WEST SACRAMENTO, Calif.--(BUSINESS WIRE)--CBBC Bancorp (OTCBB:CBBC) (“the Bank”) today reported net income for the quarter ended March 31, 2017, of $790,000, or $0.31 per diluted share, compared with net income in the first quarter of 2016 of $632,000, or $0.25 per diluted share.
Net interest income increased to $2.9 million in the first quarter of 2017 compared with $2.5 million in the first quarter of the prior year. This increase was due primarily to higher volume in loans and securities as of March 31, 2017, than in the prior year. Total loans were $215.7 million and $184.9 million as of March 31, 2017 and 2016, respectively, representing an increase of $30.9 million, or 17%. Investment totals reflected an increase of $20.4 million, or 33%, ending the first quarter of 2017 at $81.7 million as compared to $61.2 million as of March 31, 2016.
The Bank realized an increase in deposits of $32.8 million, or 16%, as of March 31, 2017, compared with March 31, 2016. This deposit increase was primarily in Time deposits, up $20.9 million, or 54%, and DDA deposits, up $18.9 million, or 25%, as of March 31, 2017, over the same time period in 2016. Savings and money market deposit totals were also up $5.1 million, or 9%, during this same time frame. Wholesale deposits were down $12.1 million, or 38%, as of March 31, 2017, as compared to March 31, 2016, reflecting a decrease of $9.8 million in CDARS deposits and $2.3 million in brokered deposits.
Noninterest income was $96,000 for the quarter ended March 31, 2017, as compared to $100,000 for the similar period in the prior year. The decrease of $4,000 was primarily due to lower mortgage loans and related fees. Noninterest expense for the quarter ended March 31, 2017, was $1.8 million, up $227,000 from March 31, 2016. This was primarily due to an increase of approximately $215,000 in other noninterest expenses due to higher professional fees and organizational expenses. The Bank’s QTD efficiency ratio is 57% as of March 31, 2017, equal to 57% as of March 31, 2016.
Total assets as of March 31, 2017, were $306.0 million as compared with $254.2 million as of March 31, 2016, an increase of 20%. The Bank’s loan-to-deposit ratio as of March 31, 2017, was 90.1%, up from 89.5% as of March 31, 2016.
The Bank’s ALLL was 1.18% as of March 31, 2017, down from 1.21% as of March 31, 2016. This decrease was due to new loan volume and not a result of any loan losses. The Bank did not recognize a provision for monthly loan losses in the first quarter of 2017; a provision of $105,000 was recorded in the first quarter of 2016. Despite the increased loan volume and the reduction in the overall ratio, our calculations indicate that the Bank continues to have an excess (unallocated reserves) in its ALLL as of March 31, 2017. The overall dollars in reserve actually increased from $2.24 million as of March 31, 2016, to $2.56 million as of March 31, 2017, due primarily to the renewed loan loss provisions in 2016. The Bank’s total NPAs (nonaccrual loans + OREO) are zero as of March 31, 2017, consistent with the balance as of the same period in 2016. Nonaccrual loans were zero as of March 31, 2017, equal to the balance as of the end of the first quarter of 2016. The OREO balance was zero as of March 31, 2017, consistent with the balance as of March 31, 2016. Meanwhile, delinquency totals at the end of the first quarter of 2017 were zero, also consistent with the balance as of the end of the first quarter of 2016.
About Community Business Bank
The Bank’s market area includes the Greater Yolo, Solano, Sacramento, San Joaquin, and contiguous counties. The Bank focuses on and provides highly personalized commercial banking services to businesses, professionals, and nonprofit organizations. The Bank's Call Reports are available for review at or download directly from the FDIC website www.fdic.gov or through the link at the Bank's website at CommunityBizBank.com.
Forward-Looking Statement
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to the Bank achieving its projected efficiency ratio and addressing its preferred stock. These forward-looking statements involve known and unknown risks, uncertainties, and factors such as: (1) the impact of changes in interest rates, (2) fluctuations in economic conditions and continued deterioration of the real estate market, (3) competition in the Company's defined market, (4) the Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.
