PASADENA, Calif.--(BUSINESS WIRE)--Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.6 billion, and headquartered in Pasadena with 16 business centers.
Financial highlights:
- Net income for the first quarter of 2017 increased $39 thousand or 0.5%, over the prior year.
- In a strategic move to add high quality floating rate loans to its balance sheet, the Bank began to hold all of its SBA loans in the 4th quarter of 2016 versus selling them in the secondary market. Accordingly, fees from loan sales declined from $1.7 million in the 1st quarter of 2016 to $63 thousand in the same period in 2017.
- Net interest income decreased during 2017 to $27.8 million from $29.0 million in the first quarter of the prior year. Net interest margin also decreased for the first quarter of 2017 to 3.24% from 3.33% during the same period of 2016. The decrease in net interest income and the net interest margin is primarily due to the reversal of $320 thousand in interest on nonaccrual loans and the July 2016 extension of $300 million of funding from overnight to 5 years. The extension of the funding was a strategic decision to reduce the interest rate risk profile of the Bank.
- Total loans as of March 31, 2017 decreased $21 million to $2.5 billion as compared to March 31, 2016. The decrease is partially due to $40 million in loan sales and $30 million in payoffs of substandard and special mention loans. Loan growth was $22.0 million or 0.9 % at March 31, 2017 compared with December 31, 2016 (and $52 million or 2.1% when considering the $30 million in payoffs).
- Non-interest bearing deposits increased 6.9%, or $68.5 million, to $1.1 billion compared to $987.5 million as of March 31, 2016, while total deposits decreased slightly at 0.6%.
- Core deposits represented 84.9% of total deposits, as of March 31, 2017, with the non-interest bearing component representing 47.0% of core deposits as compared to 43.2% as of the March 31, 2016. (Community Bank defines core deposits as those deposits generated by its branch network including specialty areas and excludes deposits placed through the Treasury area.)
- The Bank’s reserve for loan losses as of March 31, 2017 was $33.4 million or 1.33% of total loans compared to $37.4 million or 1.47% of total loans as of March 31, 2016. In the 1st quarter 2017, a recovery of $1.6 million in the provision for loan losses was recognized compared to a provision of $1.0 million during the 1st quarter of 2016.
- The Bank’s nonperforming assets totaled $15.0 million as of March 31, 2017 compared to $18.4 million as of March 31, 2016.
- Community Bank’s capital ratios continue to exceed “well capitalized” regulatory requirements
Other highlights:
- The Board of Directors declared a $0.50 per share cash dividend (aggregating $1.6 million) on its outstanding common stock for common shareholders of record as of May 15, 2017 and payable on or about June 1, 2017. This represents the tenth consecutive quarter that the Bank has declared a dividend since introducing a formal dividend practice. The dividend was approved at the regularly scheduled Board of Directors meeting held on April 27, 2017.
CBank is pleased to include the following as market makers in Community Bank stock. Community Bank stock trades on OTC pink sheets under the ticket of CYHT. Contact information for our market makers is as follows:
