SOURCE: Bank On It, Inc.

November 20, 2007 09:00 ET

Bank On It, Inc. Reports Third Quarter Earnings

STOCKTON, CA--(Marketwire - November 20, 2007) - Bank On It, Inc. (OTCBB: BKOT), parent company of Community Bank of San Joaquin, reported earnings of $865,000, or $0.64 per share for the first nine months of 2007, compared to $987,000 or $0.74 per share for the same period in 2006. Net interest income after provisions for loan losses declined slightly during the period, as higher balances of loans and deposits were offset by lower net interest margins and increased reserves for possible future credit losses. Non-interest income was 12 percent lower during the period, although non-interest income during the current quarter rose $41,000 as compared to the third quarter of 2006. Total operating expenses increased only slightly during the first nine months of the year despite the opening of a second branch in January.

Total assets increased $22.2 million to $145.3 million as of September 30, 2007, compared to $123.1 million as of September 30, 2006, representing an 18 percent increase. Total loans increased $25.1 million to $99.2 million as of September 30, 2007, compared to $74.1 million as of September 30, 2006, representing a 34 percent increase. Total deposits increased $7.5 million to $110.5 million as of September 30, 2007, compared to $103.1 million as of September 30, 2006, an increase of 7.3 percent.

About Community Bank of San Joaquin

Community Bank of San Joaquin, with headquarters at 22 West Yokuts Avenue, Stockton, California, 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 of San Joaquin 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, Chief Executive Officer, 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.

Web site: www.cbsjbank.com

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

CONDENSED BALANCE SHEET                                   DOLLAR PERCENT
                                  9/30/2007  9/30/2006    CHANGE  CHANGE
ASSETS
  Cash and due from banks           $5,123     $5,731      $(608)   -11%
  Federal funds sold & money market
   investments                         560     14,440    (13,880)   -96%
  Investments                       37,746     26,527     11,219     42%
  Loans, net of reserves            99,181     74,111     25,070     34%
  Bank premises and equipment, net     871        503        368     73%
  Other assets                       1,814      1,811          3      0%
  TOTAL ASSETS                    $145,295   $123,124    $22,172     18%


LIABILITIES
  Deposits
    Demand deposits                $16,755    $17,288      $(532)    -3%
    Interest bearing                93,791     85,779      8,012      9%
    Total deposits                 110,546    103,067      7,479      7%
  Trust Preferred Debt               4,124      4,124          0      0%
  Other Borrowings                  13,250          0     13,250     NA
  Other liabilities                  1,105      1,211       -106     -9%
  TOTAL LIABILITIES                129,025    108,402     20,622     19%

SHAREHOLDERS' EQUITY
  Common stock; issued and outstanding,
   1,344,918 in 2007 and 1,336,098
   in 2006                          14,640     13,095      1,547     12%
  Retained earnings                  1,682      1,798       -116     -6%
  Accumulated other comprehensive
   loss, net of tax                    (52)      (171)       119    -69%
  TOTAL SHAREHOLDERS' EQUITY        16,270     14,722      1,549     11%

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY              $145,295   $123,124    $22,172     18%




                               Results of Operations
                                 Nine Months Ending
CONDENSED STATEMENT OF INCOME   9/30/2007   9/30/2006    % CHANGE
  Interest income                 $6,943      $6,044        15%
  Interest expense                 2,663       1,724        54%
  Net interest income              4,281       4,320        -1%
  Provision for loan losses          165         121        37%
  Net interest income after
   provision for loan losses       4,116       4,200        -2%

  Noninterest income                 448         510       -12%
  Noninterest expense              3,198       3,124         2%
  Income before taxes              1,366       1,585       -14%
  Income tax expense                 501         598       -16%
NET INCOME                          $865        $987       -12%

Earnings per share*: basic         $0.64       $0.74
Earnings per share*: fully diluted  0.62        0.70
Return on average assets            0.90%       1.11%
Return on average equity            7.36%       9.41%

  *Per share amounts adjusted for 5% stock dividend issued
   in December 2006.

Contact Information

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