Community Bancorp 1st Qtr Earnings Increase 91% to $1.1 Million; Improved Margin and Efficiency Drive Improvement.Business Editors ESCONDIDO Escondido (ĕskəndē`dō), city (1990 pop. 108,635), San Diego co., S Calif.; inc. 1888. Located in a grain-, citrus-fruit-, and grape-growing valley, Escondido produces cereal products and has fruit-packing houses and one of the , Calif.--(BUSINESS WIRE)--April 29, 2003 Community Bancorp Inc. (Nasdaq: CMBC CMBC Coast Mountain Bus Company (Surrey, BC, Canada) CMBC Canadian Mennonite Bible College CMBC Camp Memorial Blood Center (US Army) CMBC Castle Morpeth Bridge Club (UK) ) today reported improved earnings that are the result of a significant increase in the net interest margin and improved efficiency ratio. For the quarter ended March 31, 2003, net income totaled $1,124,000, a 91% increase from $590,000 in the first quarter last year. Earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share totaled $0.30 for the quarter ended March 31, 2003, up from $0.17 per diluted share for the same quarter a year ago. Profitability ratios Profitability ratios Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. improved significantly for the quarter. Return on average equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) increased to 21.3% for the quarter compared to 13.7% in the first quarter last year. Return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 1.09% for the quarter compared to 0.64% a year ago. The efficiency ratio (operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. divided by the sum of net interest income before provision plus non-interest income) improved to 64.3% in the quarter from 74.0% in the first quarter 2002. The net interest margin increased to 4.79% for the first quarter compared to 4.05% for the same quarter a year ago. "We are pleased with our first quarter results," stated Tom Swanson, 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. . "In order to improve the efficiency ratio and the net interest margin, we have worked to significantly improve the liability side of the balance sheet. While the yield on 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 has declined 16 basis points to 6.61% in the first quarter compared to the same period last year, the cost of liabilities has declined 86 basis points to 1.84% in the first quarter. This focus on liability management has led to the 74 basis point increase in net interest margin." Loan production increased 21% for the quarter. In the first quarter of 2003, originations were $75.0 million compared to $62.2 million in the first quarter last year. "While loan production has continued to improve, asset quality has remained strong," stated Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Mills, CFO See Chief Financial Officer. . "Non-performing assets have declined from $5.5 million a year ago to $3.0 million as of the end of the quarter. Net of government guarantees, non-performing assets were only $703,000, or 0.17% of total assets, as of March 31, 2003 compared to $3.0 million, or 0.73%, as of March 31, 2002." Deposits were $363.5 million as of March 31, 2003 compared to $344.2 million as of March 31, 2002. Retail deposits increased 16% to $309.5 million compared to $267.8 million last year, while wholesale deposits decreased 29% to $54.0 million from $76.4 million a year ago. Non-interest bearing deposits have increased 38% to $56.8 million as of the end of the quarter compared to $41.1 million a year earlier. Net loans grew 7% to $351 million from $327 million a year ago, and total assets grew 4% to $425 million compared to $410 million at the end of the first quarter last year. The total reserve for loan losses was $4.3 million at March 31, 2003 compared to $3.0 million a year ago. The allowance for loan losses now represents 1.19% of gross loans, up from 0.92% a year ago. The allowance for loan losses, including reserves for losses on commitments to extend credit, now represents 1.25% of total gross loans compared to 1.00% a year ago. The provision for loan losses was $381,000 in the first quarter 2003 compared to $246,000 for the first quarter 2002. The increase in the provision and reserve levels is due to the growth in the loan portfolio combined with the uncertainties of the economy. Net interest income before the provision for loan losses increased 33% to $4.6 million for the quarter compared to $3.5 million in the first quarter last year, a result of increased interest earning assets and a lower 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. . Other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 34% to $1.8 million compared to $1.3 million a year earlier, largely due to increased gain on sale of loans. Operating expenses increased 16% to $4.1 million, compared to $3.6 million in the first quarter last year. Community National Bank is a subsidiary of Community Bancorp, a $425 million financial institution headquartered in Escondido, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . The bank's primary focus is community banking and commercial lending, with additional lending niches of SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government and aircraft lending. The bank serves northern San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. County and southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. County with retail banking offices in Fallbrook, Temecula, Escondido, Bonsall Bonsall is the name of several people and places, including:
www.comnb.com Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute 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. that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. government, and general economic conditions. Additional information on these and other factors that could affect financial results are included in its Securities and Exchange Commission filings. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statements contained herein to reflect future events or developments.
