Central Coast Bancorp Announces Record Quarterly Earnings

Apr 17, 2001, 01:00 ET from Central Coast Bancorp

    SALINAS, Calif., April 17 /PRNewswire/ --
 Central Coast Bancorp (Nasdaq: CCBN), the holding company for Community Bank
 of Central California, today announced record net income of $2,559,000 for the
 quarter ended March 31, 2001.  The earnings represented a 23.3% increase over
 the $2,076,000 reported in the first quarter of 2000.  Diluted earnings per
 share for the first quarter of 2001 were $0.33 versus $0.26 in the prior year
 period.  The earnings per share for the 2000 quarter have been adjusted for
 the 10% stock dividend distributed in February 2001.
     For the first quarter 2001, the Company realized a return on average
 equity of 16.9% and a return on average assets of 1.52%, as compared to
 15.4% and 1.40% in the first quarter of 2000.
     Total assets of the Company at March 31, 2001 were $698,226,000 up
 $88,324,000 (14.5%) over the ending balance at March 31, 2000.  At quarter
 end, loans totaled $481,609,000, up $85,680,000 (21.6%) from the ending
 balances on March 31, 2000.  Deposit balances at quarter end totaled
 $624,669,000 up $78,127,000 (14.3%) from the year earlier balances.  The
 deposit balances in 2000 included $40,000,000 of State of California
 certificate of deposits.  At its option, the Bank returned these deposits in
 the last half of 2000.
     "We are very pleased to report our highest ever quarterly earnings,"
 stated Nick Ventimiglia, Chairman, President and CEO.  He went on to say, "The
 remaining portion of the year will present a challenging banking environment
 due to the changing national economy, the 150 basis points of decrease in the
 prime interest rate during the first quarter and the unknown timing and
 magnitude of potential future changes in interest rates."
 
     Financial Summary:
     Within the following discussion interest income, net interest income, net
 interest margin and the efficiency ratio are presented on a fully taxable
 equivalent basis.
     Net interest income for the first quarter of 2001 was $8,752,000, a
 $1,054,000 (13.7%) increase over 2000.  Interest income was up
 $1,918,000 (16.3%).  Average earning assets in the first quarter of 2001 were
 $81,867,000 (15.1%) higher than the prior year period.  The increased volume
 of earning assets added $1,825,000 to interest income.  The average yield on
 earning assets for the first quarter of 2001 was 8.90%, which was an increase
 of 19 basis points over the yield in the first quarter of 2000.  The higher
 yield added $93,000 to interest income.  The higher yield resulted from the
 blended effect of 100 basis points in rate increases in the first half of
 2000 offset in part by 150 basis points in decreases in the first quarter of
 2001.
     Interest expense was $864,000 (21.3%) higher in the first quarter of
 2001 versus the prior year period.  Average balances of interest-bearing
 liabilities were higher by $42,613,000 (10.5%), which added $539,000 to
 interest expense.  Average rates paid on interest-bearing liabilities were up
 44 basis points on a quarter over quarter basis.  The higher rates added
 $325,000 to interest expense.
     The net interest margin for the first quarter of 2001 was 5.69% as
 compared to 5.70% in the year earlier period.  As compared to the net interest
 margin for the fourth quarter 2000, the first quarter's net interest margin
 was down 24 basis points.  As the Bank's loan assets reprice more quickly than
 do its deposit liabilities, a declining rate environment puts downward
 pressure on the net interest margin.  The full effect of the three 50 basis
 point decreases in the first quarter will be reflected in net interest margins
 in the future quarters.
     The Bank provided $120,000 for loan losses in the first quarter of 2001 as
 compared to $526,000 in the first quarter of 2000 and $1,127,000 in the fourth
 quarter of 2000.  Significant additions were made to the allowance for loan
 losses throughout 2000 based on management's analysis of the loan portfolio
 and in accordance with regulatory guidelines.  At March 31, 2001,
 nonperforming loans totaled $475,000 as compared to $1,022,000 at
 March 31, 2000.  The ratios of the allowance for loan losses to total loans on
 those two dates were 1.96% and 1.55%, respectively.  The ratio at
 December 31, 2000 was 1.98%.
     Noninterest income was up $104,000 (19.0%) on a quarter over quarter
 basis.  Service charges on deposit accounts were up $65,000 due to volume
 increases.  Other increases were related to various fees and charges.
     Noninterest expenses increased $819,000 (19.9%) to a total of
 $4,939,000 in the first quarter of 2001 versus first quarter 2000.  The new
 Watsonville and Hollister branches, which were not in operation the first
 quarter of last year, accounted for $192,000 of the increase.  Increased
 salary and benefit expense due to normal salary progression, internal growth
 and higher benefit costs added $470,000 on a quarter over quarter basis.  The
 remaining increase was generally due to higher business volumes and price
 increases.  The efficiency ratio for the two quarters was 52.5% and 50.0%,
 respectively.
     Under the stock repurchase plan approved in May 2000, the Company
 repurchased 104,633 shares at an average price of $19.00 during the first
 quarter of 2001.  At quarter's end, approximately 4,500 shares remained to be
 repurchased under the May 2000 plan.  The Company announced a new 5% stock
 repurchase plan in February 2001 in which approximately 365,000 shares may be
 repurchased.
     Central Coast Bancorp operates as a holding company for Community Bank of
 Central California.  Community Bank, headquartered in Salinas, has branch
 offices located in the Monterey County communities of Salinas, North Salinas,
 Monterey, Seaside, Marina, Castroville, Gonzales and King City, in the Santa
 Cruz County community of Watsonville and in the San Benito County community of
 Hollister.  The Bank provides traditional deposit, lending, mortgage and
 commercial products and services to business and retail customers throughout
 the California Central Coast area.  The Bank has an Internet web site at
 www.community-bnk.com.
 
