Market Overview

NorCal Community Bancorp Announces Third Quarter Profit

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ALAMEDA, Calif.--(BUSINESS WIRE)--

NorCal Community Bancorp (the “Company”) (NCLC), parent company for Bank of Alameda, today reported third quarter net income of $265,000, or $0.02 per diluted share, compared to net income of $98,000, or $0.01 per diluted share for the third quarter in 2011.

For the nine months ended September 30, 2012 the Company is reporting a net loss of $1.6 million, or ($0.15) per diluted share, compared to a net loss of $192,000, or ($0.02) for the same period in 2011.

“We are pleased to report a return to quarterly earnings following the second quarter loss associated with a one-time provision expense of $2.575 million,” President and CEO, Stephen G. Andrews stated. Andrews further stated, “We believe the Company is on track to build quarterly profitability, with significant growth in mortgage brokerage fee income and modestly increasing loan demand. We are also pleased to report continued growth in new customers and the resulting deposit growth, up 7% over a year ago, while maintaining a very favorable cost of funds. Demand for the Company's electronic banking, cash management and mobile banking services continue to increase.”

As of September 30, 2012, total assets were $271.9 million; up 6.7% or $17.2 million compared to September 30, 2011 total assets of $254.7 million. Total loans and leases increased $1.2 million, or 0.7% to $162.5 million at September 30, 2012 compared to $161.3 million at September 30, 2011. Total deposits increased $16.2 million, or 7.2% to $240.2 million at September 30, 2012, compared to $224.0 million at September 30, 2011.

A copy of the Company's information and disclosure statement pursuant to Securities and Exchange Commission Rule 15c2-11 can be found on the home page of the Company's website at www.bankofalameda.com under the Investor Relations section.

Cautionary Statement: This release may contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated herein. Words such as “anticipate,” “believe,” “estimate,” “expect,” “should,” “intend,” “project,” and words or phrases of similar meaning are intended to identify forward-looking statements. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from that projected.

 
NorCal Community Bancorp
FINANCIAL HIGHLIGHTS
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
                 
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
FOR THE PERIOD   2012     2011     2012     2011  
Total interest income $ 2,556 $ 2,652 $ 7,832 $ 7,817
Total interest expense   202     212     599     702  
Net interest income 2,354 2,440 7,233 7,115
Noninterest income 499 361 1,352 773
Noninterest expense   2,588     2,537     7,522     7,240  
Income before provision for loan and lease losses 265 264 1,063 648
Provision for loan and lease losses   -     150     2,650     750  
Loss before provision for income taxes 265 114 (1,587 ) (102 )
Provision for income tax expense   -     16     2     90  
Net Loss $ 265   $ 98   $ (1,589 ) $ (192 )
 
Basic loss per share $ 0.02 $ 0.01 $ (0.15 ) $ (0.02 )
Diluted loss per share $ 0.02 $ 0.01 $ (0.15 ) $ (0.02 )
 
Average shares outstanding 10,650,716 10,613,244 10,630,716 10,613,244
Diluted average shares for the period 10,652,137 10,613,244 10,632,048 10,613,244
 
SELECTED FINANCIAL RATIOS
(Annualized)
Return on average assets 0.39 % 0.15 % -0.81 % -0.10 %
Return on average equity 5.42 % 1.87 % -10.25 % -1.25 %
Yield on earning assets 3.90 % 4.26 % 4.07 % 4.23 %
Cost of funds 0.33 % 0.37 % 0.33 % 0.41 %
Net interest margin 3.59 % 3.92 % 3.76 % 3.85 %
Efficiency ratio 90.73 % 90.59 % 87.63 % 91.79 %
Net charge-offs (recoveries) as a percentage of
average loans and leases -0.29 % 0.31 % 2.39 % 1.52 %
Loan loss provision as a percentage of
average loans and leases 0.00 % 0.37 % 2.12 % 0.62 %
 

 

         
As of
Sept. 30, Sept. 30, %
CONSOLIDATED BALANCE SHEET   2012     2011   Change
ASSETS
Cash and due from banks
Non-interest bearing $ 4,030 $ 2,380 69 %
Interest bearing 37,702 33,336 13 %
Investment securities 64,123 56,694 13 %
Loans and leases 162,548 161,386 1 %
Allowance for loan and lease losses   (4,467 )   (4,736 ) -6 %
Net loans and leases 158,081 156,650 1 %
Other real estate 1,635 1,974 -17 %
Other assets   6,323     3,705   71 %
TOTAL ASSETS $ 271,894   $ 254,739   7 %
 
LIABILITIES
Deposits
Non-interest bearing $ 80,869 $ 65,617 23 %
Interest bearing   159,353     158,367   1 %
Total deposits 240,222 223,984 7 %
Subordinated debentures 8,248 8,248 0 %
Other liabilities   3,730     1,698   120 %
TOTAL LIABILITIES   252,200     233,930   8 %
 
SHAREHOLDERS' EQUITY 19,694 20,809 -5 %
TOTAL LIABILITIES AND    
SHAREHOLDERS' EQUITY $ 271,894   $ 254,739   7 %
 
Book value per share $ 1.86 $ 1.96
 
BANK OF ALAMEDA
REGULATORY CAPITAL RATIOS
Leverage ratio 10.28 % 11.19 %
Tier 1 risk-based capital ratio 15.58 % 16.10 %
Total risk-based capital ratio 16.84 % 17.37 %
 
ASSET QUALITY METRICS
ALLL as a percentage of total loans and leases 2.75 % 2.93 %
Non-performing assets as a percentage of
total assets 2.82 % 3.21 %
Non-performing assets as a percentage of
total equity + ALLL (Texas ratio) 31.76 % 31.97 %

NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.com

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