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NorCal Community Bancorp Announces 2010 Financial Results

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					NorCal Community Bancorp Announces 2010
Financial Results
March 01, 2011 05:51 PM Eastern Time 

ALAMEDA, Calif.--(EON: Enhanced Online News)--NorCal Community Bancorp (the “Company”) (OTC
Bulletin Board: NCLC), parent company for Bank of Alameda, today reported financial results for 2010. For the
year ended December 31, 2010 the Company reported a net loss of $5.957 million, or $1.43 per diluted common
share. This compares to a net loss of $5.029 million or $1.60 per diluted common share for the year ended
December 31, 2009.

For the three months ended December 31, 2010 the Company reported a net loss of $1.968 million, or $0.27 per
diluted common share, compared to a net loss of $4.407 million, or $1.41 per diluted common share for the same
period in 2009. Included in the fourth quarter 2009 loss was the addition of a valuation allowance of $2.5 million set
up against existing deferred tax assets. The valuation allowance increased by $2.8 million in 2010 to $5.3 million,
effectively reducing the calculated tax benefits for 2010 and 2009 by $2.9 million and $2.1, respectively.
Prospective earnings or tax law changes could prompt the Company to reevaluate the assumptions used to establish
the valuation allowance.

Losses associated with the Bank’s construction and land development loan portfolio continued to plague the
Company’s balance sheet in 2010. Net loan charge-offs for the twelve months ended December 31, 2010 were
$5.6 million or 2.98% of average loans outstanding, down from the $8.8 million in net loan charge-offs, or 3.82% of
average loans outstanding for 2009. Additionally, the Company had other real estate impairment charges of $1.1
million during 2010 compared to $271,000 reported in 2009. President and CEO, Stephen G. Andrews stated,
“We made significant progress in the second half of 2010 toward reducing problem assets, and the associated
charge-offs and collection costs associated with carrying those assets. This milestone is a critical step toward
improving our operating results.” 

Total non-performing assets at December 31, 2010 were $13.5 million, down $5.5 million from the $19.0 million in
non-performing assets reported at December 31, 2009 and $8.5 million, or 38% decrease from the $22.0 million
reported at the end of the third quarter 2010.

As of December 31, 2010, total assets were $255.7 million, up from $248.2 million at December 31, 2009. Total
deposits increased $5.9 million to $225.9 million at December 31, 2010, compared to $220.0 million at December
31, 2009. Total loans and leases decreased $40.0 million, or 19.7% to $163.0 million at December 31, 2010
compared to $203.0 million at December 31, 2009.

The Company announced in November 2010 that it raised $7.45 million in new capital through a private placement
of its common stock, primarily with institutional investors, officers and directors. Andrews commented, “The success
of raising new capital reaffirmed the ongoing value of our banking franchise and the support of our business model by
the investment community.” FIG Partners, LLC acted as sole placement agent for this offering.

The Company and its subsidiary, Bank of Alameda, both remain “well capitalized,” as defined under regulatory
capital guidelines. The total risk-based capital ratio at December 31, 2010 stood at 17.9% and 17.6%, respectively,
at the Company and Bank. Those ratios are in excess of the 10% required by regulators to maintain “well
capitalized” status.

A copy of the Company’s information and disclosure statement pursuant to Securities and Exchange Commission
Rule 15c2-11 can be found on the home page of the Company’s website at www.bankofalameda.com under the
Investor Relations section.

Cautionary Statement: This release may contain certain forward-looking statements that are subject to risks and
uncertainties that could cause actual results and events to differ materially from those stated herein. Words such as
“anticipate,” “believe,” “estimate,” “expect,” “should,” “intend,” “project,” and words or phrases of similar meaning
are intended to identify forward-looking statements. Management’s assumptions and projections are based on their
anticipation of future events and actual performance may differ materially from that projected.

NorCal Community Bancorp
FINANCIAL HIGHLIGHTS
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
                                  Three Months Ended                     Year Ended
                                  December 31,                           December 31,
FOR THE PERIOD:                   2010          2009              Change 2010         2009                      Change
Net interest income               $ 2,378       $ 2,801           -15 % $ 9,945       $ 12,131                  -18 %
Provision for loan and lease
                                    1,460         3,300           -56 %       5,845             7,350           -20 %
losses
Noninterest income                  195           219             -11 %       855               891             -4   %
Noninterest expense                 3,167         3,012           5 %         10,996            10,276          7    %
(Loss) Income before provision
                                    (2,054    ) (3,292       )    -38 %       (6,041       )    (4,604      ) 31 %
for income taxes
Provision for income tax
                                    (86       ) 1,115                         (84          )    425
expense
Net (loss) income                 $ (1,968    ) $ (4,407     )    55 % $ (5,957     ) $ (5,029    ) -18 %
Basic (loss) earnings per share $ (0.27       ) $ (1.41      )    -81 % $ (1.43     ) $ (1.60     ) -11 %
Diluted (loss) earnings per share $ (0.27     ) $ (1.41      )    -81 % $ (1.43     ) $ (1.60     ) -11 %
Average shares outstanding          7,200,700     3,133,615               4,166,327     3,133,615
Diluted average shares for the
                                    7,200,700     3,133,615                   4,166,327         3,133,615
period
SELECTED FINANCIAL
RATIOS (Annualized):
Return on average assets            -3.00     % -6.64        %                -2.35        %    -1.90       %
Return on average equity            -42.49    % -83.74 %                      -33.48       %    -23.11      %
Yield on earnings assets            4.17      % 5.00         %                4.55         %    5.60        %
Cost of funds                       0.65      % 0.97         %                0.72         %    1.26        %
Net interest margin                 3.72      % 4.31         %                4.04         %    4.64        %
Efficiency ratio                    123.09 % 99.75           %                101.82       %    78.68       %
AT PERIOD END:
Loans and leases                                                            $ 163,017          $ 203,022
Allowance for loan and lease
                                                                            $ 5,820            $ 5,393
losses
Assets                                                                      $ 255,676          $ 248,242
Shareholders' equity                                                        $ 20,599           $ 19,314
Deposits                                                                    $ 225,960          $ 220,014
Total risk-based capital ratio -
                                                                              17.88        % 14.22          %
Consolidated
Total risk-based capital ratio -
                                                                              17.56        % 14.13          %
Bank of Alameda
Allowance for loan and lease
losses to total
loans and leases                                                              3.57         % 2.66           %
Non-performing assets to total
                                                                              5.30         % 7.65           %
assets
Common shares outstanding                                                     10,613,244        3,166,755

Contacts
NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.com

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Description: ALAMEDA, Calif.--(EON: Enhanced Online News)--NorCal Community Bancorp (the “Company”) (OTC Bulletin Board: NCLC), parent company for Bank of Alameda, today reported financial results for 2010. For the year ended December 31, 2010 the Company reported a net loss of $5.957 million, or $1.43 per diluted common share. This compares to a net loss of $5.029 million or $1.60 per diluted common share for the year ended December 31, 2009. For the three months ended December 31, 2010 the Company reported a style='font-
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