Welcome!

Microsoft Cloud Authors: Liz McMillan, John Basso, Pat Romanski, Elizabeth White, Mihai Corbuleac

News Feed Item

Focus Business Bank Announces Unaudited Financial Results for December 31, 2013

SAN JOSE, CA -- (Marketwired) -- 02/05/14 -- Focus Business Bank (OTCQB: FCSB) announced unaudited financial results for the quarter and year ended December 31, 2013. Net income for the quarter was $315,000, or $0.11 per diluted share. For the year ended December 31, 2013, net income was $870,000, or $0.30 per diluted share, compared to $3,458,000, or $1.19 per diluted share, for the year ended December 31, 2012. The changes in net income for the quarter and year ended December 31, 2013 compared to the same periods in 2012 are primarily attributable to the reversal of the Bank's deferred tax asset in late 2012. Pre-tax income of $575,000 and $1,368,000 for the quarter and year ended December 31, 2013 increased 53% and 7%, respectively, compared to pre-tax income of $375,000 and $1,284,000 in the prior year quarter and annual periods. The primary contributors to the growth in pre-tax income were increases in net interest income and non-interest income which were partially offset by increased personnel and infrastructure growth.

President and Chief Executive Officer Richard L. Conniff commented on the December 31, 2013 results, "The Bank experienced outstanding growth in earning assets and deposits in 2013. Over the past five years, the Bank has committed heavily to growing its specialty businesses, cash management services for condominium homeowner associations and public benefit companies, both of which are significant sources of deposits. In addition to the strong growth in deposits from these specialty businesses, we also experienced growth in our core business banking lines resulting in loan growth and additional deposits. While the growth required an investment in personnel and other infrastructure, the Bank is now well positioned to benefit from the recurring long-term revenue generated by this larger base of earning assets."

Highlights of the year ended December 31, 2013

  • Non-interest bearing deposits of $94.7 million at December 31, 2013 represent a 50% increase over December 31, 2012 and a record high level. Non-interest bearing deposits reflect the growth in business banking relationships.

  • Interest bearing deposits of $190.4 million represent a 54% increase over December 31, 2012 and a record high level. The increase is primarily related to growth in the Bank's specialty businesses.

  • Total loans of $140.3 million at December 31, 2013 were 18% above December 31, 2012 and a record high level.

  • Net interest income of $6.8 million for the year ended December 31, 2013 represented 12% growth over the year ended December 31, 2012.

  • Net income after taxes was $870,000 for the year ended December 31, 2013. Pre-tax net income of $1.4 million for the year was a record high.

Assets and Liabilities

Investment securities of $63.3 million have grown 116% since December 31, 2012 and interest bearing balances with other banks have grown 504% over that same period. The growth in investments and interest bearing balances with other banks has been funded primarily by increased core deposits.

The growth in deposits in 2013 was extraordinary and related, in part, to changing market conditions including opportunities following a competitor's sale of a competing business line to another bank. The timing of these market events has resulted in a very liquid balance sheet at December 31, 2013.

While the Bank was successful growing loans by 18%, the pace of growth in deposits was much higher. The loan to deposit ratio at December 31, 2013 is 49% compared to 64% at December 31, 2012. The Bank added to its lending and business development staff in 2013 and expects those investments to increase loan originations and the loan to deposit ratio in the future. At December 31, 2013, the Bank's loan portfolio is a mix of commercial and industrial loans and commercial real estate loans, primarily to businesses in Santa Clara County.

Net Interest Income

Net interest income for the quarter and year ended December 31, 2013 grew significantly over the same periods ending December 31, 2012. The increase in net interest income was directly related to the higher volume of earning assets. The increase in net interest income was partially offset by a lower net interest margin related to the mix of earning assets with a significantly higher proportion of earning assets being in lower yielding investments and interest bearing deposits with other banks. Short term market interest rates also remain at historically low levels.

Non-interest Income

Non-interest income was $1,578,000 for the year ended December 31, 2013 compared to $1,159,000 for the year ended December 31, 2012. Non-interest income for both annual periods consisted primarily of gains on the sale of SBA loans, a core business of the Bank, which totaled $1,158,000 and $717,000, for 2013 and 2012, respectively. Other non-interest income includes service charges and income from the servicing of loans sold in the secondary market.

Non-Interest Expense

Non-interest expense for 2013 was $7,013,000 compared to $5,964,000 for 2012. The increase in operating expenses is primarily the result of investments in personnel, marketing and infrastructure to support the Bank's substantial growth in earning assets and low cost deposits. The number of full-time equivalent employees at December 31, 2013 was 32 compared to 28 at December 31, 2012.

