Community Bancorp Sets Record Earnings of $3.0 Million in 2002; Fourth Quarter EPS More Than Doubles to $0.26.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)--Jan. 30, 2003 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 that strong loan production and balance sheet management resulted in margin expansion and a substantial increase in profitability for both the fourth quarter and the year. Net income for 2002 nearly doubled the profits recorded in any year since the 1985 inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. of Community National Bank, the company's sole subsidiary. In the quarter ended December December: see month. 31, 2002, net income grew 183% to $928,000 or $0.26 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, compared to $328,000 or $0.10 per share in the fourth quarter last year. Net income increased 173% for the year to $3.0 million or $0.84 per diluted share, compared to $1.1 million or $0.35 per diluted share in 2001. Per share data reflects the 5% stock dividend paid on November November: see month. 29, 2002. 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. improved significantly in both the fourth quarter and the year. 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 18.2% for the quarter and 16.0% for all of 2002, compared to 8.0% in the fourth quarter and 7.8% last year. Return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 0.92% for the quarter and 0.77% for the year, compared to 0.37% and 0.34%, respectively, a year ago. The efficiency ratio improved to 62.4% in the quarter and 70.3% for 2002, from 70.9% in the fourth quarter last year and 78.6% in 2001. Loan production increased 16% for both the fourth quarter and year. In the fourth quarter of 2002, originations were $98.5 million in the quarter, compared to $84.7 million in the fourth quarter last year. For the year, originations totaled $309 million, from $267 million in 2001. In 2002, 28% of total originations were 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, compared to 20% of new loans in 2001. "While loan production was a crucial component of our success in 2002, balance sheet management also contributed to the record profits," 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. . "We sold 58% of our SBA production in the second half of 2002 and put the remainder in our portfolio." "On the liability side, we increased total deposits 9%, including growing non-interest bearing deposits 34% and decreasing our dependence on wholesale deposits," added 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. . "The result was 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. and an improved margin." The net interest margin increased 77 basis points to 4.74% in the fourth quarter 2002 when compared with 3.97% for the same period in 2001. Deposits were $364 million at the end of December, compared to $333 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2001. Retail deposits increased 19% to $300.3 million, compared to $251.6 million last year, while wholesale deposits decreased 22% to $63.7 million, from $81.7 million a year ago. Net loans grew 11% to $339 million, from $306 million, and total assets grew 12% to $416 million, compared to $370 million at the end of last year. "Asset quality has continued to improve, reflecting our strong 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. policies and aggressive collection procedures." Swanson said. "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. and assets have improved and net-charge offs decreased in both the quarter and the year." At year-end, non-performing loans (NPLs) and non-performing assets (NPAs) both equaled $2.3 million, compared to NPLs of $3.2 million and NPAs of $5.1 million at the end of 2001. NPLs are now just 0.65% of gross loans, from 1.04% a year ago, and NPAs are 0.54% of total assets, compared to 1.38% of assets at December 31, 2001. Net of government guarantees on SBA loans, NPLs are now 0.19% of gross loans, from 0.37% a year ago, and NPAs are 0.16% of assets, compared to 0.82% at the end of last year. Net charge offs were $515,000 in the year, compared to $623,000 in 2001. The total reserve for loan losses was $3.9 million at year-end, compared to $2.8 million a year ago. The allowance for loan losses now represents 1.14% of gross loans, up from 0.90% a year ago. Net of the government guaranteed portion of SBA loans, the allowance for loan losses, including reserves for losses on commitments to extend credit, now represents 1.31% compared to 1.18% a year ago. The provision for loan losses was $776,000 in the fourth quarter and $1.6 million for the year, compared to $706,000 and $1.5 million in 2001. The increase in the provision and reserve levels is due to the growth in the loan portfolio combined with the uncertainties of the economy. Net interest income before the provision for loan losses increased 34% to $4.5 million for the quarter, from $3.3 million in the fourth quarter last year, a result of increased assets and a lower cost of funds. 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 75% to $1.8 million, compared to $1.0 million a year earlier, largely due to increased gain on sale of loans. 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 26% to $3.9 million, compared to $3.1 million in the fourth quarter last year. In 2002, net interest income grew 27% to $16.1 million, compared to $12.7 million a year ago. Other operating income grew 120% to $6.5 million, compared to $3.0 million in 2001. Other 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. increased 29% to $15.9 million, from $12.3 million last year, reflecting the opening of the company's fifth branch in December 2001 in Bonsall Bonsall is the name of several people and places, including:
Community National Bank is a subsidiary of Community Bancorp, a $416 million financial institution headquartered in Escondido, 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). . The bank's primary focus is community banking and commercial lending, with additional lending niches of SBA and aircraft lending. The bank serves 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 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 and Vista. The bank has nine loan production offices located throughout the state of California. 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)
INTEREST INCOME
Quarterly Quarter Ended Year To Date Annual
Percentage December 31, Ended December 31, Percentage
Change 2002 2001 2002 2001 Change
Interest and fees
on loans $ 6,066 $ 5,800 $ 23,322 $ 23,813
Interest on cash
equivalents 41 150 267 900
Interest-earning deposits
with banks 1 7 6 31
Interest on trading
securities 50 -- 50 --
US Treasury, govt.
