UPDATE: California BanCorp, Oakland, CA (CALB)

Terry Peterson resigns, a winner! Since my July 2014 Timyan Bank Alert review of California Bank of Commerce, a holding company was formed for the bank, the stock has performed as I'd anticipated, and the CEO in which I had so much confidence has resigned.

Updating my predictions for this bank, I'd say that within three years book value could approach $16 and earnings could be $2.00 or better making it likely the stock will trade at $30, presuming everything goes right without Peterson at the helm.

Since California BanCorp could garner $32/share in a sale today, that's what I'd consider the big win to shoot for now.

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Disclosure: As of this posting, I own shares of CALB and may subsequently either dispose of them or purchase more.

Prospective Buyers	An acquisition of California BanCorp would be accretive to book value and earnings for any of these three area banks, whose currencies are so strong they can afford to pay a significant premium. Bank of Marin, Novato, CA (BMRC) Heritage Commerce Corp, San Jose, CA (HTBK) Westamerica, San Rafael, CA (WABC)
Financial Snapshot †as of 03/31/2018	Total assets: $909M† Tangible book value per share:      $12.21† NPAs to assets: 0.4%† Price to book: 164% Market cap: $136M Dividend yield: 0% Trailing 12-month ROA: 0.7%† Trailing 12-month ROE: 7.0%†
The Crew	Steven A. Cortese, Chairman Steven E. Shelton, President and CEO Randall D. Greenfield, Executive VP and CFO
The Skinny	Terry Peterson is an all-star banker. Few, if any, bankers in the US have had more success in building banks as Peterson has had in his career so far. He has consistently attracted top banking talent to come to work with him. He grew deposits at California Bank of Commerce from $281 million to $798M, including a whopping $321M in non-interest bearing deposits. He increased the takeover value of the bank to 250% of today's book value (based on recent overtures from prospective buyers). Peterson announced his resignation on May 7th, a winner. California BancCorp's best prospect for a post-Peterson win is to sell. On their own, surviving management can get CALB to a $30 share price in three years, assuming they can maintain Peterson's achievement levels. Now that its star player is out of the lineup, I can't imagine California Bank of Commerce doing better without him than it was with him.
Sources	California Bank of Commerce website May 7, 2018 Press Release Q1 2018 Earnings Release Q4 2017 Earnings Release 2016 Annual Report SNL Financial Confidential interviews with shareholders and analysts

Exchange Bank, Santa Rosa, CA (EXSR)

A Case of a Bank and a Trust

Exchange Bank is a good buy you can trust to do good in more ways than one. I can't name a single other billion dollar bank in the country with ROA above 1% and ROE above 10% that still trades at a discount to book value. In the next three years, I expect EXSR will trade above its pre-Great Recession high of $153.72 per share, so I'm buying while the stock is still cheap.

And I feel darn good about it, because making money right along with me will be the Frank P. and Polly O'Meara Doyle Trust, which owns 51% of the bank and has been using its own dividends to fund thousands of scholarships for Santa Rosa Junior College students since 1950.

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Disclosure: As of this posting, I own shares of EXSR and may subsequently either dispose of them or purchase more.

