Cupertino National Bancorp announces 55% increase in earnings for year-end 1994.CUPERTINO Cu·per·ti·no A city of western California west of San Jose. It has an electronics industry. Population: 50,000. , Calif.--(BUSINESS WIRE)--March 17, 1995--Cupertino National Bancorp (CUNB) (NASDAQ/NMS:CUNB), parent company of Cupertino National Bank & Trust (CNB CNB Czech National Bank CNB Centro Nacional de Biotecnologia CNB City National Bank CNB Citizens National Bank CNB Croatian National Bank CNB Chloronitrobenzene CNB Corresponsales No Bancarios (Spanish, Colombia) ), announced net earnings of $1.4 million or 84 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the year ended Dec. 31, 1994, compared to $.9 million or 55 cents per share one year earlier. The increase in net earnings is primarily due to growth in net interest income, which is attributed to growth in the company's total 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 concentrated focus on controlling 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. . For the year, CUNB's return on average equity and average assets was 7.83% and .69%, respectively, an improvement of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 37% when compared to 1993 returns of 5.70% and .50%, respectively. For the fourth quarter of 1994 CUNB's net income was $226,000 or 14 cents per share compared to $441,000 or 27 cents per share in the third quarter of 1994 and $532,000 or 32 cents per share in the fourth quarter of 1993. The earnings for the fourth quarter of 1994 were lower than earnings for the third quarter of 1994 and the comparable period in 1993 due primarily to increased loan loss provisions associated with the higher levels of non-performing assets which have occurred over the last year and to a lesser extent reserves taken in connection to pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Included in the $5 million of non-performing assets at Dec. 31, 1994, is $2.3 million ($1.7 million real estate secured) pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to one banking relationship as to which the bank is aggressively pursuing collection. C. Donald Allen Donald Merriam Allen (b. Iowa, 1912 — d. San Francisco, August 29, 2004), influential editor, publisher, and translator of contemporary American literature. He is perhaps best known for his project The New American Poetry 1945-1960 , president and chief executive officer of CUNB, said, "We are pleased with the improved operating results recorded in 1994. Everyone at CUNB has worked extremely hard to improve on 1993 operating results and to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the mortgage market that contributed to the earnings decline in the second quarter of 1994. "Controlling operating costs operating costs npl → gastos mpl operacionales has continued to be an important focus of our efforts and we are beginning to see the positive results of these efforts in 1994." Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. continued, "While the operating results have improved, there still is much work to be completed. CUNB's non-performing and classified asset totals continue to be at levels which we believe create potential credit risk within the loan portfolio, and accordingly, we have increased our loan loss reserve to account for this risk. We will seek to aggressively reduce non-performing asset totals as we move forward in 1995." Improved performance by several of the bank's key business units contributed to improved earnings in 1994. The newest business unit, Venture Lending, showed strong growth as total loans outstanding reached $5 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. . The 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 division continued its outstanding performance with total loans funded exceeding $9 million in 1994. This business unit provided excellent returns to the bank and the bank believes it provides a valuable service to our client base. The Trust department's growth continued in 1994, with total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. topping $157 million at year-end, a 33% increase over 1993 totals. When the results of these business units are combined with the good performance of the core bank -- real estate, consumer and commercial lending -- the company