| Raymond James & Associates | D.A. Davidson & Co. | |
| John T. Cavender, SVP Financial Institutions | Michael R. Natzic, Senior Vice President | |
| 415-616-8935 | 1-800-288-2811 | |
| Keefe Bruyette & Woods, a Stifel Company | Sandler O’Neill + Partners, L.P. | |
| Cathy Bellina, Equity Trader | Tom Thurston, Principal | |
| 212-887-8996 | 1-212-466-8027 | |
| Wedbush Securities | ||
| Joey Warmenhoven, Managing Director Community Banking Group | ||
| 1-866-662-0351 | ||
Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, 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 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (Amounts in Thousands, except per share data) | ||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||
| INCOME STATEMENT | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | |||||||||||||||||||||
| Interest income | $ | 32,027 | $ | 32,241 | $ | 32,140 | $ | 31,976 | $ | 31,582 | ||||||||||||||||
| Interest expense | 3,065 | 3,117 | 3,687 | 3,488 | 3,809 | |||||||||||||||||||||
| Net interest income | 28,962 | 29,124 | 28,453 | 28,488 | 27,773 | |||||||||||||||||||||
| Provision for loan losses | 1,000 | 1,250 | 1,200 | 3,498 | (1,600 | ) | ||||||||||||||||||||
| Net interest income after provision | 27,962 | 27,874 | 27,253 | 24,990 | 29,373 | |||||||||||||||||||||
| Non-interest income | 3,997 | 4,673 | 2,665 | 1,972 | 1,981 | |||||||||||||||||||||
| Non-interest expense | 19,373 | 19,332 | 19,086 | 20,537 | 18,730 | |||||||||||||||||||||
| Income before income tax | 12,586 | 13,215 | 10,832 | 6,425 | 12,624 | |||||||||||||||||||||
| Income tax | 4,838 | 5,106 | 4,094 | 2,197 | 4,837 | |||||||||||||||||||||
| Net income | $ | 7,748 | $ | 8,109 | $ | 6,738 | $ | 4,228 | $ | 7,787 | ||||||||||||||||
| As of | ||||||||||||||||||||||||||
| BALANCE SHEET | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | |||||||||||||||||||||
| Cash and cash equivalents | $ | 52,181 | $ | 59,347 | $ | 38,304 | $ | 47,552 | $ | 57,612 | ||||||||||||||||
| Investments | 955,907 | 930,398 | 886,522 | 913,781 | 924,826 | |||||||||||||||||||||
| FHLB Stock | 19,845 | 19,845 | 17,250 | 17,250 | 18,765 | |||||||||||||||||||||
| Non-owner occupied real estate loans | 870,461 | 870,538 | 826,728 | 823,621 | 824,506 | |||||||||||||||||||||
| Owner occupied real estate loans | 1,081,807 | 1,072,893 | 1,063,247 | 1,078,652 | 1,095,176 | |||||||||||||||||||||
| Total real estate loans | 1,952,268 | 1,943,431 | 1,889,975 | 1,902,273 | 1,919,682 | |||||||||||||||||||||
| Commercial & industrial loans | 565,933 | 571,045 | 567,365 | 545,332 | 555,708 | |||||||||||||||||||||
| Other loans | 18,829 | 25,228 | 44,630 | 46,902 | 41,133 | |||||||||||||||||||||
| Total loans | 2,537,030 | 2,539,704 | 2,501,970 | 2,494,507 | 2,516,523 | |||||||||||||||||||||
| Loan loss reserve | (37,364 | ) | (34,489 | ) | (35,826 | ) | (35,166 | ) | (33,449 | ) | ||||||||||||||||
| Net loans | 2,499,666 | 2,505,215 | 2,466,144 | 2,459,341 | 2,483,074 | |||||||||||||||||||||
| Other assets | 125,661 | 119,994 | 129,206 | 147,035 | 140,766 | |||||||||||||||||||||
| Total assets | $ | 3,653,260 | $ | 3,634,799 | $ | 3,537,426 | $ | 3,584,959 | $ | 3,625,043 | ||||||||||||||||
| Earning assets | $ | 3,533,904 | $ | 3,510,884 | $ | 3,409,264 | $ | 3,440,426 | $ | 3,479,318 | ||||||||||||||||
