October 25, 2004
Third Quarter 2004 Earnings Call
NASDAQ: “CCBI”
This presentation may include forward-looking statements related to the plans, beliefs
and goals of the Company, its subsidiaries, 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 of credit quality, which would cause an increase in the provision for
possible loan and lease losses; changes in the regulatory environment; changes in
business conditions, particularly in California real estate; volatility of rate sensitive
deposits; asset/liability matching risks and liquidity risks; changes in the securities
markets. The Company undertakes no obligation to revise or publicly release any
revision to these forward-looking statements.
Regulation FD
2
28th Largest Thrift in U.S., 6th Largest in CA (source: SNL
Datasource).
CCB was the fastest growing savings institution in
California over the 36 months ended 6/30/04 (source
www.fdic.gov).
3rd largest multi-family originator in CA with 4.6% market
share for the 12 months ended 6/30/04 (source: Dataquick Information
Systems).
One of California’s premier community-based retail
deposit franchises.
Amongst the most efficient operations in the industry.
Franchise Positioned for Strong Growth
3
Statewide Presence
21 Southern California
Banking Offices
(#21 opened in Beverly Hills on October 4, 2004
#22 opens in San Mateo in early 2005
#23 opens in Newport Coast in mid-2005)
11 Statewide Loan Offices
4
CCBI Highlights
5
Financial Position
Sept 30, 2004
June 30, 2004
Total Assets
$4.97 billion
$4.74 billion
Loans Held for Investment
$3.86 billion
$3.65 billion
Deposits
$2.30 billion
$2.44 billion
Equity
$609 million
$583 million
Tangible Equity
$245 million
$219 million
Quarter Ended
Quarter Ended
Financial Results
9/30/2004
6/30/2004
Net Income
$18.0 million
$10.9 million
Return on Average Equity
12.02%
17.66%
Return on Avg.Tang. Equity
30.55%
32.58%
Return on Average Assets
1.50%
1.57%
Net Interest Margin
3.49%
3.51%
Efficiency Ratio
30.59%
25.34%
Total Loan Originations
$583 million
$467 million
$0.17
$0.19
$0.22
$0.28
$0.32
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
9/03
12/03
3/04
6/04
9/04
Diluted Earnings per Share
6
(1) AGR – Annual Growth Rate 9/03 to 9/04
Superior Earnings Performance
Profitability Ratios
$2.78
$2.97
$3.35
$4.13
$4.51
$-
$1.00
$2.00
$3.00
$4.00
$5.00
9/03
12/03
3/04
6/04
9/04
Tangible Book Value per Share
7
(1) AGR – Annual Growth Rate 9/03 to 9/04
Profitability Ratios
$3.22
$3.41
$3.78
$10.97
$11.20
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
9/03
12/03
3/04
6/04
9/04
Book Value Per Share
8
Profitability Ratios
1.58%
1.56%
1.56%
1.57%
1.50%
0.0%
0.5%
1.0%
1.5%
2.0%
9/03
12/03
3/04
6/04
9/04
Return on Average Assets
9
Profitability Ratios
27.9%
28.6%
29.9%
32.6%
30.6%
0%
5%
10%
15%
20%
25%
30%
35%
9/03
12/03
3/04
6/04
9/04
Return on Average Tangible Equity
10
Profitability Ratios
23.8%
24.8%
26.3%
17.7%
12.0%
0%
5%
10%
15%
20%
25%
30%
9/03
12/03
3/04
6/04
9/04
Return on Average Equity
11
($ in billions)
Balance Sheet Growth
$1.45
$1.72
$1.96
$4.74
$4.97
$-
$1
$2
$3
$4
$5
9/03
12/03
3/04
6/04
9/04
Total Assets
12
Loan Originations Support
Balance Sheet Growth
($ in millions)
$243.4
$274.9
$230.1
$418.9
$545.0
$-
$100
$200
$300
$400
$500
$600
9/03
12/03
3/04
6/04
9/04
Core Loan Originations
13
Balance Sheet Growth
89%
$861.8
89%
$1,052.5
87%
$1,202.0
56%
$3,699.6
57%
$3,911.2
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
9/03
12/03
3/04
6/04
9/04
Loans Held for Investment
Multi-Family
All other loans
J
a
14
Loan Portfolio Mix
Loans Held for Investment
$56 mm
Land
1%
$214 mm
Construction
5%
$2,235 mm
Multi-Family
57%
$435 mm
Commercial RE
11%
$958 mm
Single Family
25%
$13 mm
Business Loans
<1%
15
Nationwide
(1)
Western Region
(1)
CCBI
Multi-family
0.12%
0.05%
0.02%
Single-family
0.55%
0.52%
0.46%
Commercial Real Estate
0.77%
0.73%
0.00%
Construction and Land Loans
0.75%
0.92%
0.00%
(1) Based upon 6/30/04 Thrift Financial Reports for nationwide savings institutions
Noncurrent Loans to
Total Loans
Multi-family, Single-family, Commercial Real Estate, Construction and
Land Loans account for 99.7% of the Company's total loans.
