Business & Finance
Business and Finance
Business and Finance
Thu, July 23, 2009
Wed, July 22, 2009 Beach Business Bank: Beach Business Bank Reports Earnings for the Second Quarter
MANHATTAN BEACH, CA--(Marketwire - July 22, 2009) - Beach Business Bank (
During the quarter, the Bank recorded after tax earnings of $99,000, compared to $103,000 for the prior quarter. The financial results demonstrated 0.75% growth in net loans over the previous quarter, and 13.41% growth in net loans over the same quarter of the prior year. Total new loan commitments in the quarter amounted to approximately $7.5 million. Non-interest bearing demand deposits totaled $30.3 million at quarter end, an increase of 0.9% over the prior quarter end, and an increase of 23.82% over the same period in 2008.
"We are pleased to report a profitable second quarter and for the year to date. We are gratified to see our growth in core deposits has continued. In view of the troubled economic environment, we strive to be a continual source of stability to our clients as we fulfill all of their banking needs," commented Jim Gray, the Co-Chairman of the Bank's Board of Directors.
Robert Franko, President and Chief Executive Officer of the Bank, commented, "We have been particularly pleased with recent new activity at The Doctors Bank(SM) division of the Bank. Since our founding, physicians and dentists have been key deposit and loan clients. They look to The Doctors Bank as a reliable financial partner in this uncertain time."
Total assets increased 18.68%, or $38.7 million, to $245.6 million at quarter-end, as compared to $207 million for the same quarter-end last year. Net Loans increased 13.41% or $23.3 million, to $197.1 million over the same period. The Bank provided $45,000 in the quarter to the Allowance for Loan & Lease Losses ("ALLL"), so that the ALLL now stands at about $4.88 million, approximately 2.42% of total loans.
The FDIC's definition of well capitalized is total risk-based capital greater than 10%, Tier 1 risk-based capital greater than 8%, and Tier 1 Leverage capital greater than 4%. The Bank's total risk-based capital ratio stands at 19.61% at quarter-end, the Bank's Tier 1 risk-based capital is 18.35% and Tier 1 Leverage capital is 16.34%, all substantially above the minimums for a Well Capitalized bank.
The Bank had net charge-offs of $28,325 in the quarter. Non-accrual loans stood at $3.1 million at the end of the quarter. Accruing loans more than 30 days past due stood at $2.4 million at the end of the quarter.
The Bank's annualized net interest margin for the quarter was 3.78%.
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. June 30, December June 30, 2009 31, 2008 2008 --------- --------- --------- Balance Sheet Results (In thousands), except per share data: Total Assets $ 245,630 $ 231,022 $ 206,972 Gross Loans $ 201,957 $ 199,315 $ 178,058 Loans Held for Sale $ - $ 1,780 $ 741 Allowance for Loan Losses $ 4,878 $ 5,104 $ 4,300 Total Net Loans $ 197,079 $ 192,431 $ 173,017 Total Deposits $ 196,136 $ 173,689 $ 167,446 Other Real Estate Owned $ 2,966 $ 2,500 $ 3,364 Preferred Stock $ 6,003 $ - $ - Common Stock $ 34,598 $ 34,409 $ 33,720 Total Shareholders' Equity $ 40,601 $ 34,409 $ 33,720 Net Loans to Deposits 100.48% 110.79% 103.77% ALLL to Loans HTM 2.42% 2.58% 2.43% Equity to Assets 16.53% 14.89% 16.29% Ending Shares outstanding 4,036,984 4,036,984 4,036,984 Ending Book Value per Common Share $ 8.57 $ 8.52 $ 8.35 Three Months Ended June 30, December June 30, 2009 31, 2008 2008 --------- --------- --------- Quarterly Operating Results (In thousands): Net Interest Income $ 2,155 $ 2,450 $ 1,912 Non-interest Income $ 204 $ 284 $ 287 Non-interest Expense** $ 2,215 $ 1,632 $ 4,415 Income Before Provision & Taxes $ 144 $ 1,102 $ (2,215) Provision for Loan Losses $ 45 $ 812 $ 1,830 Income Tax Expense $ - $ - $ - Net Income $ 99 $ 290 $ (4,045) Quarterly Return on Average Assets* 0.16% 0.50% -7.38% Quarterly Return on Average Equity* 0.97% 3.39% -42.84% Quarterly Net Interest Margin* 3.56% 4.37% 3.69% Quarterly Efficiency Ratio* 93.89% 59.70% 200.72% Six Months Ended June 30, June 30, 2009 2008 --------- --------- YTD Operating Results (In thousands): Net Interest Income $ 4,370 $ 4,211 Non-interest Income $ 436 $ 542 Non-interest Expense** $ 4,533 $ 6,721 Income Before Provision & Taxes $ 272 $ (1,968) Provision for Loan Losses $ 70 $ 1,870 Income Tax Expense $ - $ - Net Income $ 202 $ (3,838) YTD Return on Average Assets* 0.08% -1.74% YTD Return on Average Equity* 0.51% -10.19% YTD Net Interest Margin* 3.78% 4.03% YTD Efficiency Ratio* 94.33% 141.41% YTD Efficiency Ratio (Absent OREO Charges) 90.86% 89.56% ** Includes FDIC Special Assessment $ 103 - *Percentages are reported on an annualized basis. Source: FDIC quarterly Call Reports for Beach Business Bank for the periods indicated.
