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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K |
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported): | October 18, 2007 |
SAN JOAQUIN BANCORP __________________________________________________________________________________________________________________________ (Exact name of registrant as specified in charter) |
California | 000-52165 | 20-5002515 | ||
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(State or Other Jurisdiction of | (Commission File Number) | (IRS Employer Identification No.) | ||
Incorporation) |
1000 Truxtun Avenue, Bakersfield, California 93301 _________________________________________________________________________________________________________________________________________ (Address of Principal Executive Offices) (Zip Code) |
661-281-0360 |
(Registrants telephone number, including area code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On October 18, 2007, the Registrant announced its earnings for the quarter ended September 30, 2007. Attached as Exhibit 99.1 and incorporated herein by reference is a copy of the press release dated October 18, 2007.
Item 9.01. Financial Statements and Exhibits.
(c) The following exhibits are included with this Report:
Exhibit 99.1 Press release dated October 18, 2007. |
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SAN JOAQUIN BANCORP By: /s/ Stephen M. Annis |
Executive Vice President and Chief Financial Officer Date: October 22, 2007 |
EXHIBIT 99.1
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Administrative Offices | ||
1000 Truxtun Avenue | Phone: (661) 281-0360 | ||
Bakersfield, CA 93301 | Fax: (661) 281-0366 |
News Release |
San Joaquin Bancorp Profits Up as Loan Growth Continues
BAKERSFIELD, Calif., October 18, 2007 (Business Wire):
San Joaquin Bancorp (OTCBB: SJQU), a bank holding company with $797 million in assets, today announced financial results for the 3rd quarter ended September 30, 2007.
Net income after tax for the 3rd quarter of 2007 was $2.35 million compared to $1.92 million reported for the 3rd quarter of 2006, an increase of 22.4% . The increase was primarily due to a reduction in the provision for loan loss expense of $375,000 for the 3rd quarter of 2007 compared to the 3rd quarter of 2006. Earnings per share (EPS) for the 3rd quarter of 2007 were $0.64 per diluted share compared to $0.52 per diluted share reported in the 3rd quarter of 2006, an increase of 23.1% .
For the nine months ended September 30, 2007, net income after tax was $6.92 million, an increase of 3.2% compared to $6.71 million reported for the nine months ended in 2006. Year-to-date EPS in 2007 were $1.87 per diluted share compared to $1.81 per diluted share reported for the same period in 2006, an increase of 3.3% .
Total loan and deposit growth continued to exceed managements expectations for 2007 with total loans, net of unearned fees, up 23% and total deposits up 21%. Total loans, net of unearned fees, increased by $116 million to $622 million at September 30, 2007 compared to $506 million at September 30, 2006. Total deposits at September 30, 2007 were $697 million as compared to $575 million at September 30, 2006, an increase of $122 million. Overall, total assets grew by $86 million or 12% to $797 million at September 30, 2007 compared to $711 million at September 30, 2006.
Bart Hill, President said, We are pleased with the results as we continue to execute strategies aimed at increasing profitability and shareholder value. Loans have continued to show healthy growth while credit quality remains high. We also are gaining momentum in deposit growth in Kern County with our market share increasing from 10.6% to 12.3% during the last 12 months.
Highlights for the Quarter:
Income Statement
Total interest income for the 3rd quarter of 2007 was $14.4 million compared to $12.2 million reported for the same quarter 2006, an increase of $2.2 million, or 18.0% . The annualized yield on average earning assets increased from 7.37% to 7.78% for the year-to-date periods ended September 30, 2006 and 2007, respectively. Of the increase in yield, annualized loan yield year to date increased from
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8.52% in 2006 to 8.58% in 2007. The annualized yield on investments, including federal funds sold and interest-bearing balances, increased to 4.40% for the year-to-date period ended September 30, 2007, compared to 4.23% for same period in 2006, due primarily to maturities of lower yielding investments. Average earning assets as a percent of total average assets increased slightly to 92.8% at 3rd quarter ended 2007 compared to 92.4% at 3rd quarter end in 2006.
Interest expense for the 3rd quarter of 2007 was $6.5 million compared to $4.9 million for the 3rd quarter of 2006, an increase of 32.7% . Average interest-bearing liabilities as a percent of total average assets were 70.3% at September 30, 2007 compared to 66.2% at September 30, 2006 with the increase due primarily to increases in savings and time deposit balances.
