Community Bancorp Reports 94% Increase in Net Income to $1.5 Million for the Quarter and $4.0 Million for the First Nine Months.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)--Oct. 16, 2003 Community Bancorp Inc. (the "Company") (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 record net income of $1.5 million, or $0.35 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 2003, compared to $775,000, or $0.21 per diluted share, for the third quarter of 2002. For the nine months ended Sept. 30, 2003, net income increased to $4.0 million, or $1.01 per diluted share, compared to $2.1 million, or $0.58 per diluted share, for the same period last year. 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. have improved significantly for the Company. 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 19.93% for the third quarter 2003, compared to 16.10% for the third quarter last year. For the first nine months, ROE increased to 21.51%, compared to 15.12% for the same period a year ago. For the third quarter, return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) increased to 1.33%, compared to 0.79% for the comparable period last year. Year to date, ROA showed a significant improvement, increasing to 1.23%, compared to 0.71% for the first nine months of 2002. Improved efficiencies, continued growth in loans and deposits and an expanding net interest margin are the major contributors to the significant improvement in overall profitability. "The profitability gains for the first nine months are the result of our efforts of the past several years to develop a strong, efficient and profitable community bank," stated Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Swanson, 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. . "We are exceptionally proud of our team and the results they have produced. The efficiency ratio improved to 60.10% for this past quarter compared to 71.44% for the third quarter last year. Our net interest margin has climbed to 4.91% for this quarter, compared to 4.49% for the same quarter a year ago. The improved profitability has led to EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. growth for the nine months of 74% when compared to the first nine months of 2002, and 67% third quarter to third quarter." "Due to the strong economic environment in 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 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. and Community's continued success in increasing its market share, total assets have increased 19% since Sept. 30, 2002 to $461.1 million, with net loans increasing 19% to $385.0 million and total deposits increasing 13% to $381.2 million," stated Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Perdue Perdue may refer to:
Loan production for the first nine months of 2003, excluding mortgage loans, increased 31% to $226.7 million from $173.0 million for the same period last year. Of these totals, 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 originations for the nine months ended Sept. 30, 2003 totaled $65.3 million, compared to $60.4 million for the comparable period last year. For the third quarter 2003, SBA originations were $26.3 million, compared to $22.3 million for the third quarter 2002. The Company sold $14.6 million, or 56% of originations, in the third quarter 2003, compared to $14.4 million, or 65% of originations, during the third quarter of 2002. As a percent of revenues (net interest income plus non-interest income), gain on sale of loans was 19% of total revenues for the third quarter and 18% year to date. At $1.35 million for the quarter, this is in line with the Company's previously stated goal of maintaining gains on sale of loans to between $1.0 million and $1.5 million per quarter. Deposits were $381.2 million as of Sept. 30, 2003, compared to $336.1 million as of Sept. 30, 2002. Retail deposits increased 12% to $337.0 million, compared to $301.4 million last year. Non-interest bearing deposits have increased 35% to $66.9 million as of the end of the quarter, compared to $49.7 million a year earlier. Transaction accounts, including demand deposits, interest bearing checking, savings and money market accounts, have increased 28%, and now represent 46% of total average deposits, compared to 41% a year earlier. This continued positive trend in our liability mix has contributed to a 76 basis point decline in the overall cost of deposits from 1.98% for the third quarter 2002 to 1.22% for the third quarter 2003. 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. have declined to $2.4 million as of Sept. 30, 2003, compared to $2.9 million as of Sept. 30, 2002. Net of government guarantees, non-performing loans as a percent of gross loans have declined from 0.32% as of Sept. 30, 2002 to 0.23% as of Sept. 30, 2003. Non-performing assets increased from $3.1 million as of Sept. 30, 2002 to $3.6 million as of Sept. 30, 2003. Net of government guarantees, non-performing assets as a percent of total assets were 0.46% as of Sept. 30, 2003, compared to 0.27% as of Sept. 30, 2002. The total reserve for loan losses was $4.5 million at Sept. 30, 2003, compared to $3.6 million a year ago. The allowance for loan losses now represents 1.17% of gross loans, up from 1.11% a year ago. The provision for loan losses was $474,000 in the third quarter 2003, compared to $306,000 for the third quarter 2002. Net interest income before the provision for loan losses increased 26% to $5.3 million for the quarter, compared to $4.2 million in the third quarter last year, a result of increased 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 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 to $2.0 million for the third quarter of 2003 compared to $1.6 million a year earlier. 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. increased to $4.4 million, compared to $4.1 million in the third quarter last year. Community National Bank is a subsidiary of Community Bancorp, a $461 million financial institution headquartered in Escondido, Calif. The bank's primary focus is community banking and commercial lending, with an additional SBA lending niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the . The bank serves northern San Diego 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:
v. 1. To bring into being; create. 2. To come into being; start. loans in California, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). and Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. . 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)
Third Qtr Quarter Ended Year to Date
INTEREST Percentage Sept. 30, Ended Sept. 30,
INCOME Change 2003 2002 2003 2002
--------------------------------------------------------
Interest and
fees on
loans $6,428 $5,845 $18,841 $17,256
Interest on
cash
equivalents 53 80 111 226
Interest-
earning
deposits
with banks 1 1 5 5
Interest on
trading
securities 43 - 132 -
US Treasury,
govt.
