Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.6 billion and is headquartered in Pasadena with 16 business centers.

David R. Misch, Chief Executive Officer, commented, “We are very pleased with Bank’s 2015 full year performance and its trajectory for future years. It is a testament to the strength of the Bank’s model, its focused strategy and the effort of its fine staff.”

Annual and quarterly earnings both reached record levels in Community Bank’s 70 year history, including restructuring charges.

The following is a recap of annual and quarterly results for 2015 and 2014 including “proforma” earnings, which exclude the impact of the balance sheet restructuring done in June 2015. The restructuring involved the payoff of $153 million in FHLB advances funded by security sales with a one-time net cost of $3.8 million.

 

For the YEARS ended December 31,:

       Proforma       Actual       Actual
      2015       2015       2014
Net income $ 31,086 $ 27,765 $ 25,806
Return on average equity 10.06 % 9.08 % 9.22 %
Return on average assets 0.87 % 0.79 % 0.75 %
Net interest margin 3.20 % 3.30 % 3.20 %
Efficiency ratio         59.26 %         68.07 %         64.49 %
                         
For the QUARTERS ended December 31,: Proforma Actual Actual
      2015       2015       2014
Net income $ 8,441 $ 8,693 $ 7,012
Return on average equity 10.58 % 11.11 % 9.48 %
Return on average assets 0.92 % 0.99 % 0.79 %
Net interest margin 3.11 % 3.32 % 3.27 %
Efficiency ratio         56.48 %         55.69 %         65.73 %
 

Other highlights:

  • Total core deposits increased 2.9% to $2.26 billion as of December 31, 2015 as compared to $2.19 billion as of December 31, 2014. At December 31, 2015, core deposits represented 87% of total deposits. (Note: The Bank defines core deposits as those deposits generated by its branch network including specialty areas. It excludes deposits placed primarily with financial institutions through the Treasury area of the Bank). Non-interest bearing deposits increased 3.9% to $916.7 million as of December 31, 2015 as compared to $882.6 million as of December 31, 2014.
  • Total loans as of December 31, 2015 increased 6.5% to $2.43 billion as compared to $2.28 billion as of December 31, 2014. Further, despite a 21% drop in non-performing loans, no amounts were released or added to the reserve for loan losses, for the year 2015.
  • From a capital perspective, Community Bank’s capital ratios continue to significantly exceed regulatory requirements to be considered “well capitalized” for regulatory purposes. The ratios as of December 31, 2015 were: 1) Tier 1 Leverage of 8.97%; 2) Tier 1 Common Equity of 10.57%; 3) Tier 1 Risk-based Capital of 10.57% and, 4) Total Risk-based Capital of 11.82%.

Declaration of Dividend:

  • The Board of Directors declared a $0.48 per share cash dividend (aggregating approximately $1.5 million) on its outstanding common stock. The dividend was approved at the regularly scheduled Board of Directors meeting held on January 28, 2016. It will be payable on or about March 1, 2016 to common shareholders of record as of February 12, 2016.

Marshall Laitsch, the Bank’s Chairman, commented, “Speaking on behalf of the Cook family and the Board, we are all excited about the direction of the Bank and our 2015 results speak to that.”

Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, 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 (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 international, national and regional economic conditions including, in particular, changes in the California economy; changes in economic policy; movements in interest rates; changes in the management of the Bank; the condition of our loan portfolio including any deterioration in the portfolio, increased loan delinquency rates, etc.; competitive pressures on product pricing and services; failure to maintain effective internal controls; our income and level of profitability; success and timing of business strategies; natural disasters including earthquakes; 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. The Bank does not update any of its forward-looking statements except as required by law.

 
COMMUNITY BANK
Financial Highlights - Income Statement and Ratios (Unaudited)
(Amounts in Thousands, except per share data)
 
    For the quarters ended             For the quarters ended        

December 31,

December 31,

Proforma (A)

    

Actual

Dollar

Percent

Actual

    

Actual

Dollar

Percent

INCOME STATEMENT 2015 2014 Change Change 2015 2014 Change Change
 
Interest income $ 31,602 $ 32,456 $ (854 ) (2.6 %) $ 30,630 $ 32,456 $ (1,826 ) (5.6 %)
Interest expense   4,172   4,426   (254 ) (5.7 %)   2,765   4,426   (1,661 ) (37.5 %)
Net interest income 27,430 28,030 (600 ) (2.1 %) 27,865 28,030 (165 ) (0.6 %)
Provision for loan losses   -   -   -   -     -   -   -   -  
Net interest income after provision 27,430 28,030 (600 ) (2.1 %) 27,865 28,030 (165 ) (0.6 %)
Non-interest income 3,212 4,039 (827 ) (20.5 %) 3,212 4,039 (827 ) (20.5 %)
Non-interest expense   17,307   20,508   (3,201 ) (15.6 %)   17,307   20,508   (3,201 ) (15.6 %)
Income before income tax 13,335 11,561 1,774 15.3 % 13,770 11,561 2,209 19.1 %
Income tax   4,894   4,549   345   7.6 %   5,077   4,549   528   11.6 %
Net income $ 8,441 $ 7,012 $ 1,429   20.4 % $ 8,693 $ 7,012 $ 1,681   24.0 %
 
 
For the years ended For the years ended

December 31,

December 31,

Proforma (A)

Actual

Dollar

Percent

Actual

Actual

Dollar

Percent

INCOME STATEMENT 2015 2014 Change Change 2015 2014 Change Change
 
Interest income $ 127,412 $ 125,093 $ 2,319 1.9 % $ 125,468 $ 125,093 $ 375 0.3 %
Interest expense   16,943   18,994   (2,051 ) (10.8 %)   14,129   18,994   (4,865 ) (25.6 %)
Net interest income 110,469 106,099 4,370 4.1 % 111,339 106,099 5,240 4.9 %
Provision for loan losses   -   -   -   -     -   -   -   -  
Net interest income after provision 110,469 106,099 4,370 4.1 % 111,339 106,099 5,240 4.9 %
Non-interest income 12,887 11,992 895 7.5 % 17,701 11,992 5,709 47.6 %
Non-interest expense   72,810   75,592   (2,782 ) (3.7 %)   84,224   75,592   8,632   11.4 %
Income before income tax 50,546 42,499 8,047 18.9 % 44,816 42,499 2,317 5.5 %
Income tax   19,460   16,693   2,767   16.6 %   17,051   16,693   358   2.1 %
Net income $ 31,086 $ 25,806 $ 5,280   20.5 % $ 27,765 $ 25,806 $ 1,959   7.6 %
 
 
Selected Financial Data and Highlights (Unaudited)

 

   

For the quarters ended

      

For the years ended

December 31,

December 31,

Proforma (A)     Actual     Actual Proforma (A)     Actual     Actual
2015 2015 2014 2015 2015 2014
Return on average equity 10.58 % 11.11 % 9.48 % 10.06 % 9.08 % 9.22 %
Return on average assets 0.92 % 0.99 % 0.79 % 0.87 % 0.79 % 0.75 %
Net interest margin 3.11 % 3.32 % 3.27 % 3.20 % 3.30 % 3.20 %
Efficiency ratio 56.48 % 55.69 % 65.73 % 59.26 % 68.07 % 64.49 %
 
Book value per common share $ 101.34 $ 99.38 $ 94.81
Basic earnings per common share $ 2.70 $ 2.78 $ 2.24 $ 9.94 $ 8.88 $ 8.26
Diluted earnings per common share $ 2.70 $ 2.78 $ 2.24 $ 9.94 $ 8.88 $ 8.25
 
December 31,

Proforma (A,B)

Actual (B)

Actual

Minimum Ratios for a

CAPITAL RATIOS 2015 2015 2014 Well-Capitalized Bank
Tier 1 leverage capital 8.67 % 8.97 % 8.24 % 5.00 %
Tier 1 risk-based capital 10.59 % 10.57 % 10.62 % 8.00 %
Total risk-based capital 11.84 % 11.82 % 11.87 % 10.00 %
Tier 1 common capital 10.59 % 10.57 % 10.62 % 6.50 %
 
As of December 31,
Proforma (A) Actual Actual
OTHER SELECTED DATA 2015 2015 2014
Other real estate owned $ 8,089 $ 8,089 $ 5,055
Nonperforming loans $ 11,979 $ 11,979 $ 15,256
Reserve for loan losses to total loans 1.50 % 1.50 % 1.55 %
Reserve for loan losses to nonperforming loans 303.26 % 303.26 % 231.57 %
Nonperforming loans to total loans 0.49 % 0.49 % 0.67 %
Nonperforming assets to total assets 0.54 % 0.57 % 0.57 %
 

(A)

 

Proforma information is shown to reflect the Bank's performance results excluding the impact of the Balance Sheet restructuring strategy executed in June as described in the June 12, 2015 press release.

(B)

The risk based and common capital ratios reflect the impact of Basel III standards, effective January 1, 2015, which approximates a decrease of 20bps.