CCBI Commercial Capital Bancorp

Commercial Capital Bancorp, Inc. (the "Company") (NASDAQ:CCBI), today announced net income of $13.3 million or $0.22 per diluted share for the second quarter of 2006 and net income of $27.1 million or $0.45 per diluted share for the six months ended June 30, 2006. Additionally today, the Company's Board of Directors declared a cash dividend of $0.075 per share, payable on August 29, 2006 to shareholders of record on August 15, 2006. The Company's results for the second quarter includes $1.9 million of expenses related to the Company's previously announced agreement to merge with and into Washington Mutual, Inc. ("WaMu") and $2.2 million of expenses related to the Commercial Banking Division. The comparability of the Company's 2006 results to prior periods is also affected by certain acquisitions that occurred during 2005 and 2006. The Company's 2006 second quarter results include the operations of North American Exchange Company, which was acquired in May 2005, as well as Calnet Business Bank and Lawyers Asset Management, Inc., which were both acquired in March 2006. The Company also announced today that, at the special meeting of stockholders held earlier today, the Company's shareholders approved and adopted the Agreement and Plan of Merger dated as of April 23, 2006, pursuant to which WaMu will acquire all of the outstanding shares of the Company. Of the 45,564,338 votes received in aggregate, which votes represent 75.72% of the Company's total outstanding shares eligible, 97.97% were voted in favor of the acquisition and 1.97% were voted against the acquisition. The merger transaction is expected to close late in the third quarter or early in the fourth quarter of 2006, pending regulatory approval, and satisfaction of other customary closing conditions. The Company is a diversified financial services company with $5.7 billion of total assets, at June 30, 2006. The Company provides depository and lending products and services through Commercial Capital Bank, and provides 1031 exchange services under the TIMCOR Exchange Corporation, North American Exchange Company and Lawyers Asset Management brand names. This press release includes forward-looking statements regarding the consummation of the proposed acquisition of the Company by WaMu. These statements involve certain risks and uncertainties with respect to the satisfaction of the conditions to the closing of the merger transaction and the timing of the closing if it occurs. Such risks and uncertainties include, but are not limited to the governmental approval of the merger, which may not be obtained or, if obtained, may include adverse regulatory conditions. Any forward-looking statements speak only as of the date they are made. The Company undertakes 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. -0- *T COMMERCIAL CAPITAL BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in Thousands) June 30, 2006 June 30, 2005 ---------------------------------------------------------------------- ASSETS Cash and Cash Equivalents $31,594 $33,812 Securities Available For Sale 343,123 444,456 FHLB Stock 87,473 98,943 Loans Held for Investment Single Family 427,038 196,605 Multifamily 3,098,698 2,807,503 Commercial Real Estate 723,088 518,106 Construction 254,055 190,302 Land 92,854 43,946 ---------------------------- Total Real Estate Loans 4,595,733 3,756,462 Business and Other Loans 32,494 18,723 ---------------------------- Total Loans Held for Investment 4,628,227 3,775,185 Net Deferred Fees, Premiums and Discounts 6,469 (1,815) Allowance for Loan Losses (29,953) (28,731) ---------------------------- Total Loans Held for Investment, Net 4,604,743 3,744,639 Loans Held for Sale 31,828 304,723 ---------------------------- Total Loans 4,636,571 4,049,362 Fixed Assets - Net 11,562 16,905 Foreclosed Assets - - Accrued Interest Receivable 25,069 18,872 Goodwill 420,534 394,080 Core Deposit Intangible 6,461 5,576 Bank-Owned Life Insurance 120,197 47,525 Affordable Housing Investments 31,194 34,877 Other Assets 24,914 35,593 ---------------------------------------------------------------------- TOTAL ASSETS $5,738,692 $5,180,001 ====================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Demand Deposits - Noninterest-Bearing $225,325 $127,300 Demand Deposits - Interest-Bearing 70,868 74,941 Money Market Checking 568,346 243,337 Money