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California Community Bank Reports Record Profits for 2010

^{Published on 2011-02-23 12:55:40 - Market Wire}
 

ESCONDIDO, Calif.--([ BUSINESS WIRE ])--California Community Bank (OTCBB:CABK), today released its unaudited fourth quarter and full-year 2010 financial results.

For the fourth quarter of 2010, the Bank reported a net profit of $544,000, or basic earnings per share of 26 cents, versus a net loss of $235,000, or a basic loss per share of 11 cents, for the comparable period last year. For the full-year 2010, the Bank reported a net profit of $1,670,000, or basic earnings per share of 80 cents, compared to a net loss of $552,000, or a basic loss per share of 26 cents, for the full-year 2009.

The Bank finished the fourth quarter of 2010 with an asset base of $222,165,000, an increase of $1,527,000, or 1%, from the end of 2009. Total deposits were $193,712,000, up $1,110,000, or 1%, over the same period a year ago. As of December 31, 2010, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at $149,178,000 compared to $164,524,000 at December 31, 2009, a decrease of $15,346,000, or 9%.

Larry D. Hartwig, President and CEO commented, "Our team has done a great job during a very difficult economy and we are obviously pleased with the strong operating results for 2010. Asset quality continues to be solid, overhead expenses were up only slightly, funding costs have been reduced substantially, and net income showed a significant turn around. We also successfully grew our core deposit base, a major contributor toward achievement of an overall 39% year-over-year reduction in interest expense. In summary, we ended the year with over $220 million in total assets and recorded a 21% increase in full-year net interest income, the key driver of our return to profitability. Bank stock prices have not returned to past levels, but our results speak well for building long-term value for our shareholders and the franchise. The Bank has strong liquidity and is well positioned with substantial funds that are available to qualified borrowers. However, throughout 2010, loan demand remained tepid in our market footprint and contributed toward a declining trend in line-of-credit utilization. All of this is evidence of a very slow recovery in the local economy. Credit metrics are still difficult to predict in this type of economy, but we do know that our conservatively underwritten loan portfolio has continued to perform within acceptable parameters a" resulting in only modest reserves taken in 2010. Management remains focused on normalized profitability and expense control for the year ahead. We have confidence in the core strengths of our franchise and continue to aggressively manage loan quality with the expectation of positive economic growth at some point in the future.a

Hartwig further commented, aCapital ratios remain strong and our conservative loan underwriting is allowing us to navigate through this current credit cycle. In this economy, we also know that loan growth must be driven by market share gains rather than by increased economic activity. Our focus is on our relationship style of banking targeted toward small-to-medium size businesses, professionals, and high net worth individuals within our market area. We have not wavered from generating local market deposits and continue to make loans as usual to qualified borrowers. We also fully recognize the valuable contributions of our highly professional staff in making California Community Bank an outstanding organization committed to providing our customers with aReal Solutions. Personally Delivered.a™a

California Community Bank is headquartered at 1320 West Valley Parkway in Escondido and currently operates four branches a" Escondido, Encinitas, San Diego, and Vista, CA. For more information on the Bank, please visit [ www.calcommunitybank.com ] or call 760-888-1000.

The numbers in this press release are unaudited. Certain statements in this press release, including statements regarding the anticipated development and expansion of the 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, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation.