Business Bank of Nevada Parent Company Announces Record 3rd Quarter Earnings, Up 172%, and Continued Strong Asset Growth and Credit Quality.Business Editors LAS VEGAS--(BUSINESS WIRE)--Oct. 15, 2002 Business Bank Corp., the parent company of Business Bank of Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BBNV BBNV Business Bank of Nevada ), today announced record net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. earnings for the third quarter of this year of $599,564 or $0.35 per share compared to $219,747 or $0.13 per share for the third quarter of last year. This represents a 172.84 percent increase in the company's net after-tax earnings for the third quarter year-over-year. The company also announced today record net after-tax earnings for the first nine months of this year of $1,274,139 or $0.74 per share ending Sept. 30, 2002, compared to $418,263 or $0.25 per share the first nine months of last year. This represents a 204.63 percent increase in the company's overall earnings through the first nine months of this year compared to the same period last year. "Our continued improving trends in profitability and strong growth in loans and deposits during a somewhat sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. speaks volumes about the quality of our personnel, the leadership of our board and strength of our market areas," said Business Bank President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John Guedry. "Despite the fact that our economy continues to struggle, we feel very positive about our future, both near and long term," Guedry said. The company's total assets as of Sept. 30, 2002 were $228.2 million compared to $184.1 million a year earlier, which represents a 23.95 percent increase. Gross loans were $144.2 million as of Sept. 30, 2002 compared to $119.1 million a year earlier, which reflects a 21.07 percent increase. The company's total deposits were $208.8 million as of the end of the third quarter 2002 compared to $167.2 million the previous year, representing a 24.88 percent increase. "Credit quality continues to be a real bright spot for the company," said Mark Phillips This article is about the former husband of Princess Anne, The Princess Royal. For other people named Mark Phillips, see Mark Phillips (disambiguation). Captain Mark Anthony Peter Phillips , executive vice president and chief credit officer for Business Bank. "The bank continues to source and board new loans consistent with its credit underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. criteria." Loans on nonaccrual as a percentage of the company's total assets improved to zero percent as of Sept. 30, 2002 compared to .27 percent as of Sept. 30, 2001. Total past dues greater than 90 days as a percentage of the company's total outstanding loans remained at zero percent at the end of the third quarter ending Sept. 30, 2002. The company's Book Value Per Share as of Sept. 30, 2002 was $10.41 compared to $9.46 as of Sept. 30, 2001. Earnings Per Share of Common Stock as of Sept. 30, 2002 was $0.74 compared to $0.25 the previous year. The company's Return on Average Assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 0.82 percent as of Sept. 30, 2002 compared to 0.30 percent a year earlier. Return on Average Equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) was 10.45 percent as of Sept. 30, 2002 compared to 3.73 percent 12 months earlier. Total capital for the company was $17.9 million at the end of third quarter this year compared to $15.7 million at the end of third quarter last year. The bank continues to improve its efficiency ratios by controlling its expenses and achieving greater economies of scale by increasing its market presence. The bank recently opened a new Loan Production Office (LPO LPO London Philharmonic Orchestra LPO Legal Process Outsourcing LPO Local Purchase Order LPO Louisiana Philharmonic Orchestra LPO Legal Process Offshoring LPO Leading Petty Officer LPO Loan Production Office LPO Lattice Preferred Orientation ) in South Lake Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. , signaling an interest in expanding its presence into other markets throughout the state. "We're we're Contraction of we are. we're we are currently looking at a number of different opportunities and market areas at both ends of the state, which could include more LPOs as well as both satellite and full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branch operations," Guedry said. About Business Bank Business Bank, with $228.2 million in total assets as of Sept. 30, 2002, is in its seventh year of operation and is one of the fastest-growing independent banks in Nevada. The Bank has four branch offices in the state, with three in the Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. area and one in Carson City Carson City, city (1990 pop. 40,443), state capital, W Nev., in the Eagle valley; inc. 1875. The city is a trade center for a mining and agricultural area. State government is the major employer, and tourism is economically important. . The Bank also has one Loan Production Office (LPO) in South Lake Tahoe. Business Bank is FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). Insured and is a member of the Federal Reserve Bank of San Francisco The Federal Reserve Bank of San Francisco is the federal bank for the twelfth district in the United States. The twelfth district is made up of nine western states—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—plus American Samoa, . Its stock is listed on the Over The Counter Bulletin Board (OTCBB) at ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors BBNV. Additional information about Business Bank is available at www.bbnv.com. Forward-Looking Statement 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. This press release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc operations, product features and benefits, market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and market strategies. Such statements are made based on management's beliefs as well as assumptions made by, and information currently available to management, pursuant to "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. While these statements reflect our best judgment, they are subject to risks and uncertainties that could cause a change in focus and direction.
