SOURCE: Granite Community Bank, N.A.

November 05, 2007 22:30 ET

Granite Community Bank Announces Year to Date Results

GRANITE BAY, CA--(Marketwire - November 5, 2007) - Granite Community Bank, N.A. (the "Company") (OTCBB: GCBK) today announced results for the nine months ended September 30, 2007. Net income for the nine months ended September 30, 2007, increased $197 thousand or 24% to $1.04 million, compared to net income of $838 thousand in the same period in 2006. Earnings per diluted share increased 17% to $0.74 in the nine months ended September 30, 2007, compared to $0.63 in the same period in 2006. Net income for the quarter ended September 30, 2007, decreased $27 thousand or 7% to $352 thousand, compared to net income of $379 thousand for the quarter ended September 30, 2006. Earnings per diluted share decreased 12% to $0.25 for the quarter ended September 30, 2007, compared to $0.29 for the quarter ended September 30, 2006.

Net interest income was $5.05 million and $1.72 million in the first nine months and the third quarter of 2007, respectively, compared to $4.58 million and $1.62 million for the same periods in 2006. The net interest margin for the first nine months and the third quarter of 2007 was 4.39% and 3.85%, respectively. This is a decrease of 6 basis points and 91 basis points compared to the same periods in 2006. Increases in market rates in 2007 have helped to increase the Company's yield on earning assets by 52 basis points for the first nine months of 2007, compared to 2006, and an increase of 33 basis points for the quarter ended September 30, 2007, compared to the same quarter in 2006. Offsetting the rise in earning asset yields were increases in the Company's cost of funds. The cost of funds increased 91 basis points to 3.40% in the first nine months of 2007, compared to 2.49% in 2006, and 125 basis points to 3.95% for the quarter ended September 30, 2007, compared to 2.70% in 2006.

Non-interest income increased $12 thousand or 3% in the first nine months of 2007, compared to the same period in 2006. For the quarter ended September 30, 2007, non-interest income decreased $63 thousand or 40% compared to the same period in 2006.

Non-interest expense increased $348 thousand or 11% in the first nine months of 2007, compared to the same period in 2006, and $36 thousand or 3% for the quarter ended September 30, 2007, compared to the same quarter in 2006.

At September 30, 2007, the Company's total assets were $158.7 million, an increase of $3.7 million or 2.4%, compared to September 30, 2006. Total loans and leases were $132.7 million at September 30, 2007, an increase of $ 19.4 million or 17%, compared to September 30, 2006. Total deposits were $130.4 million at September 30, 2007, a decrease of $0.2 million or 0.2%, compared to September 30, 2006.

In commenting about the third quarter results of Granite Community Bank, N.A., President and CEO David R. Kaiser said, "We continue to be pleased with our operating results through the third quarter of 2007. While the economic conditions in our Placer County, California market are adjusting to short term pressures, the long term economic outlook for our region remains vibrant. Our loan portfolio does not carry the type of loans which have contributed to the national sub-prime mortgage crisis and continues to perform well in these turbulent times. Granite Community Bank has built a strong balance sheet, established a strategic branch network, attracted the best bankers in the region, and nurtured a stable client base. The Bank is well positioned to take advantage of the opportunities which the current economic environment will present."

ABOUT GRANITE COMMUNITY BANK, N.A.

Granite Community Bank, N.A. was founded in June of 2002 and is headquartered in Granite Bay, California. A full service community bank serving Placer County, California, Granite Community Bank offers a full array of financial products and services through three offices located in Granite Bay, Roseville and Auburn California. The Bank also operates a mortgage loan production office in Paradise, Butte County, California.

This report contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in these statements. The forward-looking statements are made pursuant to the safe harbor provisions of Section 21D of the Securities Exchange Act of 1934, as amended. Those forward-looking statements are based on management's assumptions and projections, and are sometimes identifiable by the use of the words, 'expect to,' 'plan,' 'will,' 'believe' and words of similar predictive nature. Because management's assumptions and projections are based on anticipation of future events, you should not place undue emphasis on forward-looking statements, and you should recognize that those statements are effective only as of the date of this release. You should anticipate that our actual performance may vary from those projections, and variations may be material and adverse. You should not rely solely on forward-looking statements in evaluating an investment or prospective investment, and you should consider all uncertainties and risks typical of the banking industry. Risks that may cause our results to differ materially and adversely from management's expectations discussed here include: unanticipated additional expenses associated with opening additional facilities; higher than expected costs of regulatory compliance, the impact on reported financial results that may occur with the adoption of new accounting rules and tax regulations; the inability to grow earning assets or the inability to fund loan growth through traditional deposit gathering; as well as general economic conditions in our market area and broader economic changes regionally and nationally, and the effect of bank regulatory changes. Granite Community Bank, N.A. undertakes no obligation to update any forward-looking statements contained herein.


      (Dollar amounts in thousands, except share and per share data)
                                (Unaudited)

                     Three months ended             Nine months ended
                ----------------------------  ----------------------------
                        September 30,                 September 30,
                ----------------------------  ----------------------------
FOR THE PERIOD:   2007       2006     Change    2007       2006     Change
                ---------  ---------  ------  ---------  ---------  ------

Net interest
 income             1,719      1,620       6%     5,052      4,584      10%
Provision for
 loan and lease
 loss                 200         50     300%       290        375     -23%
Noninterest
 income                95        158     -40%       368        356       3%
Noninterest
 expense            1,122      1,086       3%     3,516      3,168      11%
Pretax income         492        642     -23%     1,614      1,397      16%
Provision for
 tax                  140        263     -47%       579        559       4%
Net income            352        379      -7%     1,035        838      24%
Net income per
 basic share         0.26       0.30               0.77       0.66
Net income per
 diluted share       0.25       0.29               0.74       0.63
Shares
 outstanding    1,355,550  1,276,000          1,355,550  1,276,000
Average         1,355,550  1,268,000          1,350,415  1,272,313
Fully diluted   1,403,478  1,329,500          1,407,483  1,329,750
SELECTED
 FINANCIAL
 RATIOS
(Annualized):
Return on
 average assets      0.91%      1.03%              0.90%      0.83%
Return on
 average equity      8.62%     10.30%              8.62%      7.78%
Average
 shareholder
 equity to
 average
 assets             10.51%      9.98%             10.41%     10.61%
Net interest
 margin              3.85%      4.76%              4.39%      4.45%

AT PERIOD END:

Loans and
 leases                                         132,666    113,794
Allowance for
 loan and lease
 loss                                             1,589      1,397
Total assets                                    158,700    155,059
Shareholder
 equity                                          16,492     14,839
Deposits                                        130,394    130,629
Total risk
 based capital
 ratio                                            11.73      12.18
Allowance for
 loan and lease
 loss to total
 loans                                             1.20       1.23

Contact Information

  • Contact:
    Granite Community Bank, N.A.
    David R. Kaiser
    916-788-8200
    Granitecb.com