Message #3 From:
Stock News Bot Date: August 15, 2005 11:36:00 AM
ABNS News Alliance Bancshares California Announces Net Earnings for Second Quarter 2005
CULVER CITY, Calif.--(BUSINESS WIRE)--Aug. 15, 2005--Alliance Bancshares California (OTCBB:ABNS), the holding company of Alliance Bank, announced net earnings of $1,401,600 for the quarter ended June 30, 2005, up 88% from $746,000 in the same quarter of 2004. Earnings per share were $0.19 (diluted and basic) for the quarter ended June 30, 2005, compared to $0.11 (diluted) and $0.16 (basic) for the second quarter of 2004. Since the diluted earnings per share calculation for the quarter ended June 30, 2005 is anti-dilutive, the basis earnings per share amount is used for diluted earnings per share.
For the six months ended June 30, 2005, net earnings of $2,631,100 were achieved, up 95% from $1,351,400 in the same period of 2004. Earnings per share were $0.38 (diluted and basic) for the first six months in 2005, compared to $0.22 (diluted) and $0.29 (basic) for the same period in 2004.
Total assets rose to $538.3 million at June 30, 2005, up 56% from $345.8 million at June 30, 2004. Total deposits reached $429.8 million as of June 30, 2005, a 55% gain from $277.9 million on June 30, 2004, due primarily to increases in non-interest bearing demand deposits, savings and money market accounts and certificates of deposit. Net loans increased to $430.0 million as of June 30, 2005, a 92% rise from $223.9 million on June 30, 2004.
Net interest income before provision for loan losses increased from $3.2 million for the quarter ended June 30, 2004, to $5.7 million for the same period in 2005 due to an increase in interest income of $4.0 million while interest expense increased only $1.5 million. Net interest income before the provision for loan losses increased from $6.1 million for the six months ended June 30, 2004, to $10.6 million for the same period in 2005 due to an increase in interest income of $6.9 million, while interest expense increased only $2.4 million. Total non-interest expense rose from $2.5 million for the quarter ended June 30, 2004, to $3.4 million for the same period in 2005 and $4.9 million for the six months ended June 30, 2004, to $6.7 million for the same period in 2005. These increases were primarily due to an increase in the number of employees in all locations and departments due to the growth of the Company as well as additions of the new San Fernando Valley and Media District Regional Offices in Woodland Hills and Burbank, respectively. The increase in the size and profitability of the Company also resulted in an increase in incentive and bonus accruals for 2005.
The provision for loan losses for the quarter ended June 30, 2005, was $602,000 as compared to none for the comparable period in 2004. Although management uses the best information available to determine the adequacy of the allowance, future adjustments may be necessary due to economic, operating, regulatory and other conditions.
Both Alliance Bancshares California and Alliance Bank met all regulatory capital requirements and the Bank continues to be "well capitalized" as defined by applicable regulations.
Chairman and President Curtis S. Reis commented, "In conjunction with our 25th anniversary, 2005 is becoming another record year for us in many ways. The mid-year results are very positive for Alliance. Our Real Estate Industries Division expanded into new space across from the Orange County Regional Office. In addition to the Sacramento area, the SBA Department has extended its reach into San Diego and surrounding communities. We are fortunate to be in one of the greatest business markets in the world, and we are a business bank."
With just under $550 million in total assets, Alliance Bank is one of the leading business banks headquartered in Southern California, offering a wide range of financial solutions tailored to businesses, developers, executives and professionals. Serving small to mid-sized businesses, Alliance Bank's strategy focuses on delivering progressive products and services including deposit and cash management services as well as commercial, small business, asset-based, construction and real estate financing. Founded in 1980, Alliance Bank is the principal subsidiary of Alliance Bancshares California (OTCBB:ABNS), with regional banking offices in Culver City, Irvine, Woodland Hills and Burbank. Alliance can be found on the Web at www.allbank.com.
Forward-Looking Statements
Statements in the news release that are not historical facts or which refer to the Company's expectations or beliefs constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements regarding the Company's future performance or financial condition are based on current information and are subject to a number of risks and uncertainties that could cause actual results to differ significantly from those expected at this time. These risks and uncertainties relate to such matters as, but are not limited to: increased competition from other financial institutions; changes in local national economic conditions and changes in Federal Reserve Board monetary policies, which could cause interest rates to increase, and loan demand to decline, and thereby reduce the Bank's net margins and operating results; increased government regulation which could increase the costs of operations; the Company's ability to successfully enter new markets or introduce new financial products or services; the costs and the possible adverse impact on operating results of planned growth and expansion; and continued performance of the Company's loan portfolio.
These, as well as other factors and uncertainties, are discussed in greater detail in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report and Form 10-KSB for the year ended December 31, 2004, on Form 10-QSB for the quarter ended June 30, 2005. Readers are urged to review those reports and are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this news release. The Company also disclaims any obligation to update forward-looking statements whether as a result of new information, future events or otherwise.
