President’s Statement
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.
Ash Patel, President & CEO
2018 was a milestone year for Commercial Bank of California.
Our achievements were many. From a financial perspective, this was CBC’s strongest year ever. The year’s net income was the highest in our history, and we chalked up solid growth in total assets, net loans, and total deposits. At the same time, our capital position remained in the strongest category established by banking regulators, and despite our growth, our loan portfolio maintained the high credit qualify that has long been our hallmark.
Our 2018 accomplishments extend beyond mere financial performance, however. We bolstered our strong management team with four new executives: Market Presidents Claudia Bodan and Mike Helmuth (for our Los Angeles and Orange County markets, respectively), Growth and Strategy EVP Shahzad Khan in our Payments Division, and EVP/Chief Risk Officer Neel Pinge. We added three new CBC locations in 2018: new regional offices in Anaheim and downtown Los Angeles, and our Payments Solutions facility in North Hollywood. Lastly, we added a fintech component to the CBC corporate family. VeriCheck is a provider of ACH services based in Atlanta, which processes over 900,000 transactions each month for its payments clients.
What these achievements have in common is that they further strengthen our organizational foundation as the basis of our future success. Each brings us closer to our goal of building a unique institution, a bank that does not yet exist, with financial products stretching from Payments Solutions to Mobile Banking, and the financial strength and responsive service needed to make a meaningful contribution to the success of our clients. 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.
2018 was a year of increasing volatility in the economic environment, and with that volatility come both challenges and opportunities. Fortunately, our financial strength and flexibility enables us to act decisively to address those challenges and capitalize on the opportunities. We believe that our current performance and future trends justify our confidence in the future of Commercial Bank of California.
Net income increased by 70%
Total assets increased from the prior year
Capital position remains well in excess of all "well capitalized standards"
2018 Financials
Net Income
$7,369,000
Net loan growth for 2018 increased 13.5% from 2017 levels
Total Assets
Total Loans (net)
Total Deposits
Total Capital
STATEMENTS OF CONDITION (UNAUDITED)
(000s omitted) | December 31, 2018 | December 31, 2017 |
ASSETS: | ||
Cash and due from banks | $ 26,991 | $ 32,898 |
Fed Funds sold | 2,500 | 2,500 |
Interest bearing deposits with banks | 141,555 | 104,781 |
Cash and cash equivalents | 171,046 | 104,179 |
Investment securities | 89,186 | 91,703 |
Loans, net | 684,017 | 602,880 |
Premises and equipment - net | 3,876 | 2,517 |
Accrued interest receivable and other assets | 38,587 | 31,723 |
Total assets | $ 986,712 | $ 869,002 |
LIABILITIES AND CAPITAL: | ||
Non-interest bearing demand deposits | $ 342,164 | $ 311,976 |
Interest bearing demand deposits | 50,812 | 38,846 |
Savings and money market deposits | 421,106 | 315,905 |
Time deposits | 64,009 | 60,438 |
Total deposits | 878,091 | 727,165 |
Federal Home Loan Bank advances | -- | 40,000 |
Accrued interest payable and other liabilities | 12,436 | 12,194 |
Total liabilities | $ 890,527 | $ 779,359 |
Stated capital | 83,831 | 83,830 |
Retained earnings | 13,578 | 6,209 |
Accumulated other comprehensive income (loss) | (1,224) | (396) |
Total capital | $ 96,185 | $ 89,643 |
Total liabilities and capital | $ 986,712 | $ 869,002 |
STATEMENTS OF OPERATIONS (UNAUDITED)
Twelve Months | Twelve Months | |
Ended | Ended | |
(000's omitted) | December 31, 2018 | December 31, 2017 |
Interest on loans | $ 35,488 | $ 28,934 |
Interest on deposits with banks | 2,208 | 1,375 |
Interest on investment securities | 2,110 | 1,812 |
Other interest income | 49 | 11 |
Total interest income | 39,855 | 32,132 |
Interest on deposits | 4,039 | 2,360 |
Interest on FHLB advances | 112 | 36 |
Total interest expense | 4,151 | 2,396 |
Net interest income | 35,704 | 29,736 |
Provision for loan losses | 975 | (1,873) |
Net interest income after provision for loan losses | 34,729 | 31,609 |
Other operating income | 12,196 | 8,407 |
Salaries and related benefits | 22,230 | 18,326 |
Occupancy expenses | 3,883 | 5,317 |
Other expenses | 10,360 | 8,452 |
Total other operating expenses | 36,473 | 32,095 |
Income before provision for income taxes | 10,452 | 7,921 |
Provision for income taxes | 3,083 | 3,592 |
Net income | $ 7,369 | $ 4,329 |
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. The Bank is 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 client. More information about CBC’s custom solutions for your business is available at www.cbcal.com.
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.
Irvine Headquarters Office
19752 MacArthur Boulevard, Suite 100 Irvine CA 92612
(714) 431-7000
Los Angeles Administrative Office
915 Wilshire Boulevard, Suite 1000
Los Angeles CA 90017
(310) 882-4800
Anaheim Regional Office
1900 South State College Boulevard, Suite 101
Anaheim CA 92806
(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