Click here to close now.


Microsoft Cloud Authors: Jordan Sanders, Carmen Gonzalez, Pat Romanski, Keith Mayer, Jayaram Krishnaswamy

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.


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
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%
                                  =========  =========  =========

  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%
                                  ---------  ---------  ---------

 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
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%

Richard L. Conniff
President and Chief Executive Officer
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
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...