Commercial Capital Bancorp Inc
Commercial Capital Bancorp — Investor Presentation (February 2006)
36 slides from Commercial Capital Bancorp's investor presentation, Feb 23, 2006
Slide 1: Investor Presentation February 2006
INVESTOR PRESENTATION NASDAQ: CCBI February 2006
Slide 2: Regulation FD
Regulation FD This presentation may include forward-looking statements related to the plans, beliefs and goals of the Company, its subsidiaries, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks
Slide 3: Focused on the Needs of Commercial Real Estate Investors
Focused on the Needs of Commercial Real Estate Investors Commercial Real Estate Investor COMMERCIAL BANKING and CORPORATE FINANCIAL SERVICES 1031 EXCHANGE SERVICES RETAIL BANKING COMMERCIAL REAL ESTATE LENDING MULTI-FAMILY, COMMERCIAL & CONSTRUCTION RELATIONSHIP BANKING
Slide 4: Growth History 1998-1999
Growth History 1998-1999 April, Company founded by Stephen Gordon and David Depillo as Financial Institutional Partners M ortgage Corporation July, funded first loan Ended ’98 as 10 th largest lender of multifamily loans in California for the full year Ended ’99 as 4 th largest lender of multifamily
Slide 5: Growth History 2000-2001
Growth History 2000-2001 January, bought Mission S&L total assets ~ $44 million Renamed bank… “Commercial Capital Bank” Moved Headquarters to Irvine December, rolled FIPMC and the Bank into Commercial Capital Bancorp, Inc December 31 st , total assets of $181.5 million December 31 st , total assets
Slide 6: Growth History 2002-2004
Growth History 2002-2004 December, completed IPO market cap of ~ $125 million December 31 st , total assets of $849.5 million December 31 st , total assets of $1.7 billion, market cap ~ $481.1 million Ended ’03 as 3rd largest lender of multifamily loans in California June, acquired Hawthorne Financi
Slide 7: Growth History 2005
Growth History 2005 Februa ry, acquired TIMCOR Exchange Corporation ~ $400 million exchange balances May, acquired No rth American Exchange Company ~ $175 million of exchange balances November, announced signing of agreement to acquire Calnet Business Bank with $176.6 million of total assets, $152.9
Slide 8: Experienced Executive Team
Experienced Executive Team The Company has built its management team with seasoned executives that have significant expertise in the company’s areas of focus. This expertise includes tenure with a variety of organizations in significant roles. Large banking institutions Fortune 1,000 companies Regul
Slide 9: Experienced Executive Team
Experienced Executive Team <1 EVP General Counsel Don Royer EVP Commercial Banking James Daley EVP Retail Banking Richard Grout EVP Relationship Banking Chris Walsh EVP Asset Quality Rob Noble Chief Administrative Officer Richard Sanchez Chief Lending Officer Robert Williams <1 Chief Financial Offic
Slide 10: Statewide Banking Presence
Statewide Banking Presence Headquartered in Irvine, California 10 Loan Offices Alameda County Contra Costa County Los Angeles County Marin County Orange County San Diego County San Mateo County Chicago, Illinois 23 Banking Offices Los Angeles County Orange County Riverside County San Diego County Sa
Slide 11: Nationwide 1031 Exchange Accommodator Presence
Nationwide 1031 Exchange Accommodator Presence TIMCOR Exchange Corporation North American Exchange Company
Slide 12: Income Property Focus
Income Property Focus CCB is a leading income property lender, and the third largest originator of multifamily loans in California Predominately adjustable rate portfolio lender Fixed rate programs through Fannie Mae and conduit Permanent and bridge Additional loan products Construction Single-famil
Slide 13: Lending Focus
Lending Focus The focus on retail loan production, with strict credit underwriting has created valuable origination franchise that is a key component of the company’s strategy. 95.7% of loan fundings are core Greater control over credit quality Greater opportunity to build relationships with the cus
Slide 14: Loan Funding Composition
Loan Funding Composition ($ in thousands)
Slide 15: Loan Funding Chart ($ in millions)
in malions) $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $1,689.7 2003 BCore 2004 2005 Non-core
Slide 16: Adjustable Rate Lender
Adjustable Rate Lender Fixed 73,344 $ 18,897 $ 11,335 $ 12 MAT 1,339,048 1,084,701 715,188 6 mo CMT 189,241 159,370 73,433 Prime 370,982 146,228 13,656 COFI 250,653 165,068 4,500 LIBOR 191,164 115,438 141,070 Other 34,852 - - Core Loan Fundings 2,449,284 $ 1,689,702 $ 959,182 $ ($ in thousands)
Slide 17: Income Property Loan Funding Data
Income Property Loan Funding Data Multifamily Average LTV 65.9% 68.0% 67.6% Average DCR 1.22 1.27 1.29 Ratio of ARMS 97.8% 99.0% 98.9% Ratio of Refinancings 45.8% 51.7% 66.4% Commercial Average LTV 61.5% 64.6% 62.9% Average DCR 1.47 1.45 1.41 Ratio of ARMS 91.3% 98.9% 96.9% Ratio of Refinancings 69.
