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1st Quarter 2012 Shareholders Report (click here for full PDF version with Financial Supplement)
March 31, 2012 —
Once again, we are proud to update our friends and shareholders. The Bank continues to perform well with strong liquidity, capital and vision. Our first quarter results reflect sustained improvement in the quality of our loan portfolio and continued positive core earnings momentum experienced in recent quarters. We believe we are on track for a very good year.
The Bank reported record first quarter earnings of $250,000, as opposed to $65,000 in the first quarter of 2011. Loan demand continues to be soft, resulting in slightly lower balances than desired. As a result of the better credit quality, we did not increase our allowance for loan loss reserve this quarter. However, the benefit of this was offset by lower income as loan balances declined and increased expenses related to certain foreclosure activity.
The Bank continues on its intentional slow growth plan. Total deposits increased $2.3 million, or 2%, since the beginning of the year and $5.1 million, 5%, since March 31, 2011. The Bank’s liquidity level is very high, therefore, increasing deposits at this time, with soft loan demand, is not beneficial. We continue to focus on originating high quality loans to assist in growing capital through retained earnings.
Our stock is available on, what is referred to as, the bulletin board. Recent trades have been in the $4.75 - $5.00 range. We have included contact information of one of our market makers if you should have any questions or desire to make a change in your holdings. Our symbol is OJCB.
We remain on very good terms with the regulators, in what has become an increasingly regulated industry. We know a clean bank and a satisfactory return is of upmost importance to our shareholders. We see improvement in both daily. Our Tier 1 Tangible capital is $13.5 million or 10.09% of average assets.
Loan credit quality, as we noted, continues to improve. Loans on non accrual are below $1 million. In March of 2011, they were up to $5.8 million. Substandard loans have declined significantly and we have seen minimal migration of new loans into the problem category. Unfortunately, we have had to foreclose on a couple properties after extensive attempts to work with the borrowers in each case. We will look to market them in the near future, but do not expect significant long term exposure.
We are excited about the opportunities and possibilities of 2012. The economy is more stable than in previous years; some economic growth and increasing consumer confidence can be seen all around us each day. Changes continue in the local and national banking landscape which provides additional opportunity for small banks.
Our annual shareholder’s meeting is scheduled for May 12, 2012, at 1:00 pm here in Ojai. We encourage all to attend. It is an excellent opportunity to get more in-depth information about the Bank, ask any questions and enjoy the company of friends and shareholders. Please mark your calendars and join us.
We are always here to answer any questions. Contact Dave Brubaker, President/CEO, at the office located at 402 W. Ojai Ave, Ojai CA 93023, firstname.lastname@example.org or 805-646-9909.
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