Market Savings 149,946 313,158 Savings 94,993 218,573 ---------------------------- Total Transaction Deposits 1,109,478 977,309 Retail Time Deposits 1,072,509 939,410 Broker Time Deposits 200,000 115,895 ---------------------------- Total Time Deposits 1,272,509 1,055,305 ---------------------------- Total Deposits 2,381,987 2,032,614 Borrowings FHLB Advances 1,719,884 1,521,028 Exchange Balances 586,576 685,551 Junior Subordinated Debentures 149,671 150,253 Other Borrowings 77,000 65,000 ---------------------------- Total Borrowings 2,533,131 2,421,832 Other Liabilities 54,950 57,098 ---------------------------------------------------------------------- TOTAL LIABILITIES 4,970,068 4,511,544 STOCKHOLDERS' EQUITY 768,624 668,457 ---------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,738,692 $5,180,001 ====================================================================== Per Share Data June 30, 2006 June 30, 2005 ---------------------------- Common shares outstanding at end of period 60,242,988 55,388,061 Book value per share $12.76 $12.07 Tangible book value per share 5.67 4.85 COMMERCIAL CAPITAL BANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands) Three Months Ended Six Months Ended ---------------------- ---------------------- June 30, June 30, June 30, June 30, 2006 2005 2006 2005 ----------------------------------------------- ---------------------- Interest Income Loans $77,429 $58,540 $148,272 $114,445 Securities 4,052 4,990 8,317 10,209 FHLB Stock 1,120 1,086 2,190 2,120 Fed Funds and Other 124 62 196 145 ---------------------- ---------------------- Total Interest Income 82,725 64,678 158,975 126,919 Interest Expense Deposits 21,176 10,861 39,852 20,735 FHLB Advances 16,210 10,923 30,763 22,067 Exchange Balances 2,713 1,147 4,109 1,487 Junior Subordinated Debentures 2,904 2,307 5,648 4,350 Other Borrowings 920 515 1,725 1,021 ---------------------- ---------------------- Total Interest Expense 43,923 25,753 82,097 49,660 ---------------------- ---------------------- Net Interest Income 38,802 38,925 76,878 77,259 Recapture of Allowances for Loan Losses - - - (8,109) ---------------------- ---------------------- Net Interest Income after Provision for Loan Losses 38,802 38,925 76,878 85,368 Noninterest Income Loan Related Fees 1,405 1,519 2,561 2,577 Retail Banking Fees 616 509 1,183 1,041 Mortgage Banking Fees 20 108 98 149 1031 Exchange Fees 1,131 1,347 2,056 1,720 Gain on Sale of Loans 88 2,757 296 3,401 Other Income 1,494 658 3,352 1,759 ---------------------- ---------------------- Total Noninterest Income 4,754 6,898 9,546 10,647 Noninterest Expenses Compensation and Benefits 11,625 7,628 23,872 14,488 Occupancy and Equipment 2,749 2,052 5,247 4,212 Marketing 406 619 784 1,273 Technology 913 646 1,756 1,258 Professional and Consulting 2,462 694 4,263 1,192 Insurance Premiums and Assessment Costs 647 574 1,282 1,142 Merger-Related 1,968 - 2,085 - Recapture of Reserve for Unfunded Commitments (46) - (47) (1,490) Other Expenses 3,783 3,055 7,313 5,848 ---------------------- ---------------------- Total G&A Expenses 24,507 15,268 46,555 27,923 Amortization of Core Deposit Intangible 215 162 390 325 ---------------------- ---------------------- Total Noninterest Expenses 24,722 15,430 46,945 28,248 ---------------------- ---------------------- Income Before Taxes 18,834 30,393 39,479 67,767 Income Tax Expense 5,542 11,068 12,396 25,356 ---------------------- ---------------------- Net Income $13,292 $19,325 $27,083 $42,411 ====================== ====================== Performance Ratios and June 30, June 30, June 30, June 30, Other Data: 2006 2005 2006 2005 ---------------------- ---------------------- Weighted average shares outstanding -- Basic 59,497,174 55,186,788 58,290,855 55,005,348 Weighted average shares outstanding -- Diluted 61,093,184 57,522,870 59,840,298 57,401,347 Earnings per share - Basic $0.22 $0.35 $0.46 $0.77 Earnings per share - Diluted 0.22 0.34 0.45 0.74 COMMERCIAL CAPITAL BANCORP, INC. Average Balances, Net Interest Income, Yields Earned and Rates Paid (Dollars in Thousands) Three Months Ended ------------------------------ June 30, 2006 ------------------------------ Average Interest Average Balance Yield/Cost ------------------------------ Interest-Earning Assets: Total Loans(1) $4,637,378 $77,429 6.68% Securities(2) 367,586 4,052 4.41 FHLB Stock 86,948 1,120 5.17 Cash