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| 11/20/06 |
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Community Bank of Orange, N.A. Announces
THIRD Quarter 2006 Earnings |
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CONTACT: Ronald J. Gentile, President and CEO
Community Bank of Orange, N.A.
PHONE: 845-695-7400
(Middletown, NY) – Community Bank of Orange, N.A. (CBOG.PK) today reported a net loss of $(235,000), or $(0.10) per share for the three month period ending September 30, 2006. By comparison, the Bank’s net loss for the third quarter of fiscal 2005 was $(303,000), or $(0.14) per share. These results represent improvements of $68,000 and $0.04 per share, respectively.
The Bank increased the combined amount of its loan, investment, interest bearing time deposit, and federal funds sold portfolios by $14.0 million, or 33.2%, from December 31, 2005. The major portion of the growth took place in the loan portfolio, which grew $10.9 million, or 49.0%, from year-end 2005. The Bank had $59.8 million in total assets at the quarter’s end, an increase of $14.8 million, or 33.0% from $44.9 million at December 31, 2005. Earning assets totaled $56.6 million at September 30, 2006, compared to $42.6 million at December 31, 2005. Earning assets at September 30, 2006 consisted of $33.0 million in loans receivable, net of deferred fees, $15.0 million in investment securities, $1.2 million in interest bearing time deposits and investments in restricted bank stocks, and $7.4 million in federal funds sold.
At September 30, 2006, we had $16.2 million in commercial mortgage loans and $11.8 million in commercial business loans, which are our two highest yielding categories of loans. These balances reflect increases of $7.6 million and $2.7 million respectively from December 31, 2005. Loans secured by 1 – 4 family and other residential properties totaled $2.1 million at September 30, 2006, unchanged from December 31, 2005. Home equity loans increased by $0.6 million to $3.1 million for the same period. At September 30, 2006, we had $0.3 million in consumer loans, unchanged from December 31, 2005.
At September 30, 2006, the Bank had $51.0 million in deposits, an increase of $14.7 million or 40.6% from December 31, 2005. Our deposits consisted of $2.8 million in savings accounts, $2.5 million in NOW accounts, $29.1 million in money market accounts, $4.4 million in non-interest demand accounts, and $12.2 million in time deposits.
Commenting on the third quarter results, Ron Gentile, the Bank’s President and Chief Executive Officer, remarked “As compared to the second quarter of 2006, when our net loss was $99 thousand, it would initially appear that operating losses widened significantly. However, a closer review of our results shows that our operating expenses associated with the Warwick branch opening (effective May 30, 2006) were $43 thousand greater than those incurred in the second quarter of this year, and our provision for loan losses expense was $54 thousand greater than the prior quarter’s allocation expense (due in a large part to the charge off of a $66 thousand loan originated by prior operating management). After taking these amounts into consideration, our third quarter net loss would have been $138 thousand. Higher advertising and marketing costs coupled with the interest expenses associated with a promotional deposit (5.0% APY Money Market Account) to stimulate activity at our new branch also impacted operations in the third quarter.” Mr. Gentile further stated that “The new Warwick office has exceeded expectations, having generated $7.2 million in deposits, after only five and one half months of operation. Also, asset quality remains strong with total non-performing loans (those 90 days or more delinquent or on non-accrual), aggregating only $127 thousand, or 0.38% of total loans. And, our commercial loan pipeline remains relatively high at $8.5 million.”
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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