NEWPORT BEACH, Calif.--()--Orange County Business Bank (the “Bank”) (OTCBB: OCBB) announced financial results for the three months and nine months ended September 30, 2011.
The Bank’s net loss for the three months ended September 30, 2011 was $84 thousand versus net income of $272 thousand for the same period in 2010. The Bank reported net loss for the first nine months of 2011 of $221 thousand versus net income of $29 thousand for the same period in 2010.
The Bank’s net interest income for the three months ended September 30, 2011 was $1.3 million versus $1.7 million a year ago. The difference of $400 thousand in net interest income was primarily driven by a decrease in the total loans outstanding. As the economy has stagnated, the Bank has not been able to replace the loans that have paid off as expected. The Bank continues to focus all of its efforts and attention to acquiring high quality clients. Non-interest income for the three months ended September 30, 2011 was $166 thousand versus $150 thousand for the same period last year. Additionally, non-interest expense was up for the third quarter of 2011 over the same period in 2010, $1.6 million versus $1.4 million, respectively. The difference in the non-interest expense category was largely driven by a reimbursement in 2010 of expenses related to a single loan for which a large recovery of prior expenditures was paid by the borrower.
Net interest income after provisions for loan and lease losses for the nine months ended September 30, 2011 was $4.2 million versus $4.5 million for the same period in 2010. The difference of $300 thousand was driven by a decrease in interest income, but was largely offset by a lack of provision in 2011 due to the improving asset quality of the Bank. Non-interest income for the first nine months of 2011 was $485 thousand versus $868 thousand for the same period in 2010. The difference in this category from year over year was a decrease in the gains on sale of securities in 2011. To help offset the decrease in revenues, the Bank reduced non-interest expenses by $349 thousand for the nine months ended September 30, 2011 versus the same period in 2010. The Bank continues to look for methods to reduce overhead expense while focusing on getting back to profitability.
As of September 30, 2011, the Bank had a ratio of Shareholders’ Equity to Total Assets of nearly 20%. At September 30, 2011, the Bank’s assets totaled $195.1 million, with loans totaling $113.9 million, and deposits totaling $133.5 million. The Bank’s capital ratios continued to far exceed regulatory guidelines for “well-capitalized” institutions at September 30, 2011.
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 4675 MacArthur Court, Suite 100, Newport Beach. 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 | As of and for the | ||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
| Operating Data | |||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 1,605,000 | $ | 2,040,000 | $ | 5,117,000 | $ | 6,379,000 | |||||||||||||||||||||||||||||||||
| Interest expense | 300,000 | 358,000 | 935,000 | 1,015,000 | |||||||||||||||||||||||||||||||||||||
| Net interest income | 1,305,000 | 1,682,000 | 4,182,000 | 5,364,000 | |||||||||||||||||||||||||||||||||||||
| Provision for loan and lease losses | - | - | - | 910,000 | |||||||||||||||||||||||||||||||||||||
| Net interest income after provision | |||||||||||||||||||||||||||||||||||||||||
| for loan and lease losses | 1,305,000 | 1,682,000 | 4,182,000 | 4,454,000 | |||||||||||||||||||||||||||||||||||||
| Non interest income | 166,000 | 150,000 | 485,000 | 868,000 | |||||||||||||||||||||||||||||||||||||
| Non interest expense | 1,591,000 | 1,371,000 | 4,924,000 | 5,273,000 | |||||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | (120,000 | ) | 461,000 | (257,000 | ) | 49,000 | |||||||||||||||||||||||||||||||||||
| Provision for income taxes | (36,000 | ) | 189,000 | (36,000 | ) | 20,000 | |||||||||||||||||||||||||||||||||||
| Net income | $ | (84,000 | ) | $ | 272,000 | $ | (221,000 | ) | $ | 29,000 | |||||||||||||||||||||||||||||||
| Per Share Data and Other Ratios | |||||||||||||||||||||||||||||||||||||||||
| Net Earnings – Basic | $ | (0.02 | ) | $ | 0.06 | $ | (0.05 | ) | $ | 0.01 | |||||||||||||||||||||||||||||||
| Return on Average Assets | -0.18 | % | 0.52 | % | -0.16 | % | 0.02 | % | |||||||||||||||||||||||||||||||||
| Return on Average Equity | -0.88 | % | 2.17 | % | -0.77 | % | 0.09 | % | |||||||||||||||||||||||||||||||||
| Net Interest Margin | 2.84 | % | 3.57 | % | 3.06 | % | 3.44 | % | |||||||||||||||||||||||||||||||||
| 30-Sep-11 | 31-Dec-10 | ||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Data and Related Ratios | |||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 195,066,000 | $ | 204,184,000 | |||||||||||||||||||||||||||||||||||||
| Total Loans | 113,884,000 | 137,192,000 | |||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses (ALLL) | 4,627,000 | 4,798,000 | |||||||||||||||||||||||||||||||||||||||
| Investment Securities | 18,640,000 | 29,416,000 | |||||||||||||||||||||||||||||||||||||||
| Total Deposits | 133,463,000 | 142,840,000 | |||||||||||||||||||||||||||||||||||||||
| Total Shareholders’ Equity | 38,377,000 | 38,330,000 | |||||||||||||||||||||||||||||||||||||||
| ALLL as a Percentage of Total Loans | 4.06 | % | 3.50 | % | |||||||||||||||||||||||||||||||||||||
| Book Value | $ | 8.12 | $ | 8.11 | |||||||||||||||||||||||||||||||||||||
| Actual Number of Shares Outstanding | 4,724,576 | 4,724,576 | |||||||||||||||||||||||||||||||||||||||
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