| Non-interest bearing deposits | $ | 987,467 | $ | 968,887 | $ | 1,032,914 | $ | 1,047,221 | $ | 1,055,942 | ||||||||||||||||
| Interest bearing deposits | 1,675,487 | 1,746,113 | 1,650,809 | 1,634,773 | 1,589,917 | |||||||||||||||||||||
| Total deposits | 2,662,954 | 2,715,000 | 2,683,723 | 2,681,994 | 2,645,859 | |||||||||||||||||||||
| Funds purchased/borrowed | 640,000 | 562,500 | 482,000 | 543,000 | 615,000 | |||||||||||||||||||||
| Other liabilities | 24,799 | 20,129 | 29,933 | 32,256 | 28,452 | |||||||||||||||||||||
| Total liabilities | 3,327,753 | 3,297,629 | 3,195,656 | 3,257,250 | 3,289,311 | |||||||||||||||||||||
| Stockholders' equity | 325,507 | 337,170 | 341,770 | 327,709 | 335,732 | |||||||||||||||||||||
|
Total liabilities & stockholders' equity |
$ | 3,653,260 | $ | 3,634,799 | $ | 3,537,426 | $ | 3,584,959 | $ | 3,625,043 | ||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||
| PERFORMANCE AND PER SHARE DATA | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | |||||||||||||||||||||
| Return on average equity | 9.69 | % | 9.85 | % | 7.88 | % | 5.01 | % | 9.51 | % | ||||||||||||||||
| Return on average assets | 0.86 | % | 0.89 | % | 0.75 | % | 0.47 | % | 0.87 | % | ||||||||||||||||
| Earning Asset Yields | 3.69 | % | 3.68 | % | 3.68 | % | 3.73 | % | 3.69 | % | ||||||||||||||||
| Cost of Funds | 0.36 | % | 0.36 | % | 0.42 | % | 0.40 | % | 0.45 | % | ||||||||||||||||
| Net interest margin | 3.33 | % | 3.32 | % | 3.26 | % | 3.33 | % | 3.24 | % | ||||||||||||||||
| Efficiency ratio | 58.78 | % | 57.20 | % | 61.50 | % | 67.42 | % | 62.92 | % | ||||||||||||||||
| Book value per common share | $ | 104.05 | $ | 107.78 | $ | 109.25 | $ | 104.76 | $ | 107.12 | ||||||||||||||||
| Basic earnings per common share | $ | 2.48 | $ | 2.59 | $ | 2.15 | $ | 1.35 | $ | 2.49 | ||||||||||||||||
| Diluted earnings per common share | $ | 2.48 | $ | 2.59 | $ | 2.15 | $ | 1.35 | $ | 2.49 | ||||||||||||||||
| As of | ||||||||||||||||||||||||||
| CAPITAL RATIOS | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | |||||||||||||||||||||
| Tier 1 leverage capital | 8.78 | % | 8.90 | % | 9.17 | % | 9.36 | % | 9.35 | % | ||||||||||||||||
| Tier 1 risk-based capital | 10.35 | % | 10.57 | % | 10.88 | % | 10.88 | % | 11.08 | % | ||||||||||||||||
| Total risk-based capital | 11.60 | % | 11.75 | % | 12.11 | % | 12.08 | % | 12.21 | % | ||||||||||||||||
| Common equity tier 1 capital | 10.35 | % | 10.57 | % | 10.88 | % | 10.88 | % | 11.08 | % | ||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||
| March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | ||||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Service charges on deposits | $ | 938 | $ | 981 | $ | 964 | $ | 955 | $ | 1,021 | ||||||||||||||||
| Fees and commissions | 489 | 558 | 611 | 576 | 502 | |||||||||||||||||||||
| Bank owned life insurance | 405 | 387 | 391 | 393 | 353 | |||||||||||||||||||||
| Gain on sale of OREO | 381 | 1,351 | 63 | - | 8 | |||||||||||||||||||||
| Gain (loss) on sale of securities | - | - | 83 | - | (15 | ) | ||||||||||||||||||||
| Gain on sale of loans | 1,750 | 1,258 | 585 | 6 | 63 | |||||||||||||||||||||
| Other non-interest income | 34 | 138 | (32 | ) | 42 | 49 | ||||||||||||||||||||