Net interest margin decreased for the year-to-date period from 4.68% through September 2006 to 4.27% through September 2007. The decrease is primarily due to increased interest expense related to the increase in interest-bearing liabilities.
Non-interest income was $739,000 for the 3rd quarter of 2007 compared to $725,000 for the same period in 2006, an increase of $14,000 or 1.9% . The increase was due mainly to additional service charges on deposits and other income.
Non-interest expense increased slightly on a quarterly basis for the 3rd quarter to $4.2 million in 2007 from $3.8 million in 2006, an increase of approximately 9.1% . The banks efficiency ratio, the measure of operating expense as a percent of net interest income plus non-interest income, increased from 47.0% through the end of the 3rd quarter in 2006 to 48.6% through September 30, 2007.
Annualized return on average assets (ROAA) was 1.22% for the year-to-date period ending September 30, 2007 compared to 1.35% in the same period in 2006. Annualized return on average equity (ROAE) was 21.1% for the year-to-date period ended September 30, 2006 compared to 18.9% through September 30, 2007.
Balance Sheet
Total loans, net of unearned fees, were $622 million at September 30, 2007 compared to $506 million at the end of the 3rd quarter of 2006, an increase of 23.0% . The anticipated increase is primarily attributable to growth in construction loans, loans secured by farmland, and loans to finance commercial real estate.
Total investment securities were $118 million at September 30, 2007 compared to $149 million at September 30, 2006. The decrease of $31 million or 20.8% is due to normal maturities and payments. Proceeds made available from maturities have been used to fund new higher yielding loans and/or pay down non-core funding sources, primarily Federal Home Loan Bank (FHLB) advances.
Total deposits were $697 million at 3rd quarter end 2007 as compared to $575 million for the same quarter end in 2006, an increase of $122 million, or 21.2% . Of the increase, interest-bearing deposits increased $136 million while non-interest bearing deposits decreased by $14 million.
Non-core funding, which consists of time deposits of $100,000 or more, FHLB advances, and other borrowings, decreased from $109.1 million in 2006 to $91.4 million in 2007 for the comparative 3rd quarters due to increased core funding from savings and time deposits. Net non-core funding accounted for approximately 6.5% of total funding needs at September 30, 2007 compared to 13.8% at September 30, 2006.
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Asset Quality
For the 3rd quarter 2007, the Company had net recoveries of loans previously charged off of $7,000 compared to net recoveries of $54,000 in the 3rd quarter of 2006. Net loan charge offs were $22,000 for the nine months ending September 30, 2007 compared to net recoveries of previously charged-off loans of $66,000 for the same period in 2006. The allowance for loan losses was $9.1 million or 1.46% of loans at September 30, 2007 compared to $8.2 million or 1.62% of loans at September 30, 2006.
Nonperforming and restructured loans were $4,861,000 at September 30, 2007, compared to $330,000 at September 30, 2006. The percentage of nonperforming and restructured loans to total loans, net of unearned income, was 0.78% at the end of the 3rd quarter of 2007 compared to 0.07% at the end of the 3rd quarter in 2006. Primarily all nonperforming and restructured loans were well-secured at the end of each period reported.
Total nonperforming and restructured assets were the same as nonperforming and restructured loans of $4,861,000 at September 30, 2007, compared to $330,000 at September 30, 2006. Nonperforming and restructured assets as a percentage of total assets were 0.61% and 0.05% at the end of the 3rd quarters of 2007 and 2006, respectively. The Company had no foreclosed assets at either reporting date.
San Joaquin Bancorp assesses and manages credit risk on an ongoing basis through a formal credit review program and approval policies, internal monitoring and formal lending policies of its wholly-owned bank subsidiary, San Joaquin Bank. The Company believes that the Banks ability to identify and assess risk and return characteristics of the loan portfolio is critical for profitability and growth of the consolidated group. The Company, through the Bank, emphasizes credit quality in the loan approval process, active credit administration and regular monitoring. The Bank has designed and implemented a comprehensive loan review and grading system that functions to monitor and assess the credit risk inherent in the loan portfolio.
Capital
Total shareholders equity at September 30, 2007 increased to $52.7 million compared to $45.6 million at September 30, 2006. Capital ratios for the Bank remain above the well-capitalized guidelines established by bank regulatory agencies.
