BUSINESS BANK of California reports 1996 earnings.SAN BERNARDINO San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. , Calif.--(BUSINESS WIRE)--Feb. 18, 1997--BUSINESS BANK of California The Bank of California was founded in San Francisco, California on July 5, 1864 by William Chapman Ralston. It was the first commercial bank in the Western United States, the second-richest bank in the nation, and considered instrumental in developing the American Old West. (BBNK) reported earnings for 1996 of $832,000, or 58 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with earnings of $1,198,000, or 87 cents per share at Dec. 31, 1995. Earnings for 1996 represent a return on average assets of 0.84 percent, and a return on shareholders' beginning equity of 6.7 percent. The slight drop in earnings for the year was not unexpected. The Bank's 1996 strategic plan placed a strong corporate focus on moving the Bank from a plateau that represented very controlled growth into a highly transitional phase, which would reposition the organization for expansion and accelerated growth. A management reorganization, a change in the Bank's name to more accurately reflect its strategic direction, the opening of a new branch and significant technological and product line enhancements highlighted the year and exceeded goals identified by management. Policies implemented by a new executive team called for an aggressive review of internal procedures, which resulted in an increase in the provision for loan losses of $441,000 over the prior year period. Amounts allocated to loan-loss reserve were the result of net charge-offs of $1,015,000, which represent an increase of $476,000 over 1995 and are reflected in the net income for 1996. As a result of these actions, the Bank's delinquencies at Dec. 31, reached historical lows. "The reallocation of resources The provision of logistic resources by the military forces of one nation from those deemed "made available" under the terms incorporated in appropriate NATO documents, to the military forces of another nation or nations as directed by the appropriate military authority. necessary to support the Bank's business strategy impacted profitability for the year," said Frank J. Mercardante, president/chief executive officer. "At the same time the Bank is clearly positioned to move into 1997 with a strong, competitive stance and is poised to develop an increasing presence within the Inland Empire In·land Empire A region of the northwest United States between the Cascade Range and the Rocky Mountains, comprising eastern Washington, eastern Oregon, northern Idaho, and western Montana. Farming, lumbering, and mining are important to the area. ." The Bank's Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. to asset ratio, a measure of a Bank's financial strength, rose to 12.9 percent at year end. This figure represents continued strengthening of the Bank's capital position over the previous year's reported ratio of 12.2 percent and reflects the strong capital position the Bank has held since its initial capitalization in 1984. Regulatory minimums require a Tier 1 capital ratio of 8.00 percent for a "Well Capitalized" classification. With four branches located in the cities of San Bernardino, Redlands and Corona, BUSINESS BANK of California has served the Inland Empire since 1984. The Bank is strongly focused on meeting the needs of small to mid-size clients, in the professional and business communities with a full range of financing and depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. alternatives. The Bank has consistently received top ratings from all financial performance rating agencies. CONTACT: BUSINESS BANK of California, San Bernardino Frank Mercardante (president/CEO) Alan Lane (CFO See Chief Financial Officer. ) 909/888-2265 |
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