Commercial Capital Bancorp, Inc. Announces Third Quarter Earnings of $0.29 Per Share on Net Income of $16.8 Million and Non-GAAP Earnings of $0.32 Per Share on Net Income of $18.5 Million, Excluding Costs Related to New Commercial Banking Division.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) ): --Net Interest Margin Increases Three Basis Points to 3.31% from Second Quarter 2005 --Net Interest Margin, Excluding Purchase Accounting Adjustments, Increases Five Basis Points to 3.22% from Second Quarter 2005 --Company Deposits Increase $63 million from Second Quarter 2005 --Bank Deposits Increase $52 million from Second Quarter 2005 --Average Exchange Balances of $701 Million for Third Quarter 2005 --Previously Announced Low-Rate Single Family Loan Portfolio Sales Substantially Completed --Loan Portfolio and Balance Sheet Growth Anticipated to Increase Beginning Fourth Quarter --Company Approves Cash Dividend of $0.075 per Share Commercial Capital Bancorp, Inc. (the "Company"), (NASDAQ:CCBI), the holding company for Commercial Capital Bank (the "Bank"), TIMCOR Exchange Corporation ("TIMCOR") and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Exchange Company ("NAEC See Novell certification. "), announced today net income of $16.8 million, or $0.29 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 2005, a decrease of 6% and 9%, respectively, from $18.0 million and $0.32 per diluted share, for the third quarter of 2004. Excluding the $2.9 million of direct costs associated with the Bank's new Commercial Banking Division, as discussed below, the Company's non-GAAP net income totaled $18.5 million, or $0.32 per diluted share, for the third quarter of 2005(1). The Company's net interest margin expanded three basis points to 3.31% for the third quarter of 2005, from 3.28% for the second quarter of 2005. Excluding the purchase accounting adjustments from the 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") acquisition, the Company's net interest margin expanded five basis points to 3.22% for the third quarter of 2005, from 3.17% for the second quarter of 2005. Additionally, the Company announced today that it has 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: a cash dividend of $0.075 per share to be paid on December December: see month. 1, 2005 to shareholders of record on November November: see month. 17, 2005. The Company's net income for the nine months ended September September: see month. 30, 2005 totaled $59.2 million, or $1.03 per diluted share, increases of 64% and 23%, respectively, from $36.0 million and $0.84 per diluted share, for the nine months ended September 30, 2004. 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 2005 were 9.89% and 1.30%, respectively, compared to 12.02% and 1.50% for the third quarter of 2004, respectively. The Company's 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 and 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. for the third quarter of 2005 were 23.93% and 1.41%, respectively, compared to 30.55% and 1.62% for the third quarter of 2004, respectively. The Company's ROAE and ROAA for the nine months ended September 30, 2005 were 11.93% and 1.52%, respectively, compared to 15.05% and 1.53% for the nine months ended September 30, 2004, respectively. The Company's return on average tangible equity and return on average tangible assets were 28.75% and 1.64%, respectively, for the nine months ended September 30, 2005, compared to 30.95% and 1.61%, for the nine months ended September 30, 2004, respectively. The Company's financial results include the effects of the acquisition of Hawthorne, which closed on June June: see month. 4, 2004. The financial data for periods prior to February February: see month. 17, 2005 do not include the impact of the TIMCOR acquisition. The financial data for periods prior to May 24, 2005 do not include the impact of the NAEC 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, "This quarter included the expenses related to the investment made in establishing the Company's previously announced Commercial Banking Division, which is now operational and gaining traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. ; the effect of the previously announced balance sheet-driven, 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. strategies; and the impact of its two 1031 exchange companies. We are pleased with our third quarter's non-GAAP results of $0.32 per diluted share, totaling $18.5 million, which exclude the expenses associated with the Commercial Banking Division. With the previously announced sales of lower-rate, held for sale single family loans largely behind us, combined with a strong adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. pipeline, increased deposit balances, an expanded net interest margin, strong local markets, and strong asset quality, we feel that the Company is well positioned as we head towards 2006." Gordon added, "While not straying stray intr.v. strayed, stray·ing, strays 1. a. To move away from a group, deviate from the correct course, or go beyond established limits. b. To become lost. 2. from the Company's disciplined approach to asset quality, we believe that by maintaining a keen eye on liability management and building a strong and diverse core deposit franchise in multiple markets and economies across the state, we will further enhance shareholder value."
($ in 000's, Year to Year to
except per Q3 Q2 Q3 Date Date
share data) 2005 2005 2004 9/30/2005 9/30/2004
-------- -------- -------- ---------- ----------
Net income $ 16,836 $ 19,325 $ 18,004 $ 59,248 $ 36,029
Basic EPS 0.30 0.35 0.34 1.08 0.90
Diluted EPS 0.29 0.34 0.32 1.03 0.84
Net interest
income 38,265 38,925 37,877 115,525 74,554
Net interest
margin 3.31% 3.28% 3.49% 3.29% 3.42%
Total revenues $ 73,298 $ 71,576 $ 60,602 $ 210,864 $ 120,640
ROAA 1.30% 1.47% 1.50% 1.52% 1.53%
ROAA -- Tangible 1.41 1.59 1.62 1.64 1.61
ROAE 9.89 11.62 12.02 11.93 15.05
ROAE -- Tangible 23.93 28.11 30.55 28.75 30.95
Efficiency ratio 43.47 33.32 30.59 35.77 28.06
Core Loan
Fundings(2) $570,196 $599,303 $544,953 $1,764,628 $1,193,972
Total Loan
Fundings(3) 609,894 624,715 583,184 1,842,433 1,309,246
Some of the Company's and Bank's third quarter 2005 highlights and achievements include: --The Company's net interest margin increased three basis points to 3.31% for the third quarter of 2005, compared to 3.28% for the second quarter of 2005 and decreased 18 basis points compared to 3.49% for the third quarter of 2004. The Company's net interest margin, excluding the purchase accounting adjustments from the Hawthorne acquisition, increased five basis points to 3.22% for the third quarter of 2005, compared to 3.17% for the second quarter of 2005 and decreased one basis point compared to 3.23% for the third quarter of 2004. The Company's net interest spread increased four basis points to 3.16% for the third quarter of 2005, compared to 3.12% for the second quarter of 2005 and decreased 23 basis points compared to 3.39% for the third quarter of 2004. The Company's yield on interest-earning assets increased 24 basis points to 5.70% for the third quarter of 2005 compared to the second quarter of 2005, while 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. increased 19 basis points to 2.46%. --The Company's total loan fundings, which includes loans originated and purchased, were $609.9 million during the third quarter of 2005, a decrease of 2% and an increase of 5%, respectively, compared to $624.7 million and $583.2 million for the second quarter of 2005 and third quarter of 2004, respectively. The Company's core loan fundings were $570.2 million during the third quarter of 2005, a decrease of 5% and an increase of 5%, respectively, compared to $599.3 million and $545.0 million for the second quarter of 2005 and third quarter of 2004, respectively. --The Company entered the fourth quarter of 2005 with a total loan pipeline of $487 million at September 30, 2005, a decrease of 10% from $542 million at June 30, 2005. The Company entered the fourth quarter of 2005 with a core loan pipeline of $478 million at September 30, 2005, a decrease of 7% from $514 million at June 30, 2005. --The Company's multi-family loan portfolio grew during the third quarter of 2005 