CALIFORNIA COMMUNITY BANK REPORTS SEVENTH CONSECUTIVE QUARTER OF NET PROFIT
ESCONDIDO, CA -(Business Wire) -April 25, 2007 - California Community Bank (OTCBB: CABK.OB), today released its unaudited first quarter 2007 financial performance results.
"With this quarter results, California Community Bank has now recorded seven consecutive quarters of bottom line net profit,"said Larry D. Hartwig, the Bank's President and CEO. Hartwig continued, "During the first quarter of 2007, we achieved record loan growth -- the primary revenue driver for the Bank. Equally important, driven by our disciplined approach toward building quality market share, we did not have a single delinquent or past due loan as of quarter end. However, despite a 13% increase in net interest income, after-tax earnings for the quarter were down 4% versus the comparable period last year - principally due to an increase in non-interest expense driven by the December 2006 opening of our third full service de-novo branch. After just three months of operations, the Branch is aggressively building a pipeline of core commercial banking relationships within San Diego's strategically important business banking communities of Kearney Mesa and Mira Mesa, as well as the Miramar Road corridor and we are working hard to build it into a future profit contributor."
For the first quarter of 2007, the Bank reported a net profit of $110,000, or basic earnings per share of 5 cents, versus $115,000, or basic earnings per share of 6 cents, for the comparable period last year.
The Bank closed the first quarter of 2007 with an asset base of $123,891,000, an increase of $12,123,000, or 11%, from the end of March 2006. Total deposits were $100,486,000, up $10,606,000, or 12%, over the same period a year ago. As of March 31, 2007, total gross loans net of deferred fees stood at a record high of $95,882,000 compared to $75,869,000 at March 31, 2006, a significant increase of $20,013,000, or 26%.
Hartwig further commented, "Thanks to great results by an outstanding staff, strong customer loyalty, and the support of our shareholders, we have recorded another quarter of profitability. Although the Bank's first quarter earnings were softened by fixed operating expenses associated with the ramp-up of our third full service branch, we remain on plan. Our solid track record of profitability enabled us to also continue recognizing some of the tax benefits generated by the initial operating losses we incurred after opening for business in August 2003. We are very pleased with our first quarter results, particularly when you consider that the industry experienced strong competition for core deposits and generally flat yields on earning assets. We continue to be focused on strategically building a high quality franchise -- following through on our reputation as a premier community bank that provides its customers with 'Real Solutions. Personally Delivered'. This remains our cornerstone for creating an exceptional community bank in San Diego's North County -- plus we remain very excited about the opportunities presented in today's banking environment."
California Community Bank is headquartered at 1320 West Valley Parkway in Escondido and currently operates 3 branches - Escondido, San Diego, and Vista, CA. For more information on the Bank, please visit www.calcommunitybank.com or call 760-888-1000.
The numbers in this press release are unaudited. Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are “forward looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation.
CONTACT:
California Community Bank, Escondido, CA
Larry D. Hartwig, 760.888.1001
lhartwig@calcommunitybank.com
| California Community Bank |
Condensed Statements of Financial Condition | | Unaudited | | (dollars in thousands) | | Assets | | | | 3/31/2007 | 3/31/2006 | | Cash and Due from Banks | $ 3,165 | $ 3,750 | | Federal Funds Sold | $ 23,730 | $ 32,100 | | Loans, Net of Deferred Fees & Costs | $ 95,882 | $ 75,869 | | Allowance for Loan Losses | $ (1,121) | $ (943) | | Net Loans | $ 94,761 | $ 74,926 | | Other Assets | $ 2,235 | $ 992 | | Total Assets | $ 123,891 | $ 111,768 | >| . | | Liabilities & Shareholders' Equity | | | | 3/31/2007 | 3/31/2006 | | Deposits | | Non-interest Bearing | $ 19,687 | $ 18,795 | | Interest Bearing | $ 80,799 | $ 71,085 | | Total Deposits | $ 100,486 | $ 89,880 | | Other Liabilities | $ 686 | $ 350 | | Total Liabilities | $ 101,172 | $ 90,230 | Shareholders' Equity
Common Stock - 20,000,000 shares authorized, No Par Value; 2,087,193 and 1,219,234 Shares Issued and Outstanding at March 31, 2007 and March 31, 2006 respectively | $ 24,747 | $ 24,747 | | Additional Paid In Capital | $ 243 | $ 57 | | Accumulated Deficit | $ (2,271) | $ (3,266) | | Total Shareholders' Equity | $ 22,719 | $ 21,538 | | Total Liabilities & Shareholders Equity | $ 123,891 | $ 111,768 |
| California Community Bank |
Condensed Statements of Operations | | Unaudited | | (dollars in thousands, except per share amounts) | | Three Months Ended | | | | 3/31/2007 | 3/31/2006 | | Interest Income | $ 2,231 | $ 1,674 | | Interest Expense | $ 947 | $ 536 | | Net Interest Income | $ 1,284 | $ 1,138 | | Provision for Loan Losses | $ 54 | $ 131 | | Net Interest Income After Provision for Loan Losses | $ 1,230 | $ 1,007 | | Noninterest Income | $ 42 | $ 26 | | Noninterest Expense | | Salaries & Employee Benefits | $ 708 | $ 552 | | Occupancy & Equipment Expenses | $ 225 | $ 161 | | Other Operating Expense | $ 258 | $ 205 | | Total Noninterest Expense | $ 1,191 | $ 918 | | Income (loss) Before Income Taxes | $ 81 | $ 115 | | Income Taxes | $ (29) | $ 0 | | Net Income (loss) | $ 110 | $ 115 |
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CONTACT:
California Community Bank, Escondido,CA
Larry D. Hartwig, 760-888-1001
lhartwig@calcommunitybank.com
California Community Bank...
Real Solutions. Personally Delivered.
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