Annual Report 2016

President’s Statement

photo of Ash Patel, president and CEO
While we remain committed to providing our clients with technology that is second to none, we will never forget that personalized, proactive, responsive service is the foundation of our success.

Ash Patel

President & CEO

2016 was a year of achievement for Commercial Bank of California. We continued to demonstrate strong performance, registering a substantial gain in profits and growth in our assets, deposits and loans.

Our long-standing focus on high credit quality continues to serve us well. Non-performing assets net of federal guarantees totaled just $1.0 million at December 31, 2016, compared to reserves of $8.9 million.

In 2016, the Bank successfully completed a merger with National Bank of California, which included a comprehensive data processing conversion enabling all CBC offices to operate using the same system. As a result, customers can conduct business at any of the Bank’s six convenient regional offices throughout Southern California.

While we remain committed to providing our clients with technology that is second to none, we will never forget that personalized, proactive, responsive service is the foundation of our success. CBC’s unique combination of financial strength, advanced technology, and personal service is what is making us the bank of choice for businesses and professionals in Southern California.

The present operating environment for financial companies remains challenging, with continued pressure on net interest margins, slow economic growth, and rising expenses. We are not impervious to these challenges, but our conservative philosophy and sound strategies continue to prove their validity. Since our founding, our overriding objective has been to build a quality institution with financial strength and staying power. We remain committed to profitable growth without compromising our lending standards and credit quality.

Looking ahead, we benefit from the flexibility provided by our financial strength and our growing market position. Our talented team of banking professionals continues to compete successfully for new business while providing our customers with top-quality, individualized service. At the same time, we remain keenly focused on the operating environment, and are prepared to act quickly and decisively to meet whatever challenges and opportunities may arise. We believe that by adhering to proven strategies we enhance our success now and in the years ahead.

bulls eye icon

Net Income Increased
year-over-year for third consecutive year

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Total assets, deposits and loans all reached
New Record Highs

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New capital further
Strengthened Robust Capital Position

2016 Financials

Net Income


Gross Revenue

$28.1 M



Net Income Levels

Net income for 2016 increased 78% from 2015 levels

Capital Strength

(Tier 1 Leverage Ratio)

Total Loans (net)

$524 M

Total Capital

$80 M

Statements of Condition (Unaudited)

(000s omitted)

December 31, 2016



Cash and due from banks$48,084
Interest bearing deposits with banks132,749
Cash and cash equivalents180,833
Investment securities73,342
Loans, net523,868
Premises and equipment - net2,326
Other real estate owned460
Accrued interest receivable 
and other assets29,866
Total assets$810,695

Liabilities and Capital:

Non-interest bearing demand deposits$304,988
Interest bearing demand deposits25,564
Savings and money market deposits353,444
Time deposits38,297
Total deposits722,293
Federal Home Loan Bank advances0
Accrued interest payable and other liabilities8,092
Total liabilities730,385
Stated capital78,830
Retained earnings1,815
Accumulated other 
comprehensive income (loss)-335
Total capital80,310
Total liabilities and capital$810,695

Statements of Operations (Unaudited)


(000’s omitted)

Three Months Ended
December 31, 2016

(000’s omitted)

Twelve Months Ended
December 31, 2016

Interest on loans



Interest on deposits with banks



Interest on investment securities




Total interest income





Interest on deposits



Interest on FHLB advances




Total interest expense






Net interest income





Provision for loan losses




Net interest income after provision for loan losses





Other operating income



Salaries and related benefits



Occupancy expenses



Other expenses




Total other operating expenses






Income before provision



for income taxes



Provision for income taxes




Net income





Click to see a table showing the increase in capital ratios over the last two years.

About Commercial Bank of California

banker at desk smiling

Commercial Bank of California is a full-service bank serving the business and professional communities of Los Angeles and Orange counties.

Recognized as a bauer financial "five star bank" for its financial strength and stability,

Commercial Bank of California provides the expertise of a major bank and the personalized service of an independent. More information on Commercial Bank of California is available at

Forward Looking Statements Disclaimer

This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein may constitute forward-looking statements. Although Commercial Bank of California believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from Commercial Bank of California’s expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which Commercial Bank of California conducts its operations.

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2016 TPPP, Excellence in Innovation Retreat

Irvine Headquarters Office
19752 MacArthur Boulevard, Suite 100 Irvine CA 92612
(714) 431-7000

Brea Regional Office
One Pointe Drive, Suite 100
Brea CA 92821
(714) 482-2200

Costa Mesa Regional Office
575 Anton Boulevard, Suite 140 Costa Mesa CA 92626
(714) 437-7500

Fairfax Regional Office
145 South Fairfax Avenue, Suite 100 Los Angeles CA 90036
(323) 655-6001

Santa Monica Regional Office
805 Wilshire Boulevard
Santa Monica CA 90401
(310) 873-5150

Sherman Oaks Regional Office
14724 Ventura Boulevard, Suite 100 Sherman Oaks CA 91403
(818) 386-9234