Welcome!

News Feed Item

Focus Business Bank Announces Unaudited Financial Results for the Quarter and Nine-Months Ended September 30, 2012

SAN JOSE, CA -- (Marketwire) -- 10/23/12 -- Focus Business Bank (OTCQB: FCSB) announced unaudited financial results for the quarter and nine-months ended September 30, 2012. Net income was $2,560,000, or $0.92 per share, and $3,067,000, or $1.11 per share, for the quarter and nine-months ended September 30, 2012, respectively. These results included an income tax benefit of $2,233,000 in the quarter ending September 30, 2012 resulting from the reversal of the valuation allowance on deferred tax assets. Reversal of the valuation allowance was based on the Bank's assessment that after ten consecutive quarters of pre-tax net income, including record pre-tax net income of $327,000 in the quarter ending September 30, 2012 compared to $267,000 for the quarter ended September 30, 2011, it was likely that the benefits from the deferred tax assets would be realized.

President and Chief Executive Officer Richard L. Conniff remarked, "The Bank's results for the third quarter of 2012 reflect the continuing successful execution of our business plan to become the bank of choice for closely held businesses in our market. While net income after tax for the quarter was positively impacted by one-time tax benefits, it is important to note that pre-tax net income for the three and nine month periods ending September 30, 2012 are up 22% and 112%, respectively, compared to the same periods in 2011. The improvement in earnings is driven by success in growing our business while controlling operating expenses and effectively managing asset quality."

Assets and Liabilities
The Bank continued to experience growth in the most recent quarter. Total assets were $189.6 million at September 30, 2012, growing $36.9 million, or 24%, from September 30, 2011. Total loans at September 30, 2012 were $114.2 million, a $25.2 million increase, or 28%, from September 30, 2011. Total deposits of $163.1 million at September 30, 2012 represented a $33.6 million increase, or 26%, from September 30, 2011. Assets, loans and deposits were all at record high levels on September 30, 2012.

Mr. Conniff noted, "Continued growth is a key component of the Bank's business plan. That growth is being funded by increasing core deposits and deploying that funding into high quality loans. We have achieved deposit growth across all of our business lines with particular success in two specialty business types where the Bank has significant local market share, condominium homeowner associations and non-profit organizations. Growth in loans has been balanced between traditional commercial and industrial loans, which have increased approximately 32% over the 12 months ending September 30, 2012 and commercial real estate loans, primarily first mortgages on commercial properties in Santa Clara County, which have grown approximately 27% over that same 12 month period."

Net Interest Income
Net interest income for the three and nine-months ended September 30, 2012 was $1,518,000 and $4,444,000, up 12% and 28%, respectively, compared to the same periods ending September 30, 2011. The increase in net interest income is attributable to the growth in interest earning assets, partially offset by a decrease in net interest margin. Net interest margin was 3.50% for the three months ended September 30, 2012 compared to 3.75% for the same three month period in 2011. The decrease in net interest margin is attributable primarily to declines in market rates of interest rather than a significant change in the Bank's mix of earning assets as the loan to deposit ratio was 70% at September 30, 2012 compared to 69% at September 30, 2011.

Non-interest Income
Non-interest income was $286,000 and $737,000 for the quarter and nine months ended September 30, 2012, respectively, compared to $117,000 and $890,000 for the same periods in 2011. Gains on the sale of SBA loans originated by the Bank and sold in the secondary market remain the largest component of non-interest income. The remaining balance of non-interest income is primarily related to loan servicing fees, deposit activities and changes in the cash surrender value of bank owned life insurance. The Bank purchased single premium life insurance policies totaling $3.0 million in the quarter ending March 31, 2012.

Non-Interest Expense
Non-interest expense was $1,477,000 and $4,272,000 for the quarter and nine-months ended September 30, 2012, respectively, compared to $1,204,000 and $3,943,000 for the comparable periods in 2011. The increase in non-interest expense is a result of the Bank's growth in assets. The largest component of non-interest expense is related to compensation of the Bank's employees. The Bank had 25 full-time employees at September 30, 2012 compared to 23 full-time employees at September 30, 2011.

Asset Quality
The Bank made no provision for loan losses in the quarter or nine-month periods ended September 30, 2012 and September 30, 2011. The allowance for loan losses was 2.23% of total loans at September 30, 2012, as compared to 2.85% at September 30, 2011. There were no loan charge-offs for the quarter or nine-months ended September 30, 2012. At September 30, 2012, the Bank had no non-performing loans and the Bank has never had other real estate owned.

