CALIFORNIA COMMUNITY BANK REPORTS FOURTH QUARTER AND FULL YEAR 2007 PERFORMANCE
ESCONDIDO, CA - (Business Wire) -February 7, 2008 - February 7, 2008 - California Community Bank (OTCBB: CABK.OB), today released its unaudited fourth quarter and full year 2007 financial results.
For the fourth quarter of 2007, the Bank reported a net profit of $105,000, or basic earnings per share of 5 cents, versus $432,000, or basic earnings per share of 20 cents, for the comparable period last year. Earnings for the full year were $335,000, or basic earnings per share of 16 cents, compared to $1,000,000, or basic earnings per share of 48 cents, for the full year of 2006.
The Bank closed the fourth quarter of 2007 with an asset base of $141,705,000, an increase of $11,767,000, or 9%, from the fourth quarter of 2006. Total deposits were $117,764,000, up $11,121,000, or 10%, over the same period a year ago. As of December 31, 2007, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at an all time high of $116,209,000 compared to $88,234,000 at December 31, 2006, a significant increase of $27,975,000, or 32%.
"During 2007 we capitalized on market opportunities and made investments that we believe significantly leverage the foundation for our long term growth," said Larry D. Hartwig, the Bank's President and CEO. "From Management's standpoint, there are again no surprises in this quarter's results. Several months ago we consciously invested in relocating and expanding our Escondido branch location and recruited a team of three seasoned banking professionals for the Escondido market. That new team is well known locally and has already begun to accelerate the growth of our commercial business relationships in and around Escondido. Our Board and Management fully considered the short term impact of these decisions on our earnings. We also understand that these actions tend to overshadow the positive performance trends resulting from our asset and balance sheet growth and we remain confident that the bank will benefit from these investments in the future."
Hartwig continued, "During the fourth quarter of 2007, we continued to achieve record loan growth. 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 year end. However, despite a 10% increase in net interest income, after-tax earnings for the year were down 67% versus 2006 - principally due to the increase in non-interest expense driven by our recent strategic investments in the Escondido market, the December 2006 opening of our third full service de-novo branch, and correspondingly, a decline in the amount of recognized future tax benefits. We recognize that there is a revenue lag when expanding a branch and bringing on new high performing bankers. Additionally, we are changing leadership at our Miramar branch and should be able to improve its pace of growth and performance. We continue to believe that the Miramar Road corridor represents a key market opportunity and we expect it to develop into a profit contributor".
Hartwig further commented, "Thanks to great results by an outstanding staff, strong customer loyalty, and our supportive shareholders, we have recorded a very strong quarter and year of growth in assets and market share. 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 relationship style of banking is well received in the marketplace and despite recent interest margin headwinds 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'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 | | | | 12/31/2007 | 12/31/2006 | | Cash and Due from Banks | $ 1,753 | $ 2,081 | | Federal Funds Sold | $ 22,510 | $ 38,490 | | Loans, Net of Deferred Fees & Costs | $ 116,209 | $ 88,234 | | Allowance for Loan Losses | $ (1,358) | $ (1,067) | | Net Loans | $ 114,851 | $ 87,167 | | Other Assets | $ 2,591 | $ 2,200 | | Total Assets | $ 141,705 | $ 129,938 | >| . | | Liabilities & Shareholders' Equity | | | | 12/31/2007 | 12/31/2006 | | Deposits | | Non-interest Bearing | $ 19,051 | $ 17,424 | | Interest Bearing | $ 98,713 | $ 89,219 | | Total Deposits | $ 117,764 | $ 106,643 | | Other Liabilities | $ 741 | $ 727 | | Total Liabilities | $ 118,505 | $ 107,370 | Shareholders' Equity
Common Stock - 20,000,000 shares authorized, No Par Value; 2,099,293 and 2,087,193 Shares Issued and Outstanding at December 31, 2007 and December 31, 2006 respectively | $ 24,875 | $ 24,747 | | Additional Paid In Capital | $ 371 | $ 202 | | Accumulated Deficit | $ (2,046) | $ (2,381) | | Total Shareholders' Equity | $ 23,200 | $ 22,568 | | Total Liabilities & Shareholders Equity | $ 141,705 | $ 129,938 |
| California Community Bank |
Condensed Statements of Operations | | Unaudited | | (dollars in thousands, except per share amounts) | | Three Months Ended | | | | 12/31/2007 | 12/31/2006 | | Interest Income | $ 2,477 | $ 2,301 | | Interest Expense | $ 1,119 | $ 1,043 | | Net Interest Income | $ 1,358 | $ 1,258 | | Provision for Loan Losses | $ 91 | $ 15 | | Net Interest Income After Provision for Loan Losses | $ 1,267 | $ 1,243 | | Noninterest Income | $ 56 | $ 30 | | Noninterest Expense | | Salaries & Employee Benefits | $ 608 | $ 556 | | Occupancy & Equipment Expenses | $ 321 | $ 258 | | Other Operating Expense | $ 289 | $ 327 | | Total Noninterest Expense | $ 1,218 | $ 1,141 | | Income (loss) Before Income Taxes | $ 105 | $ 132 | | Income Taxes (Benefit) | $ 0 | $ (300) | | Net Income (loss) | $ 105 | $ 432 |
| California Community Bank |
Condensed Statements of Operations | | Unaudited | | (dollars in thousands, except per share amounts) | | Full Year Ended | | | | 12/31/2007 | 12/31/2006 | | Interest Income | $ 9,435 | $ 7,997 | | Interest Expense | $ 4,054 | $ 3,089 | | Net Interest Income | $ 5,381 | $ 4,908 | | Provision for Loan Losses | $ 291 | $ 255 | | Net Interest Income After Provision for Loan Losses | $ 5,090 | $ 4,653 | | Noninterest Income | $ 189 | $ 114 | | Noninterest Expense | | Salaries & Employee Benefits | $ 2,738 | $ 2,249 | | Occupancy & Equipment Expenses | $ 1,094 | $ 831 | | Other Operating Expense | $ 1,156 | $ 986 | | Total Noninterest Expense | $ 4,988 | $ 4,066 | | Income (loss) Before Income Taxes | $ 291 | $ 701 | | Income Taxes (Benefit) | $ (44) | $ (299) | | Net Income (loss) | $ 335 | $ 1,000 |
California Community Bank...
Real Solutions. Personally Delivered.
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