16
Asset Quality of Real Estate Loans
Multi-Family
Loan to Value 68.7%
Debt Coverage Ratio 1.28:1
Commercial RE
Loan to Value 65.7%
Debt Coverage Ratio 1.33:1
Single-Family Residential
Loan to Value 64.4%
Values are weighted average ratios, at origination
LTV and DCR of Third Quarter 2004
Originations
17
Consistent Underwriting
Multi-family and Commercial real estate loan originations by
average LTV and DCR
1.29
1.28
1.35
1.32
1.32
1.30
1.27
1.31
1.30
1.33
1.31
1.30
1.33
1.29
1.29
68.4%
67.8%
67.2%
65.1%
66.7%
67.8%
69.7%
69.7%
68.5%
68.4%
70.4%
70.6%
70.0%
68.9%
69.1%
0.50
0.75
1.00
1.25
1.50
Debt Coverage Ratio
Loan to Value
18
Interest Rate Comparison
(Interest Rate, in percent)
CCBI’s loan rates adjust based on 12MAT, 1yr CMT, 6mo LIBOR, 6mo CMT and Prime, plus a margin
19
0.0
0.5
1.0
1.5
2.0
2.5
Jan-03
Apr-03
Jul-03
Oct-03
Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Actual
Forecasted
20
Note: October 2004 1 Year CMT calculated as of October 21, 2004
(Index Rate, in percent)
Historical and Forecasted 1 Year CMT
Investment Securities
31%
33%
26%
11%
10%
0%
5%
10%
15%
20%
25%
30%
35%
9/03
12/03
3/04
6/04
9/04
Securities to Total Assets
21
($ in millions)
Changing Deposit Mix
57%
$2,298.6
60%
$566.4
65%
$645.6
50%
$736.3
52%
$2,443.9
$-
$500
$1,000
$1,500
$2,000
$2,500
9/03
12/03
3/04
6/04
9/04
Total Deposits
Transaction Accounts
Time Deposits
22
Deposit Composition
$173 mm
Demand Deposits
8%
$718 mm
Money Market
Deposits
31%
$294 mm
Savings Deposits
13%
$1,114 mm
Time Deposits
48%
23
Capital Ratios
6.63%
5.92%
5.81%
12.29%
12.26%
0%
2%
4%
6%
8%
10%
12%
14%
9/03
12/03
3/04
6/04
9/04
Equity to Assets
24
5.73%
5.17%
5.14%
4.62%
4.94%
0%
2%
4%
6%
9/03
12/03
3/04
6/04
9/04
Tangible Equity to Assets
Capital Ratios
5.78%
5.20%
5.17%
5.00%
5.33%
0%
2%
4%
6%
9/03
12/03
3/04
6/04
9/04
Tangible Equity to Tangible Assets
25
Bank Capital Ratio
8.28%
7.97%
7.87%
7.58%
7.63%
0%
2%
4%
6%
8%
10%
9/03
12/03
3/04
6/04
9/04
Tier 1 Core Capital Ratio
26
Operating Performance
($ in millions)
$18.5
$20.9
$23.4
$36.6
$60.6
$0
$10
$20
$30
$40
$50
$60
$70
9/03
12/03
3/04
6/04
9/04
Total Revenues
27
($ in millions)
Operating Performance
$10.8
$12.4
$13.8
$22.9
$37.9
$-
$5
$10
$15
$20
$25
$30
$35
$40
9/03
12/03
3/04
6/04
9/04
Net Interest Income
28
Operating Performance
3.33%
3.23%
3.14%
3.51%
3.49%
0%
1%
2%
3%
4%
9/03
12/03
3/04
6/04
9/04
Net Interest Margin
29
Operating Performance
$1.49
$1.43
$1.82
$2.97
$3.62
$0
$1
$2
$3
$4
9/03
12/03
3/04
6/04
9/04
Noninterest Income
30
($ in millions)
Operating Performance Ratios
1.00%
0.90%
0.89%
0.94%
1.05%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
9/03
12/03
3/04
6/04
9/04
G&A to Average Assets
31
Operating Performance Ratios
27.6%
25.8%
25.9%
25.3%
30.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
9/03
12/03
3/04
6/04
9/04
Efficiency Ratio
32
($ in millions)
Earnings Performance
$5.4
$6.2
$7.1
$10.9
$18.0
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
9/03
12/03
3/04
6/04
9/04
Quarterly Net Income
33
October 25, 2004
NASDAQ: “CCBI”
Third Quarter 2004 Earnings Call