<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 20549
(Mark One)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
--------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________________to_____________________.
Commission File Number 0-26552
-------
CALIFORNIA INDEPENDENT BANCORP
---------------------------------
(Exact name of registrant as specified in its charter)
CALIFORNIA 68-0349947
---------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1005 STAFFORD WAY, YUBA CITY, CALIFORNIA 95991
----------------------------------------------
(Address of principal executive offices)
(Zip Code)
(916) 674-4444
-----------------
(Registrant's telephone number, including area code)
N/A
-------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Outstanding at
Class March 31, 1996
----- --------------
Common stock, no par value 1,451,278 Shares
This report contains a total of 15 PAGES
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1
<PAGE>
PART I- FINANCIAL INFORMATION
ITEM 1 PAGE
CALIFORNIA INDEPENDENT BANCORP AND
SUBSIDIARIES FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS 3
CONSOLIDATED STATEMENTS OF INCOME FOR THREE MONTHS 4
CONSOLIDATED STATEMENTS OF CASH FLOWS 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
ITEM 2
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL 7-14
CONDITION AND RESULTS OF OPERATIONS
PART II- OTHER INFORMATION
ITEM 3
SIGNATURES 15
2
<PAGE>
CALIFORNIA INDEPENDENT BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31,
1996 1995
--------------- ------------
ASSETS
<S> <C> <C>
Cash and due from banks $ 16,280 $ 17,963
Federal funds sold 33,600 30,000
---------------- ------------
Total Cash and Equivalents 49,880 47,963
Investment securities:
Available-for-sale securities, at
fair value 4,795 5,890
Held-to-maturity securities, at
amortized cost (fair value of
$18,364 and $22,132 respecttively) 17,969 21,538
Loans:
Commercial 66,946 74,355
Consumer 3,162 2,815
Real Estate-mortgage 29,367 28,288
Real Estate-construction 20,152 18,048
Other 13,796 4,738
---------------- ------------
Total loans 133,423 128,244
Less allowance for possible loan losses (3,959) (3,911)
---------------- ------------
Net Loans 129,464 124,333
Premises and equipment, net 6,488 6,394
Accrued interest receivable and other
assets 6,342 8,458
---------------- ------------
12,830 14,852
TOTAL ASSETS $ 214,938 $ 214,576
---------------- ------------
---------------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand, non-interest bearing $ 39,685 $ 43,827
Demand, interest bearing 29,202 27,315
Savings and Money Market 62,243 61,291
Time certificates 61,873 60,863
---------------- ------------
Total deposits 193,003 193,296
Accrued interest payable and other
liabilities 2,430 2,405
---------------- ------------
TOTAL LIABILITIES 195,433 195,701
Shareholders' equity:
Common stock, no par value; 20,000,000
shares authorized; 1,451,278 and
1,446,888 shares issued and
outstanding at March 31, 1996 and at
December 31, 1995, respectively 8,217 8,163
Retained earnings 11,315 10,687
Net unrealized gains (losses) on available-
for-sale securities (27) 25
---------------- ------------
Total shareholders' equity 19,505 18,875
---------------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 214,938 $ 214,576
---------------- ------------
---------------- ------------
</TABLE>
See accompanying notes to consolidated financial statements
3
<PAGE>
CALIFORNIA INDEPENDENT BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months Three months
ended ended
March 31, 1996 March 31, 1995
----------------------------------
<S> <C> <C>
Interest income:
Interest and fees on loans $ 3,758 $ 3,709
Interest on investment securities 506 527
Interest on federal funds sold 559 143
------------- -------------
Total interest income 4,823 4,379
------------- -------------
Interest expense:
Demand, interest bearing 247 224
Savings 602 553
Time certificates 890 613
Other 7 4
------------- -------------
Total interest expense 1,746 1,394
------------- -------------
Net interest income 3,077 2,985
Provision for possible loan losses (60) (245)
------------- -------------
Net interest income after provision for possible loan losses 3,017 2,740
------------- -------------
Other income:
Service charges 208 202
Net gain (loss on securities transactions) 4 (13)
Other 426 168
------------- -------------
Total other income 638 357
------------- -------------
Other expenses:
Salaries and benefits 1,245 1,027
Occupancy 141 129
Equipment 210 184
Other operating expenses 750 747
------------- -------------
Total other expenses 2,346 2,087
Earnings before income taxes 1,309 1,010
Income taxes 522 396
------------- -------------
Net Income $ 787 $ 614
