SOURCE: Beach Business Bank
MANHATTAN BEACH, CA–(Marketwire – October 28, 2010) – Beach Business Bank (
“Bank”) is pleased to report its results of operations for the third
quarter of 2010, the year to date 2010, and the trailing 12 months which
includes the fourth quarter of 2009.
Third Quarter Highlights
-- Improving After-Tax Earnings. For the trailing 12 months, the Bank
earned $1,201,000, a historical earnings record for the Bank.
All three of the Bank's offices: Orange County, Long Beach and
Manhattan Beach, performed well in the quarter.
Third
(U.S. Third Second Quarter First 9 First 9
Dollars) Quarter 2010 Quarter 2010 2009 Months 2010 Months 2009
------------ ------------ ----------- ------------ -----------
Net Income 450,000 256,000 (5,895,000) 1,058,000 (5,693,000)
------------ ------------ ----------- ------------ -----------
-- Loan Growth and Improving Funding Quality. The Bank's niche lending
businesses to physicians and dental professionals and the Bank's SBA
lending practice showed strength, resulting in further loan
originations. Development of non-interest-bearing deposits was strong
during the quarter. The Bank's non-CD based deposits were 89% of total
deposits at the end of the third quarter.
9/30/2010 9/30/2010 9/30/2010
vs. vs. vs.
% growth 6/30/2010 12/31/2009 9/30/2009
--------- ---------- ----------
Net Loans (.04)% 13.51% 30.22%
--------- ---------- ----------
Total Assets 18.7% 18.5% 18.7%
--------- ---------- ----------
Demand deposits (non-interest-bearing) 11.9% 52.0% 56.5%
--------- ---------- ----------
Total Deposits 10.8% 22.71% 23.1%
--------- ---------- ----------
-- Total new loan commitments in the quarter amounted to more than
$20 million. Non-interest bearing demand deposits totaled $49.1 million
at quarter end. Overall deposits totaled $260.3 million at quarter end.
Total assets increased by $47.6 million, to $302.5 million at
quarter-end, as compared to $254.9 million for the same quarter end
last year.
Stronger Operating Performance
YTD
3Q 2010 2Q 2010 3Q 2009 YTD 2010 2009
-------- -------- ------- -------- -------
Return on Average Assets 0.60% 0.38% (9.08)% 1.52% (2.30)%
-------- -------- ------- -------- -------
Return on Average Common
Equity 6.09% 3.50% (68.21)% 14.41% (65.81)%
-------- -------- ------- -------- -------
Net Interest Margin 3.85% 3.98% 3.33% 3.92% 3.56 %
-------- -------- ------- -------- -------
Efficiency Ratio 65.79% 68.52% 144.56% 72.85% 110.35 %
-------- -------- ------- -------- -------
Tangible Book Value per
Common Share $ 7.30 $ 7.21 $ 7.10 $ 7.30 $ 7.10
-------- -------- ------- -------- -------
“We are pleased to be able to report these strong results,” commented Jim
Gray, the co-chairman of the Bank’s board of directors. He continued, “We
are committed to helping the small businesses in our market area to get
back to hiring new employees and increasing their business again. The
recently passed Small Business Bill that the President signed into law on
September 27 will be a huge benefit for business banks like ours, and for
our small business customers.”
Robert Franko, president and chief executive officer of the Bank,
commented, “Our team of skilled bankers has worked tirelessly to achieve
these results, by continuing to build our franchises among small businesses
in our local market areas and among medical professionals nationwide. To
support further growth we continue to make additional provisions from our
core earnings to give us the necessary balance sheet strength. Our local
community has continued to provide us with strong core deposit
relationships, even as our funding costs have continued to decline. We are
fortunate to be located in the finest market areas in the world, and to
have the support of so many excellent and enduring business relationships.”
Loan Portfolio and Credit Quality
-- The Bank's Allowance for Loan & Lease Losses (ALLL) stood at $6.2 million or 2.5% of loans outstanding at the quarter end. -- As of the quarter end, non-accrual loans stood at $5.0 million, with no other loans more than 30 days past due. -- The Bank had net charge-offs of $361,000 in the quarter. The Bank provided $520,000 to the ALLL in the quarter. -- As of the quarter end, the aggregate of non-accrual loans and OREO measured as a percentage of Capital and Reserves (sometimes referred to as the Texas Ratio) stood at 12.03%. -- At the quarter end, the Bank's Total Risk-based Capital Ratio was 14.89%, compared to the regulatory minimum of 10.0% to be "Well Capitalized." -- The Bank's other regulatory Capital measurements also continued to be significantly above the regulatory minimums for Well Capitalized. For example, the Bank's Tier 1 Risk-Based Capital was 13.62%, compared to the regulatory minimum of 6.0%, and the Bank's Tier 1 Leverage Ratio was 11.88%, compared to the regulatory minimum of 5.0%.
