Capital Crossing Bank (NASDAQ:CAPX)
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Capital Crossing Bank (NASDAQ:CAPX) (the “Bank”)
reported consolidated net income of $1.2 million, or $0.19 per diluted
share, for the third quarter of 2006, compared to consolidated net
income of $3.4 million, or $0.52 per diluted share, for the same period
in 2005.
The Bank also reported consolidated net income of $8.5 million, or $1.36
per diluted share, for the nine months ended September 30, 2006,
compared to consolidated net income of $12.4 million, or $1.78 per
diluted share, for the same period in 2005.
The results for the three and nine months ended September 30, 2006 were
directly impacted by merger expenses associated with the acquisition of
the Bank by Lehman Brothers Bank, which are largely non-deductible for
tax purposes. The merger expenses, net of taxes, totaled $1.8 million,
or $0.29 per diluted share, for both the three and nine months ended
September 30, 2006. Adjusted for the merger expenses, net of taxes, the
Bank would have reported consolidated net income of $2.9 million, or
$0.48 per diluted share, for the third quarter of 2006, and consolidated
net income of $10.4 million, or $1.65 per diluted share, for the nine
months ended September 30, 2006.
Nicholas W. Lazares, the Bank’s Chairman and
Co-Chief Executive Officer, stated, “We are
pleased to report a solid quarter at Capital Crossing Bank.”
Mr. Lazares further stated, “On September 19th,
we announced that Lehman Brothers Bank would acquire us for cash
consideration of $30.00 per share or an aggregate deal value of
approximately $210 million. By combining with Lehman, we believe we can
expand our opportunities for growth and earnings through increased
access to capital which in turn will allow us to bid on a greater number
of discounted loans. Our board and senior management has spent a
considerable amount of time evaluating strategic alternatives for the
Bank, and we believe that a merger with Lehman is in the best interests
of our shareholders and the Bank given the competitive environment we
have faced in recent years. We are very excited about this business
combination and expect that the merger will allow us to grow our
business and take it to the next level.”
Mr. Lazares continued, “A significant portion
of the Bank’s revenue arises from the
recognition of “transactional”
income. In the third quarter of 2006, the Bank recognized $10.0 million
of transactional income, including $6.3 million of accelerated interest
income associated with loan and lease payoffs, $1.2 million in net gains
on sales of loans and $2.5 million in net gains on sales of other real
estate owned and assets in possession. By contrast, in the third quarter
of 2005, the Bank recognized $7.7 million of transactional income,
including $6.9 million of accelerated interest income associated with
loan and lease payoffs and $735,000 in net gains on sales of other real
estate owned and assets in possession. Total transactional income for
the nine months ended September 30, 2006 and 2005 amounted to $32.2
million and $27.5 million, respectively.”
Richard Wayne, the Bank's President and Co-Chief Executive Officer,
explained, “The volume of our loan
acquisitions varies from quarter-to-quarter depending upon market
conditions. For example, in the third quarter of 2006, we purchased
loans with outstanding principal balances of $49.0 million for a
purchase price of $42.6 million, compared to the same period in 2005,
when we purchased loans with outstanding principal balances of $31.7
million for a purchase price of $25.9 million. In the nine months ended
September 30, 2006, we purchased loans with outstanding principal
balances of $176.6 million for a purchase price of $147.4 million,
compared to the same period in 2005, when we purchased loans with
outstanding principal balances of $131.3 million for a purchase price of
$111.9 million.” Mr. Wayne continued, “During
the course of our review of available loan portfolios, we will, in some
cases, decline to bid on a portfolio after analyzing the results of our
due diligence review, or, in other instances, be outbid by other
purchasers. We simply cannot predict how often we will successfully bid
on a loan portfolio.”
Mr. Wayne further stated, “While a
substantial majority of the loan and leases we have acquired in recent
years have been performing, we have also acquired appropriately priced
non-performing loans and leases. At September 30, 2006, we held loans
and leases with net investment balances of $17.9 million which were
acquired as non-performing. Our total non-performing assets increased
$7.4 million from $42.5 million at December 31, 2005 to $49.9 million at
September 30, 2006. In the past, our pricing strategy and the level of
discount we obtain on such loans and leases has enabled us to, over
time, realize significant levels of transactional income from these
assets. ”
A net provision for loan and lease losses of $815,000 was recorded for
the nine months ended September 30, 2006 compared to a net credit for
loan and lease losses of $2.2 million for the same period in 2005.
