Capital Corp of the West Announces 30% Increased Third Quarter Earnings.MERCED Merced (mərsĕd`), city (1990 pop. 56,216), seat of Merced co., central Calif.; inc. 1889. It is a growing city and a center for tourism and farm trade in a cotton, fruit, and dairy region. , Calif.--(BUSINESS WIRE)--Oct. 11, 1999-- Capital Corp of the West (the "Company"), (Nasdaq:CCOW CCOW Clinical Context Object Workgroup CCOW Channel Control Order Wire CCOW Control Channel Order Wire CCOW Contributing to Coalition Operations Worldwide CCOW Computer Care on Wheels (Brantford, Ontario, Canada) ), reported a 30% increase in consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings for the three-month period ending September September: see month. 30, 1999 over the same period a year ago. Consolidated earnings were $1,296,000 or $.28 basic earnings per share for the three-month period ended September 30, 1999. This compares to earnings of $994,000 or $.22 basic earnings per share for the three-month period ended September 30, 1998, and $1,205,000 or $.26 basic earnings per share for the prior three-month period ended June June: see month. 30, 1999. Consolidated earnings for the nine-month period ended September 30, 1999 were $3,652,000, a 36% increase over the $2,687,000 achieved during the same period a year ago. 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 and return on average equity were .99% and 11.92% for the three-month period ended September 30, 1999 compared with .85% and 9.27% for the three-month period ended September 30, 1998. "We are exceeding our own internal expectations and are obviously pleased by the results of our third quarter operations. Core earnings show significant improvements relative to a year ago and also show improvements for each quarter of this year," stated Tom Hawker, 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. of the Company. During the next quarter the Company plans to merge See mail merge and concatenate. the Town and Country Finance and Thrift thrift: see leadwort. Company, into the operations of County Bank. Combining both of these two wholly owned entities of the Corporation into one, will result in cost savings through improved operating efficiencies and provides an expanded service and product platform to our customer base. Third quarter 1999 earnings show an increase over those of the comparable quarter in 1998 due primarily to a $975,000 improvement in net interest income. The increase in net interest income was driven primarily by a $52,628,000 increase in average interest-earning asset growth. Other expenses increased by $444,000 due primarily to increases in salaries and benefits of $490,000 that were the result of management and support staff increases made in the normal course of operations. The increase of $244,000 in income taxes over 1998 was the result of increased pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. levels. The Company's loan loss reserves stood at $6,016,000 or 1.86% of total loans as of September 30, 1999. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. totaled $3,713,000 or .68% of total assets and nonperforming loans stood at $3,321,000 or 1.03% of total loans. The loan loss reserves totaled 181% of nonperforming loans. This compares with loan loss reserves of $4,545,000 or 1.75% of total loans as of September 30, 1998. As of September 30, 1998, nonperforming assets totaled $2,071,000 or .43% of total assets, nonperforming loans totaled $1,988,000 or .76% of total loans and the loan loss reserves totaled 229% of nonperforming loans. The Company's capital at September 30, 1999 stood at $42,666,000 compared with $43,461,000 as of September 30, 1998. Book value and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share totaled $9.52 and $8.34 as of September 30, 1999. The Company's tangible leverage capital ratio stood at 7.65% at September 30, 1999, compared with 8.15% as of September 30, 1998. In addition to historical information, this release includes certain forward looking statements regarding events and trends which may affect the Company's future results. Such statements are subject to risks and uncertainties that could cause the Company's actual results to differ materially. These factors include general risks inherent to commercial lending; risks related to asset quality; risks related to the Company's dependence on key personnel and its ability to manage existing and future growth; risks related to competition; risks posed pose 1 v. posed, pos·ing, pos·es v.intr. 1. To assume or hold a particular position or posture, as in sitting for a portrait. 2. To affect a particular mental attitude. by present and future government regulation and legislation; and risks resulting from federal monetary policy. Capital Corp of the West, a bank holding company established November November: see month. 