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 13% to $2.9 billion at September 30, 2005, and now represents 74% of total loans held for investment. The Company's commercial real estate loan portfolio grew during the third quarter of 2005 at an annualized rate of 13% to $534.6 million at September 30, 2005, from $518.1 million at June 30, 2005, and now represents 14% of total loans held for investment. During the third quarter of 2005, the Company's single family loans held for investment portfolio increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $50 million, which was primarily a result of a transfer of certain loans from the held for sale portfolio, as management now intends to hold these loans for investment. --During the third quarter of 2005, the Company completed the sale of $160.5 million of loans, which included $145.9 million of single family loans that were either classified as held for sale at June 30, 2005 or funded and designated as held for sale during the quarter. At September 30, 2005, the Company's loans held for sale had declined to $165.8 million, which reflects loan sales, the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. to held for investment as discussed above, as well as the loan fundings and payoff activity that occurred during the third quarter of 2005. --The Company's allowance for loan losses was 0.73% of net loans held for investment at September 30, 2005, compared to 0.76% at June 30, 2005, and 0.94% at September 30, 2004. 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. declined to $8.9 million, or 0.17% of total assets at September 30, 2005, compared to $12.1 million, or 0.23% of total assets at June 30, 2005. At September 30, 2005, the allowance for loan losses totaled 321% of nonaccrual loans, compared to 237% and 723% at June 30, 2005 and September 30, 2004, respectively. --The Company's total revenues, defined as interest income plus noninterest income, equaled $73.3 million for the third quarter of 2005, an increase of 2% and 21% from $71.6 million and $60.6 million for the second quarter of 2005 and third quarter of 2004, respectively. --In July July: see month. 2005, the Company announced the expansion of its existing 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 efforts with the formation of the Commercial Banking Division within the Bank, which focuses on the business banking, treasury and cash management and other depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. products and services needs of financial services companies such as title and escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. companies, 1031 exchange accommodators, homeowners associations, property management companies, non-real estate escrows and other fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. and corporate financial services companies.--At September 30, 2005, the Company had repurchased a total of 1,868,100 shares of its common stock at an average price of $19.27 per share in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with its authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. 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. plans, of which 72,000 shares were repurchased during the third quarter of 2005 at an average price of $18.50 per share. On October October: see month. 12, 2005, the Company announced that its Board of Directors authorized an additional repurchase program, providing for the repurchase of up to $20 million of the Company's outstanding shares of common stock. The program will take effect upon completion of the Company's current stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, which was authorized in January January: see month. 2005. At September 30, 2005, the Company has remaining authorization The right or permission to use a system resource; the process of granting access. See access control. to repurchase 532,463 shares under its January 2005 approved program approved program Grad education An education program which is approved by a overseeing body–eg, a licensing or professional board or governmental agency . RECENT DEVELOPMENTS On October 20, 2005, the Company announced that it had entered into a definitive agreement to acquire Calnet Business Bank, National Association. The all stock transaction is valued at approximately $40 million and is expected to close in the first quarter of 2006. At June 30, 2005, Calnet had total assets of $147.5 million, total deposits of $124.9 million, total loans of $98.3 million and total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $21.5 million. Calnet conducts its Greater Sacramento Valley The Sacramento Valley is the portion of the California Central Valley that lies to the north of the San Joaquin-Sacramento Delta in the U.S. state of California. It encompasses all or parts of ten counties. deposit gathering and lending business from a single location in Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. . Calnet's lending programs focus on commercial real estate, construction and business loans within the Greater Sacramento Valley of 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). . Calnet's loans to deposits ratio, expressed as a percentage, was 79%, at June 30, 2005. For the second quarter ended June 30, 2005, noninterest-bearing deposits averaged $53.4 million or 42% of average deposits, while interest bearing deposits averaged $74.8 million and had an average cost of 1.93%. Also during the second quarter of 2005, Calnet's cost of funds, which includes noninterest-bearing deposits, was 1.13%, and its net interest margin was 4.96%. As reported by Calnet, since July 2005, Calnet has operated in compliance with a formal agreement with the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. with respect to matters relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its internal controls. The Company, as part of its overall due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , reviewed the 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. criticisms and Calnet management's corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or . The closing of the Calnet acquisition by the Company is subject to approval by Calnet shareholders and the Office of Thrift Supervision The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. , the Company's regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. . NET INTEREST INCOME The Company's net interest income increased 1% and 55% to $38.3 million and $115.5 million for the third quarter and nine months ended September 30, 2005, respectively, from $37.9 million and $74.6 million for the third quarter and nine months ended September 30, 2004, respectively. The Company's yield on interest-earning assets increased 24 basis points to 5.70% for the third quarter of 2005, compared to 5.46% for the second quarter of 2005 and increased 45 basis points compared to 5.25% for the third quarter of 2004. The Company's yield on total loans increased 27 basis points to 5.88% for the third quarter of 2005 compared to 5.61% for the second quarter of 2005 and increased 47 basis points 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 20 basis points to 2.54% for the third quarter of 2005, compared to 2.34% for the second quarter of 2005 and increased 68 basis points compared to 1.86% for the third quarter of 2004. The Company's cost of interest-bearing deposits increased 36 basis points to 2.64% for the third quarter of 2005, compared to 2.28% for the second quarter of 2005 and increased 107 basis points compared to 1.57% for the third quarter of 2004. The Company's cost of funds, including the effect of noninterest-bearing deposits, increased 19 basis points to 2.46% for the third quarter of 2005, compared to 2.27% for the second quarter of 2005 and increased 64 basis points compared to 1.82% for the third quarter of 2004. NONINTEREST INCOME Noninterest income increased 106% and 115% to $7.4 million and $18.1 million for the third quarter and nine months ended September 30, 2005, respectively, from $3.6 million and $8.4 million for the third quarter and nine months ended September 30, 2004, respectively. Fee income from 1031 exchange transactions totaled $1.6 million and $3.3 million for the third quarter and nine months ended September 30, 