COMMERCIAL CAPITAL BANCORP ANNOUNCES SECOND QUARTER 2006 EARNINGS; IRVINE, Calif. – July 25, 2006 – Commercial Capital Bancorp, Inc. (the “Company”) (NASDAQ: “CCBI”), today announced net income of $13.3 million or $0.22 per diluted share for the second quarter of 2006 and net income of $27.1 million or $0.45 per diluted share for the six months ended June 30, 2006. Additionally today, the Company’s Board of Directors declared a cash dividend of $0.075 per share, payable on August 29, 2006 to shareholders of record on August 15, 2006. The Company’s results for the second quarter includes $1.9 million of expenses related to the Company’s previously announced agreement to merge with and into Washington Mutual, Inc. (“WaMu”) and $2.2 million of expenses related to the Commercial Banking Division. The comparability of the Company’s 2006 results to prior periods is also affected by certain acquisitions that occurred during 2005 and 2006. The Company’s 2006 second quarter results include the operations of North American Exchange Company, which was acquired in May 2005, as well as Calnet Business Bank and Lawyers Asset Management, Inc., which were both acquired in March 2006. The Company also announced today that, at the special meeting of stockholders held earlier today, the Company’s shareholders approved and adopted the Agreement and Plan of Merger dated as of April 23, 2006, pursuant to which WaMu will acquire all of the outstanding shares of the Company. Of the 45,564,338 votes received in aggregate, which votes represent 75.72% of the Company’s total outstanding shares eligible, 97.97% were voted in favor of the acquisition and 1.97% were voted against the acquisition. The merger transaction is expected to close late in the third quarter or early in the fourth quarter of 2006, pending regulatory approval, and satisfaction of other customary closing conditions. The Company is a diversified financial services company with $5.7 billion of total assets, at June 30, 2006. The Company provides depository and lending products and services through Commercial Capital Bank, and provides 1031 exchange services under the TIMCOR Exchange Corporation, North American Exchange Company and Lawyers Asset Management brand names. This press release includes forward-looking statements regarding the consummation of the proposed acquisition of the Company by WaMu. These statements involve certain risks and uncertainties with respect to the satisfaction of the conditions to the closing of the merger transaction and the timing of the closing if it occurs. Such risks and uncertainties include, but are not limited to the governmental approval of the merger, which may not be obtained or, if obtained, may include adverse regulatory conditions. Any forward looking statements speak only as of the date they are made. The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. |
Contact: | |
Commercial Capital Bancorp, Inc. | |
Jeff L. Leonard, SVP Investor Relations | |
Telephone: | (949) 585-7500 |
Facsimile: | (949) 585-0174 |
COMMERCIAL CAPITAL BANCORP, INC. |
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
(Dollars in Thousands) |
|
June 30, 2006 | June 30, 2005 | |||||
ASSETS | ||||||
Cash and Cash Equivalents | $ | 31,594 | $ | 33,812 | ||