was able to achieve significant improvement in operating results for 1994 vs. 1993. While the mortgage division's operating results improved over the second and third quarters of 1994, it continued to operate at a loss. In addition, the economy and interest rates continued to have a negative impact on this unit's operating results and it is anticipated this trend would continue into the future. Given this environment, the bank has reviewed its mortgage operation and has determined to close the mortgage division effective March 31, 1995. In connection with this action, the bank anticipates incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. a $180,000 after tax charge related to this operation in the first quarter of 1995. The charge will be comprised of the expected continuing operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. through March 31, 1995, and the costs related to closing the division. CUNB remains well in excess of minimum 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 guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , with a leverage ratio of 8.39%, Tier 1 risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. of 10.83% and a total risk-based capital ratio of 12.08% compared to regulatory minimums of 4%, 4% and 8%, respectively. In addition, CNB also substantially exceeded the regulatory minimum capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. with ratios of 7.82%, 10.09% and 11.34%, respectively. Cupertino National Bank and its operating divisions, Commercial Lending, Venture Lending, SBA Lending, and Trust Services, serve the Santa Clara Valley
The Santa Clara Valley is a valley just south of the San Francisco Bay in Northern California in the United States. through its regional offices in Cupertino, San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. and Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif. These locations are in the heart of "Silicon Valley" and the 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 . -0-
Cupertino National Bancorp
December 31, 1994
Financial Summary
($ in 000s, except share data)
Selected Statement
of Financial
Condition Data: Dec.31 Sept.30 June 30 Mar.31 Dec.31
1994 1994 1994 1994 1993
Holding Company
Cash and due from banks $ 9,326 $ 13,757 $ 14,284 $ 11,436 $ 10,550 Investments - interest earning 70,906 60,053 67,362 50,800 43,239 Loans Commercial 81,695 77,085 73,326 74,950 77,699 Real estate construction and land 18,117 18,640 17,856 16,741 19,090 Real estate term 13,133 13,198 13,312 14,171 12,075 Consumer and other 21,059 20,485 19,116 17,993 18,214 Total 134,004 129,408 123,610 123,855 127,078 Deferred loan fees, net (847) (890) (986) (903) (923) Allowance for credit losses (2,918) (2,286) (1,951) (1,989) (2,247) Loans, net 130,239 126,232 120,673 120,963 123,908 Loans available for sale 5,383 8,670 3,237 5,868 7,625 Total loans, net 135,622 134,902 123,910 126,831 131,533 Other assets 7,290 7,606 6,740 6,520 7,252 Total assets $223,144 $ 216,318 $ 212,296 $ 195,587 $ 192,574 Deposits Demand, non-interest bearing $ 53,880 $ 51,708 $ 60,776 $ 60,152 $ 62,751 NOW 8,331 7,087 7,849 9,005 6,769 MMDA 73,623 69,457 67,591 59,177 60,803 Savings 5,951 8,049 6,144 7,306 6,343 Time certificates lesser than $100 19,417 6,982 15,812 7,331 7,799 Time certificates greater than $100 25,520 23,152 29,770 28,344 31,275 Total deposit 186,722 166,435 187,942 171,315 175,740 Other borrowings 17,256 31,152 6,090 7,000 0 Other liabilities 1,129 859 858 370 615 Stockholder's equity 18,037 17,872 17,406 16,902 16,219 Total liabilities and shareholder's equity $223,144 $ 216,318 $ 212,296 $ 195,587 $ 192,574 Average quarterly assets Holding company $214,889 $ 206,467 $ 185,988 $ 185,133 $ 202,449 Bank $214,785 $ 206,367 $ 185,888 $ 185,033 $ 202,349 Stockholders' equity Holding company $ 18,037 $ 17,872 $ 17,406 $ 16,902 $ 16,219 Bank - Regulatory $ 16,786 $ 16,567 $ 16,120 $ 15,841 $ 15,405 Bank - GAAP $ 16,851 $ 16,624 $ 16,168 $ 15,921 $ 15,472 Non-performing assets Non-accrual loans $ 3,244 $ 3,162 $ 3,694 $ 705 $ 997 Loans 90 days past due and still accruing 1,371 762 10 1,662 1,963 OREO 375 587 212 593 618 Total non- performing assets $ 4,990 $ 4,511 $ 3,916 $ 2,960 $ 3,578 Classified assets Substandard loans $ 10,927 $ 10,274 $ 9,393 $ 9,823 $ 9,885 Doubtful loans 1,781 1,439 756 471 942 OREO 375 587 212 593 618 Total classified loans $ 13,083 $ 12,301 $ 10,361 $ 10,887 $ 11,445
