Santa Paula Community Bank update
April 11, 2012
Santa Paula News
Ojai Community Bank reports that they are proud to update our shareholders and friends on another quarter of progress and a year of significant, positive activity.
Ojai Community Bank showed excellent improvement across all fronts. Capital is strong, liquidity stable, and loan quality is much improved. We look back at the year with a sense of accomplishment, financial improvement and a strong base for 2012 and beyond.
The Bank reported record fourth quarter 2011 earnings of $245,000 and year-end net income of $546,000. This is compared to fourth quarter 2010 earnings of $1,000 and 2010 year-end net loss of $289,000. The largest contributor to our success is hard work and the improvement in the quality of our loan portfolio and the related benefit of a lower provision for loan loss reserves.
Our regulatory position improved significantly in 2011. We were able to eliminate an FDIC Consent Order imposed on March 31, 2011, in just 176 days. This was accomplished through diligent work to improve the Bank. This may appear ordinary to the average observer, but in fact it is quite remarkable and shows significant support, trust and confidence in the Bank and its management.
We also completed a private placement of common stock to accredited investors. The offering raised $1.5 million, bringing our capital ratio to 10%, which exceeds the FDIC requirement.
Major improvements in the 2011 year-end loan portfolio are exemplified by a reduction of substandard loans by 54% to $4.5 million. Non-accrual status loans were reduced by 60% to $2.3 million. Trends in this area continue to be very positive. Improvements in credit quality will significantly contribute toward creating better earnings and improved shareholder returns. Our annual report with full audited financials will be available on our website in the next 30 days.
We are always here to answer any questions. Contact Don Tello, President Santa Paula Community Bank at 948 E. Main Street, Santa Paula, CA 93060 or Dave Brubaker, President/CEO Ojai Community Bank, at the office located at 402 W. Ojai Ave., Ojai CA 93023, dbrubaker@ojaicommunitybank.com or 805-646-9909 or dtello@banksantapaula.com or (805) 525-5817.
