NorCal Community Bancorp (the "Company") (OTC Bulletin Board: NCLC), parent company for Bank of Alameda, today reported a 2011 third quarter profit of $98,000, or $0.01 per diluted share, compared to a net loss of $1.2 million, or ($0.37) per diluted share, for the same period a year ago. For the nine months ended September 30, 2011 the Company reported a net loss of $192,000, or ($0.02) per diluted share, compared to a net loss of $4.0 million, or ($1.26) per diluted share for the same period in 2010.
"We are very pleased to report this first quarterly profit after nine consecutive quarterly losses," stated Stephen G. Andrews, President and Chief Executive Officer. "We have made extraordinary progress this year in cleaning up the balance sheet, which has contributed to a significant decrease in loan loss provisioning and charge-off activity in 2011." For the three and nine month period ended September 30, 2011, the Company provided $150,000 and $750,000, respectively, to its allowance for loan and lease losses compared to $850,000 and $4.4 million, for the same periods in 2010. Non-performing assets were $8.2 million compared to $22 million at September 30, 2010.
As of September 30, 2011, total assets were $254.7 million, up from $250.4 million at September 30, 2010. Total loans and leases have decreased $10.7 million, or 6.2% to $161.4 million at September 30, 2011 compared to $172.0 million at September 30, 2010. Total deposits decreased $1.7 million to $224.0 million at September 30, 2011, compared to $225.7 million at September 30, 2010.
The Company is also reporting that effective September 20, 2011, the Federal Deposit Insurance Corporation (the "FDIC") and the California Department of Financial Institutions (the "CDFI"), issued a joint order terminating the formal agreement (the "Consent Order") entered into on September 17, 2010, between Bank of Alameda, the FDIC and the CDFI. Mr. Andrews stated, "We are extremely pleased that our efforts to comply with the terms of the Consent Order have been recognized by both the FDIC and CDFI. The removal of the order is a testament to the Bank's improved overall financial condition and confirms our strong capital position." Bank of Alameda will remain informally committed to the FDIC and CDFI to continue to maintain its capital levels, reduce problem assets and improve earnings.
Andrews closed with stating, "Our focusing on the key components of core operations - service, community involvement and local decision making – will serve to further improve the value of our franchise and our return to profitability."
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.
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| NorCal Community Bancorp | ||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
| (Dollar amounts in thousands, except share and per share data) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
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| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| Sept. 30, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||||||||||||
| FOR THE PERIOD | Â | 2011 | Â | Â | 2010 | Â | Â | 2011 | Â | Â | 2010 | Â | ||||||||||||
| Total interest income | $ | 2,652 | $ | 2,743 | $ | 7,817 | $ | 8,551 | ||||||||||||||||
| Total interest expense | Â | 212 | Â | Â | 317 | Â | Â | 702 | Â | Â | 984 | Â | ||||||||||||
| Net interest income | 2,440 | 2,426 | 7,115 | 7,567 | ||||||||||||||||||||
| Provision for loan and lease losses | 150 | 850 | 750 | 4,385 | ||||||||||||||||||||
| Noninterest income | 361 | 214 | 773 | 660 | ||||||||||||||||||||
| Noninterest expense | Â | 2,537 | Â | Â | 2,975 | Â | Â | 7,240 | Â | Â | 7,829 | Â | ||||||||||||
| Income (Loss) before provision for income taxes | 114 | (1,185 | ) | (102 | ) | (3,987 | ) | |||||||||||||||||
| Provision for income tax expense | Â | 16 | Â | Â | - | Â | Â | 90 | Â | Â | 2 | Â | ||||||||||||
| Net Income (Loss) | $ | 98 | Â | $ | (1,185 | ) | $ | (192 | ) | $ | (3,989 | ) | ||||||||||||
