Community Bank Reports 2006 Second Quarter Earnings of $5.2 Million.PASADENA, Calif. -- Community Bank, a commercial bank with assets in excess of $2.1 billion, today reported net income for the second quarter of 2006 of $5.2 million, representing a decrease of 2.3% over the same quarter last year. The decline in earnings was primarily attributed to net interest margin compression. Return on average equity and return on average assets for the second quarter of 2006 were 11.81% and 0.97%, respectively, as compared to return on average equity and return on average assets of 13.03% and 1.04%, respectively, for the second quarter of 2005. For the six months ended June June: see month. 30, 2006, net income increased 0.7% to $10.5 million from $10.4 million in the first half of 2005. Return on average equity and return on average assets for the six months ended June 30, 2006 were 12.08% and 1.00%, respectively, as compared to 13.05% and 1.05%, for the six months ended June 30, 2005. Total loans as of June 30, 2006 were $1.3 billion, representing an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $106.6 million or 9.1% over on June 30, 2005 actuals Actuals 1. A term used to describe the underlying in future and forward contracts, dealing with commodities rather than financial instruments. 2. A term used to describe a securities historical volatitity. Notes: 1. . Total deposits on June 30, 2006 were $1.7 billion, representing an increase of approximately $46.6 million or 2.8% over total deposits as of June 30, 2005. Non-performing assets as of June 30, 2006 totaled $1.5 million compared with $1.8 million as of December December: see month. 31, 2005. The Bank's reserve for loan losses as of June 30, 2006 totaled $21.9 million or 1.72% of total loans as compared to $21.2 million or 1.72% as of December 31, 2005. The Bank's capital ratios remain strong with Tier 1 leverage, Tier 1 Risk Based Capital and Total Risk Based Capital Ratios of 8.95%, 11.75%, and 13.00%, respectively, as of June 30, 2006. All three ratios exceed the regulatory requirement Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for a well-capitalized bank. Minimum prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios for a well-capitalized bank are defined as Tier 1 leverage, Tier 1 Risk Based Capital and Total Risk Based Capital. These ratios are 5.00%, 6.00% and 10.00%, respectively. Francis Francis, French prince, duke of Alençon and Anjou Francis, 1554–84, French prince, duke of Alençon and Anjou; youngest son of King Henry II of France and Catherine de' Medici. Shanahan, President and Chief Executive Officer, observed that excellent credit quality, strong liquidity and an attractive market position remain core strengths of the organization. Market conditions continue to be competitive and have contributed to reduced pricing and aggressive loan 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. which have discouraged dis·cour·age tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es 1. To deprive of confidence, hope, or spirit. 2. To hamper by discouraging; deter. 3. increased risk tolerance Risk Tolerance The degree of uncertainty that an investor can handle in regards to a negative change in the value of their portfolio. Notes: An investor's risk tolerance varies according to age, income requirements, financial goals, etc. and have had a dampening effect on our loan origination 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. . Deposit growth also continues to be moderated by many external alternatives available in the market. Both loan and deposit growth are consistent with our expectations. Net interest margins continue to represent a challenge. Community Bank continues to be well positioned to respond to changing market conditions. Community Bank is a regional bank, founded in 1945, that serves clients who seek the know-how know-how n. The knowledge and skill required to do something correctly. See Synonyms at art1. know-how Noun Informal the ability to do something that is difficult or technical , wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. and product span of a larger financial institution, as well as the market knowledge, customer service orientation and local focuses of a community bank. Community Bank's mission is to provide the advice and financial tools our clients need to become more competitive and more profitable. Based in Pasadena, it operates banking centers in that city and in Anaheim Anaheim (ăn`əhīm), city (1990 pop. 266,406), Orange co., S Calif., SE of Los Angeles; inc. 1870. Anaheim was founded by Germans in 1857 as an experiment in communal living. , Burbank Burbank, city (1990 pop. 93,643), Los Angeles co., S Calif.; inc. 1911. Tourism and the entertainment industry are central to its economy; several motion-picture studios and television headquarters are here. Burbank's aerospace industry collapsed with the end of the Cold War. , Commerce, Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. , Fontana Fontana, city (1990 pop. 87,535), San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1952. Fabricated metal products, construction materials, and transportation equipment are manufactured, and there is a small steel mill. , Glendale Glendale. 1 City (1990 pop. 148,134), Maricopa co., S central Ariz., adjacent to Phoenix; inc. 1910. It is located in a rich agricultural region irrigated by the Salt River project. Glendale has become one of the fastest-growing U.S. , Industry, Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , 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. , Redlands Redlands, city (1990 pop. 60,394), San Bernardino co., S Calif., in the San Bernardino Valley; inc. 1888. Industries include software research and development and the manufacture of metal foil, furniture, and electrical equipment. , Santa Clarita Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, , South Bay and Yucaipa. For more information, visit the Community Bank Website at www.cbank.com. This press release contains certain 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. , including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.
