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California Community Bank Reports Solid Profitability and Improved Asset Quality

^{Published on 2011-10-26 13:36:32 - Market Wire}
 

ESCONDIDO, Calif.--([ BUSINESS WIRE ])--California Community Bank (OTCBB: CABK), today released its unaudited third quarter 2011 financial results.

For the third quarter of 2011, the Bank reported net income of $307,000, or basic earnings per share of 15 cents, versus net income of $528,000, or basic earnings per share of 26 cents, for the comparable period last year. Net income for the first nine months of the year was $688,000, or basic earnings per share of 33 cents, compared to net income of $1,126,000, or basic earnings per share of 54 cents, for the first nine months of 2010. The Bankas provision for income taxes amounted to $522,000 for the nine month period ending September 30, 2011, whereas the Bankas earnings were not fully taxable for the comparable period last year and as such, no provision was allocated. In terms of pre-tax income, the Bank reported $1,210,000 for the first nine months of 2011 versus $1,126,000 for the comparable period last year, a year-over-year increase of $84,000, or 7%, between the two periods.

The Bank finished the third quarter of 2011 with an asset base of $241,581,000, an increase of $14,744,000, or 6%, from the end of September 2010. Total deposits were $214,984,000, up $16,427,000, or 8%, over the same period a year ago. As of September 30, 2011, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at $153,484,000 compared to $158,517,000 at September 30, 2010, a decrease of $5,033,000, or 3%.

Larry D. Hartwig, CEO, commented, "Solid profitability and improved asset quality marked our highlights for the third quarter. These improved results stem from reducing funding costs and continued effective loan portfolio management. Cost control remains strong, however, the Bankas net interest margin remains under pressure and there is still a demonstrated lack of loan demand in the marketplace. The year-to-date story continues to reflect the overall economic environment with higher levels of profitability being moderated by excess liquidity, and there are few attractive investment alternatives in securities. While year-over-year loan outstandings declined, our efforts did allow us to experience moderate loan growth during the first nine months of 2011. We have confidence in the core strengths of our franchise and continue to aggressively manage loan quality with the expectation of economic growth obtaining greater traction in the future.a

Hartwig further commented, aCapital ratios remain very strong and we continue to seek quality loan originations to augment our conservatively underwritten loan portfolio. In this economy, we also know that loan growth must be driven by market share gains rather than by increased economic activity. It is also important to recognize the excellent contributions of our highly professional staff in making California Community Bank a premier bank committed to providing our customers with aReal Solutions. Personally Delivereda.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 Bankas 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 Bankas performance, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation.