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Orange County Business Bank Announces 94% Increase in Net Income for the Quarter
NEWPORT BEACH, Calif., Jul 21, 2008 (BUSINESS WIRE) -- Orange County Business Bank (the "Bank") (OTCBB: OCBB) announced financial results for the three and six months ended June 30, 2008.
The Bank's net income for the first six months of 2008 was $673 thousand versus $350 thousand for the same period in 2007 which represents an increase of $323 thousand. In addition, the Bank's net income for the three months ended June 30, 2008 was $287 thousand versus $148 for the same period in 2007, which was an increase of $139 thousand. The primary driver behind the increase in income was a result of the Bank's management of its cost of funds in a declining rate environment.
The Bank did not have any non performing loans at June 30, 2008. Orange County Business Bank is not affected by the problems in the sub-prime market for home mortgages since the Bank does not make sub-prime loans nor does it make home mortgages. In addition, the Bank does not make residential tract construction loans.
The Bank's net interest income for the three months ended June 30, 2008 was $2.5 million versus $2.0 million a year ago. Net interest income for the six months ended June 30, 2008 was $4.9 million versus $4.0 million for the same period in 2007. The increases in net interest income for both the three and six month periods for 2008 versus 2007 was driven primarily by an improved cost of funds as a result of a lower interest rate environment and improvement in the overall mix of deposits for the Bank. Non-interest income (comprised of service charges on deposits and other fee income) totaled $150 thousand for the three months ended June 30, 2008 versus $216 thousand for the same period in 2007. Non-interest income totaled $475 thousand for the six months ended June 30, 2008 versus $443 thousand for the same period in 2007. Non-interest expenses (generally, salaries and other operating expenses) were $1.8 million for the three months ended June 30, 2008 versus $2.0 million for the same period in 2007. Non-interest expenses were $3.6 million for the six months ended June 30, 2008 versus $3.8 million for the same period in 2007. On a per share basis, the net income for the three months ended June 30, 2008 was $0.06 per basic share versus $0.03 per basic share for the same period in 2007. Also, on a per share basis, the net income for the six months ended June 30, 2008 was $0.14 per basic share versus $0.07 per basic share for the same period in 2007.
Total deposits as of June 30, 2008, decreased from $191.7 million at December 31, 2007 to $164.8 million reflecting seasonal cash flows. At June 30, 2008, the Bank's assets totaled $250 million and loans totaled $122.5 million. The Bank's capital ratios continue to exceed regulatory guidelines for 'well-capitalized' institutions at June 30, 2008.
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 provides services that include a broad selection of depository as well as business and commercial real estate financing products uniquely designed for each client. The Bank maintains its administrative offices at 4675 MacArthur Court, Suite 200, Newport Beach. 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,
2008 2007 2008 2007
------------- ------------- ------------- -----------
Operating Data
Interest income $ 3,362,000 $ 2,985,000 $6,917,000 $5,988,000
Interest expense 851,000 973,000 2,021,000 1,986,000
------------- ------------- ------------- -----------
Net interest
income 2,511,000 2,012,000 4,896,000 4,002,000
Provision for
loan and lease
losses 373,000 11,000 591,000 77,000
------------- ------------- ------------- -----------
Net interest
income after
provision
for loan and
lease losses 2,138,000 2,001,000 4,305,000 3,925,000
Non interest
income 150,000 216,000 475,000 443,000
Non interest
expense 1,802,000 1,965,000 3,640,000 3,772,000
------------- ------------- ------------- -----------
Income before
provision for
income taxes 486,000 252,000 1,140,000 596,000
Provision for
income taxes 199,000 104,000 467,000 246,000
------------- ------------- ------------- -----------
Net income $ 287,000 $ 148,000 $ 673,000 $ 350,000
============= ============= ============= ===========
Per Share Data
and Other
Ratios
Net Earnings -
Basic $ 0.06 $ 0.03 $ 0.14 $ 0.07
Return on
Average Assets 0.43% 0.32% 0.52% 0.36%
Return on
Average Equity 2.20% 1.18% 2.58% 1.40%
Net Interest
Margin 3.98% 4.68% 3.99% 4.51%
December 31,
June 30, 2008 2007
------------- -------------
Balance Sheet
Data and
Related Ratios
Total Assets $250,017,000 $272,494,000
Total Loans 122,501,000 115,943,000
Allowance for
Loan Losses
(ALLL) 1,955,000 1,367,000
Investment
Securities 106,215,000 78,553,000
Total Deposits 164,837,000 191,700,000
Total
Shareholders'
Equity 51,238,000 51,611,000
ALLL as a
Percentage of
Total Loans 1.60% 1.18%
Book Value $ 10.84 $ 10.92
Actual Number of
Shares
Outstanding 4,724,576 4,724,576
SOURCE: Orange County Business Bank
CONTACT: Orange County Business Bank
JP Gough
Chairman & CEO
Phone: 949-221-0001
Fax: 949-474-4503
jpgough@ocbusinessbank.com
or
Victor E. Guerrero
Executive Vice President
Chief Financial Officer
Phone: 949-999-2642
Fax: 949-474-4503
vguerrero@ocbusines
