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| 4/27/06 |
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Community Bank of Orange, N.A. Announces First Quarter 2006 Earnings |
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CONTACT: Ronald J. Gentile, President, CEO
Community Bank of Orange, N.A.
PHONE: 845-695-7400
MIDDLETOWN, NY -- (MARKET WIRE) -- 04/27/2006 -- Community Bank of Orange, N.A. (OTC: CBOG) today reported a net loss of $(128,772), or $(0.06) per share for the three month period ending March 31, 2006. By comparison, the Bank's net loss for the first quarter of fiscal 2005 was $(231,340), or $(0.18) per share. These results represent improvements of $102,568 and $0.12 per share, respectively. The improvement in the per share data reflects both a decrease in the net loss and the effect of the issuance of 1,400,000 shares of the Bank's common stock completed on March 1, 2005.
The Bank increased its loan portfolio, securities portfolio and federal funds sold balances between year-end 2005 and the end of the first quarter of fiscal 2006. The Bank had $46.2 million in total assets at the quarter's end, an increase of $1.3 million, or 2.9% from $44.9 million at December 31, 2005 and $43.8 million in earning assets at March 31, 2006, compared to $42.6 million at December 31, 2005. Earning assets at March 31, 2006 consisted of $25.3 million in net loans, $13.2 million in investment securities, and $5.3 million in federal funds sold. At March 31, 2006, the Bank had $12.2 million in commercial mortgage loans and $9.8 million in commercial business loans, which are the highest yielding categories of loans. These balances reflect increases of $2.1 million and $0.7 million, respectively, from December 31, 2005. Loans secured by residential properties totaled $0.6 million at March 31, 2006, unchanged from December 31, 2005. Home equity loans increased by $0.3 million to $2.8 million for the same period. At March 31, 2006, we had $264,000 in consumer loans, a decrease of $24,000 from December 31, 2005.
At March 31, 2006, the Bank had four non-performing loans totaling $396,154 (1.53% of Total Loans), of which two of those loans, aggregating $319,845, are fully secured by real estate. The Allowance for Loan and Lease Losses totaled $491,000 at March 31, 2006 and represented 1.90% of Total Loans. During the first quarter of 2006 the Bank recorded net recoveries of previously charged-off loans equaling $1,548. The Allowance for Loan and Lease Losses at March 31, 2006 was 124% of non-performing loans.
The Bank had $38.2 million in deposits at March 31, 2006, an increase of $1.9 million or 5.2% from December 31, 2005. Deposits consisted of $3.6 million in savings accounts, $2.2 million in NOW accounts, $11.4 million in money market accounts, $4.7 million in non-interest demand accounts, and $16.3 million in time deposits. At March 31, 2006, the Bank had $7.8 million in shareholders' equity.
Commenting on the first quarter results, Ronald J. Gentile, the Bank's President and Chief Executive Officer, remarked, "While we are encouraged by the near 45% improvement in our first quarter's results, the protracted, flat yield curve has obviously lengthened the time period we will need to become profitable." Mr. Gentile further stated that, "The new Warwick office (late May 2006 anticipated opening) will increase operating expenses in the near term, but is a big step towards achieving long term positive results, in keeping with our strategic plan. I am also pleased to report that our commercial loan pipeline remains robust, at nearly $13 million, as of March 31, 2006."
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.
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