Community Bancorp Inc. Announces 5 Percent Stock Dividend and Third Quarter Earnings.FALLBROOK, Calif.--(BUSINESS WIRE)--Nov. 1, 1999-- 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) ), parent company of Fallbrook National Bank, today announced a loss of ($40,000), or ($0.02) 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 third quarter of 1999, compared to earnings of $303,000, or $0.14 per diluted share, for the third quarter of 1998. Net income totaled $695,000, or $0.30 per diluted share, for the nine months ended Sept. 30, 1999 compared to $774,000, or $0.35 per diluted share, for the nine months ended Sept. 30, 1998. Earnings for the nine months ended Sept. 30,1999 were negatively impacted by the non-recurring expenses of the cost of forming the holding company combined with the outcome of a lawsuit lawsuit: see procedure; tort. . "Without these non-recurring expenses, year to date earnings would have been $907,000, or $0.39 per diluted share, compared to $774,000, or $0.35 per diluted share, for the nine months ended Sept. 30, 1998. This calculates to a 17.2% increase in earnings from operations," stated Tom Swanson, president and chief executive officer of Community Bancorp Inc. and Fallbrook National Bank. Although the courts have ruled in favor of upon the side of; favorable to; for the advantage of. See also: favor a new trial, subject to certain conditions, the bank felt it prudent to accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. the entire potential award of $298,000. If a new trial is not granted, the bank would move forward with an appeal. "In addition to the jury verdict award, the third quarter was impacted by reduced loan sales," continued Swanson. "The decision to reduce sales of guaranteed and unguaranteed 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 loans during the third quarter was made in order to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. returns on each loan by increasing the holding period, which will add interest income to the company's earnings. The company anticipates making loan sales during the fourth quarter. Quality of assets continue to improve, with nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. , net of SBA guarantees, declining from $1.5 million at September September: see month. , 1998 to $834,000 at September, 1999. In addition, the ratio of charge offs to average loans outstanding has been extraordinary during 1999, being reduced to only 2 basis points as a percent of average loans outstanding, as compared to 22 basis points for the same period in 1998." The company's total assets increased to $155.7 million as of Sept. 30,1999, compared to $136.2 million as of Dec. 31, 1998, for a 19 percent annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. growth rate. The board of directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a stock dividend of 5%, payable on Nov. 30, 1999, to shareholders' of record on Nov. 15, 1999. Cash will be paid in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. any fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. . "The bank has met its strategic objectives to date, and therefore the Board has decided to issue this dividend," stated Chairman Haugh haugh n. Scots A low-lying meadow in a river valley. [Middle English hawch, from Old English healh, secret place, small hollow; see kel-1 . Community Bancorp Inc., parent company of Fallbrook National Bank, is a $156 million bank holding company headquartered in Fallbrook, Calif. The company's primary subsidiary, Fallbrook National Bank, serves the North 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. 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 Fallbrook, Temecula and Vista, and loan production offices in the cities of Fallbrook, 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. , 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, and Vista. Fallbrook National Bank's Web site is www.fallbrooknationalbank.com. Statements concerning future performance, developments or events concerning expectation for growth and market 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. which are subject to a number of risks and uncertainties which might cause actual results to differ materially from stated expectations. -0-
STATEMENTS OF INCOME
(dollars in thousands)
(unaudited)
For the nine For the three
months ended months ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Interest Income:
Interest and fees
on loans $8,874 $7,139 $3,033 $2,627
Interest on federal
funds sold 416 689 183 253
Interest on interest
bearing deposits in
financial
institutions 30 31 10 10
Interest on
investment
securities 167 38 105 13
Total interest
income 9,487 7,897 3,331 2,903
Interest expense -
deposits 2,875 2,658 1,021 946
Interest expense -
other borrowed
money 138 88 95 28
Total interest
expense 3,013 2,746 1,116 974
Net interest income
before provision
for loan losses 6,474 5,151 2,215 1,929
Provision for
loan losses 385 410 70 179
Net interest income
after provision
for loan losses 6,089 4,741 2,145 1,750
Other operating income:
Customer service
charges 282 269 104 90
Other fee
income 989 811 324 367
Gain on sale
of loans 1,844 1,031 131 438
Servicing
fees, net 432 453 162 168
Total other
operating
income 3,547 2,564 721 1,063
Other operating
expenses:
Salaries and
employee
benefits 4,555 3,375 1,410 1,270
Occupancy 829 562 275 205
Bank premises
and equipment 376 240 133 96
Marketing and
promotions 174 248 60 112
Data processing 562 446 200 164
Professional
services 403 305 166 132
Non-recurring
expense 362 -- 258 --
Other expenses 1,192 810 432 318
Total other
operating
expenses 8,453 5,986 2,934 2,297
Income before
taxes 1,183 1,319 (68) 516
Income taxes 488 545 (28) 213
Net income $ 695 $ 774 $ (40) $ 303
Basic earnings
per share $ 0.30 $ 0.36 $(0.02) $ 0.14
Diluted earnings
per share $ 0.30 $ 0.35 $(0.02) $ 0.14
CONSOLIDATED BALANCE SHEETS
At Sept. 30, 1999 and Dec. 31, 1998
(dollars in thousands)
(Unaudited)
ASSETS Sept. 30, 1999 Dec. 31, 1998
Cash and due from banks $ 7,178 $ 6,064
Federal funds sold 6,105 10,250
Interest bearing deposits in financial
institutions 800 800
Federal Reserve Bank stock 161 132
Investment securities held-to-maturity,
at amortized cost 6,706 1,676
Loans, held for investment 116,278 103,101
Loans, held for sale 11,437 6,600
Less allowance for loan losses (1,357) (992)
Net loans 126,358 108,709
Bank premises and equipment, net 2,435 2,460
Accrued interest and other assets 3,295 3,182
Servicing asset, net 2,658 2,950
Total assets $ 155,696 $ 136,223
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Interest bearing $ 114,387 $ 102,869
Non-interest bearing 25,666 21,286
Total deposits 140,053 124,155
Other Borrowings 4,022 1,000
Accrued expenses and other liabilities 1,195 1,522
Total liabilities 145,270 126,677
Shareholders' equity
Common stock, $ .625 par value;
authorized 40,000,000 shares,
issued and outstanding, 2,416,305 at
Sept. 30, 1999 and 2,407,065 at
Dec. 31, 1998 1,510 1,505
Additional paid-in capital 3,883 3,856
Unearned ESOP contribution (847) (1,000)
Retained Earnings 5,880 5,185
Total shareholders' equity 10,426 9,546
Total liabilities and shareholders'
equity $ 155,696 $ 136,223
Financial Highlights
FINANCIAL RATIOS:
For the nine For the quarter
months ended ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Return on average assets 0.63% 0.89% (0.10%) 0.93%
Return on average equity 9.36% 11.91% (1.56%) 13.65%
Efficiency ratio 80.74% 77.59% 91.14% 75.53%
Net interest margin 6.47% 6.63% 6.19% 6.59%
Average equity to average assets 6.70% 7.44% 6.54% 6.83%
ALLOWANCE FOR LOAN LOSSES:
At or for the nine months ended
Sept. 30
1999 1998
(dollars in thousands)
Balance beginning of year $ 992 $ 650
Provision for loan losses 385 410
Net charge offs
(net recoveries) 20 142
Balance end of period $ 1,357 $ 918
Allowance for loan losses
to nonaccrual loans 76.36% 170.63%
Allowance for loan losses
to nonperforming loans 76.36% 72.97%
Total Gross Loans $129,347 $ 99,543
Allowance for loan losses
to total gross loans 1.05% 0.92%
Allowance for loan losses
to nonperforming assets 76.36% 52.40%
Ratio of net charge-offs
to average loans outstanding
(annualized) 0.02% 0.22%
NON-PERFORMING ASSETS:
At Sept. 30, At Dec. 31,
1999 1998 1998
(dollars in thousands)
Total nonaccrual loans1 $ 1,777 $ 538 $ 969
Troubled debt
restructurings -- 720 723
Loans 90 days past due and
still accruing -- -- 203
Total nonperforming loans 1,777 1,258 1,895
Other real estate owned -- 494 --
Total nonperforming assets $ 1,777 $ 1,752 $ 1,895
Nonaccrual loans to total
gross loans 1.37% 0.54% 0.86%
Nonperforming loans to
total gross loans 1.37% 1.26% 1.68%
Nonperforming loans, net
of SBA guarantees, to
total gross loans 0.64% 0.97% 1.42%
Total nonperforming
assets to total assets 1.14% 1.44% 1.39%
1 Includes $943,000, $295,000 and $293,000 in SBA guaranteed portion of nonperforming loans as of Sept. 30, 1999 and 1998 and Dec. 31, 1998, respectively. |
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