Capital Corp of the West Announces a 31% Increase in Annual Earnings and Fourth Quarter Earnings for 2000.Business Editors 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)--Jan. 24, 2001 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 31% 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 year ended December December: see month. 31, 2000, over the same 1999 period. Consolidated earnings were $6,706,000 or $1.44 per share for the year. This compares to earnings of $5,109,000 or $1.09 per share for 1999. Cash earnings per share, defined as earnings before amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , for the 2000 and comparable 1999 year were $1.61 and $1.26. 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 1.09% and 14.33% for the 2000 year compared with .99% and 11.86% for 1999. Net earnings results for the three month period ended December 31, 2000, were $1,746,000 or $.37 per share. This compares to earnings of $1,457,000 or $.32 per share for the three month period ended December 31, 1999. Cash earnings per share were $.42 and $.36 for these two comparable quarters. Annualized return on average assets and return on average equity were 1.07% and 13.68% for the three month period ended December 31, 2000, compared with 1.05% and 13.52% for the three month period ended December 31, 1999. Fourth quarter 2000 results include a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. after tax loss on sale of securities of $142,000. "2000 has been the second year in a row that Capital Corp of the West exceeded analysts estimates and our own internal expectations," states 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. "The year has been one of growth and expansion of customer service capabilities while achieving significantly improved results," continued Mr. Hawker. "For the fourth quarter, after consideration of the one-time security loss, our efficiency ratio fell below 60%," stated 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. , CFO See Chief Financial Officer. of the Company. "For the year we have held expenses to only an 11% growth rate while improving bottom line expectations 31%," continued Mr. McKinney. The full year 2000 earnings showed a $1,597,000 increase over the comparable 1999 earnings due primarily to a $4,799,000 improvement in net interest income. The increase in net interest income was driven by a $95,675,000 or 21% increase in average interest 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 . Other expenses increased by $2,236,000 due primarily to increases in salaries and benefits of $1,367,000 that were the result of management and support staff increases necessary to accommodate branch expansion and normal salary progression progression, in mathematics, sequence of quantities, called terms, in which the relationship between consecutive terms is the same. An arithmetic progression is a sequence in which each term is derived from the preceding one by adding a given number, d, . Earnings for the fourth quarter of 2000 showed an increase of $289,000 to $1,746,000 which compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the $1,457,000 achieved during 1999. The increase in year over year results was primarily due to an increase of $1,298,000 in net interest income that was achieved by an increase of $109,419,000 in average interest earning assets. The net interest margin for the fourth quarter of 2000 was 5.48%, a decrease of 16 basis points from the 5.64% achieved during the fourth quarter of 1999. Other expenses in 2000 increased $788,000 over 1999 levels due primarily to increases in salaries and benefits of $340,000 that were the result of management and support staff increases necessary to accommodate branch expansion and normal salary progression. The Company's allowance for loan losses stood at $8,207,000 or 1.99% of total loans as of December 31, 2000. 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 $2,858,000 or 0.42% of total assets and nonperforming loans stood at $2,340,000 or 0.57% of total loans. The allowance for loan loss totaled 350.66% of nonperforming loans. This compares with an allowance for loan loss of $6,542,000 or 1.97% of total loans as of December 31, 1999. As of December 31, 1999, nonperforming assets totaled $2,237,000 or 0.40% of total assets, nonperforming loans totaled $1,990,000 or 0.60% of total loans and the allowance for loan loss totaled 328.74% of nonperforming loans. The Company's capital at December 31, 2000, stood at $53,451,000 compared with $43,677,000 as of December 31, 2000. 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 $11.74 and $10.80 as of December 31, 2000. The Company's tangible leverage capital ratio stood at 7.56% at December 31, 2000, compared with 7.50% as of December 31, 1999. Capital Corp. of the West, a bank holding company established November November: see month. 1, 1995, is the parent company of County Bank, with more than 20 years of service as "Central California's Community Bank." Currently County Bank has sixteen branch offices serving the communities of 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. , Madera, Mariposa, Merced, Stanislaus, Tulare Tulare (təlâr`, t  lâr`ē), city (1990 pop. 33,249), Tulare co., S central Calif., in the San Joaquin valley; inc. 1888. 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. For further information about the Company's financial performance, contact Tom Hawker, president and chief executive officer at 209/725-2276, or R. Dale McKinney, chief financial officer, at 209/725-7435. In addition to historical information, this release includes certain forward-looking statements 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. 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
Consolidated Balance Sheets (unaudited)
At December 31, 2000 & 1999
(Dollars in thousands) 2000 1999
---- ----
Cash & noninterest-bearing deposits in
other banks $ 46,353 $ 41,582
Federal funds sold & time deposits in
other banks 1,515 9,490
Investment securities 191,052 147,368
Loans, gross 412,664 331,268
Less: allowance for loan losses (8,207) (6,542)
Loans, net 404,457 324,726
Premises and equipment, net 13,021 13,163
Intangible assets 4,277 5,069
Other assets 21,576 22,152
TOTAL ASSETS $ 682,251 $ 563,550
========= =========
Deposits:
Noninterest-bearing demand and NOW $ 192,102 $ 160,352
Savings 184,073 164,158
Time 225,323 170,391
Total deposits 601,498 494,901
Borrowed funds 22,427 20,814
Other liabilities 4,875 4,158
TOTAL LIABILITIES $ 628,800 $ 519,873
Shareholders' equity:
Common shares outstanding: 4,552,042 at
December 31, 2000 and 4,496,201 at
December 31, 1999 $ 35,918 35,593
Retained earnings 17,449 10,743
Accumulated other comprehensive income
(loss) 84 (2,659)
Total shareholders' equity 53,451 43,677
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 682,251 $ 563,550
========= =========
Capital Corp of the West
Consolidated Statements of Income
For the Three For the Twelve
Months Ending Months Ending
December 31, December 31,
2000 1999 2000 1999
Interest income $ 13,995 $ 10,874 $ 50,888 $ 39,361
Interest expense 5,831 4,008 20,768 14,040
Net interest income 8,164 6,866 30,120 25,321
Provision for loan losses 963 887 3,286 2,659
Other income 1,276 1,279 5,407 5,089
Other expenses 6,088 5,300 22,774 20,538
Income before income taxes 2,389 1,958 9,467 7,213
Provision for income taxes 643 501 2,761 2,104
NET INCOME $ 1,746 $ 1,457 $ 6,706 $ 5,109
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Capital Corp of the West
Selected Financial Data
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
12/31/00 12/31/99 12/31/00 12/31/99
Basic Earnings Per Share $ .38 $ .32 $ 1.48 $ 1.12
Diluted earning per share $ .37 $ .32 $ 1.44 $ 1.09
Annualized Return on:
Average Assets 1.07% 1.05% 1.09% .99%
Average Equity 13.68% 13.52% 14.33% 11.86%
Net Interest Margin 5.48% 5.64% 5.42% 5.51%
Net Charge-offs to
Average Loans 0.02% 0.11% 0.43% 0.29%
12/31/00 12/31/99
Book Value Per Share $ 11.74 $ 9.71
Tangible Book Value Per Share $ 10.80 $ 8.59
Leverage Capital Ratio 7.56% 7.50%
Nonperforming Loans
to Total Loans 0.57% 0.60%
Allowance for Loan
Losses to Total Loans 1.99% 1.97%
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