2005, respectively. During the third quarter of 2005, the Company substantially completed the previously announced 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: of the composition of its loan portfolio by selling $145.9 million of single family residential loans, which contributed to gains on sale of loans of $1.5 million and $4.9 million for the third quarter and nine months ended September 30, 2005, respectively, compared to $72,000 and $214,000 for the third quarter and nine months ended September 30, 2004, respectively. During the third quarter of 2005, the Company recorded $1.0 million of noninterest income related to the release of a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. reserve held for a matter in which the Company received a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ruling from an appeals court. NONINTEREST EXPENSES The Company's general and administrative expenses totaled $19.9 million and $47.8 million for the third quarter and nine months ended September 30, 2005, respectively, compared to $12.7 million and $23.3 million for the third quarter and nine months ended September 30, 2004, respectively. The third quarter of 2005 includes approximately $2.9 million of direct expenses related to the Commercial Banking Division. This included approximately $1.2 million of salaries and benefits and additional non-cash stock compensation expense, directly attributed to the Commercial Banking Division. In addition, the Company recorded $1.7 million of professional and legal costs associated with the start up of this division, as well as with the Company's defense in the previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). related litigation. The acquisitions of TIMCOR in February 2005 and NAEC in May 2005 also contributed to the increase in general and administrative expenses in the third quarter of 2005 compared to the third quarter of 2004. The Company's efficiency ratio was 43.47% and 35.77% for the third quarter and nine months ended September 30, 2005, respectively, compared to 30.59% and 28.06% for the third quarter and nine months ended September 30, 2004, respectively. Excluding the costs associated with the Commercial Banking Division, the Company's efficiency ratio would have been 37.04%, for the third quarter ended September 30, 2005. General and administrative expenses were 1.53% and 1.22% of average assets for the third quarter and nine months ended September 30, 2005, respectively, compared to 1.05% and 0.99% for the third quarter and nine months ended September 30, 2004, respectively. Excluding the costs associated with the Commercial Banking Division, general and administrative expenses were 1.30% of average assets for the third quarter ended September 30, 2005. INCOME TAXES The Company's effective tax rate was 34.42% and 36.59% for the third quarter and nine months ended September 30, 2005, respectively, compared to 37.04% and 38.10% for the third quarter and nine months ended September 30, 2004, respectively. The reduction of the Company's effective tax rate during the periods ended September 30, 2005 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 larger amounts of low income housing and other tax credits, the 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 additional tax credits to be received before the end of 2005, 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's 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 increased to $5.24 billion at September 30, 2005, compared to $5.18 billion and $4.97 billion at June 30, 2005 and September 30, 2004, respectively. Total loans, which include loans held for investment, net of allowances, and loans held for sale, totaled $4.07 billion, compared to $4.05 billion and $3.88 billion at June 30, 2005 and September 30, 2004, respectively. At September 30, 2005, multi-family loans held for investment totaled $2.90 billion, representing 74% of total loans held for investment, an increase of 3% and 30% from $2.81 billion at June 30, 2005, and $2.24 billion at September 30, 2004, respectively. At September 30, 2004, multi-family loans represented 57% of total loans held for investment. At September 30, 2005, the Company's commercial real estate loan portfolio totaled $534.6 million, representing 14% of total loans held for investment, an increase of 3% and 23% from $518.1 million at June 30, 2005, and $435.1 million at September 30, 2004, respectively. At September 30, 2004, commercial real estate loans represented 11% of total loans held for investment. At September 30, 2005, 58% of the Company's total loan portfolio matures or is tied to an index that adjusts within one month, virtually unchanged from June 30, 2005. In addition, 69% of the Company's total loan portfolio matures or has an interest rate scheduled to reset within six months from September 30, 2005 and 72% matures or resets within one year from September 30, 2005, both virtually unchanged from June 30, 2005. The Company's total loan portfolio had a weighted average duration to maturity or reset of 11.6 months at September 30, 2005, compared to 11.8 months at June 30, 2005. The Company's securities portfolio totaled $408.3 million at September 30, 2005, a decrease of 8% and 16% from $444.5 million and $486.2 million at June 30, 2005 and September 30, 2004, respectively. Mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. were 8% of total assets at September 30, 2005. The Bank's deposits totaled $2.76 billion at September 30, 2005, an increase of 2% and 19% from $2.70 billion and $2.32 billion at June 30, 2005 and September 30, 2004, respectively. The Bank's transaction account deposits totaled $1.70 billion at September 30, 2005, an increase of 3% and 41% from $1.65 billion and $1.20 billion at June 30, 2005 and September 30, 2004, respectively. The exchange balances of TIMCOR and NAEC are classified as borrowings on the consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , and included as transaction account deposits on the Bank's balance sheet. The Company had average exchange balances of $700.8 million for the third quarter of 2005, an increase of 30% from $539.2 million for the second quarter of 2005, the increase reflects the impact of the first full quarter since the acquisition of NAEC. The Company's consolidated deposits totaled $2.10 billion at September 30, 2005, compared to $2.03 billion and $2.30 billion at June 30, 2005 and September 30, 2004, respectively. The Company's consolidated transaction account deposits totaled $1.04 billion at September 30, 2005, compared to $977.3 million and $1.19 billion at June 30, 2005 and September 30, 2004, respectively. The Company's time deposits totaled $1.06 billion at September 30, 2005, and June 30, 2005 compared to $1.11 billion at September 30, 2004. Borrowings totaled $2.41 billion at September 30, 2005, compared to $2.42 billion and $2.02 billion at June 30, 2005 and September 30, 2004, respectively. FHLB FHLB Federal Home Loan Bank advances totaled $1.51 billion at September 30, 2005, compared to $1.52 billion and $1.83 billion at June 30, 2005 and September 30, 2004, respectively. At September 30, 2005, 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 $150.1 million, compared to $150.3 million at June 30, 2005, and $135.2 million at September 30, 2004. 