Community Bancorp 2001 Earnings Up 10% On 25% Loan Growth.Business Editors FALLBROOK, Calif.--(BUSINESS WIRE)--Jan. 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 announced that 2001 profits increased 10% over last year, fueled by strong loan growth and increases in non-interest income. Revenues grew 15% for the year, boosted by a 34% increase in 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. at Community National Bank, the wholly-owned subsidiary of Community Bancorp. For the year ended December December: see month. 31, 2001, net income increased 10% to $1.1 million, or $0.37 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 $1.0 million or $0.37 per diluted share last year. Total revenues, comprised of net interest income before the provision for loan losses and other operating income, increased 15% in 2001 to $15.6 million, up from $13.5 the year before. The Company has achieved sizeable growth in loans, deposits and total assets. Net loans grew 25% from a year ago to $305 million, total assets increased 32% to $369 million, and deposits grew 32% to $333 million at year end. 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 18% to $267 million for the year, compared to $226 million in 2000, as the bank continued to focus on commercial real estate and 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 lending. Net interest income after the provision for loan losses increased 8% to $11.3 million in the year, compared to $10.4 million in 2000. Other operating income increased 34% to $2.9 million, from $2.2 million last year. "We maintain a balance and limit our exposure by selling off a portion of our SBA production each quarter, to keep that segment of our portfolio below 40% of total loans," 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. . "Our strategy creates recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. non-interest income each quarter, while enhancing sustainable interest income. In 2001, we sold $28.5 million in SBA loans, resulting in a $1.1 million gain. In 2000, while still working to increase the SBA portion of the portfolio, we retained all of our SBA 7a production, and only sold $4.5 million in SBA 504 loans 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. , for a net gain of just $162,000." "The ratio of 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 declined to 3.81% in 2001, compared to 4.69% in the prior year, even though we have grown from three to five branches," 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. . In the year, Community National Bank opened new branches in Bonsall Bonsall is the name of several people and places, including:
Fourth quarter profits were $328,000, or $0.10 per diluted share, compared to $434,000, or $0.16 per share a year ago. "Community National Bank is an asset-sensitive institution, one whose adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. loans are generally tied to some percentage over prime rate and respond quickly to interest rate changes, while CDs and other deposits reprice much slower," stated Swanson. "As the year progressed, the eleven interest rate cuts totaling 425 basis points in 2001 squeezed significantly our net interest margin and impacted profits. We believe we are well positioned for 2002 when we expect to see rates stabilize stabilize See peg. and perhaps edge back up." Net interest margin was 4.06% in 2001, compared to 5.20% in the prior year. Fourth quarter net interest income after the provision for loan losses was $2.6 million, compared to $3.0 million a year ago. Other operating income increased 78% to $1.0 million, from $541,000 in the fourth quarter last year. Other 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. for the quarter were $3.1 million, compared to $2.8 million in the last quarter of 2000. "Because of the unsettled economy, we elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to significantly add to our reserve for loan losses this year, even though our loan quality has remained solid," Swanson said. "Maintaining a solid balance sheet will always be a high priority." The provision for loan losses increased 65% to $706,000 in the fourth quarter and totaled $1.5 million for the year. The total reserve for loan losses was $3.1 million at year end, which represented 270% of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. , net of government guarantees. "At December 31, 2001, non-performing loans were $3.2 million, with $2.1 million covered by government guarantees, in line with industry standards at just under 1% of total loans," Mills said. "It may appear a significant increase over year end 2000, but delinquencies at that time were exceptionally low, totaling only $57,000. We only have one repossessed asset on the books valued at $1.9 million. We are currently negotiating with several potential buyers and expect to complete the sale in the second quarter with minimal additional losses." 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. ) was 7.80% in 2001, down from 8.62% a year ago. Return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 0.34%, from 0.43% last year. "The unprecedented interest rate reductions in the past year are largely responsible for the decline in ROE and ROA," Swanson said. "Improving these operating ratios Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: is a priority in 2002." Community National Bank, a subsidiary of Community Bancorp, is a $369 million financial institution headquartered in Fallbrook, California Fallbrook is a census-designated place (CDP) in northern San Diego County, California. The population was 29,100 at the 2000 census. Fallbrook's downtown is not on any major highway route. It is 6 miles west of Interstate 15 or 5 miles north of California State Route 76. . 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 . 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 performance ratios, 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) Quarter-to-Quarter Quarter Ended
Percentage December 31,
Change 2001 2000
------------------ ---------- ----------
INTEREST INCOME
Interest and fees on
loans $5,800 $6,246
Interest on cash
equivalents 150 246
Interest-earning deposits
with banks 7 10
US Treasury, govt.
