PASADENA, Calif.–Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.6 billion, and headquartered in Pasadena with 17 business centers.
- Net income for 2016 increased $.8 million or 3.0%, over the prior year.
- Net interest income increased during 2016 to $115.0 million from $111.3 million in the prior year. Net interest margin also increased for 2016 to 3.33% from 3.30% during 2015.
- Total loans as of December 31, 2016 increased 2.9%, or $71.1 million, to $2.5 billion compared to $2.4 billion as of December 31, 2015. The increase is net of $35 million in loan sales and $33 million in strategic repositioning of certain credit exposures.
- 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 $1.3 million in the 4th quarter of 2015 to $6 thousand in the same period in 2016.
- Non-interest bearing deposits increased 14.2%, or $130.5 million, to $1,047.2 million compared to $916.8 million as of December 31, 2015.
- Core deposits represented 85.6% of total deposits, as of December 31, 2016, with the non-interest bearing component representing 45.6% of core deposits as compared to 40.6% in the prior year. (Community Bank defines core deposits as those deposits generated by its branch network including specialty areas and excludes deposits placed through the Treasury area.)
- Non-interest expense in the 4th quarter of 2016 includes approximately $1.3 million of stock based compensation costs. Additionally, year to date non-interest expense reflects start-up expenses of hiring several key relationship mangers in our Specialty Deposits Group, along with the hiring of a five-person team in the San Gabriel Valley to expand the C. H Cook Brand.
- The Bank’s reserve for loan losses as of December 31, 2016 was $36.6 million or 1.47% of total loans compared to $36.3 million or 1.50% of total loans as of December 31, 2015. In 2016, a provision for loan losses of $3.9 million was recognized compared with no provision in 2015.
- The Bank’s nonperforming loans totaled $6.8 million as of December 31, 2016 compared to $12.0 as of December 31, 2015.
- Community Bank’s capital ratios continue to exceed “well capitalized” regulatory requirements
- In the 2nd quarter of 2016, we took advantage of the Brexit decline in long term rates to extend and lock in 5 year rates on approximately $300 million of borrowings and wholesale deposits. This strategy enabled the Bank to secure fixed rate funding for its lending activities with the offset being higher borrowing costs.
- The Bank was recently assigned a senior unsecured debt rating and long term deposit rating of BBB+ and subordinated debt rating of BBB by Kroll Bond Rating Agency (KBRA). KBRA has also assigned short-term deposit and short-term debt ratings of K2. The ratings reflect the company’s strong asset quality and conservative credit culture, strong core and risk-based capital levels, consistent and stable earnings and efficiency metrics and extensive executive and board banking experience coupled with emphasis on prudent risk management, according to Kroll.
- The Bank recently added a $700,000 equity investment in Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) Class A stock. This is Community Bank’s second investment in Clearinghouse CDFI which enhances Clearinghouse CDFI’s ability to address unmet credit needs in distressed areas throughout California.
- 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 February 13, 2017 and payable on or about March 1, 2017. This represents the ninth 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 January 26, 2017.
CBank is pleased to announce that Raymond James Inc., DA Davidson and Keefe, Bruyette & Woods are 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:
John T. Cavender, SVP Financial Institutions
Raymond James & Associates
Michael R. Natzic, Senior Vice President
D.A. Davidson & Co.
Keefe Bruyette & Woods, a Stifel Company
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.