Additional Information
San Joaquin Bancorp is a bank holding company formed in 2006 and is subject to the regulatory oversight of the Board of Governors of the Federal Reserve System. San Joaquin Bank, wholly-owned by San Joaquin Bancorp, is an insured state-chartered member bank of the Federal Reserve System. The Bank was established in 1980 and is headquartered in Bakersfield, California. San Joaquin Bank is a full-service, community bank with three banking offices in Bakersfield and one in Delano. San Joaquin Bank emphasizes professional, personal banking service directed primarily to small and medium-sized businesses and professionals. The Bank also provides a full range of banking services that are available to individuals, public entities, and non-profit organizations.
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
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This press release contains forward-looking statements about San Joaquin Bancorp for which it claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995, including statements with regard to descriptions of our plans or objectives for future operations, products or services, and forecasts of our revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors -- many of which are beyond our control -- could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements and reported results should not be considered an indication of our future performance. Some of these risk factors include, among others, certain credit, market, operational and liquidity risks associated with our business and operations, changes in business and economic conditions in California and nationally, rising interest rates, potential acts of terrorism (which are beyond our control), volatility of rate sensitive deposits and assets, value of real estate collateral securing many of our loans, accounting estimates and judgments, compliance costs associated with the companys internal control structure and procedures for financial reporting. These risk factors are not exhaustive and additional factors that could have an adverse effect on our business and financial performance are set forth under Risk Factors in our most recent quarterly report on Form 10-Q and annual report on Form 10-K.
Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward-looking statements are made.
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San Joaquin Bancorp and Subsidiaries | ||||
Consolidated Balance Sheet (unaudited) | ||||
As of September 30 | ||||
2007 | 2006 | |||
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ASSETS | ||||
Cash and due from banks | $ 24,431,000 | $ 30,416,000 | ||
Interest-bearing deposits in banks | 634,000 | 2,037,000 | ||
Federal funds sold | 2,800,000 | - | ||
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Total cash and cash equivalents | 27,865,000 | 32,453,000 | ||
Investment securities | ||||
Held to maturity | 111,038,000 | 141,881,000 | ||
Available-for-sale | 7,032,000 | 7,034,000 | ||
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Total Investment Securities | 118,070,000 | 148,915,000 | ||
Loans, net of unearned income | 621,579,000 | 505,546,000 | ||
Less: allowance for loan losses | (9,063,000) | (8,199,000) | ||
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Net Loans | 612,516,000 | 497,347,000 | ||
Premises and equipment | 9,129,000 | 7,707,000 | ||
Investment in real estate | 973,000 | 659,000 | ||
Interest receivable and other assets | 28,478,000 | 23,785,000 | ||
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TOTAL ASSETS | $ 797,031,000 | $ 710,866,000 | ||
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LIABILITIES | ||||
Deposits: | ||||
Noninterest-bearing | $ 158,226,000 | $ 172,117,000 | ||
Interest-bearing deposits | 539,045,000 | 403,325,000 | ||
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Total Deposits | 697,271,000 | 575,442,000 | ||
Short-term borrowings | 16,600,000 | 65,600,000 | ||
Long-term debt | 17,090,000 | 7,108,000 | ||
Accrued interest payable and other liabilities | 13,345,000 | 17,100,000 | ||
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Total Liabilities | 744,306,000 | 665,250,000 | ||
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SHAREHOLDERS' EQUITY | ||||
Common stock, no par value - 20,000,000 shares authorized; | ||||
3,534,022 and 3,479,722 issued and outstanding | ||||
at September 30, 2007 and 2006, respectively | 10,871,000 | 10,308,000 | ||
Additional paid-in capital | 359,000 | 104,000 | ||
Retained earnings | 42,958,000 | 35,321,000 | ||
Accumulated other comprehensive income (loss) | (1,463,000) | (117,000) | ||
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Total Shareholders' Equity | 52,725,000 | 45,616,000 | ||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 797,031,000 | $ 710,866,000 | ||
