April 28, 2017 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 16 business centers.
- 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
- 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: