SOURCE: California Bank of Commerce

California Bank of Commerce

January 26, 2010 17:21 ET

California Bank of Commerce Announces Results for the 4th Quarter 2009

LAFAYETTE, CA--(Marketwire - January 26, 2010) - California Bank of Commerce (OTCBB: CABC), a unique commercial bank in the San Francisco Bay Area targeting closely held businesses and professionals, today announced financial results for the full year and fourth quarter ended December 31, 2009.

"The Bank performed well throughout the year. We experienced strong revenue growth. We added many new client relationships and grew our loan and deposit portfolios. We kept the bar high in terms of asset quality. We managed overhead carefully so that new revenues drove big improvements to the bottom line. We are still a start-up and the climate is challenging, but we made excellent headway on all fronts," said John Rossell III, President and CEO.

Full Year 2009 Highlights:

--  Total Assets of $194 million, up 41%
--  Total Loans of $144 million, up 48%
--  Total Deposits of $153 million, up 38%
--  Net Interest Income of $5.392 million, up 80%
--  Net Interest Margin of 3.52% in 2009 as compared with 3.12% in 2008
    

During the course of its second full year in business, the Bank has reduced its start-up related losses dramatically. On the strength of an 80% increase in net interest income in 2009, the Bank reduced its full year net loss to ($1,537,000) from ($5,254,000) in 2008. In addition, the Bank turned positive on an operating basis during 2009, making an operating profit of $449,000 compared to an operating loss of ($1,337,000) for 2008. Operating income is defined as net loss adjusted for the loan loss provision, stock option expense, and extraordinary items. In 2008, the Bank experienced an extraordinary loss when the Federal Government seized Fannie Mae, forcing the Bank to write-off $2,046,000 of its preferred stock investment.

Fourth Quarter 2009 Highlights:

--  Total Assets increased by $16 million over third quarter 2009
--  Total Loans grew $15 million over third quarter 2009
--  Total Deposits rose $6 million over third quarter 2009
--  Net Interest Income reached an all time quarterly high of $1.651
    million, up by 14% over the third quarter of 2009
--  Net Interest Margin of 3.75% vs. 3.47% for the third quarter of 2009
    

In the fourth quarter, the Bank grew earning assets by $10 million, improved its net interest margin by 28 basis points and made use of these improvements to make a substantial $456,000 addition to the reserve for loan losses. As a result, the Bank's fourth quarter net loss widened to ($180,000) versus a net loss of ($96,000) for the third quarter. "Our loan losses have been minimal thus far (one - $91,000) and we finished 2009 with no non-performing loans on our books. However, a healthy reserve is an important building block for a bank like ours that is committed to growing the franchise," noted Rossell.

Operating income was a positive $467,000 for the fourth quarter 2009 compared to a positive $309,000 for the third quarter 2009, a 51% improvement.

Capital and Liquidity

The Bank remains well capitalized, with a Tier 1 Leverage Capital Ratio of 12.8% at December 31, 2009, well in excess of the FDIC's 8% standard for a "well capitalized" bank. In addition, the Bank continues to maintain strong liquidity, with over $30 million in cash and cash equivalents at December 31, 2009.

"California Bank of Commerce remains on plan. We have tested systems and a qualified staff. We are growing. Our asset quality is strong and it is buttressed by a loan loss reserve of $2.565 million. Our capital and liquidity positions are strong. We have just completed two consecutive quarters of operating profit. So, we enter 2010 with excellent momentum and high expectations," commented Rossell.

About California Bank of Commerce

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

                        CALIFORNIA BANK OF COMMERCE
                  UNAUDITED SUMMARY FINANCIAL STATEMENTS
                              ($ Thousands)


SUMMARY INCOME STATEMENT              2009      2008      $ Chg     % Chg
                                    --------  --------  --------  --------
Interest income                     $  6,739  $  4,473  $  2,266        51%
Interest expense                      (1,347)   (1,481)      134         9%
                                    --------  --------  --------  --------
  Net interest income before
   provision                           5,392     2,992     2,400        80%
Provision for loan losses             (1,256)   (1,152)     (104)       -9%
                                    --------  --------  --------  --------
  Net interest income after
   provision                           4,136     1,840     2,296       125%
Non-interest income                      350       468      (118)      -25%
Non-interest expense                  (6,022)   (5,515)     (507)       -9%
FNMA Securities Loss                       -    (2,046)    2,046        NA
  Income (loss) before tax
   provision                          (1,536)   (5,253)    3,717        71%
                                    --------  --------  --------  --------
Provision for income taxes                (1)       (1)        -         -
                                    --------  --------  --------  --------
  Net income (loss) - Period        $ (1,537) $ (5,254) $  3,717        71%

  Basic Income (loss) per share     $ (0.635) $ (1.910) $  1.275        67%




                        CALIFORNIA BANK OF COMMERCE
                  UNAUDITED SUMMARY FINANCIAL STATEMENTS
                              ($ Thousands)



SUMMARY INCOME
 STATEMENT            4th Quarter 2009  3rd Quarter 2009  4th Quarter 2008
                      ----------------  ----------------  ----------------
Interest income       $          1,998  $          1,784  $          1,510
Interest expense                  (347)             (341)             (443)
                      ----------------  ----------------  ----------------
  Net interest income
   before provision              1,651             1,442             1,067
Provision for loan
 losses                           (456)             (225)             (300)
                      ----------------  ----------------  ----------------
  Net interest income
   after provision               1,194             1,217               767
Non-interest income                149               112               282
Non-interest expense            (1,524)           (1,426)           (1,412)
FNMA Preferred
 Security Loss                       -                 -                 -
  Income (loss)
   before tax
   provision                      (180)              (96)             (364)
                      ----------------  ----------------  ----------------
Provision for income
 taxes                               -                 -                 -
                      ----------------  ----------------  ----------------
  Net income (loss) -
   Period             $           (180) $            (96) $           (364)

Weighted average
 shares outstanding          2,750,000         2,750,000         2,750,000

  Basic loss per
   share              $         (0.085) $         (0.054) $         (0.132)




                        CALIFORNIA BANK OF COMMERCE
                  UNAUDITED SUMMARY FINANCIAL STATEMENTS
                              ($ Thousands)



SUMMMARY BALANCE
 SHEET                4th Quarter 2009  3rd Quarter 2009  4th Quarter 2008
Assets                ----------------  ----------------  ----------------
Cash and investment
 securities, net      $         47,884  $         47,204  $         39,363
Loans, net of
 deferred costs/fees           144,163           129,029            97,620
Loan loss reserve               (2,565)           (2,200)           (1,400)
Other                            4,282             3,549             1,834
                      ----------------  ----------------  ----------------
    Total Assets      $        193,764  $        177,582  $        137,417

Liabilities
Demand deposits       $         35,418  $         34,543  $         17,787
Interest bearing
 deposits                      117,256           112,630            92,723
                      ----------------  ----------------  ----------------
  Total Deposits               152,674           147,173           110,510
Borrowings & other
 liabilities                    17,760             6,869             6,574
                      ----------------  ----------------  ----------------
  Total Liabilities            170,434           154,042           117,084

Common Stock, net               19,384            19,594            20,333
Preferred Stock, net             3,946             3,946                 -
                      ----------------  ----------------  ----------------
  Shareholders'
   equity                       23,330            23,540            20,333

    Total
     Liabilities and
     Equity           $        193,764  $        177,582  $        137,417

Contact Information

  • Contact:
    Mark DeVincenzi
    925-444-2916