California Bank of Commerce (OTCQB:CABC) a San Francisco Bay
Area business bank, reported net income of $3.4 million for the
year ended December 31, 2014, or $0.92 per share, up from $2.6
million, or $0.89 per share, for the same period in 2013. Net
income of $954 thousand for the fourth quarter 2014 compared to
$737 thousand for the same period in 2013.
Return on average total assets was 0.85% for the full year 2014,
compared to 0.72% for 2013. Net interest income grew 14% in 2014
compared to 2013. Net interest margin improved to 3.97% for year
ending December 31, 2014, increasing from 3.84% for the same period
a year ago. Loan quality also improved year over year with the
Bank’s NPL ratio declining 18 basis points (bp) to 0.52% at
December 31, 2014.
Loans grew by $56 million to $339 million for the year ending
December 31, 2014. Total deposits grew by $61 million to $355
million for the year ending December 31, 2014. Non-interest bearing
deposit growth accounted for 59% of total deposit growth.
“The San Francisco Bay Area business community has embraced and
appreciates our deep commercial banking expertise and knowledge,”
said Terry A. Peterson, President and CEO. “We responded by raising
$16 million in new common equity capital in 2014. Our new capital
allows us to grow with our existing and prospective business
clients, invest in technology tools for our clients, and provide a
larger banking platform to continue attracting the best Bay Area
bankers to our team,” said Peterson.
Fourth Quarter 2014 versus Fourth Quarter 2013
- Net interest income reached a record
high of $3.9 million
- Net income of $954 thousand, increased
44%
Year 2014 versus 2013
- Net interest income increased 14% to
$14.9 million
- Net income rose 32% to $3.4
million
- Basic earnings per common share was
$0.92
- $16 million in capital raised, issuing
1.5 million new shares
Strong growth in 2014 year over year leads to record
balances
- Total loans of $339 million, up $56
million or 20% from year-end 2013
- Total deposits of $355 million, up $61
million or 21% from year-end 2013
- Total non-interest bearing deposits of
$141 million, up $36 million or 34%, representing 40% of total
deposits
Strong credit quality
- Total non-performing loans declined to
0.52% of assets at December 31, 2104, from 0.70% on the same date
last year
- Loan loss reserve of $5.6 million
increased 6% over last year
- Loan loss reserve ratio fell to 1.65%
of total loans at December 31, 2104, from 1.86% a year ago as a
result of improvements in credit quality
Improved book value and capital ratios
- Tangible book value per share $11.01,
up $0.92 or 9% from last year
- Capital ratios improved on stronger
earnings and additional equity capital
Net Income
Net income reached a record $3.4 million for the full year 2014,
improving 32% over 2013.
Balance Sheet
As of December 31, 2014, total assets were up $81 million or 22%
to $446 million with loans up by $56 million or 20% year over year
to $339 million compared to December 31, 2013. For the year ending
December 31, 2014, commercial and industrial (C&I) loans grew
25% or $35 million over the end of year 2013 continuing to
represent over 50% of total loans, while commercial real estate
loans grew 14% or $18 million during the same period.
Total asset growth during 2014 was funded with deposit growth
which increased 21% or $61 million to $355 million in total
deposits at the end of 2014 compared to $294 million at the end of
2013. Non-interest bearing deposits increased 34% and represented
40% of total deposits at December 31, 2014 compared to 36% for the
same date a year ago.
Total shareholders’ equity and shares outstanding increased as a
result of the additional equity capital raised at the end of the
second quarter 2014. Shareholders’ equity increased 51% to $59
million at December 31, 2014 compared to the $39 million for the
same date a year ago.
Credit Quality
Total non-performing loans declined to 0.52% of assets, from
0.70% last year. The reserve for loan losses increased to $5.6
million as of December 31, 2014 compared to $5.3 million at
December 31, 2013. As a percent of total loans, the reserve level
continues to reflect the Bank’s healthy loan portfolio and
conservative posture at 1.65% of total loans at the end of the
current period compared to 1.86% at December 31, 2013.
“We continue to retain and recruit the very best bankers in the
Bay Area and our financial results demonstrate this success,” said
Stephen A. Cortese, Chairman of the Board for California Bank of
Commerce. “Our ability to quickly and efficiently access the
capital markets, as demonstrated by our recent capital offering,
validates investor confidence in our bank,” said Cortese.
About California Bank of
Commerce
California Bank of Commerce was designed and built to provide a
unique banking experience for its clients. The Bank offers a broad
range of commercial banking services to closely held businesses and
professionals throughout the San Francisco Bay Area. For more
information on California Bank of Commerce and our unique banking
experience, call us at (925) 283-2265, or visit us at
www.californiabankofcommerce.com.
