Second Quarter 2005
Earnings Call
NASDAQ: CCBI
July 25, 2005
Regulation FD
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.
2
Strong Earnings Performance
Diluted Earnings Per Share
$0.28
$0.40
$0.36
$0.34
$0.32
$-
$0.10
$0.20
$0.30
$0.40
$0.50
6/04
9/04
12/04
3/05
6/05
3
Net Interest Margin
3.38%
3.27%
3.28%
3.51%
3.49%
0%
1%
2%
3%
4%
6/04
9/04
12/04
3/05
6/05
4
Net Interest Margin
Excluding Hawthorne Purchase Accounting Adjustments
3.08%
3.04%
3.17%
3.32%
3.23%
0%
1%
2%
3%
4%
6/04
9/04
12/04
3/05
6/05
5
Profitability Ratios
Return on Average Assets
1.57%
1.50%
1.61%
1.47%
1.78%
0.0%
0.5%
1.0%
1.5%
2.0%
6/04
9/04
12/04
3/05
6/05
6
Profitability Ratios
Return on Average Tangible Assets
1.63%
1.62%
1.73%
1.92%
1.59%
0.0%
0.5%
1.0%
1.5%
2.0%
6/04
9/04
12/04
3/05
6/05
7
Profitability Ratios
Return on Average Equity
12.0%
14.4%
11.6%
17.7%
13.1%
0%
5%
10%
15%
20%
6/04
9/04
12/04
3/05
6/05
8
Profitability Ratios
Return on Average Tangible Equity
28.1%
34.5%
31.6%
30.6%
32.6%
0%
5%
10%
15%
20%
25%
30%
35%
6/04
9/04
12/04
3/05
6/05
9
Balance Sheet
Total Assets
$4.7
$5.0
$5.0
$5.2
$5.3
$-
$1
$2
$3
$4
$5
$6
6/04
9/04
12/04
3/05
6/05
($ in billions)
10
Strong Loan Fundings
Core Loan Fundings
$495.7
$595.1
$599.3
$418.9
$545.0
$-
$100
$200
$300
$400
$500
$600
$700
6/04
9/04
12/04
3/05
6/05
($ in millions)
11
Strong Loan Fundings
Total Loan Fundings
$624.7
$607.8
$540.8
$583.2
$466.7
$-
$100
$200
$300
$400
$500
$600
$700
6/04
9/04
12/04
3/05
6/05
($ in millions)
12
Loan Portfolio Mix
June - 05
Construction
& Land
6%
Business &
Other
<1%
Single Family
12%
Commercial
RE
13%
Multi-Family
69%
March - 05
Single Family
20%
Construction
& Land
7%
Commercial
RE
10%
Multi-Family
63%
Business &
Other
<1%
13
LTV and DCR of
Second Quarter 2005 Fundings
Multi-family
Loan to Value 68.1%
Debt Coverage Ratio 1.20 : 1
Commercial RE
Loan to Value 66.3%
Debt Coverage Ratio 1.65 : 1
Values are weighted average ratios, at funding
14
Adjustable Rate Lender
12 MAT
Prime
6 mo CMT
6 mo Libor
3 mo Libor
1 mo Libor
15
Historical and Forecasted 12-MAT
**12 MAT Calculation and Forecast Based upon Estimated Current Month Average of the 1yr CMT
Forecast Assumption: July Month Average of CMT is 3.59 as of 7/21/2005
Month
1yr CMT
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-04
1.43
1.43
May-04
1.78
1.78
1.78
Jun-04
2.12
2.12
2.12
2.12
Jul-04
2.10
2.10
2.10
2.10
2.10
Aug-04
2.02
2.02
2.02
2.02
2.02
2.02
Sep-04
2.12
2.12
2.12
2.12
2.12
2.12
2.12
Oct-04
2.23
2.23
2.23
2.23
2.23
2.23
2.23
2.23
Nov-04
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
Dec-04
2.67
2.67
2.67
2.67
2.67
2.67
2.67
2.67
2.67
2.67
Jan-05
2.86
2.86
2.86
2.86
2.86
2.86
2.86
2.86
2.86
2.86
2.86
Feb-05
3.03
3.03
3.03
3.03
3.03
3.03
3.03
3.03
3.03
3.03
