ABNS News Alliance Bancshares California Announces Record Earnings for the First Six Months of 2006
CULVER CITY, Calif.--(BUSINESS WIRE)--Aug. 15, 2006--Alliance Bancshares California (OTCBB:ABNS), the holding company of Alliance Bank, announced net earnings of $1,942,600 for the quarter ended June 30, 2006, up 39% from $1,401,600 in the same quarter of 2005. Earnings per share were $0.27 (basic) and $0.25 (diluted) for the quarter ended June 30, 2006, compared to $0.19 (basic and diluted) for the second quarter of 2005.
For the six months ended June 30, 2006, the net earnings rose approximately 42%. Net earnings were $3.7 million; $0.51 (basic) and $0.49 (diluted) earnings per share as compared to $2.6 million; $0.38 (basic and diluted) earnings per share for the same period of 2005.
Total assets reached $816.8 million at June 30, 2006, up 51% from $538.3 million at June 30, 2005. Net loans increased to $620.3 million as of June 30, 2006, a 44% rise from $430.0 million on June 30, 2005. Total deposits reached $647.3 million as of June 30, 2006, a 51% gain from $429.8 million a year ago, due primarily to increases in savings, money market accounts and certificates of deposit.
Net interest income before provision for loan losses increased to $9.2 million from $5.7 million, for the three months ended June 30, 2006. For the six months ended June 30, 2006, net interest income was $17.7 million versus $10.6 million for the same period in 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 CEO Curtis S. Reis commented, "We believe the Federal Reserve Bank's pause in raising rates is appropriate and we believe that business and consumers will be better served if rates stabilize here and not continue their upward spiral. There will probably be some downward pressure on most real estate prices, but we are not predicting a major correction. Reducing debt and building liquidity further appears to be a wise strategy at this time for businesses and individuals in this business cycle.
"Alliance has enjoyed the benefits of being a business-oriented bank in the economically strong dynamic Southern California region. When I became CEO of Alliance twenty years ago, there were close to 600 financial institutions headquartered in California. Today there are about half that number, while the population had grown by 10,000,000 or more. In Southern California, in the 1980's, the economy was dominated by the defense and aerospace industries which took a terrible hit with the end of the cold war.
"After a wrenching five or more years, Southern California reinvented itself. No longer home to many Fortune 500 companies, it is the breeding ground for tens of thousands of modest-sized growing businesses. This, coupled with a labor market eager to work, to be productive and to latch on to financial success, has allowed Alliance to be successful in tapping into this change. While there are many basic infrastructure problems in California that government (national, state and local) needs to seriously address, we still believe we are in the center of one of the greatest business hubs in the world."
Alliance Bank is one of the leading independent 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, 2005, on Form 10-Q for the quarter ended June 30, 2006. 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,
2006 2005
------------- -------------
Assets
Cash and due from banks $15,304,000 $12,520,800
Federal funds sold 60,220,000 6,755,000
------------- -------------
Total cash and cash
equivalents 75,524,000 19,275,800
------------- -------------
Time deposits with other financial
institutions 3,987,300 5,080,400
Securities held to maturity, fair market
value
$96,433,500 at June 30, 2006;
$67,157,500 at June 30, 2005 98,233,400 67,827,500
Loans held for sale 562,500 3,034,300
Loans, net of the allowance for loan
losses of $6,925,300 at June 30, 2006;
$4,517,900 at June 30, 2005 620,320,000 430,028,100
Equipment and leasehold improvements, net 4,060,700 3,814,200
Accrued interest receivable and other
assets 14,158,200 9,251,500
------------- -------------