Securities Available For Sale | 343,123 | 444,456 | ||||
FHLB Stock | 87,473 | 98,943 | ||||
Loans Held for Investment | ||||||
Single Family | 427,038 | 196,605 | ||||
Multifamily | 3,098,698 | 2,807,503 | ||||
Commercial Real Estate | 723,088 | 518,106 | ||||
Construction | 254,055 | 190,302 | ||||
Land | 92,854 | 43,946 | ||||
Total Real Estate Loans | 4,595,733 | 3,756,462 | ||||
Business and Other Loans | 32,494 | 18,723 | ||||
Total Loans Held for Investment | 4,628,227 | 3,775,185 | ||||
Net Deferred Fees, Premiums and Discounts | 6,469 | (1,815 | ) | |||
Allowance for Loan Losses | (29,953 | ) | (28,731 | ) | ||
Total Loans Held for Investment, Net | 4,604,743 | 3,744,639 | ||||
Loans Held for Sale | 31,828 | 304,723 | ||||
Total Loans | 4,636,571 | 4,049,362 | ||||
Fixed Assets - Net | 11,562 | 16,905 | ||||
Foreclosed Assets | — | — | ||||
Accrued Interest Receivable | 25,069 | 18,872 | ||||
Goodwill | 420,534 | 394,080 | ||||
Core Deposit Intangible | 6,461 | 5,576 | ||||
Bank-Owned Life Insurance | 120,197 | 47,525 | ||||
Affordable Housing Investments | 31,194 | 34,877 | ||||
Other Assets | 24,914 | 35,593 | ||||
TOTAL ASSETS | $ | 5,738,692 | $ | 5,180,001 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Deposits | ||||||
Demand Deposits - Noninterest-Bearing | $ | 225,325 | $ | 127,300 | ||
Demand Deposits - Interest-Bearing | 70,868 | 74,941 | ||||
Money Market Checking | 568,346 | 243,337 | ||||
Money Market Savings | 149,946 | 313,158 | ||||
Savings | 94,993 | 218,573 | ||||
Total Transaction Deposits | 1,109,478 | 977,309 | ||||
Retail Time Deposits | 1,072,509 | 939,410 | ||||
Broker Time Deposits | 200,000 | 115,895 | ||||
Total Time Deposits | 1,272,509 | 1,055,305 | ||||
Total Deposits | 2,381,987 | 2,032,614 | ||||
Borrowings | ||||||
FHLB Advances | 1,719,884 | 1,521,028 | ||||
Exchange Balances | 586,576 | 685,551 | ||||
Junior Subordinated Debentures | 149,671 | 150,253 | ||||
Other Borrowings | 77,000 | 65,000 | ||||
Total Borrowings | 2,533,131 | 2,421,832 | ||||
Other Liabilities | 54,950 | 57,098 | ||||
TOTAL LIABILITIES | 4,970,068 | 4,511,544 | ||||
STOCKHOLDERS' EQUITY | 768,624 | 668,457 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,738,692 | $ | 5,180,001 | ||
Per Share Data | June 30, 2006 | June 30, 2005 | ||||
Common shares outstanding at end of period | 60,242,988 | 55,388,061 | ||||
Book value per share | $ | 12.76 | $ | 12.07 | ||
Tangible book value per share | 5.67 | 4.85 |
COMMERCIAL CAPITAL BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands) |
Three Months Ended | Six Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30, 2006 | June 30, 2005 | June 30, 2006 | June 30, 2005 | |||||||||
Interest Income | ||||||||||||
Loans | $ | 77,429 | $ | 58,540 | $ | 148,272 | $ | 114,445 | ||||
Securities | 4,052 | 4,990 | 8,317 | 10,209 | ||||||||
FHLB Stock | 1,120 | 1,086 | 2,190 | 2,120 | ||||||||
Fed Funds and Other | 124 | 62 | 196 | 145 | ||||||||
Total Interest Income | 82,725 | 64,678 | 158,975 | 126,919 | ||||||||
Interest Expense | ||||||||||||
Deposits | 21,176 | 10,861 | 39,852 | 20,735 | ||||||||
FHLB Advances | 16,210 | 10,923 | 30,763 | 22,067 | ||||||||
Exchange Balances | 2,713 | 1,147 | 4,109 | 1,487 | ||||||||
