Business Bank of California Reports Record Earnings for 1999.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)--Jan. 27, 2000 Business Bancorp (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:BZBC) Thursday made the announcement that its subsidiary, 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. , achieved record earnings of $1,940,000 for the year ended Dec. 31, 1999. The bank's earnings exceeded the previous record set in 1998 of $1,857,000. Alan J. Lane, President and Chief Executive Officer made the announcement. Basic earnings per share were $0.99 for the year ended 1999, as compared with $0.97 per share in 1998. Net earnings for the quarter ended Dec. 31, 1999 were $537,000 or $0.27 a share. This reflects a 14% increase over earnings of $470,000 reported for the fourth quarter of 1998. The Bank ended 1999 with total assets of $225,364,000, a 24% increase over assets of $182,455,000 reported one year earlier. Surpassing $200 million in total assets &uot;places us in another league and engenders a tremendous sense of accomplishment,&uot; stated Lane. The Bank's total deposits ended the year at $186,808,000, a 14% increase over the 1998 year end. Loans reached an all time high of $116,383,000, an increase of 10% over the prior year-end. News of the Bank's strong financial performance followed an announcement made earlier this week that the Bank had become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the newly formed holding company, Business Bancorp. The reorganization became effective on Jan. 21, 2000 at 5:00 p.m. Pacific Standard time and represents the achievement of a strategic goal for the Bank. In commenting on the Bank's strong performance, Lane stated, &uot;Business Bank of California is moving steadily towards the realization of a carefully structured five-year business plan. Consistent growth in the areas of deposits and loans enhanced a successfully restructured investment portfolio, both contributing to the record earnings we've achieved.&uot; Lane added, &uot;To fully appreciate the Bank's performance, it should be noted that we embarked on two capital-intensive Capital-intensive Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive. ventures during 1999.&uot; Lane refers to the opening of the Bank's seventh branch office, a de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branch in the City of Ontario, and to their entry into a partnership in Financial Data Solutions Inc. (FDSI FDSI Fournisseur Désigné de Services Interubains ), a technology company serving the financial industry. He concluded, &uot;Both ventures represent significant long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. enhancement to the Bank's franchise, but initial investments and start-up Start-up The earliest stage of a new business venture. costs negatively impacted pre-tax earnings by over $500,000 in 1999. Add these start-up costs back into the equation, and a true picture of the Bank's performance emerges. We've had a banner year!&uot; Business Bank of California, a commercial banking institution, is a wholly owned subsidiary of Business Bancorp. The Bank 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 and operates branches in the cities of San Bernardino, 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. , Redlands, Hesperia, Phelan and Ontario. The organization's primary focus is on meeting the financial needs of small- to mid-size clients in the professional and business communities it serves. In addition, the company is committed to providing a wide range of services designed to meet the personal banking requirements of individuals in the communities it serves. Visit Business Bank of California on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.businessbank.com. Business Bancorp stock information is available utilizing the symbol (BZBC.OB).
Business Bancorp
Financial Highlights
12/31/99 12/31/98
(unaudited)
4th Quarter Net Income $ 537,000 $ 470,000
Net Income Year to Date $ 1,940,000 $ 1,857,000
Total Assets $ 225,364,000 $ 182,455,000
Total Deposits $ 186,808,000 $ 163,843,000
Total Loans $ 116,383,000 $ 105,904,000
Total Capital $ 18,682,000 $ 17,093,000
Loan Loss Reserve $ 1,242,000 $ 1,439,000
Non Performing Loans $ 484,000 $ 1,235,000
Other Real Estate Owned $ 1,036,000 $ 1,069,000
Total Non Performing Assets $ 1,520,000 $ 2,304,000
Non Perf Assets/Total Assets 0.7% 1.3%
Tier 1 Leverage Ratio (est.) 8.33% 8.32%
Regulatory Minimum 4.00% 4.00%
YTD Earnings Per Share:
Basic 0.99 0.97
Diluted 0.99 0.93
YTD Shares Outstanding:
Basic 1,960,513 1,923,599
Diluted 1,968,766 2,002,408
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