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2nd Quarter 2012 Shareholders Report (click here for full PDF version with Financial Supplement)
Again we are pleased to share our important progress and good news with you. The Bank continues to be profitable, and credit quality is very stable. Capital and liquidity are strong, and the regulatory environment has been very positive. On May 1, 2012, regulatory agencies released the Bank from all informal supervisory actions, other than the normal requirements and reporting. These are truly signs of significant improvement of our Bank.
Net income for the first six months of 2012 was a record-setting $532,000. This represents a 220% increase over the first six months of 2011. In fact, for all of 2011, the Bank made $545,000, so we are well on our way to a very successful year.
Since June 30, 2011, total assets have increased approximately $8 million, to $133 million, and deposits increased by $6 million during the same period. In addition, net income has been retained in the Bank to contribute to an increase in capital of close to $1 million in the past twelve months. Again, excellent progress.
During the second quarter, we applied for and received regulatory approval to open a branch office in the City of Ventura. The new branch is scheduled to open in early October at 3130 Telegraph Road, near Five Points. It will operate as Ventura Community Bank, a division of Ojai Community Bank. It is an affordable location with a small footprint, so we expect quick success. We anticipate the location to have both a drive-up and an ATM, and we believe this branch will help build our loan portfolio.
At the same time, we have received regulatory approval to consolidate our two offices in Santa Paula. Although this was a difficult decision, it makes prudent long-term sense. Customers have been notified, and effective September 14, 2012, the downtown location will merge into the Harvard Boulevard site. We own the downtown location, and will determine the best option for the building at a later date. This cost savings will offset a portion of the Ventura expansion. We will work to relocate as many employees as possible.
Regarding asset quality, non-accrual loans as of June 30, 2011 were approximately $4 million. At June 30, 2012, they were below $225,000. In addition, substandard assets are down approximately 57% to $2.9 million and are trending down. We have not seen additional migration of loans into problem categories, and as a result, have not been required to add to our loan-loss reserves this year.
All in all, we have enjoyed an excellent quarter. Highlights included good earnings, strong capital, good asset quality, and a renewed focus on proactive service in existing and neighboring markets. Our stock is trading (symbol OJCB) around book value at $5.25, which is very common in the industry today. It is truly a pleasure to see the continued improvement of our Bank for the benefit of all concerned.
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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