Orange County Business Bank Announces Financial Results
Orange County Business Bank Announces Financial Results
IRVINE, Calif.--(BUSINESS WIRE)-- Orange County Business Bank (the "Bank") (OTCBB: OCBB) announced financial results for the three months and six months ended June 30, 2013.
The Bank's net income for the three months ended June 30, 2013 was $204 thousand versus a net loss of $47 thousand for the same period in 2012. The Bank reported net income for the first six months of 2013 of $649 thousand versus a net loss of $126 thousand for the same period in 2012.
The Bank's net interest income for the three months ended June 30, 2013 was $1.4 million versus $1.1 million a year ago. The difference of $300 thousand in net interest income was primarily driven by an increase in the total loans outstanding. Net interest income for the six months ended June 30, 2013 was $2.6 million versus $2.4 million for the same period in 2012. The difference of $200 thousand was due to an increase in the total loans outstanding. The Bank continues to aggressively push into established and successful markets to develop profitable relationships. This push has resulted in the growth of loans, deposits and net interest income.
The Bank continues to experience large recoveries on previous problem loans as well as the improvement in the performance of our current loan portfolio. Due to these recoveries and improvements, the Bank was required to reverse back into income amounts in its allowance for loan and lease losses as the Bank had an excess of reserves. The provision for loan and lease losses for the first six months of 2013 was a benefit of $759 thousand versus no provision in 2012. Additionally, the Bank had a benefit for the provision of loan and lease losses of $184 thousand for the second quarter of 2013 versus no provision during the same period in 2012.
Non-interest income for the three months ended June 30, 2013 was $138 thousand versus $467 thousand for the same period last year. Non-interest income for the first six months of 2013 was $259 thousand versus $687 thousand for the same period in 2012. For both the three months and six months ended on June 30, 2013, the Bank reduced the amount of gains taken on investment securities sold compared to the previous year.
Non-interest expense was down for the second quarter of 2013 over the same period in 2012, $1.5 million versus $1.6 million, respectively. Non-interest expense was $3.0 million for the six months ended June 30, 2013 versus $3.2 million for the same period in 2012. The Bank continues to look for ways to reduce non-interest expense by reviewing contracts, internal resource allocation and client relationship costs.
In addition to the continued profitability, the Bank grew assets by more than 10% during the first 6 months of 2013. At June 30, 2013, the Bank's assets totaled $188.4 million, with loans totaling $114.9 million, and deposits totaling $126.9 million. As of June 30, 2013, the Bank had a ratio of Shareholders' Equity to Total Assets of 19.7%. The Bank's capital ratios continue to far exceed regulatory guidelines for "well-capitalized" institutions.
Orange County Business Bank offers complete relationship banking services for locally owned and operated businesses, professional practices and commercial/industrial companies of Orange County and adjacent markets. The Bank's services include a broad selection of depository as well as business loans and commercial real estate financing products uniquely designed for each client. The Bank maintains its administrative offices at 17901 Von Karman, Suite 100, Irvine, California 92614. The Bank's website is www.ocbusinessbank.com.
This press release includes 'forward-looking' statements within the meaning of Section 27A of the Securities Act. All of the statements contained in this press release, other than statements of historical fact, should be considered forward-looking statements, including but not limited to, any statements which may concern (i) the Bank's strategies, objectives and plans for expansion of its operations, product and services, and growth of its portfolio of loans, deposits and investments, (ii) the Bank's beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank, (iii) the Bank's beliefs as to the adequacy of the allowance for loan losses, and (iv) the Bank's beliefs and expectations of the future operating results. Although the Bank believes the expectation reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All subsequent written and oral forward-looking statements by or attributable to the Bank or persons acting on its behalf are expressly qualified in their entirety by this qualification. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results. The Bank undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
As of and for the | As of and for the | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Operating Data | |||||||||||||||||
Interest income | $ | 1,548,000 | $ | 1,346,000 | $ | 2,892,000 | $ | 2,916,000 | |||||||||
Interest expense | 152,000 | 251,000 | 288,000 | 503,000 | |||||||||||||
Net interest income | 1,396,000 | 1,095,000 | 2,604,000 | 2,413,000 | |||||||||||||
Provision for loan and lease losses | (184,000 | ) | - | (759,000 | ) | - | |||||||||||
Net interest income after provision for loan and lease losses | 1,580,000 | 1,095,000 | 3,363,000 | 2,413,000 | |||||||||||||
Non interest income | 138,000 | 467,000 | 259,000 | 687,000 | |||||||||||||
Non interest expense | 1,514,000 | 1,609,000 | 2,973,000 | 3,226,000 | |||||||||||||
Income before provision for income taxes | 204,000 | (47,000 | ) | 649,000 | (126,000 | ) | |||||||||||
Provision for income taxes | - | - | - | - | |||||||||||||
Net income | $ | 204,000 | $ | (47,000 | ) | $ | 649,000 | $ | (126,000 | ) | |||||||
Per Share Data and Other Ratios | |||||||||||||||||
Net Earnings - Basic | $ | 0.04 | (0.01 | ) | 0.14 | (0.03 | ) | ||||||||||
Return on Average Assets | 0.46 | % | -0.11 | % | 0.75 | % | -0.15 | % | |||||||||
Return on Average Equity | 2.11 | % | -0.49 | % | 3.35 | % | -0.66 | % | |||||||||
Net Interest Margin | 3.11 | % | 2.60 | % | 3.08 | % | 2.98 | % | |||||||||
30-Jun-13 | 31-Dec-12 | ||||||||||||||||
Balance Sheet Data and Related Ratios | |||||||||||||||||
Total Assets | $ | 188,396,000 | $ | 170,250,000 | |||||||||||||
Total Loans | 114,946,000 | 94,149,000 | |||||||||||||||
Allowance for Loan Losses (ALLL) | 1,849,000 | 1,935,000 | |||||||||||||||
Investment Securities | 52,496,000 | 59,573,000 | |||||||||||||||
Total Deposits | 126,914,000 | 120,942,000 | |||||||||||||||
Total Shareholders' Equity | 37,135,000 | 38,949,000 | |||||||||||||||
ALLL as a Percentage of Total Loans | 1.61 | % | 2.06 | % | |||||||||||||
Book Value | $ | 7.86 | $ | 8.24 | |||||||||||||
Actual Number of Shares Outstanding | 4,724,576 | 4,724,576 | |||||||||||||||
Orange County Business Bank
JP Gough
Chairman & CEO
949-221-0001
Fax: 949-225-1500
jpgough@ocbusinessbank.com
or
Victor E. Guerrero
Executive Vice President
Chief Financial Officer
949-999-2642
Fax: 949-225-1500
vguerrero@ocbusinessbank.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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