SOURCE: Bank On It, Inc.

June 06, 2007 09:00 ET

Bank On It, Inc. Reports First Quarter Earnings

STOCKTON, CA--(Marketwire - June 6, 2007) - Bank On It, Inc. (OTCBB: BKOT), parent company of Community Bank of San Joaquin, reported earnings of $325,000, or $0.24 per share for the first three months of 2007, compared to $308,000 or $0.24 per share for the same period in 2006. Net interest income remained relatively flat while non-interest income increased, primarily due to gains from the sale of loans and an increase in fee income. Total operating expenses increased slightly as compared to the first quarter of 2006, primarily as a result of expenses of the new Waterloo Road branch.

Total loans increased $18.1 million to $89.4 million as of March 31, 2007, compared to $71.3 million as of March 31, 2006, representing a 25 percent increase. Loans increased $4.2 million during the first quarter of 2007 as compared to a $2.9 million decline during the first quarter of 2006. Total deposits increased $1.5 million to $110.0 million as of March 31, 2007, compared to $108.5 million as of March 31, 2006.

During the quarter, the Company elected early adoption of Statements of Financial Accounting Standards ("SFAS") No. 159 and 157. SFAS 159 was issued in February 2007 and permits the measurement of selected financial instruments at fair value. The adoption of both SFAS 159 and 157 is mandatory for fiscal years beginning after November 15, 2007; however, early adoption is permitted. Upon adoption of SFAS 159, the Company selected the fair value measurement option for $3.5 million in investment securities from its available-for-sale portfolio. The initial fair value measurement resulted in an approximate $78,000 cumulative-effect adjustment recorded as a reduction in retained earnings as of January 1, 2007. In addition, the Company recorded a positive pre-tax gain of $20,000 included in first quarter earnings resulting from the change in fair value of the securities from January 1, 2007 to March 31, 2007. The Company believes the election of fair value treatment of these securities will assist in completing a plan to extend the weighted average maturity of its bond portfolio, thus reducing the risk of lower short-term interest rates and improving future interest income. SFAS 157 prescribes a new hierarchy for measuring fair value of certain assets and liabilities. The adoption of SFAS 157 is not expected to result in materially different fair value estimates than the estimates currently in use by the Company.

About Community Bank of San Joaquin

Community Bank of San Joaquin, located at 22 West Yokuts Avenue, Stockton opened in late 1999. Locally owned and locally managed, Community Bank is truly a "full-service bank" -- specializing in banking for small businesses. It offers a variety of business and personal banking services, including commercial lending, cash management, and trust and investment services. Rudy Croce, Chairman of the Board, and Jane Butterfield, CEO and President, lead the Bank. For more information please call 209-956-7000 or visit www.cbsjbank.com.

Forward-Looking Statements

This press release may contain forward-looking statements about the Company within the meaning of the United States Private Securities Litigations Reform Act of 1995. Broadly speaking, forward-looking statements include forecasts of future financial results and condition, expectations for future operations and business, and any assumptions underlying those forecasts and expectations. They can be identified by phrases such as the Company or its management "believes," "expects," "anticipates," "foresees" or other words of similar import. The reader of this press release should not unduly rely on forward-looking statements. Actual outcomes and results might differ significantly from forecasts and expectations.


                                Bank On It, Inc.
                       Consolidated Financial Highlights
                           (IN THOUSANDS) Unaudited

CONDENSED BALANCE SHEET                                   DOLLAR    PERCENT
                                  3/31/2007   3/31/2006   CHANGE     CHANGE
ASSETS
  Cash and due from banks            $3,717      $4,621    $(904)    -20%
  Federal funds sold & money
   market investments                10,112      20,655  (10,543)    -51%
  Investments                        25,983      25,346      637       3%
  Loans, net of reserves             89,428      71,321   18,107      25%
  Bank premises and equipment, net      938         524      414      79%
  Other assets                        1,684       1,161      523      45%
  TOTAL ASSETS                     $131,862    $123,628   $8,234       7%


LIABILITIES
  Deposits
   Demand deposits                 $16,076      $22,774  $(6,698)    -29%
   Interest bearing                 93,945       85,751    8,194      10%
   Total deposits                  110,021      108,525    1,496       1%
   Trust Preferred Debt              4,124            0    4,124       NA
   Other liabilities                 2,038        1,246      792      64%
   TOTAL LIABILITIES               116,183      109,771    6,412       6%

SHAREHOLDERS' EQUITY
  Common stock; issued and
   outstanding, 1,344,918 in
   2007 and 1,272,591 in 2006       14,615       13,182    1,433      11%
  Retained earnings                  1,142          940      202      21%
  Accumulated other comprehensive
   loss, net of tax                    (78)        (265)     187     -71%
  TOTAL SHAREHOLDERS' EQUITY        15,679       13,857    1,822      13%

TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY             $131,862     $123,628   $8,234       7%


                                     Results of Operations
                                     Three Months Ending
CONDENSED STATEMENT OF INCOME      3/31/2007      3/31/2006    % CHANGE
 Interest income                    $2,280         $1,888          21%
 Interest expense                      863            456          89%
 Net interest income                 1,418          1,432          -1%
 Provision for loan losses              45             45           0%
 Net interest income after provision
 for loan losses                     1,373          1,387          -1%

 Noninterest income                    214            148          45%
 Noninterest expense                 1,061          1,038           2%
 Income before taxes                   526            497           6%
 Income tax expense                    201            189           6%
NET INCOME                            $325           $308           6%

Earnings per share*: basic           $0.24          $0.24
Earnings per share*: fully diluted    0.23           0.23
Return on average assets              1.01%          1.04%
Return on average equity              8.53%          9.07%

 *Per share amounts adjusted for 5% stock dividend issued in December 2006.
Web site: www.cbsjbank.com

Contact Information

  • Media and Investor Contact:
    Jane Butterfield
    Community Bank of San Joaquin
    (209) 955-8712
    Email Contact