agencies & other
securities 296 129 1,170 461
---- ---- ------ ------
Total Interest
Income 6% 6,454 6,086 24,815 25,205 -2%
INTEREST EXPENSE
Deposits 1,624 2,442 7,214 11,228
Other borrowed
money 341 298 1,481 1,253
---- ---- ------ ------
Total Interest
Expense -28% 1,965 2,740 8,695 12,481 -30%
Net interest
income 34% 4,489 3,346 16,120 12,724 27%
Provision for loan
losses 10% 776 706 1,561 1,470 6%
---- ---- ------ ------
Net Interest Income
After Loan Loss
Provision 41% 3,713 2,640 14,559 11,254 29%
OTHER OPERATING INCOME
Net gain on sale
of loans 1,048 494 4,410 1,091
Loan servicing
fees, net 146 31 687 129
Customer service
charges 179 172 614 533
Gain (loss) on other
repossessed
assets 7 -- (42) --
Other fee income 391 316 832 1,206
---- ---- ------ ------
Total Other Operating
Income 75% 1,771 1,013 6,501 2,959 120%
OPERATING EXPENSES
Salaries and employee
benefits 2,176 1,670 8,794 6,657
Occupancy 339 205 1,337 799
Telephone 75 75 305 295
Bank premises and
equipment 55 65 247 262
Data processing 159 143 625 546
Depreciation of
fixed assets 254 191 989 637
Marketing and
promotions 60 73 267 321
Professional services 356 208 1,077 762
Director, officer
and employee
expenses 85 118 419 486
Office expenses 142 90 540 413
ESOP loan expense -- -- -- 153
Other 202 253 1,321 997
---- ---- ------ ------
Total Other Operating
Expenses 26% 3,903 3,091 15,921 12,328 29%
---- ---- ------ ------
Income before income
taxes 1,581 562 5,139 1,885
Income tax 653 234 2,133 783
---- ---- ------ ------
NET INCOME 183% $ 928 $ 328 $ 3,006 $ 1,102 173%
====== ====== ======== ========
Per Share Data(1)
Basic earnings per common
share 170% $ 0.27 $ 0.10 $ 0.86 $ 0.36 139%
====== ====== ======== ========
Earnings per common share
-- assuming
dilution 160% $ 0.26 $ 0.10 $ 0.84 $ 0.35 140%
====== ====== ======== ========
CONSOLIDATED BALANCE SHEET
(unaudited) (dollars in thousands)
Percentage December 31, December 31,
Change 2002 2001
ASSETS:
Cash and cash equivalents $22,656 $38,946
Interest bearing deposits in financial
institutions 99 596
Federal Reserve Bank & Federal Home Loan
Bank stock 1,548 1,065
Trading securities, at market
value 16,076 --
Investment securities held-to-maturity,
at amortized cost 21,306 10,626
Interest-only strip, at
fair value 480 354
--------- ---------
Total Cash, Cash
Equivalents and
Investments 21% 62,165 51,587
Loans held for
sale 52,879 39,023
Loans held for investment 290,537 269,451
Reserve for loan losses (3,945) (2,788)
--------- ---------
Loans, Net 11% 339,471 305,686
Bank premises and equipment,
net 4,179 2,924
Other repossessed assets -- 1,900
Accrued interest and other
assets 5,252 5,579
Income tax
receivable 309 --
Deferred tax
asset 1,705 1,240
Servicing asset,
net 2,617 1,307
--------- ---------
TOTAL ASSETS 12% $415,698 $370,223
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Deposits:
Interest bearing 6% $312,514 $295,076
Non-interest
bearing 34% 51,438 38,258
--------- ---------
