Community Bancorp 1st Quarter Profits Increase 95%; Strong Loan Growth and Improved Efficiencies Contribute to Success.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 24, 2002 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 first quarter profits grew 95% over the first quarter 2001, fueled by increased revenues, strong balance sheet growth and improved operating efficiencies. For the quarter ended March 31, 2002, net income totaled $590,000, or $0.18 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, up from $302,000, or $0.11 per diluted share in the first quarter last year. Community Bancorp is the parent company of the wholly-owned subsidiary Community National Bank. The Company has achieved significant balance sheet growth in the last year. Net loans grew 23% to $327 million, compared to $265 million at the end of the first quarter a year ago. Total assets increased 30% to $410 million, from $316 million, and deposits grew 25% to $344 million, compared to $275 million at March 31, 2001. Non-interest bearing deposits increased 31% to $41 million, and interest bearing deposits grew 24% to $303 million. Despite the first quarter growth rate, the growth rate for year end 2002 is projected to be 15% to 20% due to increased loan sales and continued balance sheet management. Total loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. increased 21% to $67.2 million for the quarter, compared to $55.4 million for the same quarter last year, as the Company continued to focus on 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 , mortgage, and commercial real estate lending. During the three months ended March 31, 2002, SBA loan originations totaled $19.1 million, compared to $18.1 million the prior year. Mortgage loan originations nearly doubled to $16.0 million in the first quarter of 2002, compared to $8.5 million a year earlier. "We are back on track after 2001 profits were impacted by the 4.75% decline in short term interest rates," 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. . "This is the first quarter where we have not experienced a prime rate reduction since 2000. The net interest margin should improve in a stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. interest rate environment as CDs reprice to current rates. The excellent loan production contributed to continued asset growth and has allowed us to increase both net interest income and noninterest income in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the decrease in margin." Net interest margin was 4.05% for the quarter ended March 31, 2002 compared to 4.69% in the first quarter last year. Net interest income before the provision for loan losses increased 10% to $3.5 million for the quarter, compared to $3.2 million for the first quarter 2001. Net interest income before the provision for loan losses and noninterest income, the two components of revenues, both benefited from the outstanding loan production. Revenues increased 29% to $4.8 million for the quarter ended March 31, 2002, from $3.8 million for the first quarter last year. Return on average equity increased to 13.7% in the quarter, from 10.0% for the first quarter last year. Return on average assets also improved, up to 0.64% for the quarter ended March 31, 2002, compared to 0.42% a year earlier. 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. grew 139% to $1.3 million, compared to $557,000 in the first quarter last year, primarily due to increased gains on sale of loans. The Company sold $14.0 million in SBA loans and $14.2 million in mortgage loans in the first quarter this year, resulting in an $887,000 gain on sale. In the first quarter last year, SBA 504 loan Purpose The Small Business Administration (SBA) 504 loan program was created to help small to mid-sized business owners acquire commercial property without the financial hassles. sales totaled $2.7 million and mortgage loan sales were $5.2 million, netting $70,000 in gains on loan sales. The Company did not sell any SBA 7a loans during the three months ended March 31, 2001. "We have focused on improving operating efficiencies while growing our franchise," 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, Chief Financial Officer. "As a result, the efficiency ratio improved to 74.0% for the first quarter 2002, from 86.5% a year ago. The operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. to average assets ratio also improved dramatically, down to 3.81% compared to 4.45% for the first quarter of 2001." Operating expense increased 10% to $3.6 million, from $3.2 million in the first quarter last year, reflecting the growing branch network. "We have grown our Community National Bank branch network significantly in the past year," Swanson added. "Our goal is to build low-cost, retail deposits which should lower our 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. and improve our net interest margin. We opened our Escondido branch in April last year and added our fifth full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. location in December December: see month. in Bonsall Bonsall is the name of several people and places, including:
