Community Bancorp Assets Up 47% and Pass $300 Million; 32% Revenue Growth Drives Profit Increase.Business Editors FALLBROOK, Calif.--(BUSINESS WIRE)--April 24, 2001 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 its shift in business strategy continued to result in growth in revenues, profits and assets. Net income was $302,000, or $0.11 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, for the first quarter of 2001, up from $44,000, or $0.02 per diluted share, for the first quarter last year. The Company also reached a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. as total assets surpassed $300 million, increasing 47% to $316 million at quarter-end, from $215 million a year ago. Community Bancorp is the parent company of Community National Bank, an 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 "Preferred Lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. ," the 7th largest SBA lender in 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). and 38th largest in the nation. In the first quarter of 2001, total SBA 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. were up 64% to $18 million, from $11 million in the quarter last year. At March 31, 2001, net loans had grown 57% to $265 million, compared to $169 million at March 31, 2000. Total deposits increased 44% to $275 million, up from $191 million a year ago. "It has been a full year since we made the strategic shift to keep SBA guaranteed loans in our portfolio, building a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. platform for earnings growth while foregoing the gain on sale," 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 seasoned lenders have allowed us to expand the balance sheet, driving revenues with increased interest income." Continued loan growth led to a 32% increase in revenues (net interest income plus non-interest income), which totaled $3.8 million in the quarter, compared to $2.8 million for the first quarter of 2000. Net interest income increased 43% to $3.2 million in the quarter, from $2.2 million a year ago. "The 150 basis point decline in interest rates during the first quarter negatively impacted our net interest margin," 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. "There is lag time between our assets repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing , a significant portion of which are tied to prime, and the CDs which fund the assets, which reprice over a period of three to twelve months." The net interest margin was 4.69% in the first quarter of 2001, compared to 5.12% in the first quarter last year. 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. was $557,000 for the quarter, compared to $610,000 primarily a result of reduced servicing fees. Non-interest expense was $3.2 million for the first quarter of 2001, compared to $2.6 million in the quarter last year, primarily due to increases in salaries and benefits. "We have expanded our franchise, adding two SBA offices in 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 a business banking center in 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 in the last year," stated Mills. "In addition to the new personnel for the offices, comissions have increased $143,000 due to increased loan production and we added a new position of Chief Administrative Officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive to head up the retail banking expansion. While the investment in our infrastructure impacts operating income in the short term, these offices have contributed to our business lending operation." "In addition to the SBA production, loan growth has been strong throughout the portfolio," Swanson said. At March 31, 2001, commercial loans were up 42% to $147 million, construction loans grew 69% to $51 million, and aircraft loans increased 36% to $25 million. "At the same time, we have maintained our underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards." Non-performing assets, net of government guarantees, decreased to just $1.67 million at March 31, 2001, compared to $1.75 million a year ago. Net of government guarantees, 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. decreased to 0.18% of total loans, compared to 0.23% at March 31, 2000. The Company had no Real Estate Owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most at March 31, 2001 or 2000. Net charge-offs were $3,000 for the first three months of 2001, compared to a net recovery of $41,000 in the quarter last year. The reserve for loan losses now totals $2.2 million, up from $1.5 million a year ago. The reserve represents 462% of non-performing loans, net of the government guaranteed portion, compared to 385% a year earlier. As a percentage of loans held for investment net of government guarantees, the reserve totaled 1.12% as of March 31, 2001 compared to 1.04% a year ago. 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). was 0.42% in the quarter ended March 31, 2001, compared to 0.09% a year earlier, and return on equity was 10.0%, from 1.6% a year ago. The efficiency ratio improved to 86.5%, compared to 91.7% in the first quarter last year. "Our performance ratios have improved dramatically since the first quarter last year, and we will continue to concentrate on increasing profits while controlling expenses consistent with our strategic plan," Swanson concluded. "That is the best way we know to build shareholder value." Community Bancorp, parent company of Community National Bank, is a $316 million bank holding company 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 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 Company's primary focus is community banking and commercial lending, with additional niches of SBA and aircraft lending. The Company serves the north San Diego and 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 Escondido, Fallbrook, Temecula and Vista. The Company has loan production offices in Fallbrook, 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, general economic and business conditions in those areas in which the Company operates, demographic See demographics. changes, competition, fluctuations in interest rates, changes in business strategy or development plans, changes in governmental regulation, credit quality, the availability of capital to fund the expansion of the Company's business, and other factors referenced in the 10-KSB report on file with the SEC. 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 of the forward-looking statements contained herein to reflect future events or developments.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
Annual Quarter Ended
Percentage March 31,
Change 2001 2000
INTEREST INCOME
Interest and fees on loans $ 6,257 $ 3,725
Interest on cash equivalents 184 103
Interest-earning deposits
with banks 11 9
US Treasury, govt. agencies
& other securities 123 98
---------- ----------
Total Interest Income 67% 6,575 3,935
INTEREST EXPENSE
Deposits 3,075 1,588
Other borrowed money 305 114
---------- ----------
Total Interest Expense 99% 3,380 1,702
Net interest income 43% 3,195 2,233
Provision for loan losses 19 160
---------- ----------
Net Interest Income After
Loan Loss Provision 53% 3,176 2,073
OTHER OPERATING INCOME
Gain on sales of loans 70 47
Servicing fees, net of
amortization 110 160
Fees on deposits 114 108
Other 263 295
---------- ----------
Total Other Operating Income -9% 557 610
OPERATING EXPENSES
Salaries and employee benefits 1,830 1,369
Occupancy 216 197
Telephone 78 68
Bank premises and equipment 162 145
Marketing and promotions 84 49
Data processing 232 214
Professional services 198 192
Director, officer and employee expenses 124 110
Office expenses 144 81
ESOP loan expense 51 51
Other non-recurring expense -- --
Other 127 132
---------- ----------
Total Other Operating Expenses 24% 3,246 2,608
---------- ----------
Income before income taxes 487 75
Income tax 185 31
---------- ----------
NET INCOME 586% $ 302 $ 44
========== ==========
Per Share Data(1)
Basic earnings per common share $ 0.12 $ 0.02
========== ==========
Earnings per common share
-- assuming dilution $ 0.11 $ 0.02
========== ==========
Weighted average shares outstanding 2,534,312 2,525,660
========== ==========
Weighted average shares outstanding
including Dilutive effect of stock
options 2,626,304 2,555,449
========== ==========
(1) Comparative earnings per share data for the prior year has been
restated to conform with Statement of Financial Accounting
Standards No. 128.
CONSOLIDATED BALANCE SHEET
(unaudited)
Annual March 31, Dec. 31, March 31, Changes
Percentage 2001 2000 2000 in
Change Condition
ASSETS:
Cash and cash
equivalents $ 34,784 $ 17,830 $ 29,330 $ 16,954
Interest bearing
deposits in
financial
institutions 497 790 800 (293)
Federal Reserve
Bank & FHLB
stock 1,080 425 253 655
Investment securities
held-to-maturity,
at amortized cost 5,570 6,819 6,710 (1,249)
Interest-only strip,
at fair value 480 509 587 (29)
--------- --------- --------- --------
Total Cash and
Cash Equivalents 13% 42,411 26,373 37,680 16,038
Loans held for
sale 22,498 13,119 9,144 9,379
Loans held for
investment 244,610 234,306 161,612 10,304
Reserve for loan
losses (2,242) (2,226) (1,528) (16)
--------- --------- --------- --------
Loans, Net 57% 264,866 245,199 169,228 19,667
Bank premises
and equipment, net 2,303 2,313 2,404 (10)
Other real estate
owned -- -- -- --
Accrued interest
and other assets 4,395 4,364 3,516 31
Deferred tax asset 672 672 744 --
Servicing asset, net 1,471 1,537 1,728 (66)
--------- --------- --------- --------
TOTAL ASSETS 47% $ 316,118 $ 280,458 $ 215,300 $ 35,660
========= ========= ========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Deposits:
Interest bearing $ 243,990 $ 219,371 $ 162,485 $ 24,619
Non-interest
bearing 31,388 33,326 28,656 (1,938)
--------- --------- --------- --------
Total Deposits 44% 275,378 252,697 191,141 22,681
Other borrowings 23,965 10,916 10,745 13,049
Accounts Payable and
Other Liabilities 4,195 4,609 1,987 (414)
--------- --------- --------- --------
Total Liabilities 49% 303,538 268,222 203,873 35,316
STOCKHOLDERS' EQUITY:
Common stock $0.625
par value; authorized
10,000,000 shares,
issued and outstanding,
2,670,000 at March
31, 2001 1,669 1,669 1,585 --
Common stock,
treasury stock --
883 shares -- -- (5) --
Additional paid-in
capital 5,551 5,551 4,713 --
Unearned ESOP
contribution (746) (797) (745) 51
Retained earnings 6,106 5,813 5,879 293
--------- --------- --------- --------
Total Stockholders'
Equity 12,580 12,236 11,427 344
--------- --------- --------- --------
TOTAL LIABILITIES
AND EQUITY 47% $ 316,118 $ 280,458 $ 215,300 $ 35,660
========= ========= ========= ========
CONSOLIDATED FINANCIAL RATIOS
Three Months Twelve Months
Ended Ended
March 31, December 31,
2001 2000 2000
Return on average assets --
annualized 0.42% 0.09% 0.43%
Return on average equity --
annualized 10.00% 1.57% 8.62%
Efficiency ratio --
Holding Company 86.51% 91.73% 81.32%
Book value per share $ 4.71 $ 4.51 $ 4.58
Net interest margin 4.69% 5.12% 5.20%
Gain on sale of loans $ 70 $ 47 $ 162
Non-performing loans
Non accrual $ 1,668 $ 1,747 $ 57
90 days past due -- -- --
Restructured -- -- --
Other real estate owned -- -- --
------- ------- -------
Total non-performing assets $ 1,668 $ 1,747 $ 57
======= ======= =======
Government guaranteed
portion of non-performing
loans $ 1,183 $ 1,350 $ 20
Non-performing loans /
loans 0.62% 1.02% 0.02%
Non-performing loans,
net of gov't guarantee /
loans 0.18% 0.23% 0.01%
Non-performing assets /
assets 0.53% 0.81% 0.02%
Non-performing assets,
net of gov't guarantee /
assets 0.15% 0.18% 0.01%
Allowance for loan losses /
loans 0.84% 0.89% 0.90%
Allowance for loan losses /
loans hld for inv net of
gov't guar 1.12% 1.04% 1.12%
Allowance / non-performing
loans 134.41% 87.46% 3905.26%
Allowance / non-performing
loans, net of gov't
guarantees 462.27% 384.89% 6016.22%
Holding Company Tier 1 to
average assets ratio 5.72% 7.20% 5.88%
Shareholders' equity to
assets 3.98% 5.31% 4.36%
Shares outstanding 2,670,406 2,537,120 2,670,406
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion