Calnet Business Bank Reports Financial Results for the Quarter Ended March 31, 2002.Business Editors SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif.--(BUSINESS WIRE)--April 17, 2002 Today Calnet Business Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CLNB) announced results for the quarter ended March 31, 2002 noting that total assets climbing to $33 million -- a $16.1 million or 95 percent increase over total assets at Dec. 31, 2001. "We've we've Contraction of we have. we've have experienced an extraordinary amount of acceptance in the community since the day we opened our doors almost six months ago, and it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have lead to significant growth," said Peter Raffetto, the bank's 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. . "We are especially pleased with the very positive response to the bank's technology based services." Over the quarter the bank began working with its first major transaction business customer and utilizing the bank's automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. computer-to-computer service processed over 4,000 wire transfers for the month of March for this customer. Additionally during the quarter the bank started beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the its stored value debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. . Initial interest in the cards has been strong. The bank plans to roll out this product in the third quarter. Deposits at March 31, 2002 were $25.5 million, an increase of $16.9 million or 197.1 percent over total deposits at Dec. 31, 2001. Average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. for the quarter was 2.47 percent. Deposits were concentrated in the bank's money market product which the bank offered a very competitive interest rate to attract new depositors. The bank adjusted these rates to at or slightly above market, early in April, and anticipates that this will moderate the growth rate in deposits for the second quarter. The bank continued to focus significant attention on loan production. Loans outstanding at March 31, 2002 were $10.8 million net of an allowance for loan losses of $137,000. This represents an increase of $8.8 million for the quarter. As of March 31, 2002 the bank had outstanding conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. commitments to make loans of $4.1 million. Over the quarter the bank invested $7 million in securities of U.S. Government agencies with an average maturity of 26 months. Weighted average yield on these securities was 3.91 percent. As of March 31, 2002 the market value of the securities was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.9 million. Net loss for the quarter was $688,000, or $.70 per share. The loss from operations for the period was about 15 percent greater than had been originally anticipated. This was due to the deferral deferral - Waiting for quiet on the Ethernet. of service charges on customers' accounts, higher cost of funds and loan growth occurring later in the quarter than anticipated. All these factors are expected to be on track in the second quarter. Net interest income for the quarter was $80,000. Net interest income as a percentage of average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin for the quarter was 1.31 percent (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. ). This ratio will increase as the bank's resources are redeployed in higher interest earning assets. Most of the bank's available funds were invested for the period in federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold, which yielded 1.6 percent. The provision for loan losses was $113,000, which is 1.25 percent of the increase in loans for the quarter. The bank has no loans on non-accrual status and no loans are delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. . To reward charter customers, the bank is waiving service charges on demand deposit accounts through April 30, 2002. As a result, non-interest service charge income for the quarter has been nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. . The bank earned other non-interest income of $9,000 primarily for processing wire transfers for the quarter. Income from this source is expected to increase in the second quarter. Other expenses for the period were $664,000, including $365,000 in payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. expenses and depreciation of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of $70,000. Overall expenses were slightly lower than expected. The bank's Tier I Capital at the end of the quarter was $7.2 million. The bank's leverage capital ratio was 26.5 percent. The FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). requires the bank to maintain leverage capital in excess of 8 percent through the first three years of operations. Raffetto said, "Customers have continued their strong support of the bank and remain pleased with the high level of personal service they receive. Our first major transaction customer said they are very pleased with the technical capabilities that Calnet's system has brought to their banking relationship. Improved efficiencies are saving this customer significant costs." Raffetto said that, "We are very pleased with our performance for the first quarter of 2002 and look forward to further demonstrating the capabilities of Calnet's technology edge in the months ahead." Forward Looking Statement Disclosure Statements made in this release may constitute Forward Looking Statements within the meaning 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 and any such statements are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include those related to the economic environment, particularly in the region where Calnet Business Bank operates, competitive products and pricing, general interest rate changes and the fiscal and monetary policies of the U.S. Government, credit risk management, 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. actions, and other risks and uncertainties. About Calnet Business Bank Calnet Business Bank was formed by a group of highly respected banking professionals and business leaders with the highest standards for personal, high-quality customer service and advanced technology. They built the bank's infrastructure from the ground up with new technology that allows customers to integrate their financial systems with the bank for complete access and control over their accounts. We are the next step in banking. Powered by technology. Delivered by professionals. For more information please call 916/927-7000 or visit www.calnetbank.com.
CALNET BUSINESS BANK
FINANCIAL HIGHLIGHTS
(IN THOUSANDS)
(UNAUDITED)
CONDENSED BALANCE SHEET
3/31/2002 12/31/2001
ASSETS
Cash and due from banks $ 1,441 $ 567
Time deposits due from banks 300 300
Securities, at fair value 7,237 295
Federal funds sold 11,790 12,420
Loans (net of allowance for loan losses of
$137 at 3/31/2002 and $24 at 12/31/2001) 10,775 1,893
Premises and equipment (net of depreciation) 1,248 1,259
Other assets 217 147
-------- --------
TOTAL ASSETS $ 33,008 $ 16,881
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES
Deposits
Noninterest bearing $ 2,102 $ 984
Interest bearing 23,437 7,612
-------- --------
Total Deposits 25,539 8,596
Other borrowed funds 80 90
Other liabilities 180 239
-------- --------
TOTAL LIABILITIES $ 25,799 $ 8,925
SHAREHOLDERS' EQUITY
Common stock 9,491 9,491
Accumulated deficit (2,223) (1,535)
Unrealized loss on securities (59) 0
-------- --------
TOTAL SHAREHOLDERS' EQUITY $ 7,209 $ 7,956
-------- --------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 33,008 $ 16,881
======== ========
CONDENSED STATEMENT OF INCOME FOR THE QUARTER ENDED MARCH 31, 2002 AND
FOR THE PERIOD NOVEMBER 5 TO DECEMBER 31, 2001
Results of Operations
Quarter ended Period from 11/5/01
3/31/02 To 12/31/01
Net interest income $ 80 $ 23
Provision for possible loan losses 113 24
-------- --------
Net interest income after provision
for possible loan losses (33) (1)
Noninterest income 9 1
Noninterest expense 664 413
-------- --------
Loss before taxes (688) (413)
Provision for taxes 0 0
-------- --------
NET LOSS $ (688) $ (413)
======== ========
Earnings per Share:
basic and diluted $ (0.70) $ (0.42)
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion