Community Bancorp Year to Date Profits Up 37%; Board of Directors Declares 5% Stock Dividend.Business Editors FALLBROOK, Calif.--(BUSINESS WIRE)--Oct. 25, 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 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. profits increased 37%, fueled by continued balance sheet growth and improved operating efficiencies. Net loans were up 25% from a year ago, and total assets and deposits grew 29% at Community National Bank, the wholly-owned subsidiary of Community Bancorp. For the first nine months of 2001, net income was $774,000, or $.28 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 $567,000, or $.22 per diluted share a year ago. Based on the current economic conditions, bank management substantially increased reserves for potential loan losses, impacting third quarter net income. For the quarter ended September September: see month. 30, 2001, profits totaled $233,000, or $.08 per diluted share, compared to $326,000, or $.13 per diluted share in the third quarter last year. The provision for loan losses more than tripled to $670,000 for the three months ended September 30, 2001, compared to $200,000 for the same period last year. Earnings per share was impacted by a $3.1 million private placement completed in July July: see month. . Community Bancorp is using the proceeds from the additional 473,000 shares of stock to reduce debt and continue its expansion strategy. Concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with the earnings announcement, Community Bancorp announced today its 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 5% stock dividend. On November November: see month. 30, 2001, shareholders of record as of November 15 will receive five additional shares of stock for every 100 shares owned. A cash payment will be made in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. 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. . "Company performance continues to improve -- we lowered our 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. and grew the balance sheet significantly, " 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, 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 are pleased to pass on the results of this improved performance to our shareholders with our fourth 5% stock dividend in as many years." Revenues (net interest income before provision plus non-interest income) for the quarter were flat from a year ago at $3.7 million. Year-to-date revenues were up 17% to $11.3 million, compared to $9.6 million in the nine-month period last year. Net interest income before the provision for loan losses was $3.0 million in the third quarter, down from $3.1 million in the third 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. increased 19% to $653,000, compared to $550,000 in the third quarter of last year. "Community National Bank has a strong portfolio in place that will contribute to revenues in the long term," 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. . "We remain one of California's leading 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 lenders, and in order to manage loan concentrations, we will continue to sell off a portion of those loans each quarter, creating non-interest income and a diversified diversified (di·verˑ·s revenue stream. We sold $4.0 million in guaranteed SBA loans in the third quarter, adding $223,000 to gain on sales of loans. In addition, fees on deposit accounts have increased 85% to $161,000 in the third quarter of 2001, from $87,000 in the third quarter of 2000." Operating expenses decreased to $2.6 million, from $2.9 million in the third quarter last year, largely as a result of a reduction in personnel expense, including a $140,000 reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of bonus accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. booked earlier this year. For the nine-month period, operating expenses increased 13% to $9.2 million, compared to $8.1 million in the period last year. "We have continued to monitor our expenses, and lowering the efficiency ratio remains a focus for us," Swanson said. "Our efforts are paying off, as the efficiency ratio improved to 71.1% for the third quarter, compared to 77.6% a year ago. Year-to date we have shown improvement as well, down to 81.5% from 84.4% for the first nine months of last year." "We focus on our efficiency ratio, but also on the ratio of expenses to average assets, which shows