California Center Bank Reports First Quarter Profit of 33 Cents Per Share.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--May 12, 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 announced today the results for the first quarter of 1999. Comparing March 31, 1999 with Dec. 31, 1998, total assets increased $16.9 million to $288.1 million; loans, net of deferred loan fees, grew 22% to $162.7 million. The loan growth during the first quarter has been substantial and would be sustainable into the second quarter. Commercial loans and commercial real estate loans increased $16.5 million and $12.6 million, respectively; investment securities (including available-for-sale and held-to-maturity) decreased $4.5 million to $76.1 million; deposits increased $14.3 million to $251.1 million; and 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. increased $674,000 to $31.2 million. Total non-performing assets, which include loans past due 90 days or more and still accruing interest, non-accrual loans and OREO decreased substantially from $3.0 million at 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. 1998 to $1.7 million at March 31, 1999. The substantial improvement was primarily due to a reduction of $1.3 million in non-accrual loans. As a percentage of total loans plus OREO, non-performing assets decreased remarkably from 2.22% at year-end 1998 to 1.04% at March 31, 1999. It is noted that the quality of loan portfolio shows a continuing improvement during the first quarter and would continue this year. In view of the increasing outstanding loan balance, the bank provided $320,000 more for loan losses to $642,000 in the first quarter of 1999 compared with $262,000 in the first quarter of 1998. The balance of the allowance for loan losses was brought to $5.6 million compared with $4.9 million at year-end 1998. Total loans charged off in the first quarter of 1999 were $158,000 compared with $287,000 in the prior-year quarter. The coverage ratio (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 from 181.9% at year-end 1998 to 406.2% at March 31, 1999. 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 20.95%, 19.67% and 11.34%, 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 which is defined as institutions with total risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. equal to or greater than 10%; Tier 1 risk-based capital ratio equal to or greater than 6%; and Tier 1 leverage capital ratio equal to or greater than 5%. The bank also reported net income of $791,000 for the first quarter of 1999 showing a decrease of $467,000, compared with $1,258,000 for the same quarter of 1998. The decrease was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a $921,000 growth in non-interest expense. In the first quarter of 1999, total interest income increased $216,000 or 5% to $4.8 million which was driven by a 7% increase in average gross loans from $135.6 million for the first quarter of 1998 to $144.9 million in 1999 and an 18% increase in average investment securities from $67.1 million to $79.5 million during the same period. Total interest expense increased $138,000 or 9% to $1.6 million. This was mainly due to an increase of $115,000 in interest on time deposits resulting from increases in average balances. Non-interest income showed a very small decrease of $14,000 to $1.8 million in the first quarter of 1999. However, the first quarter result of 1998 included gain on sale of OREO of $143,000 and settlement income of $162,000. When excluding such non-recurring items in 1998, this year's fee income figure is increased by $315,000, a 21% growth from core business due to increases in letter of credit fees by $188,000 and service charges by $141,000. Non-interest expense increased $921,000 in the first quarter of 1999 to $3.4 million. There were increases of $384,000 in salaries and employee benefits due to regular salary adjustment in January January: see month. ; $180,000 in professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. expense arising largely from legal fees and collection expenses; and $182,000 in other expenses related to consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" expense for Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 compliance and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. examination. Most of the increased expenditures in the first quarter are considered to be non-recurring items. Return on average assets for the first quarter of 1999 declined to 1.15% compared with 2.04% for the corresponding quarter in 1998 and return on average stockholders' equity was 10.22% compared with 17.98% for the prior-year quarter. 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 five 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, . The bank recently relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. its Garden Grove Garden Grove, city (1990 pop. 143,050), Orange co., S Calif., a suburb of Long Beach and Los Angeles, on the Santa Ana River; founded 1877, inc. 1956. Many of its residents work in nearby aerospace and defense installations, and there is light manufacturing. Branch to the new location on April 5, 1999 and made certain renovations at the Head Office building in the first quarter. 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. -0-
CALIFORNIA CENTER BANK
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share and per share data)
(Unaudited)
As of 3/31/99 12/31/98 % change
Assets
Cash and due from banks $ 19,335 $ 19,624 (1)
Federal funds sold and
securities purchased under
agreements to resell 22,000 30,000 (27)
Securities 76,105 80,629 (6)
Loans (net of allowance for
loan losses of $5,584 in
1999 and $4,943 in 1998) 156,403 128,523 22
Other real estate owned 311 250 24
Other assets 13,936 12,194 14
Total assets $ 288,090 $ 271,220 6
Liabilities and
Stockholders' Equity
Non-interest bearing deposits $ 93,029 $ 90,083 3
Interest bearing deposits 158,021 146,672 8
Total deposits 251,050 236,755 6
Other liabilities 5,800 3,899 49
Total liabilities 256,850 240,654 7
Stockholders' equity 31,240 30,566 2
Total liabilities and
stockholders' equity $ 288,090 $ 271,220 6
Book value per share $ 14.65 $ 14.33 2
Number of common shares
outstanding at period end 2,132,305 2,132,305
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollars in thousands, except share and per share data)
(Unaudited)
For the three months
ended March 31,
1999 1998 % change
Interest income $4,779 $4,563 5
Interest expense 1,609 1,471 9
Net interest income 3,170 3,092 3
Provision for loan losses 320 262 22
Net interest income after
provision for loan losses 2,850 2,830 1
Non-interest income 1,828 1,842 (1)
Non-interest expense 3,431 2,510 37
Income before income tax expense 1,247 2,162 (42)
Income tax expense 456 904 (50)
Net income $ 791 $1,258 (37)
Total other comprehensive income $ 674 $1,255 (46)
Net income per share, basic $ 0.37 $ 0.67 (45)
Net income per share, diluted $ 0.33 $ 0.63 (48)
CALIFORNIA CENTER BANK
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
As of 3/31/99 12/31/98 % change
Loans
Commercial $ 81,180 $ 64,668 26
Residential real estate 4,689 5,413 (13)
Commercial real estate 71,071 58,488 22
Real estate construction 0 0 0
Installment 4,187 4,070 3
Other 1,240 1,061 17
Total loans - gross 162,367 133,700 21
Allowance for loan losses (5,585) (4,943) 13
Unamortized deferred loan fees (379) (234) 62
Total loans - net $ 156,403 $ 128,523 22
Non-performing assets
Loans past due 90 days or more
and still accruing interest $ 0 $ 0 0
Non-accrual loans 1,375 2,718 (49)
Total non-performing loans 1,375 2,718 (49)
Other real estate owned 311 250 24
Total non-performing assets $ 1,686 $ 2,968 (43)
Deposits
Non-interest bearing $ 93,029 $ 90,083 3
Interest bearing checking 39,390 36,642 8
Savings 16,083 18,890 (15)
Time deposits 102,548 91,140 13
Total deposits $ 251,050 $ 236,755 6
Selected ratios
Non-accrual loans to total loans 0.85% 2.03% (58)
Non-performing assets to
total loans and OREO 1.04% 2.22% (53)
Allowance for loan losses to
total loans 3.44% 3.70% (7)
Allowance for loan losses to
non-performing loans 406.2% 181.9% 123
Tier 1 risk-based capital ratio 20.95% 23.73% (12)
Total risk-based capital ratio 19.67% 22.45% (12)
Tier 1 leverage ratio 11.34% 11.81% (4)
OTHER SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
For the three months
Ended March 31,
Selected ratios 1999 1998 % change
Return on average assets 1.15% 2.04% (44)
Return on average stockholders' equity 10.22% 17.98% (43)
Net interest margin
(non taxable equivalent) 5.05% 5.42% (7)
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