CABC Begins 2012 with Record Loans in First Quarter

LAFAYETTE, Calif.--(BUSINESS WIRE)--

California Bank of Commerce CABC capped its strongest quarterly performance to date by announcing unaudited financial results for the Quarter ending March 31, 2012. The Bank achieved new record levels for Gross Loans, Total Assets, and Pre-tax Income.

Highlights: First Quarter 2012 versus First Quarter 2011

• Total Loans grew $48 million or 28%, to $220 million
• Total Deposits grew $56 million or 30%, to $243 million
• Net Interest Income grew $560,000 or 27% to $2.6 million
• Pre-tax Income grew $345,000 or 136% to $599,000

Highlights: First Quarter 2012 versus Fourth Quarter 2011

• Total Loans grew $12 million or 6%
• Net Interest Income grew $81,000 or 3%
• Pre-tax Income grew $45,000 or 8%

First Quarter 2012 Earnings

Net Income for the Quarter was $334,000 or $0.122 per share, before preferred stock dividends of $0.01 per share, compared with $132,000 for the First Quarter of 2011, or $0.048 per share, before preferred stock dividends of $0.02 per share.

The Bank's Net Interest Margin was 3.66% for the First Quarter 2012 versus 3.83% for the same period last year. Yield on Loans was 5.70% in the First Quarter 2012, up 3 basis points compared to 5.67% for the same period last year. Investment yields continued to decline from last year, negatively impacting the Bank's margin. The Cost of Interest Bearing Deposits was 0.61% in the First Quarter of 2012 compared to 0.77% for the same period last year.

2012 Balance Sheet Growth

At Quarter-end, Total Loans reached a new record of $220 million at March 31, 2012. Commercial and industrial (C&I) loans, the Bank's core strategic focus, grew 42% or $29 million over the same quarter last year. The Bank's two newest business units, Asset Based Lending and Medical Practice Finance, were significant contributors to recent C&I loan growth. Non-Interest bearing (NIB) Deposits of $57 million at March 31, 2012 were up 34% or $15 million over the First Quarter of 2011. NIB accounts are comprised primarily of the operating accounts of the Bank's growing roster of business clients.

“The first quarter has historically been slow, but in 2012, the Bank has made an unusually strong start to the year,” said John E. Rossell III, President and CEO.

Asset Quality and Capital

At March 31, 2012, Non-Performing Loans were 0.54% of Total Assets, down from 0.75% at March 31, 2011. The ratio increased slightly from 0.33% at December 31, 2011. “Our portfolio remains strong. In a challenging economy, we continue to monitor loan quality closely, to ensure the Bank's health,” said Rossell.

The Bank's Capital remains above the “well capitalized” standard. Tier I (T-1) leverage ratio was at 11.2% at March 31, 2012 compared to 11.0% a year ago. Total Risk Based (TRB) Capital was 15.0% at March 31, 2012 compared to 13.8% a year ago. The “well capitalized” standards for T-1 and TRB capital are 8%% and 10%, respectively.

Other News

President and CEO, John E. Rossell III announced his planned retirement, effective February 28, 2013. The Board will initiate a search for a new President and CEO. Mr. Rossell was the first President and CEO of the Bank and is a member of the Board of Directors.

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
		31-Mar-12				31-Dec-11				31-Mar-11
Interest income		$	2,994			$	2,949			$	2,405
Interest expense			(382	)			(418	)			(351	)
Net interest income before provision		$	2,612			$	2,531			$	2,054
Provision to the Loan Loss Reserve			(290	)			(160	)			(300	)
Net interest income after provision		$	2,322			$	2,371			$	1,754
Non-interest income			277				215				323
Non-interest expense			(2,000	)			(2,031	)			(1,823	)
Income before tax provision			599				555				254
Provision for income taxes			(265	)			(237	)			(122	)
Net income - Period		$	334			$	318			$	132
Earnings Per Common Share
Income per Common share		$	0.122			$	0.116			$	0.048
Basic Income per Common share		$	0.112			$	0.104			$	0.028
Weighted average shares outstanding			2,750,000				2,750,000				2,750,000

CALIFORNIA BANK OF COMMERCE
UNAUDITED SUMMARY FINANCIAL STATEMENTS
BALANCE SHEET
($ Thousands)
														12 Month
Assets		31-Mar-12				31-Dec-11				31-Mar-11				% Change
Total Cash and Investments		$	80,638			$	84,730			$	59,380			36%
Loans, net of deferred costs/fees			219,990				208,119				171,518			28%
Loan Loss Reserve			(4,400	)			(4,175	)			(3,555	)		24%
Other			12,449				9,871				6,305			97%
Total Assets		$	308,677			$	298,545			$	233,648			32%
Liabilities & Shareholders' Equity
Non-interest Bearing Deposits		$	57,610			$	55,465			$	43,086			34%
Interest Bearing Deposits			185,683				188,438				144,378			29%
Total Deposits		$	243,293			$	243,903			$	187,464			30%
Total Borrowings and Other Liabilities			30,281				19,999				19,099			59%
Total Liabilities		$	273,574			$	263,902			$	206,563			32%
Shareholder's Equity		$	35,103			$	34,643			$	27,085			30%
Total Liabilities & Shareholders' Equity		$	308,677			$	298,545			$	233,648			32%
Book Value per Common Share		$	8.78			$	8.62			$	8.38			5%
Quarterly Information
Net Interest Margin			3.66	%			3.63	%			3.83	%
Yield on Earning Assets			4.20	%			4.22	%			4.48	%
Cost of Interest Bearing Liabilities			0.74	%			0.85	%			0.92	%
Loan Loss Reserve to Total Loans			2.01	%			2.01	%			2.08	%
Non-Performing Loans to Total Assets			0.54	%			0.33	%			0.75	%
Leverage Ratio			11.2	%			11.4	%			11.0	%
Tier 1 Risk Based Capital Ratio			13.7	%			14.0	%			12.6	%
Total Risk Based Capital Ratio			15.0	%			15.3	%			13.8	%
Non Interest Expense to Avg. Total Assets			2.67	%			2.77	%			3.27	%
Efficiency Ratio			69.2	%			74.0	%			76.7	%