COMMUNITY BANK
Financial Highlights - Income Statement and Ratios (Unaudited)
(Amounts in Thousands)
For the quarters
ended June 30,
----------------- Dollar Percent
2006 2005 Change Change
-------- -------- ------- -------
INCOME STATEMENT
Interest Income $31,264 $26,865 $4,399 16.4%
Interest Expense 13,315 8,852 4,463 50.4%
-------- -------- ------- ------
Net interest income 17,949 18,013 (64) (0.4%)
Provision for loan losses 275 - 275 -
-------- -------- ------- ------
Net interest income after provision 17,674 18,013 (339) (1.9%)
Non-interest income 2,268 2,143 125 5.8%
Non-interest expense 11,648 11,663 (15) (0.1%)
-------- -------- ------- ------
Income before income tax 8,294 8,493 (199) (2.3%)
Income tax 3,133 3,213 (80) (2.5%)
-------- -------- ------- ------
Net income $5,161 $5,280 $(119) (2.3%)
======== ======== ======= ======
Return on average equity 11.81% 13.03%
Return on average assets 0.97% 1.04%
Net interest margin 3.59% 3.73%
Efficiency ratio 57.61% 57.86%
Book value per common share
(end of period)
Basic earnings per common share $1.70 $1.74
Diluted earnings per common share $1.63 $1.67
For the years
ended June 30,
----------------- Dollar Percent
2006 2005 Change Change
-------- -------- ---------------
INCOME STATEMENT
Interest Income $61,160 $51,818 $9,342 18.0%
Interest Expense 25,449 16,120 9,329 57.9%
-------- -------- ------- -------
Net interest income 35,711 35,698 13 0.0%
Provision for loan losses 380 365 15 4.1%
-------- -------- ------- -------
Net interest income after provision 35,331 35,333 (2) (0.0%)
Non-interest income 4,574 4,661 (87) (1.9%)
Non-interest expense 22,979 22,939 40 0.2%
-------- -------- ------- -------
Income before income tax 16,926 17,055 (129) (0.8%)
Income tax 6,429 6,630 (201) (3.0%)
-------- -------- ------- -------
Net income $10,497 $10,425 $72 0.7%
======== ======== ======= =======
Return on average equity 12.08% 13.05%
Return on average assets 1.00% 1.05%
Net interest margin 3.59% 3.79%
Efficiency ratio 57.04% 56.84%
Book value per common share
(end of period) $57.79 $54.69
Basic earnings per common share $3.46 $3.43
Diluted earnings per common share $3.32 $3.29
As of June 30,
-----------------------------
2006 2005
------------- --------------
CAPITAL RATIOS
Tier 1 leverage capital 8.95% 8.25%
Tier 1 risk-based capital 11.75% 11.33%
Total risk-based capital 13.00% 12.58%
COMMUNITY BANK
Financial Highlights - Balance Sheet (Unaudited)
(Amounts in Thousands)
As of June 30,
----------------------- Dollar Percent
2006 2005 Change Change
----------- ----------- -------- -------
BALANCE SHEET
Cash and cash equivalents $101,134 $86,792 $14,342 16.5%
Investments 668,698 728,582 (59,884) (8.2%)
Loans 1,274,795 1,168,215 106,580 9.1%
Loan loss reserve (21,932) (21,080) (852) 4.0%
----------- ----------- -------- -------
Net loans 1,252,863 1,147,135 105,728 9.2%
Other Assets 96,889 83,270 13,619 16.4%
----------- ----------- -------- -------
Total assets $2,119,584 $2,045,779 $73,805 3.6%
=========== =========== ======== =======
Earning assets $2,044,627 $1,983,589 $61,038 3.1%
Non-interest bearing deposits $493,430 $492,921 $509 0.1%
Interest bearing deposits 1,219,776 1,173,645 46,131 3.9%
----------- ----------- -------- -------
Total deposits 1,713,206 1,666,566 46,640 2.8%
Funds purchased/borrowed 215,990 196,393 19,597 10.0%
Other liabilities 14,212 15,879 (1,667) (10.5%)
----------- ----------- -------- -------
Total liabilities 1,943,408 1,878,838 64,570 3.4%
Stockholders' equity 176,176 166,941 9,235 5.5%
----------- ----------- -------- -------
Total liabilities &
stockholders'equity $2,119,584 $2,045,779 $73,805 3.6%
=========== =========== ======== =======
OTHER SELECTED DATA
Other real estate owned $- $- $- -
Non-accrual loans $1,523 $6,620 $(5,097) (77.0%)
Reserve for loan losses to
total loans 1.72% 1.80% (0.08%) (4.4%)
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