3.03
3.03
Mar-05
3.30
3.30
3.30
3.30
3.30
3.30
3.30
3.30
3.30
3.30
3.30
3.30
3.30
Apr-05
3.32
3.32
3.32
3.32
3.32
3.32
3.32
3.32
3.32
3.32
3.32
3.32
May-05
3.33
3.33
3.33
3.33
3.33
3.33
3.33
3.33
3.33
3.33
3.33
Jun-05
3.36
3.36
3.36
3.36
3.36
3.36
3.36
3.36
3.36
3.36
Jul-05
3.59
**
3.59
3.59
3.59
3.59
3.59
3.59
3.59
3.59
Aug-05
3.59
**
3.59
3.59
3.59
3.59
3.59
3.59
3.59
Sep-05
3.59
**
3.59
3.59
3.59
3.59
3.59
3.59
Oct-05
3.59
**
3.59
3.59
3.59
3.59
3.59
Nov-05
3.59
**
3.59
3.59
3.59
3.59
Dec-05
3.59
**
3.59
3.59
3.59
Jan-06
3.59
**
3.59
3.59
Feb-06
3.59
**
3.59
Total Avg
2.347
2.504
2.633
2.737
2.861
2.992
3.114
3.228
3.318
3.395
3.456
3.503
Actual
Forecast
16
Changing Deposit Mix
Bank Deposits
56%
50%
52%
55%
61%
$2.5
$2.3
$2.3
$2.4
$2.7
$-
$1
$2
$3
6/04
9/04
12/04
3/05
6/05
Transaction Accounts
Time Deposits
($ in billions)
17
Bank Deposit Composition
June 05
DDA
11%
Savings
8%
CD
39%
Money
Market
42%
March 05
Money
Market
36%
CD
43%
DDA
9%
Savings
12%
18
Changing Borrowing Mix
$2.4
$2.6
$2.1
$2.0
$1.7
$-
$1.0
$2.0
$3.0
6/04
9/04
12/04
3/05
6/05
FHLB Borrowings
Other Borrowings
Exchange Balances
($ in billions)
19
Capital Ratios
Equity to Assets
12.24%
12.90%
12.44%
12.26%
12.29%
0%
5%
10%
15%
6/04
9/04
12/04
3/05
6/05
Tangible Equity to Assets
4.62%
4.94%
5.21%
5.05%
5.19%
0%
2%
4%
6%
6/04
9/04
12/04
3/05
6/05
20
Capital Ratios
Tangible Equity to Tangible Assets
5.00%
5.62%
5.44%
5.62%
5.33%
0%
2%
4%
6%
8%
6/04
9/04
12/04
3/05
6/05
21
Bank Capital Ratio
Tier 1 Core Capital Ratio
7.57%
7.63%
8.01%
8.05%
8.70%
0%
2%
4%
6%
8%
10%
6/04
9/04
12/04
3/05
6/05
22
Per Share Data
Book Value Per Share
$11.78
$10.97
$11.20
$11.47
$12.07
$-
$2
$4
$6
$8
$10
$12
$14
6/04
9/04
12/04
3/05
6/05
23
Per Share Data
Tangible Book Value Per Share
$4.13
$4.80
$4.51
$4.85
$4.86
$1
$2
$3
$4
$5
$6
6/04
9/04
12/04
3/05
6/05
24
Operating Performance
Total Revenues
$36.6
$67.1
$66.0
$60.6
$71.6
$0
$10
$20
$30
$40
$50
$60
$70
$80
6/04
9/04
12/04
3/05
6/05
($ in millions)
25
Operating Performance
Net Interest Income
$22.9
$37.9
$38.5
$38.3
$38.9
$0
$10
$20
$30
$40
$50
6/04
9/04
12/04
3/05
6/05
($ in millions)
26
Operating Performance
Noninterest Income
$3.0
$3.6
$6.7
$3.7
$6.9
$0
$2
$4
$6
$8
6/04
9/04
12/04
3/05
6/05
($ in millions)
27
Operating Performance Ratios
G&A to Average Assets
0.94%
1.01%
0.98%
1.16%
1.05%
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
6/04
9/04
12/04
3/05
6/05
28
Operating Performance Ratios
Efficiency Ratio
25.3%
30.1%
28.1%
30.6%
33.3%
0%
5%
10%
15%
20%
25%
30%
35%
6/04
9/04
12/04
3/05
6/05
29
Earnings Performance
Quarterly Net Income
$10.9
$19.3
$20.2
$18.0
$23.1
$0
$10
$20
$30
6/04
9/04
12/04
3/05
6/05
($ in millions)
30
Second Quarter 2005
Earnings Call
NASDAQ: CCBI
July 25, 2005