California Center Bank Announces First Quarter Earnings of $2.1 Million.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--April 18, 2002 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). Center Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CLFC CLFC Creating Lasting Family Connections (New Hampshire) CLFC Clear Lake Fencing Club (Texas) ) today reported first quarter 2002 net income increased 6.2% to $2.1 million, or $0.31 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, compared with $2.0 million, or $0.32 per diluted share, for the quarter ended March 31, 2001. All per share results reflect the eleven percent stock dividend paid on March 15, 2002 to stockholders of record on March 1, 2002. California Center achieved double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. percentage growth in total assets, loans and deposits over the past 12 months. Assets grew 27.0%, net loans increased 26.3%, and deposits grew 27.9%. First quarter annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 1.48% and annualized 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 16.25%. In the like quarter of 2001, ROA was 1.80% and ROE was 18.54%. "The five new branches that opened last year are contributing to the growth and success of California Center," said Seon Hong n. 1. A mercantile establishment or factory for foreign trade in China, as formerly at Canton; a succession of offices connected by a common passage and used for business or storage. Kim Kim orphan wanders streets of India with lama. [Br. Lit.: Kim] See : Adventurousness , 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. . "Deposit gathering activity at the new branches continues to be very strong. With this additional branch network, the bank is in a good position to accelerate growth in core deposits and loans. Moreover, we expect these new branches will start contributing to net operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in the current year." "Our strategic presence and expansion in key Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known communities will provide a solid foundation in the long run to enhance shareholder value through dynamic growth and earnings power," continued Kim. "We believe our bank is strategically well positioned throughout the southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, Asian market to serve our customers well, while facilitating asset and profit growth." Total assets grew 27% to $604.3 million compared to $475.9 million at March 31, 2001. Deposits rose 28% to $538.7 million, and non-interest bearing deposit growth exceeded that of interest bearing deposits. At the end of the first quarter, California Center's non-interest bearing deposits comprised approximately 31% of total deposits, one of the highest levels in its community. Loans, net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. increased 25.4% to $407.5 million at March 31, 2002 compared to $324.9 million one year earlier. Loans, net of unearned income and allowance for loan losses, totaled $402.1 million at the end of the first quarter. Total equity grew 18.0% to $53.5 million from $45.3 million at March 31, 2001. 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. as a percentage of total loans decreased to 0.39% as of March 31, 2002 from 1.18% one year ago. In the first quarter, the bank added $100,000 to the allowance for loan losses and recorded a net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. of $183,000. The allowance for loan losses at March 31, 2002 was $5.4 million, or 1.3% of gross loans, compared to $6.6 million, or 2.0% of gross loans, one year earlier. The ratio of allowance for loan losses to non-performing loans increased to 341.8% at the end of the first quarter compared with 173.3% at March 31, 2001. "The current level of allowance for loan losses covers 3.4 times the non-performing loans. We are comfortable with the current level of allowance for loan losses," said James Hong This biographical article or section needs additional references for verification. Please help [ to improve this article] by adding additional sources. Unverifiable material about living persons must be removed immediately, especially if potentially libelous or harmful. , Chief Lending Officer. As California Center's deposit rates came in line with prevailing market rates, its net interest income improved. Net interest income increased 14.8% to $6.0 million for the quarter, as interest expense declined at a much greater rate than interest income. Interest expense decreased to $2.5 million in the first quarter of 2002 compared with $3.8 million in the same period last year. Net interest margin for the quarter was 4.49%, compared with 5.06% in the first quarter of 2001. "With interest rates stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and perhaps heading higher by the second half of the year, we expect net interest income growth to accelerate during the second half of 2002, as our balance sheet is asset sensitive," said Kim. Non-interest income grew 18.8% to $2.9 million in the first quarter due to higher service charges and fee income. In the first quarter of 2002, service charges and fees related to deposit