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 $680.7 million at September 30, 2005, an increase of 2% and 12% from $668.5 million and $608.7 million at June 30, 2005, and September 30, 2004, respectively. Tangible stockholders' equity totaled $281.2 million, an increase of 5% and 15% from $268.8 million and $245.2 million at June 30, 2005, and September 30, 2004, respectively. The Company's equity to assets and tangible equity to assets ratios were 13.00% and 5.37% at September 30, 2005, respectively, compared to 12.90% and 5.19% at June 30, 2005, respectively, and compared to 12.26% and 4.94% at September 30, 2004, respectively. The Company's tangible equity to tangible assets ratio was 5.82% at September 30, 2005, compared to 5.62% and 5.33% at June 30, 2005 and September 30, 2004, respectively. Book value per share totaled $12.23 at September 30, 2005, an increase of 1% and 9% from $12.07 and $11.20 at June 30, 2005, and September 30, 2004, respectively. Tangible book value per share totaled $5.05 at September 30, 2005, an increase of 4% and 12% from $4.85 and $4.51 at June 30, 2005, and September 30, 2004, respectively. The capital ratios of the 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 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 8.91%, 11.93% and 12.73% at September 30, 2005, respectively. LOAN FUNDINGS The Company's total loan fundings, which includes loans originated and purchased, were $609.9 million during the third quarter of 2005, a decrease of 2% and an increase of 5% from $624.7 million and $583.2 million, for the second quarter of 2005 and third quarter of 2004, respectively. The Company's core loan fundings were $570.2 million during the third quarter of 2005, a decrease of 5% and an increase of 5% from $599.3 million and $545.0 million, for the second quarter of 2005 and third quarter of 2004, respectively. The Company purchased $10 million of adjustable rate income property loans and construction loans during the third quarter of 2005. The Company's total loan fundings increased 41% to $1.84 billion during the nine months ended September 30, 2005, from $1.31 billion for the nine months ended September 30, 2004. The Company's core loan fundings increased 48% to $1.76 billion during the nine months ended September 30, 2005, from $1.19 billion for the nine months ended September 30, 2004. The Company's core loan fundings for the three months ended September 30, 2005 consisted of $298.6 million of multi-family real estate loans, $54.3 million of commercial real estate loans, $96.6 million of single family residential real estate loans, $112.2 million of construction and land loans, and $8.5 million of business and other loans. Of the Company's $570.2 million of core loan fundings during the third quarter of 2005, 98% of loans held for investment were adjustable rate loans, of which 72% reprice within one year. The value of loans in the Company's total loan pipeline was $487 million at September 30, 2005, a decrease of 10% and an increase of 38% compared to $542 million and $353 million at June 30, 2005 and September 30, 2004, respectively. The value of loans in the Company's core loan pipeline was $478 million at September 30, 2005, a decrease of 7% and an increase of 48% compared to $514 million and $322 million at June 30, 2005 and September 30, 2004, respectively. PORTFOLIO ASSET QUALITY Nonperforming assets totaled $8.9 million at September 30, 2005, a decrease of $3.2 million from the $12.1 million balance at June 30, 2005. The decrease in nonperforming assets is due to the removal of one construction loan offset by the addition of one defaulted single family residential loan during the third quarter of 2005. The single family residential loan was originated by Hawthorne and acquired through the Company's acquisition of Hawthorne. This loan is considered impaired See assistive technology. from a timeliness of repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan perspective. However, based on management's analysis, no specific reserve is warranted as of September 30, 2005 as there is sufficient 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 to secure the loan principal balance. 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. The Company's review of its allowance for loan losses at September 30, 2005 indicated that a provision for loan losses for the third quarter of 2005 was not required and that the allowance for loan losses is adequate to cover potential losses inherent in the loan portfolio. At September 30, 2005, the Company had total assets of $5.24 billion and the Bank had total deposits of $2.76 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 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. 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 StatesBaldwin. 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. 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. (Riverside County), La Jolla La Jolla (lə hoi`yə), on the Pacific Ocean, S Calif., an uninc. district within the confines of San Diego; founded 1869. The beautiful ocean beaches, in particular La Jolla shores and Black's Beach, and sea-washed caves attract visitors and , Del Mar Del Mar is the name of several places in the United States of America:
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. , Los Angeles, El Segundo El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Irvine, Riverside, and La Jolla, California, with plans to open a banking office in the Crystal Cove Promenade promenade Public place where people walk (or, in the past, rode) at leisure for pleasure, exercise, or display. Promenades are pedestrian avenues pleasingly landscaped or commanding a view, often located along waterfronts and in parks. Vehicular traffic may or may not be restricted. 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 2005. The Bank was the 3rd largest multi-family 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. in California during the 12 months ended June 30, 2005 (source: Dataquick Information Systems). The Company is a leading Section 1031-exchange accommodator and facilitates exchange transactions nationwide through the TIMCOR and North American Exchange Company brand names through the companies' headquarters in Los Angeles and Walnut Creek, California Walnut Creek is a largely affluent suburb several miles east of Oakland in Contra Costa County, California, USA, in the East Bay region of the San Francisco Bay Area. While not as large as the neighboring Concord, Walnut Creek serves as the business and entertainment hub for the , respectfully re·spect·ful adj. Showing or marked by proper respect. re·spect  ful·ly adv. , offices located in Long Beach and La Jolla,
California; Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " ; Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation).Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the ; Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. ; and Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. ; and through a presence in Seattle, Washington  This page is protected from moves until disputes have been resolved on the .The reason for its protection is listed on the protection policy page. ; Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). ; Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. ; Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ; Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. ; and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC. CONFERENCE CALL AND WEBCAST INFORMATION Analysts and investors may listen to a discussion of the third quarter of 2005 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, October 24, 2005 Time: 7:00 a.m. PDT (10:00 a.m. EDT) Phone Number (866) 203-3436 International Dial-in Number (617) 213-8849 Access Code: 84532368 Webcast Date: Monday, October 24, 2005 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 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 46490116. The webcast archive and call replay will be available until November 5, 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; changes in the securities markets and, with respect to the Company's pending acquisition of Calnet Business Bank, governmental approvals of the merger; the stockholders of Calnet may fail to provide the required approval to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the merger. 