Total assets $816,846,100 $538,311,800
============= =============
Liabilities, Redeemable Preferred Stock
and Shareholders' Equity
Deposits:
Noninterest bearing demand $121,499,800 $115,172,200
Interest bearing:
Demand 10,857,900 5,795,600
Savings and money market 195,732,000 164,434,200
Certificates of deposit 319,192,700 144,358,000
------------- -------------
Total deposits 647,282,400 429,760,000
------------- -------------
Accrued interest payable and other
liabilities 6,591,100 3,065,700
Securities sold under agreements to
repurchase 50,992,000 5,000,000
FHLB advances 35,000,000 52,000,000
Junior subordinated debentures 27,837,000 17,527,000
------------- -------------
Total liabilities 767,702,500 507,352,700
------------- -------------
Commitments and contingencies -- --
Redeemable Preferred Stock:
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, 2006
and June 30, 2005 7,697,000 7,697,000
6.82% Series B Non-
Cumulative Convertible Non-
Voting:
Authorized and
outstanding - 667,096
shares at June 30, 2006
and none at June 30,
2005 11,318,600 --
------------- -------------
Total redeemable preferred
stock 19,015,600 7,697,000
------------- -------------
Shareholders' Equity:
Common stock, no par value:
Authorized - 20,000,000
shares
Outstanding - 6,068,179
shares at June 30, 2006 and
6,028,679 shares at June
30, 2005 6,415,000 6,295,500
Undivided profits 23,713,000 16,966,600
------------- -------------
Total shareholders' equity 30,128,000 23,262,100
------------- -------------
Total liabilities,
redeemable preferred stock
and shareholders' equity $816,846,100 $538,311,800
============= =============
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ -------------------------
2006 2005 2006 2005
------------ ----------- ------------ ------------
Interest income:
Interest and fees
on loans $14,192,100 $7,558,100 $27,019,900 $13,681,900
Interest on time
deposits with
other financial
institutions 57,100 31,300 131,200 59,200
Interest on
securities held
to maturity 1,081,200 682,500 1,904,700 1,379,700
Interest on
federal funds
sold 406,100 52,400 642,600 108,200
------------ ----------- ------------ ------------
Total interest
income 15,736,500 8,324,300 29,698,400 15,229,000
------------ ----------- ------------ ------------
Interest expense:
Interest on
deposits 5,381,600 1,993,200 9,824,500 3,530,800
Interest on FHLB
advances 453,500 404,400 815,000 719,300
Interest on
federal funds
purchased -- 1,800 -- 1,800
Interest on
securities sold
under repurchase
agreements 344,500 -- 626,100 --
Interest on
junior
subordinated
debentures 377,600 241,300 678,300 409,500
------------ ----------- ------------ ------------
Total interest
expense 6,557,200 2,640,700 11,943,900 4,661,400
------------ ----------- ------------ ------------
Net interest
income before
provision for
loan loss 9,179,300 5,683,600 17,754,500 10,567,600
Provision for loan
losses 973,000 602,000 1,723,000 977,000
------------ ----------- ------------ ------------
Net interest
income 8,206,300 5,081,600 16,031,500 9,590,600
Non-interest income 701,900 580,500 1,339,800 1,378,900
Non-interest
expenses:
Salaries and
related benefits 3,045,700 1,801,700 6,044,400 3,483,900
Occupancy and
equipment
expenses 696,400 556,900 1,405,200 1,049,700
Professional fees 443,000 261,200 720,400 460,300
Data processing 238,500 194,400 450,300 360,800
Other operating
expenses 1,271,900 610,000 2,526,900 1,309,700
------------ ----------- ------------ ------------
Total non-
interest
expense 5,695,500 3,424,200 11,147,200 6,664,400
------------ ----------- ------------ ------------
Earnings before
income tax expense 3,212,700 2,237,900 6,224,100 4,305,100
Income tax expense 1,270,100 836,300 2,489,300 1,674,000
------------ ----------- ------------ ------------
Net earnings $1,942,600 $1,401,600 $3,734,800 $2,631,100
============ =========== ============ ============
Earnings per common
share:
Basic earnings
per share $0.27 $0.19 $0.51 $0.38
Diluted earnings
per share $0.25 $0.19 $0.49 $0.38
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.