agencies &
other
securities 178 344 665 874
-----------------------------------------------
Total
Interest
Income 7% 6,703 6,270 19,754 18,361
INTEREST
EXPENSE
Deposits 1,185 1,712 4,033 5,590
Other
borrowed
money 261 400 819 1,140
-----------------------------------------------
Total
Interest
Expense -32% 1,446 2,112 4,852 6,730
Net interest
income 26% 5,257 4,158 14,902 11,631
Provision
for loan
losses 474 306 1,195 785
-----------------------------------------------
Net Interest
Income
After Loan
Loss
Provision 24% 4,783 3,852 13,707 10,846
OTHER
OPERATING
INCOME
Net gain on
sale of
loans 1,352 1,008 3,723 3,362
Loan
servicing
fees, net 166 137 481 333
Customer
service
charges 180 160 548 435
Loss on
other
repossessed
assets - - - (49)
Other fee
income 313 259 825 649
-----------------------------------------------
Total Other
Operating
Income 29% 2,011 1,564 5,577 4,730
OPERATING
EXPENSES
Salaries and
employee
benefits 2,473 2,268 7,194 6,618
Occupancy 335 321 974 997
Telephone 67 75 191 230
Premises and
equipment 60 54 190 192
Data
processing 181 150 515 466
Depreciation 199 212 613 736
Marketing
and
promotions 71 60 197 207
Professional
services 256 303 861 721
Director,
officer and
employee
expenses 106 105 396 334
Office
expenses 168 148 484 398
Other 452 392 1,110 1,119
-----------------------------------------------
Total Other
Operating
Expenses 7% 4,368 4,088 12,725 12,018
-----------------------------------------------
Income
before
income
taxes 2,426 1,328 6,559 3,558
Income tax 919 553 2,565 1,480
-----------------------------------------------
NET INCOME 94% $1,507 $775 $3,994 $2,078
================================================
Per Share
Data(1)
Basic
earnings
per common
share 68% $0.37 $0.22 $1.07 $0.60
================================================
Earnings per
common
share -
assuming
dilution 67% $0.35 $0.21 $1.01 $0.58
===============================================
Weighted
average
shares
outstanding 4,058,348 3,507,879 3,742,727 3,480,083
Weighted
average
shares
outstanding
including
Dilutive
effect of
stock
options 4,318,863 3,631,940 3,969,567 3,587,601
CONSOLIDATED BALANCE SHEET
(unaudited) (dollars in Percentage September December September
thousands) Change 30, 31, 30,
2003 2002 2002
---------------------------------------
ASSETS:
Cash and cash equivalents
(including restricted cash of
$1,152 at Dec. 31, 2002) $36,843 $22,656 $28,386
Interest bearing deposits in
financial institutions 99 99 99
Investments
Trading securities, at fair
value 9,946 16,076 -
Held-to-maturity, at
amortized cost 11,745 21,306 24,676
Available-for-sale, at
estimated fair value 3,102 - -
Federal Reserve Bank &
Federal Home Loan Bank
stock, at cost 1,983 1,548 2,284
Loans held for investment 23% 332,458 290,537 271,256
Less allowance for loan
losses (4,545) (3,945) (3,607)
-----------------------------
Net loans held for
investment 327,913 286,592 267,649
Loans held for sale 3% 52,493 52,879 51,063
Premises and equipment, net 3,728 4,179 4,354
Other real estate owned and
repossessed assets 1,199 - 197
Accrued interest and other
assets 6,560 5,256 5,121
Income tax receivable 19 309 726
Deferred tax asset, net 1,713 1,705 1,240
Servicing assets, net 3,076 2,617 2,343
Interest-only strips, at fair
value 681 480 432
-----------------------------
Total assets 19% $461,100 $415,702 $388,570
=============================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
Interest bearing 10% $314,305 $312,514 $286,450
Non-interest bearing 35% 66,884 51,438 49,692
-----------------------------
Total deposits 13% 381,189 363,952 336,142
Trust Preferred Securities 14,962 10,004 10,000
