2,941 1.87
Warehouse Line of Credit 22,421 121 2.14
Trust Preferred Securities/Junior
Subordinated Debt 35,500 438 4.89
----------- --------
Total Interest-Bearing Liabilities 1,253,113 6,252 1.98
--------
Noninterest-Bearing Deposits 8,756
Other Noninterest-Bearing Liabilities 3,527
-----------
Total Liabilities 1,265,396
Stockholders' Equity 89,872
-----------
Total Liabilities and Stockholders'
Equity $1,355,268
===========
Net Interest-Earning Assets $46,585
===========
Net Interest Income/Interest Rate
Spread $10,808 3.27%
======== ===========
Net Interest Margin 3.33%
===========
----------------------------------------------------------------------
(1) The average balance of loans receivable includes loans for sale
and is presented without reduction for the allowance for loan
losses.
(2) 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.
(3) Consists of cash in interest-earning accounts and federal funds
sold.
(4) 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
Nine Months Ended Sept. 30,
--------------------------------
2004
--------------------------------
Average Interest Average
Balance Yield/Cost
----------- -------- -----------
(Dollars in thousand)
Interest-Earning Assets:
Total Loans(1) $2,284,326 $92,464 5.40%
Securities(2) 552,685 17,773 4.29
FHLB Stock 63,203 1,951 4.12
Cash and Cash Equivalents(3) 5,979 55 1.23
----------- --------
Total Interest-Earning Assets 2,906,193 112,243 5.15
Noninterest-Earning Assets 241,273
-----------
Total Assets $3,147,466
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $729,263 9,330 1.71
Certificates of Deposits 659,634 7,633 1.55
----------- --------
Total Deposits 1,388,897 16,963 1.63
Repurchase Agreements/Fed Funds
Purchased 35,356 297 1.12
FHLB Advances 1,222,213 17,106 1.87
Warehouse Line of Credit 5,462 88 2.15
Trust Preferred Securities/Junior
Subordinated Debt 91,359 3,235 4.73
----------- --------
Total Interest-Bearing Liabilities 2,743,287 37,689 1.84
--------
Noninterest-Bearing Deposits 62,837
Other Noninterest-Bearing Liabilities 22,095
-----------
Total Liabilities 2,828,219
Stockholders' Equity 319,247
-----------
Total Liabilities and Stockholders'
Equity $3,147,466
===========
Net Interest-Earning Assets $162,906
===========
Net Interest Income/Interest Rate
Spread $74,554 3.31%
======== ===========
Net Interest Margin 3.42%
===========
Nine Months Ended Sept. 30,
--------------------------------
2003
--------------------------------
Average Interest Average
Balance Yield/Cost
----------- -------- -----------
Interest-Earning Assets:
Total Loans(1) $674,318 $30,285 5.99%
Securities(2) 448,365 15,570 4.63
FHLB Stock 25,415 858 4.50
Cash and Cash Equivalents(3) 4,676 36 1.03
----------- --------
Total Interest-Earning Assets 1,152,774 46,749 5.41
Noninterest-Earning Assets 51,128
-----------
Total Assets $1,203,902
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $254,133 4,281 2.25
Certificates of Deposits 194,622 2,938 2.02
----------- --------
Total Deposits 448,755 7,219 2.15
Repurchase Agreements/Fed Funds
Purchased 95,153 929 1.31
FHLB Advances 481,973 7,613 2.11
Warehouse Line of Credit 40,767 775 2.54
Trust Preferred Securities/Junior
Subordinated Debt 35,167 1,342 5.10
----------- --------
Total Interest-Bearing Liabilities 1,101,815 17,878 2.17
--------
Noninterest-Bearing Deposits 7,916
Other Noninterest-Bearing Liabilities 7,203
-----------
Total Liabilities 1,116,934
Stockholders' Equity 86,968
-----------
Total Liabilities and Stockholders'
Equity $1,203,902
===========
Net Interest-Earning Assets $50,959
===========
Net Interest Income/Interest Rate
Spread $28,871 3.24%
======== ===========
Net Interest Margin 3.34%
===========
----------------------------------------------------------------------
(1) The average balance of loans receivable includes loans for sale
and is presented without reduction for the allowance for loan
losses.
(2) 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.
(3) Consists of cash in interest-earning accounts and federal funds
sold.
(4) 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 is a reconciliation of the Company's GAAP net income
compared to Non-GAAP net income excluding merger-related expenses:
Three Months Ended
Sept. 30, 2004
-------------------------
Net Income $18,004
Excluding Non-recurring Items:
Merger-Related Expenses 494
Tax Effect at 42% (207)
-------------------------
Net Income Excluding Non-recurring Items $18,291
Weighted Average Shares Outstanding - Diluted 56,824,595
Non-GAAP Earnings Per Share - Diluted $0.32
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:
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%
2Q 2004 As Reported Excluding
Premium/Discount
Effect
--------------------------------- -------------------
Average Interest Avg. Average Interest
Balance Yield/Cost Balance
----------- --------- ----------- --------- ---------
Total Interest-
Earning Assets $2,604,424 $33,626 5.16% $4,304 $(832)
Total Interest-
Bearing
Liabilities 2,470,861 10,751 1.75% (2,535) 394
--------- ---------
Net Interest
Income/Interest
Rate Spread $22,875 3.41% $(1,226)
Net Interest
Margin 3.51%
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%
2Q 2004 Adjusted
----------------------------------
Average Interest Avg.
Balance Yield/Cost
----------- --------- ------------
Total Interest-Earning Assets $2,608,728 $32,794 5.03%
Total Interest-Bearing Liabilities 2,468,326 11,145 1.82%
---------
Net Interest Income/Interest Rate
Spread $21,649 3.21%
Net Interest Margin 3.32%
The following tables provide a reconciliation of the Company's
reported efficiency ratio and the ratio of general and administrative
expenses to average assets compared to adjusted efficiency ratio and
ratio of general and administrative expenses to average assets
excluding merger costs.
3Q 2004 As Excluding 3Q 2004
Reported Merger Adjusted
Costs
------------ --------- -----------
Total G&A Expenses $12,694 $(494) $12,200
Net Interest Income $37,877 $37,877
Noninterest Income 3,615 3,615
----------- -----------
$41,492 $41,492
Efficiency Ratio 30.59% 29.40%
Average Assets $4,814,670 $4,814,670
Annualized G&A Expenses As a
Percentage of Average Assets 1.05% 1.01%
Nine Months Excluding Nine Months
Ended Merger Ended
September Costs September
30, 2004 As 30, 2004
Reported Adjusted
------------ --------- -----------
Total G&A Expenses $23,279 $(914) $22,365
Net Interest Income $74,554 $74,554
Noninterest Income 8,397 8,397
----------- -----------
$82,951 $82,951
Efficiency Ratio 28.06% 26.96%
Average Assets $3,147,466 $3,147,466
Annualized G&A Expenses As a
Percentage of Average Assets 0.99% 0.95%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion