By California Bank of Commerce (OTCBB:CABC) reported net income of $2.6 million for the full year 2013. Full year return on average total assets was 0.72% and full year return on average tangible common equity was 9.48%. Net interest income reached an all time quarterly high of $3.6 million in 4Q 2013 with the Bank's net interest margin increasing to 3.97%.
"Our 2013 results reflect our ongoing success attracting new clients and growing relationships with existing clients. We have steadily grown our average earning assets and at the same time improved our margin while maintaining our credit quality," said Terry A. Peterson President and CEO. "We are very pleased with our continued growth momentum as we begin 2014," said Peterson
Full Year 2013 vs. 2012 Highlights
- Total loans increased $37 million or 15%, to $283 million
- Non-interest bearing deposits increased $21 million to $105 million, representing 36% of total deposits
- Net interest income increased $1.6 million or 14%, to $13.0 million
- Basic net income to shareholders increased $0.9 million or 56%, to $2.4 million
- Basic earnings per average common share increased 56%, to $0.89
- Net interest margin improved to 3.84% for 2013 compared to 3.71% for 2012
Earnings
Average earning assets grew by $32.1 million or 10.4% over 2012. Growth in average earning assets, primarily from loans funded by strong growth in non-interest bearing deposits, contributed to the net interest margin expansion and the increase in net interest income in 2013. "During each sequential quarter of 2013 we improved our net interest margin from the previous quarter counter to the industry trends," said Peterson. Net interest margin improved by 37 basis points to 3.97% during 4Q 2013 compared to 3.60% in 4Q 2012.
Non-Interest Income and Expense
Core non-interest income, excluding net gains on sales of securities and loans, was $1.4 million during 2013 compared to $1.1 million in 2012, growing 26% year over year.
Non-interest expense increased 13% in 2013 compared to 2012. The growth was driven in part by an increase in staff and associated benefit expenses as the Bank continues to expand its staffing levels to support current and future growth.
Balance Sheet
Total loans grew by $37 million or 15%, reaching a record high $283 million at December 31, 2013, compared to the same date a year ago. Loan growth was driven by a $19 million or 15% increase in commercial and industrial (C&I) loans, while commercial real estate loans grew by $14 million or 13% at December 31, 2013 compared to the same date in 2012. "Our Bank continues to successfully execute its business banking strategy, with a focus on C&I lending (50% of total loans) and an industry leading treasury management team," said Peterson.
Total deposits were $294 million at December 31, 2013, growing by $13 million over the same date last year. Non-interest bearing deposits remained at record levels for the Bank at $104 million at December 31, 2013, increasing by $21 million or 26% compared to the same date last year. Non-interest bearing deposits represented 36% of total deposits at the end of the fourth quarter 2013, compared to 30% at the end of the fourth quarter 2012.
As of December 31, 2013, total assets increased $15 million or 4% to $364 million compared to December 31, 2012.
Loan Quality
Total non-performing assets (NPAs) decreased to 0.70% of total assets at December 31, 2013 compared to 1.26% at December 31, 2012. "We continue to improve our overall loan quality as the SF Bay Area economy has expanded at a faster rate than the national economy," said John Lindstedt, Chief Credit Officer. At December 31, 2013, the loan loss reserve ratio stood at 1.86%, down from 1.90% at December 31, 2012 as the Bank continues to experience improving loan portfolio quality.
About California Bank of Commerce
California Bank of Commerce was designed and built to provide a unique banking experience for its clients. The Bank offers a broad range of commercial banking services to closely held businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at (925) 283-2265, or visit us at www.californiabankofcommerce.com.
| CALIFORNIA BANK OF COMMERCE | |||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||
| INCOME STATEMENT | |||||||||||||||
| ($ Thousands) | |||||||||||||||
| Twelve Months Ended | Year Over Year Change | ||||||||||||||
| 31-Dec-13 | 31-Dec-12 | $ | % | ||||||||||||
| Interest income | $ | 14,420 | $ | 13,048 | $ | 1,372 | 11 | % | |||||||
| Interest expense | (1,384 | ) | (1,611 | ) | 227 | -14 | % | ||||||||
| Net interest income before provision | 13,036 | 11,437 | 1,599 | 14 | % | ||||||||||
| Provision to the Loan Loss Reserve | (264 | ) | (1,250 | ) | 986 | -79 | % | ||||||||
| Net interest income after provision | $ | 12,772 | $ | 10,187 | $ | 2,585 | 25 | % | |||||||
| Non-interest income | 1,469 | 1,740 | (271 | ) | -16 | % | |||||||||
| Non-interest expense | (9,919 | ) | (8,807 | ) | (1,112 | ) | 13 | % | |||||||
| Income before tax provision | 4,322 | 3,120 | 1,202 | 39 | % | ||||||||||
| Provision for income taxes | (1,766 | ) | (1,354 | ) | (412 | ) | 30 | % | |||||||
| Net income | $ | 2,556 | $ | 1,766 | $ | 790 | 45 | % | |||||||
| Preferred Dividends | 110 | 202 | (92 | ) | -46 | % | |||||||||
| Income to Common Shareholders | $ | 2,446 | $ | 1,564 | $ | 882 | 56 | % | |||||||
| Basic Earnings per Common share | $ | 0.886 | $ | 0.569 | $ | 0.317 | 56 | % | |||||||
| Weighted Average Shares Outstanding | 2,760,432 | 2,750,217 | 10,215 | 0 | % | ||||||||||
| Return on Average Assets | 0.72 | % | 0.54 | % | |||||||||||
| Return on Average Tangible Common Equity | 9.48 | % | 7.06 | % | |||||||||||
| Non Interest Expense to Average Total Assets | 2.78 | % | 2.72 | % | |||||||||||
| Efficiency Ratio | 68.4 | % | 66.8 | % | |||||||||||
| Core Non Interest Income to Average Assets | 0.385 | % | 0.337 | % | |||||||||||
| Net Gains from Asset Sales to Average Assets | 0.027 | % | 0.200 | % | |||||||||||
| Total Non Interest Income to Average Assets | 0.412 | % | 0.537 | % | |||||||||||
| CALIFORNIA BANK OF COMMERCE | |||||||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||
| ($ Thousands) | |||||||||||||||||||
| Three Months Ended | Year Over Year Change | ||||||||||||||||||
| 31-Dec-13 | 30-Sep-13 | 31-Dec-12 | $ | % | |||||||||||||||
| Interest income | $ | 3,908 | $ | 3,701 | $ | 3,422 | $ | 486 | 14 | % | |||||||||
| Interest expense | (319 | ) | (343 | ) | (403 | ) | 84 | -21 | % | ||||||||||
| Net interest income before provision | 3,589 | 3,358 | 3,019 | 570 | 19 | % | |||||||||||||
| Provision to the Loan Loss Reserve | 85 | (79 | ) | (250 | ) | 335 | -134 | % | |||||||||||
| Net interest income after provision | $ | 3,674 | $ | 3,279 | $ | 2,769 | $ | 905 | 33 | % | |||||||||
| Non-interest income | 429 | 401 | 584 | (155 | ) | -27 | % | ||||||||||||
| Non-interest expense | (2,890 | ) | (2,394 | ) | (2,423 | ) | (467 | ) | 19 | % | |||||||||
| Income before tax provision | 1,213 | 1,286 | 930 | 283 | 30 | % | |||||||||||||
| Provision for income taxes | (552 | ) | (542 | ) | (402 | ) | (150 | ) | 37 | % | |||||||||
| Net income | $ | 661 | $ | 744 | $ | 528 | $ | 133 | 25 | % | |||||||||
| Preferred Dividends | 28 | 28 | 28 | - | 0 | % | |||||||||||||
| Income to Common Shareholders | $ | 634 | $ | 716 | $ | 500 | $ | 133 | 27 | % | |||||||||
| Basic Earnings per Common share | $ | 0.229 | $ | 0.260 | $ | 0.182 | $ | 0.047 | 26 | % | |||||||||
| Weighted Average Shares Outstanding | 2,768,263 | 2,758,875 | 2,750,861 | ||||||||||||||||
| Return on Average Assets | 0.70 | % | 0.81 | % | 0.60 | % | |||||||||||||
| Return on Average Tangible Common Equity | 9.38 | % | 10.91 | % | 8.15 | % | |||||||||||||
| Non Interest Expense to Average Total Assets | 3.04 | % | 2.60 | % | 2.75 | % | |||||||||||||
| Efficiency Ratio | 71.9 | % | 63.7 | % | 67.2 | % | |||||||||||||
| CALIFORNIA BANK OF COMMERCE | ||||||||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | ||||||||||||||||||||
| BALANCE SHEET | ||||||||||||||||||||
| ($ Thousands) | ||||||||||||||||||||
| Year Over Year Change | ||||||||||||||||||||
| Assets | 31-Dec-13 | 30-Sep-13 | 31-Dec-12 | $ | % | |||||||||||||||
| Total Cash and Investments | $ | 72,255 | $ | 94,562 | $ | 96,284 | $ | (24,029 | ) | -25 | % | |||||||||
| Loans, net of deferred costs/fees | 282,829 | 274,124 | 246,149 | $ | 36,680 | 15 | % | |||||||||||||
| Loan Loss Reserve | (5,250 | ) | (5,200 | ) | (4,675 | ) | $ | 575 | 12 | % | ||||||||||
| Other | 14,522 | 12,047 | 11,839 | $ | 2,683 | 23 | % | |||||||||||||
| Total Assets | $ | 364,356 | $ | 375,533 | $ | 349,597 | $ | 14,759 | 4 | % | ||||||||||
| Liabilities & Shareholders' Equity | ||||||||||||||||||||
| Non-interest Bearing Deposits | $ | 104,642 | $ | 104,319 | $ | 83,182 | $ | 21,460 | 26 | % | ||||||||||
| Interest Bearing Deposits | 189,499 | 201,842 | 198,301 | $ | (8,802 | ) | -4 | % | ||||||||||||
| Total Deposits | $ | 294,141 | $ | 306,161 | $ | 281,483 | $ | 12,658 | 4 | % | ||||||||||
| Total Borrowings and Other Liabilities | 31,334 | 31,016 | 31,418 | $ | (84 | ) | 0 | % | ||||||||||||
| Total Liabilities | $ | 325,475 | $ | 337,177 | $ | 312,901 | $ | 12,574 | 4 | % | ||||||||||
| Shareholder's Equity | $ | 38,881 | $ | 38,356 | $ | 36,696 | $ | 2,185 | 6 | % | ||||||||||
| Total Liabilities & Shareholders' Equity | $ | 364,356 | $ | 375,533 | $ | 349,597 | $ | 14,759 | 4 | % | ||||||||||
| Shares Outstanding | 2,768,893 | 2,766,893 | 2,757,243 | 11,650 | - | |||||||||||||||
| Book Value per Common Share | $ | 10.09 | $ | 9.91 | $ | 9.34 | $ | 0.75 | 8 | % | ||||||||||
| Annual | Annual | |||||||||||||||||||
Average Balances - Period | 4Q 2013 | 3Q 2013 | 4Q 2012 | 2013 | 2012 | |||||||||||||||
| Total Assets | $ | 377,403 | $ | 365,284 | $ | 349,707 | $ | 356,736 | $ | 323,974 | ||||||||||
| Total Loans | $ | 272,267 | $ | 263,560 | $ | 238,327 | $ | 257,462 | $ | 228,675 | ||||||||||
| Total Investments | $ | 45,479 | $ | 40,874 | $ | 44,041 | $ | 44,639 | $ | 36,823 | ||||||||||
| Total Earning Assets | $ | 359,143 | $ | 348,533 | $ | 332,511 | $ | 339,619 | $ | 307,539 | ||||||||||
| Total Non-Interest Bearing Deposits | $ | 110,192 | $ | 97,879 | $ | 79,119 | $ | 92,815 | $ | 66,484 | ||||||||||
| Total Deposits | $ | 307,259 | $ | 296,796 | $ | 281,940 | $ | 287,937 | $ | 258,512 | ||||||||||
| Total Borrowings | $ | 29,000 | $ | 29,000 | $ | 29,000 | $ | 29,000 | $ | 27,888 | ||||||||||
| Tangible Common Equity | $ | 27,983 | $ | 27,037 | $ | 25,771 | $ | 26,973 | $ | 24,950 | ||||||||||
| Annual | Annual | |||||||||||||||||||
Average Yields and Cost | 4Q 2013 | 3Q 2013 | 4Q 2012 | 2013 | 2012 | |||||||||||||||
| Net Interest Margin | 3.97 | % | 3.82 | % | 3.60 | % | 3.84 | % | 3.71 | % | ||||||||||
| Yield on Earning Assets | 4.32 | % | 4.21 | % | 4.08 | % | 4.25 | % | 4.23 | % | ||||||||||
| Cost of Interest Bearing Liabilities | 0.56 | % | 0.60 | % | 0.69 | % | 0.62 | % | 0.73 | % | ||||||||||
End of Period | 31-Dec-13 | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||
| Loan Loss Reserve to Total Loans | 1.86 | % | 1.90 | % | 1.90 | % | ||||||||||||||
| NPAs (incl non performing TDRs) to Total Assets | 0.37 | % | 0.36 | % | 0.45 | % | ||||||||||||||
| Performing TDRs to Total Assets | 0.33 | % | 0.53 | % | 0.81 | % | ||||||||||||||
| Total NPAs | 0.70 | % | 0.89 | % | 1.26 | % | ||||||||||||||
| Tier I Leverage Ratio | 10.36 | % | 10.49 | % | 10.37 | % | ||||||||||||||
California Bank of Commerce
Terry A. Peterson
President and CEO
tpeterson@bankcbc.com
or
Mark
DeVincenzi, 925-444-2916
EVP Shareholder Relations & CMO
mdevincenzi@bankcbc.com
