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NorCal Community Bancorp Announces Third Quarter Financial Results

^{Published on 2010-10-29 08:25:56 - Market Wire}
 

ALAMEDA, Calif.--([ BUSINESS WIRE ])--NorCal Community Bancorp (the aCompanya) (OTCBB: NCLC), parent company for Bank of Alameda, today reported a third quarter 2010 net loss of $1.2 million, or $0.37 per diluted share, compared with a net loss of $584,000, or $0.19 per diluted share, for the same period a year ago. For the nine months ended September 30, 2010 the Company reported a net loss of $4.0 million, or $1.26 per diluted share, compared to a net loss of $622,000, or $0.20 per diluted share, for the first nine months of 2009.

"The Board and management are taking the appropriate steps to comply with the Order and believe that we will successfully meet all of the requirements of the Order, including the need to raise capital, at or before the agreed upon dates."

The allowance for loan and lease losses stood at 3.60% of total loans and leases at September 30, 2010. Non-performing loans and OREO were 8.77% of total assets or $22.0 million at September 30, 2010, down from 10.14%, or $24.9 million reported at June 30, 2010.

As of September 30, 2010, total assets were $250.4 million, down from $267.1 million at September 30, 2009. Total loans and leases have decreased $46.9 million, or 21% to $172.0 million at September 30, 2010 compared to $218.9 million at September 30, 2009. Total deposits increased to $225.7 million at September 30, 2010, compared to $225.6 million at September 30, 2009.

The Board of Directors is also reporting that the Bank of Alameda has entered into a joint formal agreement with the Federal Deposit Insurance Corporation and the California Department of Financial Institutions regarding the issuance of a Consent Order by those regulators. The Consent Order provides, among other things, that the Bank will: reduce its classified assets over a scheduled period of time, increase and maintain capital ratios at prescribed levels, reduce concentrations of commercial real estate and improve upon its lending policies and practices.

The Company is proceeding with raising additional capital in a private placement transaction, primarily with institutional investors and directors. Stephen G. Andrews, President and CEO stated, aThe Board and management are taking the appropriate steps to comply with the Order and believe that we will successfully meet all of the requirements of the Order, including the need to raise capital, at or before the agreed upon dates.a Andrews further stated, aOur determination to strengthen our balance sheet through the ongoing process of reducing problem assets and cushion our capital to aid in riding through a protracted economic recovery cycle has been the top priority for our Board and management team. The additional capital will also support our future growth.a It is expected that the transaction will close during the fourth quarter of 2010.

A copy of the Companya™s information and disclosure statement pursuant to Securities and Exchange Commission Rule 15c2-11 can be found on the home page of the Companya™s website at [ www.bankofalameda.com ] under the Investor Relations section.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities mentioned in this release. This release is being issued pursuant to, and in accordance with, Rule 135c under the Securities Act of 1933. The securities described in this release have not been registered under the Act or any state securities laws, and may not be offered or sold in the United States absent an effective registration statement covering such securities or an applicable exemption from such registration requirement.

Cautionary Statement: This release may contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated herein. Words such as aanticipate,a abelieve,a aestimate,a aexpect,a ashould,a aintend,a aproject,a and words or phrases of similar meaning are intended to identify forward-looking statements. Managementa™s assumptions and projections are based on their anticipation of future events and actual performance may differ materially from that projected. In particular, no assurance can be given that the company will complete a private placement of common stock or, if it is completed, the amount of capital to be received or the price at which the stock might be sold.