agencies & other
securities 129 105
---------- ----------
Total Interest Income -8% 6,086 6,607
INTEREST EXPENSE
Deposits 2,442 2,920
Other borrowed money 299 303
---------- ----------
Total Interest Expense -15% 2,741 3,223
Net interest income -1% 3,345 3,384
Provision for loan losses 706 428
---------- ----------
Net Interest Income
After Loan Loss Provision -9% 2,639 2,956
OTHER OPERATING INCOME
Gain on sales of loans 471 35
Servicing fees, net of
amortization 91 168
Fees on deposits 171 109
Other 281 229
---------- ----------
Total Other Operating Income 78% 1,014 541
OPERATING EXPENSES
Salaries and employee
benefits 1,670 1,654
Occupancy 229 224
Telephone 75 64
Premises and equipment 209 148
Marketing and promotions 72 124
Data processing 252 208
Professional services 205 165
Director, officer and
employee expenses 118 117
Office expenses 92 87
ESOP loan expense -- 51
Other non-recurring expense -- (156)
Other 169 122
---------- ----------
Total Other Operating Expenses 10% 3,091 2,808
---------- ----------
Income before income taxes 562 689
Income tax 234 255
---------- ----------
NET INCOME -24% $328 $434
========== ==========
Per Share Data(1)
Basic earnings per
common share $0.10 $0.16
========== ==========
Earnings per common
share -- assuming dilution $0.10 $0.16
========== ==========
Weighted average shares
outstanding 3,185,264 2,661,260
Weighted average shares
outstanding including
Dilutive effect of
stock options 3,246,600 2,732,851
Year To Date Annual
Ended December 31, Percentage
2001 2000 Change
---------- ---------- ----------
INTEREST INCOME
Interest and fees on
loans $23,813 $19,933
Interest on cash
equivalents 900 788
Interest-earning deposits
with banks 31 47
US Treasury, govt.
agencies & other
securities 461 408
---------- ----------
Total Interest Income 25,205 21,176 19%
INTEREST EXPENSE
Deposits 11,228 8,767
Other borrowed money 1,254 1,039
---------- ----------
Total Interest Expense 12,482 9,806 27%
Net interest income 12,723 11,370 12%
Provision for loan losses 1,470 965
---------- ----------
Net Interest Income
After Loan Loss Provision 11,253 10,405 8%
OTHER OPERATING INCOME
Gain on sales of loans 1,068 162
Servicing fees, net of
amortization 378 654
Fees on deposits 532 394
Other 944 968
---------- ----------
Total Other Operating Income 2,922 2,178 34%
OPERATING EXPENSES
Salaries and employee
benefits 6,657 5,841
Occupancy 908 847
Telephone 295 270
Premises and equipment 706 570
Marketing and promotions 321 363
Data processing 967 825
Professional services 759 687
Director, officer and
employee expenses 486 486
Office expenses 415 327
ESOP loan expense 153 205
Other non-recurring expense -- (87)
Other 623 596
---------- ----------
Total Other Operating Expenses 12,290 10,930 12%
---------- ----------
Income before income taxes 1,885 1,653
Income tax 783 652
---------- ----------
NET INCOME $1,102 $1,001 10%
========== ==========
Per Share Data(1)
Basic earnings per
common share $0.38 $0.37
========== ==========
Earnings per common
share -- assuming dilution $0.37 $0.37
========== ==========
Weighted average shares
outstanding 2,896,372 2,675,876
Weighted average shares
outstanding including
Dilutive effect of
stock options 2,974,261 2,725,412
(1) Earnings per share have been adjusted for the effect of 5% stock
dividends paid on November 30, 2000, and November 30, 2001.
