8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

January 26, 2004

(Date of earliest event reported)

COMMERCIAL CAPITAL BANCORP, INC.

(Exact name of registrant as specified in its charter)

Nevada	000-50126	33-0865080
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Venture, 3rd Floor, Irvine, California	92618
(Address of principal executive offices)	(Zip Code)

(949) 585-7500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibit

99.1	Press release dated January 26, 2004.
99.2	Slide presentation dated January 26, 2004.

Item 12. Results of Operations and Financial Condition.

On January 26, 2004, Commercial Capital Bancorp, Inc. (the “Company”) announced by press release its earnings for the fourth quarter and year ended December 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1. The Company will be conducting a conference call on January 26, 2004 that will utilize a slide presentation, a copy of which is attached hereto as Exhibit 99.2.

The information contained in this Report on Form 8-K is furnished pursuant to Item 12 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any of the Company’s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

COMMERCIAL CAPITAL BANCORP, INC.
By:	/s/    Stephen H. Gordon
	Stephen H. Gordon Chairman of the Board and Chief Executive Officer

Date: January 26, 2004.

EX-99.1

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 4^th 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 at www.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 at www.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.

14

EX-99.2

EXHIBIT 99.2