Community Bank, an independent community bank with 17 offices serving businesses and consumers in southern California, reported record net income of $25.8 million for the year ended December 31, 2014, the largest reported net income in the Company’s sixty-nine year history.
“This is a watershed mark for Community Bank,” said David R. Misch, the Bank’s Chief Executive Officer. “We are proud of having achieved record earnings while investing in the future of the Bank”, continued Misch.
Highlights of the full year results are as follows:
- Net income for the full year was $25.8 million versus $24.9 million the prior year. The record earnings occurred despite fewer gains on sale in 2014 versus 2013 and one-time costs, in excess of $2.0 million, associated with repositioning the Bank for future growth.
- Total loans as of December 31, 2014 increased 11.0% to $2.3 billion as compared to $2.1 billion as of the prior year end. For the first time in the Company’s history, commercial and industrial loans topped $500 million.
- Non-interest bearing deposits increased 20.9% or $152.7 million. Total deposits increased 3.2% to $2.6 billion as of December 31, 2014 as compared to $2.5 billion as of December 31, 2013.
- The Bank’s reserve for loan losses as of December 31, 2014 was $35.3 million or 1.55% of total loans compared to $34.4 million or 1.68% of total loans as of December 31, 2013.
- No provision for loan losses was required in 2014, reflective of continuing improvement in credit quality, as evidenced by the 39.2% decrease in non-performing loans year over year.
- The Bank’s capital ratios continue to exceed the regulatory requirements for a well-capitalized bank with Tier 1 Leverage, Tier 1 Risk-based Capital and Total Risk-based Capital Ratios of 8.24%, 10.62%, and 11.87%, respectively, as of December 31, 2014.
Charles McCluer and Charles Cook, both board members and representatives of the family that owns the Bank, echoed Misch’s comments. “It is amazing to see how the Bank has developed over the years,” commented Mr. Cook. Mr. McCluer added, “It is a testament to the vision Charlie and Howard Cook had many years ago. I am sure they would be very proud.”
Community Bank, with assets exceeding $3.5 billion, was founded in 1945 and is headquartered in Pasadena. The Bank is a regional Southern California Bank with offices in Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, Ventura, and Woodland Hills. For more information, visit the Community Bank Website at www.cbank.com.
This press release may contain certain forward-looking statements, including certain plans, expectations, goals and projections (including statements relating to growth, profitability and future dividends), which are subject to numerous assumptions, risks and uncertainties. You can identify such forward-looking statements by use of the terms “believes”, plus”, “expects”, “anticipates”, “intends”, “hopes”, “should”, “estimates”, or words of similar meaning. 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; the condition of our loan portfolio; competitive pressures on product pricing and services; our income and level of profitability; success and timing of business strategies; changes in consumer confidence; the nature and extent of governmental actions, and legislative reforms; the impact of regulatory and legal proceedings and rapidly changing technology and evolving banking industry standards.
| COMMUNITY BANK | |||||||||||||||||||||||||||
| Financial Highlights - Income Statement and Ratios (Unaudited) | |||||||||||||||||||||||||||
| (Amounts in Thousands) | |||||||||||||||||||||||||||
| For the quarters ended | For the year ended | ||||||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||||||
| Dollar | Percent | Dollar | Percent | ||||||||||||||||||||||||
| INCOME STATEMENT | 2014 | 2013 | Change | Change | 2014 | 2013 | Change | Change | |||||||||||||||||||
| Interest income | $ | 32,456 | $ | 30,341 | $ | 2,115 | 7.0 | % | $ | 125,093 | $ | 119,433 | $ | 5,660 | 4.7 | % | |||||||||||
| Interest expense | 4,426 | 5,583 | (1,157 | ) | (20.7 | %) | 18,994 | 22,180 | (3,186 | ) | (14.4 | %) | |||||||||||||||
| Net interest income | 28,030 | 24,758 | 3,272 | 13.2 | % | 106,099 | 97,253 | 8,846 | 9.1 | % | |||||||||||||||||
| Provision for loan losses | - | - | - | - | - | - | - | - | |||||||||||||||||||
| Net interest income after provision | 28,030 | 24,758 | 3,272 | 13.2 | % | 106,099 | 97,253 | 8,846 | 9.1 | % | |||||||||||||||||
| Non-interest income | 4,039 | 2,319 | 1,720 | 74.2 | % | 11,992 | 11,040 | 952 | 8.6 | % | |||||||||||||||||
| Non-interest expense | 20,508 | 18,252 | 2,256 | 12.4 | % | 75,592 | 67,661 | 7,931 | 11.7 | % | |||||||||||||||||
| Income before income tax | 11,561 | 8,825 | 2,736 | 31.0 | % | 42,499 | 40,632 | 1,867 | 4.6 | % | |||||||||||||||||
| Income tax | 4,549 | 3,357 | 1,192 | 35.5 | % | 16,693 | 15,727 | 966 | 6.1 | % | |||||||||||||||||
| Net income | $ | 7,012 | $ | 5,468 | $ | 1,544 | 28.2 | % | $ | 25,806 | $ | 24,905 | $ | 901 | 3.6 | % | |||||||||||
| Financial Highlights - Balance Sheet (Unaudited) | ||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||
| As of December 31, | Dollar | Percent | ||||||||||||||
| BALANCE SHEET | 2014 | 2013 | Change | Change | ||||||||||||
| Cash and cash equivalents | $ | 46,819 | $ | 46,418 | $ | 401 | 0.9 | % | ||||||||
| Investments | 1,156,983 | 1,146,692 | 10,291 | 0.9 | % | |||||||||||
| Non-owner occupied real estate loans | 713,449 | 636,587 | 76,862 | 12.1 | % | |||||||||||
| Owner occupied real estate loans | 967,821 | 907,323 | 60,498 | 6.7 | % | |||||||||||
| Total real estate loans | 1,681,270 | 1,543,910 | 137,360 | 8.9 | % | |||||||||||
| Commercial & industrial loans | 563,008 | 483,462 | 79,546 | 16.5 | % | |||||||||||
| Other loans | 35,981 | 27,637 | 8,344 | 30.2 | % | |||||||||||
| Total loans | 2,280,259 | 2,055,009 | 225,250 | 11.0 | % | |||||||||||
| Loan loss reserve | (35,329 | ) | (34,444 | ) | (885 | ) | 2.6 | % | ||||||||
| Net loans | 2,244,930 | 2,020,565 | 224,365 | 11.1 | % | |||||||||||
| Other assets | 136,987 | 136,925 | 62 | 0.0 | % | |||||||||||
| Total assets | $ | 3,585,719 | $ | 3,350,600 | $ | 235,119 | 7.0 | % | ||||||||
| Earning assets | $ | 3,458,899 | $ | 3,217,445 | $ | 241,454 | 7.5 | % | ||||||||
| Non-interest bearing deposits | $ | 882,601 | $ | 729,887 | $ | 152,714 | 20.9 | % | ||||||||
| Interest bearing deposits | 1,714,189 | 1,786,375 | (72,186 | ) | (4.0 | %) | ||||||||||
| Total deposits | 2,596,790 | 2,516,262 | 80,528 | 3.2 | % | |||||||||||
| Funds purchased/borrowed | 670,500 | 565,500 | 105,000 | 18.6 | % | |||||||||||
| Other liabilities | 21,832 | 15,360 | 6,472 | 42.1 | % | |||||||||||
| Total liabilities | 3,289,122 | 3,097,122 | 192,000 | 6.2 | % | |||||||||||
| Stockholders' equity | 296,597 | 253,478 | 43,119 | 17.0 | % | |||||||||||
Total liabilities & stockholders' equity | $ | 3,585,719 | $ | 3,350,600 | $ | 235,119 | 7.0 | % | ||||||||
| Selected Financial Data and Highlights (Unaudited) | ||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||
| For the quarters ended | For the year ended | |||||||||||||||||||||||
| As of December 31, | As of December 31, | |||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Return on average equity | 9.48 | % | 8.40 | % | 9.22 | % | 9.71 | % | ||||||||||||||||
| Return on average assets | 0.79 | % | 0.66 | % | 0.75 | % | 0.79 | % | ||||||||||||||||
| Net interest margin | 3.27 | % | 3.09 | % | 3.20 | % | 3.19 | % | ||||||||||||||||
| Efficiency ratio | 65.73 | % | 67.06 | % | 64.49 | % | 63.32 | % | ||||||||||||||||
| Book value per common share | $ | 94.81 | $ | 81.16 | ||||||||||||||||||||
| Basic earnings per common share | $ | 2.24 | $ | 1.75 | $ | 8.26 | $ | 7.97 | ||||||||||||||||
| Diluted earnings per common share | $ | 2.24 | $ | 1.74 | $ | 8.25 | $ | 7.95 | ||||||||||||||||
| As of December 31, | Minimum Ratios for a | |||||||||||||||||||||||
| CAPITAL RATIOS | 2014 | 2013 | Well-Capitalized Bank | |||||||||||||||||||||
| Tier 1 leverage capital | 8.24 | % | 8.01 | % | 5.00 | % | ||||||||||||||||||
| Tier 1 risk-based capital | 10.62 | % | 10.52 | % | 6.00 | % | ||||||||||||||||||
| Total risk-based capital | 11.87 | % | 11.77 | % | 10.00 | % | ||||||||||||||||||
| Tier 1 common capital | 10.62 | % | 10.51 | % | N/A | |||||||||||||||||||
| As of December 31, | Dollar | Percent | ||||||||||||||||||||||
| OTHER SELECTED DATA | 2014 | 2013 | Change | Change | ||||||||||||||||||||
| Other real estate owned | $ | 5,055 | $ | 6,089 | $ | (1,034 | ) | (17.0 | %) | |||||||||||||||
| Nonperforming loans | $ | 15,256 | $ | 25,073 | $ | (9,817 | ) | (39.2 | %) | |||||||||||||||
| Reserve for loan losses to total loans | 1.55 | % | 1.68 | % | (7.7 | %) | ||||||||||||||||||
| Reserve for loan losses to nonperforming loans | 231.57 | % | 137.37 | % | 68.6 | % | ||||||||||||||||||
| Nonperforming loans to total loans | 0.67 | % | 1.22 | % | (45.1 | %) | ||||||||||||||||||
| Nonperforming assets to total assets | 0.57 | % | 0.93 | % | (38.7 | %) | ||||||||||||||||||
