NorCal Community Bancorp (the "Company") (NCLC), parent company for Bank of Alameda, today reported a fourth quarter profit of $603,000, or $0.06 per diluted share, compared to net income of $205,000, or $0.02 per diluted share for the fourth quarter in 2011. For the year ended December 31, 2012 the company reported a net loss of $987,000, or ($0.09) per diluted share, compared to net income of $12,000 for the same period in 2011.

Return on average assets and average equity for the three months ended December 31, 2012 was 0.87% and 12.08%, respectively, compared to 0.32% and 3.89% for the same period in 2011. Included in the fourth quarter of 2012 is the reversal of approximately $300,000 in an over-accrual of FDIC deposit insurance assessments. During 2012 the Bank had been assessing its payment of FDIC insurance using a 2009 prepayment fee schedule. This accrual was reviewed in December 2012 and corrected to reflect the actual assessment fees incurred during 2012.

Credit quality significantly improved at December 31, 2012. Non-performing assets at December 31, 2012 were $2.4 million, or less than one percent of total assets. This compares with $7.7 million at September 30, 2012 and $9.5 million at December 31, 2011. President and CEO, Stephen G. Andrews stated, "In 2012 we substantially reduced problem assets and we experienced little further deterioration in our portfolio, signaling improvement in our market area and positioning the Company for improved revenue potential."

Adversely classified assets as a percentage of Tier 1 Capital plus the Allowance for Loan and Lease Losses was 31% at December 31, 2012, compared to 79% at December 31, 2011. Mr. Andrews further commented, "The adversely classified ratio is a strong indicator of the health of a bank's loan portfolio. At the height of the banking crises the Company's adversely classified asset ratio was in excess of 151% at March 31, 2010."

As of December 31, 2012, total assets were $265.7 million; up 7.1% or $17.6 million compared to December 31, 2011 total assets of $248.1 million. Total loans and leases increased $2.0 million, or 1.2% to $167.8 million at December 31, 2012 compared to $165.8 million at December 31, 2011. Total deposits increased $18.2 million, or 8.4% to $236.0 million at December 31, 2012, compared to $217.8 million at December 31, 2011.

In closing, Mr. Andrews stated, "Our Company has emerged from these unprecedented times with a strong customer base, increasing loan demand and a loyal and talented group of employees. The Board and management would like to thank all of our customers, shareholders and employees for their continued support."

A copy of the Company's information and disclosure statement pursuant to Securities and Exchange Commission Rule 15c2-11 can be found on the home page of the Company's website at www.bankofalameda.com under the Investor Relations section.

Cautionary Statement: This release may contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated herein. Words such as "anticipate," "believe," "estimate," "expect," "should," "intend," "project," and words or phrases of similar meaning are intended to identify forward-looking statements. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from that projected.

NorCal Community Bancorp
FINANCIAL HIGHLIGHTS
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
     
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
FOR THE PERIOD 2012 2011 2012 2011
Total interest income $ 2,538 $ 2,695 $ 10,370 $ 10,512
Total interest expense   153     204     752     906  

Net interest income before provision for loan and lease losses

2,385 2,491 9,618 9,606
Provision for loan and lease losses   -     150     2,650     900  

Net interest income after provision for loan and lease losses

2,385 2,341 6,968 8,706
Noninterest income 710 259 2,062 1,032
Noninterest expense   2,492     2,395     10,015     9,636  
Income (loss) before provision for income taxes 603 205 (985 ) 102
Provision for income tax expense   -     -     2     90  
Net Income (loss) $ 603   $ 205   $ (987 ) $ 12  
 
Basic loss per share $ 0.06 $ 0.02 $ (0.09 ) $ -
Diluted loss per share $ 0.06 $ 0.02 $ (0.09 ) $ -
 
Average shares outstanding 10,610,716 10,610,716 10,610,716 10,612,713
Diluted average shares for the period 10,652,088 10,610,716 10,652,088 10,623,048
 
SELECTED FINANCIAL RATIOS
(Annualized)
Return on average assets 0.87 % 0.32 % -0.37 % 0.00 %
Return on average equity 12.08 % 3.89 % -4.82 % 0.06 %
Yield on earning assets 3.76 % 4.28 % 3.99 % 4.25 %
Cost of funds 0.24 % 0.35 % 0.31 % 0.39 %
Net interest margin 3.54 % 3.96 % 3.70 % 3.88 %
Efficiency ratio 80.53 % 87.10 % 85.75 % 90.58 %
Net charge-offs (recoveries) as a percentage of
average loans and leases 2.22 % 0.19 % 2.35 % 1.19 %
Loan loss provision as a percentage of
average loans and leases 0.00 % 0.37 % 1.59 % 0.56 %
 
 
Financial Highlights - Continued
As of
December 31, December 31, %
CONSOLIDATED BALANCE SHEET 2012 2011 Change
ASSETS
Cash and due from banks
Non-interest bearing $ 2,050 $ 1,703 20 %
Interest bearing 30,323 15,900 91 %
Investment securities 62,177 64,136 -3 %
Loans and leases 167,825 165,843 1 %
Allowance for loan and lease losses   (3,549 )   (4,807 ) -26 %
Net loans and leases 164,276 161,036 2 %
Other real estate 461 1,844 -75 %
Other assets   6,446     3,510   84 %
TOTAL ASSETS $ 265,733   $ 248,129   7 %
 
LIABILITIES
Deposits
Non-interest bearing $ 73,939 $ 64,694 14 %
Interest bearing   162,034     153,089   6 %
Total deposits 235,973 217,783 8 %
Subordinated debentures 8,248 8,248 0 %
Other liabilities   1,439     1,149   25 %
TOTAL LIABILITIES   245,660     227,180   8 %
 
SHAREHOLDERS' EQUITY 20,073 20,949 -4 %
TOTAL LIABILITIES AND    
SHAREHOLDERS' EQUITY $ 265,733   $ 248,129   7 %
 
Book value per share $ 1.89 $ 1.97
 
BANK OF ALAMEDA
REGULATORY CAPITAL RATIOS
Leverage ratio 9.07 % 11.35 %
Tier 1 risk-based capital ratio 13.97 % 16.23 %
Total risk-based capital ratio 16.90 % 17.50 %
 
ASSET QUALITY METRICS
ALLL as a percentage of total loans and leases 2.11 % 2.90 %
Non-performing assets as a percentage of
total assets 0.92 % 3.83 %
Non-performing assets as a percentage of
total equity + ALLL (Texas ratio) 10.36 % 36.85 %

NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.net