WEST SACRAMENTO, Calif.--(BUSINESS WIRE)--CBBC Bancorp (OTCBB: CBBC) (the “Bank”) announced today the results for the quarter ended March 31, 2018, of $1.0 million, or $0.40 per diluted share, compared with net income in the first quarter of 2017 of $0.8 million, or $0.31 per diluted share.
Net interest income increased to $3.2 million for the quarter ended March 31, 2018, compared with $2.9 million in the first quarter of the prior year. The Bank’s first quarter 2018 net interest margin increased 10 basis points over this same time frame. This increase was due primarily to higher volume in loans and loan yields as of March 31, 2018, compared to March 31, 2017. Total loans were $242.4 million and $215.7 million as of March 31, 2018 and March 31, 2017, respectively, representing an increase of $26.7 million, or 12%. Investment totals reflected a decrease of $10.6 million, or 13%, as of March 31, 2018, to $71.1 million, as compared to $81.7 million as of March 31, 2017, as maturing short-term holdings were used to fund loan growth.
The Bank realized an increase in deposits of $10.4 million, or 4%, as of March 31, 2018, compared with March 31, 2017. This deposit increase was primarily in DDA deposits, up $16.8 million, or 18%, and wholesale deposits, up $12.5 million, or 63%, partially offset by decreases in time deposits, down $15.7 million, or 27%, and savings and money market deposits, down $3.2 million, or 5%, as of March 31, 2018, as compared to March 31, 2017.
Noninterest income was $118,000 as of March 31, 2018, as compared to $96,000 for the similar period in the prior year. This increase of $23,000 was primarily due to higher levels of service charge fee income (up $32,000). Noninterest expense as of March 31, 2018, was $1.81 million, up $51,000 from $1.76 million as of March 31, 2017. This was primarily due to an increase of $62,000 in occupancy expense. The Bank’s efficiency ratio remained low at 53% as of March 31, 2018, down from 58% as of March 31, 2017.
Total assets as of March 31, 2018, were $319.8 million, as compared with $306.0 million as of March 31, 2017, an increase of 5%. The Bank’s loan-to-deposit ratio as of March 31, 2018, was 97.1%, up from 90.1% as of March 31, 2017.
The Bank’s capital ratios remain very strong. Total risk-based capital ratio was 14.6% and the equity ratio was 10.3% as of March 31, 2018. These ratios were 13.2% and 10.2%, respectively, as of March 31, 2017. The March 31, 2018, risk-based capital ratio reflects $10.1 million in excess capital (i.e., the amount in reserve above the 10% “Well-Capitalized” level as defined by the regulators).
The Bank’s ALLL was 1.06% as of March 31, 2018, down from 1.18% as of March 31, 2017. This decrease was due to higher loan volume. The Bank recorded a provision for loan losses of $56,000 in the first quarter of 2018; no provision was recognized in the first quarter of 2017. The Bank’s total NPAs (nonaccrual loans + OREO) are $2.0 million as of March 31, 2018; there was a zero balance as of the same period in 2017. The NPAs are composed of one nonaccrual loan relationship at March 31, 2018, that was placed into OREO in April 2018.
About Community Business Bancorp
Community Business Bancorp’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 or download directly from the FDIC website at 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. These forward-looking statements involve known and unknown risks, uncertainties, and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions and continued deterioration of the real estate market, (3) competition in the Bank’s defined market, (4) the Bank’s ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Bank 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
| Consolidated | ||||||||
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Actual Mar. 2018 |
Actual Mar. 2017 |
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| Assets | ||||||||
| Cash and due from banks | $ | 1,248,858 | $ | 1,789,770 | ||||
| Fed funds sold | 1,611,000 | 3,148,000 | ||||||
| Investment securities | 71,091,652 | 81,711,254 | ||||||
| Loans, net of unearned income | 242,408,727 | 215,719,657 | ||||||
| Less: Allowance for loan losses | (2,577,213 | ) | (2,555,695 | ) | ||||
| Net loans | 239,831,514 | 213,163,962 | ||||||
| Premises and equipment, net | 345,698 | 141,438 | ||||||
| Accrued interest receivable | 1,316,092 | 1,350,270 | ||||||
| Other assets | 4,369,151 | 4,728,664 | ||||||
| Total assets | $ | 319,813,965 | $ | 306,033,358 | ||||
| Liabilities & Shareholders' Equity | ||||||||
| Non-interest bearing deposits | 98,003,928 | 84,546,591 | ||||||
| Interest-bearing deposits: | ||||||||
| Core deposits (including CDARs) | 134,087,279 | 145,615,407 | ||||||
| Brokered deposits | 17,621,000 | 9,166,000 | ||||||
| Total deposits | 249,712,207 | 239,327,998 | ||||||
| Accrued expenses/other liabilities | 37,227,827 | 36,235,334 | ||||||
| Total liabilities | 286,940,034 | 275,563,332 | ||||||
| Total shareholders’ equity | 32,873,931 | 30,470,026 | ||||||
| Total liabilities & shareholders' equity | $ | 319,813,965 | $ | 306,033,358 | ||||
| BV per share (net of OCI) | $ | 13.66 | $ | 12.52 | ||||
|
YTD Actual Mar. 2018 |
YTD Actual Mar. 2017 |
|||||||
| Net interest income | $ | 3,221,418 | $ | 2,882,789 | ||||
| Provision for loan losses | 56,000 | 0 | ||||||
| Noninterest income | 118,192 | 95,601 | ||||||
| Noninterest expense | 1,810,475 | 1,759,203 | ||||||
| Income before taxes | 1,473,135 | 1,219,187 | ||||||
| Income taxes | 436,000 | 429,000 | ||||||
| Net income | $ | 1,037,135 | $ | 790,187 | ||||
| Basic EPS | $ | 0.42 | $ | 0.33 | ||||
| Diluted EPS | $ | 0.40 | $ | 0.31 | ||||
| Return on Average Assets (ROAA) | 1.24 | % | 1.06 | % | ||||
| Return on Average Equity (ROAE) | 12.72 | % | 10.71 | % | ||||
| Net interest margin | 4.04 | % | 3.94 | % | ||||
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|
QTD Actual Mar. 2018 |
QTD Actual Mar. 2017 |
|||||||
| Net interest income | $ | 3,221,418 | $ | 2,882,789 | ||||
| Provision for loan losses | 56,000 | 0 | ||||||
| Noninterest income | 118,192 | 95,601 | ||||||
| Noninterest expense | 1,810,475 | 1,759,203 | ||||||
| Income before taxes | 1,473,135 | 1,219,187 | ||||||
| Income taxes | 436,000 | 429,000 | ||||||
| Net income | $ | 1,037,135 | $ | 790,187 | ||||
| Basic EPS | $ | 0.42 | $ | 0.33 | ||||
| Diluted EPS | $ | 0.40 | $ | 0.31 | ||||
| Return on Average Assets (ROAA) | 1.24 | % | 1.06 | % | ||||
| Return on Average Equity (ROAE) | 12.72 | % | 10.71 | % | ||||
| Net interest margin | 4.04 | % | 3.94 | % | ||||