------------- -------------
------------- -------------
Primary earnings per share $ 0.54 $ 0.49
------------- -------------
------------- -------------
Weighted average shares outstanding 1,451,278 1,243,350
------------- -------------
------------- -------------
Fully Diluted:
Earnings per share $ 0.47 $ 0.42
------------- -------------
Weighted average shares outstanding 1,673,398 1,471,095
------------- -------------
Cash dividend paid per share of common stock $ 0.11 $ 0.11
------------- -------------
</TABLE>
See accompanying notes to consolidated financial statements
4
<PAGE>
CALIFORNIA INDEPENDENT BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND MARCH 31, 1995
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31 MARCH 31
1996 1995
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 787 $ 614
Adjustments to reconcile net income to net cash provided
by operating activities-
Depreciation and amortization 142 112
Provision for possible loan losses 60 245
Provision for deferred taxes (1,043) (1,050)
(Increase) decrease in assets-
Interest receivable (1,079) (275)
Other assets 4,449 666
Increase (decrease) in liabilities-
Interest payable (297) 196
Other liabilities 323 (8)
------------ ------------
Net cash provided by operating activities 3,342 500
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) decrease in loans (5,190) 5,171
Purchase of investments (1,082) (9,716)
Proceeds from Maturity of HTM Securities 3,673 8,713
Proceeds from sales of AFS Securities 2,054 120
Proceeds from sales of other real estate owned 0 (35)
Purchases of premises and equipment (482) (111)
------------ ------------
Net cash used for investing activities (1,027) 4,142
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in noninterest bearing deposits (4,103) (11,016)
Net increase in interest bearing deposits 3,849 5,294
Cash dividends (159) (150)
Stock options exercised 54 7
Cash paid in lieu of fractional shares 0 0
------------ ------------
Net cash provided by financing activities (359) (5,865)
NET INCREASE(DECREASE) 1,956 (1,223)
------------ ------------
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 47,963 22,579
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 49,919 21,356
------------ ------------
------------ ------------
</TABLE>
5
<PAGE>
CALIFORNIA INDEPENDENT BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
In the opinion of the Company, the unaudited consolidated financial
statements, prepared on the accrual basis of accounting, contain all
adjustments (consisting of only normal recurring adjustments) which
are necessary to present fairly the financial position of the Company and
subsidiaries at March 31, 1996 and December 31, 1995 and the results of its
operations for the periods ended March 31, 1996 and 1995.
Certain information and footnote disclosures normally presented in
financial statements prepared in accordance with generally accepted
accounting principles have been omitted. The results of operations for
the period ended March 31, 1996 are not necessarily indicative of the
operating results for the full year ending December 31, 1996.
NOTE 2 - CONSOLIDATION
The consolidated financial statements include the accounts of the Company
and its wholly owned subsidiary Feather River State Bank. All material
intercompany accounts and transactions have been eliminated in
consolidation.
It should be noted that all March 31,1995 figures are those of Feather
River State Bank only. California Independent Bancorp was formed on May
2, 1995.
NOTE 3 - LOANS TO DIRECTORS
In the ordinary course of business, the Company makes loans to directors of
the company, which on March 31, 1996 amounted to a total of approximately
$5,757,636.
NOTE 4 - COMMITMENTS & CONTINGENT LIABILITIES
In the normal course of business, there are outstanding various commitments
and contingent liabilities, such as commitments to extend credit and
letters of credit which are not reflected in the financial statements.
Management does not anticipate any material loss as a result of these
transactions.
NOTE 5 - NET INCOME PER SHARE
Net Income per share is computed using the weighted average number of
shares of common stock outstanding (as adjusted retroactively to reflect
the 5% stock dividend paid on July 14, 1995).
NOTE 6 - CASH DIVIDENDS
The Bancorp paid an eleven cents per share dividend in February 1996.
6
<PAGE>
CALIFORNIA INDEPENDENT BANCORP AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW OF CHANGES IN THE FINANCIAL STATEMENTS
Net income for the three months ended March 31, 1996 was $787,000 or $0.54 per
share compared to $614,000 or $0.49 per share during the same period in 1995,
representing an increase in net income of 28.2%.
