CALIFORNIA COMMUNITY BANK REPORTS RECORD LOAN GROWTH AND EIGHTH CONSECUTIVE QUARTER OF NET PROFIT
Escondido, CA -July 18, 2007-California Community Bank (OTCBB:CABK.OB), today released its unaudited second quarter 2007 financial performance results.
"With this quarter's results, California Community Bank has now recorded eight consecutive quarters of bottom line net profit," said Larry D. Hartwig, the Bank's President and CEO. Hartwig continued, "Even more impressive, during the second quarter of 2007, we continued to achieve record loan growth with our loan portfolio surpassing the $100 million milestone. 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 9% increase in net interest income, after-tax earnings for the quarter were down 48% 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 six months of operations, the Branch is working aggressively to build its 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 continue to work hard to build it into a future profit contributor."
For the second quarter of 2007, the Bank reported a net profit of $107,000, or basic earnings per share of 5 cents, versus $207,000, or basic earnings per share of 10 cents, for the comparable period last year. Earnings for the first six months of the year were $217,000, or basic earnings per share of 10 cents, compared to $322,000, or basic earnings per share of 15 cents, for the first six months of 2006.
The Bank closed the second quarter of 2007 with an asset base of $129,058,000, an increase of $19,685,000, or 18%, from the second quarter of 2006. Total deposits were $105,309,000, up $18,171,000, or 21%, over the same period a year ago. As of June 30, 2007, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at an all time high of $102,388,000 compared to $79,352,000 at June 30, 2006, a significant increase of $23,036,000, or 29%.
Hartwig further commented, "Thanks to great results by an outstanding staff, strong customer loyalty, and the support of our shareholders, we have recorded a very strong quarter of asset growth. Although the Bank's second quarter earnings reflected the fixed operating expenses associated with the ramp-up of our third full service branch we are pleased with the continued high levels of performance by our entire team and in particular the loan growth that has been achieved. Our track record of profitability is sound and 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. Our relationship style of banking is well received in the marketplace and we continue to be strategically focused on building a high quality franchise. 'Real Solutions. Personally Delivered' -- 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 community 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' 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
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