January 21, 2003
FOR IMMEDIATE RELEASE Contact: John I. Jelavich, President/CEO
(530) 674-6025
California Independent Bancorp Announces Record Fourth Quarter
and Record Year Results
Yuba City, California . . . California Independent Bancorp (NASDAQ: CIBN) and
its subsidiary, Feather River State Bank, today reported record financial
results for the year ended December 31, 2002. Net income was $3,761,000,
signifying the highest earnings in the history of the Company, and a 166.9%
increase over the $1,409,000 net income reported for the year ended December 31,
2001. Diluted earnings per share from continuing operations for 2002 was $1.65,
a 175.0% increase over diluted earnings per share from continuing operations of
$0.60 reported in 2001.
Total assets at December 31, 2002 were $366.6 million, an increase of $60.4
million, or 19.7%, from total assets at December 31, 2001 of $306.2 million.
Loans and deposits grew considerably in 2002. Total loans grew $22.1 million
from $192.3 million at December 31, 2001 to $214.4 million at December 31, 2002.
Total deposits grew $31.1 million from $275.6 million at December 31, 2001 to
$306.7 million at December 31, 2002.
John Jelavich, President and CEO commented, "It has been an excellent year. We
are proud of our accomplishments and we have paved the road ahead for continued
success. Our momentum has increased steadily, particularly in the final six
months as we earned $2,203,000 during that period. We believe the accelerated
performance was accomplished by the creation of a teamwork approach as staff
productivity increased measurably. For the year, return on beginning equity was
13.82%, return on average assets was 1.14%, loan growth was 11.52%, and total
deposit growth was 11.30%, which significantly exceeded 2001 results as well as
our business plan for 2002. We thank our stockholders, customers, and our
dedicated employees for their continued support."
The Company finished the year strong reporting its best quarter ever with net
income of $1,222,000. Diluted earnings per share from continuing operations were
$0.53 for the fourth quarter. The Company reported a net loss of $669,000, and
diluted loss per share from continuing operations of $0.30 for the fourth
quarter of 2001. Jelavich added, "We were confronted with significant challenges
to asset quality at the end of 2001 and we addressed these challenges in 2002.
Our commitment to asset quality will not diminish in 2003."
Feather River State Bank has nine branches in Yuba City, Arbuckle, Colusa,
Marysville, Wheatland, Woodland, Lincoln, and Roseville, California serving
Sutter, Yuba, Colusa, Yolo, and Placer counties.
Forward-looking statements - The Private Securities Litigation Reform Act of
1995:
Certain statements contained in this release are forward-looking statements that
are subject to risk and uncertainty. Statements that are not historical or
current facts, including statements about beliefs and expectations, are
forward-looking statements. A number of factors -- many of which are beyond
California Independent Bancorp's ("Company") control -- could cause actual
conditions, events or results to differ significantly from those described in
the forward-looking statements. Forward-looking statements include, but are not
limited to, that the Company will continue to recognize success in the future.
The Company's reports filed with the Securities and Exchange Commission,
including the Company's Form 10-K for the year ended December 31, 2001, and Form
10-Q for the quarter ended September 30, 2002, describe some of these factors,
including certain credit, market, operational, liquidity, and interest rate
risks associated with the Company's business and operations. Other factors
described in the Company's Form 10-K for the year ended December 31, 2001, and
Form 10-Q for the quarter ended September 30, 2002, include changes in business
and economic conditions, competition, fiscal and monetary policies, and
legislation. There are other factors besides these that could cause actual
conditions, events or results to differ significantly from those described in
the forward-looking statements or otherwise affect in the future the Company's
business, results of operations and financial condition. Forward-looking
statements speak only as of the date they are made, and the Company undertakes
no obligation to update such statements in light of new information or future
events.
