Commercial Capital Bancorp Announces First Quarter 2006 Earnings.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) ): --Diluted earnings per share of $0.24 on net income of $13.8 million --Non-GAAP diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.26 on net income of $15.5 million --Board of Directors approves cash dividend of $0.075 per share --Company signs definitive agreement of merger with Washington Mutual “WaMu” redirects here. For the Washington, DC radio station, see WAMU. Washington Mutual (or WaMu; NYSE: WM) is the United States' largest savings and loan association. Commercial Capital Bancorp, Inc. (the "Company") (NASDAQ:CCBI), today announced net income of $13.8 million or $0.24 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 first quarter of 2006, and excluding the direct costs of the Commercial Banking Division and other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs, Non-GAAP net income of $15.5 million or $0.26 per diluted share during the first quarter of 2006. The Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend of $0.075 per share for shareholders of record on May 17, 2006 to be paid on May 31, 2006. On April 23, 2006, the Company and Washington Mutual, Inc. jointly announced that they had entered into a definitive agreement pursuant to which Washington Mutual will acquire all of the outstanding shares of Commercial Capital Bancorp, Inc. in an all cash transaction that values each share of Commercial Capital Bancorp common stock at $16.00, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $983 million in aggregate. The transaction is expected to close in the third quarter of 2006, pending 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. approval, approval of the transaction by the Company's stockholders and satisfaction of other customary closing conditions. The financial results for the first quarter of 2006 reflect the continuing implementation of the Company's core growth strategies. --Total assets grew to a record $5.7 billion at March 31, 2006. The growth in assets, during the quarter, was generated by the Bank's strong fundings of multifamily, commercial real estate and construction loans and through the acquisition of Calnet Business Bank. --On March 3, 2006, the Company completed the acquisition of Calnet, a Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , California-based community bank. --On March 30, 2006, the Company completed the acquisition of Lawyers Asset Management, Inc., an 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. , California-based 1031 exchange accommodator. --Loan fundings of $510.2 million were achieved during the first quarter of 2006, of which $325.0 million or 64% were income property loans. Additionally, through the Calnet acquisition, the Company added $108 million of prime-based loans during the quarter. --Total deposits reached $2.5 billion, an increase of $237 million, or 10% from December December: see month. 31, 2005. --Commercial business banking deposits totaled $384.2 million at March 31, 2006, including the impact from the Calnet acquisition. --Net interest income increased to $38.1 million for the first quarter of 2006 compared to $37.4 million for the fourth quarter of 2005. --Total revenues in the first quarter of 2006 reached $81.0 million, the highest level for any quarter in the Company's history. --1031 exchange balances totaled $637.6 million at March 31, 2006. Exchange balances averaged $566.9 million with an average cost of 1.00% for the first quarter of 2006. --In January January: see month. 2006, the Bank opened its Crystal Cove banking office 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 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 Crystal Cove office has been successful in gathering deposits in its initial months of operations and held $18.9 million of transaction account deposits, at March 31, 2006. The Bank has also announced plans to open banking offices in Valencia Valencia, region, Spain Valencia (välān`thēä), autonomous region (1990 pop. 3,902,429) and former kingdom, E Spain, on the Mediterranean. It now comprises the provinces of Alicante, Castellón, and Valencia. , and Pasadena, California Pasadena is a city in Los Angeles County, California, United States. As of the 2000 census, the city population was 133,936 and the 160th largest city in the United States. The California Finance Department estimates the Pasadena population to be 146,166 in 2005. , which are scheduled to open in spring 2006 and summer 2006, respectively. --As part of an overhead reduction, efficiency improvement program, the Company announced a reduction in force and began implementing other cost savings measures. The implementation of the previously announced overhead reduction program resulted in a one-time charge of approximately $830,000, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , in the first quarter of 2006. The comparability of the Company's quarterly results is affected by the acquisitions that occurred during 2005 and 2006. The Company's operating results from the first quarter of 2006 include the operations of TIMCOR and NAEC See Novell certification. , which were acquired in February February: see month. 2005 and May 2005, respectively, and Calnet and LAMI LAMI Los Angeles Maritime Institute (California) LAMI Laboratoire d'Analyse des Matériaux et Identification (French) LAMI Languages and More Internet (website) , which were acquired on March 3, 2006 and March 30, 2006, respectively.
