SOURCE: Granite Community Bank, N.A.

February 12, 2007 19:00 ET

Granite Community Bank Announces Fourth Quarter Results

GRANITE BAY, CA -- (MARKET WIRE) -- February 12, 2007 -- Granite Community Bank, N.A. (the "Company") (OTCBB: GCBK) today announced results for the quarter ended December 31, 2006. Net income for the three months ended December 31, 2006 increased $158 thousand, or 59%, to $425 thousand, compared to net income of $267 thousand in the fourth quarter of 2005. Earnings per diluted share increased 60% to $0.32 in the fourth quarter of 2006, compared to $0.20 in the fourth quarter of 2005. Net income for the year ended December 31, 2006 increased $491 thousand, or 64%, to $1,263 thousand, compared to net income of $772 thousand for the year ended December 31, 2005. Earnings per diluted share increased 61% to $0.95 for the year ended December 31, 2006, compared to $0.59 for the year ended December 31, 2005.

Net interest income was $1.78 million and $6.36 million in the fourth quarter and the year of 2006, respectively, compared to $1.40 million and $4.83 million for the same periods in 2005. The net interest margin for the fourth quarter and the year of 2006 was 4.73% and 4.76%, respectively. This is a decrease of 52 basis points and 25 basis points compared to the same periods in 2005. Increases in market rates in 2006 have helped to increase the Company's yield on earning assets by 55 basis points in the fourth quarter of 2006 compared to 2005 and, an increase of 90 basis points for the year ended December 31, 2006 compared to the same period in 2005. Partially offsetting the rise in earning asset yields were increases in the Company's cost of funds. The cost of funds rose 135 basis points to 3.90% in the fourth quarter of 2006 compared to 2.55% in 2005 and 135 basis points to 3.58% for the year ended December 31, 2006 compared to 2.23% in 2005.

Non-interest income increased $63 thousand and 100% in the fourth quarter of 2006, compared to the fourth quarter of 2005. For the year ended December 31, 2006, non-interest income increased $131 thousand, or 37%, compared to the same period in 2005.

Non-interest expense increased $397 thousand, or 48%, in the fourth quarter of 2006, compared to the fourth quarter of 2005 and $972 thousand, or 28%, for the year ended December 31, 2006 compared to the year ended December 31, 2005. The increase in non-interest expense in 2006 compared to 2005 was primarily the result of opening a de novo branch in Roseville, CA.

At December 31, 2006, the Company's total assets were $151.2 million, an increase of $33.1 million, or 28%, compared to December 31, 2005. Total loans and leases were $124.5 million at December 31, 2006, an increase of $31.9 million, or 35%, compared to December 31, 2005. Total deposits were $126.9 million at December 31, 2006, an increase of $23.3 million, or 22%, compared to December 31, 2005.

"We are pleased with the results of our fourth full year of operation," reported David Kaiser, President and CEO. "Our financial results for 2006 reflect our continued commitment to being the premier community bank serving the fast growing South Placer County region of Northern California. The investment we have made provides the Bank with a strong platform for growth, allows us to fully serve our market, and provides the opportunity for reaching out to additional markets within the region. We look forward to 2007 and will continue to focus on building mutually beneficial relationships with our clients, serving the community, and simultaneously building value for our Shareholders."

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

                     Three months ended                Year ended
                ----------------------------  ----------------------------
                        December 31,                  December 31,
                ----------------------------  ----------------------------
FOR THE PERIOD:   2006       2005     Change    2006       2005     Change
                ---------  ---------  ------  ---------  ---------  ------

Net interest
 income             1,779      1,402      27%      6363       4825      32%
Provision for
 loan and lease
 loss                  65        171     -62%       440        431       2%
Noninterest
 income               126         63     100%       482        351      37%
Noninterest
 expense            1,230        833      48%      4398       3426      28%
Pretax income         610        461      32%      2007       1319      52%
Provision for
 tax                  185        194      -5%       744        547      36%
Net income            425        267      59%      1263        772      64%
Net income per
 basic share         0.33       0.21               1.00       0.61
Net income per
 diluted share.      0.32       0.20               0.95       0.59
Shares
 outstanding    1,276,000  1,268,000          1,276,000  1,268,000
Average         1,276,000  1,265,600          1,268,167  1,256,778
Fully diluted   1,341,560  1,320,788          1,336,366  1,311,966
SELECTED
 FINANCIAL
 RATIOS
(Annualized):
Return on
 average assets      1.04%      0.73%              0.90%      0.76%
Return on
 average equity     10.61%      5.88%              8.62%      5.77%
Average
 shareholder
 equity to
 average assets      9.85%     12.36%             10.40%     13.20%
Net interest
 margin              4.73%      5.25%              4.76%      5.01%

AT PERIOD END:

Loans and
 leases                                         124,519     92,568
Allowance for
 loan and lease
 loss                                             1,459      1,022
Total assets                                    151,197    118,074
Shareholder
 equity                                          15,268     13,862
Deposits                                        126,900    103,632
Total risk
 based capital
 ratio                                            11.74      14.64
Allowance for
 loan and lease
 loss to total
 loans                                             1.17       1.10

Contact Information

  • Contact:

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