FINANCIAL TABLES FOLLOW
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Consolidated |
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| Actual | Actual | |||||||
| Mar 2017 | Mar 2016 | |||||||
|
Assets |
||||||||
| Cash and due from banks | $ | 1,789,770 | $ | 943,559 | ||||
| Fed funds sold | 3,148,000 | 4,175,000 | ||||||
| Investment Securities | 81,711,254 | 61,237,010 | ||||||
| Loans, net of unearned income | 215,719,657 | 184,859,975 | ||||||
| Less: Allowance for loan losses | (2,555,695 | ) | (2,240,695 | ) | ||||
| Net Loans | 213,163,962 | 182,619,280 | ||||||
| Premises and equipment, net | 141,438 | 169,324 | ||||||
| Accrued interest receivable | 1,350,270 | 1,219,846 | ||||||
| Other assets | 4,728,664 | 3,799,707 | ||||||
| Total Assets | $ | 306,033,358 | $ | 254,163,726 | ||||
|
Liabilities & Shareholders' Equity |
||||||||
| Noninterest-Bearing Deposits | $ | 84,546,591 | $ | 67,998,772 | ||||
| Interest-Bearing Deposits: | ||||||||
| Core Deposits (including CDARS) | 145,615,407 | 127,062,246 | ||||||
| Brokered Deposits | 9,166,000 | 11,457,406 | ||||||
| Total Deposits | 239,327,998 | 206,518,424 | ||||||
| Accrued Expenses/Other Liabilities | 36,235,334 | 16,307,029 | ||||||
| Total Liabilities | 275,563,332 | 222,825,453 | ||||||
| Total Shareholders’ Equity | 30,470,026 | 31,338,273 | ||||||
| Total Liabilities & Shareholders' Equity | $ | 306,033,358 | $ | 254,163,726 | ||||
| BV per share (net of preferred stock) | $ | 12.15 | $ | 11.04 | ||||
| BV per share (net of preferred stock, OCI) | $ | 12.42 | $ | 11.04 | ||||
| YTD | YTD | |||||||
| Actual | Actual | |||||||
| Mar 2017 | Mar 2016 | |||||||
| Net Interest Income | $ | 2,882,789 | $ | 2,530,483 | ||||
| Provision for Loan Losses | 0 | 105,000 | ||||||
| Noninterest Income | 95,601 | 99,740 | ||||||
| Noninterest Expense | 1,759,203 | 1,532,109 | ||||||
| Income Before Taxes | 1,219,187 | 993,114 | ||||||
| Income Taxes | 429,000 | 360,800 | ||||||
| Net Income | $ | 790,187 | $ | 632,314 | ||||
|
Diluted EPS |
$ | 0.31 | $ | 0.25 | ||||
| Return on Average Assets (ROAA) | 1.06 | % | 1.02 | % | ||||
| Return on Average Equity (ROAE) | 10.71 | % | 8.21 | % | ||||
| Net Interest Margin | 3.94 | % | 4.16 | % | ||||
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|
QTD |
QTD | |||||||
| Actual | Actual | |||||||
| Mar 2017 | Mar 2016 | |||||||
| Net Interest Income | $ | 2,882,789 | $ | 2,530,483 | ||||
| Provision for Loan Losses | 0 | 105,000 | ||||||
| Noninterest Income | 95,601 | 99,740 | ||||||
| Noninterest Expense | 1,759,203 | 1,532,109 | ||||||
| Income Before Taxes | 1,219,187 | 993,114 | ||||||
| Income Taxes | 429,000 | 360,800 | ||||||
| Net Income | $ | 790,187 | $ | 632,314 | ||||
|
Diluted EPS |
$ | 0.31 | $ | 0.25 | ||||
| Return on Average Assets (ROAA) | 1.06 | % | 1.02 | % | ||||
| Return on Average Equity (ROAE) | 10.71 | % | 8.21 | % | ||||
| Net Interest Margin | 3.94 | % | 4.16 | % | ||||