First Quarter Financial Summary
($ in 000's, except per share data)
2006 2005 Change % Change
--------- --------- ---------- ---------
Total revenues(i)
$81,041 $65,989 $15,052 22.8%
Net interest income, after
provision 38,076 46,443 -8,367 -18.0
Non-interest income 4,791 3,748 1,043 27.8
G&A Expenses 22,047 12,654 9,393 74.2
Net income 13,790 23,087 -9,297 -40.3
Basic EPS 0.24 0.42 -0.18 -42.9
Diluted EPS 0.24 0.40 -0.16 -40.0
Yield on earning assets 6.21% 5.31% 0.90 16.9
Cost of funds 3.27 2.16 1.11 51.4
Net interest margin 3.10 3.27 -0.17 -5.2
ROAA 1.00 1.78 -0.78 -43.8
ROAA - Tangible 1.08 1.92 -0.84 -43.8
ROAE 7.60 14.41 -6.81 -47.3
ROAE - Tangible 17.50 34.49 -16.99 -49.3
Efficiency ratio 51.43 30.07 21.36 71.0
G&A to total assets 1.60 0.98 0.62 63.3
Effective income tax rate 33.20 38.23 -5.03 -13.2
Core loan fundings(ii)
$492,449 $595,129 -$102,680 -17.3
Total loan fundings(iii)
510,189 607,824 -97,635 -16.1
Because of the Company's announced signing of an acquisition agreement with Washington Mutual, Inc., the Company's previously announced earnings call scheduled for later this morning will not be held. Commercial Capital Bancorp, Inc. is a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services company with $5.7 billion of total assets, at March 31, 2006. The Company provides 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. and lending products and services under the Commercial Capital Bank brand name, and provides 1031 exchange services to income property investors nationwide under the TIMCOR Exchange Corporation, North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Exchange Company and Lawyers Asset Management brand names. This press release and statements made by the Company's or 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. Mutual's management may contain 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. regarding the Company and Washington Mutual and the proposed merger. These statements 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: governmental approval of the merger may not be obtained or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; the stockholders of Company 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 and Washington Mutual undertake 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. or update to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that occur after the date on which such statements were made. 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 the Company by Washington Mutual pursuant to the merger. In connection with the proposed transaction, a 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. for the Company will be filed with the SEC to be distributed to the shareholders of the Company in connection with their vote on the merger. SHAREHOLDERS OF THE COMPANY ARE ENCOURAGED TO READ THE PROXY STATEMENT BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. The final proxy statement will be mailed to shareholders of the Company. 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 companies 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. The Company is not currently engaged in a solicitation of proxies of the security holders of the Company in connection with Washington Mutual, Inc.'s proposed acquisition of the Company. If 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. solicitation commences, the Company and its 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 the Company's directors and executive officers is set forth in its proxy statement dated March 28, 2006, which is available by contacting the Company at the telephone number set forth above.
(i)Total revenue is defined as interest income plus noninterest
income.
(ii)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.