During the nine months ended September 30, 2006, the Bank recorded an
impairment provision of $879,000 and a provision for new loans acquired
of $535,000. Similar provisions were not recorded in the same period in
2005. During the nine months ended September 30, 2006 and 2005, loan
payoffs generated net credits for loan losses of $1.8 million and $3.2
million, respectively, the purpose of which was to reverse unused
reserves related to the paid off loans. The provision for lease losses
totaled $1.2 million and $925,000 for the nine months ended September
30, 2006 and 2005, respectively. A net provision for loan and lease
losses of $242,000 was recorded in the third quarter of 2006 compared to
a net credit for loan and lease losses of $688,000 for the same period
in 2005.
During the third quarter of 2006, the Bank's leasing subsidiary, Dolphin
Capital Corp., originated leases with an aggregate investment balance of
$20.8 million, compared to the same period in 2005 when it originated
leases with an aggregate investment balance of $15.5 million. During the
nine months ended September 30, 2006, Dolphin Capital originated leases
with an aggregate investment balance of $59.9 million compared to the
same period in 2005 when it originated leases with an aggregate
investment balance of $45.6 million. The increase is partially
attributable to the initiation of a more aggressive marketing campaign
begun earlier this year.
The Bank continued to repurchase shares of its common stock under its
common stock repurchase program during the third quarter of 2006.
However, pursuant to the terms of the merger agreement with Lehman, the
Bank is not permitted to continue to repurchase shares of its common
stock under the current repurchase program. Prior to entering into the
merger agreement, the Bank had repurchased 7,168,289 shares under its
current repurchase program and previous repurchase programs at an
average purchase price of $13.36 per share. The Bank initiated its first
repurchase program in August 2000.
The measurement of the Bank’s net income and
diluted earnings per share exclusive of the merger expenses, net of
taxes, was determined by a method other than in accordance with
accounting principals generally accepted in the United States of America
(“GAAP”). The Bank
believes that this supplemental information is essential to a proper
understanding of its operating results for the three and nine months
ended September 30, 2006 in light of the pending transaction with
Lehman. However, such disclosure should not be viewed as a substitute
for operating results determined in accordance with GAAP, nor is it
necessarily comparable to non-GAAP performance measures which may be
presented by other companies.
Investors and interested parties will have the opportunity to listen to
management’s discussion of the Bank’s
quarterly and nine month results in a conference call to be held on
Tuesday, October 24th at 9:00 a.m., Eastern Time. The conference call
will be broadcast over the investor relations page of the Bank’s
website at www.capitalcrossing.com.
For those who cannot listen to the live broadcast, an audio replay of
the call will be available on the website or via telephone at
888-203-1112, access code #5094347. A replay of the call will be
available beginning at approximately 12:00 p.m. on October 24, 2006
through midnight on October 30, 2006.
This press release contains a number of forward-looking statements
concerning the Bank’s current expectations as
to future growth and its results of operations. Any statements that are
not statements of historical fact (including statements containing the
words “believes,” “plans,”
“anticipates,” “expects,”
“estimates,” “intends,”
“may,” “projects,”
“will,” “would,”
and similar expressions) should also be considered to be forward-looking
statements. There are a number of important factors that could cause
actual results or events to differ materially from those indicated by
such forward-looking statements, including: the Bank’s
ability to consummate the transaction with Lehman, the Bank’s
ability to successfully acquire loans at the same volume and the same
yields as it has historically, changes in interest rates that adversely
affect its business, the level of transactional income realized by the
Bank as a result of loan and lease payoffs and the sale of real estate
and loans, the Bank’s ability to successfully
diversify its asset base, the level of the Bank’s
non-performing assets, the Bank’s ability to
successfully conduct its leasing business, general economic conditions
in the Bank’s markets, as well as those other
factors detailed under “Item 1A Risk Factors”
in Part II of the Bank’s Quarterly Report on
Form 10-Q for the period ended June 30, 2006, which important factors
are incorporated herein by this reference. The Bank disclaims any
intention or obligation to update any forward-looking statements as a
result of developments occurring after the date of this press release.
