California Bank of Commerce (OTCBB:CABC) announced unaudited financial results for the quarter and nine months ended September 30, 2011. The Bank reached record levels of Loans, Deposits, Assets and year-to-date Net Income at quarter end.

“The Bank is not yet five years old but it continues to make steady progress in building the scale of its balance sheet, to keep profits growing,” commented John Rossell, President and CEO.

The Bank reported year-to-date Net Income of $ 475,000 or $0.17 per share through September 30, 2011, compared with $356,000 or $0.13 per share for the same period last year. Net Income for the three months ended September 30, 2011 was $200,000 or $0.07 per share.

Pre-tax Income for the nine months ended September 30, 2011 was $921,000, up $564,000 or 158% over the like period of 2010. Pre-tax Income for the three months ended September 30, 2011 was $379,000, up 10% over the same period of last year.

Third Quarter 2011 versus Third Quarter 2010

  • Total Loans of $201 million, increased $35 million or 21%
  • Total Deposits of $219 million, increased $31 million or 17%
  • Net Interest Income of $2.4 million, increased $300,000 or 15%

Third Quarter 2011 versus Second Quarter 2011

  • Total Loans increased $14 million or 8%
  • Total Deposits increased $15 million or 8%
  • Net Interest Income increased $174,000 or 8%

Total Deposits were an all time high of $219 million at September 30, 2011, up $31 million or 17% over September 30, 2010. Non-Interest bearing Deposits of $54 million on September 30, 2011, constituted 25% of Total Deposits and were up 24% over the same date last year.

Total Assets reached $277 million at September 30, 2011, up 10% over September 30, 2010. At September 30th, 2011, the Bank’s liquidity position remained strong, with $68 million in Cash and Investments, or 25% of Total Assets.

The Bank has made steady progress reducing Non-Performing Assets (NPA), which peaked in the Fourth Quarter of 2010. At September 30, 2011, the Bank’s NPAs to Total Assets was 0.40% compared to 0.85% at December 31, 2010 and 0.42% at the end of the third quarter 2010. The Bank holds no foreclosed assets. The Bank concluded the third Quarter 2011 with a Loan Loss Reserve equal to 1.99% of Total Loans.

During the Third Quarter 2011, the Bank repaid in full its TARP CPP obligations and placed $11 million of new preferred capital from the US Treasury’s Small Business Lending Fund. At September 30, 2011, the Bank’s Tier I Leverage ratio was 12.27% compared to a well capitalized standard of 8%. The Bank’s Total Risk Based Capital ratio improved to 15.16% compared to a well capitalized standard of 10%.

The Bank added two new lending groups, a dental and medical practice group and an asset based lending group during the year. “These new lending teams are already making a positive contribution to both the volume and yield of the Bank’s commercial and industrial loan portfolio,” said Rossell.

Reflecting steady loan growth, the Bank’s Net Interest Margin improved to 3.69% for the quarter ended September 30, 2011, compared to 3.55% for the same period last year.

About California Bank of Commerce

California Bank of Commerce was designed and built to provide a unique banking experience for its clients. The Bank offers a broad range of commercial banking services to closely held businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at 925-283-2265, or visit us at www.californiabankofcommerce.com.

CALIFORNIA BANK OF COMMERCE UNAUDITED SUMMARY FINANCIAL STATEMENTS         INCOME STATEMENT ($ Thousands)   Three Months Ended Nine Months Ended 30-Sep-11 30-Sep-10 30-Sep-11 30-Sep-10 Interest income $ 2,771 $ 2,472 $ 7,740 $ 6,861 Interest expense   (410 )   (411 )   (1,138 )   (1,169 ) Net interest income before provision $ 2,361 $ 2,061 $ 6,602 $ 5,692 Provision to the Loan Loss Reserve   (381 )   (585 )   (994 )   (1,283 ) Net interest income after provision $ 1,980 $ 1,476 $ 5,608 $ 4,409   Non-interest income 199 263 619 429 Non-interest expense   (1,800 )   (1,396 )   (5,306 )   (4,481 ) Income before tax provision 379 343 921 357 Provision for income taxes   (179 )   -     (446 )   (1 ) Net income (loss) - Period $ 200   $ 343   $ 475   $ 356       Earnings Per Share Income per Common share $ 0.073 $ 0.125 $ 0.173 $ 0.130 Basic Income (loss) per Common share $ 0.066 $ 0.105 $ 0.127 $ 0.070   Weighted average shares outstanding 2,750,000 2,750,000 2,750,000 2,750,000   CALIFORNIA BANK OF COMMERCE UNAUDITED SUMMARY FINANCIAL STATEMENTS         BALANCE SHEET ($ Thousands)   12 Month Assets 30-Sep-11 31-Dec-10 30-Sep-10 % Change Total Cash and Investments $ 68,433 $ 60,583 $ 85,027 -20 % Loans, net of deferred costs/fees 200,740 175,791 165,711 21 % Loan Loss Reserve (3,990 ) (4,327 ) (3,785 ) 5 % Other   11,320     7,636     4,412   157 % Total Assets $ 276,503   $ 239,683   $ 251,365   10 %   Liabilities & Shareholders' Equity Non-interest Bearing Deposits $ 54,339 $ 41,091 $ 44,003 23 % Interest Bearing Deposits   165,129     142,526     144,275   14 % Total Deposits $ 219,468 $ 183,617 $ 188,278 17 % Total Borrowings and Other Liabilities   22,663     29,107     38,953   -42 % Total Liabilities $ 242,131 $ 212,724 $ 227,231 7 %   Shareholder's Equity $ 34,372   $ 26,959   $ 24,134   42 %   Total Liabilities & Shareholders' Equity $ 276,503   $ 239,683   $ 251,365   10 %     Book Value per Share $ 8.51 $ 8.34 $ 7.32 16 %   Net Interest Margin 3.69 % 3.45 % 3.55 % Yield on Earning Assets 4.33 % 4.14 % 4.27 % Cost of Interest Bearing Liabilities 0.90 % 0.94 % 0.98 %   Loan Loss Provision to Total Loans 1.99 % 2.46 % 2.28 % NPAs to Total Assets 0.40 % 0.85 % 0.42 %   Leverage Ratio 12.27 % 10.73 % 10.14 % Tier 1 Risk Based Capital Ratio 13.90 % 10.80 % 10.80 % Total Risk Based Capital Ratio 15.16 % 12.06 % 12.06 %   Non Interest Expense to Avg. Total Assets 2.69 % 2.52 % 2.36 % Efficiency Ratio 70.33 % 65.40 % 60.06 %