and Cash Equivalents(3) 7,446 124 6.68 ------------------- Total Interest-Earning Assets 5,099,358 82,725 6.49 Noninterest-Earning Assets 642,485 ----------- Total Assets $5,741,843 =========== Interest-Bearing Liabilities: Deposits: Transaction Accounts(4) $899,682 7,228 3.22 Certificates of Deposits 1,275,671 13,948 4.39 ------------------- Total Deposits 2,175,353 21,176 3.90 FHLB Advances 1,615,944 16,210 4.02 Exchange Balances 614,946 2,713 1.77 Junior Subordinated Debentures 149,767 2,904 7.78 Other Borrowings(5) 73,107 920 5.05 ------------------- Total Interest-Bearing Liabilities 4,629,117 43,923 3.81 -------- Noninterest-Bearing Deposits 291,464 Other Noninterest-Bearing Liabilities 50,431 ----------- Total Liabilities 4,971,012 Stockholders' Equity 770,831 ----------- Total Liabilities and Stockholders' Equity $5,741,843 =========== Net Interest-Earning Assets $470,241 =========== Net Interest Income/Interest Rate Spread $38,802 2.68% =================== Net Interest Margin 3.04% =========== Three Months Ended ------------------------------ June 30, 2005 ------------------------------ Average Interest Average Balance Yield/Cost ------------------------------ Interest-Earning Assets: Total Loans(1) $4,176,721 $58,540 5.61% Securities(2) 456,677 4,990 4.37 FHLB Stock 98,289 1,086 4.42 Cash and Cash Equivalents(3) 9,233 62 2.69 ------------------- Total Interest-Earning Assets 4,740,920 64,678 5.46 Noninterest-Earning Assets 522,387 ----------- Total Assets $5,263,307 =========== Interest-Bearing Liabilities: Deposits: Transaction Accounts(4) $852,235 3,940 1.85 Certificates of Deposits 1,061,326 6,921 2.62 ------------------- Total Deposits 1,913,561 10,861 2.28 FHLB Advances 1,745,778 10,923 2.51 Exchange Balances 539,222 1,147 0.85 Junior Subordinated Debentures 150,348 2,307 6.15 Other Borrowings(5) 69,190 515 2.99 ------------------- Total Interest-Bearing Liabilities 4,418,099 25,753 2.34 -------- Noninterest-Bearing Deposits 127,561 Other Noninterest-Bearing Liabilities 52,575 ----------- Total Liabilities 4,598,235 Stockholders' Equity 665,072 ----------- Total Liabilities and Stockholders' Equity $5,263,307 =========== Net Interest-Earning Assets $322,821 =========== Net Interest Income/Interest Rate Spread $38,925 3.12% =================== Net Interest Margin 3.28% =========== ---------------------------------------------------------------------- (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 BANK, FSB UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in Thousands) June 30, 2006 June 30, 2005 ---------------------------------------------------------------------- ASSETS Cash and Cash Equivalents $31,105 $29,675 Securities Available for Sale 341,739 442,782 FHLB Stock 87,473 98,943 Loans Held For Investment Single Family 427,038 196,605 Multifamily 3,097,948 2,804,188 Commercial Real Estate 723,088 518,106 Construction 254,055 190,302 Land 92,854 43,946 ---------------------------- Total Real Estate Loans 4,594,983 3,753,147 Business & Other Loans 32,405 18,610 ---------------------------- Total Loans Held for Investment 4,627,388 3,771,757 Net Deferred Fees, Premiums and Discounts 7,463 (25) Allowance for Loan Losses (29,953) (28,731) ---------------------------- Total Loans Held for Investment, Net 4,604,898 3,743,001 Loans Held For Sale 30,873 303,754 ---------------------------- Total Loans 4,635,771 4,046,755 Other Assets 576,039 502,369 ---------------------------------------------------------------------- TOTAL ASSETS $5,672,127 $5,120,524 ====================================================================== LIABILITIES AND STOCKHOLDER'S EQUITY Deposits Demand Deposits - Noninterest-Bearing $260,422 $222,143 Demand Deposits - Interest-Bearing 70,868 74,941 Money Market Checking 858,815 600,640 Money Market Savings 413,121 532,838 Savings 95,327 218,665 ---------------------------- Total Transaction Deposits 1,698,553 1,649,227 Total Time Deposits 1,272,509 1,055,305 ---------------------------- Total Deposits 2,971,062 2,704,532 Borrowings 1,796,884 1,586,028 Other Liabilities 49,610 58,963 ---------------------------------------------------------------------- TOTAL LIABILITIES 4,817,556 4,349,523 STOCKHOLDER'S EQUITY 854,571 771,001 ---------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $5,672,127 $5,120,524 ====================================================================== *T