Junior Subordinated Debentures | 2,904 | 2,307 | 5,648 | 4,350 | ||||||||
Other Borrowings | 920 | 515 | 1,725 | 1,021 | ||||||||
Total Interest Expense | 43,923 | 25,753 | 82,097 | 49,660 | ||||||||
Net Interest Income | 38,802 | 38,925 | 76,878 | 77,259 | ||||||||
Recapture of Allowances for Loan Losses | — | — | — | (8,109 | ) | |||||||
Net Interest Income after Provision for Loan Losses | 38,802 | 38,925 | 76,878 | 85,368 | ||||||||
Noninterest Income | ||||||||||||
Loan Related Fees | 1,405 | 1,519 | 2,561 | 2,577 | ||||||||
Retail Banking Fees | 616 | 509 | 1,183 | 1,041 | ||||||||
Mortgage Banking Fees | 20 | 108 | 98 | 149 | ||||||||
1031 Exchange Fees | 1,131 | 1,347 | 2,056 | 1,720 | ||||||||
Gain on Sale of Loans | 88 | 2,757 | 296 | 3,401 | ||||||||
Other Income | 1,494 | 658 | 3,352 | 1,759 | ||||||||
Total Noninterest Income | 4,754 | 6,898 | 9,546 | 10,647 | ||||||||
Noninterest Expenses | ||||||||||||
Compensation and Benefits | 11,625 | 7,628 | 23,872 | 14,488 | ||||||||
Occupancy and Equipment | 2,749 | 2,052 | 5,247 | 4,212 | ||||||||
Marketing | 406 | 619 | 784 | 1,273 | ||||||||
Technology | 913 | 646 | 1,756 | 1,258 | ||||||||
Professional and Consulting | 2,462 | 694 | 4,263 | 1,192 | ||||||||
Insurance Premiums and Assessment Costs | 647 | 574 | 1,282 | 1,142 | ||||||||
Merger-Related | 1,968 | — | 2,085 | — | ||||||||
Recapture of Reserve for Unfunded Commitments | (46 | ) | — | (47 | ) | (1,490 | ) | |||||
Other Expenses | 3,783 | 3,055 | 7,313 | 5,848 | ||||||||
Total G&A Expenses | 24,507 | 15,268 | 46,555 | 27,923 | ||||||||
Amortization of Core Deposit Intangible | 215 | 162 | 390 | 325 | ||||||||
Total Noninterest Expenses | 24,722 | 15,430 | 46,945 | 28,248 | ||||||||
Income Before Taxes | 18,834 | 30,393 | 39,479 | 67,767 | ||||||||
Income Tax Expense | 5,542 | 11,068 | 12,396 | 25,356 | ||||||||
Net Income | $ | 13,292 | $ | 19,325 | $ | 27,083 | $ | 42,411 | ||||
Performance Ratios and Other Data: | June 30, 2006 | June 30, 2005 | June 30, 2006 | June 30, 2005 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Weighted average shares outstanding — Basic | 59,497,174 | 55,186,788 | 58,290,855 | 55,005,348 | ||||||||
Weighted average shares outstanding — Diluted | 61,093,184 | 57,522,870 | 59,840,298 | 57,401,347 | ||||||||
Earnings per share - Basic | $ | 0.22 | $ | 0.35 | $ | 0.46 | $ | 0.77 | ||||
Earnings per share - Diluted | 0.22 | 0.34 | 0.45 | 0.74 |
COMMERCIAL CAPITAL BANCORP, INC. Average Balances, Net Interest Income, Yields Earned and Rates Paid (Dollars in Thousands) |
Three Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30, 2006 | June 30, 2005 | |||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||
Interest-Earning Assets: | ||||||||||||||||||
Total Loans(1) | $ | 4,637,378 | $ | 77,429 | 6.68 | % | $ | 4,176,721 | $ | 58,540 | 5.61 | % | ||||||
Securities(2) | 367,586 | 4,052 | 4.41 | 456,677 | 4,990 | 4.37 | ||||||||||||
FHLB Stock | 86,948 | 1,120 | 5.17 | 98,289 | 1,086 | 4.42 | ||||||||||||
Cash and Cash Equivalents(3) | 7,446 | 124 | 6.68 | 9,233 | 62 | 2.69 | ||||||||||||
Total Interest-Earning Assets | 5,099,358 | 82,725 | 6.49 | 4,740,920 | 64,678 | 5.46 | ||||||||||||
Noninterest-Earning Assets | 642,485 | 522,387 | ||||||||||||||||