(iii)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)
Mar. 31, 2006 Dec. 31, 2005 Sept. 30, 2005
----------------------------------------------------------------------
ASSETS
Cash and Cash Equivalents $ 41,607 $ 33,735 $ 69,112
Securities Available For
Sale 366,092 384,144 408,338
FHLB Stock 86,412 84,788 84,314
Loans Held for Investment
Single Family 428,904 394,678 246,400
Multifamily 3,110,643 3,050,931 2,897,778
Commercial Real Estate 692,635 601,665 534,599
Construction 247,638 202,237 186,583
Land 94,695 74,948 48,414
------------- ------------- --------------
Total Real Estate Loans 4,574,515 4,324,459 3,913,774
Business and Other Loans 32,746 12,396 18,085
------------- ------------- --------------
Total Loans Held for
Investment 4,607,261 4,336,855 3,931,859
Net Deferred Fees,
Premiums and Discounts 5,100 3,427 319
Allowance for Loan Losses (29,955) (28,705) (28,723)
------------- ------------- --------------
Total Loans Held for
Investment, Net 4,582,406 4,311,577 3,903,455
Loans Held for Sale 35,974 23,961 165,760
------------- ------------- --------------
Total Loans 4,618,380 4,335,538 4,069,215
Fixed Assets - Net 11,921 15,838 16,624
Foreclosed Assets - - -
Accrued Interest Receivable 23,888 21,909 19,652
Goodwill 422,558 397,164 394,080
Core Deposit Intangible 6,675 5,251 5,414
Bank-Owned Life Insurance 119,028 114,409 93,290
Affordable Housing
Investments 32,114 33,035 33,956
Other Assets 15,618 28,843 41,664
----------------------------------------------------------------------
TOTAL ASSETS $ 5,744,293 $ 5,454,654 $ 5,235,659
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand Deposits -
Noninterest-Bearing $ 248,053 $ 141,597 $ 140,185
Demand Deposits -
Interest-Bearing 74,828 71,386 74,063
Money Market Checking 530,216 348,137 212,637
Money Market Savings 240,450 372,230 438,313
Savings 115,643 147,386 173,481
------------- ------------- --------------
Total Transaction
Deposits 1,209,190 1,080,736 1,038,679
Retail Time Deposits 1,087,982 1,028,546 1,001,281
Broker Time Deposits 199,940 150,800 55,845
------------- ------------- --------------
Total Time Deposits 1,287,922 1,179,346 1,057,126
------------ ------------ -------------
Total Deposits 2,497,112 2,260,082 2,095,805
Borrowings
FHLB Advances 1,602,295 1,597,806 1,510,917
Exchange Balances 637,554 623,284 679,526
Junior Subordinated
Debentures 149,817 149,962 150,107
Other Borrowings 50,000 72,000 69,000
------------- ------------- --------------
Total Borrowings 2,439,666 2,443,052 2,409,550
Other Liabilities 52,460 53,403 49,578
----------------------------------------------------------------------
TOTAL LIABILITIES 4,989,238 4,756,537 4,554,933
STOCKHOLDERS' EQUITY 755,055 698,117 680,726
----------------------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,744,293 $ 5,454,654 $ 5,235,659
======================================================================
June 30, 2005 Mar. 31, 2005
-------------------------------------------------------
ASSETS
Cash and Cash Equivalents $ 33,812 $ 78,775
Securities Available For
Sale 444,456 464,689
FHLB Stock 98,943 97,007
Loans Held for Investment
Single Family 196,605 209,480
Multifamily 2,807,503 2,633,004
Commercial Real Estate 518,106 440,088
Construction 190,302 225,650
Land 43,946 50,182
------------- -------------
Total Real Estate Loans 3,756,462 3,558,404
Business and Other Loans 18,723 19,364
------------- -------------
Total Loans Held for
Investment 3,775,185 3,577,768
Net Deferred Fees,
Premiums and Discounts (1,815) (4,798)
Allowance for Loan Losses (28,731) (28,743)
------------- -------------
Total Loans Held for
Investment, Net 3,744,639 3,544,227
Loans Held for Sale 304,723 612,549
------------- -------------
Total Loans 4,049,362 4,156,776
Fixed Assets - Net 16,905 16,419
Foreclosed Assets - -
Accrued Interest Receivable 18,872 19,374
Goodwill 394,080 377,726
Core Deposit Intangible 5,576 5,739
Bank-Owned Life Insurance 47,525 47,081
Affordable Housing
Investments 34,877 35,798
Other Assets 35,593 33,961
-------------------------------------------------------
TOTAL ASSETS $ 5,180,001 $ 5,333,345
=======================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand Deposits -
Noninterest-Bearing $ 127,300 $ 110,741
Demand Deposits -
Interest-Bearing 74,941 78,611
Money Market Checking 243,337 316,639
Money Market Savings 313,158 195,875
Savings 218,573 281,766
------------- -------------
Total Transaction
Deposits 977,309 983,632