accounts totaled $1.9 million, an increase of 20.0% compared with the same quarter in 2001. The increase in the number of transaction accounts, generated by the expanded branch network, contributed to this increase. Largely due to the five new branches opened in 2001, non-interest expense increased 26.6% to $5.3 million in the first quarter compared to $4.3 million in like quarter of 2001. A significant part of the increase was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to employee salaries and benefits and occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses, which increased by $522,000, or 19.8%, and $267,000, or 66.5%, respectively. Also adding to costs was the increased occupancy expense associated with the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of Corporate Headquarters, which moved to the financial district on Wilshire Boulevard Wilshire Boulevard is one of the principal east-west arterial roads in Los Angeles, California, United States. It was named for H. Gaylord Wilshire (1861-1927), an Ohio native who made and lost fortunes in real estate, farming, and gold mining. in the middle of 2001. In addition, the bank renovated its Olympic O·lym·pic adj. Of or relating to the Olympic Games. Olympic Adjective of the Olympic Games Adj. 1. Olympic - of or relating to the Olympic Games; "Olympic winners" 2. Branch, which now provides more convenient services to existing and potential small-business customers in the vicinity. As a result of the renovation, the Trade Finance Department, which is located in this branch is now able to provide direct access and added convenience to business customers. The bank's efficiency ratio for the first quarter of 2002 was 59.9% compared to 55.0% in the first quarter of 2001. California Center Bank is a community bank located in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , California. The bank was founded in March 1986 and offers a full-range A Full-range loudspeaker drive unit is defined as a driver which reproduces as much of the audible frequency range as possible, with high-fidelity, within the boundaries imposed by the physical limitations of the specific design. of financial services 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. . It specializes in commercial 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 loans and trade finance products for multi-ethnic Adj. 1. multi-ethnic - involving several ethnic groups multiethnic social - living together or enjoying life in communities or organized groups; "a human being is a social animal"; "mature social behavior" and small business customers. The bank now operates eleven branches throughout Southern California and three Loan Production Offices. The bank's mission is to maximize its return to shareholders by remaining a strong, independent, highly profitable, and growth-oriented provider of financial services distinguishing itself through its multi-ethnic focus, trade finance services, and high-touch, customized, and timely service. Further details about the Bank can be found at our web site, http://www.calcenterbank.com/. Forward Looking Statements The Bank wishes to take advantage of the "Safe-Harbor" 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 as to "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements in this release that are not historical facts. The bank's actual results may differ materially from those included in the 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. . For any question related to this report, please contact Y. H. Kim, SVP SVP S'il Vous Plaît (French: Please) SVP Senior Vice President SVP Schweizerische Volkspartei (Swiss People~s Party) SVP Society of Vertebrate Paleontology SVP Social Venture Partners SVP St Vincent de Paul & Controller at 213/251-2250.
CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(In thousands, except share and per share data)
3/31/02 12/31/01 3/31/01
Assets
Cash and due from banks 29,411 28,791 28,247
Federal funds sold 27,000 33,000 38,000
Money market fund 20,000 20,400 --
Securities available-for-sale 86,660 94,520 48,992
Securities held-to-maturity 14,924 14,926 23,389
Loans (Net of unearned income) 407,482 377,584 324,881
Allowance for loan losses (5,413) (5,540) (6,633)
--------- --------- ---------
Net loans 402,069 372,044 318,248
Fixed assets 8,945 8,921 7,031
Other assets 15,277 13,397 11,982
Other real estate owned -- 674 --
--------- --------- ---------
Total Assets 604,286 586,673 889
========= ========= =========
Liabilities and Stockholders' Equity
Non-interest bearing deposits 167,085 168,530 128,736
Interest Bearing deposits 371,661 356,840 292,489
--------- --------- ---------
Total deposits 538,746 525,370 421,225
Other liabilities 12,085 9,913 9,362
--------- --------- ---------
Total Liabilities 550,831 535,283 430,587
Stockholders' Equity 53,455 51,390 45,302
--------- --------- ---------
Total Liabilities &
stockholders' equity 604,286 586,673 475,889
========= ========= =========
Book value per share(a) $7.87 $ 7.01 $ 6.82
Number of common shares outstanding
at period end(a) 6,792,808 6,775,930 6,645,225
========= ========= =========
(a) Adjusted to reflect eleven percent stock dividend declared in
2002.