Total Assets | $ | 5,741,843 | $ | 5,263,307 | ||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Transaction Accounts(4) | $ | 899,682 | 7,228 | 3.22 | $ | 852,235 | 3,940 | 1.85 | ||||||||||
Certificates of Deposits | 1,275,671 | 13,948 | 4.39 | 1,061,326 | 6,921 | 2.62 | ||||||||||||
Total Deposits | 2,175,353 | 21,176 | 3.90 | 1,913,561 | 10,861 | 2.28 | ||||||||||||
FHLB Advances | 1,615,944 | 16,210 | 4.02 | 1,745,778 | 10,923 | 2.51 | ||||||||||||
Exchange Balances | 614,946 | 2,713 | 1.77 | 539,222 | 1,147 | 0.85 | ||||||||||||
Junior Subordinated Debentures | 149,767 | 2,904 | 7.78 | 150,348 | 2,307 | 6.15 | ||||||||||||
Other Borrowings (5) | 73,107 | 920 | 5.05 | 69,190 | 515 | 2.99 | ||||||||||||
Total Interest-Bearing Liabilities | 4,629,117 | 43,923 | 3.81 | 4,418,099 | 25,753 | 2.34 | ||||||||||||
Noninterest-Bearing Deposits | 291,464 | 127,561 | ||||||||||||||||
Other Noninterest-Bearing Liabilities | 50,431 | 52,575 | ||||||||||||||||
Total Liabilities | 4,971,012 | 4,598,235 | ||||||||||||||||
Stockholders' Equity | 770,831 | 665,072 | ||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 5,741,843 | $ | 5,263,307 | ||||||||||||||
Net Interest-Earning Assets | $ | 470,241 | $ | 322,821 | ||||||||||||||
Net Interest Income/Interest Rate Spread | $ | 38,802 | 2.68 | % | $ | 38,925 | 3.12 | % | ||||||||||
Net Interest Margin | 3.04 | % | 3.28 | % | ||||||||||||||
(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 BANK, FSB | |||||
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||
(Dollars in Thousands) |
June 30, 2006 | June 30, 2005 | |||||
ASSETS | ||||||
Cash and Cash Equivalents | $ | 31,105 | $ | 29,675 | ||
Securities Available for Sale | 341,739 | 442,782 | ||||
FHLB Stock | 87,473 | 98,943 | ||||
Loans Held For Investment | ||||||
Single Family | 427,038 | 196,605 | ||||
Multifamily | 3,097,948 | 2,804,188 | ||||
Commercial Real Estate | 723,088 | 518,106 | ||||
Construction | 254,055 | 190,302 | ||||
Land | 92,854 | 43,946 | ||||
Total Real Estate Loans | 4,594,983 | 3,753,147 | ||||
Business & Other Loans | 32,405 | 18,610 | ||||
Total Loans Held for Investment | 4,627,388 | 3,771,757 | ||||
Net Deferred Fees, Premiums and Discounts | 7,463 | (25 | ) | |||
Allowance for Loan Losses | (29,953 | ) | (28,731 | ) | ||
Total Loans Held for Investment, Net | 4,604,898 | 3,743,001 | ||||
Loans Held For Sale | 30,873 | 303,754 | ||||
Total Loans | 4,635,771 | 4,046,755 | ||||
Other Assets | 576,039 | 502,369 | ||||
TOTAL ASSETS | $ | 5,672,127 | $ | 5,120,524 | ||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||
Deposits | ||||||
Demand Deposits - Noninterest-Bearing | $ | 260,422 | $ | 222,143 | ||
Demand Deposits - Interest-Bearing | 70,868 | 74,941 | ||||
Money Market Checking | 858,815 | 600,640 | ||||
Money Market Savings | 413,121 | 532,838 | ||||
Savings | 95,327 | 218,665 | ||||
Total Transaction Deposits | 1,698,553 | 1,649,227 | ||||
Total Time Deposits | 1,272,509 | 1,055,305 | ||||
Total Deposits | 2,971,062 | 2,704,532 | ||||
Borrowings | 1,796,884 | 1,586,028 | ||||
Other Liabilities | 49,610 | 58,963 | ||||
TOTAL LIABILITIES | 4,817,556 | 4,349,523 | ||||
STOCKHOLDER'S EQUITY | 854,571 | 771,001 | ||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 5,672,127 | $ | 5,120,524 | ||