Business & Finance
Business and Finance
Business and Finance
Tue, October 19, 2010
Mon, October 18, 2010 Stellar Business Bank Announces Third Quarter 2010 Operating Results
COVINA, Calif.--([ BUSINESS WIRE ])--Stellar Business Bank (OTCBB: SLRB) announced its third quarter 2010 financial results. As of September 30, 2010, the Bank reported total assets of $103.7 million and total deposits of $72.5 million, which represents a decrease of 2% and 12% respectively, and net total loans of $51.1 million, which represents an increase of 50% from the third quarter of 2009, with an additional $4.5 million in unfunded loan commitments. As of September 30, 2010, the Bank had no residential asub-primea mortgage loans, no OREO (foreclosed properties) and no past due or non-performing loans.
The Bank reported an unaudited year-to-date loss of $574,515 or ($0.25) basic loss per share, which includes a gain on sale of investment securities of $281,135 and a loan loss provision of $406,507. This is compared to a net loss of $1,148,425 or $0.50 basic loss per share in the same fiscal period last year, which included a gain on the sale of securities of $979,210 and a loan loss provision of $430,409.
For the quarter ended September 30, 2010, the Bank reported a net profit of $64,475 compared to a net loss for the same quarter last year, September 30, 2009, of $438,574. The improvement in net income was primarily the result of a decrease in interest expense of $922,663 and an increase in interest and loan fee income of $305,949. The contributing factors to these results is re-pricing of rates on Time Certificates of Deposit and Money Market accounts, and an increase in loans of $17.5 million and a gain on sale of SBA loans that the Bank realized during the third quarter.
aWhile we are pleased with the improving trends in our operational performance, especially a 3rd quarter of bottom-line profitability, 2010 will continue to be challenging for the economy, banking and financial institutions in general, and for newer or de novo banking institutions in particular, like Stellar Business Bank, in terms of attaining recurring operational profitability.
aTo address this challenge, we have deliberately focused on a number of areas.One, we continue to remain well-capitalized, liquid, with superior asset quality, and with no Other Real Estate Owned (OREO or foreclosed properties), no non-performing or non-accrual loans, and no 90-day delinquent loans. Two, we have focused on core deposit relationships, allowing price-driven only and unprofitable deposit relationships to run off of our balance sheet.Three, we have focused on increasing our earning assets in the area of loans, improving our loan-to-deposit ratio and net interest margin.Four, we continue to actively manage our investment portfolio to maximize earnings.Finally, we have and continue to see growth and earnings potential in our SBA lending activities.
aWe continue to believe that we are strategically poised to take advantage of continuing opportunities in 2010 and beyond, with a mission to attain and maintain profitable operations on an ongoing basis and to enhance shareholder value.We have the management and staff, Board of Directors, customers and opportunities to realize this vision and look forward to continuing to be your local community bank of choice,a stated Timothy P. Walbridge, President and Chief Executive Officer.
| STELLAR BUSINESS BANK | ||||||||
| Balance Sheets | ||||||||
| Unaudited | Unaudited | |||||||
| ASSETS | 09/30/2010 | 09/30/2009 | ||||||
| Cash and Cash Equivalents | $ | 218,003 | $ | 700,777 | ||||
| Fed Funds Sold | 6,445,000 | |||||||
| Interest-Bearing Deposits in Banks | 3,493,592 | 5,932,000 | ||||||
| Investment Securities Available for Sale | 43,618,963 | 56,050,032 | ||||||
| Equity Securities | 680,900 | 614,000 | ||||||
| Loans | 52,229,836 | 34,736,647 | ||||||
| Allowance for Loan Losses | (1,125,363 | ) | (692,913 | ) | ||||
| Loans, Net | 51,104,473 | 34,043,734 | ||||||
| Premises and Equipment, Net | 1,126,789 | 1,343,798 | ||||||
| Accounts Receivable-Securities | 2,545,000 | |||||||
| Accrued Interest Receivable and Other | ||||||||
| Assets | 896,379 | 736,197 | ||||||
| Total Assets | $ | 103,684,099 | $ | 105,865,538 | ||||
| LIABILITIES and STOCKHOLDERS' | ||||||||
| EQUITY | ||||||||
| Deposits | ||||||||
| Noninterest-Bearing Deposits | $ | 8,987,413 | $ | 8,139,534 | ||||
| Interest Bearing Deposits | 63,551,113 | 74,110,427 | ||||||
| Total Deposits | 72,538,526 | 82,249,961 | ||||||
| Federal Home Loan Bank Advance | 12,000,000 | 5,000,000 | ||||||
| Federal Funds Purchased | 1,000,000 | |||||||
| Accrued Interest Payable and Other Liabilities | 297,848 | 392,176 | ||||||
| Total Liabilities | $ | 85,836,374 | $ | 87,642,137 | ||||
| Stockholders' Equity | ||||||||
| Common Stock | 23,816,607 | 23,630,607 | ||||||
| Accumulated Deficit | (6,316,110 | ) | (5,631,231 | ) | ||||
| Accumulated Other Comprehensive Gain | 347,228 | 224,025 | ||||||
| Total Stockholders' Equity | 17,847,725 | 18,223,401 | ||||||
| Total Liabilities & Stockholders' Equity | $ | 103,684,099 | $ | 105,865,538 | ||||
| STELLAR BUSINESS BANK | ||||||||
| Statements of Operations | ||||||||
| Unaudited | Unaudited | |||||||
| January 1, 2010 thru | January 1, 2009 thru | |||||||
| September 30, 2010 | September 30, 2009 | |||||||
| Interest and Loan Fee Income | $ | 3,292,992 | $ | 2,987,043 | ||||
| Interest Expense | (516,621 | ) | (1,439,284 | ) | ||||
| Net Interest and Loan Fee Income | 2,776,371 | 1,547,759 | ||||||
| Provision for Loan Losses | (406,507 | ) | (430,409 | ) | ||||
Net Interest Income after Provision for Loan Losses | 2,369,864 | 1,117,350 | ||||||
| Gain on Sale of Available for Sale Securities | 281,135 | 979,210 | ||||||
| Other Income | 78,240 | 29,368 | ||||||
| Operating Expenses | (3,302,954 | ) | (3,273,553 | ) | ||||
| Net Loss (Before Taxes) | (573,715 | ) | (1,147,625 | ) | ||||
| Income Taxes | (800 | ) | (800 | ) | ||||
| Net Loss | ($574,515 | ) | ($1,148,425 | ) | ||||
| Basic Loss Per Share | ($0.25 | ) | ($0.50 | ) | ||||
| Book Value Per Share | $ | 7.78 | $ | 7.94 | ||||
| Shares Outstanding | 2,295,271 | 2,295,271 | ||||||
The numbers in this press release are unaudited as indicated. Certain statements in this press release, including statements regarding the anticipated development and expansion of Stellar Business Banka™s business, and the intent, belief or current expectations of the Bank, its directors or its officers, are aforward lookinga statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Banka™s performance, including its ability to generate loan and deposit growth, changes in interest rates, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation. Member FDIC
