| IPO Company Profile |
| SEC Filings | Peer IPO Companies |
| Commerce Security Bancorp, Inc. |
| 24012 Calle De La Plata, Laguna Hills, CA 92653 * (949) 699-4344 |
| The company is a bank holding company for the Eldorado Bank, the bank offers a broad range of commercial banking products and services to business and retail customers from 17 full service branches in Orange, San Diego and Sacramento areas of CA. |
| Manager | Tier | Phone |
| Keefe, Bruyette & Woods, Inc. | Lead Manager | (212) 323-8470 |
| Lehman Brothers Incorporated | Co-manager | (212) 526-8100 |
| NASNTL: | ELBI | Financial: | SIC 6021 | |
| Type of Shares: | Common Shares | Filing Date: | 8/14/98 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $40,000,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Post-IPO Shares: | ||
| Employees: | 430 |
| Issuer's Law Firm: | Nutter, McClennen & Fish |
| Bank's Law Firm: | Skadden, Arps, Slate, Meagher & Flom |
| Auditor: | Pricewaterhouse Coopers LLC |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/97 | 6/30/98 | 6/30/97 | 6/30/98 | ||
| Revenue: | $47.78 | $33.56 | $18.27 | Assets: | $1,023.31 |
| Net Income: | $2.26 | $3.42 | $0.56 | Curr Assets: | |
| EPS: | $0.31 | $0.30 | $0.09 | Liabilities: | $925.62 |
| Prior EPS: | $2.33 | Curr Liab: | $876.60 | ||
| Cash Flow/Oper: | -$11.58 | -$81.64 | $3.90 | Equity: | $97.69 |
| Cash Flow/Fin: | $108.05 | $112.02 | $134.26 | Cash: | $160.25 |
| Cash Flow/Inv: | -$21.66 | $8.84 | |||
| Competition |
| There is intense competition in California and elsewhere in the United States in attracting and retaining deposit accounts and in making loans to small businesses and other borrowers. The Company experiences competition for deposit accounts primarily from other commercial banks, savings institutions, credit unions, insurance companies and money market and other mutual funds. With respect to the origination of loans and leases, the Company's primary competitors include other commercial banks, mortgage companies, commercial finance companies and savings institutions. The recent entrance by out-of-state financial institutions into the California market, both by merger and otherwise, seeking opportunities for asset generation has also enhanced competition. Many of the Company's competitors have greater financial strength, marketing capability and name recognition than the Company, and operate on a statewide or nationwide basis that may give them opportunities to realize greater efficiencies and economies of scale than the Company. In addition, recent developments in technology and mass marketing have permitted larger institutions to market loans more aggressively to small business borrowers. Also, recent federal legislation has eased membership limits on credit unions, which previously have been permitted to serve only members that share a single, common bond. The Company expects that such legislation will increase the ability of credit unions to compete with community banks, such as the Bank, for both deposits and loans. There can be no assurance that the Company will be able to compete effectively against such competition. |
| Business Plan |
| The key elements of the Company's strategic plan have been and continue to be the establishment and enhancement of an attractive commercial banking franchise through the acquisition of community banks primarily, but not exclusively, in and around its Southern California base, improving core profitability and maintaining a strong balance sheet. Since 1995, the Company has acquired three community banks with total assets of $779 million. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to redeem outstanding shares of Series B Preferred Stock, to repay indebtedness, for general corporate purposes including investment in the Bank. |