"We monitor our lending quality on a constant basis, and strive to maintain a strong balance sheet," Swanson said. "We place loans on nonaccrual before they become 90 days delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. in order to maintain a conservative balance sheet. Loans 90 days or more delinquent totaled only $1.3 million, and when you net out the government guarantees, the total is only $237,000. Net charge offs were only $1,000 for the quarter." The provision for loan losses was $246,000 for the first quarter of 2002, compared to $19,000 for the first quarter of 2001. The total reserve for loan losses was $3.0 million at March 31, 2002 compared to $2.0 as of March 31, 2001. The allowance for loan losses, including the reserve for losses on commitments to extend credit, now represents 1.41% of loans held for investment, net of government guarantees, compared to 1.12% at the end of the first quarter a year ago. Community National Bank, a subsidiary of Community Bancorp, is a $410 million financial institution headquartered in Escondido, Calif. Located between Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and 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. , the bank's primary focus is community banking and commercial lending, with additional lending niches of SBA, mortgage and aircraft lending. The bank serves northern San Diego County and the Inland Empire In·land Empire A region of the northwest United States between the Cascade Range and the Rocky Mountains, comprising eastern Washington, eastern Oregon, northern Idaho, and western Montana. Farming, lumbering, and mining are important to the area. communities with retail banking offices in Fallbrook, Temecula, Escondido, Bonsall and Vista. The bank has loan production offices in Fallbrook, Escondido, Los Angeles, Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Orange, Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Temecula, Vista and in the East San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay . 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, increased profitability, improved operating efficiencies ratios, 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)
Annual Quarter Ended
Percentage March 31,
INTEREST INCOME Change 2002 2001
------ ---- ----
Interest and fees on loans $ 5,596 $ 6,257
Interest on cash equivalents 58 184
Interest-earning deposits with
banks 3 11
US Treasury, govt. agencies &
other securities 191 123
---- ----
Total Interest Income -11% 5,848 6,575
INTEREST EXPENSE
Deposits 2,008 3,075
Other borrowed money 340 305
---- ----
Total Interest Expense -31% 2,348 3,380
Net interest income 10% 3,500 3,195
Provision for loan losses 246 19
---- ---
Net Interest Income After Loan
Loss Provision 2% 3,254 3,176
OTHER OPERATING INCOME
Net gain on sale of loans 887 70
Loan servicing fees, net 88 110
Customer service charges 140 114
Other fee income 215 263
---------- ----------
Total Other Operating Income 139% 1,330 557
OPERATING EXPENSES
Salaries and employee benefits 2,129 1,830
Occupancy 314 216
Telephone 71 78
Bank premises and equipment 178 162
Marketing and promotions 54 84
Data processing 290 232
Professional services 181 198
Director, officer and employee
expenses 100 124
Office expenses 108 144
ESOP loan expense -- 51
Other 150 127
---------- ----------
Total Other Operating Expenses 10% 3,575 3,246
---------- ----------
Income before income taxes 1,009 487
Income tax 419 185
---------- ----------
NET INCOME 95% $ 590 $ 302
========== ==========
Per Share Data(1)
Basic earnings per common share $ 0.18 $ 0.11
========== ==========
Earnings per common share --
assuming dilution $ 0.18 $ 0.11
========== ==========
Weighted average shares outstanding 3,267,032 2,661,028
Weighted average shares outstanding
including dilutive effect of stock
options 3,355,881 2,757,471
CONSOLIDATED BALANCE SHEET
--------------------------
(unaudited) (dollars in thousands)
Annual March 31, Dec. 31, March 31,
Percentage 2002 2001 2001
Change