These increases in net income are due mainly to a combination of an increase in
net interest margin which resulted from rising interest rates in which the
Company's earning assets have repriced faster than its deposits, and an increase
in net loans outstanding. In addition the Company had a substantial decrease in
the allocation for loan loss reserves.
Outstanding net loans were $129,464,000, on March 31, 1996 compared to
$124,333,000 at December 31, 1995 an increase of $5,131,000 or 4.1%.
The Company's investment portfolio at March 31, 1996 was $22,764,000 or 10.59%
of total assets, a decline from $27,428,000 or 12.78% at December 31, 1995 as
the Company invested additional monies in Federal Funds Sold (overnight
investments with other banks) which were yielding a higher interest rate than 5-
year U.S. Treasury securities. At March 31, 1996 Federal Funds Sold were
$33,600,000 as compared to $30,000,000 at December 31, 1995, reflecting not only
the shift of funds described above that otherwise would have been placed in
investment securities but also the Company's intention to increase deposits for
liqudity purposes to fund loans during the Company's peak agricultural lending
period which usually occurs in the third quarter of each year.
The total deposits of March 31, 1996 were $193,003,000, compared to $193,296,000
at December 31, 1995. During the first quarter of 1996 demand deposits
decreased from $43,827,000 at December 31, 1995 to $39,685,000 at March 31,
1996. The Company attributes this decrease of $4,142,000 or 9.5% in demand
deposits to depositors shifting their funds into interest bearing deposits with
the institution.
The total loan to deposit ratio was at 69.1% at March 31, 1996, compared to
66.3% at December 31, 1995. This increase is the result of normal lending
cycles of agricultural loans and the purchase of leases.
LOANS
Outstanding total loans at March 31, 1996 were $133,423,000, an increase of
$5,179,000 or 4.0% over year end 1995.
This increase primarily represents the purchase of $5,004,000 in leases from
another financial institution. The leases are structured in pools of
approximately $1,000,000. Each pool contains approximately 40 to 60 commercial
and industrial equipment leases (average individual lease size is about
$20,000). To mitigate risk, the leases are diversified by size, industry, type
of equipment and location. Feather River State Bank has committed to purchase a
total of $10,000,000 of lease pools from the institution. The remainder of the
lease purchases will occur during the second quarter of 1996. The Financial
institution is a volume producer of equipment leases and structures similar
transactions with a number of California independent banks.
7
<PAGE>
In addition to the purchase of the leases there has been an increase in both
Loans to farmers and Real Estate construction loans.
Loans to farmers are reported under "Commercial Loans" in the consolidated
balance sheet, and these loans traditionally have peak outstandings at harvest
time in July of each year, followed by a low point in outstanding balances
around November-December.
Real Estate construction loans generally increase substantially in the spring
and summer months as the weather and the buyers market improves each year.
The company lends primarily to small and medium sized businesses, farmers and
consumers within its market area, which is comprised principally of Sutter,
Yuba, Colusa, Yolo, Butte and Sacramento counties in the northern end of the
Central Valley of California.
During the first quarter of 1996 the Company elected to close the SBA loan
production center. The decision to close this office was a result of the
competion from major SBA lenders who had preferred lender status. This status
allowed the competition to approve loans without going directly to SBA, while
Feather River State Bank as a certified lender had to submit all loans for
approval to SBA. The delay in the approval process resulted in losing many
loans to the competition.
LOAN QUALITY
The Company places loans on nonaccrual status when they are 90 days past due as
to interest and principal, unless the loan is well secured and in the process of
collection.
The following table summarizes the composition of non-performing loans as of
March 31, 1996, December 31, 1995 and March 31, 1995.
<TABLE>
<CAPTION>
March 31 December 31, March 31
1996 1995 1995
-------------------------------------------
<S> <C> <C> <C>
Accruing loans past due
90 days or more
Commerical $ 11 $ 18 $ 489
Consumer - - -
Real Estate - - -
Leases 81 42 12
-------------------------------------------
Total $ 92 $ 60 $ 501
-------------------------------------------
Nonaccrual loans
Commercial 1,579 137 96
Consumer - - -
Real Estate 156 156 1,179
-------------------------------------------
Total 1,735 293 1,275
-------------------------------------------
Total Nonperforming
Loans $ 1,827 $ 353 $ 1,776
-------------------------------------------
-------------------------------------------
</TABLE>
8
<PAGE>
During the first quarter of 1996, nonaccrual loans increased substantially
compared to December 31, 1995 due to the transfer to two large agricultural
credit relationships to nonaccrual status. Both of these loans were to valley
farmers who suffered sigificant farming losses due to adverse weather and other
conditions. The Bank has been in the process of negotiating liqidations on both
accounts. Based upon the value of the remaining collateral, it appears that one
of the loan relationships will be fully paid off by January 1, 1997 and the
other should be significantly reduced by July 1, 1996. Some loss exposure
exists on both accounts. However, management feels that this can be minimized
through prudent collection activity.
