Orange County Business Bank Announces Financial Results

  Orange County Business Bank Announces Financial Results

Business Wire

IRVINE, Calif. -- November 03, 2012

Orange County Business Bank (the “Bank”) (OTCBB: OCBB) announced financial
results for the three months and nine months ended September 30, 2012.

The Bank’s net income for the three months ended September 30, 2012 was $693
thousand versus a net loss of $84 thousand for the same period in 2011. The
Bank reported net income for the first nine months of 2012 of $567 thousand
versus a net loss of $221 thousand for the same period in 2011.

The Bank’s net interest income for the three months ended September 30, 2012
was $1.0 million versus $1.3 million a year ago. The difference of $300
thousand in net interest income was primarily driven by a decrease in the
total loans outstanding. As the economy has stagnated, the Bank has not been
able to replace the loans that have paid off. The provision for loan and lease
losses was a benefit of $1 million. Non-interest income for the three months
ended September 30, 2012 was $420 thousand versus $166 thousand for the same
period last year as the Bank repositioned its investment securities portfolio
and earned increased gains from the corresponding sale of securities comparing
this quarter to the same quarter a year ago. Non-interest expense was up for
the third quarter of 2012 over the same period in 2011, $1.8 million versus
$1.6 million, respectively due to restructuring costs and legal fees.

Net interest income after the release of reserves from the allowance for loan
and lease losses for the nine months ended September 30, 2012 was $4.5 million
versus $4.2 million for the same period in 2011. The difference of $300
thousand was due to a decrease in loan interest income. Non-interest income
for the first nine months of 2012 was $1.1 million versus $485 thousand for
the same period in 2011 due to the increase in gains on sales of investment
securities. Non-interest expense was $5.0 million for the nine months ended
September 30, 2012 versus $4.9 million for the same period in 2011.

As of September 30, 2012, the Bank had a ratio of Shareholders’ Equity to
Total Assets of 22.6%. At September 30, 2012, the Bank’s assets totaled $172.5
million, with loans totaling $78.8 million, and deposits totaling $117.5
million. The Bank’s capital ratios continued to far exceed regulatory
guidelines for “well-capitalized” institutions at September 30, 2012.

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 administrative 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.

                As of and for the                         As of and for the
                  Three Months Ended September 30,             Nine Months Ended September 30,
                   2012             2011                 2012            2011      
Operating
Data
Interest          $ 1,291,000           $ 1,605,000            $ 4,206,000          $ 5,117,000
income
Interest           250,000             300,000              752,000            935,000   
expense
Net interest        1,041,000             1,305,000              3,454,000            4,182,000
income
Reduction in
allowance for      (1,000,000  )        -                    (1,000,000 )        -         
loan and
lease losses
Net interest
income after
reduction in
allowance
for loan and        2,041,000             1,305,000              4,454,000            4,182,000
lease losses
Non-interest        420,000               166,000                1,107,000            485,000
income
Non-interest       1,768,000           1,591,000            4,994,000          4,924,000 
expense
Income before
provision for       693,000               (120,000    )          567,000              (257,000  )
income taxes
Provision for      -                   (36,000     )         -                  (36,000   )
income taxes
Net income        $ 693,000            $ (84,000     )        $ 567,000           $ (221,000  )
                                                                                    
Per Share
Data and
Other Ratios
Net Earnings
(loss) –          $ 0.15                $ (0.02       )        $ 0.12               $ (0.05     )
Basic
Return (loss)
on Average          1.59        %         (0.18       %)         0.44       %         (0.16     %)
Assets
Return (loss)
on Average          7.28        %         (0.88       %)         1.98       %         (0.77     %)
Equity
Net Interest        2.48        %         2.84        %          2.82       %         3.06      %
Margin
                                                                                    
                                                                                    
                  September 30,         December 31,
                  2012                  2011
Balance Sheet
Data and
Related
Ratios
Total Assets      $ 172,547,000         $ 168,690,000
Total Loans         78,812,000            103,536,000
Allowance for
Loan Losses         1,928,000             2,849,000
(ALLL)
Investment          48,848,000            34,688,000
Securities
Total               117,500,000           108,267,000
Deposits
Total
Shareholders’       39,001,000            38,365,000
Equity
ALLL as a
Percentage of       2.45        %         2.75        %
Total Loans
Book Value        $ 8.25                $ 8.12
Actual Number
of Shares           4,724,576             4,724,576
Outstanding

Contact:

Orange County Business Bank
JP Gough
Chairman & CEO
Phone: (949) 221-0001
Fax: (949) 225-1500
jpgough@ocbusinessbank.com
or
Victor E. Guerrero
Executive Vice President
Chief Financial Officer
Phone: (949) 999-2642
Fax: (949) 225-1500
vguerrero@ocbusinessbank.com
 
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