COMSTOCK BANK EARNS $400,000 ($.22 PER SHARE) IN SECOND QUARTER; ASSETS INCREASE 41% TO $119 MILLION.RENO Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. , Nev.--(BUSINESS WIRE)--July 17, 1995--Comstock Bank Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :LODE lode, deposit of ore. ), today reported that assets increased 41%, net loans increased 80%, and deposits grew 40% over the second quarter of 1994, generating a 20% return on equity for the second quarter ended June June: see month. 30, 1995. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter (excluding gains on sale of assets and provision for loan losses) rose 83.0% from a year earlier. Comstock generated second quarter net income of $400,000 or $.22 per share (primary), compared to $255,000 or $.14 per share in the second quarter of 1994. For the six months ended June 30, 1995, net income was $620,000 or $.34 per share versus $538,000 or $.32 per share for the six months ended June 30, 1994. All per share figures have been adjusted to reflect the 10% stock dividend to holders of record on March 29, 1995 which was paid on April 12, 1995. On an operating basis, second quarter pre-tax income was 83% higher than a year ago, with net interest and fee income up 33%, and net interest margin, a basic measure of bank profitability, increasing to 4.85% from 4.31%. "These favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. from asset growth invested primarily in our loan portfolios. In addition, falling mortgage interest rates increased fee income from mortgage loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ," stated Robert Barone Robert Charles Barone is a fictional character from the American TV sitcom Everybody Loves Raymond. He is played by actor Brad Garrett. Though Robert is four years older than Ray, he constantly feels as if he's stuck in Ray's shadow, and lets his feelings be known. , chairman 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. . "In the second quarter 1994, our commercial loan portfolios were just starting to expand, while fee income from residential lending was declining with the rapid rise in interest rates. In comparison, in the second quarter of 1995, interest income from the loan portfolio was significantly higher while fee income from both commercial and residential loan originations increased." The net loan portfolio was $86.3 million or 80% higher than a year earlier, and assets rose 41% to $119.0 million. "The strong growth in commercial and construction loan originations gave rise to the growth in assets. Our loan deposit ratio was over 80% in June, up from 62% in June, 1994," Barone You may have meant:
"We have been able to support this growth with only moderate increases in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Total non-interest expense increased 19% for both the first quarter and the first half of 1995," Barone stated. In the second quarter, salaries and benefits (excluding bonus programs) rose by 11.7%, occupancy expense was up 14.4%, furniture, fixtures and equipment Furniture, fixtures and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building. FF&E are movable furniture, fixtures or other equipment that have no permanent connection to the structure of a building or utilities. (FF&E) expenses climbed 21% and other operating expenses grew 25.5%. "We believe modernizing our technologies is critical to our future success both on the lending side and in servicing our deposit customers. We expect continued high expense comparisons in FF&E and other operating expenses for the rest of 1995 as we carry out this modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, . Efficiencies from these improvements should be realized early in 1996 when the bank consolidates its operations in Reno into its new headquarters building now under construction. Occupancy is expected in the fourth quarter of 1995. Net interest income, a basic component of bank revenue, increased 56% to $1.23 million in the second quarter from $787,000 a year ago. When net loan fee income is included, as