CCBI Commercial Capital Bancorp

Commercial Capital Bancorp, Inc. (NASDAQ:CCBI): -- Diluted earnings per share of $0.24 on net income of $13.8 million -- Non-GAAP diluted earnings per share of $0.26 on net income of $15.5 million -- Board of Directors approves cash dividend of $0.075 per share -- Company signs definitive agreement of merger with Washington Mutual Commercial Capital Bancorp, Inc. (the "Company") (NASDAQ:CCBI), today announced net income of $13.8 million or $0.24 per diluted share for the first quarter of 2006, and excluding the direct costs of the Commercial Banking Division and other one-time costs, Non-GAAP net income of $15.5 million or $0.26 per diluted share during the first quarter of 2006. The Company's Board of Directors declared a cash dividend of $0.075 per share for shareholders of record on May 17, 2006 to be paid on May 31, 2006. On April 23, 2006, the Company and Washington Mutual, Inc. jointly announced that they had entered into a definitive agreement pursuant to which Washington Mutual will acquire all of the outstanding shares of Commercial Capital Bancorp, Inc. in an all cash transaction that values each share of Commercial Capital Bancorp common stock at $16.00, or approximately $983 million in aggregate. The transaction is expected to close in the third quarter of 2006, pending regulatory approval, approval of the transaction by the Company's stockholders and satisfaction of other customary closing conditions. The financial results for the first quarter of 2006 reflect the continuing implementation of the Company's core growth strategies. -- Total assets grew to a record $5.7 billion at March 31, 2006. The growth in assets, during the quarter, was generated by the Bank's strong fundings of multifamily, commercial real estate and construction loans and through the acquisition of Calnet Business Bank. -- On March 3, 2006, the Company completed the acquisition of Calnet, a Sacramento, California-based community bank. -- On March 30, 2006, the Company completed the acquisition of Lawyers Asset Management, Inc., an Oakland, California-based 1031 exchange accommodator. -- Loan fundings of $510.2 million were achieved during the first quarter of 2006, of which $325.0 million or 64% were income property loans. Additionally, through the Calnet acquisition, the Company added $108 million of prime-based loans during the quarter. -- Total deposits reached $2.5 billion, an increase of $237 million, or 10% from December 31, 2005. -- Commercial business banking deposits totaled $384.2 million at March 31, 2006, including the impact from the Calnet acquisition. -- Net interest income increased to $38.1 million for the first quarter of 2006 compared to $37.4 million for the fourth quarter of 2005. -- Total revenues in the first quarter of 2006 reached $81.0 million, the highest level for any quarter in the Company's history. -- 1031 exchange balances totaled $637.6 million at March 31, 2006. Exchange balances averaged $566.9 million with an average cost of 1.00% for the first quarter of 2006. -- In January 2006, the Bank opened its Crystal Cove banking office in Newport Coast, California. The Crystal Cove office has been successful in gathering deposits in its initial months of operations and held $18.9 million of transaction account deposits, at March 31, 2006. The Bank has also announced plans to open banking offices in Valencia, and Pasadena, California, which are scheduled to open in spring 2006 and summer 2006, respectively. -- As part of an overhead reduction, efficiency improvement program, the Company announced a reduction in force and began implementing other cost savings measures. The implementation of the previously announced overhead reduction program resulted in a one-time charge of approximately $830,000, pre-tax, in the first quarter of 2006. The comparability of the Company's quarterly results is affected by the acquisitions that occurred during 2005 and 2006. The Company's operating results from the first quarter of 2006 include the operations of TIMCOR and NAEC, which were acquired in February 2005 and May 2005, respectively, and Calnet and LAMI, which were