     Forward-Looking Statements
     In addition to the historical information contained herein, this press
 release contains certain forward-looking statements.  The reader of this press
 release should understand that all such forward-looking statements are subject
 to various uncertainties and risks that could affect their outcome.  The
 Company's actual results could differ materially from those suggested by such
 forward-looking statements.  Changes to such risks and uncertainties, which
 could impact future financial performance, include, among others, (1)
 competitive pressures in the banking industry; (2) changes in the interest
 rate environment; (3) general economic conditions, nationally, regionally and
 in operating market areas, including a decline in real estate values in the
 Company's market areas; (4) changes in the regulatory environment; (5) changes
 in business conditions and inflation; (6) changes in securities markets;
 (7) data processing compliance problems; (8) the California power crisis;
 (9) variances in the actual versus projected growth in assets; (10) return on
 assets; (11) loan losses; (12) expenses; (13) rates charged on loans and
 earned on securities investments; (14) rates paid on deposits; and (15) fee
 and other noninterest income earned, as well as other factors.  This entire
 press release should be read to put such forward-looking statements in context
 and to gain a more complete understanding of the uncertainties and risks
 involved in the Company's business.
 
                              CENTRAL COAST BANCORP
                           CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
                    (Dollars in thousands, except share data)
 
                                                        Three Months Ended
                                                             March 31
     Statement of Income Data                           2001           2000
       Interest income                               $13,420        $11,565
       Interest expense                                4,926          4,062
       Net interest income                             8,494          7,503
       Provision for loan losses                         120            526
       Noninterest income                                650            546
       Noninterest expense                             4,939          4,120
       Provision for taxes                             1,526          1,327
       Net income                                     $2,559         $2,076
 
     Share Data (adjusted for 10% stock dividend distribution on
      February 28, 2000)
       Earnings per share
         Basic                                         $0.35          $0.26
         Diluted                                       $0.33          $0.26
       Book value per common share                     $8.45          $7.03
       Shares outstanding                          7,294,000      7,716,000
       Weighted average shares                     7,358,000      7,776,000
       Weighted average diluted shares             7,652,000      7,994,000
 
     Balance Sheet Data
       Total assets                                 $698,226       $609,902
       Securities, available-for-sale                148,600        139,738
       Total loans, gross                            481,609        395,929
       Allowance for loan losses                      (9,427)        (6,136)
       Total deposits                                624,669        546,542
       Total shareholders' equity                     61,668         54,207
       Unrealized gain (loss) on
        securities available-for-sale, net               189         (4,758)
       Nonperforming loans                               475          1,022
       Other real estate owned                             0            180
 
     Selected Financial Ratios
       Return on average total assets                   1.52%          1.40%
       Return on average equity                         16.9%          15.4%
       Net interest margin (tax equivalent basis)       5.69%          5.70%
       Allowance for loan losses to total loans         1.96%          1.55%
       Allowance for loan losses to NPL's               1985%           600%
       Allowance for loan losses to NPA's               1985%           510%
       Total risk based capital ratio                   12.3%          13.4%
       Tier 1 Capital ratio                             11.0%          12.2%
 
