Canyon National Bank 2nd quarter earnings up

Public Record, The, Aug 03, 2001

PALM SPRINGS - Canyon National Bank (OTC:BB CYNA) reported second quarter net income growth amid decreases this year in key interest rates.

Net income was $238,000, or $0.29 per diluted share for the quarter ended June 30, 2004, an increase of $34,000, or 17%, compared to $204,000, or $0.25 per diluted share, for the quarter ended June 30, 2000. The earnings performance for 2001 is significant because the bank was not subject to income taxes in 2000. Earnings before income taxes for the second quarter of 2001 were $405,000, or 99% higher than the first quarter of the prior year. Income taxes were $167,009 for the quarter ended June 30, 2001.

Net Interest Margin, the difference between the bank's yield on interest earning assets and rate paid on interest bearing liabilities, remained stable for the six months ended June 30, 2001, despite a 275 basis point drop in the Prime and Fed Funds rate.

Net Interest Spread of 4.99% for the six months ended June 30, 2001, was down 3 basis points from 5.02% reported for the six months ended June 30, 2000.

"The bank's financial growth amid the interest rate volatility of the past six months is attributable to proactively managing the bank's product and price mix," sites President and CEO Stephen G. Hoffmann. "We adjusted the cost of funds to offset the affect that decreases in the Prime rate had on our loan portfolio. Additionally, we launched a new Mortgage Banking prograin January 1st that has capitalized on the refinancing boom."

Total assets of $102.6 million at June 30, 2001, increased $24.0 million, or 31%, compared to total assets of $78.6 million at June 30, 2000, primarily attributable to a $19.0 million increase in loans. Deposits of $93.9 million at June 30, 2001, increased $22.2 million compared to June 30, 2000, deposits of $71.7 million. Half of this growth is attributable to the new Palm Desert branch that opened October 30, 2000.