acquired on March 3, 2006 and March 30, 2006, respectively. -0- *T First Quarter Financial Summary ($ in 000's, except per share data) 2006 2005 Change % Change --------- --------- ---------- --------- Total revenues(i) $81,041 $65,989 $15,052 22.8% Net interest income, after provision 38,076 46,443 -8,367 -18.0 Non-interest income 4,791 3,748 1,043 27.8 G&A Expenses 22,047 12,654 9,393 74.2 Net income 13,790 23,087 -9,297 -40.3 Basic EPS 0.24 0.42 -0.18 -42.9 Diluted EPS 0.24 0.40 -0.16 -40.0 Yield on earning assets 6.21% 5.31% 0.90 16.9 Cost of funds 3.27 2.16 1.11 51.4 Net interest margin 3.10 3.27 -0.17 -5.2 ROAA 1.00 1.78 -0.78 -43.8 ROAA - Tangible 1.08 1.92 -0.84 -43.8 ROAE 7.60 14.41 -6.81 -47.3 ROAE - Tangible 17.50 34.49 -16.99 -49.3 Efficiency ratio 51.43 30.07 21.36 71.0 G&A to total assets 1.60 0.98 0.62 63.3 Effective income tax rate 33.20 38.23 -5.03 -13.2 Core loan fundings(ii) $492,449 $595,129 -$102,680 -17.3 Total loan fundings(iii) 510,189 607,824 -97,635 -16.1 *T Because of the Company's announced signing of an acquisition agreement with Washington Mutual, Inc., the Company's previously announced earnings call scheduled for later this morning will not be held. Commercial Capital Bancorp, Inc. is a diversified financial services company with $5.7 billion of total assets, at March 31, 2006. The Company provides depository and lending products and services under the Commercial Capital Bank brand name, and provides 1031 exchange services to income property investors nationwide under the TIMCOR Exchange Corporation, North American Exchange Company and Lawyers Asset Management brand names. This press release and statements made by the Company's or Washington Mutual's management may contain forward-looking statements regarding the Company and Washington Mutual and the proposed merger. These statements involve certain risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: governmental approval of the merger may not be obtained or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; the stockholders of Company may fail to provide the required approval to consummate the merger. The Company and Washington Mutual undertake no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. This press release may be deemed to be solicitation material with respect to the proposed acquisition of the Company by Washington Mutual pursuant to the merger. In connection with the proposed transaction, a proxy statement for the Company will be filed with the SEC to be distributed to the shareholders of the Company in connection with their vote on the merger. SHAREHOLDERS OF THE COMPANY ARE ENCOURAGED TO READ THE PROXY STATEMENT BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. The final proxy statement will be mailed to shareholders of the Company. Investors and security holders will be able to obtain the documents free of charge at the SEC's website, www.sec.gov. In addition, investors may obtain free copies of the documents filed with the SEC by the companies by contacting: Investor Relations, Commercial Capital Bancorp, Inc., 8105 Irvine Center Drive, 15th Floor Irvine, CA 92618, telephone: 949-585-7500 or by visiting the Company's website at www.commercialcapital.com. The Company is not currently engaged in a solicitation of proxies of the security holders of the Company in connection with Washington Mutual, Inc.'s proposed acquisition of the Company. If a proxy solicitation commences, the Company and its directors and executive officers and other members of management and employees may be deemed to participate in the solicitation of proxies in respect of the proposed transactions. Information regarding the Company's directors and executive officers is set forth in its proxy statement dated March 28, 2006, which is available by contacting the Company at the telephone number set forth above. -0- *T (i)Total revenue is defined as interest income plus noninterest income. (ii)The Company defines core loan fundings to exclude those loans funded through its strategic alliance with Greystone Servicing Corporation, a Fannie Mae DUS lender, and the Company's other broker and conduit channels. (iii)The Company