------
ASSETS:
Cash and cash equivalents $ 43,139 $ 38,946 $ 34,784
Interest bearing deposits
in financial institutions 99 596 497
Federal Reserve Bank &
Federal Home Loan Bank
stock 2,138 1,065 1,080
Investment securities held-
to-maturity, at amortized
cost 24,176 10,626 5,570
Interest-only strip, at fair
value 389 354 480
--------- --------- ---------
Total Cash and Cash
Equivalents 65% 69,941 51,587 42,411
Loans held for sale 43,566 39,023 22,498
Loans held for investment 286,319 269,451 244,610
Reserve for loan losses (3,039) (2,788) (1,977)
--------- --------- ---------
Loans, Net 23% 326,846 305,686 265,131
Bank premises and equipment,
net 4,118 2,924 2,303
Other repossessed assets 1,900 1,900 --
Accrued interest and other
assets 4,534 5,579 4,395
Deferred tax asset 1,240 1,240 672
Servicing asset, net 1,583 1,307 1,471
--------- --------- ---------
TOTAL ASSETS 30% $ 410,162 $ 370,223 $ 316,383
========= ========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
LIABILITIES:
Deposits:
Interest bearing $ 303,145 $ 295,076 $ 243,990
Non-interest bearing 41,080 38,258 31,388
--------- --------- ---------
Total Deposits 25% 344,225 333,334 275,378
Trust Preferred Securities 10,000 10,000 10,000
Other borrowings 33,450 5,813 13,965
Reserve for losses on
commitments to extend credit 279 285 265
Accounts payable and other
liabilities 4,236 4,290 4,195
--------- --------- ---------
Total Liabilities 29% 392,190 353,722 303,803
STOCKHOLDERS' EQUITY:
Common stock $0.625 par value;
authorized 10,000,000 shares,
issued and outstanding,
3,331,000 at March 31, 2002,
3,311,000 at December 31,
2001 and 2,804,000 at March
31, 2001 2,081 2,069 1,669
Additional paid-in capital 9,363 9,162 5,551
Unearned ESOP contribution -- (668) (746)
Retained earnings 6,528 5,938 6,106
--------- --------- ---------
Total Stockholders' Equity 17,972 16,501 12,580
--------- --------- ---------
TOTAL LIABILITIES AND
EQUITY 30% $ 410,162 $ 370,223 $ 316,383
========= ========= =========
CONSOLIDATED FINANCIAL RATIOS
------------------------------
(unaudited)(dollars in thousands)
At or for the
Three Months 12 Months
Ended Ended
March 31, Dec. 31,
2002 2001 2001
--------- --------- ---------
Return on average assets --
annualized 0.64% 0.42% 0.34%
Return on average equity --
annualized 13.68% 10.00% 7.79%
Efficiency ratio -- Holding
Company 74.02% 86.51% 81.32%
Book value per share $ 5.40 $ 4.71 $ 4.98
Net interest margin 4.05% 4.69% 4.18%
Non-accrual loans $ 3,576 $ 1,668 $ 3,174
Troubled debt restructurings -- -- --
Loans contractually past due
90 days or more with respect
to either principal or
interest and still accruing
interest -- -- 29
--------- --------- ---------
Total non-performing loans 3,576 1,668 3,203
Other repossessed assets 1,900 -- 1,900
--------- --------- ---------
Total non-performing assets $ 5,476 $ 1,668 $ 5,103
========= ========= =========
SUPPLEMENTAL DATA
Loans 90 days or more
delinquent $ 1,302 $ 502 $ 2,434
Loans 90 days or more
delinquent, net of
government guarantees $ 237 $ 157 $ 487
Total assets $ 410,162 $ 316,383 $ 370,223
Total gross loans $ 330,165 $ 266,872 $ 308,528
Total loans held for
investment $ 286,319 $ 244,610 $ 269,451
Undisbursed portion of
construction and other
loans $ 61,914 $ 60,323 $ 63,867
Government guaranteed
portion of total loans $ 50,488 $ 44,214 $ 48,598
Non-performing loans, net
of government guarantees $ 1,096 $ 485 $ 1,140
Allowance for loan losses $ 3,039 $ 1,977 $ 2,788
Reserves for losses on
commitments to extend
credit $ 279 $ 265 $ 285
Allowance for loan losses
and reserves for losses on
commitments to extend
credit $ 3,318 $ 2,242 $ 3,073
Loan loss allowance to
loans, gross 0.92% 0.74% 0.90%
Loan loss allowance to
loans held for investment,
net of government
guarantees 1.29% 0.99% 1.26%
Allowance for loan losses to
non-accrual loans 84.98% 118.53% 87.84%
Allowance for loan losses, including reserves for losses
on commitments to extend credit, to:
Total loans 1.00% 0.84% 1.00%
Total loans held for
investment, net of
government guarantees 1.41% 1.12% 1.39%
Non-accrual loans 93% 134% 97%
Non-performing loans 93% 134% 96%
Non-performing loans, net
of government guarantees 303% 462% 270%
Non-performing assets 61% 134% 60%
Total non-performing assets
to total assets 1.34% 0.53% 1.38%
Total non-performing loans,
net of government guarantees
to total assets 0.27% 0.15% 0.31%
Total non-performing loans
to total loans 1.08% 0.63% 1.04%
Total non-performing loans,
net of government guarantees,
to total loans 0.33% 0.18% 0.37%
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