News Column

Orange County Business Bank Announces Net Income

May 28, 2014

IRVINE, Calif.--(BUSINESS WIRE)-- Orange County Business Bank (the “Bank”) (OTCBB:OCBB) announced financial results for the three months ended March 31, 2014.

The Bank’s pre-provision net income for the three months ended March 31, 2014 was $12 thousand versus a net loss of $130 thousand for the same period in 2013. The improvement in operational profitability was driven by an increase in loans outstanding as well as increases in the generation of non-interest income. The Bank produced $12.4 million in new loans during the first quarter of 2014 after producing approximately $43 million for all of 2013. During the first quarter of 2013, the Bank reversed $575 thousand of provisions to the allowance for loan and lease losses versus no reversals for the same period in 2014. The reversal of provisions during the first quarter of 2013 resulted in net income of $445 thousand. The Bank’s net interest income for the three months ended March 31, 2014 was $1.5 million versus $1.2 million a year ago.

Non-interest income for the three months ended March 31, 2014 was $133 thousand versus $121 thousand for the same period last year. Non-interest expense was higher for the first quarter of 2014 over the same period in 2013, $1.6 million versus $1.5 million, respectively.

As of March 31, 2014, the Bank had a ratio of Shareholders’ Equity to Total Assets of nearly 20%. At March 31, 2014, the Bank’s assets totaled $192.0 million, with loans totaling $112.2 million, and deposits totaling $132.4 million. The Bank’s capital ratios continue to far exceed regulatory guidelines for “well-capitalized” institutions.

Orange County Business Bank offers 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 products as well as business loans and commercial real estate financing products uniquely designed for each client. 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
Three Months Ended March 31,
2014       2013
 
Operating Data
Interest income $ 1,608,000 $ 1,344,000
Interest expense   154,000     136,000  
Net interest income 1,454,000 1,208,000
Provision (benefit) for loan and lease losses   -     (575,000 )
Net interest income after provision (benefit)
for loan and lease losses 1,454,000 1,783,000
Non interest income 133,000 121,000
Non interest expense   1,575,000     1,459,000  
Income before provision for income taxes 12,000 445,000
Provision for income taxes   -     -  
Net income $ 12,000   $ 445,000  
 
Per Share Data and Other Ratios
Net Loss – Basic $ 0.00 $ 0.09
Return on Average Assets 0.03 % 1.06 %
Return on Average Equity 0.13 % 4.61 %
Net Interest Margin 3.23 % 3.05 %
 
 
31-Mar-1431-Dec-13
Balance Sheet Data and Related Ratios
Total Assets $ 192,019,000 $ 186,448,000
Total Loans 112,215,000 109,766,000
Allowance for Loan Losses (ALLL) 1,744,000 1,698,000
Investment Securities 57,154,000 58,125,000
Total Deposits 132,439,000 129,953,000
Total Shareholders’ Equity 37,644,000 37,077,000
ALLL as a Percentage of Total Loans 1.55 % 1.55 %
Book Value $ 7.97 $ 7.85
Actual Number of Shares Outstanding 4,724,576 4,724,576





Orange County Business Bank

JP Gough, Chairman & CEO

949-221-0001

jpgough@ocbusinessbank.com

or

Victor E. Guerrero

Executive Vice President

Chief Financial Officer

949-999-2642

vguerrero@ocbusinessbank.com

Source: Orange County Business Bank


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