Community Business Bank Reports Fourth Quarter and Year-End 2006 Results.WEST SACRAMENTO, Calif. -- Community Business Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CBBC CBBC China-Britain Business Council CBBC Canadian Beef Breeds Council CBBC Cape Breton Business College (Sydney, Cape Breton, Nova Scotia, Canada) CBBC Central Bucks Bicycle Club CBBC Calvary Bible Baptist Church ) reported an increase in total assets of $20.3 million since September 30, 2006, for total assets as of December 31, 2006, of $90.9 million. As of December 31, 2006, total loans were $74.6 million, which represents an increase of $22.8 million since September 30, 2006. Deposits at December 31, 2006 were $64.6 million or $16.5 million over the third quarter 2006 totals. The Bank posted a loss of $361,000 in the fourth quarter of 2006, of which $282,000 was expensed to the provision for loan losses. This compares to a loss of $653,000 for the third quarter of this year (with $350,000 expensed to the provision for loan losses). For the year ended December 31, 2006, the Bank lost $2,068,000, or $.97 per share. Of this loss, $950,000 was expensed to the provision for loan losses. As a De Novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. bank, Community Business Bank anticipated incurring losses during its startup phase and is performing well due to the Bank's substantial growth in its commercial loan portfolio. The Bank has faced higher 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. than projected as it works to grow its core deposits base, however. In spite of this challenge, the monthly net loss before loan loss provision has trended favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and Management still anticipates a monthly breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations being reached by January 2007. This monthly breakeven could have been attained in December 2006, but Management felt that it was prudent to increase the Allowance for Loan Losses due to the large loan demand and the uncertainty of exact funding dates. Management believes that its increases in allowance for loan losses are consistent for a bank whose loan portfolio is growing. A number of activities have occurred since initially opening the Bank in November of 2005. The Bank opened a Loan Production Office in Roseville in March 2006. In April 2006, the Bank moved its Administrative offices as well as its Lodi Lodi, city, Italy Lodi (lô`dē), city (1991 pop. 42,250), Lombardy, N Italy, on the Adda River, near Milan. It is an important dairy and light industrial center. branch into permanent facilities. In June, the Bank's West Sacramento Office relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. its temporary office to the newly developed Ikea Center Marketplace. A lease has been signed for a permanent facility for the West Sacramento Office and, once built, will also be located in the Ikea Center Marketplace. The facility moves are part of the Bank's overall Strategic Plan, allowing the Bank to better serve clients and, it is anticipated, to ultimately have a positive impact on earnings. The Bank is headquartered in West Sacramento and maintains a full-service office in both West Sacramento and Lodi. The Bank also operates a Loan Production Office in Roseville. Community Business Bank stock is traded under the symbol cbbc.ob. For more information about the Bank, visit the Bank's website at www.communitybizbank.com. Forward Looking Statements: This document contains comments and information that 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. . The forward-looking statements herein are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Such forward looking statements include, but are not limited to, the Bank's ability to achieve a monthly break-even by January 2007. Forward-looking statements speak only as to the date they are made. The Bank does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. The Bank files reports with the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). . You may obtain a copy of these reports through the FDIC's website located at www.fdic.gov or the Bank's website located at www.communitybizbank.com. |
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