defines total loan fundings to include loans that are originated or purchased by the Company during the period. COMMERCIAL CAPITAL BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in Thousands) Mar. 31, 2006 Dec. 31, 2005 Sept. 30, 2005 ---------------------------------------------------------------------- ASSETS Cash and Cash Equivalents $ 41,607 $ 33,735 $ 69,112 Securities Available For Sale 366,092 384,144 408,338 FHLB Stock 86,412 84,788 84,314 Loans Held for Investment Single Family 428,904 394,678 246,400 Multifamily 3,110,643 3,050,931 2,897,778 Commercial Real Estate 692,635 601,665 534,599 Construction 247,638 202,237 186,583 Land 94,695 74,948 48,414 ------------- ------------- -------------- Total Real Estate Loans 4,574,515 4,324,459 3,913,774 Business and Other Loans 32,746 12,396 18,085 ------------- ------------- -------------- Total Loans Held for Investment 4,607,261 4,336,855 3,931,859 Net Deferred Fees, Premiums and Discounts 5,100 3,427 319 Allowance for Loan Losses (29,955) (28,705) (28,723) ------------- ------------- -------------- Total Loans Held for Investment, Net 4,582,406 4,311,577 3,903,455 Loans Held for Sale 35,974 23,961 165,760 ------------- ------------- -------------- Total Loans 4,618,380 4,335,538 4,069,215 Fixed Assets - Net 11,921 15,838 16,624 Foreclosed Assets - - - Accrued Interest Receivable 23,888 21,909 19,652 Goodwill 422,558 397,164 394,080 Core Deposit Intangible 6,675 5,251 5,414 Bank-Owned Life Insurance 119,028 114,409 93,290 Affordable Housing Investments 32,114 33,035 33,956 Other Assets 15,618 28,843 41,664 ---------------------------------------------------------------------- TOTAL ASSETS $ 5,744,293 $ 5,454,654 $ 5,235,659 ====================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Demand Deposits - Noninterest-Bearing $ 248,053 $ 141,597 $ 140,185 Demand Deposits - Interest-Bearing 74,828 71,386 74,063 Money Market Checking 530,216 348,137 212,637 Money Market Savings 240,450 372,230 438,313 Savings 115,643 147,386 173,481 ------------- ------------- -------------- Total Transaction Deposits 1,209,190 1,080,736 1,038,679 Retail Time Deposits 1,087,982 1,028,546 1,001,281 Broker Time Deposits 199,940 150,800 55,845 ------------- ------------- -------------- Total Time Deposits 1,287,922 1,179,346 1,057,126 ------------ ------------ ------------- Total Deposits 2,497,112 2,260,082 2,095,805 Borrowings FHLB Advances 1,602,295 1,597,806 1,510,917 Exchange Balances 637,554 623,284 679,526 Junior Subordinated Debentures 149,817 149,962 150,107 Other Borrowings 50,000 72,000 69,000 ------------- ------------- -------------- Total Borrowings 2,439,666 2,443,052 2,409,550 Other Liabilities 52,460 53,403 49,578 ---------------------------------------------------------------------- TOTAL LIABILITIES 4,989,238 4,756,537 4,554,933 STOCKHOLDERS' EQUITY 755,055 698,117 680,726 ---------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,744,293 $ 5,454,654 $ 5,235,659 ====================================================================== June 30, 2005 Mar. 31, 2005 ------------------------------------------------------- ASSETS Cash and Cash Equivalents $ 33,812 $ 78,775 Securities Available For Sale 444,456 464,689 FHLB Stock 98,943 97,007 Loans Held for Investment Single Family 196,605 209,480 Multifamily 2,807,503 2,633,004 Commercial Real Estate 518,106 440,088 Construction 190,302 225,650 Land 43,946 50,182 ------------- ------------- Total Real Estate Loans 3,756,462 3,558,404 Business and Other Loans 18,723 19,364 ------------- ------------- Total Loans Held for Investment 3,775,185 3,577,768 Net Deferred Fees, Premiums and Discounts (1,815) (4,798) Allowance for Loan Losses (28,731) (28,743) ------------- ------------- Total Loans Held for Investment, Net 3,744,639 3,544,227 Loans Held for Sale 304,723 612,549 ------------- ------------- Total Loans 4,049,362 4,156,776 Fixed Assets - Net 16,905 16,419 Foreclosed Assets - - Accrued Interest Receivable 18,872 19,374 Goodwill 394,080 377,726 Core Deposit Intangible 5,576 5,739 Bank-Owned Life Insurance 47,525 47,081 Affordable Housing Investments 34,877 35,798 Other Assets 35,593 