| Total non-interest income | $ | 3,997 | $ | 4,673 | $ | 2,665 | $ | 1,972 | $ | 1,981 | ||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||
| Salary and employee benefits | 13,234 | 12,954 | 12,954 | 14,692 | 13,339 | |||||||||||||||||||||
| Other expense | 6,139 | 6,378 | 6,132 | 5,845 | 5,391 | |||||||||||||||||||||
| Total non-interest expense | $ | 19,373 | $ | 19,332 | $ | 19,086 | $ | 20,537 | $ | 18,730 | ||||||||||||||||
| COMMUNITY BANK - FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
| ALLL Trend and Statistics (Unaudited) | ||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||
| ALLL ROLLFORWARD | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | |||||||||||||||||||
| Beginning Balance | $ | 36,327 | $ | 37,364 | $ | 34,489 | $ | 35,826 | $ | 35,166 | ||||||||||||||
| Provision for Loan Losses | 1,000 | 1,250 | 1,200 | 3,498 | (1,600 | ) | ||||||||||||||||||
| Charge Offs | (33 | ) | (4,182 | ) | (5 | ) | (4,941 | ) | (295 | ) | ||||||||||||||
| Recoveries | 70 | 57 | 142 | 783 | 178 | |||||||||||||||||||
| Net Charge Offs | 37 | (4,125 | ) | 137 | (4,158 | ) | (117 | ) | ||||||||||||||||
| Ending Balance | $ | 37,364 | $ | 34,489 | $ | 35,826 | $ | 35,166 | $ | 33,449 | ||||||||||||||
| Period End Loan Balance | $ | 2,537,030 | $ | 2,539,704 | $ | 2,501,970 | $ | 2,494,507 | $ | 2,516,523 | ||||||||||||||
| Average Loan Balance for the period | $ | 2,489,434 | $ | 2,541,240 | $ | 2,522,881 | $ | 2,481,496 | $ | 2,510,592 | ||||||||||||||
| ASSET QUALITY INDICATORS | ||||||||||||||||||||||||
| Non-Performing Loans | 11,930 | 6,720 | 6,132 | 16,188 | 14,979 | |||||||||||||||||||
| OREO | 6,479 | 3,848 | 3,093 | 3,000 | - | |||||||||||||||||||
| Total Non-Performing Assets (NPA) | $ | 18,409 | $ | 10,568 | $ | 9,225 | $ | 19,188 | $ | 14,979 | ||||||||||||||
| Performing Loans 30 - 89 days past due | 982 | 466 | 2,129 | 2,708 | 494 | |||||||||||||||||||
| Performing Loans >89 days past due | 1 | 3 | 51 | 2 | - | |||||||||||||||||||
| Total Delinquent Loans | $ | 983 | $ | 469 | $ | 2,180 | $ | 2,710 | $ | 494 | ||||||||||||||
| Delinquent Loans and Leases to Total Loans | 0.04 | % | 0.02 | % | 0.09 | % | 0.11 | % | 0.02 | % | ||||||||||||||
| Net Charge Offs to Avg Loans (Annualized) | 0.01 | % | -0.65 | % | 0.02 | % | -0.67 | % | -0.02 | % | ||||||||||||||
| NPL as a % of Total Loans | 0.47 | % | 0.26 | % | 0.25 | % | 0.65 | % | 0.60 | % | ||||||||||||||
| NPA as a % of Total Loans + OREO | 0.72 | % | 0.42 | % | 0.37 | % | 0.77 | % | 0.60 | % | ||||||||||||||
| ALLL/Non Performing loans | 313.2 | % | 513.2 | % | 584.2 | % | 217.2 | % | 223.3 | % | ||||||||||||||
| ALLL as a % of Total Loans | 1.47 | % | 1.36 | % | 1.43 | % | 1.41 | % | 1.33 | % | ||||||||||||||
| COMMUNITY BANK - FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE SHEET AND YIELDS | |||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
| Quarters Ended | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||||||
| INTEREST EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases | $ | 2,489,434 | $ | 26,420 | 4.27 | % | $ | 2,541,240 | $ | 26,806 | 4.24 | % | $ | 2,522,881 | $ | 27,008 | 4.26 | % | $ | 2,481,496 | $ | 26,229 | 4.20 | % | $ | 2,510,592 | $ | 26,124 | 4.22 | % | |||||||||||||||