Retail Time Deposits 939,410 933,209
Broker Time Deposits 115,895 115,199
------------- -------------
Total Time Deposits 1,055,305 1,048,408
------------- -------------
Total Deposits 2,032,614 2,032,040
Borrowings
FHLB Advances 1,521,028 2,015,338
Exchange Balances 685,551 370,202
Junior Subordinated
Debentures 150,253 150,398
Other Borrowings 65,000 61,000
------------- -------------
Total Borrowings 2,421,832 2,596,938
Other Liabilities 57,098 51,589
-------------------------------------------------------
TOTAL LIABILITIES 4,511,544 4,680,567
STOCKHOLDERS' EQUITY 668,457 652,778
-------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,180,001 $ 5,333,345
=======================================================
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands)
Three Months Ended
---------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2006 2005 2005 2005 2005
----------------------------------------------------------------------
Interest Income
Loans $70,843 $63,579 $60,148 $58,540 $55,905
Securities 4,265 4,431 4,698 4,990 5,219
FHLB Stock 1,070 1,003 935 1,086 1,034
Fed Funds and Other 72 75 83 62 83
---------------------------------------------
Total Interest
Income 76,250 69,088 65,864 64,678 62,241
Interest Expense
Deposits 18,676 15,175 12,852 10,861 9,874
FHLB Advances 14,553 11,656 10,139 10,923 11,145
Exchange Balances 1,396 1,527 1,552 1,147 341
Junior Subordinated
Debentures 2,744 2,644 2,481 2,307 2,043
Other Borrowings 805 683 575 515 504
---------------------------------------------
Total Interest
Expense 38,174 31,685 27,599 25,753 23,907
---------------------------------------------
Net Interest Income 38,076 37,403 38,265 38,925 38,334
Recapture of Allowance
for Loan Losses - - - - (8,109)
---------------------------------------------
Net Interest Income
after Recapture of
Allowance for Loan
Losses 38,076 37,403 38,265 38,925 46,443
Noninterest Income
Loan Related Fees 1,156 1,311 1,380 1,519 1,058
Retail Banking Fees 566 513 558 509 531
Mortgage Banking Fees 78 131 136 108 40
1031 Exchange Fees 925 1,301 1,620 1,347 374
Gain on Sale of Loans 207 534 1,494 2,757 645
Gain on Sale of
Securities - - - - -
Other Income 1,859 2,276 2,246 658 1,100
---------------------------------------------
Total Noninterest
Income 4,791 6,066 7,434 6,898 3,748
Noninterest Expenses
Compensation and
Benefits 12,247 11,092 10,116 7,628 6,860
Occupancy and
Equipment 2,498 2,206 2,219 2,052 2,159
Marketing 378 311 393 619 654
Technology 843 770 746 646 612
Professional and
Consulting 1,801 1,847 2,482 694 498
Insurance Premiums and
Assessment Costs 634 620 602 574 568
Merger-Related 118 13 - - -
(Recapture of)
Provision for Reserve
for Unfunded
Commitments (2) (2) 56 - (1,490)
Other Expenses 3,530 3,675 3,251 3,055 2,793
---------------------------------------------
Total G&A Expenses 22,047 20,532 19,865 15,268 12,654
Early Extinguishment
of Debt - - - - -
Amortization of Core
Deposit Intangible 176 163 163 162 163
---------------------------------------------
Total Noninterest
Expenses 22,223 20,695 20,028 15,430 12,817
---------------------------------------------
Income Before Taxes 20,644 22,774 25,671 30,393 37,374
Income Tax Expense 6,854 7,673 8,835 11,068 14,287
---------------------------------------------
Net Income $13,790 $15,101 $16,836 $19,325 $23,087
=============================================
COMMERCIAL CAPITAL BANCORP, INC.
Five Quarter Summary of Yields Earned and Rates Paid
Three Months Ended
---------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2006 2005 2005 2005 2005
---------------------------------------------
Interest-Earning Assets
Loans 6.40% 6.10% 5.88% 5.61% 5.46%
Securities 4.41 4.40 4.39 4.37 4.33
FHLB Stock 5.10 4.75 4.23 4.42 4.28
Cash and Cash
Equivalents 4.34 3.37 3.46 2.69 2.37
---------------------------------------------
Total Yield on Interest-
Earning Assets 6.21 5.93 5.70 5.46 5.31
Interest-Bearing
Liabilities
Transaction Accounts 2.80 2.48 2.17 1.85 1.69
Certificates of
Deposits 3.97 3.45 3.03 2.62 2.24
FHLB Advances 3.75 3.19 2.74 2.51 2.33
Exchange Balances 1.00 0.86 0.88 0.85 0.76
Junior Subordinated
Debentures 7.42 6.99 6.55 6.15 5.71
Other Borrowings 4.52 4.06 3.52 2.99 2.51
---------------------------------------------
Cost on Interest-Bearing
Liabilities 3.40 2.87 2.54 2.34 2.21
Cost of Funds 3.27 2.78 2.46 2.27 2.16
Interest Rate Spread 2.81 3.06 3.16 3.12 3.10
Net Interest Margin 3.10 3.21 3.31 3.28 3.27
COMMERCIAL CAPITAL BANCORP, INC.