33,961 ------------------------------------------------------- TOTAL ASSETS $ 5,180,001 $ 5,333,345 ======================================================= LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Demand Deposits - Noninterest-Bearing $ 127,300 $ 110,741 Demand Deposits - Interest-Bearing 74,941 78,611 Money Market Checking 243,337 316,639 Money Market Savings 313,158 195,875 Savings 218,573 281,766 ------------- ------------- Total Transaction Deposits 977,309 983,632 Retail Time Deposits 939,410 933,209 Broker Time Deposits 115,895 115,199 ------------- ------------- Total Time Deposits 1,055,305 1,048,408 ------------- ------------- Total Deposits 2,032,614 2,032,040 Borrowings FHLB Advances 1,521,028 2,015,338 Exchange Balances 685,551 370,202 Junior Subordinated Debentures 150,253 150,398 Other Borrowings 65,000 61,000 ------------- ------------- Total Borrowings 2,421,832 2,596,938 Other Liabilities 57,098 51,589 ------------------------------------------------------- TOTAL LIABILITIES 4,511,544 4,680,567 STOCKHOLDERS' EQUITY 668,457 652,778 ------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,180,001 $ 5,333,345 ======================================================= COMMERCIAL CAPITAL BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands) Three Months Ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2006 2005 2005 2005 2005 ---------------------------------------------------------------------- Interest Income Loans $70,843 $63,579 $60,148 $58,540 $55,905 Securities 4,265 4,431 4,698 4,990 5,219 FHLB Stock 1,070 1,003 935 1,086 1,034 Fed Funds and Other 72 75 83 62 83 --------------------------------------------- Total Interest Income 76,250 69,088 65,864 64,678 62,241 Interest Expense Deposits 18,676 15,175 12,852 10,861 9,874 FHLB Advances 14,553 11,656 10,139 10,923 11,145 Exchange Balances 1,396 1,527 1,552 1,147 341 Junior Subordinated Debentures 2,744 2,644 2,481 2,307 2,043 Other Borrowings 805 683 575 515 504 --------------------------------------------- Total Interest Expense 38,174 31,685 27,599 25,753 23,907 --------------------------------------------- Net Interest Income 38,076 37,403 38,265 38,925 38,334 Recapture of Allowance for Loan Losses - - - - (8,109) --------------------------------------------- Net Interest Income after Recapture of Allowance for Loan Losses 38,076 37,403 38,265 38,925 46,443 Noninterest Income Loan Related Fees 1,156 1,311 1,380 1,519 1,058 Retail Banking Fees 566 513 558 509 531 Mortgage Banking Fees 78 131 136 108 40 1031 Exchange Fees 925 1,301 1,620 1,347 374 Gain on Sale of Loans 207 534 1,494 2,757 645 Gain on Sale of Securities - - - - - Other Income 1,859 2,276 2,246 658 1,100 --------------------------------------------- Total Noninterest Income 4,791 6,066 7,434 6,898 3,748 Noninterest Expenses Compensation and Benefits 12,247 11,092 10,116 7,628 6,860 Occupancy and Equipment 2,498 2,206 2,219 2,052 2,159 Marketing 378 311 393 619 654 Technology 843 770 746 646 612 Professional and Consulting 1,801 1,847 2,482 694 498 Insurance Premiums and Assessment Costs 634 620 602 574 568 Merger-Related 118 13 - - - (Recapture of) Provision for Reserve for Unfunded Commitments (2) (2) 56 - (1,490) Other Expenses 3,530 3,675 3,251 3,055 2,793 --------------------------------------------- Total G&A Expenses 22,047 20,532 19,865 15,268 12,654 Early Extinguishment of Debt - - - - - Amortization of Core Deposit Intangible 176 163 163 162 163 --------------------------------------------- Total Noninterest Expenses 22,223 20,695 20,028 15,430 12,817 --------------------------------------------- Income Before Taxes 20,644 22,774 25,671 30,393 37,374 Income Tax Expense 6,854 7,673 8,835 11,068 14,287 --------------------------------------------- Net Income $13,790 $15,101 $16,836 $19,325 $23,087 ============================================= COMMERCIAL CAPITAL BANCORP, INC. Five Quarter Summary of Yields Earned and Rates Paid Three Months Ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2006 2005 2005 2005 2005 --------------------------------------------- Interest-Earning Assets Loans 6.40% 6.10% 5.88% 5.61% 5.46% Securities 4.41 