Alliance Bancshares California Announces Record Net Earnings as of September 30, 2004
CULVER CITY, Calif.
Alliance Bancshares California
Daniel Erickson, 310-258-9302
Monique Johnson, 310-258-9349
Alliance Bancshares California (OTCBB:ABNS), the holding company of Alliance Bank, announced record net earnings of $1,486,400 for the third quarter ended September 30, 2004, up 105% from $724,300 for the same quarter in 2003. On a year-to-date basis, net earnings were $2,837,800 through September 30, 2004, compared to $1,793,200 for the nine months ended September 30, 2003, a 58% increase. Diluted earnings per share were $0.44 for the nine months ended September 30, 2004, compared to $0.31 for the same period one year earlier. Basic earnings per share were $0.59 for the nine months ended September 30, 2004, versus $0.39 for the same period in 2003.
Total assets rose to $378.6 million as of September 30, 2004, up 45% from $260.7 million on September 30, 2003. Total deposits reached $308.9 million as of September 30, 2004, a 52% gain from $203.3 million a year ago. Net loans increased to $251.4 million as of September 30, 2004, a 36% rise from $184.8 million on September 30, 2003.
Net interest income before provision for loan losses increased from $7.0 million for the nine months ended September 30, 2003, to $10.0 million for the same period in 2004. Total non-interest expense rose from $5.4 million for the nine months ended September 30, 2003, to $7.4 million for the same period in 2004. Contributing to this increase were the additions to staff and the related benefit costs. During the third quarter of this year, two new regional offices were opened in Woodland Hills and Burbank. At September 30, 2004, Alliance had 70 full-time employees, compared to 50 employees one year earlier.
The provision for loan losses for the nine months ended September 30, 2004, was $600,000, a decrease from $1,125,000 for the same period in 2003. 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 applicable regulatory capital requirements and continues to be "well capitalized" as defined by applicable regulations.
Chairman and President Curtis S. Reis commented, "We are very pleased with our performance in the third quarter and record year-to-date results overall. Our core deposits and loans continue to grow nicely as more and more businesses experience working with our people and their approach to banking. Our loan portfolio appears to be in good condition, allowing us to allocate less to our provision for loan losses this quarter. At the same time, our SBA Department, due to the delayed refunding of the U.S. Small Business Administration earlier this year, had a slow start in the first half of the year. When funding was restored, activity picked up measurably in the third quarter of 2004. However, the White House blocked full funding after September 30th and, as a result, SBA-type activity is likely to languish again. Our two new regional offices in Woodland Hills and Burbank are fully operational so please stop by and meet the staff. The outlook for Alliance remains very positive for the remainder of the year. We are, however, cautious that earnings in the future may not continue at that same clip."
With over $375 million in total assets, Alliance Bank is one of the leading independent business banks headquartered in Southern California, offering a wide range of financial solutions tailored to corporate customers, executives and professionals. Serving small to mid-sized businesses, Alliance Bank's strategy focuses on delivering progressive financial solutions, including deposit and cash management services as well as commercial, small business, accounts receivable, 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 or 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 continuing 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 its fiscal year ended December 31, 2003, or Form 10-QSB for the quarter ended September 30, 2004. 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, September 30,
Assets 2004 2003
------------- -------------
Cash and due from banks $15,706,100 $11,940,400
Federal funds sold 19,235,000 22,370,000
------------- -------------
Total cash and cash equivalents 34,941,000 34,310,400
Time deposits with other financial
institutions 6,242,000 3,804,000