Average Balances, Net Interest Income, Yields Earned and Rates Paid
(Dollars in Thousands)
Three Months Ended
--------------------------------------
Mar. 31, 2006
--------------------------------------
Average Interest Average
Balance Yield/Cost
--------------------------------------
Interest-Earning Assets:
Total Loans(1) $ 4,430,455 $ 70,843 6.40%
Securities(2) 387,237 4,265 4.41
FHLB Stock 85,155 1,070 5.10
Cash and Cash Equivalents(3) 6,731 72 4.34
-------------------------
Total Interest-Earning Assets 4,909,578 76,250 6.21
Noninterest-Earning Assets 604,523
------------
Total Assets $ 5,514,101
============
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $ 970,390 6,707 2.80
Certificates of Deposits 1,223,722 11,969 3.97
-------------------------
Total Deposits 2,194,112 18,676 3.45
FHLB Advances 1,575,201 14,553 3.75
Exchange Balances 566,909 1,396 1.00
Junior Subordinated Debentures 149,912 2,744 7.42
Other Borrowings (5) 72,206 805 4.52
-------------------------
Total Interest-Bearing
Liabilities 4,558,340 38,174 3.40
------------
Noninterest-Bearing Deposits 168,957
Other Noninterest-Bearing
Liabilities 60,958
------------
Total Liabilities 4,788,255
Stockholders' Equity 725,846
------------
Total Liabilities and
Stockholders' Equity $ 5,514,101
============
Net Interest-Earning Assets $ 351,238
============
Net Interest Income/Interest
Rate Spread $ 38,076 2.81%
=========================
Net Interest Margin 3.10%
============
Three Months Ended
--------------------------------------
Mar. 31, 2005
--------------------------------------
Average Interest Average
Balance Yield/Cost
--------------------------------------
Interest-Earning Assets:
Total Loans(1) $ 4,095,700 $ 55,905 5.46%
Securities(2) 481,842 5,219 4.33
FHLB Stock 96,676 1,034 4.28
Cash and Cash Equivalents(3) 14,022 83 2.37
-------------------------
Total Interest-Earning Assets 4,688,240 62,241 5.31
Noninterest-Earning Assets 494,283
------------
Total Assets $ 5,182,523
============
Interest-Bearing Liabilities:
Deposits:
Transaction Accounts(4) $ 1,003,642 4,190 1.69
Certificates of Deposits 1,029,099 5,684 2.24
-------------------------
Total Deposits 2,032,741 9,874 1.97
FHLB Advances 1,939,052 11,145 2.33
Exchange Balances 183,108 341 0.76
Junior Subordinated Debentures 144,995 2,043 5.71
Other Borrowings (5) 81,540 504 2.51
-------------------------
Total Interest-Bearing
Liabilities 4,381,436 23,907 2.21
------------
Noninterest-Bearing Deposits 109,306
Other Noninterest-Bearing
Liabilities 51,106
------------
Total Liabilities 4,541,848
Stockholders' Equity 640,675
------------
Total Liabilities and
Stockholders' Equity $ 5,182,523
============
Net Interest-Earning Assets $ 306,804
============
Net Interest Income/Interest
Rate Spread $ 38,334 3.10%
=========================
Net Interest Margin 3.27%
============
(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 federal funds purchased and other short-term
borrowings.
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED PERFORMANCE RATIOS AND OTHER DATA
(Dollars in Thousands, except share data)
Three Months Ended
------------------------------------------
Mar. 31, 2006 Dec. 31, 2005 Sept. 30, 2005
----------------------------------------------------------------------
Operational Ratios
Earnings per Share - Basic $ 0.24 $ 0.27 $ 0.30
Earnings per Share -
Diluted 0.24 0.26 0.29
Return on Average Assets 1.00% 1.15% 1.30%
Return on Average Tangible
Assets 1.08 1.24 1.41
Return on Average
Stockholders' Equity 7.60 8.69 9.89
Return on Average Tangible
Stockholders' Equity 17.50 20.59 23.93
Common Shares Outstanding
at End of Period 59,655,045 56,487,280 55,640,363
Weighted Average Shares
Outstanding -- Basic 57,071,133 55,578,219 55,244,376
Weighted Average Shares
Outstanding -- Diluted 58,574,009 57,590,506 57,565,159
Shares Repurchased During
the Period - - 72,000
Efficiency Ratio 51.43% 47.23% 43.47%
G&A to Average Assets 1.60 1.56 1.53
Effective Tax Rate 33.20 33.69 34.42
Core Loan Fundings $ 492,449 $ 684,656 $ 570,196
Total Loan Fundings 510,189 716,039 609,894
Multifamily Fundings as a %
of Total Fundings 45% 47% 49%
Adjustable Rate Core Loan
Fundings $ 448,274 $ 647,593 $ 557,175
12MAT Core Loan Fundings 203,049 372,322 349,711
Fixed Rate Core Loan
Fundings 44,175 37,063 13,021
Loans Sold 19,773 45,794 160,507
Balance Sheet Ratios & Data
Tangible Assets 5,315,059 5,061,134 4,836,165
Tangible Equity 325,821 295,702 281,232
Equity to Assets at End of
Period 13.14% 12.78% 13.00%
Tangible Equity to Assets
at End of Period 5.67 5.41 5.37
Tangible Equity to Tangible
Assets at End of Period 6.13 5.84 5.82
Nonperforming Assets $ 8,012 $ 8,581 $ 8,935
Nonperforming Assets to
Total Assets 0.14% 0.16% 0.17%
Allowance for Loan Losses
to Loans Held for
Investment at End of
Period 0.65 0.66 0.73
Allowance for Loan Losses
to Nonaccrual Loans 374 335 321
Net Charge-Offs
(Recoveries) $ (8) $ 18 $ 8
Per Share Data
Book value Per Share 12.66 12.36 12.23
Tangible Book Value per
Share 5.46 5.23 5.05
Three Months Ended
---------------------------
June 30, 2005 Mar. 31, 2005
-------------------------------------------------------
Operational Ratios
Earnings per Share - Basic $ 0.35 $ 0.42
Earnings per Share -
Diluted 0.34 0.40
Return on Average Assets 1.47% 1.78%
Return on Average Tangible
Assets 1.59 1.92
Return on Average
Stockholders' Equity 11.62 14.41
Return on Average Tangible
Stockholders' Equity 28.11 34.49
Common Shares Outstanding
at End of Period 55,388,061 55,416,348
Weighted Average Shares
Outstanding -- Basic 55,186,788 54,821,891
Weighted Average Shares
Outstanding -- Diluted 57,522,870 57,277,806
Shares Repurchased During
the Period 260,000 704,400
Efficiency Ratio 33.32% 30.07%
G&A to Average Assets 1.16 0.98
Effective Tax Rate 36.42 38.23
Core Loan Fundings $ 599,303 $ 595,129
Total Loan Fundings 624,715 607,824
Multifamily Fundings as a %
of Total Fundings 51% 56%
Adjustable Rate Core Loan
Fundings $ 578,354 $ 592,818
12MAT Core Loan Fundings 304,268 312,747
Fixed Rate Core Loan
Fundings 20,949 2,311
Loans Sold 386,144 155,843
Balance Sheet Ratios & Data
Tangible Assets 4,780,345 4,949,880
Tangible Equity 268,801 269,313
Equity to Assets at End of
Period 12.90% 12.24%
Tangible Equity to Assets
at End of Period 5.19 5.05
Tangible Equity to Tangible
Assets at End of Period 5.62 5.44
Nonperforming Assets $ 12,098 $ 6,475
Nonperforming Assets to
Total Assets 0.23% 0.12%
Allowance for Loan Losses
to Loans Held for
Investment at End of
Period 0.76 0.80
Allowance for Loan Losses
to Nonaccrual Loans 237 444
Net Charge-Offs
(Recoveries) $ 12 $ (17)
Per Share Data
Book value Per Share 12.07 11.78
Tangible Book Value per
Share 4.85 4.86
COMMERCIAL CAPITAL BANCORP, INC.
LOANS FUNDED BY PRODUCT TYPE
(Dollars in Thousands)
Three Months Ended
-------------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2006 2005 2005 2005 2005
-------------------------------------------------
Real Estate
Originations
Multifamily $228,932 $253,989 $297,477 $290,604 $338,313
Commercial Real
Estate 96,065 80,664 54,277 38,371 45,435
-------------------------------------------------
Total Income
Property 324,997 334,653 351,754 328,975 383,748
Single Family
Residential 55,852 81,884 96,644 122,669 146,539
Construction & Land 104,164 150,669 103,347 43,270 47,908
-------------------------------------------------
Total Real Estate
Loan Originations 485,013 567,206 551,745 494,914 578,195
-------------------------------------------------
Real Estate Loans
Purchased
Multifamily 965 80,201 1,136 28,965 -
Commercial Real
Estate 2,133 23,592 - 71,124 -
-------------------------------------------------
Total Income
Property 3,098 103,793 1,136 100,089 -
Construction & Land 3,081 10,482 8,815 - 10,685
-------------------------------------------------
Total Real Estate
Loans Purchased 6,179 114,275 9,951 100,089 10,685
-------------------------------------------------
Total Real Estate
Fundings 491,192 681,481 561,696 595,003 588,880
-------------------------------------------------
Bank Business and
Other Originations 1,257 3,175 8,500 4,300 6,249
-------------------------------------------------
Total Core Loan
Fundings 492,449 684,656 570,196 599,303 595,129
Broker/Conduit
Originations 17,740 31,383 39,698 25,412 12,695
-------------------------------------------------
Total Loan Fundings $510,189 $716,039 $609,894 $624,715 $607,824
=================================================
COMMERCIAL CAPITAL BANCORP, INC.
LOAN FUNDINGS by INTEREST TYPE
Three Months Ended March 31, 2006
(Dollars in Thousands)
Fixed 12MAT LIBOR CMT
---------------------------------------
Real Estate Originations
Multifamily $30,412 $128,084 $10,245 $ -
Commercial Real Estate 9,986 29,327 828 54,714
---------------------------------------
Total Income Property 40,398 157,411 11,073 54,714
Single Family Residential 132 37,593 - 16,699
Construction & Land 3,623 8,045 42,815 -
---------------------------------------
Total Real Estate Loan
Originations 44,153 203,049 53,888 71,413
Real Estate Loans Purchased
Multifamily - - - -
Commercial Real Estate - - - -
---------------------------------------
Total Income Property - - - -
Construction & Land - - - -
---------------------------------------
Total Real Estate Loans
Purchased - - - -
---------------------------------------
Total Real Estate Fundings 44,153 203,049 53,888 71,413
Bank Business and Other
Originations 22 - - -
---------------------------------------
Total Core Loan Fundings $44,175 $203,049 $53,888 $71,413
Broker/Conduit Originations
Total Loan Fundings
COFI Prime Total
-----------------------------
Real Estate Originations
Multifamily $60,191 $- $228,932
Commercial Real Estate - 1,210 96,065
-----------------------------
Total Income Property 60,191 1,210 324,997
Single Family Residential 1,005 423 55,852
Construction & Land - 49,681 104,164
-----------------------------
Total Real Estate Loan
Originations 61,196 51,314 485,013
Real Estate Loans Purchased
Multifamily - 965 965
Commercial Real Estate - 2,133 2,133
-----------------------------
Total Income Property - 3,098 3,098
Construction & Land - 3,081 3,081
-----------------------------
Total Real Estate Loans
Purchased - 6,179 6,179
-----------------------------
Total Real Estate Fundings 61,196 57,493 491,192
Bank Business and Other
Originations - 1,235 1,257
-----------------------------
Total Core Loan Fundings $61,196 $58,728 $492,449
Broker/Conduit Originations 17,740
---------
Total Loan Fundings $510,189
=========
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 net
income and total general and administrative expenses excluding the
effect of the expenses related to the Commercial Banking Division, the
previously announced cost reduction program and other non-recurring
legal expenses. Management believes that the performance of the
Commercial Banking Division and its impact on the Company's overall
financial condition and results of operations will be more evident
when the Division is able to operate without limitations imposed by
the litigation process. Accordingly, management believes that the
exclusion of direct organization and litigation costs related to the
Division will provide a more meaningful presentation of the Company's
first quarter results of operations. Additionally, management believes
the exclusion of the one-time charges related to our cost reduction
program and other non-recurring charges that occurred during the
quarter enhances the meaningful presentation of the Company's first
quarter results.
