Message #4 From:
Stock News Bot Date: October 28, 2005 08:05:00 AM
ABNS News Alliance Bancshares California Announces Record Earnings for Nine Months Ended September 30, 2005
CULVER CITY, Calif.--(BUSINESS WIRE)--Oct. 28, 2005--Alliance Bancshares California (OTCBB:ABNS), the holding company of Alliance Bank, announced net earnings for the quarter ended September 30, 2005. The following are the highlights for the quarter and nine months ended September 30, 2005:
-- Net earnings for the quarter were $1,747,000, up 17.5% from $1,486,400 in the same period of 2004
-- Earnings per share for the quarter were $0.25 diluted and $0.27 basic, compared to $0.22 diluted and $0.29 basic for the same period in 2004
-- Record net earnings for the nine months were $4,378,100, up 54.3% from $2,837,800 in the same period of 2004
-- Earnings per share for the nine months were $0.63 diluted and $0.65 basic, compared to $0.44 diluted and $0.59 basic for the same period in 2004
-- Total assets were $583.5 million at September 30, 2005, up 54.1% from $378.6 million at September 30, 2004
-- Total deposits were $500.3 million at September 30, 2005, a 62% gain from $308.9 million at September 30, 2004
-- Net loans increased to $461.3 million at September 30, 2005, a 83.5% increase from $251.4 million at September 30, 2004
Net interest income before provision for loan losses increased to $6.9 million for the quarter ended September 30, 2005, from $3.9 million for the same period in 2004. Net interest income before the provision for loan losses increased to $17.5 million for the nine months ended September 30, 2005, from $10.0 million for the same period in 2004. The increase in interest income was due to increases in average interest earning assets as well as the weighted average yield earned on those assets. The increase in interest expense was due to an increase in average interest bearing liabilities as well as an increase in the weighted average rate paid on those liabilities. The increase in yields and costs was due primarily to increases in market interest rates. The increase in average interest earning assets and average interest bearing liabilities is a result of the Company's growth through the addition of two new regional offices in 2004, the significant growth in all types of loans as well as favorable economic conditions.
Total non-interest expense rose from $2.5 million for the quarter ended September 30, 2004, to $4.1 million for the same period in 2005 and from $7.4 million for the nine months ended September 30, 2004, to $10.8 million for the same period in 2005.
The provision for loan losses for the nine months ended September 30, 2005, was $1,727,000 as compared to $600,000 for the comparable period in 2004. The allowance for loan losses as a percentage of loans was 1.12% at September 30, 2005 as compared to 1.31% at September 30, 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.
At September 30, 2005, 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, "Our 25th Anniversary year continues to meet or exceed our plan through three quarters of the year. We continue to focus on our core business of small to medium sized clients as we expand our products and services for them. There are now about 200 fewer banks in California since the mid 1980s even though the population has grown by roughly 10 million people. Of the 260 or so banks here, about one third are 10 years old or less. We believe this bodes well for Alliance Bank."