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
(In thousands, except share and per share data)
Quarter-ended Change
March 31,
2002 2001 Amount %
--------- --------- ------ -------
Interest income 8,479 9,039 -560 -6.2%
Interest expense 2,475 3,810 -1,335 -35.0%
--------- --------- ------ -------
Net interest income 6,004 5,229 775 14.8%
Provision for loan losses 100 100 0 0%
--------- --------- ------ -------
Net interest income after
Provision for loan losses 5,904 5,129 775 15.1%
Non-interest income
Int'l banking service fee 655 778 -123 -15.8%
Service fees 1,900 1,583 317 20.0%
Gain on sale of loans 361 93 268 288.2%
--------- --------- ------ -------
Non-interest income 2,916 2,454 462 18.8%
Non-interest expenses
Salaries and employee
benefits 3,157 2,635 522 19.8%
Occupancy and furniture and
fixture expenses 669 401 268 66.8%
Other non interest expenses 1,618 1,188 430 36.2%
--------- --------- ------ -------
Non-interest expenses 5,347 4,224 1,123 26.6%
--------- --------- ------ -------
Income before income tax 3,473 3,359 114 3.4%
Income taxes 1,332 1,342 -10 -0.8%
--------- --------- ------ -------
Net income 2,141 2,017 124 6.2%
========= ========= ====== =======
Other comprehensive income (1) -170 234 -404 -172.9%
Total comprehensive income 1,971 2,251 -280 -12.5%
========= ========= ====== =======
Income per share, basic (2) 0.32 0.33
Income per share, diluted (2) 0.31 0.32
Basic average common shares
Outstanding (2) 6,778,870 6,169,886
Diluted average common shares
Outstanding (2) 7,012,038 6,369,207
(1) Comprehensive income represents the unrealized gains (losses) on
securities available for sale and FMV of interest swap.
(2) Adjusted to reflect eleven percent stock dividend.
SELECTED FINANCIAL RATIOS (Unaudited)
Quarter Ended March 31,
2002 2001
----------------------
Return on Average Assets 1.48% 1.80%
Return on Average Equity 16.25% 18.54%
Net interest margin 4.49% 5.06%
Efficiency ratio 59.94% 54.98%
SELECTED FINANCIAL INFORMATION (Unaudited)
(In thousands)
3/31/02 3/31/01 Change
------- ------- ------
Loans
Real estate - construction 16,320 2,851 472.5%
Real estate - commercial 185,795 128,627 44.44%
Commercial 94,015 84,912 10.7%
Consumer 36,897 30,263 21.9%
Trade Finance 26,455 36,288 -27.1%
SBA 48,429 39,960 21.2%
Other 96 4,217 -97.7%
Total loans- Gross 408,007 327,118 24.7%
Un-amortized deferred loan fees (525) (505) 4.0%
Allowance or loan losses (5,413) (6,633) -18.4%
------- ------- ------
Total loans - net 402,069 319,980 25.7%
Deposits
Non-interest bearing 167,085 128,736 5.61%
Interest bearing checking 79,423 54,700 4.93%
Savings 32,861 23,480 11.70%
Time deposits 259,377 214,309 62.29%
------- ------- ------
Total deposits 538,746 421,225 28.77%
Non-performing assets
Loans past due 90 days or
more and still accruing interest 0 0 0.0%
Non-accrual loans 1,584 3,827 -58.6%
======= ======= ======
Total non-performing loans 1,584 3,827 -58.6%
Other real estate owned 0 0 0.0%
------- ------- ------
Total non-performing assets 1,584 3,827 -58.6%
Allowance for Loan Losses 2002 2001 Change
------- ------- ------
Balance as of January 1, 5,497 $6,633 -17.1%
Provision for Loan Losses 100 100 0.0%
Charge-offs (Net of Recoveries) (183) (100) 83.4%
======= ======= ======
Balance as of March 31, 5,413 $6,633 -18.4%
3/31/02 3/31/01 Change
------- ------- ------
Selected Ratios
Non-accrual loans to gross loans 0.39% 1.18% -67.10%
Non-performing assets to total
loans and OREO 0.39% 1.18% -67.10%
Allowance for loan losses
to gross loans 1.33% 2.04% -34.96%
Allowance for loan losses to
non-performing loans 341.8% 173.32% 97.21%
Total risk-based capital ratio 13.34% 14.20%
Tier 1 risk-based capital ratio 12.09% 12.95%
Tier 1 capital ratio 9.50% 9.91%
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