| Investment securities | 965,653 | 5,239 | 2.17 | % | 944,005 | 4,986 | 2.11 | % | 911,566 | 4,654 | 2.04 | % | 889,076 | 4,672 | 2.10 | % | 924,218 | 5,031 | 2.18 | % | |||||||||||||||||||||||||
| FHLB Stock/Dividends | 19,325 | 347 | 7.22 | % | 19,845 | 427 | 8.65 | % | 18,576 | 453 | 9.70 | % | 17,250 | 1,049 | 24.19 | % | 18,170 | 394 | 8.79 | % | |||||||||||||||||||||||||
| FFSold/Fed balances/Due from Time | 18,765 | 21 | 0.44 | % | 18,392 | 22 | 0.47 | % | 20,076 | 25 | 0.49 | % | 19,861 | 26 | 0.51 | % | 18,194 | 33 | 0.73 | % | |||||||||||||||||||||||||
| Total Earning Assets | 3,493,177 | 32,027 | 3.69 | % | 3,523,482 | 32,241 | 3.68 | % | 3,473,099 | 32,140 | 3.68 | % | 3,407,683 | 31,976 | 3.73 | % | 3,471,174 | 31,582 | 3.69 | % | |||||||||||||||||||||||||
| Nonearning assets | 124,649 | 122,020 | 123,289 | 136,952 | 145,407 | ||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 3,617,826 | $ | 3,645,502 | $ | 3,596,388 | $ | 3,544,635 | $ | 3,616,581 | |||||||||||||||||||||||||||||||||||
| INTEREST BEARING LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 584,324 | 889 | 0.61 | % | 610,849 | 997 | 0.66 | % | 672,316 | 1,281 | 0.76 | % | 602,108 | 1,213 | 0.80 | % | 568,364 | 1,216 | 0.87 | % | |||||||||||||||||||||||||
| NOW and money market accounts | 999,306 | 741 | 0.30 | % | 1,022,272 | 800 | 0.31 | % | 1,042,277 | 904 | 0.35 | % | 1,012,883 | 879 | 0.35 | % | 971,906 | 834 | 0.35 | % | |||||||||||||||||||||||||
| Savings and other | 37,043 | 4 | 0.04 | % | 36,629 | 5 | 0.05 | % | 40,208 | 5 | 0.05 | % | 43,456 | 5 | 0.05 | % | 43,992 | 6 | 0.06 | % | |||||||||||||||||||||||||
| Total Interest Bearing Deposits | 1,620,673 | 1,634 | 0.41 | % | 1,669,750 | 1,802 | 0.43 | % | 1,754,801 | 2,190 | 0.50 | % | 1,658,447 | 2,097 | 0.50 | % | 1,584,262 | 2,056 | 0.53 | % | |||||||||||||||||||||||||
| FHLB / Other Borrowings | 703,297 | 1,431 | 0.82 | % | 608,522 | 1,315 | 0.87 | % | 474,441 | 1,497 | 1.26 | % | 446,848 | 1,391 | 1.24 | % | 642,984 | 1,753 | 1.11 | % | |||||||||||||||||||||||||
| Total Interest Bearing Liabilities | 2,323,970 | 3,065 | 0.53 | % | 2,278,272 | 3,117 | 0.55 | % | 2,229,242 | 3,687 | 0.66 | % | 2,105,295 | 3,488 | 0.66 | % | 2,227,246 | 3,809 | 0.69 | % | |||||||||||||||||||||||||
| Non-interest bearing deposits | 946,152 | 1,012,964 | 1,000,650 | 1,070,434 | 1,023,236 | ||||||||||||||||||||||||||||||||||||||||
| Accrued interest payable and | |||||||||||||||||||||||||||||||||||||||||||||
| other liabilities | 26,045 | 23,142 | 26,253 | 33,160 | 34,141 | ||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 3,296,167 | 3,314,378 | 3,256,145 | 3,208,889 | 3,284,623 | ||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 321,659 | 331,124 | 340,243 | 335,746 | 331,958 | ||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and | |||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity | $ | 3,617,826 | $ | 3,645,502 | $ | 3,596,388 | $ | 3,544,635 | $ | 3,616,581 | |||||||||||||||||||||||||||||||||||
| Net Interest Spread | 3.16 | % | 3.13 | % | 3.02 | % | 3.07 | % | 3.00 | % | |||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.17 | % | 0.19 | % | 0.24 | % | 0.25 | % | 0.24 | % | |||||||||||||||||||||||||||||||||||
| Net Interest Income and Margin | $ | 28,962 | 3.33 | % | $ | 29,124 | 3.32 | % | $ | 28,453 | 3.26 | % | $ | 28,488 | 3.33 | % | $ | 27,773 | 3.24 | % | |||||||||||||||||||||||||
