EXHIBIT 99.1
Contact: | Stephen H. Gordon | Chairman & CEO | Telephone: (949) 585-7500 | |||
Christopher G. Hagerty | EVP & CFO | Facsimile: (949) 585-0174 |
COMMERCIAL CAPITAL BANCORP, INC. ANNOUNCES RECORD FOURTH
QUARTER EARNINGS OF $0.26 PER SHARE ON NET INCOME OF $6.2 MILLION
– Record Core Loan Originations and Loan Growth –
– Efficiency Ratio Declines Below 26% –
Irvine, CA – January 26, 2004 – Commercial Capital Bancorp, Inc. (“CCBI” or the “Company”), (NASDAQ: “CCBI”), the holding company for Commercial Capital Bank (the “Bank”), announced today record net income of $6.2 million, or $0.26 per diluted share, for the fourth quarter ended December 31, 2003, an increase of 92% and 24%, respectively, from $3.2 million and $0.21 per diluted share, for the fourth quarter of 2002.[1] The Company’s net income for the year ended December 31, 2003 was $20.4 million, or $0.88 per diluted share, an increase of 110% and 31%, respectively, from $9.7 million and $0.67 per diluted share, for the year ended December 31, 2002.1 CCBI’s return on average equity (“ROAE”) and return on average assets (“ROAA”) for the fourth quarter of 2003 were 24.83% and 1.56%, respectively, compared to 29.03% and 1.59% for the fourth quarter of 2002. CCBI’s ROAE and ROAA for the year ended December 31, 2003 were 22.69% and 1.57%, respectively, compared to 27.69% and 1.50%, for the year ended December 31, 2002. During the fourth quarter and year ended December 31, 2003, the market value of the Company’s shares rose 37% and 262%, respectively, which resulted in a dilutive effect on the Company’s earnings per share calculation in accordance with the treasury stock method of accounting for stock options per SFAS No. 128.
Stephen H. Gordon, Chairman and Chief Executive Officer, stated, “The fourth quarter results showed strong growth in loans, deposits, revenues and net income, and the Company’s performance metrics continued to improve, including return on equity, efficiency and G&A. We enter 2004 keenly focused on maturing the deposit franchise, maintaining excellent asset quality, and generating consistent growth in earnings.”
($ in 000’s, except per share data) | Q4 2003 | Q3 2003 | Q4 2002 | Year Ended 12/31/2003 | Year Ended 12/31/2002 | |||||||||||||||
Net income | $ | 6,158 | $ | 5,357 | $ | 3,209 | $ | 20,429 | $ | 9,710 | ||||||||||
Basic EPS1 | 0.27 | 0.24 | 0.22 | 0.93 | 0.71 | |||||||||||||||
Diluted EPS1 | 0.26 | 0.23 | 0.21 | 0.88 | 0.67 | |||||||||||||||
Net interest income | 12,363 | 10,808 | 6,270 | 41,234 | 20,918 | |||||||||||||||
Net interest margin | 3.22 | % | 3.32 | % | 3.27 | % | 3.29 | % | 3.38 | % | ||||||||||
Total revenues | $ | 20,859 | $ | 18,546 | $ | 14,021 | $ | 75,343 | $ | 46,182 | ||||||||||
ROAA | 1.56 | % | 1.58 | % | 1.59 | % | 1.57 | % | 1.50 | % | ||||||||||
ROAE | 24.83 | 23.84 | 29.03 | 22.69 | 27.69 | |||||||||||||||
ROAE—Tangible | 28.59 | 27.89 | 41.16 | 26.53 | 44.06 | |||||||||||||||
Efficiency ratio | 25.82 | 27.55 | 30.62 | 28.06 | 33.74 | |||||||||||||||
Core loan originations | $ | 274,884 | $ | 243,415 | $ | 191,930 | $ | 959,182 | $ | 688,759 |
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Some of the Company’s fourth quarter 2003 highlights and achievements include:
• | The Company’s core loan originations increased 13% to a record $274.9 million from $243.4 million for the third quarter of 2003, and increased 43% from $191.9 million for the fourth quarter of 2002. An additional $29.2 million of loans were funded during the fourth quarter of 2003 through the Company’s strategic alliance with Greystone Servicing Corporation, a Fannie Mae DUS lender, and the Company’s other broker and conduit channels, bringing the Company’s total loan originations for the year to a record $1.11 billion of total loans. |
• | The Company’s loans held for investment increased 22% to $1.05 billion at December 31, 2003, from $857.1 million at September 30, 2003, and increased 123% from $469.2 million at December 31, 2002. The Company retained a record $257.3 million, or a record 94%, of its core loan originations during the fourth quarter of 2003, compared to $221.8 million, or 91%, during the third quarter of 2003, and $82.5 million, or 43%, during the fourth quarter of 2002. The Company continues to display its increased ability to retain a significantly larger percentage of its originations as a result of the previously announced April 1, 2003 realignment of the Company’s lending operations (hereinafter referred to as the “Realignment”). Total loans held for investment grew at an annualized growth rate of 89% during the fourth quarter of 2003. |
• | The Company’s total deposits increased 14% to $645.6 million at December 31, 2003, from $566.4 million at September 30, 2003, and 107% from $312.3 million at December 31, 2002. Transaction accounts increased 20% to $388.0 million at December 31, 2003, from $324.6 million at September 30, 2003, and 110% from $185.2 million at December 31, 2002. At December 31, 2003, transaction accounts represented 60% of total deposits, of which business deposits accounted for 20% of total transaction accounts. The Bank’s recently formed Financial Services Group accounted for $13.8 million of transaction account deposits during its first two months of operations. Total deposits grew at an annualized growth rate of 56% during the fourth quarter of 2003. |
• | The Company’s net interest income increased 14% to $12.4 million for the fourth quarter of 2003 from $10.8 million for the third quarter of 2003, and 97% from $6.3 million for the fourth quarter of 2002. Interest income earned on real estate loans increased 19% to $13.4 million for the fourth quarter of 2003 from $11.3 million for the third quarter of 2003, and 82% from $7.4 million for the fourth quarter of 2002. Interest income from real estate loans grew at an annualized rate of 76% during the fourth quarter of 2003, highlighting the impact of the Realignment. |
• | The Company’s efficiency ratio declined for the fifth consecutive quarter to 25.82% for the fourth quarter of 2003, from 27.55% for the third quarter of 2003, and 30.62% for the fourth quarter of 2002. The Company defines its efficiency ratio as general and administrative expenses as a percentage of net interest income and noninterest income. General and administrative expenses as a percentage of average assets declined for the fifth consecutive quarter to 0.90% for the fourth quarter of 2003 from 1.00% for the third quarter of 2003, and 1.35% for the fourth quarter of 2002, ranking the Company amongst the most efficient financial institutions in the industry. |
• | The Company’s net income increased 15% to $6.2 million for the fourth quarter of 2003, from $5.4 million for the third quarter of 2003, and 92% from $3.2 million for the fourth quarter of 2002. Net income grew at an annualized growth rate of 60% during the fourth quarter of 2003. The Company’s ROAE increased to 24.83% for the fourth quarter of 2003, from 23.84% for the third quarter of 2003. The Company grew tangible book value per share at an annualized rate of 27% during the fourth quarter of 2003. |
• | The Company determined that a provision for loan losses was not required for the fourth quarter of 2003 based on the updated asset quality review completed during the fourth quarter of 2003. At December 31, 2003, nonperforming assets represented 0.01% of total assets, while the allowance for loan losses totaled 3056% of nonperforming assets, and the Company continued to exhibit excellent asset quality, having no nonperforming multi-family or commercial real estate loans, which account for 99% of the Company’s loans held for investment. |
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• | In December 2003, the Company issued an additional $10.0 million of trust preferred securities bearing a rate of interest equal to the three month LIBOR index plus 275 basis points. The proceeds from this issuance were contributed to the Company’s banking subsidiary, Commercial Capital Bank, to support further growth. The Bank’s Tier 1 core capital ratio was further leveraged to 7.97%, while Tier 1 core capital increased to $135.2 million at December 31, 2003, from 8.28% and $116.8 million, respectively, at September 30, 2003, positioning the Bank for anticipated significant growth as the Company enters 2004. |
• | In December 2003, the Bank announced its plan to open a banking office in Beverly Hills, California. The new banking office, to be located at 9454 Wilshire Blvd. at the corner of Beverly Dr. and Wilshire Blvd., will serve the most populous county in California. The Company has an established market presence in Los Angeles County, having already originated and funded approximately $1.7 billion of multi-family and commercial real estate loans and attracted approximately $71 million in deposits at December 31, 2003. The Company also announced its plan to relocate its Riverside banking office to the new University Village, which is bounded by University Avenue and Highway 60 and adjacent to the University of California, Riverside, offering high visibility and excellent foot traffic. |
• | Commercial Capital Bank was the fastest growing bank in California for the 36-month period ended September 30, 2003, according to data available from the FDIC website www.fdic.gov. Additionally, the Company was the fourth largest originator of multi-family loans in California for the 12-month period ended September 30, 2003, according to information available from Dataquick Information Systems. |
NET INTEREST INCOME
The Company’s net interest income increased 97% for both the fourth quarter and year ended December 31, 2003 to $12.4 million and $41.2 million, respectively, from $6.3 million and $20.9 million for the fourth quarter and year ended December 31, 2002, respectively. The Company’s net interest margin was 3.22% and 3.29% for the fourth quarter and year ended December 31, 2003, respectively, compared to 3.27% and 3.38% for the fourth quarter and year ended December 31, 2002, respectively. The Company’s interest rate spread was 3.15% and 3.20% for the fourth quarter and year ended December 31, 2003, respectively, compared to 3.22% and 3.29% for the fourth quarter and year ended December 31, 2002, respectively. The reductions in the Company’s interest rate spread and net interest margin for the periods ended 2003 compared to the periods ended 2002 are primarily a result of the restructuring of the Company’s securities portfolio and it is the Company’s belief that it is well positioned for potentially higher interest rates at some point in the future.
The Company’s yield on interest-earning assets decreased to 5.06% and 5.29% for the fourth quarter and year ended December 31, 2003, respectively, compared to 5.94% and 6.22% for the fourth quarter and year ended December 31, 2002, respectively. The Company’s cost of interest-bearing liabilities decreased to 1.91% and 2.09% for the fourth quarter and year ended December 31, 2003, respectively, compared to 2.72% and 2.93% for the fourth quarter and year ended December 31, 2002, respectively. During the fourth quarter of 2003, the Company’s yield on interest-earning assets declined 18 basis points, while the rate on interest-bearing liabilities declined 7 basis points. The Company’s cost of funds, which includes the effect of noninterest-bearing deposits, decreased to 1.90% and 2.08% for the fourth quarter and year ended December 31, 2003, respectively, compared to 2.70% and 2.90% for the fourth quarter and year ended December 31, 2002.
During the fourth quarter of 2003, the Company continued to take proactive steps to manage its net interest margin and interest rate risk position during this unprecedented period of low interest rates by borrowing $125 million of intermediate term, fixed rate FHLB advances at a weighted average cost of 1.70%. Additionally, the Company utilized gains on sales of securities to offset the penalty incurred to prepay higher cost, short duration, fixed rate FHLB advances. The Company also cut the rate of interest paid on its money market transaction accounts in early December by 5 basis points on balances of $10,000 or more, the full impact of which will be realized beginning in the first quarter of 2004. The Company had an average balance of money market deposits of $347.2 million during the fourth quarter of 2003. Money market deposits totaled $372.3 million at December 31, 2003, an increase of 19% and 111% from $312.5 million and $176.2 million, at September 30, 2003 and December 31, 2002, respectively.
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NONINTEREST INCOME
Noninterest income decreased 45% to $1.4 million for the fourth quarter ended December 31, 2003, compared to $2.6 million for the fourth quarter ended December 31, 2002 primarily due to lower gain on sale of loans. The reduction in gain on sales of loans, despite the increase in originations for the quarter ended December 31, 2003, compared to the same period of 2002, is a result of the Realignment, which enables the Company to retain a greater percentage of its loan originations, which results in recurring net interest income rather than “one-time” noninterest income. Noninterest income increased 20% to $9.2 million for the year ended December 31, 2003, compared to $7.6 million for the year ended December 31, 2002, as the decline in the gain on sale of loans was more than offset by higher gain on sale of securities and higher banking and servicing fees. The Company’s noninterest income included gains on sales of securities of $256,000 and $3.8 million for the fourth quarter and year ended December 31, 2003, respectively, compared to $396,000 and $1.0 million for the fourth quarter and year ended December 31, 2002.
The Company’s noninterest income as a percentage of total revenues, defined as total interest income and noninterest income, was 7% for the fourth quarter of 2003, compared to 8% for the third quarter of 2003, and 19% for the fourth quarter of 2002. As the Company continues to benefit from retaining a significantly increased percentage of its originations as loans held for investment, the ratio of noninterest income to total revenue continues to decline as a result of interest income becoming a significantly larger component of the Company’s revenues and the decrease in revenue from the gain on sale of loans and securities.
NONINTEREST EXPENSES
The Company’s efficiency ratio, which continues to be amongst the lowest in the industry, declined for the fifth consecutive quarter to 25.82% and 28.06% for the fourth quarter and year ended December 31, 2003, respectively, compared to 30.62% and 33.74% for the fourth quarter and year ended December 31, 2002, respectively. The Company’s ratio of general and administrative expenses to total average assets, also amongst the lowest in the industry, declined for the fifth consecutive quarter to 0.90% and 1.09% for the fourth quarter and year ended December 31, 2003, respectively, compared to 1.35% and 1.49% for the fourth quarter and year ended December 31, 2002, respectively.
The Company’s general and administrative expenses totaled $3.6 million and $14.1 million for the fourth quarter and year ended December 31, 2003, respectively, compared to $2.7 million and $9.6 million for the fourth quarter and year ended December 31, 2002, respectively. The increase during the fourth quarter and year ended December 31, 2003 compared to the fourth quarter and year ended December 31, 2002 is primarily due to higher personnel, occupancy, and operational costs, including legal, audit and other professional fees related to the growth and maturation of the Company. During the fourth quarter and year ended December 31, 2003, the Company recorded $58,000 and $1.3 million, respectively, in costs associated with the early extinguishment of fixed-rate FHLB advances, compared to $395,000 and $903,000 for the fourth quarter and year ended December 31, 2002 respectively.
