|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
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
Oct. 21, 2016 02:15 PM EDT Reads: 2,190
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Oct. 21, 2016 02:15 PM EDT Reads: 1,426
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. 21, 2016 02:00 PM EDT Reads: 6,772
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit 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. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 21, 2016 02:00 PM EDT Reads: 612
SYS-CON Events announced today that Coalfire will exhibit 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. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 21, 2016 01:45 PM EDT Reads: 1,449
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 21, 2016 01:00 PM EDT Reads: 902
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 21, 2016 01:00 PM EDT Reads: 918
SYS-CON Events announced today that MathFreeOn will exhibit 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. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Oct. 21, 2016 12:15 PM EDT Reads: 863
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Oct. 21, 2016 12:00 PM EDT Reads: 8,051
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 21, 2016 10:50 AM EDT Reads: 223
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Oct. 21, 2016 10:45 AM EDT Reads: 1,640
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit 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. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 21, 2016 10:30 AM EDT Reads: 1,229
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
Oct. 21, 2016 09:15 AM EDT Reads: 273
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 21, 2016 08:45 AM EDT Reads: 11,126
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Oct. 21, 2016 08:45 AM EDT Reads: 1,373
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Oct. 21, 2016 08:00 AM EDT Reads: 5,584
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Oct. 21, 2016 07:45 AM EDT Reads: 3,735
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Oct. 21, 2016 07:15 AM EDT Reads: 1,284
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service.
Oct. 21, 2016 07:15 AM EDT Reads: 884
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Oct. 21, 2016 06:45 AM EDT Reads: 1,796