- 2018 first half net income increased by 67% year-over-year
- Total assets, total deposits, and net loans all increased from the prior year
- Retained earnings further strengthened robust capital position
IRVINE, CALIF. (August 10, 2018) – Commercial Bank of California (“CBC”), a BauerFinancial Five-Star Superior Bank, today reported net income for the second quarter of 2018 of $1.8 million, compared to $1.4 million for the comparable period in 2017. Year-to-date earnings increased substantially, rising to $3.9 million for the first half of 2018 from $2.3 million for the first six months of the prior year. In each case, the improved results reflected growth in earning assets, increased fee income, and higher net interest margins resulting from recent increases in prevailing interest rates.
At June 30, 2018, the Bank’s total assets were $903.2 million, compared to $826.3 million a year ago. Net loans rose to $598.1 million at June 30, 2018 from a 2017 total of $536.0 million. Deposits totaled $798.9 million at June 30, 2018; the comparable 2017 figure was $730.4 million. Total capital at June 30, 2018 was $92.5 million, up from $87.9 million a year ago.
The Bank’s capital ratios continue to significantly exceed regulatory standards, with Tier 1 Leverage, Common Equity Tier 1 Risk-based Capital, Tier 1 Risk-based Capital, and Total Risk-based Capital Ratios of 10.61%, 12.18%, 12.18%, and 13.36%, respectively, as of June 30, 2018. In comparison, the regulatory capital ratio requirements for “Well Capitalized” status are 5.00%, 6.50%, 8.00%, and 10.00%, respectively.
Ash Patel, President and Chief Executive Officer, commented, “Commercial Bank of California maintained its positive momentum in the second quarter of 2018. Our quarterly and year-to-date net income increased substantially compared to the prior year, and we achieved solid growth in total assets, total deposits, and net loans.
“While our growth was significant, it remained prudent and controlled. And as before, our growth in loans was not achieved at the cost of our credit quality. Non-performing assets net of federal guarantees totaled just $489,000 at June 30, 2018, while loan reserves were $8.3 million, or 1.36% of total loans, at quarter end.”
Mr. Patel concluded, “CBC’s unique combination of advanced technology and responsive, personalized service provided by the outstanding CBC team is why we are increasingly recognized as the bank of choice for businesses and professionals in Southern California. As 2018 proceeds, we continue our quest to build ‘the bank that does not yet exist,’ a unique institution with an ecosystem of products ranging from Mobile Banking to Payments Solutions, and the financial strength and responsive service needed to contribute to the ‘Life Wealth’ of our clients. The second quarter of 2018 saw additional progress towards that objective. At the same time, our strong operating results further bolstered our financial strength and flexibility, enabling us to react effectively to changing market conditions and the opportunities they bring. Our confidence remains undiminished concerning Commercial Bank of California’s prospects now and in the years ahead.”
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.