CABC Earnings Up Over 100% in 3Q 2012 Versus 3Q 2011

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Updated

CABC Earnings Up Over 100% in 3Q 2012 Versus 3Q 2011

LAFAYETTE, Calif.--(BUSINESS WIRE)-- California Bank of Commerce (OTCBB: CABC) reports another quarter of sequential and year over year earnings growth. Net Income rose 143% over 3Q 2011 and 16% over 2Q 2012. For the Quarter, the Bank achieved new record levels for Loans, Total Assets, and Pre-tax Income.

Highlights: Third Quarter 2012 versus Third Quarter 2011

  • Total Loans grew by $41 million or 20% to $242 million

  • Total Deposits grew by $55 million or 25% to $274 million

  • Net Interest Income grew by $571,000 or 24% to $2.9 million

  • Pre-tax Income grew $478,000 or 126% to $857,000


Highlights: Third Quarter 2012 versus Second Quarter 2012

  • Total Loans grew by $6 million or 3%

  • Total Deposits grew by $15 million or 6%

  • Net Interest Income grew by $60,000 or 2%

  • Earnings Per Share rose 16% to $0.18

Third Quarter 2012 Earnings and Balance Sheet Growth

Net Income for the Quarter was $486,000 or $0.177 per share, before preferred stock dividends, compared with $200,000 for the Second Quarter of 2011, or $0.073 per share, before preferred stock dividends.

The Bank's average Net Interest Margin during the Third Quarter of 2012 fell slightly to 3.65% compared to 3.69% for the Third Quarter of 2011. The average yield on Loans during the Third Quarter was 5.35% compared to 5.47% for the Third Quarter of 2011. The average Cost of Interest-Bearing Deposits during the Third Quarter of 2012 was 0.63% compared to 0.74% for the Third Quarter of 2011.

At September 30, 2012, Total Loans reached $242 million, a new record for the Bank. Commercial and Industrial Loans, the Bank's core strategic focus, grew 31% or $28 million over September 30, 2011. Total Deposits increased by $55 million year over year with 69% of the increase due to an increase in Core Deposits. Non-interest-bearing Deposits were $73 million at September 30, 2012, up 35% or $19 million over September 30, 2011.

"Our team of bankers that has developed an exceptional reputation with privately held businesses in the greater Bay Area. Our team provides knowledge, experience, and execution to middle market companies that desire superior service and an ongoing relationship with their bank," said Steve Shelton, Executive Vice President.

Non Interest Income increased by 73% to $344,000 in the quarter ended September 30, 2012 compared to same period in 2011, due primarily to improved loan and deposit fees.

Non-Interest Expense increased by $307,000 or 17% during the quarter ended September 30, 2012 compared to the quarter ended September 2011. However, the Bank reduced Non Interest Expense by $170,000 compared to the quarter ended June 30, 2012. "Despite our record level of Loans, Deposits and Net Income, we continue to manage our expenses prudently without compromising service or quality," said Tom Park, Executive Vice President. Non Interest Expense to Average Total Assets fell to 2.49% in the quarter ending September 30, 2012 compared to 2.69% in same period last year, and 2.96% in the quarter ended June 30, 2012.

Asset Quality and Capital

Non-Performing Loans (NPL) remain low at 0.55% of Total Assets at September 30, 2012. While up from 0.40% at September 30, 2011, and 0.47% at June 30, 2012, the Bank's NPL ratio remains below most competitor aggregates. "While Non-Performing Loans were up slightly for the quarter, the Bank continues to have a very healthy and sound portfolio, especially when compared to our peers and other Bay Area banks," said Park.

The Bank's Capital remains above the "well capitalized" standard. Tier 1 Leverage ratio was at 10.4% on September 30, 2012 compared to 12.3% a year ago. Total Risk Based Capital was 13.7% at September 30, 2012 compared to 15.4% a year ago. The "well capitalized" standards for Tier 1 Leverage and Total Risk Based Capital are 8% and 10%, respectively.

