NorCal Community Bancorp (the "Company") (OTC Bulletin Board:NCLC), parent company for Bank of Alameda, today reported a 2010 first quarter net loss of $2,083,000, or ($0.66) per diluted share, compared with net income of $340,000, or $0.11 per diluted share, for the same period a year ago.
The first quarter loss is attributable to loan loss provisions associated with the asset write-downs of real estate development and commercial loans. The Company provided $2.5 million to its allowance for loan and lease losses for the first three months of 2010 compared to $500,000 for the same period in 2009. President and CEO, Stephen G. Andrews stated, "We feel these substantial loan loss provisions and the associated chargeoffs reflect Bank of Alameda's realistic view of the current market values and the collectability of its problem loans as we peer around the corner into the future." Andrews further noted, "Management has made significant progress in repositioning the balance sheet during the last year by reducing loan portfolio concentrations hit hardest during the economic downturn." The Company decreased its total real estate construction and land development totals by approximately $41 million, or 56% at March 31, 2010 compared to March 31, 2009. The allowance for loan and lease losses stood at 2.85% of total loans and leases at March 31, 2010. Non-performing loans and OREO were 8.86% of total assets or $22.6 million.
As of March 31, 2010, total assets were $255.3 million, down from $267.1 million at March 31, 2009. Total loans and leases have decreased $48.3 million, or 20% to $189.6 million at March 31, 2010 compared to $237.9 million at March 31, 2009. Total deposits increased to $228.1 million at March 31, 2010, compared to $223.0 million at March 31, 2009.
Andrews noted, "As the Company reduced its loan exposure over the last year, deposit levels have increased, coming from small and medium-sized businesses that favor the community bank relationship model."
The Company and its subsidiary, Bank of Alameda both remain "well capitalized" as defined under regulatory capital guidelines. The total risk-based capital ratio at March 31, 2010 stood at 14.13% and 13.90%, respectively, at the Company and Bank, in excess of the 10% required by regulators to maintain "well capitalized" status. Andrews stated, "Our attention to expense levels, maintaining relatively high capital levels, and increasing loan loss reserve have enabled the Company to successfully navigate through this difficult market and will position the Company to participate in the market rebound.
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 | |||||||||||
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| Three Months Ended | |||||||||||
| March 31, | March 31, | % | |||||||||
| FOR THE PERIOD: | Â | 2010 | Â | Â | 2009 | Â | Change | ||||
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| Net interest income | $ | 2,673 | $ | 3,130 | -15 | % | |||||
| Provision for loan and lease losses | 2,510 | 500 | 402 | % | |||||||
| Noninterest income | 258 | 226 | 14 | % | |||||||
| Noninterest expense | Â | 2,504 | Â | Â | 2,356 | Â | 6 | % | |||
| (Loss) income before provision for income taxes | (2,083 | ) | 500 | -517 | % | ||||||
| Provision for income taxes | Â | - | Â | Â | 160 | Â | -100 | % | |||
| Net (loss) income | $ | (2,083 | ) | $ | 340 | Â | -713 | % | |||
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| Net (loss) income per basic share | $ | (0.66 | ) | $ | 0.11 | -700 | % | ||||
| Net (loss) income per diluted share | $ | (0.66 | ) | $ | 0.11 | -700 | % | ||||
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| Average shares outstanding | 3,166,755 | 3,130,814 | |||||||||
| Diluted average shares | 3,166,755 | 3,166,910 | |||||||||
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| SELECTED FINANCIAL RATIOS (Annualized): | |||||||||||
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| Return on average assets | -3.32 | % | 0.52 | % | |||||||
| Return on average equity | -43.95 | % | 5.64 | % | |||||||
| Average shareholders' equity to average assets | 7.55 | % | 9.20 | % | |||||||
| Net interest margin | 4.42 | % | 4.93 | % | |||||||
| Efficiency ratio | 85.45 | % | 70.20 | % | |||||||
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| AT PERIOD END: | |||||||||||
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| Loans and leases | $ | 189,645 | $ | 237,961 | |||||||
| Allowance for loan and lease losses | $ | 5,398 | $ | 6,907 | |||||||
| Assets | $ | 255,341 | $ | 267,054 | |||||||
| Shareholders' equity | $ | 17,270 | $ | 24,481 | |||||||
| Deposits | $ | 228,145 | $ | 223,008 | |||||||
| Total risk-based capital ratio - Consolidated | 14.13 | % | 14.73 | % | |||||||
| Total risk-based capital ratio - Bank of Alameda | 13.90 | % | 13.90 | % | |||||||
Allowance for loan and lease losses to total loans and leases | 2.85 | % | 2.90 | % | |||||||
| Non-performing assets to total assets | 8.86 | % | 5.75 | % | |||||||
| Common shares outstanding | 3,166,755 | 3,172,444 | |||||||||
Contacts:
NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.com