Asset Quality

The Bank had no loan charge-offs in 2012 or 2013 and made no provision for loan losses in those years. The allowance for loan losses was 1.82% of total loans at December 31, 2013 compared to 2.13% at December 31, 2012. At December 31, 2013, the Bank had two loans totaling $1.1 million which were not performing in accordance with their contractual loan terms but were considered by management to be in the process of collection. Both loans were originated under the United States Small Business Administration (SBA) 7a loan program and, therefore, have guarantees from the SBA associated with them.

Capital

Focus Business Bank has capital ratios in excess of the minimum regulatory requirements for a bank to be considered well capitalized. At December 31, 2013, the total risk-based capital ratio was 14.84% compared to the regulatory well capitalized minimum of 10%. 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.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning future growth and performance. 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
                  Unaudited Summary Financial Information


                                               As of
                                  -------------------------------
                                                                   12 Month
BALANCE SHEET                     31-Dec-13  30-Sep-13  31-Dec-12  % Change
                                  ---------  ---------  ---------  --------
($ in ',000s except per share
 data)
ASSETS
Cash and due from banks
  Interest bearing                $  61,323  $  50,312  $  52,560        17%
  Non-interest bearing               41,668     42,467      6,895       504%
Federal funds sold                      501        505        505        -1%
Investment securities                63,293     47,602     29,368       116%
Loans                               140,342    134,315    119,415        18%
  Allowance for loan losses          (2,548)    (2,547)    (2,545)        0%
                                  ---------  ---------  ---------
    Net Loans                       137,794    131,768    116,870        18%
Other assets                          8,080      8,257      7,237        12%
                                  ---------  ---------  ---------

TOTAL ASSETS                      $ 312,659  $ 280,911  $ 213,435        46%
                                  =========  =========  =========

LIABILITIES
Deposits
  Non-interest bearing            $  94,661  $  80,980  $  63,065        50%
  Interest bearing                  190,354    172,509    123,295        54%
                                  ---------  ---------  ---------
    Total deposits                  285,015    253,489    186,360        53%
Other liabilities                       975      1,035        880        11%
                                  ---------  ---------  ---------
TOTAL LIABILITIES                   285,990    254,524    187,240        53%
Stockholders' equity                 26,695     26,387     26,195         2%
                                  ---------  ---------  ---------

LIABILITIES AND STOCKHOLDERS'
 EQUITY                           $ 312,685  $ 280,911  $ 213,435        47%
                                  =========  =========  =========
Book value/share                  $    9.10  $    9.00  $    8.97         1%

Balance Sheet Ratios
  Loan/deposit                           49%        53%        64%
  Non-interest/total deposit             33%        32%        34%

Regulatory Capital Ratios
  Tier-1 leverage                      8.50%      9.12%     11.77%
  Tier-1 risk based capital           13.58%     14.04%     16.81%
  Total risk-based capital            14.84%     15.30%     18.07%

Asset Quality Metrics
  Non-performing loans            $   1,098  $       -  $       -
  Non-performing loans/total
   loans                               0.78%      0.00%      0.00%
  ALLL/total loans                     1.82%      1.90%      2.13%



                            Focus Business Bank
              Unaudited Summary Financial Information (cont.)


                                    Quarters Ended          Year Ended
                                 --------------------  --------------------
INCOME STATEMENT                 31-Dec-13  31-Dec-12  31-Dec-13  31-Dec-12
                                 ---------  ---------  ---------  ---------
($ in ',000s except per share
 data)
Interest income                  $   2,067  $   1,769  $   7,445  $   6,531
Interest expense                       175        123        642        442
                                 ---------  ---------  ---------  ---------
  Net interest income                1,892      1,646      6,803      6,089
Provision for loan losses                -          -          -          -
Non-interest income                    535        421      1,578      1,159
Non-interest expense                 1,852      1,692      7,013      5,964
                                 ---------  ---------  ---------  ---------
  Pre-tax income (loss)                575        375      1,368      1,284
  Income taxes                         260        (16)       498     (2,174)
                                 ---------  ---------  ---------  ---------
Net income                       $     315  $     391  $     870  $   3,458
                                 =========  =========  =========  =========
Net income per diluted share     $    0.11  $    0.13  $    0.30  $    1.19

Performance Metrics
  Net interest margin                 2.68%      3.35%      2.80%      3.60%
  Return on average assets            0.42%      0.75%      0.33%      1.95%
  Return on average equity            4.65%      5.98%      3.28%     14.47%

Contact:
Richard L. Conniff
President and Chief Executive Officer
408.200.8701
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
"C2M is our digital transformation and IoT platform. We've had C2M on the market for almost three years now and it has a comprehensive set of functionalities that it brings to the market," explained Mahesh Ramu, Vice President, IoT Strategy and Operations at Plasma, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, 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. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...