Capital Crossing Bank is a Massachusetts-chartered, FDIC-insured trust
company with $1.1 billion in assets as of September 30, 2006. The Bank
operates as a commercial bank, providing financial products and services
to customers through its executive and main offices in Boston, its
website at www.capitalcrossing.com,
and through its leasing subsidiary Dolphin Capital Corp. located in
Moberly, Missouri. The Bank is a value oriented investor in whole loans
and loan portfolios generally secured by commercial, multi-family and
one-to-four family residential real estate and other business assets.
Capital Crossing Bank and Subsidiaries
Consolidated Financial Highlights
(Unaudited)
September 30,
December 31,
2006
2005
(dollars in thousands, except per share data)
Total assets
$
1,070,645
$
1,106,158
Loans and leases:
1,010,562
1,004,120
Non-accretable discount
(61,895)
(53,407)
Accretable discount
(78,874)
(84,894)
Allowance for loan and lease losses
(13,402)
(15,585)
Net deferred loan and lease income
(21,790)
(18,396)
Loans and leases, net
834,601
831,838
Short-term investments
67,600
120,807
Securities available for sale
98,914
84,645
Deposits
776,690
723,388
Borrowed funds
126,155
218,849
REIT preferred stock
64,758
64,758
Stockholders' equity
79,260
76,499
Non-performing assets:
Other real estate owned, net
14,834
14,003
Other assets in possession, net
407
506
Non-performing loans and leases:
Loans and leases acquired as non-performing
17,910
14,078
Loans and leases that became non-performing subsequent to acquisition
16,702
13,880
Total non-performing assets, net
49,853
42,467
Total non-performing assets, net as a percent to total assets
4.66%
3.84%
Allowance for loan and lease losses as a percent of loans and
leases, net of
discount and deferred income
1.58
1.84
Allowance for loan and lease losses as a percent of net
non-performing
loans and leases
38.72
55.74
Book value per common share
$
15.68
$
14.52
Tangible book value per common share
14.81
13.69
Shares outstanding, net
5,055,578
5,269,184
Capital Crossing Bank and Subsidiaries
Consolidated Operating Results and Related Financial Data
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
(in thousands, except per share data)
Interest income - regularly scheduled
$
19,428
$
18,648
$
57,079
$
55,125
Interest income - accelerated
6,256
6,921
15,236
19,031
Total interest income
25,684
25,569
72,315
74,156
Interest expense
(11,414)
(9,555)
(31,612)
(26,665)
Net interest income
14,270
16,014
40,703
47,491
(Provision) credit for loan and lease losses
(242)
688
(815)
2,238
Net interest income, after (provision) credit for loan and lease
losses
14,028
16,702
39,888
49,729
Gain on sales of loans, net
1,246
-
10,812
-
Other income
438
394
1,318
1,217
Operating expenses:
Merger expenses
(1,938)
-
(2,023)
-
Other real estate owned and assets in possession income, net
1,915
481
4,586
7,824
Other operating expenses
(10,517)
(9,631)
(32,326)
(31,252)
Total operating expenses
(10,540)
(9,150)
(29,763)
(23,428)
Income before income taxes, minority interest and dividends on REIT
preferred stock
5,172
7,946
22,255
27,518
Provision for income taxes
(3,036)
(3,497)
(10,748)
(12,219)
Minority interest, net of taxes
(54)
(99)
(200)
(154)
Dividends on REIT preferred stock, net of taxes
(927)
(927)
(2,781)
(2,781)
Net income
$
1,155
$
3,423
$
8,526
$
12,364
Weighted average shares outstanding:
Basic
5,061
5,458
5,160
5,760
Diluted
6,173
6,635
6,280
6,933
Earnings per share:
Basic
$
0.23
$
0.63
$
1.65
$
2.15
Diluted
0.19
0.52
1.36
1.78
Financial ratios (annualized):
Return on average assets
0.43%
1.32%
1.10%
1.60%
Return on average stockholders' equity
5.88%
17.10%
14.68%
19.39%
Transactional income:
Interest and fee income on loan and lease pay-offs
Non-accretable discount
$
2,119
$
1,788
$
4,078
$
7,736
Accretable discount
2,317
3,114
7,005
7,330
Other interest income
1,820
2,019
4,153
3,965
Total interest and fee income on loan and lease pay-offs
6,256
6,921
15,236
19,031
Gain on sale of loans, net
1,246
-
10,812
-