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(unaudited)(dollars in
thousands, except per
share data)
Quarterly Quarter Ended
Percentage March 31,
INTEREST INCOME Change 2003 2002
-------- ------- -------
Interest and
fees on loans $6,069 $5,596
Interest on cash
equivalents 26 58
Interest-earning
deposits with
banks 3 3
Interest on
trading
securities 58 --
US Treasury,
govt. agencies
& other
securities 259 191
------- -------
Total Interest
Income 10% 6,415 5,848
INTEREST EXPENSE
Deposits 1,486 2,008
Other borrowed
money 286 340
------- -------
Total Interest
Expense -25% 1,772 2,348
Net interest income 33% 4,643 3,500
Provision for loan
losses 55% 381 246
------- -------
Net Interest Income
After Provision for Loan
Losses 31% 4,262 3,254
OTHER OPERATING
INCOME
Net gain on sale
of loans 1,137 887
Loan servicing
fees, net 152 88
Customer service
charges 187 140
Other fee income 306 215
------- -------
Total Other
Operating Income 34% 1,782 1,330
OPERATING EXPENSES
Salaries and
employee
benefits 2,338 2,129
Occupancy 317 296
Telephone 60 71
Premises and
equipment 55 66
Data processing 160 170
Depreciation and
amortization of fixed
assets 210 158
Marketing and
promotions 56 54
Professional
services 317 181
Director,
officer and
employee
expenses 138 100
Office expenses 162 108
Other 319 242
------- -------
Total Other
Operating Expenses 16% 4,132 3,575
------- -------
Income before
income taxes 1,912 1,009
Income tax 788 419
------- -------
NET INCOME 91% $1,124 $590
======= =======
Comprehensive
income $1,127 $590
======= =======
Per Share Data(1)
Basic earnings
per common
share 88% $0.32 $0.17
======= =======
Earnings per
common share -
assuming
dilution 76% $0.30 $0.17
======= =======
(1) Per share data for 2002 has been adjusted for the 5% stock
dividend of November 2002.
CONSOLIDATED BALANCE SHEET Percentage March December March
Change 31, 31, 31,
(unaudited) (dollars in 2003 2002 2002
thousands) --------- --------- --------- ---------
ASSETS:
Cash and cash equivalents (including
restricted cash of $1,152 at Dec. 31,
2002) $21,060 $22,656 $43,139
Interest bearing deposits in
financial institutions 99 99 99
Investments
Trading securities, at fair
value 13,119 16,076 -
Held-to-maturity, at
amortized cost 18,487 20,770 24,176
Available-for-sale, at
estimated fair value 4,031 - -
Federal Reserve Bank &
Federal Home Loan Bank
stock, at cost 2,136 1,548 2,138
Loans held for investment 9% 310,969 290,537 286,319
Less allowance for loan
losses (4,266) (3,945) (3,039)
--------- --------- ---------
Net loans held for
investment 306,703 286,592 283,280
Loans held for sale 2% 44,388 52,879 43,566
Premises and equipment, net 4,050 4,179 4,118
Other repossessed assets - - 1,900
Accrued interest and other
assets 6,118 5,788 4,534
Income tax receivable - 309 -
Deferred tax asset, net 1,702 1,705 1,240
Servicing assets, net 2,751 2,617 1,583
Interest-only strips, at fair
value 536 480 389
--------- --------- ---------
Total assets 4% $425,180 $415,698 $410,162
========= ========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
Interest bearing 1% $306,730 $312,514 $303,145
Non-interest bearing 38% 56,753 51,438 41,080
--------- --------- ---------
Total deposits 6% 363,483 363,952 344,225
