BALANCE SHEET
June 30, 2009 (Unaudited) (000)
6/30/2009 6/30/2008
------------- -------------
ASSETS
Cash and Due from Banks $ 7,266 $ 5,790
CDs with Other Financial Institutions 8,188 0
Federal Funds Sold 5,420 935
Investment Securities 1,752 7,682
Loans (net) 98,191 103,293
Other Assets 6,073 6,140
------------- -------------
Total Assets $ 126,890 $ 123,840
============= =============
LIABILITIES & SHAREHOLDERS EQUITY
Demand Deposits $ 31,894 $ 35,560
Money Market and NOW Accounts 27,975 20,488
Savings Accounts 3,697 4,133
Time Deposits Under $100,000 14,621 20,167
Time Deposits $100,000 and Over 14,453 10,402
------------- -------------
Total Deposits 92,640 90,750
FHLB Borrowings 16,000 17,000
Other Liabilities 733 814
------------- -------------
Total Liabilities 109,373 108,564
Total Equity 17,517 15,276
------------- -------------
Total Liabilities and Equity $ 126,890 $ 123,840
============= =============
STATEMENT OF EARNINGS
For Six Months Ended June 30, 2009 and 2008 (Unaudited) (000)
6/30/2009 6/30/2008
------------- -------------
Interest Income $ 3,387 $ 4,073
Interest Expense 857 878
------------- -------------
Net Interest Income 2,530 3,195
Provision for Loan Loss 155 219
------------- -------------
Net Interest Income after Provision 2,375 2,976
Non Interest Income 641 453
------------- -------------
Total Operating Income 3,016 3,429
Total Non Interest Expense 2,952 3,235
------------- -------------
Net Income Before Tax & Extraordinary 64 194
Tax and Extraordinary Items 0 76
------------- -------------
Net Income (Loss) $ 64 $ 118
============= =============
6/30/2009 6/30/2008
RATIOS ------------ ------------
Earnings Per Share $ 0.04 $ 0.08
Book Value Per Share $ 9.58 $ 10.29
Return on Assets 0.10% 0.19%
Return on Equity 0.10% 1.55%
California Oaks State Bank Reports 2nd Quarter 2009 Results
| Source: California Oaks State Bank
THOUSAND OAKS, CA--(Marketwire - July 27, 2009) - California Oaks State Bank (OTCBB : COSB ),
a community business bank with assets of $126.9 million, today reported net
income for the first half of 2009 of $64,384 or $.04 per share, compared to
net income of $117,716 or $0.08 per share in the same time period of 2008.
Results for the second quarter showed a small loss of $52,276 compared to
net income of $122,148 in the same quarter in 2008. Results in the second
quarter were impacted by the FDIC 2nd Quarter one-time assessment totaling
approximately $54,000.
Total assets ended June 30, 2009 at $126.9 million with net loans and
deposits at $98.2 million and $92.6 million respectively. Total assets by
comparison for 2nd quarter 2008 were $123.8 million with net loans and
deposits of $103.3 million and $90.8 million respectively. The year over
year decrease in loans of $5.1 million can be attributed to the Bank's
efforts to exit lending relationships where the full deposit relationship
is not at Cal Oaks.
On the deposit side, the Bank saw its deposit base increase $1.9 million
due to an increase primarily in core deposits of $3.4 million while
certificate of deposits decreased $1.5 million. This shift has helped keep
the Bank's deposit costs stable. FHLB borrowings decreased, compared to a
year ago, by $1.0 million. The major focus of the Bank is to increase core
deposits to improve liquidity and share holder value.
The net interest margin as a percentage of average assets ended the 2nd
quarter at 4.03% versus 4.09% in the first quarter of 2009. The Bank's net
interest margin has remained stable through the first 6 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 half of 2009
and the higher costs associated with this type of funding.
The Bank currently maintains a loan loss reserve of 1.94% of the total
loans outstanding and believes it is currently adequately reserved based on
the challenges that exist in the economy today and the quality of the
current loan portfolio.
Capital ratios remain strong with Tier 1 risk at 15.41%. California Oaks
State Bank remains highly capitalized as far as the regulatory entities are
concerned, with total risk based capital of 16.67%. In today's Banking
environment, this is a very positive position to be in. 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."
John Nerland, the Bank's President and CEO, noted, "California Oaks State
Bank has been focused on generating solid core deposits for the long term
shareholder value. Core deposits create this. The Bank has been effective
in sorting through and eliminating nonperforming loans currently on the
balance sheet. I am proud of the progress that we have made and continue
to make in this endeavor."
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 $127 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.