INCOME TAXES
The Company’s effective tax rate declined to 39.49% and 39.33% for the fourth quarter and year ended December 31, 2003, respectively, compared to 40.69% and 40.77% for the fourth quarter and year ended December 31, 2002, respectively. The decline in the Company’s effective tax rate includes the realization of tax benefits from certain multi-family and commercial real estate loans located in California Enterprise Zones, as well as the recognition of affordable housing tax credits.
BALANCE SHEET AND CAPITAL
The Company had total consolidated assets of $1.72 billion at December 31, 2003, an increase of 19% and 103% from $1.45 billion and $849.5 million at September 30, 2003 and December 31, 2002, respectively. The Company experienced a record increase of $190.5 million in loans held for investment during the fourth quarter of 2003, as the Company retained a record 94% of its core loan originations. The Company intends to continue to retain the vast majority of its multi-family and commercial real estate loan originations. Additionally, the Company’s securities portfolio totaled $560.7 million, an increase of 25% and 81% from $449.0 million and $310.1 million at September 30, 2003 and December 31, 2002, respectively. Mortgage-backed securities represented approximately 33% of total
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average interest-earning assets for the fourth quarter of 2003, compared to 37% and 36% for the third quarter of 2003 and the fourth quarter of 2002, respectively. As previously indicated, it is the Company’s current intention to maintain approximately the same percentage mix of loans held for investment and investment securities as currently exists.
The Company’s deposits totaled $645.6 million at December 31, 2003, an increase of 14% and 107% from $566.4 million and $312.3 million at September 30, 2003 and December 31, 2002, respectively. The increase in deposits from December 31, 2002 is primarily attributable to the growth of the Company’s transaction accounts and time deposits. The Company continues to focus on attracting money market deposits and other transaction accounts, which increased $63.5 million to $388.0 million, or 20% during the quarter. Of the Company’s money market deposits at December 31, 2003, the majority was from Orange, Los Angeles, Riverside and San Diego counties, with business deposits accounting for $65.2 million or 18% of the total. During the fourth quarter of 2003, the Bank formed the Financial Services Group, a new business deposit division within Relationship Banking, which attracted approximately $13.8 million of deposits, predominantly transaction account deposits, during its first two months of operations. The Company’s time deposits totaled $257.6 million at December 31, 2003, an increase of 6% and 103% from $241.9 million and $127.1 million at September 30, 2003 and December 31, 2002, respectively.
Borrowings totaled $963.3 million, an increase of 27% and 113% from $755.6 million and $452.0 million at September 30, 2003 and December 31, 2002, respectively. FHLB advances totaled $822.5 million, an increase of 20% and 184% from $686.6 million and $289.1 million at September 30, 2003 and December 31, 2002, respectively. During the quarter, the Company utilized the opportunity presented by the current interest rate environment to lower the cost of its liabilities at extraordinarily low rates, in anticipation that rates may rise at some point in the future. In December 2003, the Company issued an additional $10.0 million of trust preferred securities bearing a rate of interest equal to the three month LIBOR index plus 275 basis points. The initial interest rate was established at 3.92%. The proceeds from this issuance were contributed to the Bank, to support further growth. The Company’s loans held for sale continue to be funded by a warehouse line of credit.
Stockholders’ equity totaled $102.0 million, an increase of 6% and 31% from $96.1 million and $77.6 million at September 30, 2003, and December 31, 2002, respectively. The Company’s ratios of equity to assets and tangible equity to assets were 5.92% and 5.17%, respectively, at December 31, 2003. The Company’s tangible equity per share grew at an annualized growth rate of 27% during the fourth quarter of 2003.
In addition, the capital ratios of the Bank continued to exceed federal regulatory requirements for classification as a “well-capitalized” institution, the highest regulatory standard, with an estimated Tier 1 core capital ratio of 7.97% and Tier 1 core capital of $135.2 million at December 31, 2003, compared to 8.28% and $116.8 million at September 30, 2003, respectively. The increase in the Bank’s Tier 1 core capital from the prior period is a result of the Bank’s earnings and the contribution of capital from its parent, primarily from the issuance of trust preferred securities.
LOAN ORIGINATIONS
The Company’s core loan originations were a record $274.9 million during the fourth quarter of 2003, an increase of 13% and 43% from $243.4 million and $191.9 million, for the third quarter of 2003 and fourth quarter of 2002, respectively. The Company’s consolidated loan originations, which include loans that were funded through the Company’s strategic alliance with Greystone Servicing Corporation, a Fannie Mae DUS lender, and the Company’s other broker and conduit channels totaled $304.0 million during the fourth quarter of 2003, a decrease of 8% and an increase of 52% from $331.4 million and $200.3 million for the third quarter of 2003 and fourth quarter of 2002, respectively. The Company’s consolidated loan originations increased 46% to a record $1.11 billion during the year ended December 31, 2003, from $760.7 million for the year ended December 31, 2002. The value of loans in the Company’s aggregate loan pipeline totaled $213.5 million at January 1, 2004, compared to $320.2 million and $181.5 million at October 1, 2003 and January 1, 2003, respectively. The Company has originated, from its inception through December 31, 2003, approximately $3.1 billion in loans.
The Realignment resulted in the Bank becoming the originator of most of the Company’s loans, and enabled the Bank to hold a significantly increased percentage of the Company’s loan originations. The Company retained for investment a record 94%, or $257.3 million, of its core originations for the fourth quarter ended December 31, 2003, compared to 91%, or $221.8 million, for the third quarter ended September 30, 2003, and 43%, or $82.5 million, for
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the fourth quarter of 2002. Commercial Capital Mortgage (“CCM”), the Company’s mortgage banking subsidiary, continues to actively maintain and utilize its independent, third-party provided, warehouse line of credit to fund and sell those loans which the Bank elects to assign to CCM for reasons which may include the Bank’s loans to one borrower limits, capital constraints, geographic concentrations or for other reasons as determined by management.
PORTFOLIO ASSET QUALITY
The Company’s average loan size for the multi-family and commercial real estate loans held for investment portfolios at December 31, 2003 was $1.4 million and $1.3 million, respectively. At December 31, 2003, the Company’s multi-family real estate loans held for investment, at origination, had a weighted average loan to value ratio of 67.7%, and a weighted average debt coverage ratio of 1.30, and commercial real estate loans, at origination, had a weighted average loan to value ratio of 65.0%, and a weighted average debt coverage ratio of 1.38. The Company had one nonaccrual loan, a commercial business line of credit, with a $129,000 outstanding balance as of December 31, 2003, which is the only nonperforming asset at that date. The loan is currently performing in accordance with its restructuring agreement and its outstanding balance has declined from $175,000 at September 30, 2003. Nonperforming assets represented 0.01% of total assets at December 31, 2003. The Company had no nonperforming or nonaccrual loans at December 31, 2002.
The Company’s comprehensive asset quality review, performed during the fourth quarter of 2003, was based on its enhanced asset classification process. The Company used this current information, along with other qualitative and quantitative factors, updated industry and peer comparison data to calculate the allowance for loan losses. This comprehensive review indicated that a provision for loan losses for the fourth quarter of 2003 was not required and that the allowance for loan losses is adequate to cover potential losses inherent in the loan portfolio. Future additions to the allowance for loan losses may be required as a result of the factors described below.
