IRVINE, Calif.--(BUSINESS WIRE)--Orange County Business Bank (the “Bank”) (OTCBB: OCBB) announced financial results for the twelve months ended December 31, 2013.
The Bank finished 2013 with net income of $1.1 million up from $792 thousand over the same period in 2012.
For 2013, the Bank’s core operating income improved by $1.9 million as a result of increased loan volume and increased low-cost deposits (these two areas combined for an improvement of $1.5 million) and decreased overhead (which contributed an improvement to core operating income of $400 thousand). The components of the Bank’s core operating income are net interest income plus non-interest income less non-interest expense. The Bank recognized $5.6 million in net interest income for 2013 compared to $4.1 million from a year earlier, an increase of more than 37%. The Bank’s solid asset quality coupled with large recoveries on prior charged-off loans resulted in a reversal of $959 thousand from the allowance for loan and lease losses for 2013. Excluding extraordinary items, non-interest income totaled $519 thousand for the year ended December 31, 2013 compared to $527 thousand for 2012. Non-interest expenses were $6.1 million for the year ended December 31, 2013 compared to $6.5 million in 2012, an improvement of 6%.
The Bank’s assets totaled $186.4 million, an increase of approximately 10% over the previous year at $170.2 million. Total deposits, primarily in checking and money market accounts, increased from $120.9 at December 31, 2012 to $129.9 million as of December 31, 2013. At December 31, 2013, gross loans totaled $109.8 million, up from $94.1 million at December 31, 2012, a 16% net increase. During 2013, the Bank generated more than $40 million in new loan production that was partially offset by payoffs of non-performing and underperforming credits (totaling $7 million) as well as payoffs of loans in the ordinary course of business. As an informational note, shareholders’ equity decreased to reflect a mark-to-market adjustment on the securities portfolio, which is not an actual monetary loss as the Bank expects to hold the securities to maturity and will therefore receive the full value of those securities.
The Bank’s capital ratios continue to demonstrate the financial strength of the Bank by exceeding all regulatory guidelines for “well capitalized” institutions at December 31, 2013.
Orange County Business Bank offers complete relationship banking services for locally owned and operated businesses, professional practices and commercial/industrial companies of Orange County and adjacent markets. The Bank’s services include a broad selection of depository as well as business loans and commercial real estate financing products uniquely designed for each client. The Bank maintains its administrative offices at 17901 Von Karman, Suite 100, Irvine, California 92614. The Bank’s website is www.ocbusinessbank.com.
This press release includes ‘forward-looking’ statements within the meaning of Section 27A of the Securities Act. All of the statements contained in this press release, other than statements of historical fact, should be considered forward-looking statements, including but not limited to, any statements which may concern (i) the Bank’s strategies, objectives and plans for expansion of its operations, product and services, and growth of its portfolio of loans, deposits and investments, (ii) the Bank’s beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank, (iii) the Bank’s beliefs as to the adequacy of the allowance for loan losses, and (iv) the Bank’s beliefs and expectations of the future operating results. Although the Bank believes the expectation reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All subsequent written and oral forward-looking statements by or attributable to the Bank or persons acting on its behalf are expressly qualified in their entirety by this qualification. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results. The Bank undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
|As of and for the|
|Twelve Months Ended December 31,|
|Net interest income||5,666,000||4,121,000|
|Provision for loan and lease losses||(959,000||)||(1,630,000||)|
|Net interest income after provision|
|for loan and lease losses||6,625,000||5,751,000|
|Income before provision for income taxes||1,069,000||792,000|
|Provision for income taxes||4,000||-|
|Per Share Data and Other Ratios|
|Net Earnings – Basic||$||0.23||$||0.17|
|Return on Average Assets||0.49||%||0.42||%|
|Return on Average Equity||2.12||%||2.03||%|
|Net Interest Margin||3.16||%||2.52||%|
|December 31, 2013||December 31, 2012|
|Balance Sheet Data and Related Ratios|
|Allowance for Loan Losses (ALLL)||1,698,000||1,935,000|
|Total Shareholders’ Equity||37,077,000||38,950,000|
|ALLL as a Percentage of Total Loans||1.55||%||2.06||%|
|Actual Number of Shares Outstanding||4,724,576||4,724,576|