Message #9 From:
NewsBot Date: November 15, 2006 03:25:00 PM
ABNS News Alliance Bancshares California Announces Record Earnings for the First Nine Months of 2006
CULVER CITY, Calif.--(BUSINESS WIRE)--Alliance Bancshares California (OTCBB:ABNS), the holding company of
Alliance Bank, announced net earnings of $2.1 million for the quarter
ended September 30, 2006, up 18.5% from $1.7 million in the same quarter
of 2005. Earnings per share were $0.29 (basic) and $0.27 (diluted) for
the quarter ended September 30, 2006, compared to $0.27 (basic) and
$0.25 (diluted) for the third quarter of 2005.
For the nine months ended September 30, 2006, record net earnings rose
approximately 33% to $5.8 million, versus $4.4 million for the same
period in 2005. Earnings per share for the first nine months were $0.79
(basic) and $0.76 (diluted), compared to $0.65 (basic) and $0.63
(diluted) for the same period of 2005.
Total assets reached $836.9 million at September 30, 2006, up 43% from
$583.5 million at September 30, 2005. Net loans, excluding loans held
for sale, increased to $654.9 million as of September 30, 2006, a 43%
rise from $459.0 million on September 30, 2005. Total deposits reached
$707.1 million as of September 30, 2006, a 41% gain from $500.3 million
a year ago.
Net interest income before provision for loan losses increased to $10.1
million for the three months ended September 30, 2006, compared to $6.9
million a year ago. For the nine months ended September 30, 2006, net
interest income before provision of loan losses was $27.9 million versus
$17.5 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 & CEO Curtis S. Reis commented, “Our
record earnings and above average growth continues and we appear assured
of the best year, by far, in our 26 year history.
“What gives me and many bankers pause is a
shortage of reasonably priced core deposits, a major source of lendable
funds. If the Fed is forced to further raise rates, something I hope
doesn’t happen, it will hurt many borrowers.
If the Fed eventually lowers rates without increasing the money supply,
it will negatively affect the bank’s net
interest margins. Alliance, like a majority of community banks these
days, is asset-sensitive. This means that in a rising rate environment
we can generally improve our net interest spread. However, in a falling
rate scenario, our margins tend to shrink since fixed rate CD’s
are slower to get repriced at lower rates.
“Fortunately, Alliance’s
credit quality has not deteriorated although we are mindful of the
slowdown in real estate. Except for Southern California real estate
recently purchased, most owners have a sizeable appreciation over their
initial cost. Thus even with a 10 - 20% price decline, most owners will
remain well in the black. We are seeing a slowdown in sales volume in
residential real estate so owners wishing to sell will need to be
realistic and patient.
“The Alliance team and Board or Directors
continue to add depth and breadth of talent. We are successful because
we have many solid, knowledgeable people that know who they work for -
our customers. Our Bank has grown close to 500% in total assets and
earnings since 2001 and we are proud of that record. We remain bullish
about the future.”
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, Burbank and in 2007 in West Los
Angeles. 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
September 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)
September 30,
2006
2005
Assets
Cash and due from banks
$22,016,700
$ 17,401,900
Federal funds sold
31,955,000
17,645,000
Total cash and cash equivalents
53,971,700
35,046,900
Time deposits with other financial institutions
2,376,100
5,433,900
Securities held to maturity, fair market value $104,745,000 at
September 30, 2006; $66,637,900 at September 30, 2005
105,530,200
67,767,000
Loans held for sale
2,762,500
2,329,800
Loans, net of the allowance for loan losses of $8,142,200 at
September 30, 2006; $5,268,400 at September 30, 2005
654,925,200
458,964,700
Equipment and leasehold improvements, net
3,918,000
3,954,300
Accrued interest receivable and other assets
13,420,700
9,983,600
Total assets
$836,904,400
$ 583,480,200
Liabilities, Redeemable Preferred Stock and Shareholders’
Equity
Deposits:
Noninterest bearing demand
$157,805,000
$ 123,741,200
Interest bearing:
Demand
8,608,500
7,025,400
Savings and money market
216,945,500
187,951,200
Certificates of deposit
323,738,500
181,579,800
Total deposits
707,097,500
500,297,600
Accrued interest payable and other liabilities
5,921,000
3,033,800
FHLB advances
45,000,000
30,000,000
Junior subordinated debentures
27,837,000
17,527,000
Total liabilities
785,855,500
550,858,400
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 September 30, 2006 and September 30, 2005
7,697,000
7,697,000
6.82% Series B Non-Cumulative Convertible Non-Voting:
Authorized and outstanding – 667,096
shares at September 30, 2006 and none at September 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 – 6,098,179 shares at
September 30, 2006 and 6,039,579 shares at September 30, 2005
6,482,300
6,345,900
Undivided profits
25,551,000
18,578,900
Total shareholders’ equity
32,033,300
24,924,800
Total liabilities, redeemable preferred stock and shareholders’
equity
$ 836,904,400
$ 583,480,200
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2006
2005
2006
2005
Interest income:
Interest and fees on loans
$ 15,925,100
$ 9,484,700
$ 42,945,000
$ 23,237,400
Interest on time deposits with other financial institutions
25,900
34,400
157,100
93,600
Interest on securities held to maturity
1,168,400
680,700
3,073,100
2,060,400
Interest on federal funds sold
381,100
197,200
1,023,700
305,400
Total interest income
17,500,500
10,397,000
47,198,900
25,696,800
Interest expense:
Interest on deposits
5,938,100
2,945,000
15,762,600
6,475,800
Interest on FHLB advances
576,500
329,300
1,391,500
1,048,600
Interest on federal funds purchased
—
2,700
—
4,500
Interest on securities sold under repurchase agreements
369,900
—
996,000
—
Interest on junior subordinated debentures
517,200
250,900
1,195,500
660,400
Total interest expense
7,401,700
3,527,900
19,345,600
8,189,300
Net interest income before provision for loan losses