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. This press release may be deemed to be solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual material with respect to the proposed acquisition of Calnet and the issuance of shares of common stock by the Company pursuant to the merger. In connection with the proposed transaction, a registration statement on Form S-4 will be filed with the SEC. The registration statement will contain a proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus to be distributed to the shareholders of Calnet in connection with their vote on the merger. SHAREHOLDERS OF CALNET ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS THAT WILL BE PART OF THE REGISTRATION STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. The final proxy statement/prospectus will be mailed to shareholders of Calnet. Investors and security holders will be able to obtain the documents free of charge at the SEC's website, www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, investors may obtain free copies of the documents filed with the SEC by the Company by contacting: Investor Relations Investor relations The process by which the corporation communicates with its investors. , Commercial Capital Bancorp, Inc., 8105 Irvine Center Drive, 15th Floor Irvine, CA 92618, telephone: 949-585-7500 or by visiting the Company's website at www.commercialcapital.com, or from Calnet by contacting Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) R. Watson, Chief Financial Officer, Calnet Business Bank, 1565 Exposition exposition or exhibition, term frequently applied to an organized public fair or display of industrial and artistic productions, designed usually to promote trade and to reflect cultural progress. Blvd Blvd abbr (= boulevard) → Bd ., Sacramento, CA 95815, telephone: 916-927-7000 or by visiting Calnet's website at www.Calnetbank.com. Calnet and their directors and executive officers and other members of management and employees may be deemed to participate in the solicitation of proxies in respect of the proposed transactions. Information regarding Calnet's directors and executive officers is set forth in its proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. , which is available by contacting Calnet at the telephone number set forth above.
(1) Reconciliations of non-GAAP measures to GAAP results are included
at the end of this release.
(2) The Company defines core loan fundings to exclude those loans
funded through its strategic alliance with Greystone Servicing
Corporation, a Fannie Mae DUS lender, and the Company's other broker
and conduit channels.
(3) The Company defines total loan fundings to include loans that are
originated or purchased by the Company during the period.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, except per share data)
Sept. 30, Sept. 30,
2005 2004
----------------------------------------------------------------------
ASSETS
-----------------------------------------------
Cash and Cash Equivalents $ 69,112 $ 20,445
Securities
MBS -- Available For Sale 408,338 486,120
Other Investments -- Available For Sale - 100
-----------------------
Total Securities 408,338 486,220
FHLB Stock 84,314 86,147
Loans Held for Investment
Single Family 246,400 957,825
Multi-family 2,897,778 2,235,427
Commercial Real Estate 534,599 435,075
Construction 186,583 213,656
Land 48,414 55,786
-----------------------
Total Real Estate Loans 3,913,774 3,897,769
Business and Other Loans 18,085 13,399
-----------------------
Total Loans Held for Investment 3,931,859 3,911,168
Net Deferred Fees, Premiums and
Discounts 319 (11,740)
Allowance for Loan Losses (28,723) (36,846)
-----------------------
Total Loans Held for Investment, Net 3,903,455 3,862,582
Loans Held for Sale 165,760 17,620
-----------------------
Total Loans 4,069,215 3,880,202
Fixed Assets -- Net 16,624 9,989
Foreclosed Assets - -
Accrued Interest Receivable 19,652 16,819
Goodwill 394,080 357,367
Core Deposit Intangible 5,414 6,105
Bank-Owned Life Insurance 93,290 46,270
Affordable Housing Investments 33,956 17,261
Other Assets 41,664 39,951
----------------------------------------------------------------------
TOTAL ASSETS $5,235,659 $4,966,776
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
-----------------------------------------------
Deposits
Demand Deposits -- Noninterest-Bearing $ 140,185 $ 92,950
Demand Deposits -- Interest-Bearing 74,063 80,267
Money Market Checking 212,637 419,760
Money Market Savings 438,313 298,165
Savings 173,481 293,905
-----------------------
Total Transaction Deposits 1,038,679 1,185,047
Retail Time Deposits 1,001,281 1,040,634
Broker Time Deposits 55,845 72,961
-----------------------
Total Time Deposits 1,057,126 1,113,595
-----------------------
Total Deposits 2,095,805 2,298,642
Borrowings
FHLB Advances 1,510,917 1,831,798
Exchange Balances 679,526 -
Junior Subordinated Debentures 150,107 135,225
Other Borrowings 69,000 57,000
-----------------------
Total Borrowings 2,409,550 2,024,023
Other Liabilities 49,578 35,403
----------------------------------------------------------------------
TOTAL LIABILITIES 4,554,933 4,358,068
STOCKHOLDERS' EQUITY 680,726 608,708
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,235,659 $4,966,776
======================================================================
Operating Data
Performance Ratios and Other Data: Sept. 30, Sept. 30,
2005 2004
-----------------------
Equity to assets at end of period 13.00% 12.26%
Tangible equity to assets at end of period 5.37 4.94
Tangible equity to tangible assets at end of
period 5.82 5.33
Nonperforming assets $ 8,935 $ 5,095
Nonperforming assets to total assets 0.17% 0.10%
Allowance for loan losses to loans held for
investment at end of period 0.73 0.94
Allowance for loan losses to nonaccrual loans 321 723
Per Share Data
Common shares outstanding at end of period 55,640,363 54,361,762
Book value per share $ 12.23 $ 11.20
Tangible book value per share 5.05 4.51
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, except per share data) THREE MONTHS ENDED
Sept. 30, Sept. 30,
2005 2004
----------------------------------------------------------------------
Interest Income
Loans $ 60,148 $ 50,777
Securities 4,698 5,301
FHLB Stock 935 891
Fed Funds and Other 83 18
-----------------------
Total Interest Income 65,864 56,987
Interest Expense
Deposits 12,852 9,060
FHLB Advances 10,139 8,345
Exchange Balances 1,552 -
Junior Subordinated Debentures 2,481 1,611
Other Borrowings 575 94
-----------------------
Total Interest Expense 27,599 19,110
-----------------------
Net Interest Income 38,265 37,877
Recapture of Allowance for Loan Losses - -
-----------------------
Net Interest Income after Recapture of
Allowance for Loan Losses 38,265 37,877
Noninterest Income
Loan Related Fees 1,380 2,217
Retail Banking Fees 558 588
Mortgage Banking Fees 136 137
1031 Exchange Fees 1,620 -
Gain on Sale of Loans 1,494 72
Gain on Sale of Securities - -
Other Income 2,246 601
-----------------------
Total Noninterest Income 7,434 3,615
Noninterest Expenses
Compensation and Benefits 9,251 6,148
Non-Cash Stock Compensation 865 29
Occupancy and Equipment 2,219 2,131
Marketing 393 421
Technology 746 496
Professional and Consulting 2,482 370
Insurance Premiums and Assessment Costs 602 582
Merger-Related - 494
Provision for Unfunded Commitments 56 -
Other Expenses 3,251 2,023
-----------------------
Total G&A Expenses 19,865 12,694
Early Extinguishment of Debt - -
Amortization of Core Deposit Intangible 163 203
-----------------------
Total Noninterest Expenses 20,028 12,897
-----------------------
Income Before Taxes 25,671 28,595
Income Tax Expense 8,835 10,591
-----------------------
Net Income $ 16,836 $ 18,004
=======================
Operating Data THREE MONTHS ENDED
Performance Ratios and Other Data: Sept. 30, Sept. 30,
2005 2004
-----------------------
Earnings per share -- Basic $ 0.30 $ 0.34
Earnings per share -- Diluted 0.29 0.32
Weighted average shares outstanding -- Basic 55,244,376 53,625,568
Weighted average shares outstanding -- Diluted 57,565,159 56,824,595
Return on average assets 1.30% 1.50%
Return on average tangible assets 1.41 1.62
Return on average stockholders' equity 9.89 12.02
Return on average tangible stockholders' equity 23.93 30.55
Interest rate spread 3.16 3.39
Net interest margin 3.31 3.49
Efficiency ratio 43.47 30.59
G&A to average assets 1.53 1.05
Effective tax rate 34.42 37.04
Core loan fundings $ 570,196 $ 544,953
Total loan fundings 609,894 583,184
Loans sold 160,507 2,554
Net Charge-offs (Recoveries) 8 (15)
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, except per share data) NINE MONTHS ENDED
Sept. 30, Sept. 30,
2005 2004
----------------------------------------------------------------------
Interest Income
Loans $ 174,594 $ 92,464
Securities 14,907 17,773
FHLB Stock 3,055 1,951
Fed Funds and Other 227 55
-----------------------
Total Interest Income 192,783 112,243
Interest Expense
Deposits 33,587 16,963
FHLB Advances 32,207 17,014
Exchange Balances 3,039 -
Junior Subordinated Debentures 6,831 3,235
Other Borrowings 1,594 477
-----------------------
Total Interest Expense 77,258 37,689
