Business & Finance
Tue, February 3, 2009Mon, February 2, 2009Sun, February 1, 2009Fri, January 30, 2009Thu, January 29, 2009Wed, January 28, 2009Tue, January 27, 2009Mon, January 26, 2009Beach Business Bank: Beach Business Bank Reports Earnings for the Fourth Quarter
Published in Business and Finance on Thursday, January 29th 2009 at 12:55 GMT, Last Modified on 2009-01-29 12:57:30 by Market Wire
MANHATTAN BEACH, CA--(Marketwire - January 29, 2009) - Beach Business Bank (
During the quarter, the Bank recorded after tax earnings of $290,000, an increase of $118,000 from the prior quarter. The financial results demonstrated 6.1% growth in net loans over the previous quarter, and 3.7% growth in net loans over the same quarter of the prior year. Total new loan commitments in the quarter amounted to more than $24 million. Non-interest bearing demand deposits totaled $31.8 million at quarter end, an increase of 34.4% over the prior quarter end, and an increase of 63.0% over the same period in 2007.
"While we find these economic conditions to be unprecedented in recent memory," commented Jim Gray, the co-chairman of the Bank's board of directors, "we are very pleased to be able to report improved quarterly earnings for the fourth quarter of 2008. We are also pleased that our loan portfolio grew during this very challenging quarter. We continue to be a source of strength to our business clients."
Robert Franko, president and chief executive officer of the Bank, commented, "We have also seen a meaningful increase in our demand deposit base, now that 100% of the Bank's demand deposit balances are insured by the FDIC under the Transaction Account Guarantee Program. We are pleased to report that the Bank qualified for the US Treasury Capital Purchase Plan ("CPP"). The CPP positions us to be even more flexible in providing loans to small businesses in the communities that we serve. We understand that this plan is only available to healthy banks, so we are particularly proud to have been selected to participate."
Total assets increased 8.3% or $17.7 million to $231.6 million at December 31, 2008, as compared to $213.9 million at December 31, 2007. Net Loans increased 3.7% or $6.9 million to $192.6 million over the same period. The Bank provided $600,000 in the quarter to the Allowance for Loan & Lease Losses ("ALLL"), so that the ALLL now stands at about $4.9 million, approximately 2.5% of total loans. The Bank's total risk-based capital ratio stands at 17.11% at December 31, 2008, which means the Bank continues to be Well Capitalized as defined by the FDIC.
The Bank had net recoveries of $341 in the quarter. Non-accrual loans decreased slightly from $2.6 million at the end of the 3rd quarter to $2.5 million at the end of the 4th quarter. Other than these nonaccrual loans, there were no loans more than 30 days past due.
The Bank's annualized net interest margin for the quarter was 4.16%.
During the quarter, an investment fund which owned 301,400 shares of common stock in the Bank chose to liquidate. As a part of that liquidation, a trust was established to sell the shares of common stock in the Bank or otherwise distribute them. The shares will be offered for sale under an SEC 10b5-1 plan established with the firm of Howe Barnes Hoefer & Arnett. Details of the 10b5-1 plan may be obtained from Michael Hedrie of that firm at (415) 538-5749.
Other selected financial data is included in the table below.
Financial statements in the form of the Bank's Call Report, as filed with the FDIC, will be available on the Bank's web site at [ www.beachbusinessbank.com ], and should be available for review or downloading from the FDIC web site at [ www.fdic.gov ] shortly after the end of this month.
Beach Business Bank is headquartered at 1230 Rosecrans Avenue, Lobby Level, in Manhattan Beach, and has a second full-service office at 180 E. Ocean Blvd. in Long Beach, CA. The Bank is first and foremost a community business bank serving Los Angeles, Long Beach, and the South Bay area residents and businesses. The Bank also has a division named The Doctors Bank, which serves physicians and dentists nationwide. In addition, Beach Business Bank provides loans to small businesses, focused around the SBA 7(a), 504, and Express lending programs. The Bank makes a special effort to serve minority-owned businesses. For more information on the Bank, please visit [ www.beachbusinessbank.com ] or call 866-862-3878 or 310-536-2260; in Long Beach, call 562-435-8600.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
The financial information in this press release is based on our unaudited financial results. Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief, and current expectations of the Bank, its directors, or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements are subject to risks and uncertainties and therefore the Bank's actual results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that the Bank is subject to include, but are not limited to, risks related to the local and national economy, including fluctuations in interest rates and costs and changes in economic policy; the ability of the Bank to perform in accordance with its plans; competition; regulatory matters; and other risks detailed in its filings with the State of California Department of Financial Institutions and the Federal Deposit Insurance Corporation. The Bank cautions readers not to place undue reliance on any forward-looking statements. The Bank does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Summary Financial Information The following tables present relevent financial data from Beach Business Bank's recent performance. December 31, 2008 December 31, 2007 ----------------- ----------------- Balance Sheet Results (In thousands), except per share data: Total Assets $ 231,613 $ 213,936 Gross Loans $ 199,315 $ 188,373 Loans Held for Sale ("AFS") $ 1,780 $ - Allowance for Loan Losses ("ALLL") $ 4,892 $ 2,600 Total Net Loans $ 192,643 $ 185,773 Total Deposits $ 173,689 $ 172,685 Other Real Estate Owned $ 2,879 $ 3,864 Total Shareholders' Equity $ 34,409 $ 37,386 Net Loans to Deposits 110.91% 107.58% ALLL to Gross Loans less AFS 2.48% 1.38% Equity to Assets 14.86% 17.48% Ending Shares outstanding 4,036,984 4,036,984 Ending Book Value per Share $ 8.52 $ 9.26 Three Months Ended December, 2008 2007 Quarterly Operating Results (In thousands): Net Interest Income $ 2,450 $ 2,347 Non-interest Income $ 284 $ 206 Non-interest Expense $ 1,844 $ 1,824 Income Before Provision & Taxes $ 890 $ 728 Provision for Loan Losses $ 600 $ 427 Income Tax Expense $ - $ - Net Income $ 290 $ 301 Quarterly Return on Average Assets* 0.50% 0.59% Quarterly Return on Average Equity* 3.39% 3.23% Quarterly Net Interest Margin* 4.37% 4.70% Quarterly Efficiency Ratio* 67.44% 71.45% Twelve Months Ended December 31, 2008 2007 YTD Operating Results (In thousands): Net Interest Income $ 8,872 $ 7,792 Non-interest Income $ 982 $ 1,261 Non-interest Expense $ 10,656 $ 7,292 Income Before Provision & Taxes $ (802) $ 1,761 Provision for Loan Losses $ 2,574 $ 1,166 Income Tax Expense $ - $ - Net Income $ (3,376) $ 595 YTD Return on Average Assets* -1.53% 0.35% YTD Return on Average Equity* -9.41% 1.61% YTD Net Interest Margin* 4.16% 4.75% YTD Efficiency Ratio* 108.14% 80.55% YTD Efficiency Ratio (Absent OREO Charges) 81.40% 78.52% *Percentages are reported on an annualized basis. Source: FDIC quarterly Call Reports for Beach Business Bank for the periods indicated. 