Total Deposits 9% 363,952 333,334
Trust Preferred Securities 10,004 10,000
Other borrowings 15,500 5,813
Reserve for losses on
commitments to extend
credit 174 285
Accounts payable and other
liabilities 5,495 4,290
--------- ---------
Total Liabilities 12% 395,125 353,722
STOCKHOLDERS' EQUITY:
Common stock $0.625 par value; authorized
10,000,000 shares, issued and outstanding,
3,542,000 at December 31, 2002 and
3,311,000 at December 31, 2001 2,214 2,069
Additional paid-in capital 10,734 9,162
Unearned ESOP contribution -- (668)
Retained earnings 7,625 5,938
--------- ---------
Total Stockholders' Equity 20,573 16,501
--------- ---------
TOTAL LIABILITIES AND
EQUITY 12% $415,698 $370,223
========= =========
CONSOLIDATED FINANCIAL RATIOS
Quarter Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Annualized return on average
assets 0.92% 0.37% 0.77% 0.34%
Annualized return on average
equity 18.23% 7.95% 16.00% 7.79%
Efficiency ratio 62.42% 70.91% 70.25% 78.61%
Annualized net interest margin 4.74% 3.97% 4.40% 4.18%
Book value per share adjusted
for 5% stock dividend Nov 2002 $5.81 $4.75
NON-PERFORMING ASSETS December 31,
2002 2001
--------- ---------
Non-accrual loans $2,254 $3,174
Loans past due 90 days or more -- 29
Restructured loans -- --
--------- ---------
Total non-performing loans 2,254 3,203
OREO -- --
Other repossessed assets -- 1,900
--------- ---------
Total non-performing assets $2,254 $5,103
========= =========
Total non-performing
loans/gross loans 0.65% 1.04%
Total non-performing
assets/total assets 0.54% 1.38%
Total non-performing loans net
of guarantees/gross loans 0.19% 0.37%
Total non-performing assets net
of guarantees/total assets 0.16% 0.82%
ALLOWANCE FOR LOAN LOSSES Quarter Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Balance at beginning of period $3,607 $2,550 $2,788 $1,988
Provision for loan losses 776 706 1,561 1,470
Recovery of (provision for)
reserve for
losses on commitments to
extend credit (30) (2) 111 (47)
Charge offs (net of recoveries) (408) (466) (515) (623)
--------- --------- --------- ---------
Balance at end of period $3,945 $2,788 $3,945 $2,788
========= ========= ========= =========
Loan loss allowance/gross loans 1.14% 0.90%
Loan loss allowance/non-
performing loans 175.0% 87.0%
Loan loss allowance/total
assets 0.95% 0.75%
Loan loss allowance/non-
performing assets 175.0% 54.6%
Loan loss allowance/non-
performing loans, net of
guarantees 606.0% 244.6%
Loan loss allowance/non-
performing assets, net of
guarantees 606.0% 91.7%
AVERAGE BALANCES Quarter Ended Year-to-Date
December 31, Ended December 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Average assets $399,695 $353,892 $392,037 $322,753
Average equity $20,192 $16,371 $18,792 $14,143
Average net loans (includes
LHFS) $331,246 $294,811 $324,627 $271,433
Average deposits $354,235 $321,055 $344,487 $291,685
Average interest earning
assets $375,382 $331,692 $366,330 $304,691
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