Community Bank Reports Year-to-Date Earnings of $12.9 Million

PASADENA, Calif.--()--Community Bank, an independent business bank with 17 business centers in Southern California, reported net income of $12.9 million for the six months ended June 30, 2014 compared to $13.4 million for the similar period in 2013. For the second quarter of 2014, the Bank reported net income of $6.2 million compared to $7.4 million for the same quarter last year.

  • Net interest income for the six months ended June 30, 2014 increased 8.0% over the prior year, totaling $52.1 million in 2014 versus $48.2 million in 2013. During the second quarter of 2014, net interest income increased 4.0% over the prior year, totaling $25.8 million in 2014 versus $24.8 million in the prior year. The improvement during 2014 was due to growth in earning assets which outpaced the rate of margin compression.
  • Quality of earnings improved in 2014 compared to 2013 because the Bank reported a gain on sale of securities of $1.5 million in 2013, a gain that did not recur this year.
  • Total loans as of June 30, 2014 increased more than 8% to $2.2 billion as compared to $2.0 billion as of June 30, 2013.
  • Total deposits increased more than 8% to $2.6 billion as of June 30, 2014 as compared to $2.4 billion as of June 30, 2013. Non-interest bearing deposits increased 16.5% or $112.1 million.
  • The Bank’s reserve for loan losses as of June 30, 2014 was $34.8 million or 1.61% of total loans compared to $34.7 million or 1.74% of total loans as of June 30, 2013.
  • No provision for loan losses was required for either the first six months of 2014 or 2013, reflective of continued improvement in credit quality, as evidenced by the 52% decrease in non-performing loans between June 2013 and June 2014.
  • Community Bank’s capital ratios continue to significantly exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital and Total Risk-based Capital Ratios of 8.14%, 10.51%, and 11.76%, respectively, as of June 30, 2014.

Community Bank, with assets of $3.5 billion, was founded in 1945 and is headquartered in Pasadena. The Bank is a regional Southern California Bank with offices in Anaheim, Burbank, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, Ventura, West Los Angeles, 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)
(Amounts in Thousands)
 
For the quarters ended For the six months ended
June 30, June 30,
INCOME STATEMENT 2014 2013

Dollar

Change

Percent

Change

2014 2013

Dollar

Change

Percent

Change

 
Interest income $ 30,702 $ 30,406 $ 296 1.0 % $ 61,996 $ 59,148 $ 2,848 4.8 %
Interest expense   4,868     5,577     (709 ) (12.7 %)   9,941     10,941     (1,000 ) (9.1 %)
Net interest income 25,834 24,829 1,005 4.0 % 52,055 48,207 3,848 8.0 %
Provision for loan losses   -     -     -   -     -     -     -   -  
Net interest income after provision 25,834 24,829 1,005 4.0 % 52,055 48,207 3,848 8.0 %
Non-interest income 2,463 3,723 (1,260 ) (33.8 %) 5,035 6,491 (1,456 ) (22.4 %)
Non-interest expense   18,214     16,466     1,748   10.6 %   36,249     33,017     3,232   9.8 %
Income before income tax 10,083 12,086 (2,003 ) (16.6 %) 20,841 21,681 (840 ) (3.9 %)
Income tax   3,859     4,649     (790 ) (17.0 %)   7,989     8,244     (255 ) (3.1 %)
Net income $ 6,224   $ 7,437   $ (1,213 ) (16.3 %) $ 12,852   $ 13,437   $ (585 ) (4.4 %)
 
 
Financial Highlights - Balance Sheet (Unaudited)
(Amounts in Thousands)
 
As of June 30, Dollar Percent
BALANCE SHEET 2014 2013 Change Change
Cash and cash equivalents $ 88,418 $ 55,558 $ 32,860 59.1 %
Investments 1,166,426 1,035,198 131,228 12.7 %
Non-owner occupied real estate loans 694,633 637,536 57,097 9.0 %
Owner occupied real estate loans   913,801     848,767     65,034   7.7 %
Total real estate loans 1,608,434 1,486,303 122,131 8.2 %
Commercial & industrial loans 520,818 479,541 41,277 8.6 %
Other loans   30,103     29,886     217   0.7 %
Total loans 2,159,355 1,995,730 163,625 8.2 %
Loan loss reserve   (34,768 )   (34,661 )   (107 ) 0.3 %
Net loans 2,124,587 1,961,069 163,518 8.3 %
Other assets   125,576     120,694     4,882   4.0 %
Total assets $ 3,505,007   $ 3,172,519   $ 332,488   10.5 %
 
Earning assets $ 3,341,819 $ 3,049,198 $ 292,621 9.6 %
 
Non-interest bearing deposits $ 792,849 $ 680,733 $ 112,116 16.5 %
Interest bearing deposits   1,789,556     1,696,204     93,352   5.5 %
Total deposits 2,582,405 2,376,937 205,468 8.6 %
Funds purchased/borrowed 625,500 530,500 95,000 17.9 %
Other liabilities   14,877     14,713     164   1.1 %
Total liabilities 3,222,782 2,922,150 300,632 10.3 %
Stockholders' equity   282,225     250,369     31,856   12.7 %

Total liabilities & stockholders' equity

$ 3,505,007   $ 3,172,519   $ 332,488   10.5 %
 
 
Selected Financial Data and Highlights (Unaudited)
(Amounts in Thousands)
 
For the quarters ended For the six months ended
June 30, June 30,
2014 2013 2014 2013
Return on average equity 9.02 % 11.47 % 9.56 % 10.45 %
Return on average assets 0.73 % 0.95 % 0.77 % 0.88 %
Net interest margin 3.16 % 3.30 % 3.23 % 3.27 %
Efficiency ratio 64.37 % 60.44 % 63.49 % 62.04 %
 
Book value per common share $ 90.22 $ 80.10
Basic earnings per common share $ 1.99 $ 2.37 $ 4.11 $ 4.30
Diluted earnings per common share $ 1.99 $ 2.38 $ 4.10 $ 4.29
 
As of June 30, Minimum Ratios for a
CAPITAL RATIOS 2014 2013 Well-Capitalized Bank
Tier 1 leverage capital 8.14 % 8.09 % 5.00 %
Tier 1 risk-based capital 10.51 % 10.47 % 6.00 %
Total risk-based capital 11.76 % 11.73 % 10.00 %

 

Tier 1 common capital 10.51 % 10.47 % N/A
 
As of June 30,

 

 

OTHER SELECTED DATA 2014 2013

Dollar

Change

Percent

Change

Other real estate owned $ 6,089 $ 4,530 $ 1,559 34.4 %
Nonperforming loans $ 17,759 $ 36,777 $ (19,018 ) (51.7 %)
Reserve for loan losses to total loans 1.61 % 1.74 % (7.5 %)
Reserve for loan losses to nonperforming loans 195.78 % 94.25 % 107.7 %
Nonperforming loans to total loans 0.82 % 1.84 % (55.4 %)
Nonperforming assets to total assets 0.68 % 1.30 % (47.7 %)
 

Contacts

Community Bank
Nancy Karlson, Chief Financial Officer
(626) 568-2076

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Contacts

Community Bank
Nancy Karlson, Chief Financial Officer
(626) 568-2076