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EXHIBIT 99.1
Press Release Announcing Earnings for the Quarter ended September 30, 2000.
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FOR RELEASE: FRIDAY, OCTOBER 20, 2000
CONTACTS:
RONALD W. BACHLI, CHIEF EXECUTIVE OFFICER (415) 434-1268
DAVID HOOSTON, CHIEF FINANCIAL OFFICER (714) 940-8758
FOR IMMEDIATE RELEASE
CALIFORNIA COMMUNITY BANCSHARES, INC.
REPORTS RECORD EARNINGS
SAN FRANCISCO, CALIFORNIA OCTOBER 20, 2000 - California Community Bancshares,
Inc. reported record third quarter consolidated operating earnings (net income
before one-time merger and restructuring expenses and the amortization of
purchase intangibles, net of their tax effect) of $2.2 million, a 47% increase
over second quarter consolidated operating earnings of $1.5 million.
Consolidated net income for the third quarter was $871 thousand compared to a
net loss of ($654) thousand for the second quarter. Consolidated operating
earnings and net loss for the nine months ended September 30, 2000 were $4.1
million and ($341) thousand, respectively. Earnings for the first six months of
2000 were impacted by significant one-time merger and restructuring expenses
relating to the Company's three subsidiary banks and its March acquisition of
Sacramento Commercial Bank.
As a result of its continuing selective acquisition and growth strategy,
California Community Bancshares' assets grew $350 million or 42% during the
first nine months of this year. Deposits grew $314 million, or 44%, with demand
deposits growing $85 million, or 56%. Loans for the same period grew $191
million, or 34%.
Ronald W. Bachli, President and Chief Executive Officer of the Company stated,
"We are very pleased with the earnings performance of our Company and its three
subsidiary banks. Of special importance is the quality of our assets and core
revenues. At September 30, 2000, non-performing assets to total loans were only
0.48% and net charge-offs were only $5 thousand for the first nine months of the
year. Our net interest income during the first nine months reached $35 million,
a 67% increase over net interest income of $21 million earned during the 12
months ended December 31, 1999. We are also pleased that during a rising
interest rate environment, when most banks' suffer a decline in their net
interest margins, our consolidated net interest margins improved from 5.04%
during January of this year to 5.18% during September."
"The success of California Community Bancshares' focused growth strategy", as
explained by Richard W. Decker, Jr., Chairman of the Board, "is due to the
significantly higher lending limits, diversified products, and advanced
technology that California Community Bancshares provides to its' customers,
combined with the high level of specialized financial services and customer
relationships that only a community bank can provide. This combination creates a
significant competitive advantage for our family of community banks."
California Community Bancshares, Inc. is a statewide multi-bank holding
company, operating Sacramento Commercial Bank and Placer Sierra Bank in
Northern California, and Bank of Orange County in Southern California. At
September 30, 2000 California Community Bancshares, Inc. had assets of $1.2
billion, gross loans of $749 million, deposits of $1.0 billion, and
regulatory capital of $74.0 million.
This press release contains certain forward-looking statements that are subject
to risks and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements. Such risks and
uncertainties include, among others, (1) significant increases in competitive
pressure in the financial services industry; (2) changes in the interest rate
environment resulting in reduced margins; (3) general economic conditions,
either nationally or regionally, are less favorable than expected, resulting in,
among other things, a deterioration in credit quality; (4) changes in the
regulatory environment; (5) fluctuations in the real estate market; (6) changes
in business conditions and inflation; and (7) changes in securities markets.
Therefore, the information set forth in such forward-looking statements should
be carefully considered when evaluating the business prospects of the Company.
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CALIFORNIA COMMUNITY BANCSHARES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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<CAPTION>
Nine months Ended Three Months Ended
September 30, September 30,
2000 2000
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(IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C>
Interest income $ 58,419 $ 21,594
Interest expense 23,205 8,644
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Net interest income before provision loan and lease losses 35,214 12,950
Provision for loan and lease losses 750 305
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Net interest income after provision for loan and leases losses 34,464 12,645
Noninterest income 4,800 1,729
Noninterest expense, excluding amortization of intangibles 33,870 10,938
Amortization of intangibles 4,535 1,624
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Noninterest expense 38,405 12,562
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Income before income taxes and minority interest 859 1,812
Income taxes (benefit) 944 859
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Income (loss) before minority interests (85) 953
Dividend on preferred stock of minority interest 256 82
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Net income (loss) $ (341) $ 871
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OPERATING NET INCOME
Net income (loss) (341) 871
Amortization of intangibles, net of tax 3,569 1,291
After-tax reorganization and merger-related costs 914 --
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Operating net income $ 4,142 $ 2,162
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PER SHARE INFORMATION:
Weighted average common shares outstanding:
Basic 25,207.0 26,312.6
Diluted 25,793.1 26,898.7
Net income (loss) per share:
Basic $ (0.01) $ 0.03
Diluted $ (0.01) $ 0.03
Operating net income per share:
Basic $ 0.16 $ 0.08
Diluted $ 0.16 $ 0.08
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CALIFORNIA COMMUNITY BANCSHARES, INC
BALANCE SHEETS
(UNAUDITED)
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<CAPTION>
AT 9/30/00 AT 12/31/99
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(IN THOUSANDS)
ASSETS
<S> <C> <C>
Cash and due from banks $ 60,802 $ 39,569
Federal funds sold 77,786 20,791
Investment securities, available for sale, at fair value 189,151 134,936
Loans and leases 748,944 558,149
Allowance for loan and lease losses (10,041) (6,750)
Real estate owned, net 4,938 5,001
Bank premises and equipment, net 23,598 20,874
Goodwill and other intangibles 84,460 61,868
Investment in subsidiaries -- --
Other assets 13,493 8,741
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Total assets $ 1,193,131 $ 843,179
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LIABILITIES AND STOCKHOLDER'S EQUITY
Non-interest bearing $ 236,296 $ 151,121
Interest bearing 790,348 561,641
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Total deposits 1,026,644 712,762
Other Liaibities 15,379 12,583
Trust preferred securities 18,500 18,500
Minority interest - preferred stock 3,500 3,500
Stockholder's equity 129,108 95,834
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Total liabilities and stockholder's equity $ 1,193,131 $ 843,179
=============== ===============
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