|By Marketwired .||
|January 31, 2013 09:06 PM EST||
SAN JOSE, CA -- (Marketwire) -- 01/31/13 -- Focus Business Bank (OTCQB: FCSB) announced unaudited financial results for the quarter and year ended December 31, 2012. Net income was $391,000, or $0.14 per share, and $3,458,000, or $1.24 per share, for the quarter and year ended December 31, 2012, respectively. These results included an income tax benefit of $2,174,000 for the year ended December 31, 2012 resulting from the reversal of the valuation allowance on deferred tax assets. Reversal of the valuation allowance was based on the Bank's assessment that after eleven consecutive quarters of pre-tax net income it was likely that the benefits from the deferred tax assets would be realized.
President and Chief Executive Officer Richard L. Conniff remarked, "We are proud of the continuing success of Focus Business Bank. The three months ending December 31, 2012 marked the Bank's best quarter of pre-tax income, driven by growth in loans and deposits, both of which are at all time high levels. The Bank has remained disciplined in its control of operating expenses and the management of asset quality. We believe we are ideally positioned to assist and support our target customers, closely-held businesses in our market."
Assets and Liabilities
The balance sheet of the Bank experienced solid growth in 2012:
- Deposits increased 28% from $145.2 million at December 31, 2011 to $186.4 million at December 31, 2012. During 2012, the fastest growing deposit segment was interest-bearing demand, which grew 144% from $28.1 million to $68.8 million. Interest bearing demand is primarily composed of the Bank's specialty deposit businesses including condominium homeowner associations and non-profit corporations where it has significantly grown its local market share. The Bank considers these specialty businesses to be core deposits.
- Loans increased 23% from $97.4 million at December 31, 2011 to $119.4 million at December 31, 2012. Growth in loans in 2012 was balanced between commercial and industrial, which grew 21% and commercial real estate, primarily first mortgages on commercial properties in Santa Clara County, which grew 24%.
- The Bank also experienced growth in investment securities and interest bearing deposits with other banks. Investment securities and interest bearing deposits provide funds for day to day operations and secondary liquidity to manage balance sheet fluctuations. The growth in these asset classes was funded primarily by growth in deposits, partially offset by growth in loans.
Net Interest Income
Net interest income for the three months and year ended December 31, 2012 was $1,646,000 and $6,089,000, up 21% and 26%, respectively, compared to the same periods ending December 31, 2011. The increase in net interest income is attributable to the growth in interest earning assets, partially offset by a decrease in net interest margin. Net interest margin was 3.35% for the three months ended December 31, 2012 compared to 3.47% for the same three-month period in 2011. The decrease in net interest margin is attributable primarily to declines in market rates of interest and a change in the Bank's mix of earning assets as the loan to deposit ratio was 64% at December 31, 2012 compared to 67% at December 31, 2011.
Non-interest income was $421,000 and $1,159,000 for the quarter and year ended December 31, 2012, respectively, compared to $137,000 and $1,027,000 for the same periods in 2011. Gains on the sale of SBA loans originated by the Bank and sold in the secondary market remain the largest component of non-interest income. The remaining balance of non-interest income is primarily related to loan servicing fees, deposit activities and changes in the cash surrender value of bank owned life insurance.
Non-interest expense was $1,692,000 and $5,964,000 for the quarter and year ended December 31, 2012, respectively, compared to $1,268,000 and $5,211,000 for the comparable periods in 2011. The increase in non-interest expense is a result of the Bank's increase in infrastructure costs required to support our existing and planned growth in assets. The largest component of non-interest expense is related to compensation of the Bank's employees. The Bank had 27 full-time employees at December 31, 2012 compared to 24 full-time employees at December 31, 2011.
The Bank made no provision for loan losses in the quarter or year ended December 31, 2012 and December 31, 2011. The allowance for loan losses was 2.13% of total loans at December 31, 2012, as compared to 2.61% at December 31, 2011. There were no loan charge-offs for the quarter or year ended December 31, 2012. At December 31, 2012, the Bank had no non-performing loans and the Bank has never had other real estate owned.
Focus Business Bank has capital ratios substantially in excess of the minimum regulatory requirements for a bank to be considered well capitalized. At December 31, 2012, the total risk-based capital ratio was 18.07%. The Bank has not participated in any government sponsored capital programs, including the Troubled Asset Relief Program ("TARP") or the Small Business Lending Fund ("SBLF").
About Focus Business Bank
Focus Business Bank is dedicated to meeting the banking needs of closely-held businesses and professionals in Santa Clara County. The Bank's office is located at 10 Almaden Boulevard in downtown San Jose, California and offers a variety of commercial banking products including loans, deposits, remote deposit capture and other cash management services oriented toward closely-held businesses and their owners. The Bank specializes in commercial loans and is also an SBA Preferred Lender. The Bank also serves not-for-profit businesses and condominium homeowner associations by offering expertise, market knowledge and specialized products and services to these customers.
