Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.7 billion is headquartered in Pasadena with 17 business centers.
Highlights of the first quarter are as follows:
- The Bank reported a 7.9% increase in net income to $7.7 million for the first quarter of 2016 compared to $7.2 million for the similar quarter in 2015.
- Net interest income for the first quarter of 2016 increased 8.1% over the prior year, totaling $29.0 million in 2016 versus $26.8 million in the prior year. The improvement in 2016 was due to growth in earning assets combined with lower funding costs.
- Total loans as of March 31, 2016 increased more than 10% to $2.5 billion compared to $2.3 billion as of March 31, 2015.
- Non-interest bearing deposits increased more than 11% to $987.5 million compared to $888.7 million as of March 31, 2015, while total deposits increased slightly at 1.3%.
- Declared a $0.50 per share cash dividend (aggregating approximately $1.564 million) on its outstanding common stock for common shareholders of record as of May 13, 2016 and payable on or about June 1, 2016. This is the sixth consecutive quarter that the Bank has declared a dividend since the Bank introduced a formal dividend practice. The dividend was approved at the regularly scheduled Board of Directors meeting held on April 28, 2016.
- The Bank’s reserve for loan losses as of March 31, 2016 was $37.4 million or 1.47% of total loans compared to $35.4 million or 1.55% of total loans as of March 31, 2015. A $1.0 million provision for loan losses was recognized during the first quarter of 2016 compared to no provision in the first quarter of 2015, largely due to loan growth.
- Community Bank’s capital ratios continue to significantly exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital, Common Equity Tier 1 and Total Risk-based Capital Ratios of 8.78%, 10.35%, 10.35% and 11.60%, respectively, as of March 31, 2016.
-
Also, over the last several months, the bank has made significant
strides in other areas as follows:
- The appointment of Alan Buckle as President and Chief Banking Officer
- The appointment of Michael J. Helmuth as Regional President of the South Region
- The hiring of James Hicken and Cassaundra Johnson as Business Center Managers of Burbank and Anaheim, respectively.
- The addition of three new Board members: Robert J. Kushner, Lyle R. Knight and Matthew Denmark
- The opening of a new office in Laguna Niguel
- Staffing levels have remained stable at under 420 for the last consecutive 6 quarters.
David R. Misch, the Bank’s Chief Executive Officer, commented, “The actions the Bank has taken over the past three years—including the addition of new leaders both in and out of the Board room--are designed to sustain the momentum we are seeing in the first quarter.” Misch added “A customer told me the other day that, despite all the growth the Bank has had over the last several years that it continues to be a customer friendly, community bank. That is the best compliment we could ever be paid.
Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Laguna Niguel, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, and Woodland Hills. For more information, visit the Community Bank Website at www.cbank.com.
This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.
| COMMUNITY BANK | ||||||||||||
| Financial Highlights - Income Statement and Ratios - Unaudited ($000s) | ||||||||||||
| For the quarters ended | ||||||||||||
| March 31, | Percent | |||||||||||
| INCOME STATEMENT | 2016 | 2015 | Change | |||||||||
| Interest Income | $ | 32,027 | $ | 31,201 | 2.6 | % | ||||||
| Interest Expense | 3,065 | 4,417 | (30.6 | %) | ||||||||
| Net interest income | 28,962 | 26,784 | 8.1 | % | ||||||||
| Provision for loan losses | 1,000 | - | - | |||||||||
| Net interest income after provision | 27,962 | 26,784 | 4.4 | % | ||||||||