Gain on sale of other real estate owned and assets in possession,
net
2,463
735
6,119
8,468
Total transactional income
$
9,965
$
7,656
$
32,167
$
27,499
Capital Crossing Bank and Subsidiaries
Interest Rate and Loan and Lease Volume Analysis
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
(dollars in thousands)
Weighted average yield/rate (annualized):
Short-term investments
5.26%
3.45%
4.81%
2.97%
Securities available for sale
4.87
4.62
4.78
4.68
Loan and lease portfolio, net
11.51
11.71
11.10
11.35
Total interest-earning assets
10.45%
10.34%
10.07%
10.16%
Interest bearing liabilities
5.12%
4.40%
4.88%
4.14%
Interest rate spread
5.33%
5.94%
5.19%
6.02%
Net interest margin
5.80%
6.48%
5.67%
6.51%
Loan and lease volume:
Loan originations
$
2,950
$
-
$
5,789
$
508
Loan acquisitions:
Loan balances
48,983
31,723
176,644
131,348
Discount, net
(6,405)
(5,796)
(29,267)
(19,477)
Loan acquisitions, net
42,578
25,927
147,377
111,871
Total loan volume
45,528
25,927
153,166
112,379
Lease originations
20,751
15,530
59,895
45,600
Total lease volume
20,751
15,530
59,895
45,600
Total loan and lease volume, net
$
66,279
$
41,457
$
213,061
$
157,979
Capital Crossing Bank (NASDAQ:CAPX) (the "Bank") reported
consolidated net income of $1.2 million, or $0.19 per diluted share,
for the third quarter of 2006, compared to consolidated net income of
$3.4 million, or $0.52 per diluted share, for the same period in 2005.
The Bank also reported consolidated net income of $8.5 million, or
$1.36 per diluted share, for the nine months ended September 30, 2006,
compared to consolidated net income of $12.4 million, or $1.78 per
diluted share, for the same period in 2005.
The results for the three and nine months ended September 30, 2006
were directly impacted by merger expenses associated with the
acquisition of the Bank by Lehman Brothers Bank, which are largely
non-deductible for tax purposes. The merger expenses, net of taxes,
totaled $1.8 million, or $0.29 per diluted share, for both the three
and nine months ended September 30, 2006. Adjusted for the merger
expenses, net of taxes, the Bank would have reported consolidated net
income of $2.9 million, or $0.48 per diluted share, for the third
quarter of 2006, and consolidated net income of $10.4 million, or
$1.65 per diluted share, for the nine months ended September 30, 2006.
Nicholas W. Lazares, the Bank's Chairman and Co-Chief Executive
Officer, stated, "We are pleased to report a solid quarter at Capital
Crossing Bank." Mr. Lazares further stated, "On September 19th, we
announced that Lehman Brothers Bank would acquire us for cash
consideration of $30.00 per share or an aggregate deal value of
approximately $210 million. By combining with Lehman, we believe we
can expand our opportunities for growth and earnings through increased
access to capital which in turn will allow us to bid on a greater
number of discounted loans. Our board and senior management has spent
a considerable amount of time evaluating strategic alternatives for
the Bank, and we believe that a merger with Lehman is in the best
interests of our shareholders and the Bank given the competitive
environment we have faced in recent years. We are very excited about
this business combination and expect that the merger will allow us to
grow our business and take it to the next level."
Mr. Lazares continued, "A significant portion of the Bank's
revenue arises from the recognition of "transactional" income. In the
third quarter of 2006, the Bank recognized $10.0 million of
transactional income, including $6.3 million of accelerated interest
income associated with loan and lease payoffs, $1.2 million in net
gains on sales of loans and $2.5 million in net gains on sales of
other real estate owned and assets in possession. By contrast, in the
third quarter of 2005, the Bank recognized $7.7 million of
transactional income, including $6.9 million of accelerated interest
income associated with loan and lease payoffs and $735,000 in net
gains on sales of other real estate owned and assets in possession.
