California Center Bank Reports 51 Percent Growth in Gross Loans and 41 Percent Growth in Earnings.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Oct. 27, 1999-- 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 announced record gross loan totals of $202.2 million, compared with $133.7 million from the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. of 1998 -- a 51 percent increase. This strong loan growth resulted in an increase in the Bank's loan to deposit ratio to 70.5 percent, vs. 56.4 percent at Dec. 31, 1998. The Bank's strong loan growth also contributed to year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. asset growth of 21 percent and was funded by a 21 percent increase in total deposits. For the third quarter of 1999, the Bank experienced 41 percent earnings growth with net income of $1.44 million, compared with $1.02 million for the same period of last year. Net earnings for the nine months of 1999 increased to $3.45 million. The Bank's net interest margin declined slightly from 5.44 percent to 5.19 percent between Sept. 30, 1998, and Sept. 30, 1999. The decline in the net interest margin was mostly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to changes in the prime rate in early 1999 and the effect of price competition within the Bank's primary market. With this strong balance sheet growth and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate trend in recent months, the Bank experienced solid advancements in net interest income and overall profitability. Through Sept. 30, 1999, the Bank reported healthy return on average assets and average equity of 1.55 percent and 14.41 percent, respectively. This earnings growth was largely attributable to a $1.3 million increase in net interest income associated with the added asset growth. The Bank also experienced strong growth in non-interest income, which grew $1.1 million or 22 percent over the same period of 1998. The Bank's efficiency ratio for the third quarter of this year was improved to 60.4 percent compared with 61.4 percent for the second quarter. For the nine months of this year the efficiency ratio was 63.2 percent. The Bank achieved this balance sheet and earnings growth while improving the quality of its credits. As of Sept. 30, 1999, total non-performing assets decreased 34 percent from the year-end of 1998 to $2.0 million. As a percentage of total loans and OREO, non-performing assets decreased from 2.22 percent at the year-end of 1998 to 0.97 percent at Sept. 30, 1999. The Bank's provision for loan losses was $654,000 on Sept. 30, 1999, compared with $640,000 for the same period in 1998. Despite strong reserve coverage, the additional provision this year was deemed appropriate in the light of the substantial increase of the Bank's loan portfolio. The balance of the allowance for loan losses was brought to $6.3 million or 3.12 percent of total loans as of Sept. 30, 1999. The ratio for allowance for loan losses to 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. increased to 453.0 percent compared with 181.9 percent at the year-end of 1998. 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 of 18.13 percent, 16.86 percent and 10.86 percent, respectively, placed the Bank in the "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " category. In commenting on the Bank's third-quarter results and recent events, President 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 noted that the "bank's management team and Board of Directors are pleased with the progress the bank's staff has made in attracting quality loans and new deposit relationships while enhancing operating efficiencies and earnings. "We are pleased with the recent lifting of Cease and Desist Order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. and look forward to providing our customers with quality products and services while delivering superior returns to our shareholders." 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 Center 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. . The Bank now operates 5 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, . California Center Bank's Web page is found at www.calcenterbank.com. 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. Some factors could affect the Bank's business and cause actual results to differ materially from those expressed in any 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. made in this release. If you have any questions on this report, contact Jason G. Lee, 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 & Cashier CASHIER. An officer of a moneyed institution, who is entitled by virtue of his office to take care of the cash or money of such institution. 2. The cashier of a bank is usually entrusted with all the funds of the bank, its notes, bills, and other choses in at 213/637-9510 for further information. -0-
CALIFORNIA CENTER BANK
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share and per share data)
(Unaudited)
As of 9/30/99 12/31/98 % change
Assets
Cash and due from banks $ 19,100 $ 19,624 (3)
Federal funds sold and
securities purchased under
agreements to resell 30,000 30,000 0
Securities 68,522 80,629 (15)
Loans (net of allowance for
loan losses of $6,319 in
1999 and $4,943 in 1998) 195,530 128,523 52
Other real estate owned 568 250 127
Other assets 15,221 12,194 25
Total assets $ 328,941 $ 271,220 21
Liabilities and
Stockholders' Equity
Non-interest bearing deposits $ 104,076 $ 90,083 16
Interest bearing deposits 182,935 146,672 25
Total deposits 287,011 236,755 21
Other liabilities 8,321 3,899 113
Total liabilities 295,332 240,654 23
Stockholders' equity 33,609 30,566 10
Total liabilities and
stockholders' equity $ 328,941 $ 271,220 21
Book value per share $ 14.07 $ 14.33 (2)
Number of common shares
outstanding at period end 2,388,106 2,132,305 12
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollars in thousands, except share and per share data)
(Unaudited)
For the nine months
ended Sept. 30, 1999 1998 % change
Interest income $15,680 $13,776 14
Interest expense 5,102 4,477 14
Net interest income 10,578 9,299 14
Provision for loan losses 654 640 2
Net interest income after
provision for loan losses 9,924 8,659 15
Non-interest income 6,235 5,105 22
Non-interest expense 10,623 8,450 26
Income before income tax expense 5,536 5,314 4
Income tax expense 2,088 1,962 6
Net income $ 3,448 3,352 3
Total other comprehensive income $ 3,044 3,341 (9)
Net income per share, basic $ 1.44 $ 1.57 (8)
Net income per share, diluted $ 1.40 $ 1.53 (9)
CALIFORNIA CENTER BANK
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
As of 9/30/99 12/31/98 % change
Loans
Commercial $ 98,298 $ 64,668 52
Residential real estate 3,208 5,413 (41)
Commercial real estate 88,195 58,488 51
Real estate construction 2,653 0
Installment 9,907 4,070 143
Other 22 1,061 (98)
Total loans - gross 202,283 133,700 51
Allowance for loan losses (6,319) (4,943) 28
Unamortized deferred
loan fees (434) (234) 85
Total loans - net $ 195,530 $ 128,523 52
Non-performing assets
Loans past due 90 days or more
and still accruing interest $ 9 $ 0 0
Non-accrual loans 1,395 2,718 (49)
Total non-performing loans 1,404 2,718 (48)
Other real estate owned 568 250 127
Total non-performing assets $ 1,972 $ 2,968 (34)
Deposits
Non-interest bearing $ 104,076 $ 90,083 16
Interest bearing checking 46,173 36,642 26
Savings 19,829 18,890 5
Time deposits 116,933 91,140 28
Total deposits $ 287,011 $ 236,755 21
Selected ratios
Non-accrual loans to
total loans 0.69% 2.03% (66)
Non-performing assets to
total loans and OREO 0.97% 2.22% (56)
Allowance for loan losses
to total loans 3.12% 3.70% (16)
Allowance for loan losses
to non-performing loans 453.0% 181.9% 149
Tier 1 risk-based capital ratio 18.13% 23.73% (24)
Total risk-based capital ratio 16.86% 22.45% (25)
Tier 1 leverage ratio 10.86% 11.81% (8)
OTHER SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
For the nine months
ended Sept. 30, 1999 1998 % change
Selected ratios
Return on average assets 1.55% 1.81% (14)
Return on average
stockholders' equity 14.41% 15.61% (8)
Net interest margin
(non taxable equivalent) 5.19% 5.44% (5)
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