Slide 18: Loan Portfolio Mix
Loan Portfolio Mix $3,051 $602 December 2005 Multifamily 70% Commercial Real Estate 14% Single- family 9% Const & Land 7% $395 $277 Multifamily Commercial RE Single-family Construction & Land
Slide 19: Diversified Funding Strategy
Diversified Funding Strategy Retail banking provides stable funds and builds banking relationships 1031 exchange accommodation strategy provides low cost funding source which is linked to primary lending business Commercial banking provides cash management and treasury services to corporate clients
Slide 20: Borrowings Mix, December 2005
Other Dec. 2005 Borrowings 5% FHLB Advances 34% Exchange Balances C3 13%
Slide 21: Retail & Relationship Banking
Retail & Relationship Banking 23 retail banking offices led by Relationship Managers Products and services to meet the needs of the high net worth clients, including income property investors Deposit products and services Loan products Active and committed to the community
Slide 22: Deposit Mix, December 2005
DDA Savings Dec 2005 $213 $147 9% 7% Money Market cD $720 $1,179 a 52%
Slide 23: Deposits ($ in millions)
(6 m millions) $2,500 $2,000 $1500 $1,000 $500 $0. 2003 2004 2005 G Transaction balances [Time deposits
Slide 24: Commercial Banking
Commercial Banking Provides treasury and cash management services to: Title and escrow companies 1031 exchange accommodators Property management companies Fiduciary and corporate financial services companies
Slide 25: 1031 Exchange Accommodators
1031 Exchange Accommodators 1031 Exchange Accommodators provide services for real estate investors, who are selling real estate and seek to defer taxes and reinvest the proceeds in a replacement property. If the transaction complies with IRS requirements, the investor may defer the tax on the sale.
Slide 26: 1031 Exchange Accommodators
1031 Exchange Accommodators 1. Low cost source of funds (0.86% for 2005) 2. Provides fee income from accommodation services 3. Builds relationships with real estate investors for loan, deposit and other banking services Building a 1031 Exchange Accommodation business provides the company with a numb
Slide 27: 1031 Exchange Services
1031 Exchange Services North American Exchange Company Acquired May 2005 NAEC is Headquartered in Walnut Creek, CA and facilitates 1031 exchange transactions nationwide: Long Beach, CA Seattle, WA Sacramento, CA Denver, CO Miami, FL Washington DC Dallas, TX Charlotte, NC TIMCOR Exchange Corporation
Slide 28: Funding Sources ($ in millions)
Gin mations) $2,500 $2,000 $1,500 $1,000 $500 $o + 2003 2004 2005 G@FHLB Advances (Exchange Balances Ol Other
Slide 29: Growth Strategy
Growth Strategy Organic De Novo: Crystal Cove, January 2006 Valencia, Spring 2006 Pasadena, Summer 2006 Acquisition: Calnet Business Bank $152 million of deposits Lawyers Asset Management $100 million of exchange balances
Slide 30: Acquisition Strategy
Acquisition Strategy The Company will evaluate potential acquisitions that: Immediately will be accretive to earnings Continues to build the exchange business More fully adds financial service capabilities to serve the banking needs of the commercial real estate investor (title, escrow, etc) Strengt
Slide 31: Operating Performance
Operating Performance ($ in thousands, except per share data) Net interest income 152,927 $ 113,022 $ 41,234 $ Recapture of losses 8,109 - - Noninterest income 24,147 15,087 9,169 Noninterest expenses (68,971) (37,652) (15,446) Net income before taxes 116,212 90,457 34,957 Income tax expense (41,863
Slide 32: Performance Indicators
Performance Indicators Net interest margin 3.27% 3.40% 3.30% Operating efficiency ratio 38.6% 29.1% 28.1% G&A to average assets 1.31% 0.99% 1.09% Effective income tax rate 36.0% 37.8% 39.3% Dividend payout ratio 21.7% 7.4% - Return on average assets 1.42% 1.55% 1.57% Return on average equity 11.1% 1
Slide 33: Interest Yields and Costs
Interest Yields and Costs Interest Earning Assets Loans 5.76% 5.42% 5.84% Securities 4.37% 4.29% 4.53% FHLB stock 4.41% 3.98% 4.36% Cash and cash equivalents 2.90% 1.44% 1.02% Total yield on interest earning assets 5.60% 5.20% 5.30% Interest bearing liabilities Transaction accounts 2.04% 1.69% 2.17%
Slide 34: Financial Indicators
Financial Indicators ($ in thousands, except per share data) Loans receivable 4,335,538 $ 3,914,780 $ 1,062,525 $ Investment securities 384,144 491,265 560,729 Total assets 5,463,549 5,023,924 1,723,139 Deposits 2,260,082 2,256,781 645,596 FHLB advances 1,597,806 1,856,349 822,519 Exchange balances
Slide 35: Regulatory Capital Ratios
Regulatory Capital Ratios Well Capitalized Core capital 5.00% 8.75% 8.01% 7.97% Tier I risk based capital 6.00% 11.72% 11.11% 13.47% Risk based capital 10.00% 12.48% 12.21% 13.87% Bank Actual
Slide 36: February 2006
INVESTOR PRESENTATION NASDAQ: CCBI February 2006
Commercial Capital Bancorp — Investor Presentation (February 2006) on 6ix