Management establishes the allowance for loan losses commencing with the credit quality and historical performance of the Company’s multi-family and commercial real estate loan portfolio, which accounts for 99% of the loan portfolio and has not resulted in any delinquencies more than one payment past due, non-performing loans, adverse classifications or losses. The Company’s overall asset quality remained sound, as supported by its internal risk rating process. The multi-family and commercial real estate loan portfolio is more seasoned and continues to be subjected to a comprehensive asset quality review and asset classification process. Management establishes the allowance for loan losses based on the analysis of the overall asset quality of the loan portfolio, qualitative environmental risk factors and peer analysis.
The allowance for loan losses is derived by analyzing the historical loss experience and asset quality within each loan portfolio segment, along with assessing qualitative environmental factors, and correlating it with the delinquency and classification status for each portfolio segment. Management utilizes a loan grading system with five classification categories, including assets classified as Pass, based upon credit risk characteristics and categorizes each loan asset by risk grade allowing for a more consistent review of similar loan assets. Management has also evaluated the loss exposure of classified loans, which are also reviewed individually based on the evaluation of the cash flow, collateral, other sources of repayment, guarantors and any other relevant factors to determine the inherent loss potential in the credit.
Management considers the following qualitative environmental factors in determining the allocated loss factors when analyzing the allowance for loan losses: the levels of and trends in past due, non-accrual and impaired loans; levels of and trends in charge-offs and recoveries; the trend in volume and terms of loans; the effects of changes in credit concentrations; the effects of changes in risk selection and underwriting standards, and other changes in lending policies, procedures and practices; the experience, ability and depth of management and other relevant staff; national and local economic trends and conditions; and industry conditions.
The overall adequacy of the allowance for loan losses is reviewed by the Bank’s Internal Asset Review Committee on a quarterly basis and submitted to the Board of Directors for approval. The Internal Asset Review Committee’s responsibilities consist of risk management, as well as problem loan management, which include ensuring proper risk grading of all loans and analysis of specific allocations for all classified loans.
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CCBI, headquartered in Irvine, CA, is a multifaceted financial services company which provides financial services to meet the needs of its client base, which includes income-property real estate investors, middle market commercial businesses, and high net-worth individuals, families and professionals. At December 31, 2003, CCBI had total assets of $1.7 billion, was the 4th largest multi-family lender in California during the 12 months ended September 30, 2003 (source: Dataquick Information Systems) and had originated approximately $3.1 billion in multi-family and commercial real estate loans through December 31, 2003. Commercial Capital Bank, the Company’s bank subsidiary, was the fastest growing banking organization in California, based on percentage growth in total assets over the 36 months ended September 30, 2003 (source: www.fdic.gov). The Bank has full service banking offices located at the Company’s headquarters in Irvine, Rancho Santa Margarita, Riverside, and La Jolla and loan origination offices in Sacramento, Corte Madera (Marin County), Oakland, Burlingame, Woodland Hills, Encino, Los Angeles, Irvine, and La Jolla, California, and plans to open a banking office in Beverly Hills, California in the second quarter of 2004.
CONFERENCE CALL AND WEBCAST INFORMATION
Analysts and investors may listen to a discussion of the fourth quarter of 2003 performance and participate in the question/answer session either by dialing the phone number listed below, or through viewing a live video webcast of the discussion accessed through a link on the home page of the Company’s website atwww.commercialcapital.com. The multimedia webcast enables participants to listen to the discussion and simultaneously view the video broadcast, tables, charts, an outline of the performance highlights, and submit questions for live response from the hosts. Either Real Media or Windows Media player is required for viewing the video webcast.
Conference Call | Webcast | |
Date: Monday, January 26, 2004 | Date: Monday, January 26, 2004 | |
Time: 7:30 a.m. PST (10:30 a.m. EST) | Time: 7:30 a.m. PST (10:30 a.m. EST) | |
Phone Number (800) 901-5231 | Webcast URL:www.commercialcapital.com | |
Access Code: 25850883 | Real Media or Windows Media player required |
Replay information: for those who are unable to participate in the call or webcast, an archive of the webcast will be available on the Company’s site atwww.commercialcapital.com beginning approximately 2 hours following the end of the call. The archive will be available until March 7, 2004.
It is recommended that participants dial into the call, or log in to the webcast, approximately 5 to 10 minutes prior to the event.
This press release and aforementioned webcast may include forward-looking statements (related to each company’s plans, beliefs and goals), 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; and changes in the securities markets. CCBI undertakes no obligation to revise or publicly release any revision to these forward-looking statements.
1 | Per-share data has been adjusted to reflect the 3-for-2 stock split completed on September 29, 2003. |
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COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in Thousands, except per share data)
