THOUSAND OAKS, CA--(Marketwire - February 22, 2009) - California Oaks State Bank (
OTCBB:
COSB),
a community business bank with assets of $121.4 million, today reported a
net loss for 2008 of $1,088,212 or $0.73 per diluted share, compared to
income of $262,482 or $0.17 per diluted share in 2007.
Total assets ended 2008 at $121.4 million with loans and deposits at $107.6
million and $90.3 million respectively. Total assets by comparison from
2007 were $106.5 million with loans and deposits of $87.8 million and $76.8
million respectively. The growth totaled $19.8 million in loan growth and
$13.5 million in deposit growth. During the fourth quarter of 2008, the
Bank grew its loan portfolio from $105.1 million to $107.6 million. The
growth in loans can be attributed to the increase in the commercial loan
portfolio while we continue to see shrinking in the real estate and
construction loan portfolios. There has been a concerted effort to
reposition the portfolio from riskier construction lending to more typical
commercial lending.
The Bank saw its net deposit base increase $13.5 million primarily in
certificates of deposits while demand and other interest bearing deposits
decreased over the last year. FHLB borrowings increased $2 million in
2008.
The Bank's net interest margin, as a percentage of total average assets for
2008, decreased 178 basis points to 4.89% versus 6.67% in 2007. The Bank's
net interest income fell by $1,170,000 in 2008 as a result of a decrease in
the prime lending rate of 400 basis points during the year.
The Bank allocated $1,648,000 to its loan loss reserves to accommodate the
increased stress in the loan portfolio. During the fourth quarter the Bank
saw an acceleration of past due loans based on continuing economic problems
in the U.S. economy. One of the sectors facing increased stress is the
construction industry. COSB has three construction loans remaining in its
construction portfolio totaling $2.6 million. All three loans are on
nonaccrual and are receiving extra management attention. John Nerland,
COSB President & CEO, noted, "We are diligent about problem loan reports
and making sure we are recognizing collateral values in this ever changing
real estate market."
The Bank's capital ratios remain strong with Tier 1 risk based capital at
11.9%. The Bank remains highly capitalized as far as regulatory entities
are concerned, with total risk based capital of 13.2%. In December 2007,
the Board of Directors authorized a stock buyback of $500,000 of the
Company's shares for the period of one year at the Bank's discretion. Due
to the current economic situation, the Board has decided to conserve
capital and not buyback shares. In December 2008, the Bank received
preliminary approval for $3.3 million in TARP funding from the U.S.
Treasury Capital Program and on January 23, 2009, the Bank received the
TARP capital funding.
Nerland noted, "Over the past year the Bank has made numerous improvements
and changes in the way we do business. We have downsized the number of
employees of the Bank in an effort to become more efficient while
increasing the asset size of the Bank. These two initiatives were not
enough to counteract the dropping in rates and the deterioration of credit
quality caused by the down turn in the economy. Overall our financial
results for 2008 are below our expectations, but the underlying operations
of the Bank and the capital that we maintain provide a solid foundation for
which we will continue to grow."
Visit the California Oaks State Bank Web site at
www.caloaks.com for more
information
About California Oaks State Bank
California Oaks State Bank (
OTCBB:
COSB) with $122 million in assets is
located in Ventura County with offices in Thousand Oaks and Simi Valley and
a Loan Production Office located in Walnut Creek, Calif. California Oaks
State Bank was founded in 1998 as a locally owned community business bank.
The bank provides a full range of products and services including
commercial and real estate loans as well as cash management products and
deposit services. Its unique capability in diversified lending in addition
to its customary community bank credit products help its customers meet
their cash management goals.
Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995, and are subject to the safe harbors created by the act. These
forward-looking statements refer to the Company's current expectations
regarding future operating results, and growth in loans, deposits, and
assets. These forward looking statements are subject to certain risks and
uncertainties that could cause the actual results, performance, or
achievements to differ materially from those expressed, suggested, or
implied by the forward looking statements. These risks and uncertainties
include, but are not limited to (1) the impact of changes in interest
rates, a decline in economic conditions, and increased competition by
financial service providers on the Company's results of operation, (2) the
Company's ability to continue its internal growth rate, (3) the Company's
ability to build net interest spread, (4) the quality of the Company's
earning assets, and (5) governmental regulations.
BALANCE SHEET
December 31, 2008 (Audited) (000)
12/31/2008 12/31/2007
----------- -----------
ASSETS
Cash and Due from Banks $ 4,517 $ 4,833
Federal Funds Sold 1,280 5,775
Investment Securities 4,472 6,077
Loans (net) 105,251 86,677
Other Assets 5,847 3,160
----------- -----------
Total Assets $ 121,366 $ 106,522
=========== ===========
LIABILITIES & SHAREHOLDERS EQUITY
Demand Deposits $ 29,983 $ 34,155
Money Market and NOW Accounts 22,876 26,391
Savings Accounts 3,594 4,056
Time Deposits Under $100,000 22,585 3,056
Time Deposits $100,000 and Over 11,274 9,170
----------- -----------
Total Deposits 90,312 76,828
FHLB Borrowings 14,000 14,000
Other Liabilities 835 609
----------- -----------
Total Liabilities 107,147 91,437
Total Equity 14,219 15,085
----------- -----------
Total Liabilities and Equity $ 121,366 $ 106,522
=========== ===========
STATEMENT OF EARNINGS
December 31, 2008 (Audited)
(000)
12/31/2008 12/31/2007
---------- ----------
Interest Income $ 7,883 $ 8,804
Interest Expense 1,849 1,602
---------- ----------
Net Interest Income 6,034 7,202
Provision for Loan Loss 1,648 664
---------- ----------
Net Interest Income after Provision 4,386 6,538
Non Interest Income 873 926
---------- ----------
Total Operating Income 5,234 7,464
Total Non Interest Expense 6,347 6,953
---------- ----------
Income (Loss) Before Income Taxes (1,088) 511
Income Taxes 0 249
---------- ----------
Net Income (Loss) $ (1,088) $ 262
========== ==========
RATIOS - Annualized 12/31/2008 12/31/2007
---------- ----------
Earnings Per Share ($ 0.73) $ 0.18
Earnings Per Share - Diluted ($ 0.73) $ 0.17
Book Value Per Share $ 9.58 $ 10.20
Return on Assets (0.88%) 0.24%
Return on Equity (7.24%) 1.78%
Contact Information: Media Contact:
John Nerland
President and CEO
(805) 413-0111
johnn@caloaks.com