IRVINE, Calif.--(BUSINESS WIRE)--Orange County Business Bank (the “Bank”) (OTCBB:OCBB) announced financial results for the twelve months ended December 31, 2014.
The Bank’s net income for 2014 was $7.2 million compared to $1.1 million over the same period in 2013. This was the third consecutive year of improved earnings, hitting a return on average assets of 3.66% and a return on average equity of 18.45%.
With a $2.1 million recovery, increasing operating income and the recovery of the Bank’s deferred tax asset of $4.9 million, shareholder equity increased more than 25% in 2014, ending the year at December 31 with $46.6 million compared to $37.0 million at December 31, 2013. This was an increase in shareholder equity of over $9.5 million.
The recovery of the Bank’s deferred tax asset, which was required to be charged off in 2010, is generally reflected in the $4.6 million reversed income tax expense for 2014. A number of other previous charge-offs were required by bank regulation but not necessarily reflective of the actual ability of the underlying borrowers to fulfill their obligations. The Bank has and will continue to vigorously pursue recoveries of remaining charge-offs while it continues to also pursue its growth strategies. 2014 was the third consecutive year of net recoveries on previously charged-off loans.
The Bank’s total assets increased approximately 9.50% at December 31, 2014 to $206 million over the previous year at $186.4 million. At December 31, 2014, the Bank’s gross loans had a net increase of more than 15% to total $127.4 million, up from $109.8 million at December 31, 2013. Gross loan production increased in 2014 to $48 million from $42 million, year over year. Total deposits, had a slight decrease from $129.9 million at December 31, 2013 to $123.9 million as of December 31, 2014.
For 2014, the Bank recognized $6.0 million in net interest income compared to $5.6 million from a year earlier. Non-interest income totaled $644 thousand for the year ended December 31, 2014. Non-interest expenses were $6.2 million for the year ended December 31, 2014.
The Bank’s capital ratios continue to be very strong, exceeding all regulatory guidelines for “well capitalized” institutions at December 31, 2014, which gives the Bank a number of options in its growth strategies.
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, | |||||||||||||||||
| 2014 | 2013 | ||||||||||||||||
| Operating Data | |||||||||||||||||
| Interest income | $ | 6,623,000 | $ | 6,228,000 | |||||||||||||
| Interest expense | 643,000 | 620,000 | |||||||||||||||
| Net interest income | 5,980,000 | 5,608,000 | |||||||||||||||
| Provision (benefit) for loan and lease losses | (2,079,000 | ) | (959,000 | ) | |||||||||||||
|
Net interest income after provision (benefit) for loan and lease losses |
8,059,000 | 6,567,000 | |||||||||||||||
| Non-interest income | 644,000 | 620,000 | |||||||||||||||
| Non-interest expense | 6,168,000 | 6,118,000 | |||||||||||||||
| Income before provision (benefit) for income taxes | 2,535,000 | 1,069,000 | |||||||||||||||
| Provision (benefit) for income taxes | (4,644,000 | ) | 4,000 | ||||||||||||||
| Net income | $ | 7,179,000 | $ | 1,065,000 | |||||||||||||
| Per Share Data and Other Ratios | |||||||||||||||||
| Net Earnings – Basic | $ | 1.52 | $ | 0.23 | |||||||||||||
| Return on Average Assets | 3.66 | % | 0.49 | % | |||||||||||||
| Return on Average Equity | 18.45 | % | 2.12 | % | |||||||||||||
| Net Interest Margin | 3.22 | % | 3.16 | % | |||||||||||||
| December 31, 2014 | December 31, 2013 | ||||||||||||||||
| Balance Sheet Data and Related Ratios | |||||||||||||||||
| Total Assets | $ | 206,012,000 | $ | 186,448,000 | |||||||||||||
| Total Loans | 127,378,000 | 109,766,000 | |||||||||||||||
| Allowance for Loan Losses (ALLL) | 1,810,000 | 1,698,000 | |||||||||||||||
| Investment Securities | 51,622,000 | 58,125,000 | |||||||||||||||
| Total Deposits | 123,917,000 | 129,953,000 | |||||||||||||||
| Total Shareholders’ Equity | 46,639,000 | 37,077,000 | |||||||||||||||
| ALLL as a Percentage of Total Loans | 1.42 | % | 1.55 | % | |||||||||||||
| Book Value | $ | 9.87 | $ | 7.85 | |||||||||||||
| Actual Number of Shares Outstanding | 4,724,576 | 4,724,576 | |||||||||||||||