| Non-interest income | 3,997 | 3,512 | 13.8 | % | ||||||||
| Non-interest expense | 19,373 | 18,440 | 5.1 | % | ||||||||
| Income before income tax | 12,586 | 11,856 | 6.2 | % | ||||||||
| Income tax | 4,838 | 4,673 | 3.5 | % | ||||||||
| Net income | $ | 7,748 | $ | 7,183 | 7.9 | % | ||||||
| Financial Highlights - Balance Sheet - Unaudited ($000s) | ||||||||||||
| As of March 31, | Percent | |||||||||||
| BALANCE SHEET | 2016 | 2015 | Change | |||||||||
| Cash and cash equivalents | $ | 52,181 | $ | 62,427 | (16.4 | %) | ||||||
| Investments | 955,907 | 1,128,413 | (15.3 | %) | ||||||||
| Non-owner occupied real estate loans | 735,892 | 719,840 | 2.2 | % | ||||||||
| Owner occupied real estate loans | 1,093,397 | 947,746 | 15.4 | % | ||||||||
| Total real estate loans | 1,829,289 | 1,667,586 | 9.7 | % | ||||||||
| Commercial & industrial loans | 654,715 | 586,854 | 11.6 | % | ||||||||
| Other loans | 53,026 | 35,351 | 50.0 | % | ||||||||
| Total loans | 2,537,030 | 2,289,791 | 10.8 | % | ||||||||
| Loan loss reserve | (37,364 | ) | (35,400 | ) | 5.5 | % | ||||||
| Net loans | 2,499,666 | 2,254,391 | 10.9 | % | ||||||||
| Other Assets | 145,506 | 132,648 | 9.7 | % | ||||||||
| Total assets | $ | 3,653,260 | $ | 3,577,879 | 2.1 | % | ||||||
| Earning assets | $ | 3,514,059 | $ | 3,445,795 | 2.0 | % | ||||||
| Non-interest bearing deposits | $ | 987,467 | $ | 888,667 | 11.1 | % | ||||||
| Interest bearing deposits | 1,675,487 | 1,741,269 | (3.8 | %) | ||||||||
| Total deposits | 2,662,954 | 2,629,936 | 1.3 | % | ||||||||
| Funds purchased/borrowed | 640,000 | 621,000 | 3.1 | % | ||||||||
| Other liabilities | 24,799 | 20,381 | 21.7 | % | ||||||||
| Total liabilities | 3,327,753 | 3,271,317 | 1.7 | % | ||||||||
| Stockholders' equity | 325,507 | 306,562 | 6.2 | % | ||||||||
Total liabilities & stockholders' equity | $ | 3,653,260 | $ | 3,577,879 | 2.1 | % | ||||||
| Selected Financial Data and Highlights - Unaudited ($000s, except per share data) | ||||||||||||
| For the quarters ended | ||||||||||||
| March 31, | ||||||||||||
| 2016 | 2015 | |||||||||||
| Return on average equity | 9.69 | % | 9.58 | % | ||||||||
| Return on average assets | 0.86 | % | 0.81 | % | ||||||||
| Earning asset yields | 3.71 | % | 3.67 | % | ||||||||
| Cost of funds | 0.36 | % | 0.52 | % | ||||||||
| Net interest margin | 3.35 | % | 3.15 | % | ||||||||
| Efficiency ratio | 58.78 | % | 61.83 | % | ||||||||
| Book value per common share | $ | 104.05 | $ | 98.00 | ||||||||
| Basic earnings per common share | $ | 2.48 | $ | 2.30 | ||||||||
| Diluted earnings per common share | $ | 2.48 | $ | 2.30 | ||||||||
| Employee head count | 415 | 408 | ||||||||||
| As of March 31, | Minimum Ratios for a | |||||||||||
| CAPITAL RATIOS | 2016 | 2015 | Well-Capitalized Bank | |||||||||
| Tier 1 leverage capital | 8.78 | % | 8.28 | % | 5.00 | % | ||||||
| Tier 1 risk-based capital | 10.35 | % | 10.56 | % | 8.00 | % | ||||||
| Total risk-based capital | 11.60 | % | 11.81 | % | 10.00 | % | ||||||
| Common equity tier 1 capital | 10.35 | % | 10.56 | % | 6.50 | % | ||||||
| As of March 31, | Percent | |||||||||||
| OTHER SELECTED DATA | 2016 | 2015 | Change | |||||||||
| Other real estate owned | $ | 6,479 | $ | 5,055 | 28.2 | % | ||||||
| Nonperforming loans | $ | 11,930 | $ | 9,923 | 20.2 | % | ||||||
| Reserve for loan losses to total loans | 1.47 | % | 1.55 | % | (5.2 | %) | ||||||
| Reserve for loan losses to nonperforming loans | 313.19 | % | 356.75 | % | (12.2 | %) | ||||||
| Nonperforming loans to total loans | 0.47 | % | 0.43 | % | 9.3 | % | ||||||
| Nonperforming assets to total assets | 0.50 | % | 0.42 | % | 19.0 | % | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160429006070/en/
Contacts:
Nancy L. Karlson, Chief Financial Officer
626-568-2076