The Bank's Book Value per share reached $9.25 per share at September 30, 2012 compared to $8.51 at September 30, 2011, an increase of 9%.

About California Bank of Commerce

California Bank of Commerce was designed and built to provide a unique banking experience for its clients. The Bank offers a broad range of commercial banking services to closely held businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at (925) 283-2265, or visit us at www.californiabankofcommerce.com.

CALIFORNIA BANK OF COMMERCE

UNAUDITED SUMMARY FINANCIAL STATEMENTS

INCOME STATEMENT

($ Thousands)

Three Months Ended

12 Month

30-Sep-12

30-Jun-12

30-Sep-11

% Change

Interest income

$

3,358

$

3,273

$

2,771

21%

Interest expense

(426

)

(401

)

(410

)

4%

Net interest income before provision

$

2,932

$

2,872

$

2,361

24%

Provision to the Loan Loss Reserve

(312

)

(397

)

(381

)

-18%

Net interest income after provision

$

2,620

$

2,475

$

1,980

32%

Non-interest income

344

535

199

73%

Non-interest expense

(2,107

)

(2,277

)

(1,800

)

17%

Income before tax provision

857

733

379

126%

Provision for income taxes

(371

)

(316

)

(179

)

107%

Net income - Period

$

486

$

417

$

200

143%

Earnings Per Common Share

Income per Common share

$

0.177

$

0.152

$

0.073

Basic Income per Common share

$

0.167

$

0.109

$

0.066

Weighted average shares outstanding

2,750,000

2,750,000

2,750,000

CALIFORNIA BANK OF COMMERCE

UNAUDITED SUMMARY FINANCIAL STATEMENTS

BALANCE SHEET

($ Thousands)

12 Month

Assets

30-Sep-12

30-Jun-12

30-Sep-11

% Change

Total Cash and Investments

$

92,598

$

82,866

$

69,850

33%

Loans, net of deferred costs/fees

241,755

235,384

200,740

20%

Loan Loss Reserve

(4,650

)

(4,650

)

(3,990

)

17%

Other

11,745

12,174

9,903

19%

Total Assets

$

341,448

$

325,774

$

276,503

23%

Liabilities & Shareholders' Equity

Non-interest Bearing Deposits

$

73,163

$

62,109

$

54,339

35%

Interest Bearing Deposits

200,825

197,229

165,129

22%

Total Deposits

$

273,988

$

259,338

$

219,468

25%

Total Borrowings and Other Liabilities

31,073

30,831

22,663

37%

Total Liabilities

$

305,061

$

290,169

$

242,131

26%

Shareholder's Equity

$

36,387

$

35,605

$

34,372

6%

Total Liabilities & Shareholders' Equity

$

341,448

$

325,774

$

276,503

23%

Book Value per Common Share

$

9.25

$

8.97

$

8.51

9%

Quarterly Information

Net Interest Margin

3.65

%

3.95

%

3.69

%

Yield on Earning Assets

4.17

%

4.50

%

4.33

%

Cost of Interest Bearing Liabilities

0.75

%

0.75

%

0.90

%

Loan Loss Reserve to Total Loans

1.93

%

1.98

%

1.99

%

Non-Performing Loans to Total Assets

0.55

%

0.47

%

0.40

%

Tier 1 Leverage Ratio

10.4

%

11.1

%

12.3

%

Tier 1 Risk Based Capital Ratio

12.6

%

12.7

%

14.2

%

Total Risk Based Capital Ratio

13.7

%

14.0

%

15.4

%

Non Interest Expense to Avg. Total Assets

2.49

%

2.96

%

2.69

%

Efficiency Ratio

64.3

%

66.8

%

70.3

%



California Bank of Commerce
Mark DeVincenzi, 925-444-2916
CMO & EVP Shareholder Relations
mdevincenzi@bankcbc.com

KEYWORDS: United States North America California

INDUSTRY KEYWORDS:

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