-----------------------
Net Interest Income 115,525 74,554
Recapture of Allowance for Loan Losses (8,109) -
-----------------------
Net Interest Income after Recapture of
Allowance for Loan Losses 123,634 74,554
Noninterest Income
Loan Related Fees 3,957 3,603
Retail Banking Fees 1,599 801
Mortgage Banking Fees 285 444
1031 Exchange Fees 3,340 -
Gain on Sale of Loans 4,895 214
Gain on Sale of Securities - 2,152
Other Income 4,005 1,183
-----------------------
Total Noninterest Income 18,081 8,397
Noninterest Expenses
Compensation and Benefits 23,105 11,810
Non-Cash Stock Compensation 1,499 87
Occupancy and Equipment 6,431 3,205
Marketing 1,666 1,103
Technology 2,004 837
Professional and Consulting 3,674 780
Insurance Premiums and Assessment Costs 1,745 1,117
Merger-Related - 914
Recapture of Reserve for Unfunded Commitments (1,434) -
Other Expenses 9,098 3,426
-----------------------
Total G&A Expenses 47,788 23,279
Early Extinguishment of Debt - 1,204
Amortization of Core Deposit Intangible 488 261
-----------------------
Total Noninterest Expenses 48,276 24,744
-----------------------
Income Before Taxes 93,439 58,207
Income Tax Expense 34,191 22,178
-----------------------
Net Income $ 59,248 $ 36,029
=======================
Operating Data NINE MONTHS ENDED
Performance Ratios and Other Data: Sept. 30, Sept. 30,
2005 2004
-----------------------
Earnings per share -- Basic $ 1.08 $ 0.90
Earnings per share -- Diluted 1.03 0.84
Weighted average shares outstanding -- Basic 55,085,899 40,173,889
Weighted average shares outstanding -- Diluted 57,456,826 42,794,098
Return on average assets 1.52% 1.53%
Return on average tangible assets 1.64 1.61
Return on average stockholders' equity 11.93 15.05
Return on average tangible stockholders' equity 28.75 30.95
Interest rate spread 3.13 3.31
Net interest margin 3.29 3.42
Efficiency ratio 35.77 28.06
G&A to average assets 1.22 0.99
Effective tax rate 36.59 38.10
Core loan fundings $1,764,628 $1,193,972
Total loan fundings 1,842,433 1,309,246
Loans sold 702,494 15,852
Net Charge-offs (Recoveries) 3 (19)
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, except per share data)
Sept. 30, June 30, Mar. 31,
2005 2005 2005
----------------------------------------------------------------------
ASSETS
-------------------------------------
Cash and Cash Equivalents $ 69,112 $ 33,812 $ 78,775
Securities
MBS -- Available For Sale 408,338 444,456 464,689
Other Investments -- Available
For Sale - - -
---------------------------------
Total Securities 408,338 444,456 464,689
FHLB Stock 84,314 98,943 97,007
Loans Held for Investment
Single Family 246,400 196,605 209,480
Multi-family 2,897,778 2,807,503 2,633,004
Commercial Real Estate 534,599 518,106 440,088
Construction 186,583 190,302 225,650
Land 48,414 43,946 50,182
---------------------------------
Total Real Estate Loans 3,913,774 3,756,462 3,558,404
Business and Other Loans 18,085 18,723 19,364
---------------------------------
Total Loans Held for
Investment 3,931,859 3,775,185 3,577,768
Net Deferred Fees, Premiums and
Discounts 319 (1,815) (4,798)
Allowance for Loan Losses (28,723) (28,731) (28,743)
---------------------------------
Total Loans Held for
Investment, Net 3,903,455 3,744,639 3,544,227
Loans Held for Sale 165,760 304,723 612,549
---------------------------------
Total Loans 4,069,215 4,049,362 4,156,776
Fixed Assets -- Net 16,624 16,905 16,419
Foreclosed Assets - - -
Accrued Interest Receivable 19,652 18,872 19,374
Goodwill 394,080 394,080 377,726
Core Deposit Intangible 5,414 5,576 5,739
Bank-Owned Life Insurance 93,290 47,525 47,081
Affordable Housing Investments 33,956 34,877 35,798
Other Assets 41,664 35,593 33,961
----------------------------------------------------------------------
TOTAL ASSETS $5,235,659 $5,180,001 $5,333,345
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Deposits
Demand Deposits -- Noninterest-
Bearing $ 140,185 $ 127,300 $ 110,741
Demand Deposits -- Interest-
Bearing 74,063 74,941 78,611
Money Market Checking 212,637 243,337 316,639
Money Market Savings 438,313 313,158 195,875
Savings 173,481 218,573 281,766
---------------------------------
Total Transaction Deposits 1,038,679 977,309 983,632
Retail Time Deposits 1,001,281 939,410 933,209
Broker Time Deposits 55,845 115,895 115,199
---------------------------------
Total Time Deposits 1,057,126 1,055,305 1,048,408
---------------------------------
Total Deposits 2,095,805 2,032,614 2,032,040
Borrowings
FHLB Advances 1,510,917 1,521,028 2,015,338
Exchange Balances 679,526 685,551 370,202
Junior Subordinated Debentures 150,107 150,253 150,398
Other Borrowings 69,000 65,000 61,000
---------------------------------
Total Borrowings 2,409,550 2,421,832 2,596,938
Other Liabilities 49,578 57,098 51,589
----------------------------------------------------------------------
TOTAL LIABILITIES 4,554,933 4,511,544 4,680,567
STOCKHOLDERS' EQUITY 680,726 668,457 652,778
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $5,235,659 $5,180,001 $5,333,345
======================================================================
Operating Data
Performance Ratios and Other Data: Sept. 30, June 30, Mar. 31,
2005 2005 2005
---------------------------------
Equity to assets at end of period 13.00% 12.90% 12.24%
Tangible equity to assets at end of
period 5.37 5.19 5.05
Tangible equity to tangible assets at
end of period 5.82 5.62 5.44
Nonperforming assets $ 8,935 $ 12,098 $ 6,475
Nonperforming assets to total assets 0.17% 0.23% 0.12%
Allowance for loan losses to loans
held for investment at end of period 0.73 0.76 0.80
Allowance for loan losses to
nonaccrual loans 321 237 444
Per Share Data
Common shares outstanding at end of
period 55,640,363 55,388,061 55,416,348
Book value per share $ 12.23 $ 12.07 $ 11.78
Tangible book value per share 5.05 4.85 4.86
Dec. 31, Sept. 30,
2004 2004
-----------------------------------------------------------
ASSETS
-------------------------------------
Cash and Cash Equivalents $ 16,961 $ 20,445
Securities
MBS -- Available For Sale 491,265 486,120
Other Investments -- Available
For Sale - 100
----------------------
Total Securities 491,265 486,220
FHLB Stock 96,046 86,147
Loans Held for Investment
Single Family 841,818 957,825
Multi-family 2,396,788 2,235,427
Commercial Real Estate 420,015 435,075
Construction 225,058 213,656
Land 56,308 55,786
----------------------
Total Real Estate Loans 3,939,987 3,897,769
Business and Other Loans 16,360 13,399
----------------------
Total Loans Held for
Investment 3,956,347 3,911,168
Net Deferred Fees, Premiums and
Discounts (5,708) (11,740)
Allowance for Loan Losses (36,835) (36,846)
----------------------
Total Loans Held for
Investment, Net 3,913,804 3,862,582
Loans Held for Sale 976 17,620
----------------------
Total Loans 3,914,780 3,880,202
Fixed Assets -- Net 10,318 9,989
Foreclosed Assets - -
Accrued Interest Receivable 17,120 16,819
Goodwill 357,367 357,367
Core Deposit Intangible 5,902 6,105
Bank-Owned Life Insurance 46,277 46,270
Affordable Housing Investments 36,719 17,261
Other Assets 31,169 39,951
-----------------------------------------------------------
TOTAL ASSETS $5,023,924 $4,966,776
===========================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Deposits
Demand Deposits -- Noninterest-
Bearing $ 97,931 $ 92,950
Demand Deposits -- Interest-
Bearing 78,003 80,267
Money Market Checking 473,344 419,760
Money Market Savings 245,306 298,165
Savings 336,474 293,905
----------------------
Total Transaction Deposits 1,231,058 1,185,047
Retail Time Deposits 932,562 1,040,634
Broker Time Deposits 93,161 72,961
----------------------
Total Time Deposits 1,025,723 1,113,595
----------------------
Total Deposits 2,256,781 2,298,642
Borrowings
FHLB Advances 1,856,349 1,831,798
Exchange Balances - -
Junior Subordinated Debentures 135,079 135,225
Other Borrowings 101,000 57,000
----------------------
Total Borrowings 2,092,428 2,024,023
Other Liabilities 49,499 35,403
-----------------------------------------------------------
TOTAL LIABILITIES 4,398,708 4,358,068
STOCKHOLDERS' EQUITY 625,216 608,708
-----------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $5,023,924 $4,966,776
===========================================================
Operating Data
Performance Ratios and Other Data: Dec. 31, Sept. 30,