Dec. 31, 2003 | Dec. 31, 2002 | |||||||
ASSETS | ||||||||
Cash and Bank Accounts | $ | 4,066 | $ | 3,408 | ||||
Fed Funds | — | — | ||||||
Securities | ||||||||
MBS—Held To Maturity | — | 2,042 | ||||||
MBS—Available For Sale | 560,629 | 307,932 | ||||||
Other Investments—Available For Sale | 100 | 100 | ||||||
Total Securities | 560,729 | 310,074 | ||||||
FHLB Stock | 41,517 | 15,701 | ||||||
Loans Held for Investment | ||||||||
Single Family | 3,193 | 4,134 | ||||||
Multifamily | 935,063 | 399,928 | ||||||
Commercial Real Estate | 108,560 | 57,858 | ||||||
Total Real Estate Loans | 1,046,816 | 461,920 | ||||||
Business Loans | 2,441 | 4,531 | ||||||
Business & Consumer Lines of Credit | 3,229 | 5,386 | ||||||
Consumer Loans | 41 | 129 | ||||||
Total Loans | 1,052,527 | 471,966 | ||||||
Premiums on Loans Purchased | 67 | 167 | ||||||
Unearned Net Loan Fees and Discounts | (1,020 | ) | (231 | ) | ||||
Allowance for Loan Losses | (3,942 | ) | (2,716 | ) | ||||
Total Loans Held for Investment, Net | 1,047,632 | 469,186 | ||||||
Loans Held for Sale | 14,893 | 18,338 | ||||||
Fixed Assets—net | 1,534 | 976 | ||||||
Foreclosed Assets | — | — | ||||||
Accrued Interest Receivable | 6,827 | 3,543 | ||||||
Goodwill | 13,035 | 13,035 | ||||||
Other Assets | 32,906 | 15,208 | ||||||
TOTAL ASSETS | $ | 1,723,139 | $ | 849,469 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits | ||||||||
Demand Deposit | $ | 13,067 | $ | 6,905 | ||||
Money Market | 372,273 | 176,194 | ||||||
Savings | 2,700 | 2,109 | ||||||
Total Transaction Deposits | 388,040 | 185,208 | ||||||
Retail Time Deposits | 189,566 | 109,029 | ||||||
Broker Time Deposits | 67,990 | 18,042 | ||||||
Total Time Deposits | 257,556 | 127,071 | ||||||
Total Deposits | 645,596 | 312,279 | ||||||
Borrowings | ||||||||
FHLB Advances | 822,519 | 289,139 | ||||||
Securities Sold Under Agreements to Repurchase | 74,475 | 110,993 | ||||||
Trust Preferred Securities | 52,500 | 35,000 | ||||||
Warehouse Line of Credit | 13,794 | 16,866 | ||||||
Total Borrowings | 963,288 | 451,998 | ||||||
Other Liabilities | 12,213 | 7,589 | ||||||
TOTAL LIABILITIES | 1,621,097 | 771,866 | ||||||
STOCKHOLDERS’ EQUITY | 102,042 | 77,603 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,723,139 | $ | 849,469 | ||||
Operating Data | ||||||||
Performance Ratios and Other Data: | Dec. 31, 2003 | Dec. 31, 2002 | ||||||
Equity to assets at end of period | 5.92 | % | 9.14 | % | ||||
Tangible equity to assets at end of period | 5.17 | 7.60 | ||||||
Nonperforming assets | $ | 129 | $ | — | ||||
Nonperforming assets to total assets | 0.01 | % | NM | |||||
Allowance for loan losses to total loans held for investment at end of period | 0.37 | % | 0.58 | % | ||||
Allowance for loan losses to nonperforming assets | 3056 | % | NM | |||||
Per Share Data | ||||||||
Common shares outstanding at end of period (1) | 22,467,279 | 20,968,287 | ||||||
Book value per share (1) | $ | 4.54 | $ | 3.70 | ||||
Tangible book value per share (1) | 3.96 | 3.08 |
(1) | share data has been adjusted to reflect a 3-for-2 stock split on September 29, 2003. |
NM—Not meaningful data
8
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands, except per share data)
THREE MONTHS ENDED | ||||||||
Dec. 31, 2003 | Dec. 31, 2002 | |||||||
Interest Income | ||||||||
Real Estate Loans | $ | 13,449 | $ | 7,389 | ||||
Other Loans | 144 | 211 | ||||||
Investments | 5,832 | 3,806 | ||||||
Total Interest Income | 19,425 | 11,406 | ||||||
Interest Expense | ||||||||
Deposits | 2,880 | 2,135 | ||||||
FHLB Advances | 3,362 | 1,817 | ||||||
Repurchase Agreements | 179 | 459 | ||||||
Trust Preferred Securities | 534 | 503 | ||||||
Warehouse Line Advances | 107 | 222 | ||||||
Total Interest Expense | 7,062 | 5,136 | ||||||
Net Interest Income | 12,363 | 6,270 | ||||||
Provision for Loan Losses | — | 358 | ||||||
Net Interest Income after Provision for Loan Losses | 12,363 | 5,912 | ||||||
Noninterest Income | ||||||||
Gain on Sale of Loans | 424 | 1,595 | ||||||
Mortgage Banking Fees | 136 | 53 | ||||||
Banking and Servicing Fees | 438 | 159 | ||||||
Trust Fees | 28 | 62 | ||||||
Bank-owned Life Insurance Income | 152 | 157 | ||||||
Securities Brokerage Fees | — | 193 | ||||||
Gain on Sale of Securities | 256 | 396 | ||||||
Total Noninterest Income | 1,434 | 2,615 | ||||||
Noninterest Expenses | ||||||||
Compensation and Benefits | 2,008 | 1,583 | ||||||
Severance | — | — | ||||||
Non-Cash Stock Compensation | — | 35 | ||||||
Occupancy | 267 | 199 | ||||||
General Operating | 1,287 | 904 | ||||||
Total G&A Expenses | 3,562 | 2,721 | ||||||
Early Extinguishment of Debt | 58 | 395 | ||||||
Total Noninterest Expenses | 3,620 | 3,116 | ||||||
Income Before Taxes | 10,177 | 5,411 | ||||||
Income Tax Expense | 4,019 | 2,202 | ||||||
Net Income | $ | 6,158 | $ | 3,209 | ||||
Operating Data | THREE MONTHS ENDED | |||||||
Performance Ratios and Other Data: | Dec. 31, 2003 | Dec. 31, 2002 | ||||||
Earnings per share—Basic(1) | $ | 0.27 | $ | 0.22 | ||||
Earnings per share—Diluted(1) | 0.26 | 0.21 | ||||||
Weighted average shares outstanding —Basic(1) | 22,438,188 | 14,435,598 | ||||||
Weighted average shares outstanding —Diluted(1) | 24,005,311 | 15,464,916 | ||||||
Return on average assets | 1.56 | % | 1.59 | % | ||||
Return on average stockholders’ equity | 24.83 | 29.03 | ||||||
Return on average tangible stockholders’ equity | 28.59 | 41.16 | ||||||
Interest rate spread | 3.15 | 3.22 | ||||||
Net interest margin | 3.22 | 3.27 | ||||||
Efficiency ratio | 25.82 | 30.62 | ||||||
G&A to average assets | 0.90 | 1.35 | ||||||
Effective tax rate | 39.49 | 40.69 | ||||||
Total loan originations | $ | 304,039 | $ | 200,258 | ||||
Core loan originations | 274,884 | 191,930 | ||||||
Broker/conduit originations | 29,155 | 8,328 | ||||||
Core loan originations retained | 257,289 | 82,530 | ||||||
Percent of core loan originations retained | 94 | % | 43 | % | ||||
Charge-offs (Recoveries) | (4 | ) | — |