 

SOURCE Central Coast Bancorp
    SALINAS, Calif., April 17 /PRNewswire/ --
 Central Coast Bancorp (Nasdaq: CCBN), the holding company for Community Bank
 of Central California, today announced record net income of $2,559,000 for the
 quarter ended March 31, 2001.  The earnings represented a 23.3% increase over
 the $2,076,000 reported in the first quarter of 2000.  Diluted earnings per
 share for the first quarter of 2001 were $0.33 versus $0.26 in the prior year
 period.  The earnings per share for the 2000 quarter have been adjusted for
 the 10% stock dividend distributed in February 2001.
     For the first quarter 2001, the Company realized a return on average
 equity of 16.9% and a return on average assets of 1.52%, as compared to
 15.4% and 1.40% in the first quarter of 2000.
     Total assets of the Company at March 31, 2001 were $698,226,000 up
 $88,324,000 (14.5%) over the ending balance at March 31, 2000.  At quarter
 end, loans totaled $481,609,000, up $85,680,000 (21.6%) from the ending
 balances on March 31, 2000.  Deposit balances at quarter end totaled
 $624,669,000 up $78,127,000 (14.3%) from the year earlier balances.  The
 deposit balances in 2000 included $40,000,000 of State of California
 certificate of deposits.  At its option, the Bank returned these deposits in
 the last half of 2000.
     "We are very pleased to report our highest ever quarterly earnings,"
 stated Nick Ventimiglia, Chairman, President and CEO.  He went on to say, "The
 remaining portion of the year will present a challenging banking environment
 due to the changing national economy, the 150 basis points of decrease in the
 prime interest rate during the first quarter and the unknown timing and
 magnitude of potential future changes in interest rates."
 
     Financial Summary:
     Within the following discussion interest income, net interest income, net
 interest margin and the efficiency ratio are presented on a fully taxable
 equivalent basis.
     Net interest income for the first quarter of 2001 was $8,752,000, a
 $1,054,000 (13.7%) increase over 2000.  Interest income was up
 $1,918,000 (16.3%).  Average earning assets in the first quarter of 2001 were
 $81,867,000 (15.1%) higher than the prior year period.  The increased volume
 of earning assets added $1,825,000 to interest income.  The average yield on
 earning assets for the first quarter of 2001 was 8.90%, which was an increase
 of 19 basis points over the yield in the first quarter of 2000.  The higher
 yield added $93,000 to interest income.  The higher yield resulted from the
 blended effect of 100 basis points in rate increases in the first half of
 2000 offset in part by 150 basis points in decreases in the first quarter of
 2001.
     Interest expense was $864,000 (21.3%) higher in the first quarter of
 2001 versus the prior year period.  Average balances of interest-bearing
 liabilities were higher by $42,613,000 (10.5%), which added $539,000 to
 interest expense.  Average rates paid on interest-bearing liabilities were up
 44 basis points on a quarter over quarter basis.  The higher rates added
 $325,000 to interest expense.
     The net interest margin for the first quarter of 2001 was 5.69% as
 compared to 5.70% in the year earlier period.  As compared to the net interest
 margin for the fourth quarter 2000, the first quarter's net interest margin
 was down 24 basis points.  As the Bank's loan assets reprice more quickly than
 do its deposit liabilities, a declining rate environment puts downward
 pressure on the net interest margin.  The full effect of the three 50 basis
 point decreases in the first quarter will be reflected in net interest margins
 in the future quarters.
     The Bank provided $120,000 for loan losses in the first quarter of 2001 as
 compared to $526,000 in the first quarter of 2000 and $1,127,000 in the fourth
 quarter of 2000.  Significant additions were made to the allowance for loan
 losses throughout 2000 based on management's analysis of the loan portfolio
 and in accordance with regulatory guidelines.  At March 31, 2001,
 nonperforming loans totaled $475,000 as compared to $1,022,000 at
 March 31, 2000.  The ratios of the allowance for loan losses to total loans on
 those two dates were 1.96% and 1.55%, respectively.  The ratio at
 December 31, 2000 was 1.98%.
     Noninterest income was up $104,000 (19.0%) on a quarter over quarter
 basis.  Service charges on deposit accounts were up $65,000 due to volume
 increases.  Other increases were related to various fees and charges.
     Noninterest expenses increased $819,000 (19.9%) to a total of
 $4,939,000 in the first quarter of 2001 versus first quarter 2000.  The new
 Watsonville and Hollister branches, which were not in operation the first
 quarter of last year, accounted for $192,000 of the increase.  Increased
 salary and benefit expense due to normal salary progression, internal growth
 and higher benefit costs added $470,000 on a quarter over quarter basis.  The
 remaining increase was generally due to higher business volumes and price
 increases.  The efficiency ratio for the two quarters was 52.5% and 50.0%,
 respectively.
     Under the stock repurchase plan approved in May 2000, the Company
 repurchased 104,633 shares at an average price of $19.00 during the first
 quarter of 2001.  At quarter's end, approximately 4,500 shares remained to be
 repurchased under the May 2000 plan.  The Company announced a new 5% stock
 repurchase plan in February 2001 in which approximately 365,000 shares may be
 repurchased.
     Central Coast Bancorp operates as a holding company for Community Bank of
 Central California.  Community Bank, headquartered in Salinas, has branch
 offices located in the Monterey County communities of Salinas, North Salinas,
 Monterey, Seaside, Marina, Castroville, Gonzales and King City, in the Santa
 Cruz County community of Watsonville and in the San Benito County community of
 Hollister.  The Bank provides traditional deposit, lending, mortgage and
 commercial products and services to business and retail customers throughout
 the California Central Coast area.  The Bank has an Internet web site at
 www.community-bnk.com.
 
