IRVINE, CALIF. (May 10, 2019) – Commercial Bank of California (“CBC”), a BauerFinancial Five-Star Superior Bank, today reported net income of $1,396,000 for the first quarter of 2019. Reflecting growth in earning assets and increases in prevailing interest rates, net interest income for the quarter was $9.4 million, a solid increase from the $8.6 million recorded in the first quarter of 2018.
At March 31, 2019, the Bank’s total assets were $965.5 million, compared to $816.1 million at this point a year ago. Net loans rose from $605.6 million at March 31, 2018 to $691.7 million in 2019. . Deposits totaled $857.0 million at March 31, 2019, up sharply from a $684.0 million total at March 31, 2018. Total capital at March 31, 2019 was $98.4 million, a solid increase from $90.8 million on the same date in 2018.
The Bank’s capital ratios continue to be well above all regulatory standards for well-capitalized institutions, with Tier 1 Leverage, Tier 1 Risk-based Capital, and Total Risk-based Capital Ratios of 9.69%, 11.99%, and 13.24%, respectively, as of March 31, 2019.
Ash Patel, President and Chief Executive Officer, commented, “Overall, we are pleased with Commercial Bank of California’s results for the initial quarter of the new year. Our strong growth in assets, loans, and deposits was particularly gratifying. That balance sheet growth, combined with today’s generally higher interest rates compared to a year ago, resulted in a substantial increase in our net interest income.
“The growth in our balance sheet brings with it additional challenges, however. CBC will likely soon exceed $1 billion in total assets on a sustained basis, which is an important milestone in the Bank’s progress. But when banks cross the billion-dollar threshold, the expectations of banking regulators increase. In anticipation of this, we have been making prudent investments by adding highly-capable individuals to our management team. Our latest additions are Chief Financial Officer Kitty Payne and Chief Information Security Officer Scott Schneider, both of whom bring distinguished histories of achievement to their new positions at CBC. Kitty and Scott join Chief Risk Officer Neel Pinge, and Market Presidents Claudia Bodan, Mike Helmuth, and Shahzad Khan, in further strengthening our already-strong management team. Adding officers of this caliber comes at a cost, which is evident in our higher salary expense in the first quarter. But by making these investments now, CBC has built a firm foundation to support our growth in the years to come, while meeting the expectations of our regulators.
He added: “While our growth has been impressive, that growth in no way diminishes our commitment to a ‘second to none’ banking experience for our clients. Our message of ‘Our Solutions, Your Success’ continues to resonate with clients and prospects alike. CBC’s unique combination of robust financial condition, advanced technology, and a holistic approach to personal service is what is making us the bank of choice for businesses and professionals in Southern California.”
Mr. Patel concluded: “Thus far in 2019 we have seen no reduction in the economic volatility that has characterized the recent past. As before, that volatility brings with it both challenges and opportunities. CBC enjoys the financial strength and flexibility to act decisively to capitalize on the opportunities and address the challenges. We remain highly confident concerning the future of Commercial Bank of California.”
About Commercial Bank of California
Commercial Bank of California is a full-service bank serving the business and professional communities of Los Angeles and Orange counties. Recognized as a BauerFinancial, Inc. “Five-Star Superior Bank” for its financial strength and stability, CBC provides the financial expertise of a major bank while maintaining a commitment to personalized service for every CBC client. More information about CBC’s custom solutions for your business is available at www.cbcal.com.