Heritage Oaks Bancorp Press Release Continued
Exhibit 7(c) 99.1
FOR IMMEDIATE RELEASE
1:00 PM PT, July 9, 2003
Quarterly Earnings Press Release
Lawrence P. Ward, President and CEO of Heritage Oaks Bancorp (the Company) and
its subsidiary, Heritage Oaks Bank (the Bank), announced the results of
operations through the end of the second quarter June 30, 2003. Mr. Ward stated
"for the six months ending June 30, 2003, the Company reported earnings of
$1,703,859, or $0.54 per share on a fully diluted basis. This represents a 42%
improvement over earnings of $1,199,641 or $0.38 per share on a fully diluted
basis for the same period in 2002. For the six months ending June 30, 2003, the
Company reported Return on Average Assets ( ROAA) and Return On Average Equity
(ROE) of 1.07% and 16.33%, respectively".
Mr. Ward went on to say that at June 30, 2003, "the Company reported growth in
assets of 24%, growth in loans net of reserves of 26%, growth in deposits of 33%
and growth in equity capital of 25% over the levels at the same period in 2002.
" A strong economic climate and strong loan demand are the primary drivers
behind the robust growth figures. Deposit growth is also reflective of a strong
real estate market driven by historically low mortgage interest rates.
Below is a summary un-audited balance sheet data for the periods ending June 30:
(amounts in thousands)
2002 2003
Total Assets $282,652 $349,753
Loans, net of reserves $166,825 $209,553
Deposits $217,257 $289,606
Equity Capital $ 17,525 $ 21,840
Below is summary un-audited income statement data for: (amounts in dollars)
Three Months Ending Six Months Ending
June 30, June 30,
2002 2003 2002 2003
Net Interest
Income $2,989,318 $3,603,149 $5,899,240 $6,947,628
Non-Interest
Income $ 797,885 $ 927,178 $1,580,001 $1,828,458
Non-Interest
Expense $2,677,534 $2,979,768 $5,355,930 $5,848,491
Income Tax
Expense $ 328,249 $ 546,269 $ 638,670 $ 973,736
Net After Tax
Income $ 631,420 $ 879,290 $1,199,641 $1,703,859
Information regarding Heritage Oaks Bancorp stock may be acquired using the call
sign of HEOP or accessed on line at www.heritageoaksbank.com. Information may
also be acquired by calling our market makers, Hoefer and Arnett at
1-800-346-5544; The Seidler Co at 1-800-288-2811; Wedbush Morgan Securities at
1-800-234-0480; Sandler O'Neill & Partners, L.P. at 1-800-635-6860 or by
Contacting Tana Eade-Davis AVP, Shareholder Relations Officer at Heritage Oaks
Bank.
Statements concerning future performance, developments or events, expectations
for growth and income forecasts, and any other guidance on future periods,
constitute forward-looking statements that are subject to a number of risks and
uncertainties. Actual results may differ materially from stated expectations.
Specific factors include, but are not limited to, increased profitability,
continued growth, the Company's beliefs as to the adequacy of its existing and
anticipated allowances for loan losses, beliefs and expectations regarding
actions that may be taken by regulatory authorities having oversight of the
Company's operations, interest rates and financial policies of the United States
government and general economic conditions. Additional information on these and
other factors that could affect financial results are included in its Securities
and Exchange Commission filings.
-End