PASADENA, Calif.--(BUSINESS WIRE)--Community Bank, an independent business bank with 14 branches in Los Angeles, San Bernardino and Orange Counties, today reported a 284% increase in net income to $5.1 million for the fourth quarter of 2010 compared to $1.3 million for the similar quarter in 2009. For the year ended December 31, 2010, the Bank reported net income of $20.7 million compared to $7.4 million for the same period last year.
Net interest income for the fourth quarter of 2010 increased 10.1% over the prior year, totaling $22.8 million in 2010 versus $20.8 million in the prior year. During the year ended December 31, 2010, net interest income increased 13.8% over the prior year, totaling $88.8 million in 2010 versus $78.0 million 2009. The improvement during 2010 was due to lower funding costs which increased net interest margins to 3.68% and 3.66% for the fourth quarter and year ended December 31, 2010 respectively, compared to 3.43% and 3.26% for the fourth quarter and year ended December 31, 2009.
Net charge-offs decreased to $16 thousand during the fourth quarter of 2010 and $1.8 million for the year ended December 31, 2010 compared to net charge-offs of $3.0 million during the fourth quarter of 2009 and $10.1 million for the year ended December 31, 2009. The Bank’s reserve for loan losses as of December 31, 2010 was $39.7 million or 2.25% of total loans compared to $33.0 million or 1.88% of total loans as of December 31, 2009. The provision for loan losses totaled $2.4 million and $8.5 million for the fourth quarter and year ended December 31, 2010, respectively, compared to $8.9 million and $20.8 million for the fourth quarter and year ended December 31, 2009.
At year end 2010, total loans and deposits remained approximately the same as last year at $1.8 billion and $1.9 billion, respectively. 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 8.80%, 11.25%, and 12.51%, respectively, as of December 31, 2010. Regulatory requirements for a “well-capitalized bank” are 5%, 6%, and 10%, respectively.
David Malone, President and Chief Executive Officer, commented, “2010 proved to be a year when the banking industry returned to a sense of normalcy. Community Bank has always conducted its business in the most conservative fashion and although having its share of troubled loans, it did not suffer the severe problems experienced by many other financial institutions. We have a strong liquidity position with capital to employ. During the past year we added a new business banking office in the San Fernando Valley and are actively looking for new locations.
“Over our 65 year history we have been blessed with outstanding clients who, similar to us, operate their businesses prudently and have been able to meet the challenge of a poor economy. The Bank had a very good year in 2010 and we expect 2011 to be even better as the economy continues to improve. We thank all of our wonderful clients for choosing Community Bank. We also thank our dedicated employees for their hard work and loyalty. Community Bank is committed to true Partnership Banking®.”
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 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, 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.
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COMMUNITY BANK |
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| Financial Highlights - Income Statement and Ratios (Unaudited) | ||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||
| For the quarters ended | For the years ended | |||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||
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Dollar |
Percent | Dollar | Percent | |||||||||||||||||||||||||||
| INCOME STATEMENT | 2010 | 2009 |
Change |
Change | 2010 | 2009 | Change | Change | ||||||||||||||||||||||
| Interest Income | $ | 29,166 | $ | 30,372 | $ | (1,206 | ) | (4.0 | %) | $ | 118,726 | $ | 122,735 | $ | (4,009 | ) | (3.3 | %) | ||||||||||||
| Interest Expense | 6,324 | 9,618 | (3,294 | ) | (34.2 | %) | 29,961 | 44,700 | (14,739 | ) | (33.0 | %) | ||||||||||||||||||
| Net interest income | 22,842 | 20,754 | 2,088 | 10.1 | % | 88,765 | 78,035 | 10,730 | 13.8 | % | ||||||||||||||||||||
| Provision for loan losses | 2,400 | 8,925 | (6,525 | ) | (73.1 | %) | 8,450 | 20,783 | (12,333 | ) | (59.3 | %) | ||||||||||||||||||
| Net interest income after provision | 20,442 | 11,829 | 8,613 | 72.8 | % | 80,315 | 57,252 | 23,063 | 40.3 | % | ||||||||||||||||||||