our ability to create economies of scale as we grow," continued Swanson. "That ratio improved to 3.14% for the third quarter, compared to 4.62% a year ago. Even without the reversal of bonus accruals, expenses to average assets improved to 3.56% for the quarter." Return on average equity improved, on an 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. basis, to 7.72% for the nine months ended September 30, 2001, from 6.61% for the first nine months of 2000. Return on average assets was 0.33% for the first nine months of 2001, compared to 0.34% for the same period a year ago. "We are concentrating on controllable expenses, because there is no quick-fix for the net interest margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. that we are experiencing," Mills continued. "Interest rates have fallen 3.5% since the beginning of the year, and while most of our adjustable-rate assets are tied to prime and adjust quickly, the CDs that fund the assets reprice over a period of three to twelve months. As our deposits and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. continue to reprice, we expect to see some relief in the fourth quarter." Year-to-date, the net interest margin was 4.25%, down from 5.22% last year. Non-performing assets were $4.7 million at September 30, 2001, compared to $1.2 million a year earlier, but 35% of the portfolio is government-guaranteed SBA loans. Net of those government guarantees, non-performing assets were 1.09% of total assets at quarter-end. Net of government guarantees, the allowance for loan losses totals 92% 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. . Allowance for loans losses totaled 1.34% of total loans held for investment, net of government guarantees, compared to 1.00% a year ago. "As part of our ongoing efforts to minimize In a graphical environment, to hide an application that is currently displayed on screen. For example, in Windows and Mac, the application's window is removed from the screen and represented by an icon on the Windows Taskbar. In the Mac, the icon is placed in the Dock. See Win Minimize windows. exposure, we are constantly scrutinizing our portfolio, and overall delinquencies remain at industry standards," Mills concluded. "A $2.2 million aircraft loan has become non-performing, but there are already potential buyers showing interest in the plane, and we expect to resolve that loan during the fourth quarter." Community National Bank, a subsidiary of Community Bancorp, is a $345 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 and aircraft lending. A 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. , Community National Bank is 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 in the nation. The bank serves North San Diego 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 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 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, the ability to control costs and expenses, net interest margin compression, asset quality, interest rates 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 Ended Year To Date
Quarter Sept. 30, Ended Sept. 30,
Percentage Change 2001 2000 2001 2000
------ --------- --------- --------- ---------
INTEREST INCOME
Interest and fees
on loans $ 5,679 $ 5,501 $ 18,013 $ 13,687
Interest on cash
equivalents 350 197 750 542
Interest-earning
deposits with banks 6 13 24 37
U.S. Treasury, govt.
agencies & other
securities 100 100 332 303
--------- --------- --------- ---------
Total Interest
Income 6% 6,135 5,811 19,119 14,569
INTEREST EXPENSE
Deposits 2,766 2,360 8,786 5,847
Other borrowed
money 323 312 955 736
--------- --------- --------- ---------
Total Interest
Expense 16% 3,089 2,672 9,741 6,583
Net interest
income -3% 3,046 3,139 9,378 7,986
Provision for
loan losses 670 200 764 537
--------- --------- --------- ---------
Net Interest Income
After Loan Loss
Provision -19% 2,376 2,939 8,614 7,449
OTHER OPERATING INCOME
Gain on sales
of loans 246 34 597 127
Servicing fees,
net of amortization 84 163 287 486
Fees on deposits 161 87 388 285
Other 162 266 636 739
--------- --------- --------- ---------
Total Other
Operating Income 19% 653 550 1,908 1,637
OPERATING EXPENSES
Salaries and
employee benefits 1,325 1,559 4,987 4,187
Occupancy 227 224 679 623
Telephone 69 75 220 206
Premises and equipment 166 137 497 422
Marketing and promotions 83 87 249 239
Data processing 243 207 715 617
Professional services 162 170 554 522
Director, officer and
