WCB Holdings, Inc.
21550 Oxnard Street, Suite 100
Woodland Hills, CA 91367
Contact: Carl Raggio
President & Chief Executive Officer
(818) 449-7711
WCB Holdings, Inc. and WCB Announces 3rd Quarter Results for 2009
Woodland Hills, Calif., November 17, 2009 –WCB Holdings, Inc. (OTCBB: WCBH), located at 21550 Oxnard Street, Suite 100, Woodland Hills, California, announced its third quarter of 2009 financial results. For the three- and nine-month period ended September 30, 2009, the Company showed net losses $285,000 and $611,000, respectively. The Company’s total assets shrank 3% from $123.2 million at September 30, 2008 to $119.7 million at September 30, 2009. For the same period, total loans shrank 3% from $99.4 million to $96.4 million and total deposits contracted 1% from $107.7 million to $106.1 million, respectively. The Company also recognized $32,000 in warrants expense for the nine-month period ended September 30, 2009.
Western Commercial Bank, a wholly owned subsidiary of WCB Holdings, Inc., recognized $51,000 and $153,000 in non-cash stock option compensation expenses, and provided $200,000 and $485,000 in loan loss provision for the three- and nine-month period ended September 30, 2009.
At September 30, 2009, the Bank’s allowance for loan losses was $1,604,000 or 1.66% of total loans (or 1.74% net of cash secured and government guaranteed loans), which Management considers prudent in this economy.
At September 30, 2009, the Bank’s Tier 1 leverage ratio was 8.28% and its total risk-based-capital ratio was 10.68%, both considered in the well-capitalized category. The Bank has 8 non-performing assets for $14.5 million, which are all well-secured (or reserved) with one credit mitigated by a $5.3 million guarantee by the USDA. Of the 8 non-performing assets, 2 are OREO for $2.6 million with one in escrow scheduled to close next week.
Carl W. Raggio, III, President and CEO, said, “The economy continues to be a major factor for the banking industry and certainly has had its affect on some of our loans. However, we strongly feel our reserves remain a strong cushion for the expected and continuing problematic economy. Our portfolio was underwritten very well and in most cases well-collateralized, even in these difficult times. We feel this will prove positive as we work through this difficult period.”
The Company’s Board has approved a $5 million preferred stock offering and has already injected into the Bank $900,000 from Board members and founders. As stated in an earlier press release, the Bank entered into a Consent Order with the DFI and FDIC and feels it will be in full compliant with the Order which, amongst other requirements, calls for raising $1 million in capital.
The Bank must meet certain requirements in the Order which includes achieving a Tier 1 Capital to total assets ratio of 9.5% and reducing classified assets to no more than 50% of Tier 1 Capital plus the loan loss allowance. These ratios must be met in December of 2009 and January of 2010, respectively, and Management feels these will be achieved.
Forward-looking statements, by their nature, are subject to risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. Forward-looking statements speak only as of the date they were made. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances that may occur after the date that forward-looking statements are made.
The Bank offers a comprehensive selection of business deposit and loan products, cash management services as well as SBA-guaranteed loans. The Bank is not involved in any of the sub-prime products.
The Bank provides financial services to small and mid-sized businesses, entrepreneurs and professionals in the San Fernando Valley, with special expertise in commercial real estate finance.
Regular office hours are Monday through Friday, 9:00 a.m. until 4:00 p.m.
Information on the Bank’s services is available by calling (818) 449-7700 and online at www.westerncommercialbank.com. Information on the Bank’s stock may be obtained from Carl W. Raggio, III, President and Chief Executive Officer, at (818) 449-7700. The stock trades on the OTC Bulletin Board.
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