4.40 4.39 4.37 4.33 FHLB Stock 5.10 4.75 4.23 4.42 4.28 Cash and Cash Equivalents 4.34 3.37 3.46 2.69 2.37 --------------------------------------------- Total Yield on Interest- Earning Assets 6.21 5.93 5.70 5.46 5.31 Interest-Bearing Liabilities Transaction Accounts 2.80 2.48 2.17 1.85 1.69 Certificates of Deposits 3.97 3.45 3.03 2.62 2.24 FHLB Advances 3.75 3.19 2.74 2.51 2.33 Exchange Balances 1.00 0.86 0.88 0.85 0.76 Junior Subordinated Debentures 7.42 6.99 6.55 6.15 5.71 Other Borrowings 4.52 4.06 3.52 2.99 2.51 --------------------------------------------- Cost on Interest-Bearing Liabilities 3.40 2.87 2.54 2.34 2.21 Cost of Funds 3.27 2.78 2.46 2.27 2.16 Interest Rate Spread 2.81 3.06 3.16 3.12 3.10 Net Interest Margin 3.10 3.21 3.31 3.28 3.27 COMMERCIAL CAPITAL BANCORP, INC. Average Balances, Net Interest Income, Yields Earned and Rates Paid (Dollars in Thousands) Three Months Ended -------------------------------------- Mar. 31, 2006 -------------------------------------- Average Interest Average Balance Yield/Cost -------------------------------------- Interest-Earning Assets: Total Loans(1) $ 4,430,455 $ 70,843 6.40% Securities(2) 387,237 4,265 4.41 FHLB Stock 85,155 1,070 5.10 Cash and Cash Equivalents(3) 6,731 72 4.34 ------------------------- Total Interest-Earning Assets 4,909,578 76,250 6.21 Noninterest-Earning Assets 604,523 ------------ Total Assets $ 5,514,101 ============ Interest-Bearing Liabilities: Deposits: Transaction Accounts(4) $ 970,390 6,707 2.80 Certificates of Deposits 1,223,722 11,969 3.97 ------------------------- Total Deposits 2,194,112 18,676 3.45 FHLB Advances 1,575,201 14,553 3.75 Exchange Balances 566,909 1,396 1.00 Junior Subordinated Debentures 149,912 2,744 7.42 Other Borrowings (5) 72,206 805 4.52 ------------------------- Total Interest-Bearing Liabilities 4,558,340 38,174 3.40 ------------ Noninterest-Bearing Deposits 168,957 Other Noninterest-Bearing Liabilities 60,958 ------------ Total Liabilities 4,788,255 Stockholders' Equity 725,846 ------------ Total Liabilities and Stockholders' Equity $ 5,514,101 ============ Net Interest-Earning Assets $ 351,238 ============ Net Interest Income/Interest Rate Spread $ 38,076 2.81% ========================= Net Interest Margin 3.10% ============ Three Months Ended -------------------------------------- Mar. 31, 2005 -------------------------------------- Average Interest Average Balance Yield/Cost -------------------------------------- Interest-Earning Assets: Total Loans(1) $ 4,095,700 $ 55,905 5.46% Securities(2) 481,842 5,219 4.33 FHLB Stock 96,676 1,034 4.28 Cash and Cash Equivalents(3) 14,022 83 2.37 ------------------------- Total Interest-Earning Assets 4,688,240 62,241 5.31 Noninterest-Earning Assets 494,283 ------------ Total Assets $ 5,182,523 ============ Interest-Bearing Liabilities: Deposits: Transaction Accounts(4) $ 1,003,642 4,190 1.69 Certificates of Deposits 1,029,099 5,684 2.24 ------------------------- Total Deposits 2,032,741 9,874 1.97 FHLB Advances 1,939,052 11,145 2.33 Exchange Balances 183,108 341 0.76 Junior Subordinated Debentures 144,995 2,043 5.71 Other Borrowings (5) 81,540 504 2.51 ------------------------- Total Interest-Bearing Liabilities 4,381,436 23,907 2.21 ------------ Noninterest-Bearing Deposits 109,306 Other Noninterest-Bearing Liabilities 51,106 ------------ Total Liabilities 4,541,848 Stockholders' Equity 640,675 ------------ Total Liabilities and Stockholders' Equity $ 5,182,523 ============ Net Interest-Earning Assets $ 306,804 ============ Net Interest Income/Interest Rate Spread $ 38,334 3.10% ========================= Net Interest Margin 3.27% ============ (1) The average balance of loans receivable includes loans held for sale and is presented without reduction for the allowance for loan losses. (2) Consists of mortgage-backed securities and U.S. government securities which are classified as available-for-sale, excluding the unrealized gains or losses on these securities. (3) Consists of cash in interest-earning accounts and federal funds sold. (4) Consists of savings, money market accounts and other interest- bearing deposits. (5) Consists of federal funds