Business Bancorp Announces Earnings Growth of 15.1% During First Half of 2001.Business Editors 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)--July 26, 2001 Business Bancorp (Nasdaq:BZBC), the parent company of 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. (www.businessbank.com), today reported net income of $625,000 or $0.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter ended June June: see month. 30, 2001, compared with net earnings of $551,000 or $0.27 per share, for the three months ended June 30, 2000. Cash earnings of $730,000, which exclude the after tax impact of amortization of goodwill and identifiable intangibles, increased to $0.35 per diluted share for the quarter ended June 30, 2001 compared with $0.30 per diluted share for the three months ended June 30, 2000. For the six months ended June 30, 2001, Business Bancorp reported net earnings of $1.2 million or $0.60 per diluted share compared with net earnings of $1.1 million or $0.53 per share, for the six months ended June 30, 2000. Cash earnings of $1.4 million, or $0.70 per diluted share for the six months ended June 30, 2001, compared with $1.2 million or $0.58 per diluted share for the six months ended June 30, 2000. Alan A`lan´ n. 1. A wolfhound. J. Lane, President and Chief Executive Officer, stated: "We are very pleased with the bank's performance during the first half of this year. Net earnings growth was 15.1% when compared to the first half of 2000, and cash earnings grew by 23.4% for the same period!" This stellar performance mirrors a trend of record earnings spanning five consecutive quarters. Lane added, "The 275 basis point decline in market interest rates since January January: see month. 1, 2001 has negatively impacted the bank's net interest margin. Even accompanied by consistent growth in deposits and loans, further declines in market interest rates will impact us negatively, and may cause earnings growth to slow during the second half." Financial Highlights Net interest income was $4.1 million for the quarter ended June 30, 2001, compared with $3.3 million for the same quarter last year. An increase of 34.4% in interest-earning assets to $302 million, as compared with June 30, 2000, contributed to the growth in net interest income. Total assets increased 33.1% to $340 million, compared with total footings of $255.4 million one year earlier. Loans increased to $183.1 million, reflecting an increase of 36.3% over the total reported as of June 30, 2000. Total deposits as of June 30, 2001 stood at $282.1 million representing an increase of 46.5% over deposits of $192.6 million reported as of June 30, 2000. Asset Quality The allowance for loan losses was $2 million for the period ended June 30, 2001, compared with $1.2 million at June 30, 2000. The June 30, 2001 allowance for loan losses as a percent of total non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. was 105.4%. Non-performing assets as a percent of total assets was 0.64% at June 30, 2001, compared with 0.31% for the year earlier period. The increase in non-performing assets is due primarily to one real estate loan that was placed on nonaccrual during the second quarter. This loan is secured by a 1st trust deed A legal document that evidences an agreement of a borrower to transfer legal title to real property to an impartial third party, a trustee, for the benefit of a lender, as security for the borrower's debt. on a commercial real estate building. Business Bancorp is a bank holding company that owns 100% of the capital stock of Business Bank of California (the "bank"), the company's principal operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . The bank is a California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). state chartered commercial bank whose primary business includes retail banking, commercial, construction, and SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government lending activities. Business Bank of California has served 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. since 1984. The bank operates eight branches in the cities of 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. , Hemet Hemet (hĕm`ĭt), city (1990 pop. 36,094), Riverside co., S Calif., in the San Jacinto valley; inc. 1910. Hemet and the surrounding area saw extensive growth in the 1970s and 80s, due to increased local agribusiness and the development of the , Hesperia Hesperia may refer to:
Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Phelan Phelan may refer to:
tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. services to small businesses, professionals and consumers. Information regarding Business Bancorp stock can be obtained on Nasdaq's Small Cap Market utilizing the symbol (BZBC). Forward-Looking Comments The statements contained in this release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on management's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. For information on the company or to obtain the company's quarterly financial supplement, e-mail your request to travis@businessbank.com or call Travis E. Kawelmacher, Vice President -- Controller at 909/381-7116. Include your phone, facsimile and mailing address.
Business Bancorp and Subsidiaries
Financial Highlights At/For Three Months Ended:
(Unaudited)
(Dollars in Thousands, Except Per Share Data)
Condensed
Income
Statements June 30, March 31, Dec. 31, Sept. 30, June 30,
2001 2001 2000 2000 2000
Interest Income $ 6,296 $ 6,375 $6,370 $5,547 $5,011
Interest Expense 2,222 2,294 2,093 1,938 1,678
Net Interest
Income 4,074 4,081 4,277 3,609 3,333
Provision for
Loan Losses 100 75 125 50 55
Net Interest
Income After
Provision for
Loan Losses 3,974 4,006 4,152 3,559 3,278
Non-Interest
Income 888 846 801 693 604
Amortization of
Goodwill/
Identifiable
Intangibles 163 164 165 100 68
Other Non-Interest
Expense 3,726 3,727 3,826 3,259 3,070
Income Before
Income Taxes 973 961 962 893 744
Income Taxes 348 345 350 312 193
Net Income $ 625 $ 616 $ 612 $ 581 $ 551
Cash Earnings(A) $ 730 $ 721 $ 717 $ 646 $ 601
Common Share Data
Net Income
-- Basic $0.31 $0.30 $0.31 $0.29 $0.28
Net Income
-- Diluted $0.30 $0.30 $0.30 $0.29 $0.27
Cash Earnings (A)
-- Basic $0.36 $0.36 $0.36 $0.33 $0.30
Cash Earnings (A)
-- Diluted $0.35 $0.35 $0.36 $0.32 $0.30
Book Value at
Quarter End $12.55 $12.22 $11.64 $10.65 $10.07
Weighted Average Shares Outstanding (000s)
Basic 2,027 2,027 1,996 1,985 1,977
Diluted 2,072 2,060 2,015 2,012 2,019
Shares Outstanding
at Period End 2,027 2,027 2,027 2,027 1,986
(A) Net income before amortization of goodwill and identifiable
intangibles, net of taxes.
Business Bancorp and Subsidiaries
Financial Highlights At/For Three Months Ended:
(Unaudited)
(Dollars in Thousands)
June 30, March 31, Dec. 31, Sept. 30, June 30,
2001 2001 2000 2000 2000
Balances:
Total Assets $340,037 $335,004 $311,144 $318,316 $255,443
Gross Loans 183,108 185,929 180,368 177,980 134,251
Securities 115,924 106,912 93,341 92,320 90,488
Interest Earning
Assets 301,973 296,118 273,532 274,664 224,748
Deposits 282,138 277,555 264,566 264,426 192,554
Shareholders'
Equity 25,430 24,763 23,596 21,578 19,987
Allowance for
Loan Losses 1,973 1,910 1,843 1,843 1,234
YTD Net Charge-Offs 45 8 119 118 88
Non Performing
Assets
Nonaccrual Loans $ 1,872 $ 999 $ 999 $ 805 $ 255
Other Real
Estate Owned 313 500 505 558 528
Total Non
Performing
Assets $ 2,185 $ 1,499 $ 1,504 $ 1,363 $ 783
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