Orange County Business Bank (the “Bank”) (OTCBB:OCBB) announced
financial results for the period ended September 30, 2014.
The Bank’s net income for the nine months ended September 30,
2014 was $2.3 million versus net income of $755 thousand for the
same period in 2013. The Bank reported net income for the third
quarter of 2014 of $2.2 million versus net income of $106 thousand
for the same period in 2013.
The Bank’s net interest income for the nine months ended
September 30, 2014 was $4.5 million versus $4.2 million for the
same period in 2013. Net interest income for the three months ended
September 30, 2014 was up slightly at $1.7 million versus $1.6
million a year ago.
The Bank continues to have success in recovering money on
problem loans as they pay off or pay down their contractual
obligations. These problem loans had previously been written down
as required under accounting and regulatory requirements. The Bank
experienced its largest principal and interest recovery from a
single borrower during the third quarter of 2014 allowing for the
release of the allowance back into income during the three months
ended September 30, 2014 of $1.9 million compared to no provision
or release of the allowance for loan and lease losses during the
same period in 2013. For the first nine months of 2014, the Bank
has released $2.1 million of the allowance back into income
compared to a release of $759 thousand for the same period a year
ago.
As a result of the Bank’s net income in addition to the
active improvement in the performance of the Bank’s investment
portfolio during the first nine months of the year, total
shareholders’ equity increased by $3.5 million.
Non-interest income for the nine months ended September 30, 2014
was $409 thousand versus $379 thousand for the same period in 2013.
Non-interest income for the third quarter of 2014 was $139 thousand
versus $119 thousand for the same period last year.
The Bank’s non-interest expense for the nine months ended
September 30, 2014 as well as the same period for 2013 was $4.6
million each, respectively. Non-interest expense was down for the
third quarter of 2014 over the same period in 2013, $1.5 million
versus $1.6 million, respectively.
In addition to continued profitability, the Bank grew assets by
more than 8% during the first nine months of 2014. At September 30,
2014, the Bank’s assets totaled $201.6 million, with loans totaling
$122.6 million, and deposits totaling $141.6 million. As of
September 30, 2014, the Bank had a ratio of Shareholders’ Equity to
Total Assets of 20.1%. The Bank’s capital ratios continue to far
exceed regulatory guidelines for “well-capitalized”
institutions.
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’s services include a broad selection of
depository as well as business loans and commercial real estate
financing products uniquely designed for each client. The Bank
maintains its offices at 17901 Von Karman, Suite 100, Irvine,
California 92614. 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.
Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013 2014
2013 Operating Data Interest income $
1,819,000 $ 1,766,000 $ 4,981,000 $ 4,657,000 Interest expense
163,000 165,000 476,000
453,000 Net interest income 1,656,000 1,601,000
4,505,000 4,204,000 Provision for loan and lease losses
(1,922,000 ) - (2,079,000 ) (759,000 )
Net interest income after provision for loan and lease losses
3,578,000 1,601,000 6,584,000 4,963,000 Non interest income 139,000
119,000 409,000 379,000 Non interest expense 1,522,000
1,614,000 4,648,000
4,587,000 Income before provision for income taxes 2,195,000
106,000 2,345,000 755,000 Provision for income taxes -
- - - Net income $
2,195,000 $ 106,000 $ 2,345,000 $ 755,000
Per Share Data and Other Ratios Net Earnings – Basic
$ 0.46 $ 0.02 $ 0.50 $ 0.16 Return on Average Assets 4.34 % 0.21 %
1.62 % 0.55 % Return on Average Equity 22.66 % 1.15 % 8.20 % 2.64 %
Net Interest Margin 3.37 % 3.31 % 3.24 % 3.20 %
30-Sep-14 31-Dec-13 Balance Sheet Data and Related Ratios Total
Assets $ 201,627,000 $ 186,448,000 Total Loans 122,558,000
109,766,000 Allowance for Loan Losses (ALLL) 1,800,000 1,698,000
Investment Securities 52,093,000 58,125,000 Total Deposits
141,618,000 129,953,000 Total Shareholders’ Equity 40,602,000
37,077,000 ALLL as a Percentage of Total Loans 1.47 % 1.55 % Book
Value $ 8.59 $ 7.85 Actual Number of Shares Outstanding 4,724,576
4,724,576
Orange County Business BankJP GoughChairman & CEOPhone:
949-221-0001Fax: 949-225-1500jpgough@ocbusinessbank.comorVictor E.
GuerreroExecutive Vice PresidentChief Financial OfficerPhone:
949-999-2642Fax: 949-225-1500vguerrero@ocbusinessbank.com