purchased and other short-term borrowings. COMMERCIAL CAPITAL BANCORP, INC. UNAUDITED PERFORMANCE RATIOS AND OTHER DATA (Dollars in Thousands, except share data) Three Months Ended ------------------------------------------ Mar. 31, 2006 Dec. 31, 2005 Sept. 30, 2005 ---------------------------------------------------------------------- Operational Ratios Earnings per Share - Basic $ 0.24 $ 0.27 $ 0.30 Earnings per Share - Diluted 0.24 0.26 0.29 Return on Average Assets 1.00% 1.15% 1.30% Return on Average Tangible Assets 1.08 1.24 1.41 Return on Average Stockholders' Equity 7.60 8.69 9.89 Return on Average Tangible Stockholders' Equity 17.50 20.59 23.93 Common Shares Outstanding at End of Period 59,655,045 56,487,280 55,640,363 Weighted Average Shares Outstanding -- Basic 57,071,133 55,578,219 55,244,376 Weighted Average Shares Outstanding -- Diluted 58,574,009 57,590,506 57,565,159 Shares Repurchased During the Period - - 72,000 Efficiency Ratio 51.43% 47.23% 43.47% G&A to Average Assets 1.60 1.56 1.53 Effective Tax Rate 33.20 33.69 34.42 Core Loan Fundings $ 492,449 $ 684,656 $ 570,196 Total Loan Fundings 510,189 716,039 609,894 Multifamily Fundings as a % of Total Fundings 45% 47% 49% Adjustable Rate Core Loan Fundings $ 448,274 $ 647,593 $ 557,175 12MAT Core Loan Fundings 203,049 372,322 349,711 Fixed Rate Core Loan Fundings 44,175 37,063 13,021 Loans Sold 19,773 45,794 160,507 Balance Sheet Ratios & Data Tangible Assets 5,315,059 5,061,134 4,836,165 Tangible Equity 325,821 295,702 281,232 Equity to Assets at End of Period 13.14% 12.78% 13.00% Tangible Equity to Assets at End of Period 5.67 5.41 5.37 Tangible Equity to Tangible Assets at End of Period 6.13 5.84 5.82 Nonperforming Assets $ 8,012 $ 8,581 $ 8,935 Nonperforming Assets to Total Assets 0.14% 0.16% 0.17% Allowance for Loan Losses to Loans Held for Investment at End of Period 0.65 0.66 0.73 Allowance for Loan Losses to Nonaccrual Loans 374 335 321 Net Charge-Offs (Recoveries) $ (8) $ 18 $ 8 Per Share Data Book value Per Share 12.66 12.36 12.23 Tangible Book Value per Share 5.46 5.23 5.05 Three Months Ended --------------------------- June 30, 2005 Mar. 31, 2005 ------------------------------------------------------- Operational Ratios Earnings per Share - Basic $ 0.35 $ 0.42 Earnings per Share - Diluted 0.34 0.40 Return on Average Assets 1.47% 1.78% Return on Average Tangible Assets 1.59 1.92 Return on Average Stockholders' Equity 11.62 14.41 Return on Average Tangible Stockholders' Equity 28.11 34.49 Common Shares Outstanding at End of Period 55,388,061 55,416,348 Weighted Average Shares Outstanding -- Basic 55,186,788 54,821,891 Weighted Average Shares Outstanding -- Diluted 57,522,870 57,277,806 Shares Repurchased During the Period 260,000 704,400 Efficiency Ratio 33.32% 30.07% G&A to Average Assets 1.16 0.98 Effective Tax Rate 36.42 38.23 Core Loan Fundings $ 599,303 $ 595,129 Total Loan Fundings 624,715 607,824 Multifamily Fundings as a % of Total Fundings 51% 56% Adjustable Rate Core Loan Fundings $ 578,354 $ 592,818 12MAT Core Loan Fundings 304,268 312,747 Fixed Rate Core Loan Fundings 20,949 2,311 Loans Sold 386,144 155,843 Balance Sheet Ratios & Data Tangible Assets 4,780,345 4,949,880 Tangible Equity 268,801 269,313 Equity to Assets at End of Period 12.90% 12.24% Tangible Equity to Assets at End of Period 5.19 5.05 Tangible Equity to Tangible Assets at End of Period 5.62 5.44 Nonperforming Assets $ 12,098 $ 6,475 Nonperforming Assets to Total Assets 0.23% 0.12% Allowance for Loan Losses to Loans Held for Investment at End of Period 0.76 0.80 Allowance for Loan Losses to Nonaccrual Loans 237 444 Net Charge-Offs (Recoveries) $ 12 $ (17) Per Share Data Book value Per Share 12.07 11.78 Tangible Book Value per Share 4.85 4.86 COMMERCIAL CAPITAL BANCORP, INC. LOANS FUNDED BY PRODUCT TYPE (Dollars in Thousands) Three Months Ended ------------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2006 2005 2005 2005 2005 ------------------------------------------------- Real Estate Originations Multifamily $228,932 $253,989 $297,477 $290,604 $338,313 Commercial Real Estate 96,065 80,664 54,277 38,371 45,435 ------------------------------------------------- Total