     Forward-Looking Statements
     In addition to the historical information contained herein, this press
 release contains certain forward-looking statements.  The reader of this press
 release should understand that all such forward-looking statements are subject
 to various uncertainties and risks that could affect their outcome.  The
 Company's actual results could differ materially from those suggested by such
 forward-looking statements.  Changes to such risks and uncertainties, which
 could impact future financial performance, include, among others, (1)
 competitive pressures in the banking industry; (2) changes in the interest
 rate environment; (3) general economic conditions, nationally, regionally and
 in operating market areas, including a decline in real estate values in the
 Company's market areas; (4) changes in the regulatory environment; (5) changes
 in business conditions and inflation; (6) changes in securities markets;
 (7) data processing compliance problems; (8) the California power crisis;
 (9) variances in the actual versus projected growth in assets; (10) return on
 assets; (11) loan losses; (12) expenses; (13) rates charged on loans and
 earned on securities investments; (14) rates paid on deposits; and (15) fee
 and other noninterest income earned, as well as other factors.  This entire
 press release should be read to put such forward-looking statements in context
 and to gain a more complete understanding of the uncertainties and risks
 involved in the Company's business.
 
                              CENTRAL COAST BANCORP
                           CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
                    (Dollars in thousands, except share data)
 
                                                        Three Months Ended
                                                             March 31
     Statement of Income Data                           2001           2000
       Interest income                               $13,420        $11,565
       Interest expense                                4,926          4,062
       Net interest income                             8,494          7,503
       Provision for loan losses                         120            526
       Noninterest income                                650            546
       Noninterest expense                             4,939          4,120
       Provision for taxes                             1,526          1,327
       Net income                                     $2,559         $2,076
 
     Share Data (adjusted for 10% stock dividend distribution on
      February 28, 2000)
       Earnings per share
         Basic                                         $0.35          $0.26
         Diluted                                       $0.33          $0.26
       Book value per common share                     $8.45          $7.03
       Shares outstanding                          7,294,000      7,716,000
       Weighted average shares                     7,358,000      7,776,000
       Weighted average diluted shares             7,652,000      7,994,000
 
     Balance Sheet Data
       Total assets                                 $698,226       $609,902
       Securities, available-for-sale                148,600        139,738
       Total loans, gross                            481,609        395,929
       Allowance for loan losses                      (9,427)        (6,136)
       Total deposits                                624,669        546,542
       Total shareholders' equity                     61,668         54,207
       Unrealized gain (loss) on
        securities available-for-sale, net               189         (4,758)
       Nonperforming loans                               475          1,022
       Other real estate owned                             0            180
 
     Selected Financial Ratios
       Return on average total assets                   1.52%          1.40%
       Return on average equity                         16.9%          15.4%
       Net interest margin (tax equivalent basis)       5.69%          5.70%
       Allowance for loan losses to total loans         1.96%          1.55%
       Allowance for loan losses to NPL's               1985%           600%
       Allowance for loan losses to NPA's               1985%           510%
       Total risk based capital ratio                   12.3%          13.4%
       Tier 1 Capital ratio                             11.0%          12.2%
 
 SOURCE  Central Coast Bancorp