Capital Corp of the West Announces a 56% Increase in Second Quarter Fully Diluted EPS.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)--July 11, 2000 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 56% 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: EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the quarter ending June June: see month. 30, 2000 over the same 1999 Quarter. Consolidated earnings were $1,800,000 or $.39 per share for the quarter compared to earnings of $1,205,000 or $.25 per share for the same 1999 quarter. 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 second quarter was $1,998,000 or $.43 per share. 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 1.18% and 15.73% for the quarter compared with .97% and 10.96% for the comparable 1999 quarter. These second quarter results include a one time, after taxes gain of $225,000 or $.05 per share on the sale of a property written off in prior years. "Even without this one time gain, core earnings and earnings per share have now increased for six consecutive quarters," 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. "We have continued to increase core profitability while growing the company 23% or $116 million in assets over the last twelve months," continued Hawker. The second quarter 2000 earnings showed a $595,000 increase over those of the comparable 1999 quarter due primarily to a $1,150,000 improvement in net interest income. The increase in net interest income was driven by a $98,935,000 increase in average interest earning asset Earning asset An asset that generates income, e.g., income from rental property. growth. The net interest margin decreased to 5.38% for the three months ending June 30, 2000 which compares with 5.54% achieved during the same period in 1999. The increase in the provision for loan losses of $175,000 is due to increased growth within the loan portfolio. Other expenses increased $508,000 due primarily to increases in salaries and benefits of $311,000 that were the result of management and support staff increases necessary to accommodate company growth 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, . The Company's loan loss reserves stood at $6,925,000 or 1.88% of total loans as of June 30, 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 $1,852,000 or 0.30% of total assets and nonperforming loans stood at $1,605,000 or 0.44% of total loans. The loan loss reserve totaled 431.60% of nonperforming loans. This compares with loan loss reserves of $5,889,000 or 1.92% of total loans as of June 30, 1999. As of June 30, 1999, nonperforming assets totaled $3,075,000 or 0.60% of total assets, nonperforming loans totaled $2,874,000 or 0.94% of total loans and the loan loss reserves totaled 204.91% of nonperforming loans. The Company's capital at June 30, 2000 stood at $46,876,000 compared with $43,540,000 as of June 30, 1999. 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 $10.36 and $9.32 as of June 30, 2000. Both book value and tangible book value as of June 30, 2000 are being impacted negatively $.65 per share due to the required mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. accounting adjustment for securities classified, for accounting purposes, as "available for sale." The Company's tangible leverage capital ratio stood at 7.56% at June 30, 2000, compared with 8.03% as of June 30, 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 16 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. 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 June 30, 2000 & 1999
(Dollars in thousands)
2000 1999
Cash & noninterest-bearing deposits in
other banks $ 29,148 $ 23,329
Federal funds sold & time deposits in
other banks 17,230 8,475
Investment securities 177,521 139,636
Loans, gross 368,501 306,794
Less: allowance for loan losses (6,925) (5,889)
Loans, net 361,576 300,905
Premises and equipment, net 12,916 13,016
Intangible assets 4,673 5,465
Other assets 24,483 20,405
TOTAL ASSETS $ 627,547 $ 511,231
Deposits:
Noninterest-bearing demand and NOW $ 160,677 $ 140,240
Savings 187,431 179,611
Time 199,870 137,598
Total deposits 547,978 457,449
Borrowed funds 27,282 5,943
Other liabilities 5,411 4,299
TOTAL LIABILITIES $ 580,671 $ 467,691
Shareholders' equity:
Common shares outstanding: 4,525,982 at
06/30/00 and 4,596,105 at 06/30/99 $ 35,742 $ 37,025
Retained earnings 14,057 7,990
Accumulated other comprehensive (loss) income (2,923) (1,475)
Total shareholders' equity 46,876 43,540
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 627,547 $ 511,231
Capital Corp of the West
Consolidated Statements of Income
For the Three Months For the Six Months
Ending June 30 Ending June 30
30,
2000 1999 2000 1999
Interest income $12,361 $ 9,438 $23,594 $18,454
Interest expense 5,041 3,268 9,345 6,474
Net interest income 7,320 6,170 14,249 11,907
Provision for loan losses 768 593 1,531 1,100
Other income 1,644 1,224 2,791 2,603
Other expenses 5,655 5,147 10,798 9,943
Income before income taxes 2,541 1,654 4,711 3,467
Provision for income taxes 741 449 1,397 1,111
NET INCOME $ 1,800 $ 1,205 $ 3,314 $ 2,256
Capital Corp of the West
Selected Financial Data
Three Months Three Six Months Six Months
Ended Months Ended Ended Ended
06/30/00 06/30/99 06/30/00 06/30/99
Basic Earnings Per Share $ .40 $ .26 $ .73 $ .51
Diluted earning per share $ .39 $ .25 $ .71 $ .50
Annualized Return on:
Average Assets 1.18% 0.97% 1.14% .96%
Average Equity 15.73% 10.96% 14.75% 10.97%
Net Interest Margin 5.38% 5.54% 5.43% 5.39%
Net Charge-offs to
Average Loans 0.18% 0.03% 0.33% 0.00%
06/30/00 06/30/99
Book Value Per Share $ 10.36 $ 9.47
Tangible Book Value Per
Share $ 9.32 $ 8.28
Leverage Capital Ratio 7.56% 8.03%
Nonperforming Loans
to Total Loans 0.44% 0.92%
Allowance for Loan
Losses to Total Loans 1.88% 1.92%
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