California Bank of Commerce (OTCQX: CABC) a San Francisco Bay Area business bank, today reported unaudited financial results for the second quarter of 2016 with net income of $1.1 million, increasing 34% over second quarter 2015. Total assets were $725 million on June 30, 2016 compared to $637 million on March 31, 2016 and $473 million on June 30, 2015.
“Our strong second quarter performance is a testament to our ability to integrate a merger and expand into new markets, while accelerating production velocity. The business community continues to embrace our brand of commercial banking in the Bay Area,” said Terry A. Peterson, President and CEO of California Bank of Commerce.
The comparability of financial information for the second quarter 2016 and year-to-date to similar periods in 2015 is affected by the Bank’s acquisition of Pan Pacific Bank with total assets of $131 million, which closed on December 31, 2015. Additionally, one-time merger related expenses year-to-date 2016, totaled $535,000 as the Bank continues its integration process with Pan Pacific - targeted for completion by the end of the third quarter 2016.
In the second quarter, the Bank completed a private placement of $4 million Tier I common equity and $5 million of Tier II equity in the form of subordinated debt in conjunction with redeeming $11 million of preferred stock held by the United States Department of Treasury (“SBLF”).
Highlights
2Q 2016 vs. 1Q 2016
- Total deposits of $614 million at the end of the second quarter 2016 increased by $87 million or 17% compared to the first quarter of 2016. Non-interest bearing deposits of $229 million at the end of the second quarter 2016 increased $33 million, also 17% compared to the first quarter of 2016.
- Total loans net of deferred costs and fees were $580 million at the end of the second quarter 2016, an increase of $48 million or 9% over first quarter 2016.
- Net income of $1.1 million for the second quarter 2016 increased $126 thousand or 13% compared to the first quarter 2016.
- Basic earnings per share were $0.173 for the second quarter compared to $0.158 in the first quarter.
- Tangible book value per common share increased to $11.20 as of June 30, 2016.
2Q 2016 vs. 2Q 2015:
- Total deposits of $614 million at June 30, 2016 were up $232 million or 61% over the same 2015 quarter end, while non-interest bearing deposits were up by $74 million or 42% to $229 million.
- Loans, net of deferred costs and fees, were $580 million on June 30, 2016, increasing $200 million or 53%.
- Net income was $1.1 million for the second quarter 2016, increasing 34%. Net income was $2.0 million for the first six months of 2016, increasing 36% or $532 thousand.
- Credit quality remains strong, with non-performing assets to total assets decreasing to 0.30% at June 30, 2016 compared to 0.70% on the same date a year ago. The allowance for loan losses (“ALLL”) was $6.6 million at the end of the second quarter 2016, increasing $955 thousand from a year ago. ALLL was 1.14% on June 30, 2016, down from 1.50% a year ago. The ALLL ratio was affected by the merger accounting adjustments related to the Pan Pacific Bank merger as of December 31, 2015.
“We are pleased to report our second quarter results, and the successful execution of our business plans. The business community appreciates our expansion into the Fremont, San Jose and Oakland markets. We are also pleased with our year to date operating results,” said Stephen A. Cortese, Chairman of the Board for California Bank of Commerce.
About California Bank of Commerce
California Bank of Commerce offers a broad range of commercial banking services to closely held businesses and professionals located throughout the San Francisco Bay Area. The stock trades on the OTCQX marketplace under the symbol CABC. For more information on California Bank of Commerce, call us at (925) 283-2265, or visit us at www.californiabankofcommerce.com.
| CALIFORNIA BANK OF COMMERCE | |||||||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||
| ($ Thousands) | |||||||||||||||||||
| Three Months Ended | Year Over Year Change | ||||||||||||||||||
| 30-Jun-16 | 31-Mar-16 | 30-Jun-15 | $ | % | |||||||||||||||
| Interest income | $ | 7,106 | $ | 6,820 | $ | 4,486 | $ | 2,620 | 58 | % | |||||||||
| Interest expense | (511 | ) | (422 | ) | (333 | ) | (178 | ) | 53 | % | |||||||||
| Net interest income before provision | 6,595 | 6,398 | 4,153 | 2,442 | 59 | % | |||||||||||||
| Provision to the Loan Loss Reserve | (419 | ) | (115 | ) | (94 | ) | (325 | ) | NA | ||||||||||
| Net interest income after provision | $ | 6,176 | $ | 6,283 | $ | 4,059 | $ | 2,117 | 52 | % | |||||||||
| Non-interest income | 708 | 607 | 556 | 152 | 27 | % | |||||||||||||
| Non-interest expense | (5,172 | ) | (5,386 | ) | (3,340 | ) | (1,832 | ) | 55 | % | |||||||||
| Income before tax provision | 1,712 | 1,504 | 1,275 | 437 | 34 | % | |||||||||||||
| Provision for income taxes | (643 | ) | (561 | ) | (479 | ) | (164 | ) | 34 | % | |||||||||
| Net income | $ | 1,069 | $ | 943 | $ | 796 | $ | 273 | 34 | % | |||||||||
| Preferred Dividends | 85 | 67 | 27 | 58 | 215 | % | |||||||||||||
| Income to Common Shareholders | $ | 984 | $ | 876 | $ | 769 | $ | 215 | 28 | % | |||||||||
| Basic Earnings per Common share | $ | 0.173 | $ | 0.158 | $ | 0.176 | $ | (0.003 | ) | -1 | % | ||||||||
| Weighted average shares outstanding | 5,686,101 | 5,542,507 | 4,377,738 | ||||||||||||||||
| Return on Average Assets | 0.64 | % | 0.59 | % | 0.70 | % | |||||||||||||
| Return on Average Tangible Common Equity | 6.77 | % | 6.28 | % | 6.45 | % | |||||||||||||
| Non Interest Expense to Average Total Assets | 3.10 | % | 3.79 | % | 2.93 | % | |||||||||||||
| Efficiency Ratio | 70.8 | % | 76.9 | % | 70.9 | % | |||||||||||||
| CALIFORNIA BANK OF COMMERCE | |||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||
| INCOME STATEMENT | |||||||||||||||
| ($ Thousands) | |||||||||||||||
| Six Months Ended | Year Over Year Change | ||||||||||||||
| 30-Jun-16 | 30-Jun-15 | $ | % | ||||||||||||
| Interest income | $ | 13,926 | $ | 8,787 | $ | 5,139 | 58 | % | |||||||
| Interest expense | (933 | ) | (656 | ) | (277 | ) | 42 | % | |||||||
| Net interest income before provision | 12,993 | 8,131 | 4,862 | 60 | % | ||||||||||
| Provision to the Loan Loss Reserve | (534 | ) | (98 | ) | (436 | ) | 444 | % | |||||||
| Net interest income after provision | $ | 12,459 | $ | 8,033 | $ | 4,426 | 55 | % | |||||||
| Non-interest income | 1,315 | 1,053 | 262 | 25 | % | ||||||||||
| Non-interest expense | (10,558 | ) | (6,653 | ) | (3,905 | ) | 59 | % | |||||||
| Income before tax provision | 3,216 | 2,433 | 783 | 32 | % | ||||||||||
| Provision for income taxes | (1,204 | ) | (953 | ) | (251 | ) | 26 | % | |||||||
| Net income | $ | 2,012 | $ | 1,480 | $ | 532 | 36 | % | |||||||
| Preferred Dividends | 152 | 54 | 98 | 181 | % | ||||||||||
| Income to Common Shareholders | $ | 1,860 | $ | 1,426 | $ | 435 | 30 | % | |||||||
| Basic Earnings per Common share | $ | 0.331 | $ | 0.327 | $ | 0.004 | 1 | % | |||||||
| Weighted average shares outstanding | 5,614,304 | 4,354,441 | |||||||||||||
| Return on Average Assets | 0.62 | % | 0.66 | % | |||||||||||
| Return on Avg. Tangible Common Equity | 6.53 | % | 6.10 | % | |||||||||||