(1) | share data has been adjusted to reflect a 3-for-2 stock split on September 29, 2003. |
9
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands, except per share data)
YEAR ENDED | ||||||||
Dec. 31, 2003 | Dec. 31, 2002 | |||||||
Interest Income | ||||||||
Real Estate Loans | $ | 43,304 | $ | 24,504 | ||||
Other Loans | 574 | 747 | ||||||
Investments | 22,296 | 13,316 | ||||||
Total Interest Income | 66,174 | 38,567 | ||||||
Interest Expense | ||||||||
Deposits | 10,099 | 6,651 | ||||||
FHLB Advances | 10,975 | 6,162 | ||||||
Repurchase Agreements | 1,108 | 1,916 | ||||||
Trust Preferred Securities | 1,876 | 1,794 | ||||||
Warehouse Line Advances | 882 | 1,126 | ||||||
Total Interest Expense | 24,940 | 17,649 | ||||||
Net Interest Income | 41,234 | 20,918 | ||||||
Provision for Loan Losses | 1,286 | 1,609 | ||||||
Net Interest Income after Provision for Loan Losses | 39,948 | 19,309 | ||||||
Noninterest Income | ||||||||
Gain on Sale of Loans | 2,168 | 4,577 | ||||||
Mortgage Banking Fees | 740 | 439 | ||||||
Banking and Servicing Fees | 1,351 | 403 | ||||||
Trust Fees | 307 | 198 | ||||||
Bank-owned life insurance income | 617 | 315 | ||||||
Securities Brokerage Fees | 171 | 657 | ||||||
Gain on Sale of Securities | 3,815 | 1,026 | ||||||
Total Noninterest Income | 9,169 | 7,615 | ||||||
Noninterest Expenses | ||||||||
Compensation and Benefits | 7,658 | 5,287 | ||||||
Severance | 671 | — | ||||||
Non-Cash Stock Compensation | 353 | 139 | ||||||
Occupancy | 920 | 682 | ||||||
General Operating | 4,543 | 3,520 | ||||||
Total G&A Expenses | 14,145 | 9,628 | ||||||
Early Extinguishment of Debt | 1,301 | 903 | ||||||
Total Noninterest Expenses | 15,446 | 10,531 | ||||||
Income Before Taxes | 33,671 | 16,393 | ||||||
Income Tax Expense | 13,242 | 6,683 | ||||||
Net Income | $ | 20,429 | $ | 9,710 | ||||
Operating Data | YEAR ENDED | |||||||
Performance Ratios and Other Data: | Dec. 31, 2003 | Dec. 31, 2002 | ||||||
Earnings per share—Basic(1) | $ | 0.93 | $ | 0.71 | ||||
Earnings per share—Diluted(1) | 0.88 | 0.67 | ||||||
Weighted average shares outstanding —Basic(1) | 21,996,967 | 13,673,526 | ||||||
Weighted average shares outstanding —Diluted(1) | 23,333,406 | 14,593,377 | ||||||
Return on average assets | 1.57 | % | 1.50 | % | ||||
Return on average stockholders’ equity | 22.69 | 27.69 | ||||||
Return on average tangible stockholders’ equity | 26.53 | 44.06 | ||||||
Interest rate spread | 3.20 | 3.29 | ||||||
Net interest margin | 3.29 | 3.38 | ||||||
Efficiency ratio | 28.06 | 33.74 | ||||||
G&A to average assets | 1.09 | 1.49 | ||||||
Effective tax rate | 39.33 | 40.77 | ||||||
Total loan originations | $ | 1,109,502 | $ | 760,745 | ||||
Core loan originations | 959,182 | 688,759 | ||||||
Broker/conduit originations | 150,320 | 71,986 | ||||||
Core loan originations retained | 768,009 | 338,616 | ||||||
Percent of core loan originations retained | 80 | % | 45 | % | ||||
Charge-offs (Recoveries) | 60 | — |
(1) | share data has been adjusted to reflect a 3-for-2 stock split on September 29, 2003. |
10
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in Thousands, except per share data)
Dec. 31, 2003 | Sept. 30, 2003 | June 30, 2003 | Mar. 31, 2003 | Dec. 31, 2002 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and Bank Accounts | $ | 4,066 | $ | 8,347 | $ | 2,218 | $ | 3,680 | $ | 3,408 | ||||||||||
Fed Funds | — | 20,500 | — | 18,400 | — | |||||||||||||||
Securities | ||||||||||||||||||||
MBS—Held To Maturity | — | — | — | 2,036 | 2,042 | |||||||||||||||
MBS—Available For Sale | 560,629 | 448,859 | 581,106 | 444,754 | 307,932 | |||||||||||||||
Other Investments—Available For Sale | 100 | 101 | 101 | 101 | 100 | |||||||||||||||
Total Securities | 560,729 | 448,960 | 581,207 | 446,891 | 310,074 | |||||||||||||||
FHLB Stock | 41,517 | 35,395 | 30,282 | 22,272 | 15,701 | |||||||||||||||
Loans Held for Investment | ||||||||||||||||||||
Single Family | 3,193 | 2,754 | 3,239 | 3,855 | 4,134 | |||||||||||||||
Multifamily | 935,063 | 764,996 | 610,202 | 496,627 | 399,928 | |||||||||||||||
Commercial Real Estate | 108,560 | 83,687 | 78,620 | 65,630 | 57,858 | |||||||||||||||
Total Real Estate Loans | 1,046,816 | 851,437 | 692,061 | 566,112 | 461,920 | |||||||||||||||
Business Loans | 2,441 | 2,773 | 3,094 | 4,221 | 4,531 | |||||||||||||||
Business & Consumer Lines of Credit | 3,229 | 7,578 | 6,185 | 5,986 | 5,386 | |||||||||||||||
Consumer Loans | 41 | 46 | 79 | 61 | 129 | |||||||||||||||
Total Loans | 1,052,527 | 861,834 | 701,419 | 576,380 | 471,966 | |||||||||||||||
Premiums on Loans Purchased | 67 | 88 | 115 | 142 | 167 | |||||||||||||||
Unearned Net Loan Fees and Discounts | (1,020 | ) | (896 | ) | (577 | ) | (353 | ) | (231 | ) | ||||||||||
Allowance for Loan Losses | (3,942 | ) | (3,938 | ) | (4,002 | ) | (3,325 | ) | (2,716 | ) | ||||||||||
Total Loans Held for Investment, Net | 1,047,632 | 857,088 | 696,955 | 572,844 | 469,186 | |||||||||||||||
Loans Held for Sale | 14,893 | 26,514 | 54,890 | 76,994 | 18,338 | |||||||||||||||
Fixed Assets—net | 1,534 | 1,400 | 1,023 | 933 | 976 | |||||||||||||||
Foreclosed Assets | — | — | — | — | — | |||||||||||||||
Accrued Interest Receivable | 6,827 | 5,514 | 5,622 | 4,612 | 3,543 | |||||||||||||||
Goodwill | 13,035 | 13,035 | 13,035 | 13,035 | 13,035 | |||||||||||||||
Other Assets | 32,906 | 32,835 | 26,589 | 13,218 | 15,208 | |||||||||||||||
TOTAL ASSETS | $ | 1,723,139 | $ | 1,449,588 | $ | 1,411,821 | $ | 1,172,879 | $ | 849,469 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand Deposit | $ | 13,067 | $ | 9,685 | $ | 9,916 | $ | 8,661 | $ | 6,905 | ||||||||||
Money Market | 372,273 | 312,501 | 278,542 | 222,192 | 176,194 | |||||||||||||||
Savings | 2,700 | 2,365 | 3,553 | 3,942 | 2,109 | |||||||||||||||
Total Transaction Deposits | 388,040 | 324,551 | 292,011 | 234,795 | 185,208 | |||||||||||||||
Retail Time Deposits | 189,566 | 183,742 | 189,433 | 135,198 | 109,029 | |||||||||||||||
Broker Time Deposits | 67,990 | 58,117 | 48,123 | 38,052 | 18,042 | |||||||||||||||
