SOURCE: Community Bank of Orange, N.A.

April 29, 2008 14:49 ET

Community Bank of Orange, N.A. Announces First Quarter 2008 Earnings

MIDDLETOWN, NY--(Marketwire - April 29, 2008) - Community Bank of Orange, N.A. (PINKSHEETS: CBOG) today reported a net loss of $(47,000), or $(0.02) per share for the three month period ending March 31, 2008. By comparison, the Bank's net loss for the first quarter of fiscal 2007 was $(198,000), or $(0.09) per share. These results represent a reduced loss of $151,000 and $0.07 per share, respectively. In the first quarter of 2008 the Bank recognized an increase of $9,000 in interest income on loans, securities and fed funds sold, over the same period last year. Interest expense on deposits and borrowings increased $11,000 for the same period-to-period comparison. These changes resulted in a decrease of $2,000 in net interest income for the first quarter in 2008 over 2007, from $517,000 in 2007 to $515,000 in 2008. The Bank's yield on interest-earning assets decreased 49 basis points to 6.57% in the first quarter of 2008 compared to the same period last year. The cost of interest-bearing liabilities decreased 33 basis points to 3.89% in the first quarter of 2008 from 4.22% for the first quarter of 2007. The decrease in yields on assets and costs on liabilities reflects the current decreasing rate environment that we are experiencing.

The Bank increased the combined amount of its loan and investment portfolios by $1.8 million, or 3%, from December 31, 2007. The loan portfolio grew approximately $1.0 million, or 2%, from year-end 2007. The Bank had $64.1 million in total assets at the quarter's end, a decrease of $1.3 million, or 2%, from $65.4 million at December 31, 2007. Earning assets totaled $62.6 million at March 31, 2008, compared to $63.5 million at December 31, 2007. Earning assets at March 31, 2008 consisted of $43.8 million in loans receivable, net of deferred fees and the allowance for loan losses of $700 thousand, $14.1 million in investment securities, including $0.4 million in restricted investments in bank stocks, and $4.0 million in federal funds sold.

At March 31, 2008, we had $26.9 million in commercial mortgage loans, representing 60.4% of our total loans receivable. The Bank had $12.1 million in commercial business loans, loans secured by residential properties (both 1-4 family and multifamily properties) totaled $2.0 million, home equity loans equaled $3.2 million and consumer loans were $301 thousand.

At March 31, 2008, the Bank had $51.8 million in deposits, a decrease of $0.9 million or 1.7% from December 31, 2007. Core deposits, which are defined as noninterest bearing deposits, savings, money market and interest bearing transaction accounts, amounted to $5.0 million, $6.1 million, $17.1 million and $2.4 million respectively, or 59% of total deposits.

At March 31, 2008, non-performing assets totaled $460 thousand (0.7% of total assets). The allowance for loan losses totaled $687 thousand at March 31, 2008 and represented 1.54% of total loans, as compared to 1.49% at December 31, 2007. During the first quarter of 2008, the Bank did not record any charge-offs. The allowance for loan losses was 149% of non-performing loans.

At March 31, 2008, we had $7.2 million in shareholders' equity. As of March 31, 2008, the Company's leverage ratio was 11.08%. Tier I and total risk based capital ratios were 14.23% and 15.48%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.

Commenting on the first quarter results, Anthony Ingrassia, the Bank's Chairman and Chief Executive Officer, remarked, "We are encouraged by our first quarter's results as we continue to move towards profitability, but remain aware that the current economic environment requires that the Bank work both smarter and harder. The Bank continues to offer competitive rates on both loans and deposits and to provide customized, personal service to the community." Mr. Ingrassia further stated, "The Warwick office continues to provide quality banking services to that area with total deposits of $10.6 million as of March 31, 2008. Both our Middletown and Warwick locations provide 24 hour ATM service for the convenience of our customers."

The Bank, founded in 2002, is headquartered in Middletown, New York and is the first community bank chartered in Orange County, New York in over fifty years. It offers to its individual and business customers a variety of banking services and products, including free checking and expanded banking hours. The Bank is chartered by the Office of the Comptroller of the Currency and its deposits are insured by the Federal Deposit Insurance Corporation.

NOTE: This press release may contain certain statements which are not historical facts or which concern the Company's future operations or economic performance and which are to be considered forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Bank cautions that all forward-looking statements involve risk and uncertainties, and that actual results may differ from those indicated in the forward-looking statements as a result of various factors, such as changing economic and competitive conditions and other risk and uncertainties. In addition, any statements in this news release regarding historical stock price performance are not indicative of or guarantees of future price performance.

Contact Information

    Anthony Ingrassia
    Chairman of the Board and CEO
    (845) 695-7400