FOR IMMEDIATE RELEASE
NEWPORT BEACH, Calif--January 17, 2007 - Independence Bank announces 23.3% increase in earnings for the fourth quarter 2006.
"We are pleased with our continued strong quarter to quarter financial performance," stated Chuck Thomas, President and CEO. "Our fourth quarter profits were $513,000, a 23.3% increase over theprior quarter."
Net interest income for the quarter was $1.5 million, compared to $1.4 million for the third quarter. The increase was primarily due to an increase in loans outstanding. Total gross loans outstanding increased from $232.5 million to $252.1 million during the quarter.
Total assets were $285.0 million at December 31, 2006, a 10.9% increase from September 30, 2006. This increase is primarily due to continued strong lending activity in our served markets. The allowance for loan loss also increased $200,000 during the fourth quarter 2006 to reflect the loan growth. There were no delinquent or non-accrual loans at December 31, 2006. The bank reports no loan charge-offs during 2006. "Our loan portfolio continues to perform as planned demonstrating market strength as well as careful underwriting," added Chuck Thomas.
Deposits increased 12.1%, from $167.2 million to $187.5 million during the fourth quarter 2006. The deposit growth was fueled by existing branch growth, increased private banking activities, deposit promotions and from our new San Juan Capistrano branch.
Shareholders' equity increased 2.9% to $33.2 million from September 30, 2006 due to growth in net income. Capital ratios remain strong at December 31, 2006 with tier one capital at 12.3% and total risk based capital at 13.3%, well above the minimum to qualify as well capitalized.
"2006 was a pivotal year for Independence Bank and reflected a shift in corporate philosophy," added Thomas. "During the year we simplified our operations by merging our holding company, Independence Financial Group, Inc., into the bank. We converted our charter from an Industrial Bank to a Commercial Bank, opened our full service San Juan Capistrano branch and received regulatory approval to open a full service branch in Fountain Valley, which opened on January 17, 2007. Our ability to accomplish so much while growing at a brisk pace is a testament to our employees and reflects strong community acceptance." Contact Information:
Contact Information:
Chuck Thomas, President/CEO
Phone: (949) 266-6000
Fax: (949) 266-6006
Email: cthomas@independence-bank.net
Maria Arakaki, EVP/CFO
Phone: (949) 266-6013
Fax: (949) 266-6006 Email: marakaki@independence-bank.net
Independence Bank
4525 MacArthur Boulevard
Newport Beach, CA 92660
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