California Community Bank Reports Third Quarter 2007 Results.
For the third quarter of 2007, the Bank reported a net profit of $13,000, or basic earnings per share of 1 cent, versus $246,000, or basic earnings per share of 12 cents, for the comparable period last year. Earnings for the first nine months of the year were $230,000, or basic earnings per share of 11 cents, compared to $568,000, or basic earnings per share of 27 cents, for the first nine months of 2006.
The Bank closed the third quarter of 2007 with an asset base of $136,909,000, an increase of $6,864,000, or 5%, from the third quarter of 2006. Total deposits were $112,574,000, up $5,193,000, or 5%, over the same period a year ago. As of September 30, 2007, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at an all time high of $111,081,000 compared to $81,649,000 at September 30, 2006, a significant increase of $29,432,000, or 36%.
"During the third quarter we capitalized on market opportunities and made investments that we believe significantly leverage the foundation for our long term growth," said Larry D. Hartwig, the Bank's President and CEO. "There are no surprises in this quarter's results. We consciously invested in relocating and expanding our Escondido branch location and recruited a team of three seasoned banking professionals for the Escondido market. That new team is well known locally and will accelerate the growth of our commercial business relationships in and around Escondido. Our Board and Management fully considered the short term impact of these decisions on our earnings and remain confident that we will benefit from these investments in the future."
Hartwig continued, "During the third quarter of 2007, we continued to achieve record loan growth with our loan portfolio surpassing the $110 million milestone. Equally important, driven by our disciplined approach toward building quality market share, we did not have a single delinquent or past due loan as of quarter end. However, despite a 9% increase in net interest income, after-tax earnings for the quarter were down 95% versus the comparable period last year -- principally due to the increase in non-interest expense driven by our recent strategic investment in the Escondido market as well as the December 2006 opening of our third full service de-novo branch. We recognize that there is a revenue lag when expanding a branch and bringing on new high performing bankers. Additionally, the Miramar branch is taking longer than anticipated to get fully up to speed. However, we believe that the Miramar Road corridor represents a key market opportunity and we continue to work hard to build it into a future profit contributor."
Hartwig further commented, "Thanks to great results by an outstanding staff, strong customer loyalty, and the support of our shareholders, we have recorded a very strong quarter of asset growth. We are pleased with the continued high levels of performance by our entire team and in particular the loan growth that has been achieved. Our relationship style of banking is well received in the marketplace and we continue to be strategically focused on building a high quality franchise. 'Real Solutions. Personally Delivered' -- remains our cornerstone for creating an exceptional community bank in San Diego's North County -- plus we remain very excited about the opportunities presented in today's community banking environment."
California Community Bank is headquartered at 1320 West Valley Parkway in Escondido and currently operates 3 branches -- Escondido, San Diego, and Vista, CA. For more information on the Bank, please visit www.calcommunitybank.com or call 760-888-1000.
The numbers in this press release are unaudited. Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation.
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|Article Type:||Financial report|
|Date:||Oct 23, 2007|
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