California Center Bank Announces First-Quarter Earnings of $2 Million.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--May 3, 2001 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 $2.0 million net income for the first-quarter 2001, which represents a $200,000, or a 6.2%, increase from net income for the first quarter of 2000. Net income 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. common share was $0.33, an increase of 5.3%, compared to $0.31 per share in the first quarter of 2000. All per share results reflect the two-for-one stock split paid on Feb. 8, 2001, and the 13% stock dividends paid on March 16, 2001, to stockholders of record on March 1, 2001. 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 was 1.8% and annualized return on average stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was 18.5% for the first quarter of 2001. The bank's total assets were $475.9 million as of March 31, 2001, an increase of 28.4%, or $105.3 million, over the prior year's assets of $370.6 million. Total deposits grew to $421.2 million from $327.1 million, an increase of 28.8%. Net loans as of March 31, 2001, rose 32.6% to $318.2 million from $240.1 million as of March 31, 2000. Allowance for loan losses was $6.6 million as of March 31, 2001, a slight increase of 2.3% from $6.5 million in 2000. Total equity grew to $45.3 million from $37.0 million for the same period, representing an increase of 22.4%. During the first quarter of 2001, the bank's net income after taxes was $2.0 million, a 6.2% improvement over $1.9 million in the same period of 2000. Net interest income increased slightly by $336,000, or 6.9%, to $5.2 million from the same period of the previous year, despite the Federal Reserve Board's interest rate cuts by 150 basis points during the first-quarter 2001. It has been a challenging quarter because the rate of prime-based loan portfolio was decreased immediately while the interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities were lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. in order to re-price to a lower rate. The interest margin for the quarter was 5.1%, compared to 6.1% for the same period last year. However, the bank could increase net income through an increase of non-interest income by 18.8% to $2.4 million during the first quarter of 2001 from $2.1 million during the same quarter in 2000, while the bank could control the increase of non-interest expenses at 14.9% to $4.2 million during the first quarter of 2001, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite opening a new branch. The accomplishment could be possible because of the continued "Smart Spending Program." Service charge income and fees and international banking service fees continue to make major contributions to the increase in non-interest income. For the first quarter of 2001, service charges related to deposit accounts was $1.6 million while international banking service fees amounted to $778,000, which combined are more than 96% of non-interest income. The bank's International Department continues to be the leading provider of trade finance services in the community and contributes a high level of recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. non-interest income to the bank. An increase of $548,000, or 14.9% in non-interest expenses compared to the same period of 2000, was attributable primarily to a $419,000, or 18.8%, increase in employee salaries and benefits due to annual salary increases and an increase in number of employees. This was in relation to the bank's branch expansion program, which commenced in the latter part of 2000. On the other hand, the bank can control other non-interest expense increases at the minimum level despite asset growth of 28.4%. The bank's efficiency ratio for the first quarter of 2001 was 55.0%, which was a slight improvement compared to 55.5% for the same quarter of 2000. The bank experienced continued asset growth during the first quarter of 2001: Total assets as of March 31, 2001, stand at $475.9 million, a $105.3 million, or 28.4%, increase from $370.6 million as of March 31, 2000. For the same period, 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. and the allowance for losses, increased by $78.2 million, or 32.6%, to $318.2 million; total deposits grew $94.1 million, or 28.8%, to $421.2 million from $327.1 million; and stockholders' equity increased by $8.3 million, or 22.4%, to $45.3 million. The proportion of non-interest-bearing deposits are still 30 percent of total deposits, which is one of the highest levels in its community. 