-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HgApnTvnE4C3aTHftXtB6lqzJToSiK5qPfTIBGPkD7zWKjcFDJ9uiGK29BGg1ISx LOVFiDwraFSZXO0Bv8ZXGQ== 0000921085-01-000002.txt : 20010125 0000921085-01-000002.hdr.sgml : 20010125 ACCESSION NUMBER: 0000921085-01-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010123 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL COAST BANCORP CENTRAL INDEX KEY: 0000921085 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 770367061 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25418 FILM NUMBER: 1513982 BUSINESS ADDRESS: STREET 1: 301 MAIN ST CITY: SALINAS STATE: CA ZIP: 93901 BUSINESS PHONE: 4084226642 MAIL ADDRESS: STREET 1: P O BOX 450 CITY: SALINAS STATE: CA ZIP: 93902 FORMER COMPANY: FORMER CONFORMED NAME: SALINAS VALLEY BANCORP DATE OF NAME CHANGE: 19940330 8-K 1 0001.txt 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Seciton 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest evennt reported): January 23, 2001 ---------------- CENTRAL COAST BANCORP --------------------- (Exact name of registrant as specified in its charter) STATE OF CALIFORNIA 0-25418 77-0367061 - ------------------- ------- ---------- (State or other jurisdiction (Commission file (I.R.S. Employer of incorporation) number) Identification No.) 301 Main Street, Salinas, California 939301 - ------------------------------------ ------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (831) 422-6642 -------------- Not Applicable -------------- (Former name or former address, if changed since last report) Page 1 of 8 pages The Exhibit Index is on Page 4 1 Item 5. OTHER EVENTS. The Registrant issued a press release dated January 23, 2001 announcing record net income for both the quarter and year ended December 31, 2000. Net income for 2000 increased 10.9% to $8,926,000 versus $8,051,000 in 1999. Diluted earnings per share for 2000 were up 13.6% to $1.25 from $1.10 in 1999. The foregoing is qualified by reference to the press release attached as exhibit 99.1. Item 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) FINANCIAL STATEMENTS. Not Applicable. (b) PRO FORMA FINANCIAL INFORMATION. Not Applicable. (c) EXHIBITS. (99.1) Press Release dated January 23, 2001 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTRAL COAST BANCORP Dated: January 23, 2001 /s/ ROBERT M. STANBERRY ----------------------- Robert M. Stanberry, CFO 3 EXHIBIT INDEX
Sequential Exhibit No. Description Page No. - ----------- ----------- -------- 99.1 Press Release dated January 23, 2001 5
4 EX-99.1 2 0002.txt EXHIBIT 99.1 Exhibit 99.1 CENTRAL COAST BANCORP PRESS RELEASE Contact: Robert Stanberry Chief Financial Officer For Release 9:00am EST (831) 422-6642 CENTRAL COAST BANCORP ANNOUNCES RECORD EARNINGS FOR THE 17th CONSECUTIVE YEAR Salinas, California - January 23, 2001. Central Coast Bancorp (Nasdaq/CCBN), the holding company for Community Bank of Central California, today announced record net income for both the quarter and year ended December 31, 2000. Net income for 2000 increased 10.9% to $8,926,000 versus $8,051,000 in 1999. Diluted earnings per share for 2000 were up 13.6% to $1.25 from $1.10 in 1999. This is the 17th consecutive year of higher year over year earnings since the Bank's first year of operations in 1983. For 2000, the Company realized a return on average equity of 16.0% and a return on average assets of 1.41%, as compared to 15.5% and 1.43% for 1999. Net income for the fourth quarters of 2000 and 1999 was $2,354,000 and $2,329,000, respectively. Diluted earnings per share for the two periods were $0.33 and $0.32. The earnings per share for the 1999 periods have been adjusted for the 10% stock dividend distributed in February 2000. At December 31, 2000, the Company had total assets of $704,864,000, which was an increase of $111,419,000 (18.8%) from year-end 1999. At December 31, 2000, loans totaled $473,395,000, up $77,798,000 (19.7%) from the ending balances on December 31, 1999. Deposit growth in 2000, net of returning $20,000,000 of State of California certificates of deposit, was $135,021,000 (27.1%) resulting in ending deposit balances of $633,210,000. Nick Ventimiglia, Chairman, President and CEO, stated that, "Once again we are pleased to be