Total Time Deposits | 257,556 | 241,859 | 237,556 | 173,250 | 127,071 | |||||||||||||||
Total Deposits | 645,596 | 566,410 | 529,567 | 408,045 | 312,279 | |||||||||||||||
Borrowings | ||||||||||||||||||||
FHLB Advances | 822,519 | 686,562 | 606,733 | 408,097 | 289,139 | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 74,475 | — | 68,840 | 134,488 | 110,993 | |||||||||||||||
Trust Preferred Securities | 52,500 | 42,500 | 35,000 | 35,000 | 35,000 | |||||||||||||||
Warehouse Lines of Credit | 13,794 | 26,512 | 54,967 | 71,098 | 16,866 | |||||||||||||||
Total Borrowings | 963,288 | 755,574 | 765,540 | 648,683 | 451,998 | |||||||||||||||
Other Liabilities | 12,213 | 31,502 | 25,368 | 31,366 | 7,589 | |||||||||||||||
TOTAL LIABILITIES | 1,621,097 | 1,353,486 | 1,320,475 | 1,088,094 | 771,866 | |||||||||||||||
STOCKHOLDERS’ EQUITY | 102,042 | 96,102 | 91,346 | 84,785 | 77,603 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,723,139 | $ | 1,449,588 | $ | 1,411,821 | $ | 1,172,879 | $ | 849,469 | ||||||||||
Operating Data | ||||||||||||||||||||
Performance Ratios and Other Data: | Dec. 31, 2003 | Sept. 30, 2003 | June 30, 2003 | Mar. 31, 2003 | Dec. 31, 2002 | |||||||||||||||
Equity to assets at end of period | 5.92 | % | 6.63 | % | 6.47 | % | 7.23 | % | 9.14 | % | ||||||||||
Tangible equity to assets at end of period | 5.17 | 5.73 | 5.55 | 6.12 | 7.60 | |||||||||||||||
Nonperforming assets | $ | 129 | $ | 175 | $ | 205 | $ | 225 | $ | — | ||||||||||
Nonperforming assets to total assets | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | NM | |||||||||||
Allowance for loan losses to total loans held for investment at end of period | 0.37 | % | 0.46 | % | 0.57 | % | 0.58 | % | 0.58 | % | ||||||||||
Allowance for loan losses to nonperforming assets | 3056 | % | 2250 | % | 1952 | % | 1478 | % | NM | |||||||||||
Per Share Data | ||||||||||||||||||||
Common shares outstanding at end of period (1) | 22,467,279 | 22,394,899 | 21,956,796 | 21,532,287 | 20,968,287 | |||||||||||||||
Book value per share (1) | $ | 4.54 | $ | 4.29 | $ | 4.16 | $ | 3.94 | $ | 3.70 | ||||||||||
Tangible book value per share (1) | 3.96 | 3.71 | 3.57 | 3.33 | 3.08 |
(1) | share data has been adjusted to reflect a 3-for-2 stock split on September 29, 2003. |
NM—Not meaningful data
11
COMMERCIAL CAPITAL BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands, except per share data)
THREE MONTHS ENDED | ||||||||||||||||||||
Dec. 31, 2003 | Sept. 30, 2003 | June 30, 2003 | Mar. 31, 2003 | Dec. 31, 2002 | ||||||||||||||||
Interest Income | ||||||||||||||||||||
Real Estate Loans | $ | 13,449 | $ | 11,293 | $ | 10,154 | $ | 8,408 | $ | 7,389 | ||||||||||
Other Loans | 144 | 132 | 155 | 143 | 211 | |||||||||||||||
Investments | 5,832 | 5,635 | 5,989 | 4,840 | 3,806 | |||||||||||||||
Total Interest Income | 19,425 | 17,060 | 16,298 | 13,391 | 11,406 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 2,880 | 2,676 | 2,540 | 2,003 | 2,135 | |||||||||||||||
FHLB Advances | 3,362 | 2,941 | 2,557 | 2,115 | 1,817 | |||||||||||||||
Repurchase Agreements | 179 | 76 | 384 | 469 | 459 | |||||||||||||||
Trust Preferred Securities | 534 | 438 | 448 | 456 | 503 | |||||||||||||||
Warehouse Line Advances | 107 | 121 | 370 | 284 | 222 | |||||||||||||||
Total Interest Expense | 7,062 | 6,252 | 6,299 | 5,327 | 5,136 | |||||||||||||||
Net Interest Income | 12,363 | 10,808 | 9,999 | 8,064 | 6,270 | |||||||||||||||
Provision for Loan Losses | — | — | 677 | 609 | 358 | |||||||||||||||
Net Interest Income after Provision for Loan Losses | 12,363 | 10,808 | 9,322 | 7,455 | 5,912 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Gain on Sale of Loans | 424 | 198 | 571 | 975 | 1,595 | |||||||||||||||
Mortgage Banking Fees | 136 | 244 | 285 | 75 | 53 | |||||||||||||||
Banking and Servicing Fees | 438 | 335 | 383 | 195 | 159 | |||||||||||||||
Trust Fees | 28 | 88 | 96 | 95 | 62 | |||||||||||||||
Bank-owned life insurance income | 152 | 213 | 145 | 107 | 157 | |||||||||||||||
Securities Brokerage Fees | — | 13 | 37 | 121 | 193 | |||||||||||||||
Gain on Sale of Securities | 256 | 395 | 1,517 | 1,647 | 396 | |||||||||||||||
Total Noninterest Income | 1,434 | 1,486 | 3,034 | 3,215 | 2,615 | |||||||||||||||
Noninterest Expenses | ||||||||||||||||||||
Compensation and Benefits | 2,008 | 2,019 | 2,127 | 1,504 | 1,583 | |||||||||||||||
Severance | — | — | 241 | 430 | — | |||||||||||||||
Non-Cash Stock Compensation | — | — | 145 | 208 | 35 | |||||||||||||||
Occupancy | 267 | 247 | 205 | 201 | 199 | |||||||||||||||
General Operating | 1,287 | 1,121 | 1,085 | 1,050 | 904 | |||||||||||||||
Total G&A Expenses | 3,562 | 3,387 | 3,803 | 3,393 | 2,721 | |||||||||||||||
Early Extinguishment of Debt | 58 | 320 | 771 | 152 | 395 | |||||||||||||||
Total Noninterest Expenses | 3,620 | 3,707 | 4,574 | 3,545 | 3,116 | |||||||||||||||
Income Before Taxes | 10,177 | 8,587 | 7,782 | 7,125 | 5,411 | |||||||||||||||
Income Tax Expense | 4,019 | 3,230 | 3,107 | 2,886 | 2,202 | |||||||||||||||
Net Income | $ | 6,158 | $ | 5,357 | $ | 4,675 | $ | 4,239 | $ | 3,209 | ||||||||||
Operating Data | THREE MONTHS ENDED | |||||||||||||||||||
Performance Ratios and Other Data: | Dec. 31, 2003 | Sept. 30, 2003 | June 30, 2003 | Mar. 31, 2003 | Dec. 31, 2002 | |||||||||||||||
Earnings per share—Basic(1) | $ | 0.27 | $ | 0.24 | $ | 0.21 | $ | 0.20 | $ | 0.22 | ||||||||||
Earnings per share—Diluted(1) | 0.26 | 0.23 | 0.20 | 0.19 | 0.21 | |||||||||||||||
Weighted average shares outstanding — Basic(1) | 22,438,188 | 22,206,876 | 21,848,268 | 21,481,719 | 14,435,598 | |||||||||||||||
Weighted average shares outstanding — Diluted(1) | 24,005,311 | 23,677,477 | 23,153,719 | 22,484,301 | 15,464,916 | |||||||||||||||
Return on average assets | 1.56 | % | 1.58 | % | 1.48 | % | 1.70 | % | 1.59 | % | ||||||||||
Return on average stockholders’ equity | 24.83 | 23.84 | 21.08 | 20.60 | 29.03 | |||||||||||||||
Return on average tangible stockholders’ equity | 28.59 | 27.89 | 24.70 | 24.48 | 41.16 | |||||||||||||||
Interest rate spread | 3.15 | 3.26 | 3.17 | 3.23 | 3.22 | |||||||||||||||
