California Business Bank Announces 1st Quarter 2010 Financial Results

Date

Mar 11, 2013

LOS ANGELES, Apr 16, 2010 (BUSINESS WIRE) -- California Business Bank /quotes/comstock/11k!cabb (CABB 2.75, 0.00, 0.00%) ("CBB") announced today its 1st quarter 2010 unaudited ("Q-1-10") results. CBB reported a net operating profit of $9.9 thousand for the 1st quarter 2010, or ($0.005) per share, compared to Q1-2009 net operating loss of $172 thousand or ($0.09) per share. The Bank continued to make improvement in the level of Non-Performing Assets ("NPA") that decreased to 35.4% of Tier-1 Capital as of Q-1-10 from a high of 69.0% of Tier-1 Capital as of Q-3-09 and from 38.0% as of Q-4-09.

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ASSETS: (000)

Asset Type Q-1-10 Q-1-09 FYE-09 FYE-08 FYE-07
Cash $ 840 $ 1,868 $ 591 $ 1,361 $ 1,426
Investments 17,781 27,298 23,550 17,724 31,845
Loans 84,408 86,191 84,544 82,936 82,632
Fixed Assets 654 502 686 772 769
Accruals 262 300 274 405 491
OREO 3,389 2,189 4,250 2,189 --
Other Assets 1,204 1,601 1,516 1,331 678
Total Assets $ 108,538 $ 119,949 $ 115,411 $ 106,718 $ 117,841


-- Total Assets decreased by $11.4 million or 9.51% comparing Q-1-10 to Q-1-09. Total Assets decreased by $6.9 million comparing Q-1-10 to FYE-09 to $108.4 million. The decrease in Total Assets from FYE-09 to Q-1-10 resulted from a decrease in cash and investment of $5.8 million, OREO by $862 thousand, loans by $136 thousand, and, fixed assets, accruals and other assets by $356 thousand.

-- The Bank continues to cleanse the balance sheet of legacy problem assets that has decreased operating earnings and increased maintenance and collection expenses.

-- Total assets will most likely be flat or reflect marginal growth for FYE-10.

Loans: Q-1-10 Q-1-09 FYE-09 FYE-08 FYE-07
Commercial & Industrial $ 56,342 $ 63,321 $ 56,270 $ 53,205 $ 53,909
SBA Loans 1,337 908 1,588 908 150
Construction 320 4,034 467 7,182 13,740
Commercial Real Estate 28,138 21,710 27,664 23,488 15,781
Consumer Loans 68 255 378 155 129
Deferred Loan Fees (89 ) 18 (95 ) (10 ) (36 )
Deferred Loan Premiums 35 15 35 43 44
Less: Reserves 1,743 2,035 1,763 2,035 1,085
Net Loans $ 84,408 $ 88,226 $ 84,544 $ 82,936 $ 82,632


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-- Net Loans decreased from Q-1-10 to FYE-09 by .16%. The bank is resolving the three (3) remaining participated construction loans which totaled $320 thousand as of Q-1-10. The construction loan portfolio peaked as of FYE-07 at $13.7 million through our own origination and participations purchased. The present bank direction is not to make any new construction loans, or acquire any loan participations purchased through FYE-10.

-- The bank has experienced three consecutive quarters of no 30-89 day past due loans, and has one loan that is 90 days past due but still accruing totaling $500,000.

-- OREO levels continued to decrease by 20.26% to $3.38 million as of Q-1-10 from $4.25 million as of FYE-09.

-- The bank is beginning to note positive results with the establishment of its Small Business Administration ("SBA") Department in the fourth quarter of FYE-09, with steady increases forecasted in loan volume, and positive results should be reflected by FYE-10. The bank obtains a U. S. Government guarantee backed by the full-faith and credit of the United States Government that typically is 75% of the loan amount. However, Congress has temporary raised both the dollar amount and guarantee percentage up to 90%.

-- The bank has been increasing loan rates and floors on loans for inherent risk associated with loans while considering deposit relationships.

Investments: Q-1-10 Q-1-09 FYE-09 FYE-08 FYE-07
Fed Funds Sold $ 1,335 $ 13,346 $ 16,415 $ 3,775 $ 7,760
Securities Available for Sale - 13,469 4,493 11,394 24,084
Due from Banks Interest Bearing 16,446 483 2642 2,555 1
Total Investments $ 17,781 $ 27,298 $ 23,550 $ 17,724 $ 31,845


-- CBB carried no long-term securities at 3/31/10. The Bank has deliberately maintained short term on investments which sacrifices short-term yield but affords the bank protection from any sudden upward shocks in a volatile rate environment.

-- However, no assurance can be given that CBB's expectations will be realized.

LIABILITIES & EQUITY: (000)

Liabilities & Equity Q-1-10 Q-1-09 FYE-09 FYE-08 FYE-07
Deposits $ 96,842 $ 99,567 $ 103,599 $ 85,110 $ 94,231
Other Borrowings - 5,000 0 6,000 5,000
Accrual Interest Payable 57 82 73 87 234
Other Liabilities 293 200 385 242 400
Total Liabilities $ 97,192 $ 104,849 $ 104,057 $ 91,439 $ 99,865
Equity 11,346 15,100 11,354 15,279 17,976
Total Liabilities & Equity $ 108,538 $ 119,949 $ 115,411 $ 106,718 $ 117,841
-- Total liabilities decreased by 5.96% or $7 million when comparing Q-1-10 to FYE-09. The reduction is attributed to the decrease in deposits and reduction in FHLB borrowings by $5 million to zero outstanding throughout Q-1-10.

-- The bank's equity position improved from the retention of profit of $9.9 thousand.

Deposits: Q-1-10 Q-1-09 FYE-09 FYE-08 FYE-07
Non-Interest Deposits $ 15,451 $ 20,087 $ 16,306 $ 18,315 $ 16,680
NOW Accounts 2,830 1,389 3,735 1,651 4,422
Savings 20,035 5,976 18,357 6,400 18,663
Money Market 8,645 14,380 9,446 17,669 12,769
Time Deposits 49,881 57,735 55,755 41,075 41,697
Total Deposits $ 96,842 $ 99,567 $ 103,599 $ 85,110 $ 94,231
-- Total Deposits decreased by 6.52% from Q-4 2009 and totaled $96.8 million as of Q-1 2010.

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