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
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.