Securities held to maturity, fair market
value $78,158,800 at September 30,
2004; $32,489,800 at September 30, 2003 77,633,800 32,115,200
Loans held for sale 7,401,800 5,900,600
Loans, net of the allowance for loan
losses of $3,256,300 at September 30,
2004; $2,661,600 at September 30, 2003 244,009,000 178,850,900
Equipment and leasehold improvements,
net 2,298,100 1,078,600
Accrued interest receivable and other
assets 6,033,300 4,687,300
------------- -------------
Total assets $378,559,100 $260,747,000
============= =============
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing demand $87,105,500 $44,322,700
Interest bearing:
Demand 4,716,800 3,956,600
Savings and money market 171,725,400 86,899,000
Certificates of deposit 45,366,400 68,080,700
------------- -------------
Total deposits 308,914,100 203,259,000
Accrued interest payable and other
liabilities 2,876,500 1,580,900
FHLB advances 32,000,000 32,000,000
Subordinated debentures 2,450,000 2,500,000
Guaranteed preferred beneficial interest
in the Company's subordinated
debentures 7,217,000 7,217,000
------------- -------------
Total liabilities 353,457,600 246,556,900
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, 2004; None at
December 31, 2003 7,697,000 --
Common stock, no par value: Authorized -
20,000,000 shares
Outstanding - 4,632,679 shares at
September 30, 2004, and 4,567,679
shares at December 31, 2003 3,630,800 3,525,800
Undivided profits 13,773,700 10,664,300
------------- -------------
Total shareholders' equity 25,101,500 14,190,100
------------- -------------
Total liabilities and
shareholders' equity $378,559,100 $260,747,000
============= =============
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ------------------------
2004 2003 2004 2003
---------- ---------- ----------- -----------
Interest income:
Interest and fees
on loans $4,458,000 $3,479,200 $11,855,800 $ 9,549,700
Interest on time
deposits with
other financial
institutions 19,100 32,200 56,300 105,100
Interest on
securities held
to maturity 643,600 198,200 1,363,400 783,600
Interest on
federal funds
sold 87,600 54,100 222,900 165,400
---------- ---------- ----------- -----------
Total interest
income 5,208,300 3,763,700 13,498,400 10,603,800
---------- ---------- ----------- -----------
Interest expense:
Interest on
deposits 964,400 820,000 2,447,200 2,547,200
Interest on FHLB
advances 184,500 224,500 633,400 605,800
Interest on
subordinated
debentures 50,300 52,600 152,300 154,100
Interest on trust
preferred
securities 88,900 83,100 253,700 254,600
---------- ---------- ----------- -----------
Total interest
expense 1,288,100 1,180,200 3,486,600 3,561,700
---------- ---------- ----------- -----------
Net interest
income 3,920,200 2,583,500 10,011,800 7,042,100
Provision for loan
losses 150,000 350,000 600,000 1,125,000
---------- ---------- ----------- -----------
Net interest
income after
provision for
loan losses 3,770,200 2,233,500 9,411,800 5,917,100
Non-interest income:
Service charges
and fees 256,200 208,000 785,300 602,900
Net gains on
sales of loans
held for sale 361,200 277,000 614,100 768,300
Broker fees on
loans 379,700 492,900 789,300 998,900
Other non-
interest income 205,200 57,900 495,600 107,800
---------- ---------- ----------- -----------
Total non-
interest
income 1,202,300 1,035,800 2,684,300 2,477,900
---------- ---------- ----------- -----------
Non-interest expenses:
Salaries and
related benefits 1,297,800 997,900 3,845,800 2,370,400
Occupancy and
equipment
expenses 390,000 282,100 1,038,900 763,300
Professional fees 91,100 90,700 369,200 360,200
Data processing 148,000 123,700 434,600 341,400
Other operating
expenses 568,200 554,900 1,680,800 1,540,000
---------- ---------- ----------- -----------
Total non-
interest
expense 2,495,100 2,049,300 7,369,300 5,375,300
---------- ---------- ----------- -----------
Earnings before
income tax expense 2,477,400 1,220,000 4,726,800 3,019,700
Income tax expense 991,000 495,700 1,889,000 1,226,500
---------- ---------- ----------- -----------
Net earnings $1,486,400 $ 724,300 $ 2,837,800 $ 1,793,200
========== ========== =========== ===========
Earnings per common share:
Basic earnings per
share $0.29 $0.16 $0.59 $0.39
Diluted earnings
per share $0.22 $0.12 $0.44 $0.31
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.