Capital
Focus Business Bank has capital ratios substantially in excess of the minimum regulatory requirements for a bank to be considered well capitalized. At September 30, 2012, the total risk-based capital ratio was 18.91%. The Bank has not participated in any government sponsored capital programs, including the Troubled Asset Relief Program ("TARP") or the Small Business Lending Fund ("SBLF").

About Focus Business Bank
Focus Business Bank is dedicated to meeting the banking needs of closely-held businesses and professionals in Santa Clara County. The Bank's office is located at 10 Almaden Boulevard in downtown San Jose, California and offers a variety of commercial banking products including loans, deposits, remote deposit capture and other cash management services oriented toward closely-held businesses and their owners. The Bank specializes in commercial loans and is also an SBA Preferred Lender. The Bank also serves not-for-profit businesses and condominium homeowner associations by offering expertise, market knowledge and specialized products and services to these customers.

Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.




                                      Focus Business Bank
                                 Summary Financial Information
                                           Unaudited
                              ----------------------------------
                                             As of
                              ----------------------------------
                                                                   12 Month
BALANCE SHEET                  30-Sep-12   31-Dec-11   30-Sep-11   % Change
                              ----------  ----------  ----------  ---------
($ in ',000s except per share
 data)
ASSETS
Cash and due from banks
  Interest bearing            $   39,397  $   40,906  $   32,942         20%
  Non-interest bearing             6,231       4,309       4,320         44%
Federal funds sold                   505         505         505          0%
Investment securities             25,103      26,502      26,980         -7%
Loans                            114,168      97,401      89,011         28%
Net deferred loan costs               22          37         102        -78%
  Allowance for loan losses       (2,544)     (2,541)     (2,541)         0%
                              ----------  ----------  ----------
    Net Loans                    111,646      94,897      86,572         29%
Other assets                       6,730       1,405       1,442        367%
                              ----------  ----------  ----------

TOTAL ASSETS                  $  189,612  $  168,524  $  152,761         24%
                              ==========  ==========  ==========

LIABILITIES
Deposits
  Non-interest bearing        $   55,649  $   63,196  $   44,045         26%
  Interest bearing               107,451      81,986      85,478         26%
                              ----------  ----------  ----------
    Total deposits               163,100     145,182     129,523         26%
Other liabilities                    721         716         828        -13%
                              ----------  ----------  ----------
TOTAL LIABILITIES                163,821     145,898     130,351         26%
Stockholders' equity              25,791      22,626      22,410         15%
                              ----------  ----------  ----------

LIABILITIES AND STOCKHOLDERS'
 EQUITY                       $  189,612  $  168,524  $  152,761         24%
                              ==========  ==========  ==========

Book value/share              $     9.28  $     8.15  $     8.07         15%

Balance Sheet Ratios
  Loan/deposit                        70%         67%         69%
  Non-interest/total deposit          34%         44%         34%

Regulatory Capital Ratios
  Tier-1 leverage                  13.40%      13.82%      15.47%
  Tier-1 risk based capital        17.65%      19.48%      20.04%
  Total risk-based capital         18.91%      20.75%      21.31%

Asset Quality Metrics
  Non-performing loans        $        -  $    1,044  $       83
  Non-performing loans/total
   loans                            0.00%       1.07%       0.09%
  ALLL/total loans                  2.23%       2.61%       2.85%



                            Focus Business Bank
                       Summary Financial Information
                                 Unaudited

                                 Quarters Ended         Nine-Months Ended
                             ----------------------  ----------------------
INCOME STATEMENT              30-Sep-12   30-Sep-11   30-Sep-12   30-Sep-11
                             ----------  ----------  ----------  ----------
($ in ',000s except per
 share data)
Interest income              $    1,635  $    1,452  $    4,762  $    3,811
Interest expense                    117          98         318         329
                             ----------  ----------  ----------  ----------
  Net interest income             1,518       1,354       4,444       3,482
Provision for loan losses             -           -           -           -
Non-interest income                 286         117         737         890
Non-interest expense              1,477       1,204       4,272       3,943
                             ----------  ----------  ----------  ----------
    Pre-tax income                  327         267         909         429
    Income taxes                 (2,233)         67      (2,158)         67
                             ----------  ----------  ----------  ----------
Net income                   $    2,560  $      200  $    3,067  $      362
                             ==========  ==========  ==========  ==========
Net income per basic share   $     0.92  $     0.07  $     1.11  $     0.13

Performance Metrics
  Net interest margin              3.50%       3.75%       3.70%       3.45%
  Return on average assets         5.65%       0.54%       2.44%       0.35%
  Return on average equity        43.26%       3.56%      17.68%       2.21%

Contact:
Richard L. Conniff
President and Chief Executive Officer
408.200.8701
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.