Total transactional income for the nine months ended September 30,
2006 and 2005 amounted to $32.2 million and $27.5 million,
respectively."
Richard Wayne, the Bank's President and Co-Chief Executive
Officer, explained, "The volume of our loan acquisitions varies from
quarter-to-quarter depending upon market conditions. For example, in
the third quarter of 2006, we purchased loans with outstanding
principal balances of $49.0 million for a purchase price of $42.6
million, compared to the same period in 2005, when we purchased loans
with outstanding principal balances of $31.7 million for a purchase
price of $25.9 million. In the nine months ended September 30, 2006,
we purchased loans with outstanding principal balances of $176.6
million for a purchase price of $147.4 million, compared to the same
period in 2005, when we purchased loans with outstanding principal
balances of $131.3 million for a purchase price of $111.9 million."
Mr. Wayne continued, "During the course of our review of available
loan portfolios, we will, in some cases, decline to bid on a portfolio
after analyzing the results of our due diligence review, or, in other
instances, be outbid by other purchasers. We simply cannot predict how
often we will successfully bid on a loan portfolio."
Mr. Wayne further stated, "While a substantial majority of the
loan and leases we have acquired in recent years have been performing,
we have also acquired appropriately priced non-performing loans and
leases. At September 30, 2006, we held loans and leases with net
investment balances of $17.9 million which were acquired as
non-performing. Our total non-performing assets increased $7.4 million
from $42.5 million at December 31, 2005 to $49.9 million at September
30, 2006. In the past, our pricing strategy and the level of discount
we obtain on such loans and leases has enabled us to, over time,
realize significant levels of transactional income from these assets.
"
A net provision for loan and lease losses of $815,000 was recorded
for the nine months ended September 30, 2006 compared to a net credit
for loan and lease losses of $2.2 million for the same period in 2005.
During the nine months ended September 30, 2006, the Bank recorded an
impairment provision of $879,000 and a provision for new loans
acquired of $535,000. Similar provisions were not recorded in the same
period in 2005. During the nine months ended September 30, 2006 and
2005, loan payoffs generated net credits for loan losses of $1.8
million and $3.2 million, respectively, the purpose of which was to
reverse unused reserves related to the paid off loans. The provision
for lease losses totaled $1.2 million and $925,000 for the nine months
ended September 30, 2006 and 2005, respectively. A net provision for
loan and lease losses of $242,000 was recorded in the third quarter of
2006 compared to a net credit for loan and lease losses of $688,000
for the same period in 2005.
During the third quarter of 2006, the Bank's leasing subsidiary,
Dolphin Capital Corp., originated leases with an aggregate investment
balance of $20.8 million, compared to the same period in 2005 when it
originated leases with an aggregate investment balance of $15.5
million. During the nine months ended September 30, 2006, Dolphin
Capital originated leases with an aggregate investment balance of
$59.9 million compared to the same period in 2005 when it originated
leases with an aggregate investment balance of $45.6 million. The
increase is partially attributable to the initiation of a more
aggressive marketing campaign begun earlier this year.
The Bank continued to repurchase shares of its common stock under
its common stock repurchase program during the third quarter of 2006.
However, pursuant to the terms of the merger agreement with Lehman,
the Bank is not permitted to continue to repurchase shares of its
common stock under the current repurchase program. Prior to entering
into the merger agreement, the Bank had repurchased 7,168,289 shares
under its current repurchase program and previous repurchase programs
at an average purchase price of $13.36 per share. The Bank initiated
its first repurchase program in August 2000.
The measurement of the Bank's net income and diluted earnings per
share exclusive of the merger expenses, net of taxes, was determined
by a method other than in accordance with accounting principals
generally accepted in the United States of America ("GAAP"). The Bank
believes that this supplemental information is essential to a proper
understanding of its operating results for the three and nine months
ended September 30, 2006 in light of the pending transaction with
Lehman. However, such disclosure should not be viewed as a substitute
for operating results determined in accordance with GAAP, nor is it
necessarily comparable to non-GAAP performance measures which may be
presented by other companies.
Investors and interested parties will have the opportunity to
listen to management's discussion of the Bank's quarterly and nine
month results in a conference call to be held on Tuesday, October 24th
at 9:00 a.m., Eastern Time. The conference call will be broadcast over
the investor relations page of the Bank's website at
www.capitalcrossing.com. For those who cannot listen to the live
broadcast, an audio replay of the call will be available on the
website or via telephone at 888-203-1112, access code #5094347. A
replay of the call will be available beginning at approximately 12:00
p.m. on October 24, 2006 through midnight on October 30, 2006.
This press release contains a number of forward-looking statements
concerning the Bank's current expectations as to future growth and its
results of operations. Any statements that are not statements of
historical fact (including statements containing the words "believes,"
"plans," "anticipates," "expects," "estimates," "intends," "may,"
"projects," "will," "would," and similar expressions) should also be
considered to be forward-looking statements. There are a number of
important factors that could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the Bank's ability to consummate the transaction with
Lehman, the Bank's ability to successfully acquire loans at the same
volume and the same yields as it has historically, changes in interest
rates that adversely affect its business, the level of transactional
income realized by the Bank as a result of loan and lease payoffs and
the sale of real estate and loans, the Bank's ability to successfully
diversify its asset base, the level of the Bank's non-performing
assets, the Bank's ability to successfully conduct its leasing
business, general economic conditions in the Bank's markets, as well
as those other factors detailed under "Item 1A Risk Factors" in Part
II of the Bank's Quarterly Report on Form 10-Q for the period ended
June 30, 2006, which important factors are incorporated herein by this
reference. The Bank disclaims any intention or obligation to update
any forward-looking statements as a result of developments occurring
after the date of this press release.
Capital Crossing Bank is a Massachusetts-chartered, FDIC-insured
trust company with $1.1 billion in assets as of September 30, 2006.
The Bank operates as a commercial bank, providing financial products
and services to customers through its executive and main offices in
Boston, its website at www.capitalcrossing.com, and through its
leasing subsidiary Dolphin Capital Corp. located in Moberly, Missouri.
The Bank is a value oriented investor in whole loans and loan
portfolios generally secured by commercial, multi-family and
one-to-four family residential real estate and other business assets.
-0-
*T
Capital Crossing Bank and Subsidiaries
Consolidated Financial Highlights
(Unaudited)
September 30, December 31,
2006 2005
------------- ------------
(dollars in thousands,
except per share data)
Total assets $ 1,070,645 $ 1,106,158
Loans and leases: 1,010,562 1,004,120
Non-accretable discount (61,895) (53,407)
Accretable discount (78,874) (84,894)
Allowance for loan and lease losses (13,402) (15,585)
Net deferred loan and lease income (21,790) (18,396)
------------- ------------
Loans and leases, net 834,601 831,838
------------- ------------
Short-term investments 67,600 120,807
Securities available for sale 98,914 84,645
Deposits 776,690 723,388
Borrowed funds 126,155 218,849
REIT preferred stock 64,758 64,758
Stockholders' equity 79,260 76,499
Non-performing assets:
Other real estate owned, net 14,834 14,003
Other assets in possession, net 407 506
Non-performing loans and leases:
Loans and leases acquired as non-
performing 17,910 14,078
Loans and leases that became non-
performing subsequent to
acquisition 16,702 13,880
------------- ------------
Total non-performing assets,
net 49,853 42,467
------------- ------------
Total non-performing assets, net as a
percent to total assets 4.66% 3.84%
Allowance for loan and lease losses as a
percent of loans and leases, net of