In addition to the above, the Company holds Real Estate properties as "Other
Real Estate Owned" (OREO) recorded at $965,135 at March 31, 1996. In all cases
the amount recorded on the books is the lesser of the loan balance or the fair
market value obtained from a current appraisal. Therefore any identified losses
have already been recognized.
Inherent in the lending function is the fact that loan losses will be
experienced and that the risk of loss will vary with the type of loan extended
and the creditworthiness of the borrower. To reflect the estimated risks of
loss associated with its loan portfolio, provisions are made to the Bank's
allowance for possible loan losses. As an integral part of this process, the
allowance for possible loan losses is subject to review and possible adjustment
as a result of regulatory examinations conducted by governmental agencies and
through Management's assessment of risk.
The Bank uses the allowance method in providing for possible loan losses. Loan
losses are charged to the allowance for possible loan losses and recoveries are
credited to it.
Management believes that the total allowance for loan losses is adequate and
continues to be maintained at a level above the Bank's peer group. While
Management uses available information to provide for loan losses, future
additions to the allowance may be necessary based on changes in economic
conditions.
The allowance for loan losses at March 31, 1996 was $3,959,000 an increase from
$3,911,000 at year-end 1995, and is equal to 2.97% of the Bank's outstanding
loans at March 31, 1996.
Additions to the allowance for loan losses are made by provisions for possible
loan losses. The provision for possible loan losses is charged to operating
expense and is based upon past loan loss experience and estimates of potential
losses which, in Management's judgment, deserve current recognition. Other
factors considered by Management include growth, composition and overall quality
of the loan portfolio, review of specific problem loans, and current economic
conditions that may affect the borrowers' ability to pay. Actual losses may
vary from current estimates. The estimates are reviewed periodically, and
adjustments, as necessary, are charged to operations in the period in which they
become known.
For the three months ended March 31, 1996, the Bank charged-off $43,110 and
recovered $31,354. The majority of the charge-offs were in connection with one
agricultural loan in which the Bank accepted a discounted payoff.
9
<PAGE>
RESULTS OF OPERATIONS
Three months ended March 31, 1996
compared with
Three months ended March 31, 1995
Net income for the three months ended March 31, 1996 was $787,000 as compared to
the March 31,1995 figure of $614,000 an increase of 28.2%.
The increase in net income for the three month period ended March 31, 1996 was
largely due to an increase of $92,000 in net interest income and by a decrease
in the provisions for loan losses of $185,000. In addition the Company's other
income increased by $281,000 during the first quarter of 1996 as compared to the
same quarter of 1995. This increase is the result of the gain on the sale of
SBA loans. The increases in income were partially offset by an increase of
$352,000 in interest expense for the first quarter of 1996 over 1995.
The yield on average earning assets for the three month period ended March 31,
1996 compared to the same periods in 1995 are set forth in the following table
(in thousands except for percentages):
Three months ended Three months ended
March 31, 1996 March 31, 1995
Average loans $ 143,930 $ 131,121
outstanding
Average yields 12.21% 11.09%
Amount of interest
& fees earned $ 4,393 $ 3,635
Average prime rate 8.77% 7.50%
A large portion of the Company's loan portfolio is based upon the Bank's
reference rate, adjusted on a daily basis so that rate changes have an
immediate effect on the loan interest yield. The Bank's reference rate closely
tracks the prime rate.
Rates and amounts paid on average deposits, including non-interest bearing
deposits for the three and nine month periods ended March 31, 1996 compared to
the same periods in 1995 are set forth in the following table (in thousands
except for percentages):
Three months ended Three months ended
March 31, 1996 March 31, 1995
Average deposits $ 192,453 $ 170,219
outstanding
Average rates paid 3.61% 3.27%
Amount of interest
paid or accrued $ 1,739 $ 1,390
10
<PAGE>
Provisions for possible loan losses for the three months ended March 31, 1996
were $60,000 and for the three months ended March 31, 1995 were $245,000. This
represents a decrease of $185,000 or 75.5%. The substantial decrease is a
result of management's strategy to bring the total loan loss reserves up to a
level equal to 3% of total loans outstanding. This goal was met by year end
1995, therefore the allocation was decreased beginning with the first quarter of
1996.
