California Bancorp (CALB)

[56Chevy]

California Bank of Commerce Reports Record Earnings for 2Q 2014

Date : 07/22/2014 @ 11:33AM
Source : Business Wire
Stock : California Bank Of Commerce (ca) (QB) (CABC)
Quote : $11.45 0.0 (0.00%) @ 9:30AM

California Bank of Commerce (OTCBB: CABC) reported net income of $920 thousand, or $0.32 per share, for the second quarter 2014, up from $597 thousand, or $0.21 per share, for the second quarter of 2013. For the first six month of 2014, net income was $1.7 million, or $0.58 per share, up from $1.2 million, or $0.40 per share, for the same period in 2013.

On June 30, 2014, the Bank announced the successful completion of its $16 million public stock offering. “Our Bank is growing and this new capital will help open up additional growth opportunities. We were very pleased and gratified that our existing and new shareholders were not only able to participate in our capital raise but supported it beyond our expectations,” said Steve Cortese, Chairman of California Bank of Commerce.

“Our strong results for the second quarter and first six months of 2014 reflects a continuing story of quality balance sheet growth and accelerating earnings, driven by an experienced team of banking professionals,” said Terry A. Peterson President and CEO. “With our successful capital raise behind us, we are also accelerating our search for additional experienced bankers to join our team and further fuel our growth,” said Peterson.

Continued strong quarterly financial results versus 2013:

• Net income of $920 thousand, up 54% from 2Q 2013
• Earnings per share of $0.32, up 55%
• Net interest income of $3.6 million up 17%
• Net interest margin improved to 4.17%, up from 3.88% last year
• Return on average assets reached 1% versus 0.71% last year

Strong loan and deposit growth:

• Total loans of $302 million, up $43 million or 16% from 2Q 2013
• Total deposits of $334 million, up $53 million or 19%
• Total noninterest bearing deposits of $125 million, up $36 million or 40%

Continued strong credit quality:

• Total nonperforming assets declined to 0.97% of assets, from 1.31% last year
• Loan loss reserve of $5.4 million increased 9% over last year
•Reserve ratio fell to 1.80% of total loans from 1.92% as a result of improvement in credit performance

Improved book value and stronger capital ratio:

• Tangible book value per share $10.62, up $1.02 or 11% from last year
• Capital ratios improved on stronger earnings and additional equity capital

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Net Income

Net income reached $920 thousand for the second quarter 2014, increasing $323 thousand or 54% compared to the same period in 2013. Net income improved for the quarter on increased average earning assets and an improved net interest margin. Return on average assets was 1.00% during the second quarter of 2014, compared to 0.71% for the same period in 2013, while return on average common equity reached 12.12% during the second quarter of 2014 compared to 8.97% for the second quarter of 2013.

Balance Sheet

As of June 30, 2014, Total Assets were up by $73 million or 21% to $422 million with loans up by $43 million or 16% year over year to $302 million compared to June 30, 2013. Commercial and Industrial (C&I) loans were the primary driver of loan growth, increasing $26 million over the second quarter of 2013 to $151 million. “We remain focused on our core business banking strategy exemplified by C&I loans comprising 50% of our total loan portfolio. The majority of our C&I portfolio floats with the Prime Rate making us well positioned for an eventual rising interest rate environment,” said Peterson.

For the quarter ended June, 2014, total asset growth was funded primarily with deposits, which were up by $53 million or 19%, with non-interest bearing deposits increasing by $36 million or 40% over the quarter ended June 30, 2013. Non-interest bearing deposits represented 38% of total deposits at June 30, 2014 compared to 32% at June 30, 2013.

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*This was a fantastic report for the qtr. The bank is currently selling at a P/B ratio of 107.82%