First Commerce Bank Reports Third Quarter Profits.Business Editors ENCINO, Calif.--(BUSINESS WIRE)--Oct. 9, 2003 First Commerce Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :FCBK) ("FCBK") today announced that net income for the nine months ended September 30, 2003 was $942,000, or $.11 per diluted share and $.13 per basic share. This compares with earnings of $1,035,000 or $.13 per diluted share and $.14 per basic share for the nine months ended September 30, 2002. Net income for the quarter ended September 30, 2003 was $365,000 or $.05 per diluted share and $.05 per basic share compared to net income of $470,000 or $.05 per diluted share and $.06 per basic share for the same period last year. Pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. for the nine months ended September 30, 2003 increased $835,000 or 114% to $1,570,000 as compared to $735,000 for the nine months ended September 30, 2002. It is important to note that the income tax expense for the Bank for the nine months ended September 30, 2003 was $628,000 as compared to a tax (benefit) of ($300,000) for the same period in 2002. This resulted in an increase in income tax expense of $928,000 in 2003 as compared to 2002. In prior years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Bank was able to utilize a net operating loss 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. carry forward to offset taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . The Bank is now fully taxable for financial reporting purposes. Assets at September 30, 2003 were $168,000,000 an increase of $27,000,000 over the quarter ended June 30, 2003 and up $43,000,000 or 34% as compared to September 30, 2002. Deposits and loans at September 30, 2003 were $154,000,000 and $117,000,000 up, respectively, 35% and 41% as compared to September 30, 2002. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jack Feldman, President and Chief Executive Officer of First Commerce Bank, the 114% improvement in pre-tax income has enabled the Bank to profitably transition from utilizing prior years' net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. to reduce tax expense to its current fully taxable basis. He also noted the profit contribution resulting from the 41% year-over-year loan portfolio increase. Feldman also reported that due to the Bank's rapid growth, there will soon be a need for additional capital. Therefore, during the third quarter, the Bank acquired $5 million in Pooled Trust Preferred Securities. The Bank plans to seek shareholder and regulatory approval to form a holding company. Upon approval, which is not guaranteed, these Pooled Trust Preferred Securities may be counted as Tier 1 and Tier 2 capital Tier 2 Capital A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more. Notes: This is related to Tier 1 Capital. in the Bank which will allow continued Bank growth while meeting all regulatory standards as a well capitalized bank. First Commerce Bank is an independent community bank with its main office at 16861 Ventura Boulevard, Encino, CA and a regional office in Brentwood, CA. The Bank's stock trades on the Over The Counter Bulletin Board (OTCBB) under the symbol FCBK. |
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