Financial Report 2018

President’s Statement

photo of Ash Patel, president and CEO
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.

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Net income increased by 70%

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Total assets increased from the prior year

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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

$987 million

Total Loans (net)

$684 million

Total Deposits

$878 million

Total Capital

$96 million

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

Click to see a table showing the increase in net income over the last several years.
Click to see a table showing the increase in net loans and total assets over the last several years.
Click to see a table showing the increase in total assets over the last several years.

About Commercial Bank of California

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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.

Commercial Bank of California building

 

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

www.cbcal.com