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Tuesday, Aug 9, 2022
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Strong Economy Helping Boost Banks’ Performance

Spurred by low-interest loans and a robust economy, three locally based banks posted strong results in their recently released second quarter earnings statements. Camarillo-based First California Bank was one of the beneficiaries of these trends, reporting second quarter earnings of $629 million, an increase of 7 percent from a year ago. Loans leaped up 16 percent to end the second quarter at $199.6 million, up from $171.5 million at the end of the same period last year, and deposits grew 10 percent from a year ago, reaching $238.5 million at the close of the second quarter. Total assets as of June 30, 2005, stood at $298.3 million compared with $275.7 million at that time in 200. “This was an exciting quarter,” C.G. Kum, First California president and chief executive officer said in a prepared statement. “We kept our focus on our business strategy and produced terrific results. Construction of our permanent facility in Simi Valley is progressing and we are moving forward with our acquisition of South Coast Bancorp. We expect that we will conclude our acquisition in the third quarter.” First California also claimed $629,000 in net income or $0.29 per diluted share, an increase on the $598,000 in net income or $0.28 per diluted share that the company registered during the same period in 2004. Calabasas-based Beverly Hills Bancorp Inc. also benefited from the benevolent financial climate, earning $3.3 million, or $0.15 per diluted share in the second quarter, compared with net income of $2.7 million, or $0.12 per diluted share, for the quarter ended June 30, 2004. Like many banking institutions, Beverly Hills Bancorp reported a sizable gain in loans this past quarter, lending $973.6 million in the second quarter of 2005, versus $826.3 million in the second quarter of 2004. Beverly Hills Bancorp also reported a sizable increase in its total assets, as it currently controls $1.44 billion in assets as of June 30, 2005, compared to $1.23 billion for the same period in 2004. However, while assets increased markedly, Beverly Hills Bancorp showed a loss in deposits, as the number of deposits in the most recent quarter was $593.6 million, contrasted with $636.2 million in the second quarter of 2004. Though the company remained in the red, the Bank of Santa Clarita reported strong growth in terms of its assets and the number of deposits. In the second quarter of 2005, the nine-month old bank grew its assets to $39.1 million, up from $22.3 million at year-end, an increase of approximately 75 percent. Currently, the bank has more than $26.6 million in deposits, up from $9.3 million over the same period with strong growth in its core customer base. Loans also grew from $6.4 million at year-end to $24.3 million at the end of this quarter. The bank reported that quarterly revenue was over $377,000 in the second quarter of this year, an increase of 70 percent from the $222,000 of revenue it registered in the first quarter of 2005. This increase in revenue allowed the bank to cut its losses to $457,000 this past quarter, versus $539,000 for the first quarter of 2005. “The bank made some impressive gains during the second quarter,” Bank of Santa Clarita President and CEO, James D. Hicken said in a prepared statement. “I credit our terrific group of banking professionals who provide the best banking products and service levels while operating in this very competitive environment. As we look to expand in the Santa Clarita Valley, we expect that interest in our bank and the services we provide will continue to grow in the local community.”

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