Financial statements in the form of the Bank’s Call Report, as filed with
the FDIC, will be available on the Bank’s web site at
www.beachbusinessbank.com, and should be available for review or
downloading from the FDIC web site at www.fdic.gov shortly after the end of
this month.
Beach Business Bank is headquartered at 1230 Rosecrans Avenue, Lobby Level,
in Manhattan Beach, and has two other full-service offices at 180 E. Ocean
Blvd. in Long Beach, CA and at 650 Town Center Drive in Costa Mesa, CA. The
Bank is first and foremost a community business bank serving Los Angeles,
Long Beach, the South Bay and Orange County residents and businesses. The
Bank also has a division named The Doctors Bank®, which serves physicians
and dentists nationwide. In addition, Beach Business Bank provides loans to
small businesses, focused around the SBA 7(a) and Express lending programs.
For more information on the Bank, please visit www.beachbusinessbank.com or
call toll-free to (866) 862-3878.
“Safe Harbor” statement under the Private Securities Litigation Reform Act
of 1995:
The financial information in this press release is based on our unaudited
financial results. Certain statements in this press release, including
statements regarding the anticipated development and expansion of the
Bank’s business, and the intent, belief, and current expectations of the
Bank, its directors, or its officers, are “forward-looking” statements (as
such term is defined in the Private Securities Litigation Reform Act of
1995). Such forward-looking statements are subject to risks and
uncertainties and therefore the Bank’s actual results may differ materially
from those expressed or implied by such forward-looking statements. The
risks and uncertainties that the Bank is subject to include, but are not
limited to, risks related to the local and national economy, including
fluctuations in interest rates and costs and changes in economic policy;
the ability of the Bank to perform in accordance with its plans;
competition; regulatory matters; and other risks detailed in its filings
with the State of California Department of Financial Institutions and the
Federal Deposit Insurance Corporation. The Bank cautions readers not to
place undue reliance on any forward-looking statements. The Bank does not
undertake, and specifically disclaims any obligation, to revise any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
Summary Financial Information
The following tables present relevant financial data from
Beach Business Bank's recent performance.
September December September
30, 2010 31, 2009 30, 2009
--------- --------- ---------
Balance Sheet Results (In thousands),
except per share data:
Total Assets $ 302,465 $ 255,321 $ 254,883
Gross Loans $ 245,496 $ 217,361 $ 193,687
Loans Held for Sale $ 1,542 $ 1,026 $ 4,285
Allowance for Loan Losses $ 6,188 $ 6,870 $ 6,819
Total Net Loans $ 237,765 $ 209,465 $ 182,582
Total Deposits $ 260,293 $ 212,083 $ 211,465
Other Real Estate Owned $ - $ 2,100 $ 2,399
Preferred Stock $ 6,078 $ 6,033 $ 6,018
Common Stock $ 29,618 $ 28,899 $ 28,680
Total Shareholders' Equity $ 35,696 $ 34,932 $ 34,698
Net Loans to Deposits 91.35% 98.77% 86.34%
ALLL to Loans HTM 2.54% 3.18% 3.60%
Equity to Assets 11.80% 13.68% 13.61%
Ending Shares outstanding 4,055,972 4,036,984 4,036,984
Ending Book Value per Common Share $ 7.30 $ 7.16 $ 7.10
Three Months Ended
September December September
30, 2010 31, 2009 30, 2009
--------- --------- ---------
Quarterly Operating Results (In
thousands):
Net Interest Income $ 2,780 $ 2,230 $ 2,041
Non-interest Income $ 57 $ 583 $ 302
Non-interest Expense** $ 1,866 $ 1,770 $ 3,387
Income Before Provision & Taxes $ 970 $ 1,043 $ (1,045)
Provision for Loan Losses $ 520 $ 900 $ 4,850
Income Tax Expense $ - $ - $ -
Net Income $ 450 $ 143 $ (5,895)
Quarterly Return on Average Assets* 0.60% 0.22% -9.08%
Quarterly Return on Average Equity* 5.05% 1.63% -58.11%
Quarterly Net Interest Margin* 3.85% 3.46% 3.33%
Quarterly Efficiency Ratio* 65.79% 62.93% 144.56%
Nine Months Ended
September September
30, 2010 30, 2009
--------- ---------
YTD Operating Results (In thousands):
Net Interest Income $ 7,909 $ 6,410
Non-interest Income $ 1,072 $ 1,060
Non-interest Expense $ 6,542 $ 8,243
Income Before Provision & Taxes $ 2,438 $ (773)
Provision for Loan Losses $ 1,380 $ 4,920
Income Tax Expense $ - $ -
Net Income $ 1,058 $ (5,693)
YTD Return on Average Assets* 0.38% -2.30%
YTD Return on Average Equity* 2.99% -14.24%
YTD Net Interest Margin* 3.92% 3.56%
YTD Efficiency Ratio* 72.85% 110.35%
*Percentages are reported on an annualized basis.
Source: FDIC quarterly Call Reports for Beach Business Bank for the
periods indicated.