THOUSAND OAKS, CA--(Marketwire - October 21, 2009) - California Oaks State Bank (
OTCBB:
COSB)
a community business bank with assets of $130.2 million, today reported net
income for the nine months of 2009 of $129,411 or $0.09 per share, compared
to net income of $140,391 or $0.09 per share in the same time period of
2008. Results for the 3rd quarter showed net income of $66,011 compared
to net income of $22,838 in the same quarter in 2008. Results in the 3rd
quarter were impacted positively by one-time gains on Other Real Estate
Owned that was sold in the 3rd quarter totaling $113,650 but was partially
offset by OREO expenses during the same time period of $40,222.
Total assets ended September 30, 2009 at $130.2 million with net loans and
deposits at $94.3 million and $96 million respectively. By comparison,
total assets for 3rd quarter 2008 were $123.2 million with net loans and
deposits of $103.9 million and $90 million respectively. The year over
year decrease in loans of $9.6 million can be attributed to the Banks
efforts to exit lending relationships where the full deposit relationship
is not at Cal Oaks which also benefits the Banks increased liquidity.
On the deposit side, the Bank saw an increase of $6 million primarily due
to a boost in core deposits of $8.2 million while certificate of deposits
decreased $2.2 million. This shift has benefited the Bank's stable deposit
costs. FHLB borrowings decreased, compared to a year ago, by $1.0 million.
Subsequently, the Bank has paid off a $5 million FHLB advance at a rate of
3.89% due to mature in November 2009. The primary reason for early payoff
was to use existing liquidity from core deposits to reduce wholesale
funding which in turn will improve the net interest margin. The current
focus for the Bank is to increase core deposits, fund loans to worthy loan
relationships, improve its liquidity position and increase shareholder
value.
The net interest margin as a percentage of average assets ended the 3rd
quarter at 3.98% versus 4.03% in the 2nd quarter of 2009. The Bank's net
interest margin has remained stable through the first 9 months of 2009 as
the decrease in the prime lending rate (75 basis points), which occurred
late in 2008 and carried into 2009, has been offset by the Bank's ability
to reduce its dependence on wholesale funding during the first nine months
of 2009 and the higher costs associated with this type of funding.
Currently, the Bank maintains a loan loss reserve of 2.01% of the total
loans outstanding and believes it is adequately reserved based on the
challenges that exist in the economy today and the quality of the loan
portfolio. Total non-performing assets at September 30, 2009 were
$993,000, a decrease of $2,119,000 from June 30, 2009. Included in the
non-performing assets were SBA loans totaling $730,000 made by the Bank
that have government guaranties of $411,000. Non-performing assets
represent 0.80% of total assets at September 30, 2009 compared to 2.45% at
the end of the prior quarter. The quarter's decline in nonperforming
assets was due to the successful resolution of a number of problem loans
and the sale of other real estate assets. Nonperforming assets at
September 30, 2009 consisted of $993,000 of loans on nonaccrual status and
$0 in other real estate owned. Nonperforming loans consist of four loans,
two of which are SBA loans, one is the remnant of construction loan
participation and one is a consumer loan. Past due loans over 30 days
totaled $0 at September 30, 2009 compared to $1,286,000 at June 30, 2009.
John Nerland, the Bank's President and CEO noted, "Through the concerted
effort and aggressive management of staff I am extremely pleased to report
the progress we have made in the nonperforming loan category and in the
lack of past due loans over 30 days. This was a big step for the Bank to
work through a number of problem relationships and to emerge with a gain on
the books."
Capital ratios remain strong with Tier 1 risk at 16.12%. California Oaks
State Bank remains highly capitalized as far as the regulatory entities are
concerned, with total risk based capital of 17.38%. In today's Banking
environment, this is a highly positive position. As was previously
reported, the Bank received capital funding in January for $3.3 million
that the government made available under the U.S. Treasury Capital Purchase
Plan (TARP). Upon approval, $3.3 million of preferred stock was sold to
the U.S. Treasury to help fortress the balance sheet and enable the Bank to
increase lending efforts. The government invests only in "healthy, viable
banks."
Visit the California Oaks State Bank Web site at
www.caloaks.com for more
information and updates on new products as they become available.
About California Oaks State Bank
California Oaks State Bank (
OTCBB:
COSB), with $130 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
For the Quarters Ended September 30, 2009 and 2008
(Unaudited) (000)
9/30/2009 9/30/2008
-------------------- --------------------
ASSETS
Cash and Due from Banks $ 12,705 $ 5,624
CD's with Other Financial
Institutions 16,089 0
Federal Funds Sold 0 2,785
Investment Securities 1,638 5,108
Loans (net) 94,312 103,873
Other Assets 5,497 5,852
-------------------- --------------------
Total Assets $ 130,241 $ 123,242
==================== ====================
LIABILITIES & SHAREHOLDERS EQUITY
Demand Deposits $ 32,263 $ 31,877
Money Market and NOW Accounts 31,020 22,876
Savings Accounts 3,606 3,904
Time Deposits Under $100,000 14,430 22,036
Time Deposits $100,000 and Over 14,725 9,322
-------------------- --------------------
Total Deposits 96,044 90,015
FHLB Borrowings 16,000 17,000
Other Liabilities 624 838
-------------------- --------------------
Total Liabilities 112,668 107,853
Treasury Preferred Stock 3,307 0
Common Shareholders' Equity 14,266 15,389
-------------------- --------------------
Total Equity 17,573 15,389
-------------------- --------------------
Total Liabilities and Equity $ 130,241 $ 123,242
==================== ====================
STATEMENT OF EARNINGS
For Nine Months Ended September 30, 2009 and 2008
(Unaudited) (000)
9/30/2009 9/30/2008
----------- -----------
Interest Income $ 5,022 $ 6,062
Interest Expense 1,244 1,356
----------- -----------
Net Interest Income 3,778 4,706
Provision for Loan Loss 185 359
----------- -----------
Net Interest Income after Provision 3,593 4,347
Non Interest Income 968 632
----------- -----------
Total Operating Income 4,561 4,979
Total Non Interest Expense 4,432 4,728
----------- -----------
Net Income Before Tax & Extraordinary 129 251
Tax and Extraordinary Items 0 110
----------- -----------
Net Income (Loss) $ 129 $ 141
----------- -----------
RATIOS 9/30/2009 9/30/2008
----------- -----------
Earnings Per Share $ 0.09 $ 0.09
Book Value Per Share $ 9.54 $ 10.36
Return on Assets 0.14% 0.15%
Return on Equity 0.21% 1.23%
Contact Information: Media Contact:
John Nerland
President and CEO
(805) 413-0111