CALIFORNIA
BANK OF COMMERCE UNAUDITED SUMMARY FINANCIAL STATEMENTS
INCOME STATEMENT ($ Thousands)
Twelve Months Ended
Year Over Year Change 31-Dec-14 31-Dec-13
$ % Interest income $ 16,186 $ 14,420 $ 1,766 12 %
Interest expense (1,287 ) (1,384 ) 97
-7 % Net interest income before provision 14,899 13,036 1,863 14 %
Provision to the Loan Loss Reserve 71 (264 )
335 -- Net interest income after provision $
14,970 $ 12,772 $ 2,198 17 % Non-interest income 2,156 1,469
687 47 % Non-interest expense (11,801 ) (9,919 )
(1,882 ) 19 % Income before tax provision 5,325 4,322 1,003
23 % Provision for income taxes (1,958 ) (1,766 )
(192 ) 11 % Net income $ 3,367 $ 2,556 $ 811
32 % Preferred Dividends 110 110
- 0 % Income to Common Shareholders $ 3,257
$ 2,446 $ 811 33 % Basic Earnings per
Common share $ 0.915 $ 0.886 $ 0.029 3 % Weighted Average
Shares Outstanding 3,558,689 2,760,432 798,257 29 % Return
on Average Assets 0.85 % 0.72 % Return on Average Tangible Common
Equity 8.79 % 9.48 % Non-Interest Expense to Average Total
Assets 2.97 % 2.78 % Efficiency Ratio 69.2 % 68.4 %
CALIFORNIA BANK OF COMMERCE UNAUDITED SUMMARY FINANCIAL STATEMENTS
INCOME STATEMENT ($ Thousands)
Three Months
Ended Year Over Year Change 31-Dec-14
30-Sep-14 31-Dec-13 $ % Interest income
$ 4,266 $ 4,107 $ 3,908 $ 358 9 % Interest expense (354 )
(328 ) (319 ) (35 ) 11 % Net interest income
before provision 3,912 3,779 3,589 323 9 % Provision to the Loan
Loss Reserve (79 ) (1 ) 85 (164
) -- Net interest income after provision $ 3,833 $ 3,778 $
3,674 $ 159 4 % Non-interest income 500 617 429 71 17 %
Non-interest expense (3,084 ) (3,152 ) (2,890
) (194 ) 7 % Income before tax provision 1,249 1,243 1,213
36 3 % Provision for income taxes (295 ) (506 )
(552 ) 257 -47 % Net income $ 954 $ 737
$ 661 $ 293 44 % Preferred Dividends
28 28 28 -
0 % Income to Common Shareholders $ 926 $ 709 $ 633
$ 293 46 % Basic Earnings per Common share $
0.214 $ 0.164 $ 0.229 $ (0.015 ) -7 % Weighted Average
Shares Outstanding 4,328,488 4,324,759 2,768,263 Return on
Average Assets 0.84 % 0.72 % 0.70 % Return on Average Tangible
Common Equity 8.00 % 6.29 % 9.38 % Non-Interest Expense to
Average Total Assets 2.72 % 3.07 % 3.04 % Efficiency Ratio 69.9 %
71.7 % 71.9 % CALIFORNIA BANK OF COMMERCE UNAUDITED SUMMARY
FINANCIAL STATEMENTS
BALANCE SHEET ($ Thousands)
Year Over Year Change Assets 31-Dec-14
30-Sep-14 31-Dec-13 $ % Total Cash and
Investments $ 91,125 $ 102,942 $ 72,255 $ 18,870 26 % Loans, net of
deferred costs/fees 338,812 312,952 282,829 55,983 20 % Loan Loss
Reserve (5,560 ) (5,450 ) (5,250 ) 310 6 % Other 21,250
18,189 14,685 6,565
45 %
Total Assets $ 445,627 $ 428,633
$ 364,519 $ 81,108 22 %
Liabilities & Shareholders' Equity Non-interest Bearing
Deposits $ 140,558 $ 118,245 $ 104,642 $ 35,916 34 % Interest
Bearing Deposits 214,468 221,716
189,499 24,969 13 % Total Deposits
355,026 339,961 294,141 60,885 21 % Total Borrowings and Other
Liabilities 32,010 31,139 31,497
513 2 % Total Liabilities 387,036
371,100 325,638 61,398 19 % Shareholder's Equity 58,591
57,533 38,881 19,710 51 %
Total Liabilities & Shareholders'
Equity $ 445,627 $ 428,633 $ 364,519 $
81,108 22 % Shares Outstanding 4,328,488
4,328,488 2,768,893 1,559,595 56 % Book Value per Common Share $
11.01 $ 10.76 $ 10.09 $ 0.92 9 %
Annual Annual
Average Average
Average Balances
- Period
4Q 2014 3Q 2014 4Q 2013 2014
2013 Total Assets $ 449,841 $ 407,699 $ 377,405 $ 397,403 $
356,736 Total Loans $ 315,959 $ 305,207 $ 272,267 $ 299,994 $
257,462 Total Investments $ 35,508 $ 34,822 $ 45,479 $ 39,250 $
44,639 Total Earning Assets $ 423,279 $ 385,494 $ 359,143 $ 375,490
$ 339,619 Total Non-Interest Bearing Deposits $ 131,419 $ 110,747 $
110,192 $ 109,922 $ 92,815 Total Deposits $ 360,091 $ 319,448 $
307,259 $ 316,401 $ 287,937 Total Borrowings $ 29,000 $ 29,000 $
29,000 $ 29,210 $ 29,001 Tangible Common Equity $ 47,344 $ 46,466 $
27,983 $ 38,313 $ 26,973
Annual Annual
Average Yields
and Cost
4Q 2014 3Q 2014 4Q 2013 2014
2013 Net Interest Margin 3.67 % 3.89 % 3.97 % 3.97 % 3.84 %
Yield on Earning Assets 4.00 % 4.23 % 4.32 % 4.31 % 4.25 % Cost of
Interest Bearing Liabilities 0.55 % 0.55 % 0.56 % 0.55 % 0.62 %
End of
Period
31-Dec-14 30-Sep-14 31-Dec-13 Loan Loss
Reserve to Total Loans 1.65 % 1.75 % 1.86 % NPLs (incl non
performing TDRs) to Total Assets 0.29 % 0.30 % 0.37 % Performing
TDRs to Total Assets 0.23 % 0.08 % 0.33 %
Total NPLs 0.52 % 0.38 % 0.70 % Tier I Leverage Ratio 13.00
% 14.11 % 10.36 %
California Bank of CommerceTerry A. Peterson,
925-444-2910President and CEOtpeterson@bankcbc.comMark DeVincenzi,
925-444-2916EVP Shareholder Relations &
CMOmdevincenzi@bankcbc.com