SOURCE: Bank On It, Inc.

May 04, 2006 08:00 ET

Bank On It, Inc., Reports First Quarter Earnings

STOCKTON, CA -- (MARKET WIRE) -- May 4, 2006 -- Bank On It, Inc. (OTC BB: BKOT), parent company of Community Bank of San Joaquin, reported net income for the first quarter of 2006 of $308,000 or $.24 per share compared to earnings of $305,000 or $.25 per share reported for the same timeframe in 2005.

Net loans receivable totaled $71.3 million as of March 31, 2006 compared to $80.2 million a year earlier, representing a decline of 11%. The decline in loans outstanding is temporary and the result of increased commercial real estate loan payoffs and a restructure of lending operations.

Total deposits at March 31, 2006 were $108.5 million, an increase of 4% over the prior year balance of $104.0 million. Growth was driven by an increase in demand deposits of 24%.

Total assets reached $123.6 million as of March 31, 2006, compared to $117.3 million a year earlier.

Net interest income increased by $150,000 or 12% between the two periods benefiting from an increase in short term interest rates.

For the first quarter of 2006, annualized return on average assets was 1.04% compared to 1.06% for the first quarter of 2005. Annualized return on average equity totaled 9.07% for the quarter ending March 31, 2006 compared to 10.25% for the similar quarter in 2005.

"The results for the first quarter were on target with our projections and represent the 17th consecutive quarter of profitability. We have a strong lending team in place and remain optimistic about the future. We are executing our strategic plan, which includes expansion into new markets, offering new services and increasing the opportunities available in technology," stated Jane Butterfield, President/CEO.

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
                                    3/31/2006  3/31/2005    CHANGE   CHANGE
ASSETS
  Cash and due from banks           $   4,621  $   3,670  $     951     26%
  Federal funds sold & money market
   investments                         20,655      2,705     17,950    664%
  Other investments                    25,346     29,218     (3,872)   -13%
  Loans, net of reserves               71,321     80,229     (8,908)   -11%
  Bank premises and equipment, net        524        497         27      5%
  Other assets                          1,160      1,022        138     14%
  TOTAL ASSETS                      $ 123,627  $ 117,341  $   6,286      5%


LIABILITIES
  Deposits
    Demand deposits                 $  22,774  $  18,405  $   4,369     24%
    Interest bearing                   85,751     85,629        122      0%
    Total deposits                    108,525    104,034      4,491      4%
  Other liabilities                     1,246      1,312        (66)    -5%
  TOTAL LIABILITIES                   109,771    105,346      4,425      4%

SHAREHOLDERS' EQUITY
  Common stock; issued and outstanding,
   1,272,591 in 2006 and 1,148,800
   in 2005                             13,002     11,308      1,694     15%
  Retained earnings                     1,119        853        266     31%
  Accumulated other comprehensive loss,
   net of tax                            (265)      (166)       (99)    60%
  TOTAL SHAREHOLDERS' EQUITY           13,856     11,995      1,861     16%

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                $ 123,627  $ 117,341  $   6,286      5%


                                          Results of Operations
                                           Three Months Ending
CONDENSED STATEMENT OF INCOME             3/31/2006   3/31/2005  % CHANGE
  Interest income                          $ 1,888     $ 1,546      22%
  Interest expense                             457         265      72%
  Net interest income                        1,431       1,281      12%
  Provision for loan losses                     45          50     -10%
  Net interest income after provision
   for loan losses                           1,386       1,231      13%

  Noninterest income                           149         133      12%
  Noninterest expense                        1,038         864      20%
  Income before taxes                          497         500      -1%
  Income tax expense                           189         195      -3%
NET INCOME                                 $   308     $   305       1%


Earnings per share*: basic                 $  0.24     $  0.25
Earnings per share*: fully diluted            0.23        0.24
Return on average assets                      1.04%       1.06%
Return on average equity                      9.07%      10.25%

  * Per share amounts adjusted for 5% stock dividend issued in
    December 2005.

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