is the accounting convention in banking, net interest and fee income increased 33% to $2.25 million from $1.69 million. Unlike the first quarter, which saw a 19.9% drop in loan fee income due to reduced single family home loan originations, net fee income rose 13.3% in the second quarter. This occurred despite a 9% drop in loan originations. "Efforts in the lucrative government guaranteed marketplace are obviously paying off," Barone said. At June 30, 1995, Comstock's regulatory capital ratio was 7.5%, substantially above regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . The bank has been able to maintain this healthy ratio despite its rapid growth through a combination of retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. supplemented by small outside capital injections. Shareholder equity increased to $8.4 million or $4.59 per share at June 30, 1995, compared to $6.8 million or $3.97 per share a year ago. Comstock Bank operates two full service branches in Reno and 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. and lending centers in Reno, Minden/Gardnerville and 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. . Comstock ended the second quarter with $119.0 million in assets and $8.4 million of shareholder equity. On Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July 14, the bank's stock closed the trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. at $7.25 per share. -0- FINANCIAL HIGHLIGHTS (unaudited) ($ in thousands except per share)
Second Quarter Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Interest Income $ 3,207 $ 2,209 $ 5,901 $ 4,262 Interest Expense $ 948 $ 524 $ 1,798 $ 997 Provision for Loan Loss $ 60 $ 20 $ 90 $ 36 Net Interest Income After Provision for Loan Losses $ 2,199 $ 1,665 $ 4,014 $ 3,229 Non-interest Income $ 65 $ 83 $ 153 $ 223 Non-interest Expense $ 1,667 $ 1,399 $ 3,246 $ 2,738 Income Tax $ 197 $ 94 $ 301 $ 176 Net Income $ 400 $ 255 $ 620 $ 538 Primary Earnings Per Share $ .22 $ .14(1) $ .34 $ .32(1) Fully Diluted Earnings Per Share $ .21 $ .13 $ .33 $ .29 Weighted Average Shares Outstanding 1,821,691 1,714,648(1) 1,821,691 1,714,648(1) Fully Diluted Weighted Average Shares Outstanding 1,885,857 1,838,214(1) 1,885,857 1,838,214(1)
FINANCIAL HIGHLIGHTS
(continued)
June 30, 1995 Dec. 31, 1994 June 30, 1994
Total Assets $ 119,012 $ 103,275 $ 84,603 Loans Receivable, Net $ 86,271 $ 69,773 $ 47,994 Investment Securities $ 15,134 $ 15,882 $ 16,409 Deposits $ 107,903 $ 93,006 $ 77,276 Borrowings $ 2,000 $ 2,000 $ 0 Shareholders' Equity $ 8,379 $ 7,532 $ 6,814 Tangible Book Value Per Share $ 4.59 $ 4.13(1) $ 3.97(1) (1) Adjusted to reflect the 10% stock dividend to holders of record 3/29/95 and paid 4/12 95. ADDITIONAL FINANCIAL HIGHLIGHTS (ratios annualized) (unaudited) ($ in thousands except per share)
Second Quarter Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Return on Average Assets Before Changes in Accounting Principle 1.53% 1.23% 1.17% 1.33% Return on Average Equity 20.93% 15.67% 15.94% 16.61% Efficiency Ratio (Operating Expense/Revenue) 74.5% 76.8% 77.9% 79.3% Operating Expense/Assets 6.16% 6.64% 6.10% 6.48% Net Interest Margin 4.85% 4.31% 4.86% 4.78% Interest Earning Assets/Interest Bearing Liabilities 120.7% 123.5% 120.6% 123.1% Average Equity/Average Assets 7.40% 7.78% 7.37% 7.92% Tangible Capital Ratio 7.48% 8.21% LOANS: ($ in thousands) ALLOWANCE FOR LOAN LOSSES: June 30, 1995 June 30, 1994 Balance at Beginning of Quarter $ 460 $ 414 Provision for Loan Losses $ 60 $ 20 Charge Offs (Net of Recoveries) $ -0- $ 72 Balance at End of Quarter $ 520 $ 362 Loan Loss Allowance/Gross Loans 0.60% 0.75% Loan Loss Allowance/Non-performing Loans 53% 162.3% NON-PERFORMING ASSETS: June 30, 1995 June 30, 1994 Accruing Loans - 90 Days Past Due $ 796 $ -0- Non-accrual Loans $ 170 $ 223 Total Non-performing Loans $ 966 $ 223 REO $ -0- $ -0- Total Non-performing Assets $ 966 $ 223 Total Non-performing Assets/Total Assets .81% .26% CONTACT: COMSTOCK BANK Robert Barone, 702/828-6477 |
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