employee expenses 97 130 368 369
Office expenses 81 86 323 240
ESOP loan expense 51 52 153 154
Other non-recurring
expense -- 69 -- 69
Other 126 137 454 474
--------- --------- --------- ---------
Total Other Operating
Expenses -10% 2,630 2,933 9,199 8,122
--------- --------- --------- ---------
Income before
income taxes 399 556 1,323 964
Income tax 166 230 549 397
--------- --------- --------- ---------
NET INCOME -29% $ 233 $ 326 $ 774 $ 567
--------- --------- --------- ---------
Per Share Data(1)
Basic earnings per
common share $ 0.08 $ 0.14 $ 0.29 $ 0.22
--------- --------- --------- ---------
Earnings per common
share -- assuming
dilution $ 0.08 $ 0.13 $ 0.28 $ 0.22
--------- --------- --------- ---------
Weighted average shares
outstanding 2,857,878 2,382,710 2,643,422 2,527,364
--------- --------- --------- ---------
Weighted average shares
outstanding including
Dilutive effect of stock
options 2,926,651 2,433,408 2,723,958 2,568,011
--------- --------- --------- ---------
CONSOLIDATED BALANCE SHEET
--------------------------
(unaudited)
Annual Sept. 30, Dec. 31, Sept. 30,
Percentage Change 2001 2000 2000
------ ---------- ---------- ----------
ASSETS:
Cash and cash
equivalents $ 49,504 $ 17,830 $ 26,923
Interest bearing deposits
in financial institutions 497 790 784
Federal Reserve Bank &
FHLB stock 782 425 253
Investment securities
held-to-maturity, at
amortized cost 5,073 6,819 6,220
Interest-only strip,
at fair value 374 509 494
---------- ---------- ----------
Total Cash and Cash
Equivalents 62% 56,230 26,373 34,674
Loans held for sale 38,266 13,119 13,566
Loans held for investment 245,294 234,306 212,481
Reserve for loan losses (2,833) (2,226) (1,823)
---------- ---------- ----------
Loans, Net 25% 280,727 245,199 224,224
Bank premises and
equipment, net 2,338 2,313 2,278
Other real estate owned -- -- --
Accrued interest and
other assets 3,944 4,364 3,836
Deferred tax asset 672 672 744
Servicing asset, net 1,274 1,537 1,566
---------- ---------- ----------
TOTAL ASSETS 29% $ 345,185 $ 280,458 $ 267,322
---------- ---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Deposits:
Interest bearing $ 272,489 $ 219,371 $ 207,728
Non-interest bearing 38,564 33,326 33,486
---------- ---------- ----------
Total Deposits 29% 311,053 252,697 241,214
Other borrowings 13,812 10,916 10,967
Accounts payable and other
liabilities 4,146 4,609 3,389
---------- ---------- ----------
Total Liabilities 29% 329,011 268,222 255,570
STOCKHOLDERS' EQUITY:
Common stock $0.625 par value;
authorized 10,000,000 shares,
issued and outstanding,
3,154,054 at Sept. 30, 2001 1,971 1,669 1,590
Common stock, treasury
stock -- 883 shares -- -- (5)
Additional paid-in capital 8,310 5,551 4,733
Unearned ESOP contribution (694) (797) (967)
Retained earnings 6,587 5,813 6,401
---------- ---------- ----------
Total Stockholders' Equity 16,174 12,236 11,752
---------- ---------- ----------
TOTAL LIABILITIES AND
EQUITY 29% $ 345,185 $ 280,458 $ 267,322
---------- ---------- ----------
CONSOLIDATED FINANCIAL RATIOS
-----------------------------
Nine Months Twelve Months
Ended Ended
Sept. 30, Dec. 31,
2001 2000 2000
---------- ---------- ----------
Return on average assets
-- annualized 0.33% 0.34% 0.43%
Return on average equity
-- annualized 7.72% 6.61% 8.62%
Efficiency ratio
-- Holding Company 81.51% 84.40% 81.32%
Book value per share $ 5.13 $ 4.62 $ 4.58
Net interest margin 4.25% 5.22% 5.20%
Gain on sale of loans $ 597 $ 127 $ 162
Non-performing loans
Non accrual $ 4,724 $ 1,187 $ 57
90 days past due -- -- --
Restructured -- -- --
Other real estate owned -- -- --
---------- ---------- ----------
Total non-performing assets $ 4,724 $ 1,187 $ 57
---------- ---------- ----------
Government guaranteed portion
of non-performing loans $ 1,638 $ 890 $ 20
Non-performing loans/loans 1.67% 0.53% 0.02%
Non-performing loans, net of
gov't guarantee/loans 1.09% 0.13% 0.01%
Non-performing assets/assets 1.37% 0.44% 0.02%
Non-performing assets, net of
gov't guarantee/assets 0.89% 0.11% 0.01%
Allowance for loan losses/loans 1.00% 0.81% 0.90%
Allowance for loan losses/loans
hld for inv net of gov't guar 1.34% 1.00% 1.17%
Allowance/non-performing loans 60% 154% 3905%
Allowance/non-performing loans,
net of gov't guarantees 92% 614% 6016%
Holding Company Tier 1 to
average assets ratio 6.44% 6.25% 5.88%
Shareholders' equity to assets 4.69% 4.40% 4.36%
Shares outstanding 3,154,054 2,544,257 2,670,406
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