California Independent Bancorp and Subsidiaries
Selected Financial Data
Unaudited
Fourth Quarter 2002 Earnings Release
(Dollars in thousands except per share data)
Consolidated Statement of Financial Condition Data:
As of As of
Assets December 31, 2002 December 31, 2001
--------------------------------------------------
Cash and Cash Equivalents $21,801 $17,747
Fed Funds Sold 18,245 5,300
Securities Held-to-Maturity 2,265 3,604
Securities Available-for-Sale, at Fair Value 98,869 74,753
------------------------------------------------------------------------------------------------------
Total Investments 101,134 78,357
Loans & Leases 214,428 192,281
Less: Allowance for Loan and Lease Losses (6,532) (5,498)
------------------------------------------------------------------------------------------------------
Net Loans & Leases 207,896 186,783
Premises and Equipment, Net 6,731 6,937
Other Real Estate Owned - 542
Interest Receivable and Other Assets 10,841 10,339
Net Assets From Discontinued Operations - 163
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Total Assets $366,648 $306,168
Liabilities
Deposits:
Noninterest-Bearing $75,381 $69,968
Interest-Bearing 231,345 205,608
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Total Deposits 306,726 275,576
Other Interest-Bearing Liabilities 16,415 398
Accrued Interest Payable & Other Liabilities 4,766 2,981
Trust Preferred Securities 10,000 -
Net Liabilities From Discontinued Operations 77 -
-------------------------------------------------------------------------------------------------------
Total Liabilities 337,984 278,955
Shareholders' Equity
Common Stock, No Par Value: 20,000,000 Shares
Authorized, 2,152,787 and 2,115,419 Issued and
Outstanding at December 31, 2002 and December
31, 2001, respectively. 22,600 22,322
Retained Earnings 5,197 4,481
Debt Guarantee of ESOP (80) (120)
Accumulated Other Comprehensive Income 947 530
--------------------------------------------------------------------------------------------------------
Total Shareholders' Equity 28,664 27,213
--------------------------------------------------------------------------------------------------------
Total Liabilities & Shareholders' Equity $366,648 $306,168
California Independent Bancorp and Subsidiaries
Selected Financial Data
Unaudited
Fourth Quarter 2002 Earnings Release
(Dollars in thousands except per share data)
Twelve months ended December 31, Three months ended December 31,
Consolidated Statement of Income Data: 2002 2001 2002 2001
------------------------------------------------------------------
Interest and Fee Income $20,920 $21,359 $5,673 $5,138
Interest Expense 5,156 7,022 1,428 1,385
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Net Interest Income 15,764 14,337 4,245 3,753
Provision for Loan and Lease Losses 550 2,450 100 2,450
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Net Interest Income After Provision for
Loan and Lease Losses 15,214 11,887 4,145 1,303
Noninterest Income 2,637 2,209 749 484
Noninterest Expense:
Salaries and Employee Benefits 6,664 6,888 1,575 1,734
Occupancy, Furniture and Equipment 2,081 1,993 494 523
Other Operating Expense 3,189 3,314 864 819
-----------------------------------------------------------------------------------------------------------------
Total Noninterest Expense 11,934 12,195 2,933 3,076
Net Income Before Income Taxes 5,917 1,900 1,961 (1,289)
Provision for Income Taxes 2,210 547 749 (602)
-----------------------------------------------------------------------------------------------------------------
Net Income From Continuing Operations 3,707 1,353 1,212 (687)
Income on Discontinued Operations, Net of
Tax Effect 54 56 10 18
-----------------------------------------------------------------------------------------------------------------
Net Income $3,761 $1,409 $1,222 $ (669)
Earnings Per Share
Basic Earnings Per Share From Continuing Operations $1.67 0.61 0.54 (0.31)
Diluted Earnings Per Share From Continuing Operations $1.65 0.60 0.53 (0.30)
Basic Earnings Per Share After Discontinuance of
Subsidiary $1.69 0.64 0.55 (0.30)
Diluted Earnings Per Share After Discontinuance of
Subsidiary $1.68 0.62 0.54 (0.30)
Basic Weighted Average Shares Outstanding 2,224,285 2,215,532 2,226,323 2,217,112
Diluted Weighted Average Shares Outstanding 2,244,040 2,258,067 2,272,349 2,256,497
Net Interest Margin 5.20% 5.29% 5.22% 5.33%
Basic and diluted earnings per share, and the weighted average shares, have been
adjusted to reflect the 5% stock dividends distributed on September 20, 2002 and
September 25, 2001.