CONSOLIDATED BALANCE SHEET
--------------------------
(unaudited) Percentage December 31, December 31,
Change 2001 2000
---------- ------------ ------------
ASSETS:
Cash and cash equivalents $38,946 $17,830
Interest bearing deposits in
financial institutions 596 790
Federal Reserve Bank &
FHLB stock 1,065 425
Investment securities
held-to-maturity,
at amortized cost 10,626 6,819
Interest-only strip,
at fair value 354 509
------------ ------------
Total Cash and Investments 96% 51,587 26,373
Loans held for sale 39,023 13,119
Loans held for investment 269,451 234,306
Reserve for loan losses (3,073) (2,226)
------------ ------------
Loans, Net 25% 305,401 245,199
Bank premises and equipment,
net 2,924 2,313
Other repossessed assets 1,900 --
Accrued interest and other assets 5,563 4,364
Deferred tax asset 672 672
Servicing asset, net 1,307 1,537
------------ ------------
TOTAL ASSETS 32% $369,354 $280,458
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
LIABILITIES:
Deposits:
Interest bearing $295,076 $219,371
Non-interest bearing 38,258 33,326
------------ ------------
Total Deposits 32% 333,334 252,697
Other borrowings 15,813 10,916
Accounts payable and
other liabilities 3,706 4,609
------------ ------------
Total Liabilities 32% 352,853 268,222
STOCKHOLDERS' EQUITY:
Common stock $0.625 par value;
authorized 10,000,000 shares,
issued and outstanding,
3,311,490 at
December 31, 2001 2,069 1,669
Additional paid-in capital 9,188 5,551
Unearned ESOP contribution (694) (797)
Retained earnings 5,938 5,813
------------ ------------
Total Stockholders' Equity 16,501 12,236
------------ ------------
TOTAL LIABILITIES AND EQUITY 32% $369,354 $280,458
============ ============
CONSOLIDATED FINANCIAL RATIOS
-----------------------------
Twelve Months Ended
December 31,
2001 2000
------------ ------------
Return on average assets -- annualized 0.34% 0.43%
Return on average equity -- annualized 7.80% 8.62%
Efficiency ratio -- Holding Company 78.55% 80.68%
Operating expenses / average assets 3.81% 4.69%
Book value per share $4.98 $4.58
Net interest margin 4.06% 5.20%
Holding Company Tier 1 to average
assets ratio 6.18% 5.88%
Shareholders' equity to assets 4.47% 4.36%
Shares outstanding 3,311,490 2,670,406
LOAN PORTFOLIO
--------------
December 31,
2001 2000
------------ ------------
Real estate --
commercial and multi-family $188,756 $120,118
Real estate -- one- to four-family 14,041 25,407
Construction 58,220 51,700
Commercial -- Other 15,332 11,024
Aircraft 23,929 24,761
Consumer 8,250 14,329
------------ ------------
Gross loans $308,528 $247,339
============ ============
LOAN DATA
---------
December 31,
2001 2000
------------ ------------
Non-performing loans
Non accrual $3,174 $57
90 days past due 29 --
Restructured -- --
Other repossessed assets 1,900 --
------------ ------------
Total non-performing assets $5,103 $57
============ ============
Government guaranteed portion
of non-performing loans $2,063 $20
Non-performing loans / loans 1.65% 0.02%
Non-performing loans,
net of gov't guarantee/loans 0.99% 0.01%
Non-performing assets / assets 1.38% 0.02%
Non-performing assets,
net of gov't guarantee/assets 0.82% 0.01%
Allowance for loan losses / loans 1.00% 0.90%
Allowance for loan losses / loans
held for inv net of gov't guarantees 1.39% 1.17%
Allowance / non-performing loans 96% 3905%
Allowance / non-performing loans,
net of gov't guarantees 270% 6016%
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