| Non Interest Expense to Avg. Total Assets | 3.23 | % | 2.98 | % | |||||||||||
| Efficiency Ratio | 73.8 | % | 72.4 | % | |||||||||||
| CALIFORNIA BANK OF COMMERCE | |||||||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||||
| BALANCE SHEET | |||||||||||||||||||
| ($ Thousands) | |||||||||||||||||||
| Year Over Year Change | |||||||||||||||||||
| Assets | 30-Jun-16 | 31-Mar-16 | 30-Jun-15 | $ | % | ||||||||||||||
| Total Cash and Investments | $ | 113,029 | $ | 73,211 | $ | 78,788 | $ | 34,241 | 43 | % | |||||||||
| Loans, net of deferred costs/fees | 579,749 | 531,579 | 379,460 | 200,289 | 53 | % | |||||||||||||
| Loan Loss Reserve | (6,635 | ) | (6,200 | ) | (5,680 | ) | (955 | ) | 17 | % | |||||||||
| Other | 38,805 | 38,345 | 20,053 | 18,752 | 94 | % | |||||||||||||
| Total Assets | $ | 724,948 | $ | 636,935 | $ | 472,621 | $ | 252,327 | 53 | % | |||||||||
| Liabilities & Shareholders' Equity | |||||||||||||||||||
| Non-interest Bearing Deposits | $ | 228,927 | $ | 195,709 | $ | 155,233 | $ | 73,694 | 47 | % | |||||||||
| Interest Bearing Deposits | 384,759 | 331,045 | 226,090 | 158,669 | 70 | % | |||||||||||||
| Total Deposits | $ | 613,686 | $ | 526,754 | $ | 381,323 | $ | 232,363 | 61 | % | |||||||||
| Total Borrowings and Other Liabilities | 38,171 | 31,136 | 30,818 | 7,353 | 24 | % | |||||||||||||
| Total Liabilities | $ | 651,857 | $ | 557,890 | $ | 412,141 | $ | 239,716 | 58 | % | |||||||||
| Shareholder's Equity | $ | 73,091 | $ | 79,045 | $ | 60,480 | $ | 12,611 | 21 | % | |||||||||
| Total Liabilities & Shareholders' Equity | $ | 724,948 | $ | 636,935 | $ | 472,621 | $ | 252,327 | 53 | % | |||||||||
| Common Shares Outstanding | 5,839,134 | 5,542,837 | 4,377,738 | 1,461,396 | 33 | % | |||||||||||||
| Book Value per Common Share | $ | 12.52 | $ | 12.29 | $ | 11.31 | $ | 1.20 | 11 | % | |||||||||
Average Balances - Period | 2Q 2016 | 1Q 2016 | 2Q 2015 | ||||||||||||||||
| Total Assets | $ | 669,828 | $ | 639,882 | $ | 457,792 | |||||||||||||
| Total Loans | $ | 545,388 | $ | 519,143 | $ | 352,143 | |||||||||||||
| Total Investments | $ | 17,734 | $ | 24,996 | $ | 36,732 | |||||||||||||
| Total Earning Assets | $ | 616,777 | $ | 585,100 | $ | 430,416 | |||||||||||||
| Total Non-Interest Bearing Deposits | $ | 204,902 | $ | 208,324 | $ | 149,788 | |||||||||||||
| Total Deposits | $ | 559,817 | $ | 528,232 | $ | 366,949 | |||||||||||||
| Total Borrowings | $ | 33,231 | $ | 29,000 | $ | 29,000 | |||||||||||||
| Tangible Common Equity | $ | 63,312 | $ | 60,289 | $ | 49,472 | |||||||||||||
Average Yields and Cost | 2Q 2016 | 1Q 2016 | 2Q 2015 | ||||||||||||||||
| Net Interest Margin | 4.29 | % | 4.38 | % | 3.87 | % | |||||||||||||
| Yield on Earning Assets | 4.62 | % | 4.68 | % | 4.18 | % | |||||||||||||
| Cost of Interest Bearing Liabilities | 0.53 | % | 0.50 | % | 0.54 | % | |||||||||||||
End of Period | 30-Jun-16 | 31-Mar-16 | 30-Jun-15 | ||||||||||||||||
| Loan Loss Reserve to Total Loans | 1.14 | % | 1.17 | % | 1.50 | % | |||||||||||||
| NPAs (including accruing TDRs) to Total Assets | 0.30 | % | 0.35 | % | 0.70 | % | |||||||||||||
| Accruing TDRs to Total Assets | 0.15 | % | 0.17 | % | 0.30 | % | |||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160722005792/en/
Contacts:
Terry A. Peterson, 510-457-3615
President
and CEO
tpeterson@bankcbc.com
Mark
DeVincenzi, 510-457-3770
EVP Shareholder Relations and CMO
mdevincenzi@bankcbc.com