Income Property 324,997 334,653 351,754 328,975 383,748 Single Family Residential 55,852 81,884 96,644 122,669 146,539 Construction & Land 104,164 150,669 103,347 43,270 47,908 ------------------------------------------------- Total Real Estate Loan Originations 485,013 567,206 551,745 494,914 578,195 ------------------------------------------------- Real Estate Loans Purchased Multifamily 965 80,201 1,136 28,965 - Commercial Real Estate 2,133 23,592 - 71,124 - ------------------------------------------------- Total Income Property 3,098 103,793 1,136 100,089 - Construction & Land 3,081 10,482 8,815 - 10,685 ------------------------------------------------- Total Real Estate Loans Purchased 6,179 114,275 9,951 100,089 10,685 ------------------------------------------------- Total Real Estate Fundings 491,192 681,481 561,696 595,003 588,880 ------------------------------------------------- Bank Business and Other Originations 1,257 3,175 8,500 4,300 6,249 ------------------------------------------------- Total Core Loan Fundings 492,449 684,656 570,196 599,303 595,129 Broker/Conduit Originations 17,740 31,383 39,698 25,412 12,695 ------------------------------------------------- Total Loan Fundings $510,189 $716,039 $609,894 $624,715 $607,824 ================================================= COMMERCIAL CAPITAL BANCORP, INC. LOAN FUNDINGS by INTEREST TYPE Three Months Ended March 31, 2006 (Dollars in Thousands) Fixed 12MAT LIBOR CMT --------------------------------------- Real Estate Originations Multifamily $30,412 $128,084 $10,245 $ - Commercial Real Estate 9,986 29,327 828 54,714 --------------------------------------- Total Income Property 40,398 157,411 11,073 54,714 Single Family Residential 132 37,593 - 16,699 Construction & Land 3,623 8,045 42,815 - --------------------------------------- Total Real Estate Loan Originations 44,153 203,049 53,888 71,413 Real Estate Loans Purchased Multifamily - - - - Commercial Real Estate - - - - --------------------------------------- Total Income Property - - - - Construction & Land - - - - --------------------------------------- Total Real Estate Loans Purchased - - - - --------------------------------------- Total Real Estate Fundings 44,153 203,049 53,888 71,413 Bank Business and Other Originations 22 - - - --------------------------------------- Total Core Loan Fundings $44,175 $203,049 $53,888 $71,413 Broker/Conduit Originations Total Loan Fundings COFI Prime Total ----------------------------- Real Estate Originations Multifamily $60,191 $- $228,932 Commercial Real Estate - 1,210 96,065 ----------------------------- Total Income Property 60,191 1,210 324,997 Single Family Residential 1,005 423 55,852 Construction & Land - 49,681 104,164 ----------------------------- Total Real Estate Loan Originations 61,196 51,314 485,013 Real Estate Loans Purchased Multifamily - 965 965 Commercial Real Estate - 2,133 2,133 ----------------------------- Total Income Property - 3,098 3,098 Construction & Land - 3,081 3,081 ----------------------------- Total Real Estate Loans Purchased - 6,179 6,179 ----------------------------- Total Real Estate Fundings 61,196 57,493 491,192 Bank Business and Other Originations - 1,235 1,257 ----------------------------- Total Core Loan Fundings $61,196 $58,728 $492,449 Broker/Conduit Originations 17,740 --------- Total Loan Fundings $510,189 ========= COMMERCIAL CAPITAL BANCORP, INC. Reconciliation of Non-GAAP Financial Measures (Dollars in Thousands, except per share data) The following tables provide a reconciliation of the Company's net income and total general and administrative expenses excluding the effect of the expenses related to the Commercial Banking Division, the previously announced cost reduction program and other non-recurring legal expenses. Management believes that the performance of the Commercial Banking Division and its impact on the Company's overall financial condition and results of operations will be more evident when the Division is able to operate without limitations imposed by the litigation process. Accordingly, management believes that the exclusion of direct organization and