Commercial Bank of San Francisco Reports Third Quarter 1999 Earnings.SAN FRANCISCO--(BUSINESS WIRE)--Nov. 1, 1999-- Commercial Bank of San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden has reported net income for the third quarter of 1999 of $246,000 or $0.19 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , compared with $491,000 or $0.38 diluted earnings per share for the third quarter of 1998. Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) for the third quarter was $0.58 percent and return on equity (ROE) for the period was 6.34 percent. By comparison, ROA and ROE were 1.25 percent and 13.40 percent, respectively, in the third quarter of 1998. Third quarter earnings were negatively affected by a $200,000 reserve for severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. provided in connection with the Bank's recent staff reductions. During the third quarter, the Bank finalized its plan to restructure its management to better align company's operations with the Bank's two areas of primary focus, international banking and domestic banking, and to improve operating efficiency. In connection with the restructuring plan, the Bank reduced its head count by six employees. Net income for the first nine months ended September 30, 1999 was $694,000 or $0.53 diluted earnings per share compared to net income of $1,232,000 or $1.04 diluted earnings per share for the first nine months of 1998. The extraordinary expenses includes $600,000 additional loan loss provision and approximately $245,000 of costs associated with a special audit of the international banking group in the second quarter of 1999. For the first nine months of 1999, ROA and ROE were 0.54 percent and 5.95 percent, respectively. Compared with the same period in 1998, total assets increased by approximately 1 percent to $170 million, total deposits increased by approximately 1 percent to $152 million, and net loans increased by approximately 23 percent to $85 million. This is the result of tremendous efforts being focused on domestic banking. Commercial Bank of San Francisco is ready for the new century and beyond! The Bank also announced that its planning, testing and independent auditing for the millennium is complete. During this Y-2K-inspired process, the Bank revised the contingency plan A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the millennium date changes and disaster preparedness. The Bank is dependent upon other service providers such as the Federal Reserve Bank and data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a vendors, in combination with other banks, and has tested these service providers and devised remedial plans for service interruptions. We are particularly proud of providing information to our clients to help them enter the new century smoothly. For additional information, please contact us at: -0- -- Our website at www.cbsf.com -- Our branch at 333 Pine Street -- Our recorded messages on 415.627.0385 |
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