Loading ...
Global Do...
News & Politics
5
0
Try Now
Log In
Pricing
Community Bank Reports 163% Increase in Second Quarter Earnings to $5.9 Million and the Opening of a New Branch in Woodland Hills August 03, 2010 12:49 PM Eastern Daylight Time PASADENA, Calif.--(EON: Enhanced Online News)--Community Bank, an independent business bank with 15 branches in Los Angeles, San Bernardino and Orange Counties, today reported a 162.6% increase in net income to $5.9 million for the second quarter of 2010 compared to $2.2 million for the similar quarter in 2009. For the six months ended June 30, 2010, the Bank reported net income of $9.5 million compared to $4.8 million for the same period last year. The improved results over last year are due to improved net interest income and decreased provisions for loan losses due to lower loan charge-offs. David Malone, President and Chief Executive Officer, commented, “We are extremely pleased with the increased profitability achieved throughout the first six months of 2010. Our net interest margin expanded and we were able to reduce our provision for possible loan losses. “We sense that the worst in the economy may be behind us and while uncertainty remains about the future including the effect of the new Financial Reform Act, we feel that this is a good time to grow the Bank. During the second quarter we opened a new branch (our fifteenth) in Woodland Hills to better serve our new and existing customers in the San Fernando Valley. Please stop by for a visit and meet some of our dedicated staff and learn more about our commitment to 'Partnership Banking'®. We thank all of our customers and employees for their continuing trust and loyalty to Community Bank. You are what makes our Bank so special.” Net charge-offs decreased to $650 thousand and $1.1 million during the second quarter and first six months of 2010 compared to net charge-offs of $2.3 million and $2.0 million during the second quarter and first six months of 2009. The Bank’s reserve for loan losses as of June 30, 2010 was $35.4 million or 2.04% of total loans compared to $27.2 million or 1.53% of total loans as of June 30, 2009. The provision for loan losses totaled $750 thousand and $3.6 million for the second quarter and first six months of 2010 compared to $4.0 million and $7.0 million for the second quarter and first six months of 2009. Net interest income for the second quarter of 2010 increased 16.9% over the prior year, totaling $22.3 million in 2010 versus $19.0 million in the prior year. During the first six months of 2010, net interest income increased 15.0% over the prior year, totaling $43.0 million in 2010 versus $37.4 million 2009. The improvement during 2010 was due to lower funding costs which increased net interest margins to 3.69% and 3.65% for the second quarter and first six months of 2010 compared to 3.18% for both the second quarter and first six months of 2009. In this competitive environment, total assets, loans and deposits remained approximately the same as last year. Community Bank’s capital ratios continue to exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk- based Capital and Total Risk-based Capital Ratios of 8.78%, 11.22%, and 12.47%, respectively, as of June 30, 2010. Regulatory requirements for a “well-capitalized bank” are 5%, 6%, and 10%, respectively. Community Bank, with assets exceeding $2.5 billion, was founded in 1945 and is headquartered in Pasadena. The Bank is a regional Southern California Bank with offices in Anaheim, Burbank, Commerce, Corona, Fontana, Glendale, Irvine, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, Woodland Hills and Yucaipa. 