BUSINESS BANK of California reports third quarter 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)--Oct. 29, 1996--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) on Tuesday Tuesday: see week. reported net income of $343,000, or 24 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. , for the third quarter of 1996. This compares with net income of $430,000, or 31 cents per share, for the third quarter of 1995. Net income for the third quarter of 1996 reflects an increase in the provision for loan losses of $156,000 over the prior year's quarter. For the nine months ended Sept. 30, 1996, the bank's net profit totaled $823,000, or 58 cents per share, compared with net income of $1,113,000, or 81 cents per share, for the nine months ended Sept. 30, 1995. Net income for the 1996 nine month period reflects an increase in the provision for loan losses of $559,000 over the prior year period. Return on average assets remains strong at 1.03 percent for the nine months ended Sept. 30, 1996. Total assets of the company grew to $100,308,000 as of Sept. 30, 1996, representing an increase of $1,856,000, or 1.89 percent, over Sept. 30, 1995. Total deposits rose to $85,679,000, a modest increase of $210,000, or 0.25 percent over the prior year's total deposits. Gross loans totaled $60,335,000, a slight decrease of $184,000 (0.30 percent) from the prior year. The bank's Tier 1 regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital continues to be among the highest in the industry. As of Sept. 30, 1996, 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. ratio was 12.92 percent, far exceeding the 8 percent minimum required for a "Well Capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " classification. "The third quarter of 1996, represented a very progressive period for the bank," said Frank J. Mercardante, president and chief executive officer. "The most significant event was a change of the bank's name from Bank of San Bernardino to BUSINESS BANK of California. The new name, which became effective Aug. 15, 1996, is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of a planned expansion of our geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. coverage, as well as a reaffirmation re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re of our commitment to the business communities 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. . "In addition to an array of innovative products being offered to the business community, the bank has recently introduced several extremely competitive products targeted specifically to the consumer market." Mercardante also reported that BUSINESS BANK of California opened the doors of its fourth branch office, located in the city of Redlands Redlands, city (1990 pop. 60,394), San Bernardino co., S Calif., in the San Bernardino Valley; inc. 1888. Industries include software research and development and the manufacture of metal foil, furniture, and electrical equipment. , during the third quarter. "The Redlands market represents a substantial opportunity for the bank," said Mercardante. "We've we've Contraction of we have. we've have targeted both businesses and individuals within the city for introduction to an expanded line of products, with benefits that exceed what are currently being offered by most local financial institutions." A comprehensive advertising campaign designed to introduce the name change, inform the public of a new line of products and services, and to promote the Redlands office was a key focus for the bank during the period. Expenses related to the increased provision for loan losses, new product development and marketing, and the opening of the Redlands office have impacted current period earnings. However, Mercardante stated, "We are confident that we are building an even stronger foundation for future growth and profitability." BUSINESS BANK of California is an independently owned, community bank serving the Inland Empire. The bank operates two offices in San Bernardino, an office in Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. and one in Redlands. Trading activity on outstanding shares of the bank's stock can be monitored using the stock symbol BBNK. -0-
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
ASSETS Sept. 30, 1996 Sept. 30, 1995
Cash & Due From Balances $ 11,507,000 $ 12,363,000
Investment Securities 11,422,000 11,594,000
Fed Funds Sold 12,425,000 9,375,000
Gross Loans 60,335,000 60,519,000
Loan & Lease Reserves (1,759,000) (1,357,000)
Net Loans 58,576,000 59,162,000
Net Fixed Assets 3,007,000 2,646,000
Other Real Estate Owned 1,042,000 1,161,000
Other Assets 2,329,000 2,151,000
Total Assets $100,308,000 $ 98,452,000
LIABILITIES
Demand Accounts $ 49,506,000 $ 49,296,000
Savings and Money Market 23,699,000 27,068,000
Time Deposits Less Than 100m 7,807,000 6,869,000
Time Deposits Greater Than
100m 4,667,000 2,236,000
Total Deposits 85,679,000 85,469,000
Other Liabilities 854,000 638,000
Total Liabilities $ 86,533,000 $ 86,107,000
CAPITAL
Common Stock $ 5,126,000 $ 4,597,000
Retained Earnings 8,656,000 7,748,000
Net Unrealized +/- Securities (7,000) 0
Total Capital 13,775,000 12,345,000
Total Liabilities &
Capital $100,308,000 $ 98,452,000
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STATEMENTS OF EARNINGS
(Unaudited)
3 Months 9 Months
Ended Sept. 30, Ended Sept. 30,
1996 1995 1996 1995
Interest Income $1,985,000 $2,083,000 $6,035,000 $6,191,000
Interest Expense 424,000 401,000 1,254,000 1,177,000
Net Interest
Income 1,561,000 1,682,000 4,781,000 5,014,000
Provision for Loan
Losses 242,000 86,000 757,000 198,000
Net Interest
Income After
Provision 1,319,000 1,596,000 4,024,000 4,816,000
Noninterest Income 860,000 322,000 1,596,000 997,000
Noninterest
Expense 1,623,000 1,093,000 4,395,000 3,792,000
Earnings Before
Income Taxes 556,000 825,000 1,225,000 2,021,000
Income Taxes 213,000 395,000 402,000 908,000
Net Earnings $ 343,000 $ 430,000 $ 823,000 $ 1,113,000
Earnings per share 0.24 0.31 0.58 0.81
Shares
Outstanding 1,459,793 1,374,871 1,459,793 1,374,871
CONTACT: BUSINESS BANK of California Frank J. Mercardante, President/CEO Alan A`lan´ n. 1. A wolfhound. Lane, CFO See Chief Financial Officer. 909/888-2265 |
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