Business & Finance
Business and Finance
Business and Finance
Mon, August 30, 2010
Fri, August 27, 2010
Thu, August 26, 2010 Commonwealth Business Bank Reports Second Quarter 2010 Results
LOS ANGELES--([ BUSINESS WIRE ])--Commonwealth Business Bank (OTCBB: CWBB) today reported net loss available to common stockholders of $538,000 or ($0.17) per diluted share for the second quarter of 2010.
"Our ongoing strategic focus is on aggressive management of asset quality and controlled growth of earning assets, and we are seeing encouraging trends"
aOur ongoing strategic focus is on aggressive management of asset quality and controlled growth of earning assets, and we are seeing encouraging trends,a commented Jack Choi, President & CEO. aWe are actively promoting dialogue with borrowers and reinforcing workout capability as well as performing early detection and resolution of problem loans. These coupled with slow but progressive economic recovery contributed to stabilizing loan delinquencies and non-performing loans. During the quarter, we improved core earnings and had steady growth of loan inventory and funding bases. Capital remained solid and liquidity position was further strengthened. We expect these trends to continue for the remainder of the year and provide momentum for future higher returns.a
Second Quarter 2010 Highlights
- Net loss available to common stockholders was $538,000 or ($0.17) per diluted share compared with net loss of $354,000 or ($0.12) per diluted share in previous quarter 2010, and $562,000 or ($0.18) per diluted share year-over-year.
- Net interest margin decreased 10 basis points to 3.27% from previous quarter, due to reversal of interest on non-accrual loans, but increased 59 basis points from prior year, mainly from reduction in cost of funds.
- Non-interest income increased $472,000 and $210,000 from previous quarter and year-over-year, respectively, due to an increase in gain on sale of SBA loans and fee income.
- Non-interest expense decreased $44,000 from previous quarter and $86,000 year-over-year.
- Total assets grew 1.09%, or $4.0 million, to $367.3 million from previous quarter.
- Total deposits increased 2.62%, or $7.8 million, to $306.3 million.
- Gross loans increased 3.38%, or $9.3 million, to $283.9 million.
- ALLL increased to 2.43% of gross loans compared to 2.23% at 3/31/2010 and 2.28% at 12/31/09.
- Non-performing loans were 2.61% of gross loans at 6/30/2010 from 2.99% at 3/31/2010 and 0.09% at 12/31/09.
- Net charge offs increased to 2.95% of average loans on an annualized basis from 2.90% in previous quarter and 2.29% from prior year.
- No OREOs.
- Well capitalized with the leverage ratio of 12.67%, tier one capital ratio of 15.47% and total risk-based capital ratio of 16.73%.
- Tangible common equity to tangible assets of 11.00%.
- Efficiency ratio decreased to 49.05% compared to 59.83% of previous quarter and 71.10% of the prior year.
| BALANCE SHEETS | ||||||||||||||||
| ($ in thousands, except per share amounts) | ||||||||||||||||
| June 30, 2010 | March 31, 2010 | December 31, 2009 | ||||||||||||||
|
| |||||||||||||||
| Assets | ||||||||||||||||
| Cash & due from banks | $ | 3,394 | $ | 3,781 | $ | 3,661 | ||||||||||
| Interest-bearing due from banks | 54,937 | 52,398 | 27,508 | |||||||||||||
| Fed funds sold | - | - | - | |||||||||||||
| Investment securities | 19,434 | 27,363 | 28,321 | |||||||||||||
| Total Loans | 283,881 | 274,612 | 271,401 | |||||||||||||
| Allowance for loan losses | (6,887 | ) | (6,137 | ) | (6,188 | ) | ||||||||||
| Net loans | 276,994 | 268,475 | 265,213 | |||||||||||||
| FRB & FHLB Stocks | 2,960 | 2,863 | 2,863 | |||||||||||||
| Accrued interest receivable | 1,012 | 1,290 | 1,101 | |||||||||||||
| Premises and equipments, net | 1,254 | 1,290 | 1,356 | |||||||||||||
| Customer liability on acceptances | - | - | 391 | |||||||||||||
| Other assets | 7,347 | 5,914 | 5,763 | |||||||||||||
| Total Assets | $ | 367,332 | $ | 363,374 | $ | 336,177 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||
| Noninterest-bearing deposits | $ | 36,084 | $ | 38,029 | $ | 34,341 | ||||||||||
| Interest-bearing deposits | 270,247 | 260,491 | 241,223 | |||||||||||||
| Total deposits | 306,331 | 298,520 | 275,564 | |||||||||||||
| FHLB advance | 9,000 | 9,000 | 9,000 | |||||||||||||
| Other Borrowings | 2,242 | 5,151 | - | |||||||||||||
| Accrued interest payable | 609 | 1,117 | 961 | |||||||||||||
| Bank liability on acceptances | - | - | 391 | |||||||||||||
