Second Quarter 2010 versus First Quarter 2010 -- Total Assets of $245 million, up 24% -- Total Loans of $160 million, up 8% -- Total Deposits of $202 million, up 25% -- Net Interest Income of $1.869 million, up 6% Second Quarter 2010 versus Second Quarter 2009 -- Total Assets increased by $90 million, up 58% -- Total Loans grew $49 million, up 44% -- Total Deposits rose $77 million, up 62% -- Net Interest Income grew by $612,000, up 49%Total Loans were $160 million on June 30, 2010, up $12 million compared to $148 million on March 31, 2010. Total Commercial and Industrial (C & I) Loans increased $7 million to $69 million from $62 million at the end of the First Quarter 2010. Total Real Estate Loans increased $4 million during the Second Quarter, to $80 million from $76 million at the end of the First Quarter 2010. Total Deposits were $202 million at June 30, 2010, up $41 million compared to $161 million at March 31, 2010. During the Second Quarter 2010, Core Deposits reached a new high, increasing $17 million or 13% to $146 million from $129 million in the First Quarter 2010. Non-core deposits increased $24 million in the Second Quarter 2010, partially driven by demand for large CDs from corporate relationships. The Bank's average rate on interest-bearing funds remained unchanged in the Second Quarter from the previous quarter. Net Interest Income reached a new quarterly high in the Second Quarter of 2010, up 6% from the previous quarter to $1.869 million versus $1.761 million in the First Quarter 2010. Net interest margin declined 47 basis points to 3.42% compared to 3.89% during the First Quarter of 2010, as new deposits outpaced loan growth, leaving excess deposit flows in relatively low yielding short term investments. Credit Quality In the Second Quarter 2010, the Bank maintained its Loan Loss Reserve at 2% of Total Loans. During the Second Quarter, the Bank had an $80,000 recovery of a previously written-off loan. In the First Quarter 2010, the Bank had net write-offs of $142,300. The Bank had two non-performing loans at the end of the Second Quarter, aggregating to $1.040 million or 0.65% of Total Gross Loans, compared to no non-performing loans at the end of the First Quarter 2010. "The Bank's loan portfolio is seasoning and we expected that, at some point, we would have some challenged credits. The overall quality of our portfolio is excellent. We finished the Second Quarter with a three-fold Loan Loss Reserve coverage of non-performing loans, so we are well positioned to continue growing," remarked Rossell. Capital and Liquidity The Bank remains well capitalized, with a Tier 1 Risk Based Capital Ratio of 13.9% at June 30, 2010, in excess of a "well capitalized" bank of 10%. The Bank also continues to maintain strong liquidity, with over $51 million in cash at June 30, 2010. "With almost $250 million of Total Assets, a full year of Operating Income, and ample capital and liquidity, California Bank of Commerce has built a solid foundation. We are becoming the destination bank for successful, closely held businesses throughout the Bay Area," said Rossell. About California Bank of Commerce California Bank of Commerce was designed and built to provide a unique banking experience for its clients. The Bank offers a broad range of commercial banking services to closely held businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at 925-283-2265, or visit us at www.californiabankofcommerce.com.
CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
($ Thousands)
SUMMARY INCOME STATEMENT ($ thousands)
2Q 10 1Q 10 2Q 09
--------- --------- ---------
Interest income $ 2,282 $ 2,106 $ 1,554
Interest expense (413) (345) (297)
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Net interest income before provision $ 1,869 $ 1,761 $ 1,257
Provision for loan losses (190) (507) (475)
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Net interest income after provision $ 1,679 $ 1,253 $ 782
Non-interest income 87 79 49
Non-interest expense (1,538) (1,546) (1,525)
--------- --------- ---------
Income (loss) before tax provision $ 227 $ (214) $ (694)
Provision for income taxes - (1) -
--------- --------- ---------
Net income (loss) - Period $ 227 $ (215) $ (694)
Operating Income* $ 624 $ 498 $ (39)
Weighted average shares outstanding 2,750,000 2,750,000 2,750,000
Income (loss) per Common share $ 0.083 $ (0.078) $ (0.252)
Basic Income (loss) per Common share $ 0.063 $ (0.098) $ (0.273)
Note: Net income (loss) - Year-to-Date $ 12 $ (215) $ (1,260)
* Pre-tax Net Income (loss) excluding Provision for Loan Losses and Stock
Option Expense.
CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
($ Thousands)
SUMMARY BALANCE SHEET ($ thousands)
2Q 10 1Q 10 2Q 09
--------- --------- ---------
Assets
Cash, Due-from Banks and Investments $ 84,791 $ 48,999 $ 44,434
Loans, net of deferred costs 159,834 147,574 111,328
Loan Loss Reserve (3,200) (2,930) (1,975)
Other Assets 3,377 3,416 1,269
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Total Assets $ 244,802 $ 197,059 $ 155,056
Liabilities & Shareholders' Equity
Non-interest Bearing Deposits $ 38,421 $ 37,696 $ 26,543
Total Interest Bearing Deposits 163,453 123,217 98,335
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Total Deposits $ 201,874 $ 160,913 $ 124,878
Total Borrowings and Other Liabilities 19,074 12,855 6,764
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Total Liabilities $ 220,948 $ 173,768 $ 131,642
Shareholders' Equity $ 23,854 $ 23,291 $ 23,414
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Total Liabilities & Shareholders' Equity $ 244,802 $ 197,059 $ 155,056
Contact Information: Contact: John Rossell or Mark DeVincenzi 925-283-2265