2004 2004
----------------------
Equity to assets at end of period 12.44% 12.26%
Tangible equity to assets at end of
period 5.21 4.94
Tangible equity to tangible assets at
end of period 5.62 5.33
Nonperforming assets $ 6,601 $ 5,095
Nonperforming assets to total assets 0.13% 0.10%
Allowance for loan losses to loans
held for investment at end of period 0.93 0.94
Allowance for loan losses to
nonaccrual loans 558 723
Per Share Data
Common shares outstanding at end of
period 54,519,579 54,361,762
Book value per share $11.47 $11.20
Tangible book value per share 4.80 4.51
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,
2005 2005 2005
----------------------------------------------------------------------
Interest Income
Loans $ 60,148 $ 58,540 $ 55,905
Securities 4,698 4,990 5,219
FHLB Stock 935 1,086 1,034
Fed Funds and Other 83 62 83
---------------------------------
Total Interest Income 65,864 64,678 62,241
Interest Expense
Deposits 12,852 10,861 9,874
FHLB Advances 10,139 10,923 11,145
Exchange Balances 1,552 1,147 341
Junior Subordinated Debentures 2,481 2,307 2,043
Other Borrowings 575 515 504
---------------------------------
Total Interest Expense 27,599 25,753 23,907
---------------------------------
Net Interest Income 38,265 38,925 38,334
Recapture of Allowance for Loan
Losses - - (8,109)
---------------------------------
Net Interest Income after Recapture
of Allowance for Loan Losses 38,265 38,925 46,443
Noninterest Income
Loan Related Fees 1,380 1,519 1,058
Retail Banking Fees 558 509 531
Mortgage Banking Fees 136 108 40
1031 Exchange Fees 1,620 1,347 374
Gain on Sale of Loans 1,494 2,757 645
Gain on Sale of Securities - - -
Other Income 2,246 658 1,100
---------------------------------
Total Noninterest Income 7,434 6,898 3,748
Noninterest Expenses
Compensation and Benefits 9,251 7,235 6,619
Non-Cash Stock Compensation 865 393 241
Occupancy and Equipment 2,219 2,052 2,159
Marketing 393 619 654
Technology 746 646 612
Professional and Consulting 2,482 694 498
Insurance Premiums and Assessment
Costs 602 574 568
Merger-Related - - -
Provision (Recapture of Reserve)
for Unfunded Commitments 56 - (1,490)
Other Expenses 3,251 3,055 2,793
---------------------------------
Total G&A Expenses 19,865 15,268 12,654
Early Extinguishment of Debt - - -
Amortization of Core Deposit
Intangible 163 162 163
---------------------------------
Total Noninterest Expenses 20,028 15,430 12,817
---------------------------------
Income Before Taxes 25,671 30,393 37,374
Income Tax Expense 8,835 11,068 14,287
---------------------------------
Net Income $ 16,836 $ 19,325 $ 23,087
=================================
Operating Data THREE MONTHS ENDED
Performance Ratios and Other Data: Sept. 30, June 30, Mar. 31,
2005 2005 2005
---------------------------------
Earnings per share -- Basic $ 0.30 $ 0.35 $ 0.42
Earnings per share -- Diluted 0.29 0.34 0.40
Weighted average shares outstanding
-- Basic 55,244,376 55,186,788 54,821,891
Weighted average shares outstanding
-- Diluted 57,565,159 57,522,870 57,277,806
Return on average assets 1.30% 1.47% 1.78%
Return on average tangible assets 1.41 1.59 1.92
Return on average stockholders'
equity 9.89 11.62 14.41
Return on average tangible
stockholders' equity 23.93 28.11 34.49
Interest rate spread 3.16 3.12 3.10
Net interest margin 3.31 3.28 3.27
Efficiency ratio 43.47 33.32 30.07
G&A to average assets 1.53 1.16 0.98
Effective tax rate 34.42 36.42 38.23
Core loan fundings $ 570,196 $ 599,303 $ 595,129
Total loan fundings 609,894 624,715 607,824
Loans sold 160,507 386,144 155,843
Net Charge-offs (Recoveries) 8 12 (17)
Dec. 31, Sept. 30,
2004 2004
-----------------------------------------------------------
Interest Income
Loans $ 54,221 $ 50,777
Securities 5,285 5,301
FHLB Stock 860 891
Fed Funds and Other 27 18
----------------------
Total Interest Income 60,393 56,987
Interest Expense
Deposits 9,174 9,060
FHLB Advances 10,717 8,345
Exchange Balances - -
Junior Subordinated Debentures 1,770 1,611
Other Borrowings 264 94
----------------------
Total Interest Expense 21,925 19,110
----------------------
Net Interest Income 38,468 37,877
Recapture of Allowance for Loan
Losses - -
----------------------
Net Interest Income after Recapture
of Allowance for Loan Losses 38,468 37,877
Noninterest Income
Loan Related Fees 1,591 2,217
Retail Banking Fees 546 588
Mortgage Banking Fees 122 137
1031 Exchange Fees - -
Gain on Sale of Loans 3,809 72
Gain on Sale of Securities - -
Other Income 622 601
----------------------
Total Noninterest Income 6,690 3,615
Noninterest Expenses
Compensation and Benefits 6,120 6,148
Non-Cash Stock Compensation 29 29
Occupancy and Equipment 2,096 2,131
Marketing 498 421
Technology 538 496
Professional and Consulting 440 370
Insurance Premiums and Assessment
Costs 579 582
Merger-Related 282 494
Provision (Recapture of Reserve)
for Unfunded Commitments (416) -
Other Expenses 2,539 2,023
----------------------
Total G&A Expenses 12,705 12,694
Early Extinguishment of Debt - -
Amortization of Core Deposit
Intangible 203 203
----------------------
Total Noninterest Expenses 12,908 12,897
----------------------
Income Before Taxes 32,250 28,595
Income Tax Expense 12,016 10,591
----------------------
Net Income $ 20,234 $ 18,004
======================
Operating Data
Performance Ratios and Other Data: Dec. 31, Sept. 30,
2004 2004
----------------------
Earnings per share -- Basic $ 0.37 $ 0.34
Earnings per share -- Diluted 0.36 0.32
Weighted average shares outstanding
-- Basic 54,399,694 53,625,568
Weighted average shares outstanding
-- Diluted 56,947,525 56,824,595
Return on average assets 1.61% 1.50%
Return on average tangible assets 1.73 1.62
Return on average stockholders'
equity 13.06 12.02
Return on average tangible
stockholders' equity 31.55 30.55
Interest rate spread 3.26 3.39
Net interest margin 3.38 3.49
Efficiency ratio 28.13 30.59
G&A to average assets 1.01 1.05
Effective tax rate 37.26 37.04
Core loan fundings $ 495,730 $ 544,953
Total loan fundings 540,783 583,184
Loans sold 166,257 2,554
Net Charge-offs (Recoveries) 11 (15)
COMMERCIAL CAPITAL BANCORP, INC.
Average Balances, Net Interest Income,
Yields Earned and Rates Paid
(Dollars in Thousands) THREE MONTHS ENDED SEPTEMBER 30,
---------------------------------
2005
---------------------------------
Average Average
Balance Interest Yield/Cost
---------------------------------
Interest-Earning Assets:
Total Loans(1) $4,093,233 $ 60,148 5.88%
Securities(2) 428,419 4,698 4.39
FHLB Stock 88,407 935 4.23
Cash and Cash Equivalents(3) 9,596 83 3.46
----------------------
Total Interest-Earning Assets 4,619,655 65,864 5.70
Noninterest-Earning Assets 570,882
-----------
Total Assets $5,190,537
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $ 877,634 4,795 2.17
Certificates of Deposits 1,056,302 8,057 3.03
----------------------
Total Deposits 1,933,936 12,852 2.64
FHLB Advances 1,469,112 10,139 2.74
Exchange Balances 700,793 1,552 0.88
Junior Subordinated Debentures 150,203 2,481 6.55
Other Borrowings (5) 64,893 575 3.52
----------------------
Total Interest-Bearing Liabilities 4,318,937 27,599 2.54
-----------
Noninterest-Bearing Deposits 138,935
Other Noninterest-Bearing
Liabilities 51,638
-----------
Total Liabilities 4,509,510
Stockholders' Equity 681,027
-----------
Total Liabilities and Stockholders'
Equity $5,190,537
===========
Net Interest-Earning Assets $ 300,718
===========
Net Interest Income/Interest Rate
Spread $ 38,265 3.16%
======================
Net Interest Margin 3.31%
===========
2004
---------------------------------
Average Average
Balance Interest Yield/Cost
---------------------------------
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
FHLB Advances 1,621,709 8,345 2.05
Exchange Balances - - -
Junior Subordinated Debentures 135,321 1,611 4.74
Other Borrowings (5) 23,424 94 1.60
----------------------
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%
===========
----------------------------------------------------------------------
(1) The average balance of loans receivable includes loans held 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.
(5) Consists of securities sold under agreements to repurchase,
federal funds purchased, warehouse line of credit and other
short-term borrowings.
COMMERCIAL CAPITAL BANCORP, INC.
