NorCal Community Bancorp (the "Company") (OTC Bulletin Board: NCLC), parent company for Bank of Alameda, today reported financial results for 2010. For the year ended December 31, 2010 the Company reported a net loss of $5.957 million, or $1.43 per diluted common share. This compares to a net loss of $5.029 million or $1.60 per diluted common share for the year ended December 31, 2009.
For the three months ended December 31, 2010 the Company reported a net loss of $1.968 million, or $0.27 per diluted common share, compared to a net loss of $4.407 million, or $1.41 per diluted common share for the same period in 2009. Included in the fourth quarter 2009 loss was the addition of a valuation allowance of $2.5 million set up against existing deferred tax assets. The valuation allowance increased by $2.8 million in 2010 to $5.3 million, effectively reducing the calculated tax benefits for 2010 and 2009 by $2.9 million and $2.1, respectively. Prospective earnings or tax law changes could prompt the Company to reevaluate the assumptions used to establish the valuation allowance.
Losses associated with the Bank's construction and land development loan portfolio continued to plague the Company's balance sheet in 2010. Net loan charge-offs for the twelve months ended December 31, 2010 were $5.6 million or 2.98% of average loans outstanding, down from the $8.8 million in net loan charge-offs, or 3.82% of average loans outstanding for 2009. Additionally, the Company had other real estate impairment charges of $1.1 million during 2010 compared to $271,000 reported in 2009. President and CEO, Stephen G. Andrews stated, "We made significant progress in the second half of 2010 toward reducing problem assets, and the associated charge-offs and collection costs associated with carrying those assets. This milestone is a critical step toward improving our operating results."
Total non-performing assets at December 31, 2010 were $13.5 million, down $5.5 million from the $19.0 million in non-performing assets reported at December 31, 2009 and $8.5 million, or 38% decrease from the $22.0 million reported at the end of the third quarter 2010.
As of December 31, 2010, total assets were $255.7 million, up from $248.2 million at December 31, 2009. Total deposits increased $5.9 million to $225.9 million at December 31, 2010, compared to $220.0 million at December 31, 2009. Total loans and leases decreased $40.0 million, or 19.7% to $163.0 million at December 31, 2010 compared to $203.0 million at December 31, 2009.
The Company announced in November 2010 that it raised $7.45 million in new capital through a private placement of its common stock, primarily with institutional investors, officers and directors. Andrews commented, "The success of raising new capital reaffirmed the ongoing value of our banking franchise and the support of our business model by the investment community." FIG Partners, LLC acted as sole placement agent for this offering.
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 December 31, 2010 stood at 17.9% and 17.6%, respectively, at the Company and Bank. Those ratios are in excess of the 10% required by regulators to maintain "well capitalized" status.
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) | |||||||||||||||||||||||||||
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Three Months Ended | Year Ended | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
FOR THE PERIOD: | 2010 | 2009 | Â | Â | Change | 2010 | 2009 | Â | Â | Change | |||||||||||||||||
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Net interest income | $ | 2,378 | $ | 2,801 | -15 | % | $ | 9,945 | $ | 12,131 | -18 | % | |||||||||||||||
Provision for loan and lease losses | 1,460 | 3,300 | -56 | % | 5,845 | 7,350 | -20 | % | |||||||||||||||||||
Noninterest income | 195 | 219 | -11 | % | 855 | 891 | -4 | % | |||||||||||||||||||
Noninterest expense | Â | 3,167 | Â | Â | 3,012 | Â | 5 | % | Â | 10,996 | Â | Â | 10,276 | Â | 7 | % | |||||||||||
(Loss) Income before provision for income taxes | (2,054 | ) | (3,292 | ) | -38 | % | (6,041 | ) | (4,604 | ) | 31 | % | |||||||||||||||
Provision for income tax expense | Â | (86 | ) | Â | 1,115 | Â | Â | (84 | ) | Â | 425 | Â | |||||||||||||||
Net (loss) income | $ | (1,968 | ) | $ | (4,407 | ) | 55 | % | $ | (5,957 | ) | $ | (5,029 | ) | -18 | % | |||||||||||
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Basic (loss) earnings per share | $ | (0.27 | ) | $ | (1.41 | ) | -81 | % | $ | (1.43 | ) | $ | (1.60 | ) | -11 | % | |||||||||||
Diluted (loss) earnings per share | $ | (0.27 | ) | $ | (1.41 | ) | -81 | % | $ | (1.43 | ) | $ | (1.60 | ) | -11 | % | |||||||||||
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Average shares outstanding | 7,200,700 | 3,133,615 | 4,166,327 | 3,133,615 | |||||||||||||||||||||||
Diluted average shares for the period | 7,200,700 | 3,133,615 | 4,166,327 | 3,133,615 | |||||||||||||||||||||||
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SELECTED FINANCIAL RATIOS (Annualized): | |||||||||||||||||||||||||||
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Return on average assets | -3.00 | % | -6.64 | % | -2.35 | % | -1.90 | % | |||||||||||||||||||
Return on average equity | -42.49 | % | -83.74 | % | -33.48 | % | -23.11 | % | |||||||||||||||||||
Yield on earnings assets | 4.17 | % | 5.00 | % | 4.55 | % | 5.60 | % | |||||||||||||||||||
Cost of funds | 0.65 | % | 0.97 | % | 0.72 | % | 1.26 | % | |||||||||||||||||||
Net interest margin | 3.72 | % | 4.31 | % | 4.04 | % | 4.64 | % | |||||||||||||||||||
Efficiency ratio | 123.09 | % | 99.75 | % | 101.82 | % | 78.68 | % | |||||||||||||||||||
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AT PERIOD END: | |||||||||||||||||||||||||||
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Loans and leases | $ | 163,017 | $ | 203,022 | |||||||||||||||||||||||
Allowance for loan and lease losses | $ | 5,820 | $ | 5,393 | |||||||||||||||||||||||
Assets | $ | 255,676 | $ | 248,242 | |||||||||||||||||||||||
Shareholders' equity | $ | 20,599 | $ | 19,314 | |||||||||||||||||||||||
Deposits | $ | 225,960 | $ | 220,014 | |||||||||||||||||||||||
Total risk-based capital ratio - Consolidated | 17.88 | % | 14.22 | % | |||||||||||||||||||||||
Total risk-based capital ratio - Bank of Alameda | 17.56 | % | 14.13 | % | |||||||||||||||||||||||
Allowance for loan and lease losses to total | |||||||||||||||||||||||||||
loans and leases | 3.57 | % | 2.66 | % | |||||||||||||||||||||||
Non-performing assets to total assets | 5.30 | % | 7.65 | % | |||||||||||||||||||||||
Common shares outstanding | 10,613,244 | 3,166,755 |
Contacts:
NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.com