Trust Preferred Securities 10,000 10,000 10,000
Other borrowings 24,916 15,500 33,450
Reserve for losses on
commitments to extend credit 184 174 279
Income tax payable 479 - 468
Accrued expenses and other
liabilities 4,336 5,499 3,768
--------- --------- ---------
Total liabilities 3% 403,398 395,125 392,190
--------- --------- ---------
Shareholders' equity
Common stock, $ .625 par
value; authorized
10,000,000 shares,
issued and outstanding,
3,565,00 at March 31, 2003
; 3,542,000
at December 31, 2002; and
3,331,000 at March 31, 2002 2,228 2,214 2,081
Additional paid-in capital 10,802 10,734 9,363
Unrealized gains on available
for sale securities, net of
income taxes 3 - -
Retained earnings 8,749 7,625 6,528
--------- --------- ---------
Total shareholders'
equity 21% 21,782 20,573 17,972
--------- --------- ---------
Total liabilities and
shareholders' equity 4% $425,180 $415,698 $410,162
========= ========= =========
CONSOLIDATED FINANCIAL RATIOS Year
Ended
Quarter Ended December
March 31, 31,
2003 2002 2002
--------- --------- ---------
Annualized return on average assets 1.09% 0.64% 0.77%
Annualized return on average equity 21.35% 13.68% 16.00%
Efficiency ratio 64.31% 74.02% 70.25%
Annualized net interest margin 4.79% 4.05% 4.40%
Book value per share $6.11 $5.88(1) $5.81
NON-PERFORMING ASSETS March 31, Dec. 31,
2003 2002 2002
--------- --------- ---------
Non-accrual loans $3,012 $3,576 $2,254
Loans past due 90 days or more - - -
Restructured loans - - -
--------- --------- ---------
Total non-performing loans 3,012 3,576 2,254
OREO - - -
Other repossessed assets - 1,900 -
--------- --------- ---------
Total non-performing assets $3,012 $5,476 $2,254
========= ========= =========
Total non-performing loans/gross loans 0.84% 1.08% 0.65%
Total non-performing assets/total
assets 0.71% 1.34% 0.54%
Total non-performing loans net of
guarantees/gross loans 0.20% 0.33% 0.19%
Total non-performing assets net of
guarantees/total assets 0.17% 0.73% 0.16%
Year Ended
ALLOWANCE FOR LOAN LOSSES Quarter Ended December
December 31, 31,
2003 2002 2002
--------- --------- ---------
Balance at beginning of period $3,945 $2,788 $2,788
Provision for loan losses 381 246 1,561
Recovery of (provision for) reserve for
losses on commitments to extend
credit (10) 6 111
Charge offs (net of recoveries) (50) (1) (515)
--------- --------- ---------
Balance at end of period $4,266 $3,039 $3,945
========= ========= =========
Loan loss allowance/gross loans 1.19% 0.92% 1.14%
Loan loss allowance/non-performing
loans 141.6% 85.0% 175.0%
Loan loss allowance/total assets 1.00% 0.74% 0.95%
Loan loss allowance/non-performing
assets 141.6% 55.5% 175.0%
Loan loss allowance/non-performing
loans, net of guarantees 606.8% 277.3% 606.0%
Loan loss allowance/non-performing
assets, net of guarantees 606.8% 101.4% 606.0%
Year
Ended
AVERAGE BALANCES Quarter Ended December
March 31, 31,
2003 2002 2002
--------- --------- ---------
Average assets $418,042 $374,924 $392,034
Average equity $21,352 $17,493 $18,792
Average net loans (includes LHFS) $349,339 $321,568 $324,627
Average deposits $355,792 $334,116 $344,487
Average interest earning assets $393,312 $350,575 $366,330
(1) Adjusted for 5% stock dividend in November 2002.
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