| Other liabilities | 1,056 | 1,077 | 1,501 | |||||||||||||
| Total Liabilities | 319,238 | 314,865 | 287,417 | |||||||||||||
| Total shareholders' equity | 48,094 | 48,509 | 48,760 | |||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 367,332 | $ | 363,374 | $ | 336,177 | ||||||||||
| Book value per common share | $ | 13.02 | $ | 13.16 | $ | 13.24 | ||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||||
| ($ in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, 2010 | March 31, 2010 | June 30, 2009 | |||||||||||||
| Interest income | $ | 4,100 | $ | 3,987 | $ | 3,774 | |||||||||
| Interest Expense | 1,161 | 1,168 | 1,650 | ||||||||||||
| Net interest income | 2,939 | 2,819 | 2,124 | ||||||||||||
| Provision for loan losses | 2,761 | 1,820 | 1,482 | ||||||||||||
| Non interest income | 757 | 285 | 547 | ||||||||||||
| Non interest expense | 1,813 | 1,857 | 1,899 | ||||||||||||
| Income before income taxes | (878 | ) | (573 | ) | (710 | ) | |||||||||
| Provision for income taxes | (356 | ) | (234 | ) | (275 | ) | |||||||||
| Net income (loss) | $ | (522 | ) | $ | (339 | ) | $ | (435 | ) | ||||||
| Dividend and discount accretion on preferred stock | $ | (16 | ) | $ | (15 | ) | $ | (127 | ) | ||||||
| Net income (loss) available to common stockholders | $ | (538 | ) | $ | (354 | ) | $ | (562 | ) | ||||||
| Basic EPS | $ | (0.17 | ) | $ | (0.12 | ) | $ | (0.18 | ) | ||||||
| Diluted EPS | $ | (0.17 | ) | $ | (0.12 | ) | $ | (0.18 | ) | ||||||
| INCOME STATEMENT RATIOS | |||||||||||||||
| Return on average assets | -0.56 | % | -0.40 | % | -0.54 | % | |||||||||
| Return on average equity | -4.28 | % | -2.80 | % | -3.58 | % | |||||||||
| Net interest margin | 3.27 | % | 3.37 | % | 2.68 | % | |||||||||
| Efficiency ratio | 49.05 | % | 59.83 | % | 71.10 | % | |||||||||
| Six Months Ended | |||||||||||||||
| June 30, | |||||||||||||||
| 2010 | 2009 | ||||||||||||||
| Interest income | $ | 8,087 | $ | 7,447 | |||||||||||
| Interest expense | 2,329 | 3,260 | |||||||||||||
| Net interest income | 5,758 | 4,187 | |||||||||||||
| Provision for loan losses | 4,581 | 2,805 | |||||||||||||
| Non interest income | 1,042 | 863 | |||||||||||||
| Non interest expense | 3,670 | 3,665 | |||||||||||||
| Income before income taxes | (1,451 | ) | (1,420 | ) | |||||||||||
| Income tax provision | (590 | ) | (573 | ) | |||||||||||
| Net income (loss) | $ | (861 | ) | $ | (847 | ) | |||||||||
| Dividend and discount accretion on preferred stock | $ | (31 | ) | $ | (152 | ) | |||||||||
| Net income (loss) available to common stockholders | $ | (892 | ) | $ | (999 | ) | |||||||||
| Basic EPS | $ | (0.29 | ) | $ | (0.32 | ) | |||||||||
| Diluted EPS | $ | (0.29 | ) | $ | (0.32 | ) | |||||||||
| INCOME STATEMENT RATIOS | |||||||||||||||
| Return on average assets | -0.48 | % | -0.55 | % | |||||||||||
| Return on average equity | -3.54 | % | -3.55 | % | |||||||||||
| Net interest margin | 3.33 | % | 2.75 | % | |||||||||||
| Efficiency ratio | 53.97 | % | 72.57 | % | |||||||||||
The Banka™s Call Reports are available for review or download directly from the FDIC website at [ www.fdic.gov ], or through the link at the Banka™s website at [ www.cwbbank.com ].
This press release contains certain forward-looking information about Commonwealth Business Bank(CBB) that is intended to be covered by the safe harbor for aforward-looking statementsa provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the banka™s outlook. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of CBB. CBB cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues that are lower than expected and credit quality deterioration which could cause an increase in the provision for credit losses.
These forward-looking statements involve known and unknown risks, uncertainties and factors such as: changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which CBB does or anticipates doing business, including the possibility of a U.S. recession, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of CBB to retain customers, demographic changes, demand for the products or services of CBB as well as its ability to attract and retain qualified people, competition with other banks and financial institutions, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, CBBa™s results could differ materially from those expressed in, or implied or projected by such forward-looking statements. CBB assumes no obligation to update such forward-looking statements.