able to add one more year to the Bank's now 17th consecutive year of increased earnings. We are also extremely proud of the balance sheet growth the Bank has achieved this year. It has all come from internal growth and the branch expansions into Watsonville and Hollister. Our continued goal is to increase shareholder value by becoming the dominant community based financial institution in the markets we serve by providing civic leadership and quality services." Financial Summary: - ------------------ Within the following discussion interest income, net interest income and net interest margin are presented on a fully taxable equivalent basis. Net interest income for 2000 was $33,927,000, a $5,293,000 (18.5%) increase over 1999. Interest income was up $9,935,000 (23.5%). Average loan balances were $68,989,000 (19.8%) higher in 2000. The higher balances added $6,388,000 to interest income. The average loan yield increased 67 basis points, which increased interest income by $2,783,000. Interest on investment securities decreased $144,000 as average balances decreased $12,066,000. The average balance of Fed Funds sold increased $13,704,000 resulting in an increase in interest income of $678,000. The average rate received on Fed Funds sold increased 136 basis points. The higher rates added $230,000 to interest income. 5 Interest expense was $4,642,000 higher in 2000. Average balances of interest-bearing liabilities were higher by $49,628,000, which added $2,726,000 to interest expense. Average rates paid on interest-bearing liabilities were up 66 basis points for the year. The higher rates added $1,916,000 of interest expense. Most of the added interest expense in 2000 was attributable to growth in time deposits and the higher rates paid on those deposits. Net interest margins for the years of 2000 and 1999 were 5.88% and 5.65%, respectively. During 2000, as interest rates rose, the variable rate loans repriced more quickly than the deposits resulting in quicker growth in interest income and an improving net interest margin. In 2000, the Bank provided $3,983,000 for loan losses as compared to $1,484,000 in 1999. The provision for loan losses in the fourth quarter of 2000 was $1,127,000, which was down $403,000 from the $1,530,000 recorded in the third quarter of 2000. As discussed in the third quarter 2000 press release, industry experience indicates that higher provisions be maintained when there is significant loan growth and loan concentrations. For the second straight year loan growth exceeded $77,000,000. For 2000 this represented growth of 19.7% and in 1999 the growth was 26.7%. Besides providing allowance for loan losses for the preceding factors, additional loan loss provisions were needed during 2000 for some specific loan classifications. A significant portion of the provision in 2000 resulted from several loans to a single borrower being classified as substandard, which lead to a provision of approximately $1,185,000. At December 31, 2000, these loans were performing in accordance with their terms and conditions. Non-performing assets were $754,000 at December 31, 2000 as compared to $2,110,000 at the same date in 1999. The ratios of the allowance for loan losses to nonperforming assets on those two dates were 1,243% and 265%, respectively. The allowance for loan losses to total loans at those dates was 1.98% and 1.41%, respectively. Noninterest income was up $202,000 (9.1%) in 2000 over the same period in 1999. The increase was due to higher volumes, new fees and new products. Noninterest income was negatively impacted in the fourth quarter of 2000 as the Bank realized a loss of $194,000 on the sale and repositioning of investment securities. In all of 1999, the Bank had a realized gain of $45,000 on the sale of investment securities. Noninterest expenses increased $1,365,000 (8.5%) in 2000 over 1999. Expenses related to the two new branches accounted for $413,000 of the overall increase. The following discussion regarding noninterest expenses excludes the expenses of the two new branches. Salaries and benefits were up $678,000 (7.4%). Base salaries increased $421,000 (6.2%) due to normal merit reviews, competitive employment environment and staffing additions during