Net interest margin | 3.22 | 3.32 | 3.29 | 3.39 | 3.27 | |||||||||||||||
Efficiency ratio | 25.82 | 27.55 | 29.18 | 30.08 | 30.62 | |||||||||||||||
G&A to average assets | 0.90 | 1.00 | 1.21 | 1.36 | 1.35 | |||||||||||||||
Effective tax rate | 39.49 | 37.61 | 39.93 | 40.51 | 40.69 | |||||||||||||||
Total loan originations | $ | 304,039 | $ | 331,384 | $ | 207,128 | $ | 266,951 | $ | 200,258 | ||||||||||
Core loan originations | 274,884 | 243,415 | 183,686 | 257,197 | 191,930 | |||||||||||||||
Broker/conduit originations | 29,155 | 87,969 | 23,442 | 9,754 | 8,328 | |||||||||||||||
Core loan originations retained | 257,289 | 221,799 | 157,803 | 131,118 | 82,530 | |||||||||||||||
Percent of core loan originations retained | 94 | % | 91 | % | 86 | % | 51 | % | 43 | % | ||||||||||
Charge-offs (Recoveries) | (4 | ) | 64 | — | — | — |
(1) | share data has been adjusted to reflect a 3-for-2 stock split on September 29, 2003. |
12
Average Balances, Net Interest Income, Yields Earned and Rates Paid
Three Months Ended December 31, | ||||||||||||||||||
2003 | 2002 | |||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||
(Dollars in thousand) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Total loans(1) | $ | 981,061 | $ | 13,593 | 5.54 | % | $ | 477,054 | $ | 7,600 | 6.37 | % | ||||||
Securities(2) | 508,182 | 5,435 | 4.28 | 273,645 | 3,627 | 5.30 | ||||||||||||
FHLB stock | 37,592 | 382 | 4.06 | 13,258 | 174 | 5.25 | ||||||||||||
Cash and cash equivalents(3) | 9,950 | 15 | 0.60 | 3,760 | 5 | 0.53 | ||||||||||||
Total interest earning assets | 1,536,785 | 19,425 | 5.06 | 767,717 | 11,406 | 5.94 | ||||||||||||
Noninterest earning assets | 43,207 | 38,184 | ||||||||||||||||
Total assets | $ | 1,579,992 | $ | 805,901 | ||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Transaction accounts(4) | $ | 351,022 | 1,769 | 2.00 | $ | 167,193 | 1,187 | 2.82 | ||||||||||
Certificates of deposits | 255,785 | 1,111 | 1.72 | 145,584 | 948 | 2.58 | ||||||||||||
Total deposits | 606,807 | 2,880 | 1.88 | 312,777 | 2,135 | 2.71 | ||||||||||||
Securities sold under agreements to repurchase | 61,282 | 179 | 1.16 | 112,221 | 459 | 1.62 | ||||||||||||
FHLB advances | 733,854 | 3,362 | 1.82 | 257,735 | 1,817 | 2.80 | ||||||||||||
Warehouse line of credit | 19,833 | 107 | 2.14 | 30,320 | 222 | 2.90 | ||||||||||||
Trust preferred securities | 43,898 | 534 | 4.83 | 35,000 | 503 | 5.70 | ||||||||||||
Total interest-bearing liabilities | 1,465,674 | 7,062 | 1.91 | 748,053 | 5,136 | 2.72 | ||||||||||||
Noninterest-bearing deposits | 10,845 | 7,474 | ||||||||||||||||
Other noninterest-bearing liabilities | 4,279 | 6,157 | ||||||||||||||||
Total liabilities | 1,480,798 | 761,684 | ||||||||||||||||
Stockholders’ equity | 99,194 | 44,217 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,579,992 | $ | 805,901 | ||||||||||||||
Net interest-earning assets | $ | 71,111 | $ | 19,664 | ||||||||||||||
Net interest income/interest rate spread | $ | 12,363 | 3.15 | % | $ | 6,270 | 3.22 | % | ||||||||||
Net interest margin | 3.22 | % | 3.27 | % | ||||||||||||||
(1) | The average balance of loans receivable includes loans 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 held-to-maturity and available-for-sale, excluding gains or losses on securities classified as available-for-sale. |
(3) | Consists of cash and due from banks, restricted cash and federal funds sold. |
(4) | Consists of savings, NOW and money market accounts. |
13
Average Balances, Net Interest Income, Yields Earned and Rates Paid
Year Ended December 31, | ||||||||||||||||||
2003 | 2002 | |||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||
(Dollars in thousand) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Total loans(1) | $ | 751,004 | $ | 43,878 | 5.84 | % | $ | 383,771 | $ | 25,251 | 6.58 | % | ||||||
Securities(2) | 463,319 | 21,005 | 4.53 | 219,731 | 12,700 | 5.78 | ||||||||||||
FHLB stock | 28,459 | 1,240 | 4.36 | 10,229 | 559 | 5.46 | ||||||||||||
Cash and cash equivalents(3) | 8,654 | 51 | 0.59 | 5,726 | 57 | 1.00 | ||||||||||||
Total interest earning assets | 1,251,436 | 66,174 | 5.29 | 619,457 | 38,567 | 6.22 | ||||||||||||
Noninterest earning assets | 46,488 | 27,851 | ||||||||||||||||
Total assets | $ | 1,297,924 | $ | 647,308 | ||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Transaction accounts(4) | $ | 278,354 | 6,050 | 2.17 | $ | 83,570 | 2,455 | 2.94 | ||||||||||
Certificates of deposits | 209,913 | 4,049 | 1.93 | 155,590 | 4,196 | 2.70 | ||||||||||||
Total deposits | 488,267 | 10,099 | 2.07 | 239,160 | 6,651 | 2.78 | ||||||||||||
Securities sold under agreements to repurchase | 86,686 | 1,108 | 1.28 | 106,153 | 1,916 | 1.80 | ||||||||||||
FHLB advances | 544,944 | 10,975 | 2.01 | 188,027 | 6,162 | 3.28 | ||||||||||||
Warehouse line of credit | 35,533 | 882 | 2.48 | 37,909 | 1,126 | 2.97 | ||||||||||||
Trust preferred securities | 37,349 | 1,876 | 5.02 | 30,470 | 1,794 | 5.89 | ||||||||||||
Total interest-bearing liabilities | 1,192,779 | 24,940 | 2.09 | 601,719 | 17,649 | 2.93 | ||||||||||||
Noninterest-bearing deposits | 8,649 | 6,123 | ||||||||||||||||
Other noninterest-bearing liabilities | 6,472 | 4,405 | ||||||||||||||||
Total liabilities | 1,207,900 | 612,247 | ||||||||||||||||
Stockholders’ equity | 90,024 | 35,061 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,297,924 | $ | 647,308 | ||||||||||||||
Net interest-earning assets | $ | 58,657 | $ | 17,738 | ||||||||||||||
Net interest income/interest rate spread | $ | 41,234 | 3.20 | % | $ | 20,918 | 3.29 | % | ||||||||||
Net interest margin | 3.29 | % | 3.38 | % | ||||||||||||||
(1) | The average balance of loans receivable includes loans 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 held-to-maturity and available-for-sale, excluding gains or losses on securities classified as available-for-sale. |
(3) | Consists of cash and due from banks, restricted cash and federal funds sold. |
(4) | Consists of savings, NOW and money market accounts. |
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