SOURCE: Bank On It, Inc.

August 13, 2007 09:00 ET

Bank On It, Inc. Reports Second Quarter Earnings

STOCKTON, CA--(Marketwire - August 13, 2007) - Bank On It, Inc. (OTCBB: BKOT), parent company of Community Bank of San Joaquin, reported earnings of $632,000, or $0.47 per share for the first six months of 2007, compared to $671,000 or $0.50 per share for the same period in 2006. Net interest income remained relatively flat during the period, while non-interest income declined, primarily due to reduced revenue from trust operations. Non-interest income was also negatively impacted by a $43,000 charge to loan servicing assets. Total operating expenses were flat as compared to the first half of 2006.

Total loans increased $19.2 million to $94.0 million as of June 30, 2007, compared to $74.8 million as of June 30, 2006, representing a 26 percent increase. Total deposits increased $6.7 million to $106.4 million as of June 30, 2007, compared to $99.7 million as of June 30, 2006.

About Community Bank of San Joaquin

Community Bank of San Joaquin, whose headquarters is at 22 West Yokuts Avenue, Stockton opened in 1999. Its second branch serves the East Stockton area and is located at 4426 East Waterloo Road. Locally owned and locally managed, Community Bank is truly a "full service bank" which specializes 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
                               6/30/2007     6/30/2006    CHANGE     CHANGE
ASSETS
  Cash and due from banks        $5,721        $5,059       $662        13%
  Federal funds sold & money
   market investments             3,900        13,280     (9,380)      -71%
  Investments                    23,752        23,542        210         1%
  Loans, net of reserves         94,005        74,764     19,241        26%
  Bank premises and equipment,
   net                              891           540        351        65%
  Other assets                    1,783         1,596        187        12%
  TOTAL ASSETS                 $130,052      $118,781    $11,271         9%


LIABILITIES
  Deposits
    Demand deposits             $16,567       $15,722       $845         5%
    Interest bearing             89,814        84,009      5,805         7%
    Total deposits              106,381        99,731      6,650         7%
  Trust Preferred Debt            4,124         4,124          0         0%
  Other liabilities               3,586           733      2,853       389%
  TOTAL LIABILITIES             114,091       104,588      9,503         9%

SHAREHOLDERS' EQUITY
  Common stock; issued and
   outstanding, 1,344,918 in
   2007 and 1,336,098 in 2006    14,625        13,002      1,623        12%
  Retained earnings               1,450         1,481        (31)       -2%
  Accumulated other
   comprehensive loss,
   net of tax                      (114)         (290)       176       -61%
  TOTAL SHAREHOLDERS' EQUITY     15,961        14,193      1,768        12%

TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY          $130,052      $118,781    $11,271         9%


                                         Results of Operations
                                           Six Months Ending
CONDENSED STATEMENT OF INCOME          6/30/2007      6/30/2006    % CHANGE
  Interest income                        $4,599          $3,882         18%
  Interest expense                        1,744           1,024         70%
  Net interest income                     2,855           2,858          0%
  Provision for loan losses                  60              96        -38%
  Net interest income after provision
   for loan losses                        2,795           2,762          1%

  Noninterest income                        284             388        -27%
  Noninterest expense                     2,070           2,067          0%
  Income before taxes                     1,009           1,083         -7%
  Income tax expense                        377             412         -8%
NET INCOME                               $  632          $  671         -6%

Earnings per share*: basic               $ 0.47          $ 0.50
Earnings per share*: fully diluted         0.45            0.48
Return on average assets                   0.99%           1.13%
Return on average equity                   8.16%           9.72%

  * 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