The Company’s Board of Directors declared a quarterly cash dividend of
“During the fourth quarter we continued pivoting away from extraordinary pandemic-related activities and government initiatives, and shifted towards a more normalized banking structure,” stated
“The highly successful PPP lending program sponsored by the SBA has helped thousands of businesses in our core market,” Keller continued. “We were active participants in the PPP, resulting in over
As of
The Company’s net interest margin was 3.69% in the fourth quarter of 2021, a 30 basis point improvement compared to 3.39% in the preceding quarter, and a 1 basis point improvement compared to 3.68% in the fourth quarter a year ago. “PPP loan fees and interest on net interest income had a positive impact on net interest margin for the fourth quarter of 2021. Also helping the net interest margin for the current quarter was our lower cost of funds. However, liquidity levels have been higher than usual throughout the year, due to larger deposit balances and the resulting effect on the mix of our earning assets, together with higher excess reserves at the Fed continuing to put pressure on our net interest margin,” said Keller. PPP loan fees and interest added 50 basis points to the net interest margin for the fourth quarter of 2021, compared to adding 40 basis points in the preceding quarter. Excess reserves had a negative impact on the net interest margin for the fourth quarter of 2021, contracting the net interest margin by 75 basis points, compared to a 92 basis point decrease for the third quarter of 2021.
“During the fourth quarter of 2021, we booked a
Fourth Quarter 2021 Financial Highlights (at or for the period ended
- Net income increased 10.8% to
$1.75 million in the fourth quarter of 2021, compared to$1.58 million in the fourth quarter a year ago, and increased 11.8% compared to$1.57 million in the preceding quarter. Earnings per share was$0.20 in the fourth quarter of 2021, compared to$0.18 in the prior quarter, and$0.18 in the fourth quarter a year ago. - Total assets increased
$81.6 million , or 12.9%, to$715.6 million atDecember 31, 2021 , compared to$634.0 million a year earlier, but decreased$34.2 million , or 4.6%, compared to$749.7 million three months earlier. Average assets for the quarter totaled$741.2 million , an increase of$84.5 million , or 12.9%, from the fourth quarter a year ago and a decrease of$17.1 million , or 2.3%, compared with the prior quarter. - Net interest income, before the provision for loan losses, increased 13.6% to
$6.66 million in the fourth quarter of 2021, compared to$5.86 million in the fourth quarter a year ago. The provision for loan losses was$200,000 in the fourth quarter of 2021, compared to$350,000 in the fourth quarter of 2020. - Non-interest income was
$226,000 during the fourth quarter of 2021, compared to$144,000 for the fourth quarter a year ago, and$173,000 in the third quarter of 2021. - Operating revenue (net interest income before the provision for loan losses plus non-interest income) increased 7.2% to
$6.88 million in the fourth quarter of 2021, compared to$6.42 million in the third quarter of 2021, and is up 14.7% compared to$6.00 million in the fourth quarter of 2020. - Net interest margin for the fourth quarter improved to 3.69%, compared to 3.39% in the preceding quarter and 3.68% in the fourth quarter a year ago. The expansion in net interest margin in the fourth quarter of 2021 as compared to the prior quarter was largely due to the increase in recognition of PPP origination fee income due to
$24.9 million in PPP loan forgiveness. Excluding all PPP-related income and balances, the net interest margin would have been 3.35% in the fourth quarter of 2021, and 3.24% in the third quarter of 2021. The average interest yield on non-PPP loans in the fourth quarter was 4.56%, compared to 4.65% in the prior quarter. The average cost of funds in the fourth quarter was 0.23%, a 2 basis points decline compared to the prior quarter and a 20 basis points decline compared to the prior year. - Net loans increased