On March 31, 1996 total reserves for loan losses equaled 2.97% of total loans as
compared to March 31, 1995 which was 2.71%.
Charge-offs exceeded recoveries by $12,000 and $139,000 for the three month
periods ended March 31, 1996 and 1995 respectively.
The following tables summarize the principal elements of operating expenses and
disclose the increases (decreases) and percent of increases (decreases) for the
three months ended March 31,1996 and 1995 (amounts in thousands except for
percentages):
Three months ended March 31 Increase (Decrease)
1996 over 1995
1996 1995 Amount Percentage
Salaries and benefits $ 1,245 $ 1,027 $ 218 21.23%
Occupancy 141 129 12 9.30%
Equipment 210 184 26 14.13%
Advertising and promotion 104 66 38 57.58%
Stationery and supplies 68 51 17 33.33%
Regulatory assessments 7 98 (91) -92.86%
Other operating expenses 571 532 39 7.33%
-------------------------- ------------------
Total other expenses $ 2,346 $ 2,087 $ 259 12.41%
-------------------------- ------------------
-------------------------- ------------------
11
<PAGE>
The increases in salaries and benefits resulted from normal salary increases and
increased staffing for the Chico Loan Production Office.
The Company employed 139 full time equivalent employees on March 31, 1996,
compared to 140 on December 31, 1995 and 132 on March 31, 1995.
The increase in occupancy and equipment expense over 1995 is attributable to the
purchase and remodeling of a new building for our Marysville branch which opened
in the second quarter of 1996. In addition, the Company purchased Automated
Teller Machines, ATM's, for each of their six branches.
The increase of $38,000 during the first quarter of 1996 over 1995 in
advertising and promotion is primarily due to the Company's committment to
continued advertising in the market area's it serves. The Company had a
substantial decrease of $91,000 in Regulatory Assessments in the first quarter
of 1996 as compared to the same period in 1995 due to a significant reduction in
FDIC Insurance Assessments. Applicable income taxes for the three month period
ended March 31, 1996 and March 31, 1995 were $522,000 and $396,000 respectively,
and increase of $126,000 or 31.8% due to increased income.
The Company's effective tax rate for the three months ended March 31, 1996 and
1995 were 39.6% and 39.2% respectively.
LIQUIDITY
During the first quarter of the year the bank tends to have sufficient
liquidity. The Bank's seasonal agricultural loan demand tends to challenge
the Bank's liquidity position beginning with the second quarter and
continuing into the third quarter of each year. The Bank's liquid assets
consist of cash and due from banks, federal funds sold and investment
securities with maturities of one year or less (exclusive of pledged
securities). Also, SBA and mortgage loans are readily marketable and may be
available for sale for the Bank's short-term liquidity needs.
In addition, the Bank has formal and informal borrowing arrangements with the
Federal Reserve Bank and its correspondent bank to meet unforeseen deposit
outflows or loan funding demands. During 1995, the Bank was able to attract
enough deposits so that these lines were not used. As of March 31, 1996 and
December 31, 1995 the bank had no balances outstanding on these lines.
The Bank has also entered into an agreement with Lehman Brothers for a short
term loan secured by U.S. Government and Agency Obligations in the Bank's
investment portfolio, in order to fund any liquidity needs not met by other
sources of funding as warranted by loan demand.
CAPITAL RESOURCES
The Company has sustained its growth in capital through profit retention, net of
cash dividends paid out to shareholders.
On March 31, 1996 total shareholders equity has increased by $630,000 primarily
via retained earnings, and stood at $19,505,000.
On December 31, 1995 total shareholders equity was $18,875,000.
The Company is subject to capital adequacy guidelines issued by Federal
Regulators. These guidelines are intended to reflect the degree of risk
associated with both on- and off-balance sheet items.
12
<PAGE>
Financial institutions are expected to comply with a minimum ratio of qualifying
total capital to risk-weighted assets of 8%, at least half of which must to be
in Tier 1 Capital.