1, 1995, is the parent company to two financial institutions: County Bank, with more than 20 years of service as "CENTRAL California's Community Bank" and Town & Country Finance & Thrift Company, an industrial loan company headquartered in Turlock Turlock (tûr`lŏk), city (1990 pop. 42,198), Stanislaus co., central Calif.; inc. 1908. It is the center of the Turlock irrigation district, which uses the waters of the Tuolumne River for a fertile farm area. serving the Central Valley for more than forty years. Currently, County Bank has thirteen branch offices serving the communities of Merced, Mariposa, Madera, Stanislaus and Tuolumne Tu·ol·um·ne A river, about 249 km (155 mi) long, of central California flowing generally westward to the San Joaquin River. counties. Town & Country has four branch offices located in Turlock, Modesto Modesto (mōdĕs`tō), city (1990 pop. 164,278), seat of Stanislaus co., central Calif., on the Tuolumne River, near the northern end of the San Joaquin valley; inc. 1884. , Visalia Visalia (vəsāl`yə), city (1990 pop. 75,636), seat of Tulare co., S central Calif., in the San Joaquin Valley; founded 1852, inc. 1874. Its economy is centered around agriculture (cotton, grapes, olives) and livestock. and Fresno Fresno (frĕz`nō), city (1990 pop. 354,202), seat of Fresno co., S central Calif.; inc. 1885. Settled in 1872 as a station on the Central Pacific RR, Fresno profited from irrigated farming as early as the 1880s. . For further information about the Company's financial performance, contact Tom Hawker, President & Chief Executive Officer, or R. Dale Dale , Sir Henry Hallett 1875-1968. British physiologist. He shared a 1936 Nobel Prize for work on the chemical transmission of nerve impulses, particularly for the isolation and study of acetylcholine (1914). McKinney McKinney, city (1990 pop. 21,283), seat of Collin co., N Tex.; inc. 1849. It is a shipping point for cotton, cattle, and grains. Manufacturing includes electronic equipment, leather and food products, marble items, and copper wire. Chief Financial Officer, at 209/725-7435. -0-
Capital Corp of the West
Consolidated Balance Sheets (unaudited)
At September 30, 1999 & 1998
(Dollars in thousands)
1999 1998
---- ----
Cash & noninterest-bearing
deposits in other banks $ 32,593 $ 21,774
Federal funds sold & time
deposits in other banks 9,501 31,300
Investment securities 150,951 136,939
Loans, net 317,350 255,569
Premises and equipment, net 12,899 13,574
Other assets 20,754 16,291
Intangible assets 5,267 6,060
--------- ---------
TOTAL ASSETS $ 549,315 $ 481,507
========= =========
Deposits:
Noninterest-bearing
demand and NOW $ 145,823 $ 125,319
Savings 173,999 167,552
Time 152,678 121,004
--------- ---------
Total deposits 472,500 413,875
Borrowed funds 30,330 21,377
Other liabilities 3,819 2,794
--------- ---------
TOTAL LIABILITIES $ 506,649 $ 438,046
--------- ---------
Shareholders' equity:
Common shares
outstanding: 4,483,483
at 09/30/99
and 4,606,602 at 09/30/98 $ 35,495 $ 37,138
Retained earnings 9,285 5,701
Accumulated other
comprehensive (loss) income (2,114) 622
--------- ---------
Total shareholders' equity 42,666 43,461
--------- ---------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $ 549,315 $ 481,507
========= =========
Capital Corp of the West
Consolidated Statements of Income
For the Three Months For the Nine Months
Ending Sept. 30, Ending Sept. 30,
1999 1998 1999 1998
---- ---- ---- ----
Interest income $10,106 $ 9,021 $28,487 $25,475
Interest expense 3,558 3,448 10,032 10,137
------- ------- ------- -------
Net interest income 6,548 5,573 18,455 15,338
Provision for
loan losses 672 700 1,772 1,690
Other income 1,207 1,220 3,810 3,667
Other expenses 5,295 4,851 15,238 13,552
------- ------- ------- -------
Income before
income taxes 1,788 1,242 5,255 3,763
Provision for
income taxes 492 248 1,603 1,076
------- ------- ------- -------
NET INCOME $ 1,296 $ 994 $ 3,652 $ 2,687
======= ======= ======= =======
BASIC EARNINGS
PER SHARE $ .28 $ .22 $ .80 $ .58
======= ======= ======= =======
Three Three Nine Nine
Capital Corp of the West Months Months Months Months
Selected Financial Data Ended Ended Ended Ended
09/30/99 09/30/98 09/30/99 09/30/98
Basic Earnings
Per Share $ .28 $ .22 $ .80 $ .58
Diluted earning
per share $ .28 $ .21 $ .77 $ .56
Annualized Return on:
Average Assets 0.99% 0.85% 0.97% 0.81%
Average Equity 11.92% 9.27% 11.18% 8.59%
Net Interest Margin 5.61% 5.33% 5.47% 5.22%
------------------- -------------------------------------
Net Charge-offs to
Average Loans 0.17% 0.16% 0.18% 0.26%
09/30/99 09/30/98
Book Value Per Share $ 9.52 $ 9.43
Tangible Book Value Per Share $ 8.34 $ 8.12
-------------------------------------------------
Leverage Capital Ratio 7.65 % 8.15 %
Nonperforming Loans
to Total Loans 1.03 % 0.76 %
Allowance for Loan
Losses to Total Loans 1.86 % 1.75 %
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