$50.3 million , or 10.3%, to$538.8 million atDecember 31, 2021 , compared to$488.5 million a year ago, and increased$20.1 million , or 3.9%, compared to$518.7 million three months earlier. AtDecember 31, 2021 , net non-PPP loans totaled$500.2 million , a 9.9% increase compared to$455.1 million atSeptember 30, 2021 , and an 18.4% increase compared to$422.5 million atDecember 31, 2020 . In addition, atDecember 31, 2021 the unused portion of credit commitments totaled$139.4 million compared to$117.2 million in the prior quarter and$98.8 million a year ago. - Total deposits increased
$79.2 million , or 14.9%, to$610.2 million atDecember 31, 2021 , compared to$531.3 million a year ago and decreased$44.2 million , or 6.8%, compared to$654.4 million three months earlier. The decrease compared to the prior quarter end was partially due to year end withdrawals from a few large nonprofit deposit accounts, as well as seasonal reductions inTitle Company deposits. Noninterest bearing demand deposit accounts increased 15.3% compared to a year ago and represented 38.9% of total deposits. Savings, NOW and money market accounts increased 40.6% compared to a year ago and represented 48.4% of total deposits. CDs decreased 32.8% when compared to a year ago and comprised 12.7% of the total deposit portfolio, atDecember 31, 2021 . For the quarter, the overall Cost of Deposits was 12 basis points (“bp”) compared to 13 bp in the prior quarter, and 31 bp in the fourth quarter a year ago. - Asset quality remained exemplary with
$27,000 of nonperforming loans atDecember 31, 2021 , representing 0.005% of total loans. This compares to nonperforming loans at 0.01% of total loans atSeptember 30, 2021 , and 0.08% atDecember 31, 2020 . - The allowance for loan losses increased to
$6.28 million , or 1.17% of total loans atDecember 31, 2021 , compared to$5.70 million , or 1.17% of total loans atDecember 31, 2020 . The allowance, as a percentage of non-guaranteed loans, was 1.28% atDecember 31, 2021 , compared to 1.40% a year ago. The allowance for loan losses reflects management’s assessment of the current economic environment. - Total equity increased 10.2% to
$68.0 million as ofDecember 31, 2021 , compared to a year ago. The Bank’s capital levels remained well aboveFDIC “Well Capitalized” standards as ofDecember 31, 2021 , with a Tier 1 Common Equity capital ratio of 12.28%; Total risk-based capital ratio of 13.45%; and Tier 1 leverage ratio of 9.15%. - Book value per common share totaled
$7.67 as ofDecember 31, 2021 , an increase of 9.1% from a year ago. - Declared a quarterly cash dividend of
$0.04 per share. The dividend is payableMarch 4, 2022 to shareholders of record onFebruary 23, 2022 .
On
Under the program,
“We are very pleased to be one of only 5 California banks, and 186 financial institutions of all types nationwide to have been approved by
For additional information on the ECIP Program please visit
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/emergency-capital-investment-program
For additional information on the CDFI Rapid Response Program please visit
https://www.cdfifund.gov/programs-training/programs/rrp
About
Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in
FINANCIAL TABLES TO FOLLOW:
UNAUDITED SUMMARY FINANCIAL STATEMENTS | ||||||||||||||||||
(Dollars in thousands, except earnings per share) | ||||||||||||||||||
INCOME STATEMENT | Three Months Ended | |||||||||||||||||
2021 | 2021 | Qtr over Qtr | 2020 | Qtr over Yr Ago Qtr | ||||||||||||||
% Change | % Change | |||||||||||||||||
Interest income | $ | 7,051 | $ | 6,677 | 5.6 | % | $ | 6,498 | 8.5 | % | ||||||||
Interest expense | 395 | 432 | -8.6 | % | 641 | -38.4 | % | |||||||||||
Net interest income before provision | 6,656 | 6,245 | 6.6 | % | 5,857 | 13.6 | % | |||||||||||
