On Wednesday, California Community Bank released their unaudited second quarter 2011 financial results. For the second quarter of 2011, they reported net income of $212,000, or basic earnings per share of 10 cents. This is in comparison to net income of $338,000, or basic earnings per share of 16 cents, for the comparable period of the prior year. Net income for the first six months of the year was $381,000, or basic earnings per share of 18 cents, versus net income of $598,000, or basic earnings per share of 28 cents, for the first six months of 2010.
California Community Bank’s provision for income taxes amounted to $295,000 for the six-month period ending June 30, 2011. Their earnings were not fully taxable for the comparable period last year and therefore, they allocated no provision. Concerning pre-tax income, the Bank reported $676,000 for the first half of 2011. This is in comparison to $598,000 for the comparable period in 2010, a year-over-year increase of $78,000, or 13 percent, between the two periods.
They finished the second quarter of 2011 with an asset base of $235,705,000. This represents an increase of $17,149,000, or 8 percent, from the end of June 2010. Total deposits were $209,694,000, up $18,832,000, or 10 percent, over the same period a year prior. As of June 30, 2011, total gross loans net of deferred fees (the primary revenue driver for the Bank) stood at $154,157,000. This is in comparison to $158,465,000 at June 30, 2010, a decrease of $4,308,000, or 3 percent.
Mr. Larry D. Hartwig, CEO, commented, “We are pleased to report that a combination of reduced funding costs and strategic loan portfolio management continues to be effective in delivering improved operating results. Despite an increase in non-performing loans, asset quality remained at a very manageable level during this slowly healing economy – and the organic growth of core deposits drove a 27 percent year-over-year reduction in our interest expense.
“Overall, we ended the quarter with over $235 million in total assets and recorded a small increase in year-to-date net interest income on reduced loan outstandings. The year-to-date story continues to reflect that profitability has been limited by excess liquidity, quality loan growth is still a challenge, operating costs are well controlled, and there are few attractive investment alternatives in securities. Our efforts did allow us to experience moderate loan growth during the first half of 2011, although throughout most of 2010, loan demand reflected the prevailing negative economic headwinds contributing toward the year-over-year decline in our loan portfolio. All of this is evidence of a sluggish recovery in the local economy. Management remains focused on normalized profitability and continued expense control for the year ahead. We have confidence in the core strengths of our franchise and continue to aggressively manage loan quality with the expectation of economic growth obtaining greater traction in the future.
Mr. Hartwig commented further, “Capital ratios remain very strong and we continue to seek quality loan originations to augment our conservatively underwritten loan portfolio. In this economy, we also know that loan growth must be driven by market share gains rather than by increased economic activity. We also want to recognize the valuable contributions of our highly professional staff in making California Community Bank a premier bank committed to providing our customers with ‘Real Solutions. Personally Delivered’.”
Headquartered in Escondido, CA, California Community Bank is a full service commercial bank. Currently, they operate four branches; these are in Escondido, Encinitas, San Diego, and Vista, California. The Bank opened for business on August 11, 2003, and on November 26, 2003, they went public on the Over The Counter Bulletin Board (OTCBB).
For more information visit: www.calcommunitybank.com
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