Average Balances, Net Interest
Income, Yields Earned and Rates Paid
(Dollars in Thousands) NINE MONTHS ENDED SEPTEMBER 30,
---------------------------------
2005
---------------------------------
Average Average
Balance Interest Yield/Cost
---------------------------------
Interest-Earning Assets:
Total Loans(1) $4,121,876 $ 174,594 5.65%
Securities(2) 455,450 14,907 4.36
FHLB Stock 94,427 3,055 4.31
Cash and Cash Equivalents(3) 10,934 227 2.77
----------------------
Total Interest-Earning Assets 4,682,687 192,783 5.49
Noninterest-Earning Assets 529,465
-----------
Total Assets $5,212,152
===========
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $ 910,708 12,925 1.90
Certificates of Deposits 1,049,009 20,662 2.63
----------------------
Total Deposits 1,959,717 33,587 2.29
FHLB Advances 1,716,259 32,207 2.51
Exchange Balances 476,270 3,039 0.85
Junior Subordinated Debentures 148,535 6,831 6.15
Other Borrowings (5) 71,814 1,594 2.97
----------------------
Total Interest-Bearing Liabilities 4,372,595 77,258 2.36
-----------
Noninterest-Bearing Deposits 125,376
Other Noninterest-Bearing
Liabilities 51,775
-----------
Total Liabilities 4,549,746
Stockholders' Equity 662,406
-----------
Total Liabilities and Stockholders'
Equity $5,212,152
===========
Net Interest-Earning Assets $ 310,092
===========
Net Interest Income/Interest Rate
Spread $ 115,525 3.13%
======================
Net Interest Margin 3.29%
===========
2004
---------------------------------
Average Average
Balance Interest Yield/Cost
---------------------------------
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
FHLB Advances 1,214,498 17,014 1.87
Exchange Balances - - -
Junior Subordinated Debentures 91,359 3,235 4.73
Other Borrowings (5) 48,533 477 1.31
----------------------
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%
===========
----------------------------------------------------------------------
(1) The average balance of loans receivable includes loans held 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.
(5) Consists of securities sold under agreements to repurchase,
federal funds purchased, warehouse line of credit and other
short-term borrowings.
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:
Excluding
Premium/Discount
Q3 2005 As Reported Effect
--------------------------------- ------------------
Average Avg. Average
Balance Interest Yield/Cost Balance Interest
--------------------------------- ------------------
Total Interest-
Earning Assets $4,619,655 $ 65,864 5.70% $ 3,830 $ (756)
Total Interest-
Bearing
Liabilities 4,318,937 27,599 2.54% (3,205) 347
----------- --------
Net Interest
Income/Interest
Rate Spread $ 38,265 3.16% $(1,103)
Net Interest
Margin 3.31%
Excluding
Premium/Discount
Q2 2005 As Reported Effect
--------------------------------- ------------------
Average Avg. Average
Balance Interest Yield/Cost Balance Interest
--------------------------------- ------------------
Total Interest-
Earning Assets $4,740,920 $ 64,678 5.46% $ 4,617 $ (915)
Total Interest-
Bearing
Liabilities 4,418,099 25,753 2.34% (3,600) 417
----------- --------
Net Interest
Income/Interest
Rate Spread $ 38,925 3.12% $(1,332)
Net Interest
Margin 3.28%
Excluding
Premium/Discount
Q3 2004 As Reported Effect
--------------------------------- ------------------
Average Avg. Average
Balance Interest Yield/Cost Balance Interest
--------------------------------- ------------------
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%
Q3 2005 Adjusted
---------------------------------
Average Avg.
Balance Interest Yield/Cost
---------------------------------
Total Interest-
Earning Assets $4,623,485 $ 65,108 5.63%
Total Interest-
Bearing
Liabilities $4,315,732 $ 27,946 2.57%
-----------
Net Interest
Income/Interest
Rate Spread $37,162 3.06%
Net Interest
Margin 3.22%
Q2 2005 Adjusted
---------------------------------
Average Avg.
Balance Interest Yield/Cost
---------------------------------
Total Interest-
Earning Assets $4,745,537 $ 63,763 5.37%
Total Interest-
Bearing
Liabilities $4,414,499 $ 26,170 2.38%
-----------
Net Interest
Income/Interest
Rate Spread $ 37,593 2.99%
Net Interest
Margin 3.17%
Q3 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%
The following tables provide a reconciliation of the Company's net
income and total general and administrative expenses excluding the
effect of the expenses related to the Commercial Banking Division.
Three Months Ended
Net Income Sept. 30, 2005
-------------------
Net income -- as reported $ 16,836
Adjustments related to the Commercial Banking
Division:
Add: Reversal of compensation expenses 1,183
Add: Reversal of professional expenses 1,722
Add: Reversal of other operating expenses 33
Less: Tax effect (42%) (1,234)
-------------------
Net income -- Non-GAAP $ 18,540
===================
Three Months Ended
Total General and Administrative Expense Sept. 30, 2005
-------------------
Total general and administrative expense -- as
reported $ 19,865
Adjustments related to the Commercial Banking
Division:
Less: Compensation expenses (1,183)
Less: Professional expenses (1,722)
Less: Other operating expenses (33)
-------------------
Total general and administrative expense --
Non-GAAP $ 16,927
===================
Selected Financial Highlights:
Three Months Ended Three Months Ended
Sept. 30, 2005 Sept. 30, 2005
Non-GAAP GAAP
------------------- ------------------
Basic EPS $ 0.34 $ 0.30
Diluted EPS 0.32 0.29
Return on Average Assets(1) 1.43% 1.30%
Return on Tangible Assets(1) 1.55 1.41
Return on Average Equity(1) 10.89 9.89
Return on Average Tangible
Equity(1) 26.35 23.93
Efficiency Ratio 37.04 43.47
G&A to Average Assets(1) 1.30 1.53
(1) Average asset and equity balances were not adjusted for purposes
of calculating these Non-GAAP financial ratios
COMMERCIAL CAPITAL BANK, FSB
Selected Financial Data
(Dollars in Thousands)
Sept. 30, 2005 June 30, 2005
----------------------------------------------------------------------
ASSETS
----------------------------------------------------------------------
Cash and Cash Equivalents $ 67,014 $ 29,675
Securities 406,748 442,782
FHLB Stock 84,314 98,943
Loans Held For Investment
Single Family 246,400 196,605
Multi-family 2,894,484 2,804,188
Commercial Real Estate 534,599 518,106
Construction 186,583 190,302
Land 48,414 43,946
-------------------------------
Total Real Estate Loans 3,910,480 3,753,147
Business & Other Loans 17,972 18,610
-------------------------------
Total Loans Held for Investment 3,928,452 3,771,757
Net Deferred Fees, Premiums and
Discounts 1,810 (25)
Allowance for Loan Losses (28,723) (28,731)
-------------------------------
Total Loans Held for Investment, Net 3,901,539 3,743,001
Loans Held For Sale 164,794 303,754
-------------------------------
Total Loans 4,066,333 4,046,755
Other Assets 550,212 502,369
----------------------------------------------------------------------
TOTAL ASSETS $ 5,174,621 $ 5,120,524
======================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
----------------------------------------------------------------------
Deposits
Demand Deposits -- Noninterest-
Bearing $ 176,013 $ 222,143
Demand Deposits -- Interest-
Bearing 74,063 74,941
Money Market Checking 595,051 600,640
Money Market Savings 680,392 532,838
Savings 173,573 218,665
-------------------------------
Total Transaction Deposits 1,699,092 1,649,227
Total Time Deposits 1,057,126 1,055,305
-------------------------------
Total Deposits 2,756,218 2,704,532
Borrowings 1,579,917 1,586,028
Other Liabilities 55,408 58,963
----------------------------------------------------------------------
TOTAL LIABILITIES 4,391,543 4,349,523
STOCKHOLDER'S EQUITY 783,078 771,001
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDER'S
EQUITY $ 5,174,621 $ 5,120,524
======================================================================
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