Provision for Loan Losses | 200 | 150 | 33.3 | % | 350 | -42.9 | % | |||||||||||
Net interest income after provision | 6,456 | 6,095 | 5.9 | % | 5,507 | 17.2 | % | |||||||||||
Non-interest income | 226 | 173 | 30.6 | % | 144 | 56.9 | % | |||||||||||
Non-interest expense | 4,192 | 4,045 | 3.6 | % | 3,381 | 24.0 | % | |||||||||||
Income before provision for income taxes | 2,490 | 2,223 | 12.0 | % | 2,270 | 9.7 | % | |||||||||||
Provision for income taxes | 736 | 654 | 12.5 | % | 687 | 7.1 | % | |||||||||||
Net income | $ | 1,754 | $ | 1,569 | 11.8 | % | $ | 1,583 | 10.8 | % | ||||||||
Basic earnings per common share | $ | 0.20 | $ | 0.18 | 11.0 | % | $ | 0.18 | 9.5 | % | ||||||||
Weighted average common shares outstanding | 8,871,052 | 8,811,945 | 8,765,089 | |||||||||||||||
Return on average assets | 0.94 | % | 0.82 | % | 0.96 | % | ||||||||||||
Return on average common equity | 10.33 | % | 9.39 | % | 10.31 | % | ||||||||||||
UNAUDITED SUMMARY FINANCIAL STATEMENTS | ||||||||||||||||||||
(Dollars in thousands, except book value per share) | ||||||||||||||||||||
BALANCE SHEET | At Period End | |||||||||||||||||||
2021 | 2021 | Qtr over Qtr | 2020 | Year over Year | ||||||||||||||||
ASSETS | % Change | % Change | ||||||||||||||||||
Total cash and investments | $ | 164,326 | $ | 217,429 | -24.4 | % | $ | 123,254 | 33.3 | % | ||||||||||
Loans, net of unearned income | 538,831 | 518,702 | 3.9 | % | 488,534 | 10.3 | % | |||||||||||||
Loan loss reserve | (6,281 | ) | (6,081 | ) | 3.3 | % | (5,698 | ) | 10.2 | % | ||||||||||
Other assets | 18,678 | 19,669 | -5.0 | % | 27,879 | -33.0 | % | |||||||||||||
Total Assets | $ | 715,554 | $ | 749,719 | -4.6 | % | 633,969 | 12.9 | % | |||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||||||
Non-interest bearing demand deposits | 237,541 | 255,813 | -7.1 | % | 206,032 | 15.3 | % | |||||||||||||
Interest bearing deposits | 372,693 | 398,632 | -6.5 | % | 325,219 | 14.6 | % | |||||||||||||
Total deposits | 610,234 | 654,445 | -6.8 | % | 531,251 | 14.9 | % | |||||||||||||
Total borrowings and other liabilities | 37,287 | 28,422 | 31.2 | % | 40,971 | -9.0 | % | |||||||||||||
Total Liabilities | $ | 647,521 | $ | 682,867 | -5.2 | % | $ | 572,222 | 13.2 | % | ||||||||||
Total equity | 68,033 | 66,852 | 1.8 | % | 61,747 | 10.2 | % | |||||||||||||
Total Liabilities and Total Equity | $ | 715,554 | $ | 749,719 | -4.6 | % | $ | 633,969 | 12.9 | % | ||||||||||
Book value per common share | $ | 7.67 | $ | 7.54 | 1.8 | % | $ | 7.03 | 9.1 | % | ||||||||||
SELECTED FINANCIAL DATA | |||||||||
(In thousands of dollars, except for ratios and per share amounts) | |||||||||
Unaudited | |||||||||
At or for the Three Months Ended | |||||||||
2021 | 2021 | 2020 | |||||||
ASSET QUALITY RATIOS | |||||||||
Net (charge-offs) recoveries | - | - | 1 | ||||||
Net (charge-offs) recoveries to average loans | 0.0000 | % | 0.0000 | % | 0.0002 | % | |||
Non-performing loans as a % of loans | 0.00 | % | 0.01 | % | 0.09 | % | |||
Non-performing assets as a % of assets | 0.00 | % | 0.00 | % | 0.07 | % | |||
Allowance for loan losses as a % of total loans | 1.17 | % | 1.17 | % | 1.17 | % | |||
Allowance for loan losses as a % of total unguaranteed loans | 1.28 | % | 1.37 | % | 1.40 | % | |||
Allowance for loan losses as a % of non-performing loans | 23402 | % | 19508 | % | 1331 | % | |||
AVERAGE BALANCE SHEET DATA | |||||||||
Average assets | 741,266 | 758,371 | 656,723 | ||||||
Average total loans | 521,103 | 520,637 | 478,107 | ||||||
Average total deposits | 644,639 | 660,673 | 552,409 | ||||||
Average shareholders' equity | 67,395 | 66,315 | 60,903 | ||||||
FINANCIAL RATIOSSTATISTICS | |||||||||
Return on average assets | 0.94 | % | 0.82 | % | 0.96 | % | |||
Return on average equity | 10.33 | % | 9.39 | % | 10.31 | % | |||
Net interest margin | 3.69 | % | 3.39 | % | 3.68 | % | |||
Efficiency ratio | 60.91 | % | 63.03 | % | 56.34 | % | |||
Contacts:
510-433-5404
wkeller@BankCBB.com
Source:
2022 GlobeNewswire, Inc., source