(Source: Business Wire)
Community Bank, with assets exceeding $2.5 billion, today reported Net
income of $1.3 million for the third quarter of 2009. The Bank founded
in 1945 and headquartered in Pasadena, is a leading Southern California
Business Bank, independently owned and operated for over six decades and
provides Partnership Banking® services through a highly qualified team
of professionals.
David Malone, President and Chief Executive Officer commented that, "I
am pleased to report that Community Bank has been and continues to be
profitable today as well as over the past 14 years, which given the
backdrop of today's turbulent economy, is testament to the overall
strength of our Balance Sheet and the conservative management style that
the Bank has employed. We are fortunate to have the Capital resources to
bolster our reserves for problems assets while executing our strategy of
expanding our footprint in key markets while continuing to bring the
latest technologies and financial products to market."
The Bank's Net Income for the third quarter of 2009 compares to $2.3
million for the third quarter of 2008. For the nine months ended
September 30, 2009, the Bank reported net income of $6.1 million as
compared to $13.4 million for the same period last year.
The Bank's capital ratios remain exceptionally strong with Tier 1
Leverage, Tier 1 Risk Based Capital and Total Risk Based Capital Ratios
of 9.02%, 11.28%, and 12.53%, as of September 30, 2009. All three ratios
exceed the regulatory requirements for a well-capitalized bank which are
5%, 6% and 10%, for Tier 1 Leverage, Tier 1 Risk Based Capital and Total
Risk Based Capital Ratios, respectively.
During this past year, the Bank has strengthened its market share
through both lending and core deposit growth. Total loans as of
September 30, 2009 were $1.8 billion, representing an increase of
approximately $53.4 million or 3.1% over September 30, 2008. Total
deposits as of September 30, 2009 were $1.9 billion, representing an
increase of approximately $259.8 million or 15.4% over September 30,
2008.
While we continue to experience growth in our core business lines, the
movement in market rates over the past year, has significantly reduced
the benefit in net interest income typically achieved with growth in
earning assets. In that regard, net interest income for the third
quarter of 2009 was $19.8 million as compared to $19.7 million for the
third quarter of 2008, representing an increase of $153.0 thousand or
0.8%. Net interest income for the nine months ending September 30, 2009
totaled $57.3 million as compared to $58.3 million for the same period
last year representing a decrease of $973.0 thousand or 1.7%.
The Bank's reserve for loan losses as of September 30, 2009 was $27.1
million or 1.53% of total loans as compared to $22.4 million or 1.30% on
September 30, 2008. The Bank's provision for loan losses for the third
quarter of 2009 was $4.9 million as compared to $2.3 million for the
third quarter of 2008. The provision for loan losses for the nine months
ended September 30, 2009 totaled $11.9 million as compared to $4.3
million for the same period last year.
Community 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 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) ($000s)
For the quarters ended For the nine months ended
September 30, Dollar Percent September 30, Dollar Percent
INCOME STATEMENT 2009 2008 Change Change 2009 2008 Change Change
Interest Income $ 30,561 $ 32,207 $ (1,646 ) (5.1 %) $ 92,363 $ 92,592 $ (229 ) (0.2 %)
Interest Expense 10,721 12,520 (1,799 ) (14.4 %) 35,082 34,338 744 2.2 %
Net interest income 19,840 19,687 153 0.8 % 57,281 58,254 (973 ) (1.7 %)
Provision for loan losses 4,900 2,319 2,581 111.3 % 11,858 4,254 7,604 178.7 %
Net interest income after provision 14,940 17,368 (2,428 ) (14.0 %) 45,423 54,000 (8,577 ) (15.9 %)
Non-interest income 1,867 1,979 (112 ) (5.7 %) 5,582 6,271 (689 ) (11.0 %)
Realized gain on security sales - - - - - 1,133 (1,133 ) -
Loss on Freddie Mac equity security - (3,686 ) 3,686 - - (3,686 ) 3,686 -
Non-interest expense 15,046 12,330 2,716 22.0 % 42,121 36,371 5,750 15.8 %
Income before income tax 1,761 3,331 (1,570 ) (47.1 %) 8,884 21,347 (12,463 ) (58.4 %)
Income tax 426 1,079 (653 ) (60.5 %) 2,792 7,932 (5,140 ) (64.8 %)
Net income $ 1,335 $ 2,252 $ (917 ) (40.7 %) $ 6,092 $ 13,415 $ (7,323 ) (54.6 %)
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Financial Highlights - Balance Sheet (Unaudited) ($000s)
As of September 30, Dollar Percent
BALANCE SHEET 2009 2008 Change Change
Cash and cash equivalents $ 165,864 $ 43,963 $ 121,901 277.3 %
Investments 513,270 476,672 36,598 7.7 %
Loans 1,767,443 1,714,013 53,430 3.1 %
Loan loss reserve (27,088 ) (22,367 ) (4,721 ) 21.1 %
Net loans 1,740,355 1,691,646 48,709 2.9 %
Other Assets 106,627 117,877 (11,250 ) (9.5 %)
Total assets $ 2,526,116 $ 2,330,158 $ 195,958 8.4 %
Earning assets $ 2,421,398 $ 2,191,485 $ 229,913 10.5 %
Non-interest bearing deposits $ 465,235 $ 390,848 $ 74,387 19.0 %
Interest bearing deposits 1,481,607 1,296,232 185,375 14.3 %
Total deposits 1,946,842 1,687,080 259,762 15.4 %
Funds purchased/borrowed 325,440 397,950 (72,510 ) (18.2 %)
Other liabilities 11,238 13,838 (2,600 ) (18.8 %)
Total liabilities 2,283,520 2,098,868 184,652 8.8 %
Stockholders' equity 242,596 231,290 11,306 4.9 %
Total liabilities & stockholders' equity $ 2,526,116 $ 2,330,158 $ 195,958 8.4 %
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Selected Financial Data and Highlights (Unaudited)
For the quarters ended For the nine months ended
September 30, September 30,
2009 2008 2009 2008
Return on average equity 2.20 % 3.88 % 3.43 % 7.83 %
Return on average assets 0.21 % 0.39 % 0.32 % 0.81 %
Net interest margin 3.22 % 3.56 % 3.20 % 3.73 %
Efficiency ratio 69.31 % 56.91 % 67.00 % 56.37 %
Book value per common share $ 80.72 $ 76.56
Basic earnings per common share $ 0.43 $ 0.73 $ 1.98 $ 4.42
Diluted earnings per common share $ 0.43 $ 0.72 $ 1.94 $ 4.25
As of September 30, Minimum Ratios for a
CAPITAL RATIOS 2009 2008 Well-Capitalized Bank
Tier 1 leverage capital 9.02 % 10.01 % 5.00 %
Tier 1 risk-based capital 11.28 % 11.55 % 6.00 %
Total risk-based capital 12.53 % 12.66 % 10.00 %
Tier 1 common capital 11.14 % 11.41 % N/A
As of September 30, Dollar Percent
OTHER SELECTED DATA 2009 2008 Change Change
Other real estate owned $ 11,838 $ 12,263 $ (425 ) (3.5 %)
Nonperforming loans $ 73,596 $ 9,875 $ 63,721 645.3 %
Reserve for loan losses to total loans 1.53 % 1.30 % 17.7 %
Reserve for loan losses to nonperforming loans 36.81 % 226.50 % (83.7 %)
Nonperforming loans to total loans 4.16 % 0.58 % 617.2 %
Nonperforming assets to total assets 3.38 % 0.95 % 255.8 %
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