the year. Benefit costs increased commensurate with the salaries. Occupancy and fixed assets expense increased $461,000 (17.4%). Much of the increase is attributable to the full year effect of the relocation of two branches and remodeling of one branch and operations office space during 1999. Other expenses decreased $187,000 (4.4%). In 1999, the Bank incurred one-time costs of approximately $245,000 associated with the merger of the Bank of Salinas and Cypress Bank to form Community Bank of Central California. Normal price increases and growth in the Bank's operations accounted for the remaining higher expenses. The efficiency ratio (fully taxable equivalent) for 2000 was 47.9% as compared to 52.0% in 1999. 6 Central Coast Bancorp operates as a holding company for Community Bank of Central California. Community Bank, headquartered in Salinas, has branch offices located in the Monterey County communities of Salinas, North Salinas, Monterey, Seaside, Marina, Castroville, Gonzales and King City, in the Santa Cruz County community of Watsonville and in the San Benito County community of Hollister. The Bank provides traditional deposit, lending, mortgage and commercial products and services to business and retail customers throughout the California Central Coast area. The Bank has an Internet web site at www.community-bnk.com. Forward-Looking Statements In addition to the historical information contained herein, this press release contains certain forward-looking statements. The reader of this press release should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Company's actual results could differ materially from those suggested by such forward-looking statements. Changes to such risks and uncertainties, which could impact future financial performance, include, among others: (1) competitive pressures in the banking industry; (2) changes in the interest rate environment; (3) general economic conditions, nationally, regionally and in the operating market areas of the Company and the Bank; (4) changes in the regulatory environment; (5) changes in business conditions and inflation; (6) changes in securities markets. This entire press release should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Company's business. 301 Main Street, Salinas, California 93901 7
CENTRAL COAST BANCORP CONSOLIDATED FINANCIAL DATA (Unaudited) (Dollars in thousands, except share data) Three Months Ended Twelve Months Ended December 31 December 31 Statement of Income Data 2000 1999 2000 1999 ---- ---- ---- ---- Interest income $ 13,656 $ 11,269 $ 51,415 $ 41,517 Interest expense 4,890 3,681 18,290 13,648 ------- ------- ------- ------- Net interest income 8,766 7,588 33,125 27,869 Provision for loan losses 1,127 529 3,983 1,484 Noninterest income 583 569 2,433 2,231 Noninterest expense 4,654 4,285 17,408 16,043 Provision for taxes 1,214 1,014 5,241 4,522 ----- ----- ----- ----- Net income $ 2,354 $ 2,329 $ 8,926 $ 8,051 ================= ================== Share Data (adjusted for 10% stock dividend distribution on February 28, 2000) Earnings per share Basic $ 0.35 $ 0.33 $ 1.29 $ 1.14 Diluted $ 0.33 $ 0.32 $ 1.25 $ 1.10 Book value per common share $ 8.90 $ 7.52 Shares outstanding 6,722,000 7,084,000 6,722,000 7,084,000 Weighted average shares 6,760,000 7,084,000 6,920,000 7,072,000 Weighted average diluted shares 6,999,000 7,292,000 7,125,000 7,317,000 Balance Sheet Data Total assets $ 704,864 $ 593,445 Securities, available-for-sale 152,276 145,435 Total loans, gross 473,395 395,597 Allowance for loan losses (9,371) (5,596) Total deposits 633,210 518,189 Total shareholders' equity 59,854 53,305 Unrealized gain (loss) on securities available-for-sale, net (1,062) (4,702) Nonperforming loans 559 1,930 Other real estate owned 195 180 Selected Financial Ratios Return on average total assets 1.42% 1.57% 1.41% 1.43% Return on average equity 16.1% 17.7% 16.0% 15.5% Net interest margin (tax equivalent basis) 5.93% 5.82% 5.88% 5.65% Allowance for loan losses to total loans 1.98% 1.41% Allowance for loan losses to NPL's 1676% 290% Allowance for loan losses to NPA's 1243% 265% Total risk based capital ratio 12.3% 13.8% Tier 1 Capital ratio 11.1% 12.6%
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