In addition, federal agencies have adopted a minimum leverage ratio of Tier 1
Capital to total assets of 4% which is intended to supplement risk based capital
requirements and to ensure that all financial institutions continue to maintain
a minimum level of core capital.
As can be seen by the following table, the Company exceeded all regulatory
capital ratios on March 31, 1996 and on December 31, 1995:
RISK BASED CAPITAL RATIO
AS OF MARCH 31, 1996
- -------------------------------------------------------------------------------
Company Bank
(Dollars in thousands) Amount Ratio Amount Ratio
- -------------------------------------------------------------------------------
Tier 1 Capital $ 19,505 11.80% $ 19,413 11.75%
Tier 1 Capital minimum
requirement 6,613 4.00% 6,609 4.00%
---------------------------------------------
Excess $ 12,892 7.80% $ 12,804 7.75%
---------------------------------------------
---------------------------------------------
Total Capital 22,918 13.86% 22,826 13.81%
Total Capital minimum
requirement 13,226 8.00% 13,219 8.00%
---------------------------------------------
Excess $ 9,692 5.86% $ 9,607 5.81%
---------------------------------------------
Risk-adjusted assets $165,324 $165,232
-------- --------
-------- --------
LEVERAGE CAPITAL RATIO
Tier 1 Capital to quarterly $ 19,505 9.12% $ 19,413 9.07%
average total assets
Minimum leverage requirement 8,557 4.00% 8,561 4.00%
---------------------------------------------
Excess $ 10,948 5.12% $ 10,852 5.07%
---------------------------------------------
---------------------------------------------
Total Quarterly average assets $213,926 $214,027
-------- --------
-------- --------
RISK BASED CAPITAL RATIO
AS OF DECEMBER 31, 1995
- -------------------------------------------------------------------------------
Company Bank
(Dollars in thousands) Amount Ratio Amount Ratio
- -------------------------------------------------------------------------------
Tier 1 Capital $ 18,875 11.17% $ 18,753 11.10%
Tier 1 Capital minimum
requirement 6,759 4.00% 6,755 4.00%
---------------------------------------------
Excess $ 12,116 7.17% $ 11,998 7.10%
---------------------------------------------
Total Capital 22,087 13.07% 22,085 13.08%
Total Capital minimum
requirement 13,518 8.00% 13,510 8.00%
---------------------------------------------
Excess $ 8,569 5.07% $ 8,575 5.08%
---------------------------------------------
Risk-adjusted assets $168,969 $168,875
--------- ---------
--------- ---------
LEVERAGE CAPITAL RATIO
Tier 1 Capital to quarterly $ 18,875 9.00% $ 18,753 8.95%
average total asset
Minimum leverage requirement 8,385 4.00% 8,380 4.00%
---------------------------------------------
Excess $ 10,490 5.00% $ 10,373 4.95%
---------------------------------------------
---------------------------------------------
Total Quarterly average assets $209,624 $209,496
--------- ---------
--------- ---------
14
<PAGE>
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 thereunto duly authorized.
Date May 6, 1996 /S/ Robert J. Mulder
----------------------- ---------------------------------
Robert J. Mulder
President/CEO
Date May 6, 1996 /S/ Annette Bertolini
----------------------- ---------------------------------
Annette Bertolini
Chief Financial Officer
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<CIK> 0000948976
<NAME> CALIFORNIA INDEPENDENT BANCORP
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 16,280
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 33,600
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,795
<INVESTMENTS-CARRYING> 17,969
<INVESTMENTS-MARKET> 18,364
<LOANS> 133,423
<ALLOWANCE> 3,959
<TOTAL-ASSETS> 214,938
<DEPOSITS> 193,003
<SHORT-TERM> 512
<LIABILITIES-OTHER> 1,902
<LONG-TERM> 16
0
0
<COMMON> 8,217
<OTHER-SE> 11,288
<TOTAL-LIABILITIES-AND-EQUITY> 214,938
<INTEREST-LOAN> 3,758
<INTEREST-INVEST> 1,065
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 4,823
<INTEREST-DEPOSIT> 1,739
<INTEREST-EXPENSE> 1,746
<INTEREST-INCOME-NET> 3,077
<LOAN-LOSSES> 60
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<INCOME-PRE-EXTRAORDINARY> 1,309
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<EPS-PRIMARY> .54
<EPS-DILUTED> .47
<YIELD-ACTUAL> 10.16
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<ALLOWANCE-CLOSE> 3,959
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</TABLE>
