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| 8/18/05 |
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Community Bank of Orange, N.A. (CBOG.PK) today reported a net loss of $(193,007), or $(0.09) per share for the three month period ending June 30, 2005. By comparison, the Bank’s net loss for the second quarter of fiscal 2004 was $(359,813), or $(0.17) per share, adjusted for the 2,175,961 shares outstanding on June 30, 2005. Period over period, these results represent improvements of $166,806 and $.08 per share as so adjusted, respectively. |
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CONTACT: Ron Gentile, President and CEO
845-695-7400
Middletown, New York - The Bank increased the amount of its loan portfolio, securities portfolio and federal funds sold between year-end 2004 and the end of the second quarter of fiscal 2005. This increase in earning assets is the result of the investment of additional capital raised in the Bank’s private placement of common stock, coupled with an increase in deposit account balances. The Bank had $36.1 million in total assets at the quarter’s end, an increase of $11.7 million, or 48.0%, from $24.4 million at December 31, 2004, and $33.7 million in earning assets at June 30, 2005, compared to $22.2 million at December 31, 2004. Earning assets at June 30, 2005 consisted of $16.0 million in net loans, $13.6 million in investment securities, and $4.2 million in federal funds sold. At June 30, 2005, we had $7.0 million in commercial mortgage loans and $3.9 million in commercial business loans, which are our highest yielding categories of loans. These balances reflect increases of $2.0 million and $0.9 million, respectively, from December 31, 2004. Loans secured by residential properties totaled $1.0 million at June 30, 2005, decreasing $0.1 million from December 31, 2004. Home equity loans increased by $0.2 million to $2.8 million for the same period. At June 30, 2005, we had $896,000 in consumer loans, an increase of $435,000 from December 31, 2004.
At June 30, 2005, the Bank had $27.0 million in deposits, an increase of $5.3 million or 24.7% from $21.7 million at December 31, 2004. Our deposits at June 30, 2005 consisted of $1.8 million in savings accounts, $2.3 million in NOW accounts, $10.6 million in money market accounts, $5.1 million in non-interest demand accounts, and $7.2 million in time deposits, compared with $2.1 million, $2.2 million, $5.0 million, $4.8 million and $7.6 million, respectively. The largest growth was in money market accounts, which increased $5.6 million or 112.0%. The growth in money market accounts is due primarily to the introduction of a new high yielding Platinum Plus Money Market account introduced during the first quarter of 2005.
At June 30, 2005, we had $8.9 million in shareholders' equity, an increase of $6.3 million from December 31, 2004. This increase in shareholder’s equity was the result of the sale of 1,400,000 shares of common stock completed on March 1, 2005, which netted $6.75 million of additional capital. This was partially offset by the operating loss of $424,000 for the six months ended June 30, 2005 and the change in accumulated other comprehensive loss.
Commenting on the second quarter results, Ronald J. Gentile, the Bank’s President and Chief Executive Officer, remarked, “While encouraged by the further improvement in the bottom line, we need more critical mass in order to achieve profitability. However, I am very pleased to report that our commercial loan pipeline was $5.4 million, or approximately one third of our total loan portfolio, at quarter end.”
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 Office of the Comptroller of the Currency charters the Bank and the Federal Deposit Insurance Corporation insures its deposits. |
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