Consolidated Statements of Financial Condition
(Unaudited)
June 30, June 30,
2005 2004
------------- -------------
Assets
Cash and due from banks $12,520,800 $15,620,500
Federal funds sold 6,755,000 27,900,000
------------- -------------
Total cash and cash equivalents 19,275,800 43,520,500
------------- -------------
Time deposits with other financial
institutions 5,080,400 5,149,700
Securities held to maturity, fair market
value $67,157,500 at June 30, 2005;
$60,521,200 at June 30, 2004 67,827,500 60,722,500
Loans held for sale 3,034,300 5,257,600
Loans, net of the allowance for loan
losses of $4,517,900 at June 30, 2005;
$3,072,800 at June 30, 2004 430,028,100 223,933,400
Equipment and leasehold improvements, net 3,814,200 1,626,900
Accrued interest receivable and other
assets 9,251,500 5,597,700
------------- -------------
Total assets $538,311,800 $345,808,300
============= =============
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing demand $115,172,200 $93,510,500
Interest bearing:
Demand 5,795,600 4,016,400
Savings and money market 164,434,200 125,094,300
Certificates of deposit 144,358,000 55,240,200
------------- -------------
Total deposits 429,760,000 277,861,400
------------- -------------
Accrued interest payable and other
liabilities 3,065,700 2,542,100
Federal funds purchased 5,000,000 --
FHLB advances 52,000,000 32,000,000
Subordinated debentures --- 2,450,000
Junior subordinated debentures 17,527,000 7,217,000
------------- -------------
Total liabilities 507,352,700 322,070,500
------------- -------------
Commitments and contingencies -- --
Shareholders' equity:
Serial preferred stock, no par value:
Authorized - 20,000,000 shares
7% Series A Non-Cumulative Convertible
Non-Voting:
Authorized and outstanding - 733,050
shares at June 30, 2005 and June
30, 2004 7,697,000 7,697,000
Common stock, no par value:
Authorized - 20,000,000 shares
Outstanding - 6,028,679 shares at June
30, 2005 and 4,622,679 shares at June
30, 2004 6,295,500 3,615,800
Undivided profits 16,966,600 12,425,000
------------- -------------
Total shareholders' equity 30,959,100 23,737,800
------------- -------------
Total liabilities and shareholders'
equity $538,311,800 $345,808,300
============= =============
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ----------- ----------
Interest income:
Interest and fees
on loans $7,558,100 $3,844,800 $13,681,900 $7,397,800
Interest on time
deposits with
other financial
institutions 31,300 18,300 59,200 37,200
Interest on
securities held to
maturity 682,500 386,900 1,379,700 719,800
Interest on federal
funds sold 52,400 57,600 108,200 135,300
---------- ---------- ----------- ----------
Total interest
income 8,324,300 4,307,600 15,229,000 8,290,100
---------- ---------- ----------- ----------
Interest expense:
Interest on
deposits 1,993,200 750,500 3,530,800 1,482,800
Interest on FHLB
advances 404,400 224,400 719,300 448,900
Interest on federal
funds purchased 1,800 -- 1,800 --
Interest on
subordinated
debentures -- 51,000 -- 102,000
Interest on trust
preferred
securities 241,300 82,000 409,500 164,800
---------- ---------- ----------- ----------
Total interest
expense 2,640,700 1,107,900 4,661,400 2,198,500
---------- ---------- ----------- ----------
Net interest
income 5,683,600 3,199,700 10,567,600 6,091,600
Provision for loan
losses 602,000 -- 977,000 450,000
---------- ---------- ----------- ----------
Net interest
income after
provision for
loan losses 5,081,600 3,199,700 9,590,600 5,641,600
Non-interest income:
Service charges
and fees 214,200 245,700 435,700 529,100
Net gains on sales
of loans held for
sale 127,000 100,900 298,000 252,900
Broker fees on
loans 71,900 135,800 370,900 409,600
Other non-interest
income 167,400 67,200 274,300 290,400
---------- ---------- ----------- ----------
Total non-
interest income 580,500 549,600 1,378,900 1,482,000
---------- ---------- ----------- ----------
Non-interest
expenses:
Salaries and
related benefits 1,801,700 1,295,500 3,483,900 2,548,000
Occupancy and
equipment expenses 556,900 335,800 1,049,700 648,900
Professional fees 261,200 169,400 460,300 278,100
Data processing 194,400 148,300 360,800 286,600
Other operating
expenses 610,000 561,300 1,309,700 1,112,600
---------- ---------- ----------- ----------
Total non-
interest expense 3,424,200 2,510,300 6,664,400 4,874,200
---------- ---------- ----------- ----------
Earnings before
income tax expense 2,237,900 1,239,000 4,305,100 2,249,400
Income tax expense 836,300 493,000 1,674,000 898,000
---------- ---------- ----------- ----------
Net earnings $1,401,600 $ 746,000 $ 2,631,100 $1,351,400
========== ========== =========== ==========
Earnings per common
share:
Basic earnings per
share $0.19 $0.16 $0.38 $0.29
Diluted earnings
per share $0.19 $0.11 $0.38 $0.22
To receive a copy of our financial reports or to be put on the Company's mailing list, please contact Monique Johnson, director of marketing and communications, at 310-258-9349 or by email: mjohnson@allbank.com.