Other borrowings 24,000 15,500 18,088
Reserve for losses on
commitments to extend credit 179 174 145
Accrued expenses and other
liabilities 5,742 5,499 4,685
-----------------------------
Total liabilities 15% 426,072 395,129 369,060
-----------------------------
Shareholders' equity
Common stock, $ .625 par
value; authorized
10,000,000 shares,
issued and outstanding,
4,360,090 at September 30,
2003 ; 3,542,307
at December 31, 2002; and
3,342,145 at September 30,
2002 2,725 2,214 2,089
Additional paid-in capital 20,697 10,734 9,405
Unrealized gains on available
for sale securities, net of
income taxes (13) - -
Retained earnings 11,619 7,625 8,016
-----------------------------
Total shareholders'
equity 80% 35,028 20,573 19,510
-----------------------------
Total liabilities and
shareholders' equity 19% $461,100 $415,702 $388,570
=============================
Quarter Ended Year-to-Date Ended
September 30, September 30,
2003 2002 2003 2002
--------------------------------------
Annualized return on average
assets 1.33% 0.79% 1.23% 0.71%
Annualized return on average
equity 19.93% 16.10% 21.51% 15.12%
Efficiency ratio 60.10% 71.44% 62.14% 73.24%
Annualized net interest margin 4.91% 4.49% 4.90% 4.28%
Book value per share (adjusted
for stock dividends) $8.03 $5.56
NON-PERFORMING ASSETS Quarter Ended At December
September 30, 31
----------------------------------
2003 2002 2002
----------------------------------
Non-accrual loans $2,378 $2,916 $2,254
Loans past due 90 days or more - - -
Restructured loans - - -
------------------------------------
Total non-performing loans 2,378 2,916 2,254
OREO & other repossessed assets 1,199 197 -
------------------------------------
Total non-performing assets $3,577 $3,113 $2,254
====================================
Total non-performing loans/gross
loans 0.61% 0.90% 0.65%
Total non-performing
assets/total assets 0.78% 0.80% 0.54%
Total non-performing loans net
of guarantees/gross loans 0.23% 0.32% 0.19%
Total non-performing assets net
of guarantees/total assets 0.46% 0.27% 0.16%
ALLOWANCE FOR LOAN LOSSES Quarter Ended Year-to-Date
September 30, Ended September
30,
-------------------------------------
2003 2002 2003 2002
-------------------------------------
Balance at beginning of period $4,530 $3,276 $3,945 $2,788
Provision for loan losses 474 306 1,195 785
Recovery of (provision for)
reserve for
losses on commitments to
extend credit 11 116 (5) 141
Charge offs, (net of recoveries) (470) (91) (590) (107)
---------------------------- ---------
Balance at end of period $4,545 $3,607 $4,545 $3,607
============================ =========
Loan loss allowance/gross loans 1.17% 1.11%
Loan loss allowance/loans held
for investment 1.37% 1.33%
Loan loss allowance/non-
performing loans 191.13% 123.70%
Loan loss allowance/total assets 0.99% 0.93%
Loan loss allowance/non-
performing assets 127.06% 115.87%
Loan loss allowance/non-
performing loans, net of
guarantees 499.45% 350.19%
Loan loss allowance/non-
performing assets, net of
guarantees 215.50% 350.19%
Net Charge offs (annualized) to
average loans 0.50% 0.11% 0.22% 0.04%
AVERAGE BALANCES Quarter Ended Year-to-Date
September 30, Ended September
30,
-------------------------------------
2003 2002 2003 2002
-------------------------------------
Average assets $454,422 $394,229 $434,382 $389,484
Average equity $30,243 $19,256 $24,756 $18,325
Average net loans (includes
LHFS) $376,139 $321,036 $362,738 $322,421
Average deposits $385,986 $342,305 $370,945 $341,238
Average interest earning assets $424,512 $367,453 $406,886 $363,313
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