Selected Statement of Financial Condition Ratios
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
1994 1994 1994 1994 1993
Loan to deposit ratio (excluding loans available for sale) 69.75% 75.84% 64.21% 70.61% 70.51% Ratio of allowance for credit losses to: Loans, net (excluding loans available for sale) 2.19% 1.78% 1.59% 1.62% 1.78% Total non- performing assets 58.47% 50.67% 49.82% 67.20% 62.80% Total classified assets 22.30% 18.58% 18.83% 18.27% 19.63% Earning assets to total assets 93.86% 91.18% 91.02% 91.84% 91.92% Earning assets to interest- bearing liabilities 139.54% 135.21% 145.00% 152.01% 156.67% Capital ratios holding company: Tier 1 leverage 8.39% 8.66% 9.36% 9.13% 8.01% Tier 1 risk- based capital 10.83% 10.71% 10.77% 10.74% 10.38% Total risk- based capital 12.08% 11.96% 11.98% 11.99% 11.63% Capital ratios bank (regulatory): Tier 1 leverage 7.82% 8.03% 8.67% 8.56% 7.61% Tier 1 risk- based capital 10.09% 10.01% 10.02% 10.07% 10.11% Total risk- based capital 11.34% 11.19% 11.18% 11.32% 11.36% Risk-adjusted assets Holding company $166,592 $166,889 $161,590 $157,379 $156,233 Bank $166,288 $166,691 $161,571 $157,374 $152,430 Book value per share (data adjusted for stock dividends) $11.58 $11.59 $11.32 $11.70 $11.02 Total shares outstanding 1,557,008 1,541,877 1,537,881 1,444,225 1,471,917
Cupertino National Bancorp
Dec. 31, 1994
Financial Summary
($ in 000s, except share data)
Selected Statement of Operations Data and Ratios: (1994 and 1993 per share data adjusted for stock dividends)
Fourth Third Second
Quarter Quarter Quarter
1994 1994 1994
Quarterly Data (1): Interest income $4,469 $4,126 $3,427 Interest expense 1,463 1,202 853 Net interest income before provision for credit losses 3,006 2,924 2,574 Provision for credit losses 785 450 150 Net interest income after provision for credit losses 2,221 2,474 2,424 Other income 907 701 514 Other expenses 2,774 2,508 2,566 Net earnings before income taxes 354 667 372 Income tax expense 128 226 126 Net Earnings $ 226 $ 441 $ 246 Earnings per share (2) $ 0.14 $ 0.27 $ 0.15 Weighted average common & common equivalent shares outstanding 1,639,300 1,633,300 1,640,000 Return on quarterly average assets 0.42% 0.85% 0.53% Return on quarterly average equity 4.98% 10.00% 5.70% Effective net interest margin - average earning assets 6.02% 6.17% 6.00% Operating expense ratio 5.16% 4.86% 5.74% Efficiency ratio 70.89% 69.19% 83.10%
First Fourth
Quarter Quarter
1994 1993
Interest income $3,339 $3,537 Interest expense 761 867 Net interest income before provision for credit losses 2,578 2,670 Provision for credit losses 235 115 Net interest income after provision for credit losses 2,343 2,555 Other income 957 863 Other expenses 2,596 2,599 Net earnings before income taxes 704 819 Income tax expense 254 287 Net Earnings $ 450 $ 532 Earnings per share (2) $ 0.28 $ 0.32 Weighted average common & common equivalent shares outstanding 1,607,100 1,662,500 Return on quarterly average assets 0.97% 1.05% Return on quarterly average equity 11.37% 12.90% Effective net interest margin - average earning assets 6.12% 6.22% Operating expense ratio 5.65% 5.52% Efficiency ratio 73.44% 73.56% (1) Operating Ratios are Annualized (2) EPS is Adjusted for Stock Dividends For the Year Ended Dec. 31: 1994 1993 Interest income $15,361 $13,333 Interest expense 4,279 3,166 Net interest income before provision for credit losses 11,082 10,167 Provision for credit losses 1,620 1,679 Net interest income after provision for credit losses 9,462 8,488 Other income 3,079 3,154 Other expenses 10,444 10,224 Net earnings before income taxes 2,097 1,418 Income tax expense 734 538 Net earnings $ 1,363 $ 880 Earnings Per Share (1) $0.84 $0.55 Weighted average common & common equivalent shares outstanding 1,628,600 1,600,000 Return on average assets 0.69% 0.50% Return on Average Equity 7.83% 5.70% Effective net interest margin - average earning assets 6.09% 8.07% Operating expense ratio 5.27% 5.58% Efficiency ratio 73.75% 76.75% (1) EPS is Adjusted for Stock Dividends CONTACT: Cupertino National Bancorp Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. C. Smith, 408/725-2346 |
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