SOURCE: Community Bank of Orange, N.A.

November 26, 2007 09:46 ET

Community Bank of Orange, N.A. Announces Third Quarter 2007 Earnings

MIDDLETOWN, NY--(Marketwire - November 26, 2007) - Community Bank of Orange, N.A. (PINKSHEETS: CBOG) today reported the Bank sustained a net loss of $12,000 in the quarter ended September 30, 2007, as compared with a net loss of $235,000 in the quarter ended September 30, 2006, an improvement of $223,000, or 95%. The net loss per share for the third quarter of 2007 was $0.01 per share, compared to $0.11 per share for the third quarter of 2006, an improvement of $0.10 per share. The improvement was substantially attributable to an increase in interest income of $116,000, and a decrease in non-interest expenses and the provision for loan losses of $145,000 and $29,000 respectively. These factors were offset by a decrease of $10,000 in non-interest income and an increase in interest expense paid on deposits and borrowings of $57,000.

The Bank increased the combined amount of its loan and investment portfolios by $7.7 million, or 16%, from December 31, 2006. The major portion of the growth took place in the loan portfolio, which grew $7.1 million, or 20%, from year-end 2006. The increase in the loan portfolio is the result of the Bank's plan to shift earning assets from some lower yielding investments into the higher yielding loan portfolio. The Bank had $63.2 million in total assets at the quarter's end, an increase of $3.6 million, or 6% from $59.6 million at December 31, 2006. Earning assets totaled $61.5 million at September 30, 2007, compared to $57.1 million at December 31, 2006. Earning assets at September 30, 2007 consisted of $42.7 million in loans receivable, net of deferred fees, $14.3 million in investment securities, which included $0.3 million in restricted investments in bank stocks, $3.7 million in federal funds sold and $0.8 million in interest bearing time deposits.

At September 30, 2007, we had $26.5 million in commercial mortgage loans, which is one of our highest yielding categories of loans. This balance reflects an increase of $6.7 million from December 31, 2006. The Bank had $12.5 million in commercial business loans, a moderate increase from December 31, 2006, when we had $11.8 million in commercial business loans. Loans secured by residential properties (both 1-4 family and multifamily properties) totaled $0.6 million at September 30, 2007, unchanged from December 31, 2006. Home equity loans decreased by $0.1 million to $3.0 million for the same period. At September 30, 2007, we had $0.1 million in consumer loans, down from December 31, 2006, when the balance was $0.3 million.

At September 30, 2007, the Bank had $50.6 million in deposits, a decrease of $1.2 million or 2% from December 31, 2006. Our deposits consisted of $5.6 million in savings accounts, $1.9 million in NOW accounts, $18.0 million in money market accounts, $4.2 million in non-interest demand accounts, and $20.9 million in time deposits.

At September 30, 2007, we had $7.0 million in shareholders' equity, a decrease of $0.2 million from December 31, 2006. This decrease in shareholder's equity was the result of the operating loss of $291,000 for the nine months ended September 30, 2007 offset by a decrease in accumulated other comprehensive loss of $88,000.

Commenting on the third quarter results, Anthony Ingrassia, the Bank's Chairman and Chief Executive Officer, remarked, "We are proud to report that the Bank recorded its first profitable month in the third quarter of this year. In addition to reporting our best quarterly results since inception, the Bank recorded a profit of $6,000 in the month of September. We recognize that the current competitive environment will make the Bank work hard to sustain this improvement, but we remain confident that we can control operating expenses, while improving our earnings through prudent lending and investment practices and practical growth in our deposits. The Bank continues to offer competitive rates on both loans and deposits and to provide customized, personal service to the community. Our current variety of deposit products, including our 'Signature Savings Plus' account, offers an excellent opportunity to earn a high yield and enjoy the safety of an FDIC insured account." Mr. Ingrassia further stated, "The Bank provides a full array of loan and investment products for both individuals and businesses in the Orange County and surrounding areas, so please stop by at our Middletown or Warwick location today."

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

  • CONTACT:
    Anthony Ingrassia
    Chairman of the Board and CEO
    PHONE: (845) 695-7400