discount and deferred income 1.58 1.84
Allowance for loan and lease losses as a
percent of net non-performing
loans and leases 38.72 55.74
Book value per common share $ 15.68 $ 14.52
Tangible book value per common share 14.81 13.69
Shares outstanding, net 5,055,578 5,269,184
*T
-0-
*T
Capital Crossing Bank and Subsidiaries
Consolidated Operating Results and Related Financial Data
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
(in thousands, except per share data)
Interest income - regularly
scheduled $ 19,428 $18,648 $ 57,079 $ 55,125
Interest income - accelerated 6,256 6,921 15,236 19,031
--------- -------- --------- ---------
Total interest income 25,684 25,569 72,315 74,156
Interest expense (11,414) (9,555) (31,612) (26,665)
--------- -------- --------- ---------
Net interest income 14,270 16,014 40,703 47,491
(Provision) credit for loan and
lease losses (242) 688 (815) 2,238
--------- -------- --------- ---------
Net interest income, after
(provision) credit for loan and
lease losses 14,028 16,702 39,888 49,729
Gain on sales of loans, net 1,246 - 10,812 -
Other income 438 394 1,318 1,217
Operating expenses:
Merger expenses (1,938) - (2,023) -
Other real estate owned and
assets in possession
income, net 1,915 481 4,586 7,824
Other operating expenses (10,517) (9,631) (32,326) (31,252)
--------- -------- --------- ---------
Total operating
expenses (10,540) (9,150) (29,763) (23,428)
--------- -------- --------- ---------
Income before income taxes,
minority interest and dividends
on REIT preferred stock 5,172 7,946 22,255 27,518
Provision for income taxes (3,036) (3,497) (10,748) (12,219)
Minority interest, net of taxes (54) (99) (200) (154)
Dividends on REIT preferred
stock, net of taxes (927) (927) (2,781) (2,781)
--------- -------- --------- ---------
Net income $ 1,155 $ 3,423 $ 8,526 $ 12,364
========= ======== ========= =========
Weighted average shares
outstanding:
Basic 5,061 5,458 5,160 5,760
Diluted 6,173 6,635 6,280 6,933
Earnings per share:
Basic $ 0.23 $ 0.63 $ 1.65 $ 2.15
Diluted 0.19 0.52 1.36 1.78
Financial ratios (annualized):
Return on average assets 0.43% 1.32% 1.10% 1.60%
Return on average
stockholders' equity 5.88% 17.10% 14.68% 19.39%
Transactional income:
Interest and fee income on
loan and lease pay-offs
Non-accretable
discount $ 2,119 $ 1,788 $ 4,078 $ 7,736
Accretable discount 2,317 3,114 7,005 7,330
Other interest income 1,820 2,019 4,153 3,965
--------- -------- --------- ---------
Total interest
and fee income
on loan and
lease pay-offs 6,256 6,921 15,236 19,031
Gain on sale of loans,
net 1,246 - 10,812 -
Gain on sale of other
real estate owned and
assets in possession,
net 2,463 735 6,119 8,468
--------- -------- --------- ---------
Total
transactional
income $ 9,965 $ 7,656 $ 32,167 $ 27,499
========= ======== ========= =========
*T
-0-
*T
Capital Crossing Bank and Subsidiaries
Interest Rate and Loan and Lease Volume Analysis
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
(dollars in thousands)
Weighted average yield/rate
(annualized):
Short-term investments 5.26% 3.45% 4.81% 2.97%
Securities available for
sale 4.87 4.62 4.78 4.68
Loan and lease portfolio,
net 11.51 11.71 11.10 11.35
Total interest-
earning assets 10.45% 10.34% 10.07% 10.16%
Interest bearing
liabilities 5.12% 4.40% 4.88% 4.14%
Interest rate spread 5.33% 5.94% 5.19% 6.02%
Net interest margin 5.80% 6.48% 5.67% 6.51%
Loan and lease volume:
Loan originations $ 2,950 $ - $ 5,789 $ 508
Loan acquisitions:
Loan balances 48,983 31,723 176,644 131,348
Discount, net (6,405) (5,796) (29,267) (19,477)
--------- -------- --------- ---------
Loan
acquisitions,
net 42,578 25,927 147,377 111,871
--------- -------- --------- ---------
Total loan
volume 45,528 25,927 153,166 112,379
--------- -------- --------- ---------
Lease originations 20,751 15,530 59,895 45,600
--------- -------- --------- ---------
Total lease volume 20,751 15,530 59,895 45,600
--------- -------- --------- ---------
Total loan
and lease
volume,
net $ 66,279 $41,457 $213,061 $157,979
========= ======== ========= =========
*T