Canyon Bancorp (OTCBB:CYBA) today announced total assets at September 30, 2008 were $295.4 million and net loans receivable were $253.6 million. Canyon Bancorp incurred a loss of $1,350,000 or $0.54 per diluted share for the third quarter ended September 30, 2008 compared to income of $949,000 or $0.37 per diluted share for third quarter of 2007. For the nine months ended September 30, 2008, Canyon Bancorp incurred a loss of $1,139,000 or $0.46 per diluted share compared to earning $3,098,000 or $1.22 per diluted share for the same period in 2007.
Like many Southern California banks, the Company’s earnings were adversely affected by the deterioration in the real estate market. Classified loans and loan charge-offs have increased. As a result, the Company increased the provision for loan losses from $210,000 in the third quarter of 2007 to $3,280,000 in the third quarter of 2008.
Other financial highlights for the third quarter 2008 compared to the same period in 2007:
- Total assets increased $15.5 million or 5.5 percent to $295.4 million.
- Net loans receivable increased $13.5 million or 5.6 percent to $253.6 million.
- Total deposits increased $12.4 million or 5.4 percent to $242.4 million.
- Capital to assets ratio for the third quarter 2008 was 9.30 percent compared to 9.98 percent for the same period in 2007.
President and CEO Stephen G. Hoffmann said, “In this volatile economic climate, Canyon Bancorp and Canyon National Bank maintain “Well-Capitalized” regulatory ratings and are financially strong. We have responded aggressively to changes in the economy and real estate markets to mitigate risk.”
Canyon National Bank has entered into an agreement with the Office of the Comptroller of the Currency (OCC) requiring the Bank to develop a three-year capital plan and to refrain from paying cash dividends except in compliance with the capital plan and with the approval of the OCC. The bank has also agreed to review and enhance its policies for credit administration, appraisal, commercial real estate underwriting, asset diversification, liquidity and loan loss allowance. The bank is in compliance with the terms of the agreement.
Canyon Bancorp is a bank holding company with one banking subsidiary, Canyon National Bank, a full-service commercial bank and member of the FDIC. Palm Springs branch locations are at 1711 East Palm Canyon Drive at the Smoke Tree Village Shopping Center and 901 East Tahquitz Canyon Way. Palm Desert branch locations are at 74-150 Country Club Drive and 77-933 Las Montanas Road across from Sun City. Shares of the Company’s common stock are traded on the Over the Counter Bulletin Board – stock symbol CYBA.
This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements.
| CANYON BANCORP & SUBSIDIARY | |||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||
9/30/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||
(Unaudited) | (Audited) | (Unaudited) | |||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 11,436 | $ | 13,562 | $ | 12,833 | |||||||||
| Investment securities available for sale | 12,010 | 12,196 | 15,849 | ||||||||||||
Federal Home Loan Bank, Federal Reserve Bank and Pacific Coast Bankers' Bank restricted stock, at cost | 1,786 | 1,890 | 1,597 | ||||||||||||
| Loans held for sale | — | 123 | 1,046 | ||||||||||||
| Loans receivable, net | 253,575 | 248,468 | 240,100 | ||||||||||||
| Furniture, fixtures and equipment | 5,325 | 5,680 | 4,290 | ||||||||||||
| Income tax receivable | 1,925 | 909 | — | ||||||||||||
| Deferred tax asset | 1,498 | 1,430 | 1,671 | ||||||||||||
| Foreclosed assets | 5,683 | 3,073 | — | ||||||||||||
| Other assets | 2,189 | 1,825 | 2,534 | ||||||||||||
| Total Assets | $ | 295,427 | $ | 289,156 | $ | 279,920 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||
| Deposits: | |||||||||||||||
| Demand deposits | $ | 67,500 | $ | 73,961 | $ | 71,229 | |||||||||
| NOW accounts | 9,464 | 14,223 | 9,538 | ||||||||||||
| Savings and money market | 81,673 | 79,262 | 83,471 | ||||||||||||
| Time certificate of deposits | 83,766 | 63,181 | 65,771 | ||||||||||||
| Total Deposits | 242,403 | 230,627 | 230,009 | ||||||||||||
| Other borrowed funds | 23,341 | 28,160 | 20,000 | ||||||||||||
| Other liabilities | 2,220 | 1,795 | 1,971 | ||||||||||||
| Total Liabilities | 267,964 | 260,582 | 251,980 | ||||||||||||
| Commitments and contingencies | — | — | — | ||||||||||||
| Stockholders’ Equity: | |||||||||||||||
Serial Preferred Stock, $5.00 par value; authorized 10,000,000 shares; none issued or outstanding | — | — | — | ||||||||||||
Common Stock; no par value; authorized 10,000,000 shares; 2,497,360, 2,479,927, and 2,342,882 shares issued and outstanding as of September 30, 2008, December 31, 2007, and September 30, 2007, respectively | 23,639 | 23,513 | 21,157 | ||||||||||||
Accumulated other comprehensive income: | |||||||||||||||
Unrealized loss on investment securities available-for-sale | (113 | ) | (15 | ) | (41 | ) | |||||||||