Three Months Ended
Net Income Mar. 31, 2006
---------------------
Net Income - as Reported $ 13,790
Adjustments related to the Commercial Banking
Division:
Add: Reversal of compensation expense related to
salaries and benefits 747
Add: Reversal of professional expense related to
Comerica litigation 1,083
Add: Reversal of occupancy and other operating
expenses 88
---------------------
Subtotal Commercial Banking Division 1,918
Add: Reversal of severance and other
compensation expenses 830
Add: Reversal of other non-recurring legal
expenses 119
Less: Tax effect (42%) (1,204)
---------------------
Net Income - Non-GAAP $ 15,453
=====================
Total General and Administrative Expense
Total General and Administrative Expense - as
Reported $ 22,047
Adjustments related to the Commercial Banking
Division:
Less: Compensation expense related to salaries
and benefits (747)
Less: Professional expense related to Comerica
litigation (1,083)
Less: Occupancy and other operating expense (88)
---------------------
Subtotal Commercial Banking Division (1,918)
Less: Severance and other compensation expenses (830)
Less: Other non-recurring legal expense (119)
---------------------
Total General and Administrative Expense - Non-
GAAP $ 19,180
=====================
Selected Financial Highlights:
Three Months Three Months
Ended Ended
Mar. 31, 2006 Mar. 31, 2006
--------------- ---------------
Non-GAAP GAAP
--------------- ---------------
Basic EPS $ 0.27 $ 0.24
Diluted EPS 0.26 0.24
Return on Average Assets(1) 1.12% 1.00%
Return on Average Tangible Assets(1) 1.21 1.08
Return on Average Equity(1) 8.52 7.60
Return on Average Tangible Equity(1) 19.61 17.50
Efficiency Ratio 44.74 51.43
G&A to Average Assets(1) 1.39 1.60
(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)
Mar. 31, 2006 Dec. 31, 2005
----------------------------------------------------------------------
ASSETS
Cash and Cash Equivalents $ 41,297 $ 32,843
Securities Available for Sale 364,664 382,642
FHLB Stock 86,412 84,788
Loans Held For Investment
Single Family 428,904 394,678
Multifamily 3,109,872 3,050,139
Commercial Real Estate 692,635 601,665
Construction 247,638 202,237
Land 94,695 74,948
---------------------------
Total Real Estate Loans 4,573,744 4,323,667
Business & Other Loans 32,655 12,283
---------------------------
Total Loans Held for Investment 4,606,399 4,335,950
Net Deferred Fees, Premiums and
Discounts 6,227 4,779
Allowance for Loan Losses (29,955) (28,705)
---------------------------
Total Loans Held for Investment, Net 4,582,671 4,312,024
Loans Held For Sale 35,014 22,999
---------------------------
Total Loans 4,617,685 4,335,023
Other Assets 569,230 562,060
----------------------------------------------------------------------
TOTAL ASSETS $ 5,679,288 $ 5,397,356
======================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
Deposits
Demand Deposits - Noninterest-Bearing $ 290,782 $ 178,139
Demand Deposits - Interest-Bearing 74,828 71,386
Money Market Checking 911,825 749,689
Money Market Savings 457,089 553,561
Savings 116,174 147,401
---------------------------
Total Transaction Deposits 1,850,698 1,700,176
Total Time Deposits 1,287,922 1,179,346
---------------------------
Total Deposits 3,138,620 2,879,522
Borrowings 1,652,295 1,669,806
Other Liabilities 47,445 54,239
----------------------------------------------------------------------
TOTAL LIABILITIES 4,838,360 4,603,567
STOCKHOLDER'S EQUITY 840,928 793,789
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDER'S
EQUITY $ 5,679,288 $ 5,397,356
======================================================================
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