EX-99.1 3 dex991.htm PRESS RELEASE DATED JANUARY 26, 2004. Press release dated January 26, 2004.

EXHIBIT 99.1

 

LOGO

 

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  

 

1

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.

 

2

  • 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.

 

3

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

 

4

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

 

5

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.

 

6

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 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.

 

7

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.

 

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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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