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Focus Business Bank Summary Financial Information Unaudited ---------------------------------- As of 12 Month BALANCE SHEET 31-Dec-12 30-Sep-12 31-Dec-11 % Change ---------- ---------- ---------- --------- ($ in ',000s except per share data) ASSETS Cash and due from banks Interest bearing $ 52,560 $ 39,397 $ 40,906 28% Non-interest bearing 6,895 6,231 4,309 60% Federal funds sold 505 505 505 0% Investment securities 29,368 24,803 26,204 12% Loans 119,378 114,168 97,401 23% Net deferred loan costs 37 22 37 0% Allowance for loan losses (2,545) (2,544) (2,541) 0% ---------- ---------- ---------- Net Loans 116,870 111,646 94,897 23% Other assets 7,237 7,030 1,703 325% ---------- ---------- ---------- TOTAL ASSETS $ 213,435 $ 189,612 $ 168,524 27% ========== ========== ========== LIABILITIES Deposits Non-interest bearing $ 63,065 $ 55,649 $ 63,196 0% Interest bearing 123,295 107,451 81,986 50% ---------- ---------- ---------- Total deposits 186,360 163,100 145,182 28% Other liabilities 880 721 716 23% ---------- ---------- ---------- TOTAL LIABILITIES 187,240 163,821 145,898 28% Stockholders' equity 26,195 25,791 22,626 16% ---------- ---------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY $ 213,435 $ 189,612 $ 168,524 27% ========== ========== ========== Book value/share $ 9.42 $ 9.28 $ 8.15 16% Balance Sheet Ratios Loan/deposit 64% 70% 67% Non-interest/total deposit 34% 34% 44% Regulatory Capital Ratios Tier-1 leverage 11.77% 13.40% 13.82% Tier-1 risk based capital 16.81% 17.65% 19.48% Total risk-based capital 18.07% 18.91% 20.75% Asset Quality Metrics Non-performing loans $ - $ - $ 1,044 Non-performing loans/total loans 0.00% 0.00% 1.07% ALLL/total loans 2.13% 2.23% 2.61% Focus Business Bank Summary Financial Information Unaudited Quarters Ended Years Ended ---------------------- ---------------------- INCOME STATEMENT 31-Dec-12 31-Dec-11 31-Dec-12 31-Dec-11 ---------- ---------- ---------- ---------- ($ in ',000s except per share data) Interest income $ 1,769 $ 1,465 $ 6,531 $ 5,275 Interest expense 123 100 442 428 ---------- ---------- ---------- ---------- Net interest income 1,646 1,365 6,089 4,847 Provision for loan losses - - - - Non-interest income 421 137 1,159 1,027 Non-interest expense 1,692 1,268 5,964 5,211 ---------- ---------- ---------- ---------- Pre-tax income (loss) 375 234 1,284 663 Income taxes (16) (5) (2,174) 62 ---------- ---------- ---------- ---------- Net income (loss) $ 391 $ 239 $ 3,458 $ 601 ========== ========== ========== ========== Net income (Loss) per basic share $ 0.14 $ 0.09 $ 1.24 $ 0.22 Performance Metrics Net interest margin 3.35% 3.47% 3.60% 3.46% Return on average assets 0.75% 0.59% 1.95% 0.42% Return on average equity 5.98% 4.20% 14.47% 2.72%
Richard L. Conniff
President and Chief Executive Officer
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Oct. 1, 2016 07:00 AM EDT Reads: 1,864
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Oct. 1, 2016 06:15 AM EDT Reads: 806
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Oct. 1, 2016 06:00 AM EDT Reads: 1,944
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Oct. 1, 2016 05:45 AM EDT Reads: 1,341
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Oct. 1, 2016 05:30 AM EDT Reads: 640
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Oct. 1, 2016 05:15 AM EDT Reads: 1,436
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Oct. 1, 2016 05:00 AM EDT Reads: 4,755
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Oct. 1, 2016 04:45 AM EDT Reads: 578
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Oct. 1, 2016 04:30 AM EDT Reads: 1,820
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Oct. 1, 2016 04:00 AM EDT Reads: 5,485
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Oct. 1, 2016 04:00 AM EDT Reads: 1,658
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Oct. 1, 2016 04:00 AM EDT Reads: 3,129
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Oct. 1, 2016 03:00 AM EDT Reads: 1,979
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Oct. 1, 2016 03:00 AM EDT Reads: 2,460
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Oct. 1, 2016 02:30 AM EDT Reads: 2,719
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Oct. 1, 2016 02:30 AM EDT Reads: 691
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Oct. 1, 2016 02:15 AM EDT Reads: 763
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Oct. 1, 2016 02:15 AM EDT Reads: 2,158
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Oct. 1, 2016 02:15 AM EDT Reads: 556
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Oct. 1, 2016 01:45 AM EDT Reads: 538