litigation costs related to the Division will provide a more meaningful presentation of the Company's first quarter results of operations. Additionally, management believes the exclusion of the one-time charges related to our cost reduction program and other non-recurring charges that occurred during the quarter enhances the meaningful presentation of the Company's first quarter results. Three Months Ended Net Income Mar. 31, 2006 --------------------- Net Income - as Reported $ 13,790 Adjustments related to the Commercial Banking Division: Add: Reversal of compensation expense related to salaries and benefits 747 Add: Reversal of professional expense related to Comerica litigation 1,083 Add: Reversal of occupancy and other operating expenses 88 --------------------- Subtotal Commercial Banking Division 1,918 Add: Reversal of severance and other compensation expenses 830 Add: Reversal of other non-recurring legal expenses 119 Less: Tax effect (42%) (1,204) --------------------- Net Income - Non-GAAP $ 15,453 ===================== Total General and Administrative Expense Total General and Administrative Expense - as Reported $ 22,047 Adjustments related to the Commercial Banking Division: Less: Compensation expense related to salaries and benefits (747) Less: Professional expense related to Comerica litigation (1,083) Less: Occupancy and other operating expense (88) --------------------- Subtotal Commercial Banking Division (1,918) Less: Severance and other compensation expenses (830) Less: Other non-recurring legal expense (119) --------------------- Total General and Administrative Expense - Non- GAAP $ 19,180 ===================== Selected Financial Highlights: Three Months Three Months Ended Ended Mar. 31, 2006 Mar. 31, 2006 --------------- --------------- Non-GAAP GAAP --------------- --------------- Basic EPS $ 0.27 $ 0.24 Diluted EPS 0.26 0.24 Return on Average Assets(1) 1.12% 1.00% Return on Average Tangible Assets(1) 1.21 1.08 Return on Average Equity(1) 8.52 7.60 Return on Average Tangible Equity(1) 19.61 17.50 Efficiency Ratio 44.74 51.43 G&A to Average Assets(1) 1.39 1.60 (1) Average asset and equity balances were not adjusted for purposes of calculating these Non-GAAP financial ratios. COMMERCIAL CAPITAL BANK, FSB Selected Financial Data (Dollars in Thousands) Mar. 31, 2006 Dec. 31, 2005 ---------------------------------------------------------------------- ASSETS Cash and Cash Equivalents $ 41,297 $ 32,843 Securities Available for Sale 364,664 382,642 FHLB Stock 86,412 84,788 Loans Held For Investment Single Family 428,904 394,678 Multifamily 3,109,872 3,050,139 Commercial Real Estate 692,635 601,665 Construction 247,638 202,237 Land 94,695 74,948 --------------------------- Total Real Estate Loans 4,573,744 4,323,667 Business & Other Loans 32,655 12,283 --------------------------- Total Loans Held for Investment 4,606,399 4,335,950 Net Deferred Fees, Premiums and Discounts 6,227 4,779 Allowance for Loan Losses (29,955) (28,705) --------------------------- Total Loans Held for Investment, Net 4,582,671 4,312,024 Loans Held For Sale 35,014 22,999 --------------------------- Total Loans 4,617,685 4,335,023 Other Assets 569,230 562,060 ---------------------------------------------------------------------- TOTAL ASSETS $ 5,679,288 $ 5,397,356 ====================================================================== LIABILITIES AND STOCKHOLDER'S EQUITY Deposits Demand Deposits - Noninterest-Bearing $ 290,782 $ 178,139 Demand Deposits - Interest-Bearing 74,828 71,386 Money Market Checking 911,825 749,689 Money Market Savings 457,089 553,561 Savings 116,174 147,401 --------------------------- Total Transaction Deposits 1,850,698 1,700,176 Total Time Deposits 1,287,922 1,179,346 --------------------------- Total Deposits 3,138,620 2,879,522 Borrowings 1,652,295 1,669,806 Other Liabilities 47,445 54,239 ---------------------------------------------------------------------- TOTAL LIABILITIES 4,838,360 4,603,567 STOCKHOLDER'S EQUITY 840,928 793,789 ---------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 5,679,288 $ 5,397,356 ====================================================================== *T