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| Basic income (loss) per share | $ | 0.01 | $ | (0.37 | ) | $ | (0.02 | ) | $ | (1.26 | ) | |||||||||||||
| Diluted income (loss) per share | $ | 0.01 | $ | (0.37 | ) | $ | (0.02 | ) | $ | (1.26 | ) | |||||||||||||
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| Average shares outstanding | 10,613,244 | 3,166,755 | 10,613,244 | 3,166,755 | ||||||||||||||||||||
| Diluted average shares for the period | 10,613,244 | 3,166,755 | 10,613,244 | 3,166,755 | ||||||||||||||||||||
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| SELECTED FINANCIAL RATIOS | ||||||||||||||||||||||||
| (Annualized) | ||||||||||||||||||||||||
| Return on average assets | 0.15 | % | -1.88 | % | -0.10 | % | -2.12 | % | ||||||||||||||||
| Return on average equity | 1.87 | % | -28.73 | % | -1.25 | % | -30.30 | % | ||||||||||||||||
| Yield on earning assets | 4.26 | % | 4.51 | % | 4.23 | % | 4.69 | % | ||||||||||||||||
| Cost of funds | 0.54 | % | 0.71 | % | 0.59 | % | 0.74 | % | ||||||||||||||||
| Net interest margin | 3.92 | % | 3.99 | % | 3.85 | % | 4.15 | % | ||||||||||||||||
| Efficiency ratio | 90.59 | % | 112.83 | % | 91.79 | % | 94.93 | % | ||||||||||||||||
| Net charge-offs as a percentage of | ||||||||||||||||||||||||
| average loans and leases | 0.31 | % | 1.05 | % | 1.52 | % | 2.57 | % | ||||||||||||||||
| Loan loss provision as a percentage of | ||||||||||||||||||||||||
| average loans and leases | 0.37 | % | 1.91 | % | 0.62 | % | 3.14 | % | ||||||||||||||||
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Financial Highlights - Continued | |||||||||||||||
| As of | |||||||||||||||
| Sept. 30, | Sept. 30, | % | |||||||||||||
| CONSOLIDATED BALANCE SHEET | Â | 2011 | Â | Â | 2010 | Â | Change | ||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | |||||||||||||||
| Non-interest bearing | $ | 2,380 | $ | 1,643 | 45 | % | |||||||||
| Interest bearing | 33,336 | 44,153 | -24 | % | |||||||||||
| Investment securities | 56,694 | 28,664 | 98 | % | |||||||||||
| Loans and leases | 161,386 | 172,039 | -6 | % | |||||||||||
| Allowance for loan and lease losses | Â | (4,736 | ) | Â | (6,199 | ) | -24 | % | |||||||
| Net loans and leases | 156,650 | 165,840 | -6 | % | |||||||||||
| Other assets | Â | 5,679 | Â | Â | 10,066 | Â | -44 | % | |||||||
| TOTAL ASSETS | $ | 254,739 | Â | $ | 250,366 | Â | 2 | % | |||||||
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| LIABILITIES | |||||||||||||||
| Deposits | |||||||||||||||
| Non-interest bearing | $ | 65,617 | $ | 54,009 | 21 | % | |||||||||
| Interest bearing | Â | 158,367 | Â | Â | 171,677 | Â | -8 | % | |||||||
| Total deposits | 223,984 | 225,686 | -1 | % | |||||||||||
| Other liabilities | Â | 9,946 | Â | Â | 9,113 | Â | 9 | % | |||||||
| TOTAL LIABILITIES | Â | 233,930 | Â | Â | 234,799 | Â | 0 | % | |||||||
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| SHAREHOLDERS' EQUITY | 20,809 | 15,567 | 34 | % | |||||||||||
| TOTAL LIABILITIES AND | Â | Â | |||||||||||||
| SHAREHOLDERS' EQUITY | $ | 254,739 | Â | $ | 250,366 | Â | 2 | % | |||||||
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| Book value per share | $ | 1.96 | $ | 4.92 | |||||||||||
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| REGULATORY CAPITAL RATIOS | |||||||||||||||
| Leverage ratio | 10.87 | % | 8.26 | % | |||||||||||
| Tier 1 risk-based capital ratio | 15.63 | % | 11.75 | % | |||||||||||
| Total risk-based capital ratio | 17.51 | % | 14.62 | % | |||||||||||
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| ASSET QUALITY METRICS | |||||||||||||||
| ALLL as a percentage of total loans and leases | 2.93 | % | 3.60 | % | |||||||||||
| Non-performing assets as a percentage of | |||||||||||||||
| total loans and leases + OREO | 5.00 | % | 12.43 | % | |||||||||||
| Non-performing assets as a percentage of | |||||||||||||||
| total equity + ALLL (Texas ratio) | 31.97 | % | 100.93 | % | |||||||||||
Contacts:
NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.com