BUSINESS BANK CORP.
Statements of Condition (Unaudited)
Sept. 30 2002 2001
Assets
Cash $ 10,902,529 $ 11,384,321
Investments 52,549,293 45,534,311
Federal funds sold 15,116,081 2,114,242
Loans, net
Commercial loans 22,848,577 17,986,052
Consumer loans 722,962 1,458,531
Real estate loans 88,787,020 71,956,122
Construction loans 12,769,857 12,835,265
SBA loans 17,996,043 14,418,048
Overdrafts & Non-Post 1,102,183 492,604
Gross loans 144,226,642 119,146,621
Deferred loan fees, net (393,044) (322,963)
Reserve for loan losses (1,917,923) (1,734,140)
Loans, net 141,915,675 117,089,518
Accrued interest receivable 845,022 797,183
Fixed assets 5,675,844 5,902,501
Deferred income taxes 493,566 643,545
Other real estate 388,484 487,815
Other assets 271,656 174,227
Total assets $228,158,150 $184,127,663
Liabilities and Stockholders' Equity
Liabilities:
Deposits
Demand deposits $ 58,933,679 $ 41,874,053
NOW deposits 11,731,796 8,781,054
Money market 84,593,096 67,565,981
Savings 2,883,932 3,088,414
Time deposits & IRAs 46,143,667 43,464,179
Official checks 4,510,538 2,409,095
Total deposits 208,796,709 167,182,777
Borrowed funds 132,350 -
Other liabilities 1,361,702 1,266,890
Total liabilities 210,290,761 168,449,667
Stockholders' Equity
Contributed capital
Common stock, $1.00 par value; authorized
6,000,000 shares: issued 1,724,865 and
1,664,853 shares, outstanding 1,716,803
and 1,656,791 shares in 2002 and 2001,
respectively 1,724,865 1,664,853
Additional paid-in capital 13,203,464 12,693,362
Treasury stock (68,527) (68,527)
Retained earnings (accumulated deficit) 2,665,922 1,085,424
Investment evaluation allowance 341,665 302,884
Total Stockholders' Equity 17,867,389 15,677,996
Total Liabilities and
Stockholders' Equity $228,158,150 $184,127,663
Statements of Income (Unaudited)
Nine Months Ended Sept. 30 2002 2001
Interest income
Interest on investment securities $ 1,228,604 $1,741,760
Federal funds sold 171,348 484,969
Interest and fees on loans 8,207,507 8,260,207
Total interest income 9,607,459 10,486,936
Interest expense
Interest on NOW and money market deposits 1,307,233 1,753,133
Interest on savings deposits 10,564 33,477
Interest on time deposits over $100,000 489,322 934,557
Interest on other time deposits 678,840 1,575,010
Interest on borrowed funds 10,813 42,053
Total interest expense 2,496,771 4,338,231
Net interest income before provision
for loan losses 7,110,688 6,148,705
Provision for loan losses (245,254) (323,013)
Net interest income after provision
for loan losses 6,865,433 5,825,692
Other income
Fees and service charges 758,372 506,606
Non-recurring - 7,500
Gain on sale of securities and assets 377,840 79,471
Other 9,819 33,906
Total other income 1,146,031 627,483
Other expenses
Salaries and benefits 3,136,603 2,848,494
Premises and fixed assets 951,052 935,338
Data processing cost 392,127 516,639
Office 251,759 297,861
Promotional 146,475 144,205
Non-recurring - 26,784
Other 1,192,659 1,042,891
Total other expenses 6,070,675 5,812,212
Income before provision for income taxes 1,940,790 640,963
Provision for income taxes (666,651) (222,700)
Net income $ 1,274,139 $ 418,263
Earnings Per Share of Common Stock $ 0.74 $ 0.25
Book Value Per Share of Common Stock $ 10.41 $ 9.46
Return on Average Assets 0.82% 0.30%
Return on Average Equity 10.45% 3.73%
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