| Non-interest income | 2,243 | 2,709 | (466 | ) | (17.2 | %) | 10,644 | 8,291 | 2,353 | 28.4 | % | |||||||||||||||||||
| Non-interest expense | 14,484 | 12,805 | 1,679 | 13.1 | % | 57,833 | 54,926 | 2,907 | 5.3 | % | ||||||||||||||||||||
| Income before income tax | 8,201 | 1,733 | 6,468 | 373.2 | % | 33,126 | 10,617 | 22,509 | 212.0 | % | ||||||||||||||||||||
| Income tax | 3,080 | 400 | 2,680 | 670.0 | % | 12,457 | 3,192 | 9,265 | 290.3 | % | ||||||||||||||||||||
| Net income | $ | 5,121 | $ | 1,333 | $ | 3,788 | 284.2 | % | $ | 20,669 | $ | 7,425 | $ | 13,244 | 178.4 | % | ||||||||||||||
| Financial Highlights - Balance Sheet (Unaudited) | ||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||
| As of December 31, | Dollar | Percent | ||||||||||||||||||||||||||||
| BALANCE SHEET | 2010 | 2009 | Change | Change | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 24,019 | $ | 104,169 | $ | (80,150 | ) | (76.9 | %) | |||||||||||||||||||||
| Investments | 639,168 | 483,683 | 155,485 | 32.1 | % | |||||||||||||||||||||||||
| Loans | 1,761,703 | 1,756,949 | 4,754 | 0.3 | % | |||||||||||||||||||||||||
| Loan loss reserve | (39,691 | ) | (32,999 | ) | (6,692 | ) | 20.3 | % | ||||||||||||||||||||||
| Net loans | 1,722,012 | 1,723,950 | (1,938 | ) | (0.1 | %) | ||||||||||||||||||||||||
| Other Assets | 117,968 | 127,952 | (9,984 | ) | (7.8 | %) | ||||||||||||||||||||||||
| Total assets | $ | 2,503,167 | $ | 2,439,754 | $ | 63,413 | 2.6 | % | ||||||||||||||||||||||
| Earning assets | $ | 2,411,632 | $ | 2,325,227 | $ | 86,405 | 3.7 | % | ||||||||||||||||||||||
| Non-interest bearing deposits | $ | 510,552 | $ | 469,500 | $ | 41,052 | 8.7 | % | ||||||||||||||||||||||
| Interest bearing deposits | 1,388,893 | 1,408,116 | (19,223 | ) | (1.4 | %) | ||||||||||||||||||||||||
| Total deposits | 1,899,445 | 1,877,616 | 21,829 | 1.2 | % | |||||||||||||||||||||||||
| Funds purchased/borrowed | 344,344 | 325,380 | 18,964 | 5.8 | % | |||||||||||||||||||||||||
| Other liabilities | 25,661 | 13,574 | 12,087 | 89.0 | % | |||||||||||||||||||||||||
| Total liabilities | 2,269,450 | 2,216,570 | 52,880 | 2.4 | % | |||||||||||||||||||||||||
| Stockholders' equity | 233,717 | 223,184 | 10,533 | 4.7 | % | |||||||||||||||||||||||||
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Total liabilities & stockholders' equity |
$ | 2,503,167 | $ | 2,439,754 | $ | 63,413 | 2.6 | % | ||||||||||||||||||||||
| Selected Financial Data and Highlights (Unaudited) | ||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||
| For the quarters ended | For the years ended | |||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||
| Return on average equity | 8.52 | % | 2.18 | % | 8.78 | % | 3.11 | % | ||||||||||||||||||||||
| Return on average assets | 0.79 | % | 0.21 | % | 0.81 | % | 0.30 | % | ||||||||||||||||||||||
| Net interest margin | 3.68 | % | 3.43 | % | 3.66 | % | 3.26 | % | ||||||||||||||||||||||
| Efficiency ratio | 57.55 | % | 55.15 | % | 58.13 | % | 63.81 | % | ||||||||||||||||||||||
| Book value per common share | $ | 77.71 | $ | 74.18 | ||||||||||||||||||||||||||
| Basic earnings per common share | $ | 1.70 | $ | 0.43 | $ | 6.87 | $ | 2.41 | ||||||||||||||||||||||
| Diluted earnings per common share | $ | 1.63 | $ | 0.43 | $ | 6.60 | $ | 2.37 | ||||||||||||||||||||||
| As of December 31, | Minimum Ratios for a | |||||||||||||||||||||||||||||
| CAPITAL RATIOS | 2010 | 2009 | Well-Capitalized Bank | |||||||||||||||||||||||||||
| Tier 1 leverage capital | 8.80 | % | 8.54 | % | 5.00 | % | ||||||||||||||||||||||||
| Tier 1 risk-based capital | 11.25 | % | 10.53 | % | 6.00 | % | ||||||||||||||||||||||||
| Total risk-based capital | 12.51 | % | 11.79 | % | 10.00 | % | ||||||||||||||||||||||||
| Tier 1 common capital | 11.11 | % | 10.39 | % | N/A | |||||||||||||||||||||||||
| As of December 31, | Dollar | Percent | ||||||||||||||||||||||||||||
| OTHER SELECTED DATA | 2010 | 2009 | Change | Change | ||||||||||||||||||||||||||
| Other real estate owned | $ | 3,194 | $ | 12,838 | $ | (9,644 | ) | (75.1 | %) | |||||||||||||||||||||
| Nonperforming loans | $ | 79,004 | $ | 81,724 | $ | (2,720 | ) | (3.3 | %) | |||||||||||||||||||||
| Reserve for loan losses to total loans | 2.25 | % | 1.88 | % | 19.7 | % | ||||||||||||||||||||||||
| Reserve for loan losses to nonperforming loans | 50.24 | % | 40.38 | % | 24.4 | % | ||||||||||||||||||||||||
| Nonperforming loans to total loans | 4.48 | % | 4.65 | % | (3.7 | %) | ||||||||||||||||||||||||
| Nonperforming assets to total assets | 3.28 | % | 3.88 | % | (15.5 | %) | ||||||||||||||||||||||||