Orange County Business Bank Announces Financial Results

IRVINE, Calif.--(BUSINESS WIRE)--Orange County Business Bank (the “Bank”) (OTCBB: OCBB) announced financial results for the three months and six months ended June 30, 2012.

The Bank’s net loss for the three months ended June 30, 2012 was $47 thousand versus net loss of $41 thousand for the same period in 2011. The Bank reported net loss for the first six months of 2012 of $126 thousand versus net loss of $137 thousand for the same period in 2011.

The Bank’s net interest income for the three months ended June 30, 2012 was $1.1 million versus $1.4 million a year ago. The difference of $300 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 and, as a result, increase loans outstanding. Non-interest income for the three months ended June 30, 2012 was $467 thousand versus $209 thousand for the same period last year. Additionally, non-interest expense was $1.6 million versus $1.7 million for the second quarters of 2012 and 2011, respectively.

Net interest income after provisions for loan and lease losses for the six months ended June 30, 2012 was $2.4 million versus $2.9 million for the same period in 2011. The difference of $500 thousand in net interest income was partially offset by an increase in non-interest income of $368 thousand for the first six months of 2012 versus the same period from 2011. To help offset the decrease in total revenues, the Bank reduced non-interest expenses by $107 thousand for the six months ended June 30, 2012 versus the same period in 2011. The Bank continues to look for methods to reduce overhead expense while focusing on getting back to profitability.

As of June 30, 2012, the Bank had a ratio of Shareholders’ Equity to Total Assets of nearly 22%. At June 30, 2012, the Bank’s assets totaled $176.4 million, with loans totaling $81 million, and deposits totaling $122.4 million. The Bank’s capital ratios continued to far exceed regulatory guidelines for “well-capitalized” institutions at June 30, 2012.

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 Avenue, Suite 100, Irvine 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						As of and for the
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Operating Data
Interest income	$	1,346,000		$	1,711,000		$	2,916,000		$	3,511,000
Interest expense		251,000			302,000			503,000			634,000
Net interest income		1,095,000			1,409,000			2,413,000			2,877,000
Provision for loan and lease losses		-			-			-			-
Net interest income after provision
for loan and lease losses		1,095,000			1,409,000			2,413,000			2,877,000
Non interest income		467,000			209,000			687,000			319,000
Non interest expense		1,609,000			1,659,000			3,226,000			3,333,000
Income before provision for income taxes		(47,000	)		(41,000	)		(126,000	)		(137,000	)
Provision for income taxes		-			-			-			-
Net income	$	(47,000	)	$	(41,000	)	$	(126,000	)	$	(137,000	)
Per Share Data and Other Ratios
Net Earnings – Basic	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.03	)
Return on Average Assets		-0.11	%		-0.09	%		-0.15	%		-0.14	%
Return on Average Equity		-0.49	%		-0.43	%		-0.66	%		-0.72	%
Net Interest Margin		2.60	%		2.99	%		2.98	%		3.17	%
	30-Jun-12			31-Dec-11
Balance Sheet Data and Related Ratios
Total Assets	$	176,356,000		$	168,690,000
Total Loans		81,044,000			103,536,000
Allowance for Loan Losses (ALLL)		2,928,000			2,849,000
Investment Securities		25,605,000			34,688,000
Total Deposits		122,369,000			108,267,000
Total Shareholders’ Equity		38,209,000			38,365,000
ALLL as a Percentage of Total Loans		3.61	%		2.75	%
Book Value	$	8.09		$	8.12
Actual Number of Shares Outstanding		4,724,576			4,724,576