| Retained earnings | 3,937 | 5,076 | 6,824 | ||||||||||||
| Total Stockholders’ Equity | 27,463 | 28,574 | 27,940 | ||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 295,427 | $ | 289,156 | $ | 279,920 | |||||||||
| CANYON BANCORP & SUBSIDIARY | ||||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For the three and nine months ended September 30, 2008 and 2007 | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Interest income: | ||||||||||||||||
| Loans receivable | $ | 4,333 | $ | 5,148 | $ | 13,607 | $ | 14,888 | ||||||||
| Federal funds sold | 26 | 89 | 133 | 477 | ||||||||||||
| Interest bearing deposits in other financial institutions | — | 12 | — | 68 | ||||||||||||
| Investment securities available for sale | 107 | 191 | 375 | 470 | ||||||||||||
| Total interest income | 4,466 | 5,440 | 14,115 | 15,903 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 1,172 | 1,570 | 3,515 | 4,366 | ||||||||||||
| Other borrowed funds | 178 | 70 | 655 | 70 | ||||||||||||
| Total interest expense | 1,350 | 1,640 | 4,170 | 4,436 | ||||||||||||
| Net interest income | 3,116 | 3,800 | 9,945 | 11,467 | ||||||||||||
| Provision for loan losses | 3,280 | 210 | 5,265 | 410 | ||||||||||||
Net interest income after provision for loan losses | (164 | ) | 3,590 | 4,680 | 11,057 | |||||||||||
Non-interest income: | ||||||||||||||||
| Service charges and fees | 245 | 173 | 650 | 512 | ||||||||||||
| Loan related fees | 57 | 121 | 198 | 387 | ||||||||||||
| Lease administration fees | 83 | 132 | 301 | 540 | ||||||||||||
| Automated teller machine fees | 193 | 173 | 568 | 520 | ||||||||||||
| Net loss on sale of foreclosed assets | — | — | (31 | ) | — | |||||||||||
| Net gain on sale of investment securities | 5 | — | 33 | — | ||||||||||||
Total non-interest income | 583 | 599 | 1,719 | 1,959 | ||||||||||||
Non-interest expenses: | ||||||||||||||||
| Salaries and employee benefits | 1,364 | 1,317 | 4,051 | 3,971 | ||||||||||||
| Occupancy and equipment expense | 401 | 381 | 1,187 | 1,107 | ||||||||||||
| Professional fees | 60 | 82 | 182 | 276 | ||||||||||||
| Data processing | 152 | 147 | 502 | 430 | ||||||||||||
| Marketing and advertising expense | 64 | 112 | 294 | 327 | ||||||||||||
| Director and shareholder expense | 102 | 124 | 372 | 390 | ||||||||||||
| Foreclosed asset expense, net | 220 | — | 627 | — | ||||||||||||
| Other operating expense | 393 | 429 | 1,283 | 1,303 | ||||||||||||
Total non-interest expenses | 2,756 | 2,592 | 8,498 | 7,804 | ||||||||||||
| Earnings before income taxes | (2,337 | ) | 1,597 | (2,099 | ) | 5,212 | ||||||||||
| Income tax expense | (987 | ) | 648 | (960 | ) | 2,114 | ||||||||||
| Net earnings | $ | (1,350 | ) | $ | 949 | $ | (1,139 | ) | $ | 3,098 | ||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | (0.54 | ) | $ | 0.39 | $ | (0.46 | ) | $ | 1.26 | ||||||
| Diluted | $ | (0.54 | ) | $ | 0.37 | $ | (0.46 | ) | $ | 1.22 | ||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 2,496,665 | 2,459,389 | 2,487,222 | 2,451,561 | ||||||||||||
| Diluted | 2,496,665 | 2,536,564 | 2,487,222 | 2,541,580 | ||||||||||||
| CANYON BANCORP & SUBSIDIARY | |||||||||||||||||
| Selected Ratios | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
Three Months Ended 1 | Nine Months Ended 1 | ||||||||||||||||
| 9/30/2008 | 9/30/2007 | 9/30/2008 | 9/30/2007 | ||||||||||||||
| Return on average equity | -18.81 | % | 13.66 | % | -5.28 | % | 15.67 | % | |||||||||
| Return on average assets | -1.83 | % | 1.39 | % | -0.52 | % | 1.56 | % | |||||||||
| Yield on interest-earning assets | 6.69 | % | 8.46 | % | 6.95 | % | 8.53 | % | |||||||||
| Cost of interest-bearing liabilities | 2.78 | % | 3.92 | % | 2.93 | % | 3.83 | % | |||||||||
| Net interest margin | 4.67 | % | 5.91 | % | 4.89 | % | 6.15 | % | |||||||||
Non-interest income/average assets | 0.79 | % | 0.88 | % | 0.78 | % | 0.99 | % | |||||||||
Non-interest expense/average assets | 3.73 | % | 3.81 | % | 3.85 | % | 3.93 | % | |||||||||
Net non-interest expense/average assets | 2.94 | % | 2.93 | % | 3.07 | % | 2.94 | % | |||||||||
Net charge-offs/(recoveries) to average loans | 3.95 | % | 0.39 | % | 2.61 | % | 0.23 | % | |||||||||
| as of: | |||||||||||||||||
| 9/30/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Capital to assets ratio | 9.30 | % | 9.88 | % | 9.98 | % | |||||||||||
Allowance for loan losses/gross loans | 1.30 | % | 1.21 | % | 1.41 | % | |||||||||||
| Loan to deposit ratio | 106.3 | % | 109.5 | % | 106.3 | % | |||||||||||
| Adversely classified loans to gross loans | 6.4 | % | 0.9 | % | 1.2 | % | |||||||||||
| Non-accrual loans to gross loans | 4.1 | % | 0.4 | % | 0.6 | % | |||||||||||
Demand deposit accounts/total deposit accounts | 27.8 | % | 32.1 | % | 31.1 | % | |||||||||||
Book value per share 2 | $ | 11.00 | $ | 11.52 | $ | 11.36 | |||||||||||
1 Interim periods annualized | |||||||||||||||||
2 Prior year restated for past stock dividends and splits | |||||||||||||||||
Contacts:
Jonathan J. Wick, Executive Vice
President/COO/CFO
760-325-4442