With close to $600 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 Company'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 Summary Annual Report and Form 10-KSB for the year ended December 31, 2004, and 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)
September 30,
2005 2004
------------- -------------
Assets
Cash and due from banks $17,401,900 $15,706,100
Federal funds sold 17,645,000 19,235,000
------------- -------------
Total cash and cash equivalents 35,046,900 34,941,000
------------- -------------
Time deposits with other financial
institutions 5,433,900 6,242,000
Securities held to maturity, fair market
value $66,637,900 at September 30, 2005;
$78,158,800 at September 30, 2004 67,767,000 77,633,800
Loans held for sale 2,329,800 7,401,800
Loans, net of the allowance for loan
losses of $5,268,400 at September 30,
2005; $3,256,300 at September 30, 2004 458,964,700 244,009,000
Equipment and leasehold improvements, net 3,954,400 2,298,100
Accrued interest receivable and other
assets 9,983,600 6,033,300
------------- -------------
Total assets $583,480,200 $378,559,100
============= =============
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing demand $123,741,200 $87,105,500
Interest bearing:
Demand 7,025,400 4,716,800
Savings and money market 187,951,100 171,725,400
Certificates of deposit 181,579,700 45,366,400
------------- -------------
Total deposits 500,297,500 308,914,100
------------- -------------
Accrued interest payable and other
liabilities 3,040,200 2,876,500
FHLB advances 30,000,000 32,000,000
Subordinated debentures -- 2,450,000
Junior subordinated debentures 17,527,000 7,217,000
------------- -------------
Total liabilities 550,864,700 353,457,600
------------- -------------
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 September 30,
2005 and September 30, 2004 7,697,000 7,697,000
Common stock, no par value:
Authorized - 20,000,000 shares
Outstanding - 6,039,579 shares at
September 30, 2005 and 4,632,679
shares at September 30, 2004 6,345,900 3,630,800
Undivided profits 18,572,500 13,773,700
------------- -------------
Total shareholders' equity 32,615,500 25,101,500
------------- -------------
Total liabilities and shareholders'
equity $583,480,200 $378,559,100
============= =============
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- -----------------------
2005 2004 2005 2004
----------- ---------- ----------- -----------
Interest income:
Interest and fees on
loans $ 9,484,700 $4,458,000 $23,237,400 $11,855,800
Interest on time
deposits with other
financial
institutions 34,400 19,100 93,600 56,300
Interest on
securities held to
maturity 680,700 643,600 2,060,400 1,363,400
Interest on federal
funds sold 197,200 87,600 305,400 222,900
----------- ---------- ----------- -----------
Total interest
income 10,397,000 5,208,300 25,696,800 13,498,400
----------- ---------- ----------- -----------
Interest expense:
Interest on deposits 2,945,000 964,400 6,475,800 2,447,200
Interest on FHLB
advances 329,300 184,500 1,048,600 633,400
Interest on federal
funds purchased 2,700 -- 4,500 --
Interest on
subordinated
debentures -- 50,300 -- 152,300
Interest on junior
subordinated
debentures 250,900 88,900 660,400 253,700
----------- ---------- ----------- -----------
Total interest
expense 3,527,900 1,288,100 8,189,300 3,486,600
----------- ---------- ----------- -----------
Net interest income 6,869,100 3,920,200 17,507,500 10,011,800
Provision for loan
losses 750,000 150,000 1,727,000 600,000
----------- ---------- ----------- -----------
Net interest income
after provision
for loan losses 6,119,100 3,770,200 15,780,500 9,411,800
Non-interest income:
Service charges and
fees 217,300 256,200 653,000 785,300
Net gains on sales
of loans held for
sale 144,000 361,200 546,400 614,100
Broker fees on loans 248,400 379,700 567,400 789,300
Other non-interest
income 196,500 205,200 418,300 495,600
----------- ---------- ----------- -----------
Total non-interest
income 806,200 1,202,300 2,185,100 2,684,300
----------- ---------- ----------- -----------
Non-interest expenses:
Salaries and related
benefits 2,110,800 1,297,800 5,594,700 3,845,800
Occupancy and
equipment expenses 632,700 390,000 1,682,400 1,038,900
Professional fees 194,500 91,100 654,800 369,200
Data processing 201,200 148,000 562,000 434,600
Other operating
expenses 952,500 568,200 2,333,100 1,680,800
----------- ---------- ----------- -----------
Total non-interest
expense 4,091,700 2,495,100 10,826,900 7,369,300
----------- ---------- ----------- -----------
Earnings before income
tax expense 2,833,600 2,477,400 7,138,700 4,726,800
Income tax expense 1,086,600 991,000 2,760,600 1,889,000
----------- ---------- ----------- -----------
Net earnings $ 1,747,000 $1,486,400 $ 4,378,100 $ 2,837,800
=========== ========== =========== ===========
Earnings per common
share:
Basic earnings per
share $0.27 $0.29 $0.65 $0.59
Diluted earnings per
share $0.25 $0.22 $0.63 $0.44
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.