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 chief executive officer, said: "The excellent earnings performance of the past and current years, coupled with quality improvement in the bank's overall operations, has made the expansion programs feasible and manageable." As part of its planned expansion, a loan production office was opened in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. during March 2001, primarily to serve the community's need for lending services to small businesses. The San Pedro Pedro. For Spanish and Portuguese rulers thus named, use Peter. Pedro in marrying former mistress of enemy. [Ger. Opera: d’Albert, Tief land, Westerman, 371–374] See : Innocence office at 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. Downtown Garment district The Garment District is a store in Cambridge, MA and is well known for its Dollar-A-Pound clothing store. The Garment District started out as an offshoot of Harbor Textiles, a textile company which produced wiping cloths for industry that began in the late 1940s. opened on April 2, 2001, which was an upgraded branch from the existing Santee Santee, river, United States Santee (săntē`), river, 143 mi (230 km) long, formed by the confluence of the Congaree and Wateree rivers, central S.C., and flowing SE to the Atlantic Ocean. The Santee-Wateree-Catawba system (c. extension office. The branch was upgraded for the purpose of providing more convenient services to the existing and potential small-business customers in the vicinity. The bank will open Wilshire Not to be confused with Wiltshire. Wilshire may refer to:
A city of southern California, a suburb of Los Angeles. Population: 52,600. and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. branches at a small to medium scale in its number of employees and office space during the second quarter of 2001 to strengthen its presence in the community and to expand geographic coverage. "With this additional branch network, we believe that the bank can increase core deposit bases and loan portfolio, from which the potential increase of net earnings will offset the increase of the associated expenses with branch expansion within less than a year. Strategic presence in the 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 community will eventually provide a solid foundation to enhance shareholders' value through dynamic growth and enhanced earnings power in the long run," said Kim. Non-performing assets (which include loans past due 90 days or more and still accruing interest, non-accrual loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most ), as a percentage of total loans plus other real estate owned, increased slightly to 1.2% as of March 31, 2001, from 0.9% for the same period in 2000. Non-accrual loans increased to $3.8 million from $2.1 million for the same period, primarily due to few credits transferred to non-accrual during the quarter. The bank provided $100,000 in 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 $100,000 during the first quarter of 2001, with an ending balance of the allowance for loan losses at $6.6 million, compared with $6.5 million as of March 31, 2000. As of March 31, 2001, the allowance for loan losses was 2.0% of total gross loans, which was a decrease from the same quarter of last year at 2.6%. The level of allowance for loan losses still covered almost two times the 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. , while allowance for loan losses to non-performing loans was decreased to 173.3% in March 2001 compared with 305.1% for March 2000. Dong Ik Lee, chief credit officer, said, "We are comfortable with the current level of allowance for loan losses." As of March 31, 2001, the bank's Total capital, Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. and Tier 1 leverage capital ratios were 14.2%, 13.0% and 9.9%, respectively. These capital levels place the bank in the "well-capitalized" category. California Center Bank is a community bank located in Los Angeles. The bank was founded in March 1986 and offers a full range 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 and small-business customers. The bank now operates seven branches throughout 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, 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 the Web site, www.calcenterbank.com. 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. The bank wishes to take advantage of the "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 as to "forward-looking" 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.
California Center Bank
CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(In thousands, except share and per share data)
As of
3/31/01 3/31/00 12/31/00
Assets
Cash and due from banks 28,247 22,282 28,832
Federal funds sold 38,000 27,000 19,200
Securities available-for-sale 48,992 32,639 46,341
Securities held-to-maturity 23,389 34,113 34,197
Loans (net of unearned income) 324,881 246,569 307,546
Allowance for loan losses (6,633) (6,484) (6,633)
Net loans 318,248 240,085 300,913
Other real estate owned 0 55 0
Fixed assets 7,031 6,144 6,548
Other assets 11,982 8,319 13,406
Total Assets 475,889 370,637 449,437
Liabilities and Stockholders' Equity
Non-interest-bearing deposits 128,736 121,899 124,635
Interest-bearing deposits 292,489 205,203 271,303
Total deposits 421,225 327,102 395,938
Other liabilities 9,362 6,519 10,590
Total Liabilities 430,587 333,621 406,528
Stockholders' Equity 45,302 37,016 42,909
Total Liabilities &
stockholders' equity 475,889 370,637 449,437
Book value per share (a) $ 7.57 $ 6.08 $ 7.20
Number of common shares
outstanding at period end (a) 5,986,689 6,087,793 5,960,145
(a) Adjusted to reflect two-for-one stock split and stock dividends.
California Center Bank
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
(In thousands, except share and per share data)
Quarter Ended Change
March 31,
2001 2000 Amount %
Interest income 9,039 7,176 1,863 25.96%
Interest expense 3,810 2,283 1,527 66.89%
Net interest income 5,229 4,893 336 6.87%
Provision for loan losses 100 200 (100) (50.00)%
Net interest income after
provision for loan losses 5,129 4,693 436 9.29%
Non-interest income 2,454 2,066 388 18.78%
Salaries and employee benefits 2,635 2,217 418 18.85%
Occupancy and furniture and
fixture expenses 401 348 53 15.23%
Other non-interest expenses 1,188 1,111 77 6.93%
Non-interest expenses 4,224 3,676 548 14.91%
Income before income tax 3,359 3,083 276 8.95%
Income taxes 1,342 1,183 159 13.44%
Net income 2,017 1,900 117 6.16%
Other comprehensive income (a) 234 (32) 266 831.25%
Total comprehensive income 2,251 1,868 383 20.50%
Income per share, basic (b) 0.34 0.31 0.03 8.22%
Income per share, diluted (b) 0.33 0.31 0.02 5.33%
Basic average common shares
outstanding (b) 5,970,017 6,086,155 (116,138) (1.91)%
Diluted average common shares
outstanding (b) 6,080,941 6,033,508 47,433 0.79%
(a) Comprehensive income represents the unrealized gains (losses) on
securities available for sale.
(b) Adjusted to reflect stock dividends.
California Center Bank
SELECTED FINANCIAL RATIOS (Unaudited)
Quarter Ended
March 31,
2001 2000
Return on Average Assets 1.80% 2.15%
Return on Average Equity 18.54% 21.08%
Net interest margin 5.06% 6.06%
Efficiency ratio 54.98% 52.82%
SELECTED FINANCIAL INFORMATION (Unaudited)
(In thousands)
As of 3/31/01 3/31/00 Change
Loans
Commercial 130,675 111,947 16.73%
Residential mortgage 4,109 3,795 8.27%
Commercial mortgage 158,691 115,645 37.22%
Real estate construction 2,851 -- --
Installment 26,754 15,482 72.81%
Other 2,306 95 2327.37%
Total loans - gross 325,386 246,964 31.75%
Unamortized deferred loan fees (505) (395) 27.85%
Allowance for loan losses (6,633) (6,484) 2.30%
Total loans - net 318,248 240,085 32.56%
Deposits
Non-interest bearing 128,736 121,899 5.61%
Interest-bearing checking 54,700 52,128 4.93%
Savings 23,480 21,021 11.70%
Time deposits 214,309 132,054 62.29%
Total deposits 421,225 327,102 28.77%
Non-performing assets
Loans past due 90 days or more and
still accruing interest 0 0
Non-accrual loans 3,827 2,070
Total non-performing loans 3,827 2,070
Other real estate owned -- 55
Total non-performing assets 3,827 2,125
Allowance for Loan Losses
Balance as of January 1, 2000 $ 6,633
Provision for Loan Losses 100
Charge-offs (net of recoveries) (100)
Balance as of March 31, 2001 $ 6,633
As of 3/31/01 3/31/00
Selected Ratios
Non-accrual loans to gross loans 1.18% 0.84%
Non-performing assets to total loans and OREO 1.18% 0.86%
Allowance for loan losses to gross loans 2.04% 2.63%
Allowance for loan losses to non-performing loans 173.32% 305.13%
Total risk-based capital ratio 14.20% 16.01%
Tier 1 risk-based capital ratio 12.95% 14.75%
Tier 1 capital ratio 9.91% 10.58%
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