Prospective Buyers	Exchange Bank would be an appealing addition to these three institutions operating in the neighborhood, but since I'm a stand for the bank staying independent, I'll just leave it at that. Rabobank, Netherlands (RABO, on Netherlands Exchange) Umpqua Holdings, Portland, OR (UMPQ) Westamerica Bancorp, San Rafael, CA (WABC)
Financial Snapshot †as of 03/31/2015	Total assets: $1.9B† Tangible book value per share: $96.72† NPAs to assets: 2.95%† Price to book: 86.3% Market cap: $143.1M Dividend yield: 2.6% Trailing 12-month return on assets: 1.03%† Trailing 12-month return on equity: 11.8%† TARP: $0†* *Redeemed $43M July 26, 2012
Luminaries	William R. Schrader, Chairman Gary Hartwick, President and CEO Greg Zahn, Executive VP and CFO
Gold Stars	Exchange Bank of Santa Rosa, CA has done plenty to earn the trust of its community and shareholders. In particular, it merits a nice row of Gold Stars for: Doing its Founding Father proud. I feel like Frank and Polly Doyle are the true luminaries in the Exchange Bank story. All too often, family-owned institutions, at best, peter out over the years, or more commonly, fall victim to nepotism and malaise with succeeding generations. In stark contrast, the Doyle Family legacy is a Trust that Founding Father Manville Doyle's son Frank and daughter-in-law Polly specifically designed to keep the interests of the community and shareholders first and foremost for the life of the institution. Doing measurable good in its community. Banks talk a lot about community service, but it'd be hard to find one that tops the good Exchange Bank does every year in its hometown. Since 1950, the Frank P. and Polly O'Meara Doyle Family Trust has used its honestly earned dividends to pay out over $80M in scholarships that have helped some 122,000 students attend Santa Rosa Junior College. In a town whose population doesn't appear to exceed 175,000, it's arguable this bank and Trust have been upskilling an entire workforce! Doing right by its shareholders. Exchange Bank's Managers and Directors deserve special mention here as well. They guided the bank effectively through the Great Recession, have already grown book value by 67% since EXSR's 2009 low, and appear on course to deliver even greater returns — for which those of us who were left holding worthless shares in one or more of the hundreds of banks that failed in that Recession are truly grateful.
Sources	Exchange Bank website 2014 Annual Report Article in The Press Democrat SNL Financial Confidential interviews with investors

California Bank of Commerce, Lafayette, CA (CABC)

The Case of an All Star Team in a Hot Market

How's this for a steamy bank stock pick? California Bank of Commerce may have opened its doors at the most inopportune of times in the Fall of 2007 at the onset of the Great Recession, but under the skilled leadership of founding CEO John E Rossell III it didn't even get singed. CABC's book value has grown 48% since 2010. Another four-year surge like this and it will reach $15.45. If CABC sells for twice book like the inferior Virginia Heritage (VGBK) just did, the stock could fetch a toasty $31. Tssss!

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Disclosure: As of this posting, I own shares of CABC and may subsequently either dispose of them or purchase more.

Prospective Buyers	Personally, I'd prefer to see this all star team keep stoking it up on their own, but were I one of these area banks, I'd sure be coveting CABC's deposits. Bank of Marin, Novato, CA (BMRC) Opus Bank, Irvine, CA (OPB) Westamerica, San Rafael, CA (WABC)
Financial Snapshot (as of 03/31/2014)	Total assets: $373M Tangible book value per share: $10.44 NPAs to assets: 1.22% Price to book: 104% Market cap: $46M Dividend yield: 0% Trailing 12-month return on assets: .77% Trailing 12-month return on equity: 9.6% TARP: $0M* *Redeemed $4M 9/15/2011
Luminaries	Stephen A Cortese, Chairman Terry A Peterson, President and CEO Virginia M Robbins, Executive VP and COO
Gold Stars	An all-star team! Clearly with folks like these in charge, the California Bank of Commerce has the steam it needs to power and support growth: CEO Terry Peterson founded Charter Bank in Bellevue, WA in 1998, grew it to $322M in assets and sold it nine years later for 3.2x book value Commercial Lender Rick Harbaugh brings long-standing business relationships from his 15 years experience as a mid-market lender at San Francisco's City National Bank and US Bank  Business Development Manager Colleen Atkinson managed a $250M deposit portfolio at Comerica Bank $281M in deposits! That's higher than deposits in any other bank branch in Lafayette, CA — more than the... $275M in Wells Fargo's single largest area branch $133M in Westamerica's FOUR local branches, combined $62M in Opus Bank's TWO local branches, combined In a hot market! California Bank of Commerce is geographically situated in what analysts have argued is America's hottest banking market. In Lafayette's Contra Costa County... Real estate values have rebounded 9% over the past 12 months alone The I-680 Corridor boasts more square feet of office space than the City of San Francisco Available deposits exceed $34B, not counting the $168B in neighboring San Francisco County Enviable loan growth! Contrast the trendlines of Loans Outstanding at California Bank of Commerce and Westamerica — one of our nation's best-managed and most pristine banks: Volume of Loans Outstanding *Adjusted for $1.2B acquired in County Bank FDIC Acquisition
Sources	California Bank of Commerce website FDIC Filings SNL Financial SeattlePI.com article California Bank of Commerce Newsletter Confidential interviews with shareholders