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San Joaquin Bancorp and Subsidiaries | ||||||||||
Consolidated Statement of Income (unaudited) | ||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||
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2007 | 2006 | 2007 | 2006 | |||||||
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INTEREST INCOME | ||||||||||
Loans (including fees) | $ 13,037,000 | $ 10,558,000 | $ 36,682,000 | $ 28,742,000 | ||||||
Investment securities | 1,363,000 | 1,610,000 | 4,307,000 | 4,859,000 | ||||||
Fed funds & other interest-bearing balances | 22,000 | 22,000 | 149,000 | 365,000 | ||||||
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Total Interest Income | 14,422,000 | 12,190,000 | 41,138,000 | 33,966,000 | ||||||
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INTEREST EXPENSE | ||||||||||
Deposits | 6,125,000 | 4,212,000 | 17,133,000 | 11,165,000 | ||||||
Short-term borrowings | 106,000 | 526,000 | 506,000 | 805,000 | ||||||
Long-term borrowings | 311,000 | 189,000 | 922,000 | 421,000 | ||||||
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Total Interest Expense | 6,542,000 | 4,927,000 | 18,561,000 | 12,391,000 | ||||||
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Net Interest Income | 7,880,000 | 7,263,000 | 22,577,000 | 21,575,000 | ||||||
Provision for loan losses | 225,000 | 600,000 | 675,000 | 1,130,000 | ||||||
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Net Interest Income After Loan Loss Provision | 7,655,000 | 6,663,000 | 21,902,000 | 20,445,000 | ||||||
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NONINTEREST INCOME | ||||||||||
Service charges & fees on deposits | 228,000 | 200,000 | 660,000 | 591,000 | ||||||
Other customer service fees | 281,000 | 317,000 | 899,000 | 949,000 | ||||||
Other | 230,000 | 208,000 | 785,000 | 694,000 | ||||||
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Total Noninterest Income | 739,000 | 725,000 | 2,344,000 | 2,234,000 | ||||||
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NONINTEREST EXPENSE | ||||||||||
Salaries and employee benefits | 2,543,000 | 2,445,000 | 7,457,000 | 7,008,000 | ||||||
Occupancy | 269,000 | 245,000 | 738,000 | 681,000 | ||||||
Furniture & equipment | 298,000 | 257,000 | 799,000 | 780,000 | ||||||
Promotional | 158,000 | 131,000 | 495,000 | 433,000 | ||||||
Professional | 343,000 | 305,000 | 1,060,000 | 885,000 | ||||||
Other | 580,000 | 458,000 | 1,569,000 | 1,405,000 | ||||||
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Total Noninterest Expense | 4,191,000 | 3,841,000 | 12,118,000 | 11,192,000 | ||||||
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Income Before Taxes | 4,203,000 | 3,547,000 | 12,128,000 | 11,487,000 | ||||||
Income Taxes | 1,851,000 | 1,625,000 | 5,204,000 | 4,777,000 | ||||||
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NET INCOME | $ 2,352,000 | $ 1,922,000 | $ 6,924,000 | $ 6,710,000 | ||||||
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Basic Earnings per Share | $ 0.67 | $ 0.55 | $ 1.96 | $ 1.93 | ||||||
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Diluted Earnings per Share | $ 0.64 | $ 0.52 | $ 1.87 | $ 1.81 | ||||||
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San Joaquin Bancorp and Subsidiaries | ||||||
Financial Highlights (unaudited) | ||||||
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(data in thousands except per share data) | ---Nine Months--- | % Variance | ||||
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(unaudited) | 2007 | 2006 | 2007 vs. 2006 | |||
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Net Interest Income | $ 22,577 | $ 21,575 | 4.6% | |||
Non Interest Income | $ 2,344 | $ 2,234 | 4.9% | |||
Addition to Provision for Loan Losses | $ 675 | $ 1,130 | -40.3% | |||
Net Income | $ 6,924 | $ 6,710 | 3.2% | |||
Total Assets | $ 797,031 | $ 710,866 | 12.1% | |||
Total Loans, Net of Unearned Income | $ 621,579 | $ 505,546 | 23.0% | |||
Total Deposits | $ 697,271 | $ 575,442 | 21.2% | |||
Total Shareholders Equity | $ 52,725 | $ 45,616 | 15.6% | |||
Basic Earnings per Share | $ 1.96 | $ 1.93 | 1.6% | |||
Diluted Earnings per Share | $ 1.87 | $ 1.81 | 3.3% | |||
Book Value per Share | $ 14.92 | $ 13.11 | 13.8% | |||
Key Ratios: | ||||||
Annualized Return on Average Equity | 18.91% | 21.11% | ||||
Annualized Return on Average Assets | 1.22% | 1.35% | ||||
Annualized Net Interest Margin | 4.27% | 4.68% | ||||
Efficiency Ratio | 48.63% | 47.01% | ||||
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San Joaquin Bancorp Contact Information:
Bart Hill President (661) 281-0300
Stephen M. Annis
Executive Vice President & Chief Financial Officer (661) 281-0360
Company Website: www.sjbank.com
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