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, which are subject to numerous assumptions, risks and uncertainties. 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; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; 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 six months ended June 30, June 30, Dollar Percent Dollar Percent INCOME STATEMENT 2010 2009 Change Change 2010 2009 Change Change Interest Income $ 30,447 $ 30,768 $ (321 ) (1.0 %) $ 59,824 $ 61,802 $ (1,978) (3.2 %) Interest Expense 8,185 11,719 (3,534) (30.2 %) 16,775 24,361 (7,586) (31.1 %) Net interest income 22,262 19,049 3,213 16.9 % 43,049 37,441 5,608 15.0 % Provision for loan losses 750 4,000 (3,250) (81.3 %) 3,575 6,958 (3,383) (48.6 %) Net interest income after provision 21,512 15,049 6,463 42.9 % 39,474 30,483 8,991 29.5 % Non-interest income 2,326 1,911 415 21.7 % 4,228 3,715 513 13.8 % Non-interest expense 14,369 13,643 726 5.3 % 28,630 27,075 1,555 5.7 % Income before income tax 9,469 3,317 6,152 185.5 % 15,072 7,123 7,949 111.6% Income tax 3,608 1,085 2,523 232.5 % 5,588 2,366 3,222 136.2% Net income $ 5,861 $ 2,232 $3,629 162.6 % $ 9,484 $ 4,757 $ 4,727 99.4 % Financial Highlights - Balance Sheet (Unaudited) (Amounts in Thousands) As of June 30, Dollar Percent BALANCE SHEET 2010 2009 Change Change Cash and cash equivalents $133,302 $219,693 $ (86,391 ) (39.3%) Investments 575,027 468,694 106,333 22.7 % Loans 1,741,349 1,784,318 (42,969 ) (2.4 %) Loan loss reserve (35,447 ) (27,232 ) (8,215 ) 30.2 % Net loans 1,705,902 1,757,086 (51,184 ) (2.9 %) Other Assets 123,596 109,636 13,960 12.7 % Total assets $2,537,827 $2,555,109 $ (17,282 ) (0.7 %) Earning assets $2,420,938 $2,443,009 $ (22,071 ) (0.9 %) Non-interest bearing deposits $498,845 $458,096 $40,749 8.9 % Interest bearing deposits 1,470,429 1,513,209 (42,780 ) (2.8 %) Total deposits 1,969,274 1,971,305 (2,031 ) (0.1 %) Funds purchased/borrowed 317,185 333,792 (16,607 ) (5.0 %) Other liabilities 13,725 12,716 1,009 7.9 % Total liabilities 2,300,184 2,317,813 (17,629 ) (0.8 %) Stockholders' equity 237,643 237,296 347 0.1 % Total liabilities & stockholders' equity $2,537,827 $2,555,109 $ (17,282 ) (0.7 %) Selected Financial Data and Highlights (Unaudited) (Amounts in Thousands) For the quarters ended For the six months ended June 30, June 30, 2010 2009 2010 2009 Return on average equity 10.08 % 3.76 % 8.30 % 4.07 % Return on average assets 0.92 % 0.36 % 0.77 % 0.39 % Contacts Community Bank David Malone, (626) 568-2001 Permalink: http://eon.businesswire.com/news/eon/20100803006760/en Net interest margin 3.69 % 3.18 % 3.65 % 3.18 % Efficiency ratio 58.44 % 65.09 % 60.56 % 65.79 % Book value per common share $ 79.05 $ 78.94 Basic earnings per common share $ 1.95 $ 0.73 $ 3.15 $ 1.55 Diluted earnings per common share $ 1.87 $ 0.71 $ 3.03 $ 1.52 As of June 30, Minimum Ratios for a CAPITAL RATIOS 2010 2009 Well-Capitalized Bank Tier 1 leverage capital 8.78 % 9.11 % 5.00 % Tier 1 risk-based capital 11.22 % 11.15 % 6.00 % Total risk-based capital 12.47 % 12.40 % 10.00% Tier 1 common capital 11.07 % 11.01 % N/A As of June 30, Dollar Percent OTHER SELECTED DATA 2010 2009 Change Change Other real estate owned $ 14,410 $ 12,063 $2,347 19.5 % Nonperforming loans $ 72,389 $ 43,362 $29,027 66.9 % Reserve for loan losses to total loans 2.04 % 1.53 % 33.3 % Reserve for loan losses to nonperforming loans 48.97 % 62.80 % (22.0 %) Nonperforming loans to total loans 4.16 % 2.43 % 71.2 % Nonperforming assets to total assets 3.42 % 2.17 % 57.6 %
