Commercial Bank of California Concludes 2018 With Continued Strong Financial Performance

   Highlights Include:
  •       Net income surged to new record high
  •       Total assets, deposits and loans all grew sharply from prior-year levels
  •       Management team further strengthened by new additions
  •       Bank successfully established three new offices

IRVINE, CALIF. (Jan. 31, 2019) – Commercial Bank of California, a BauerFinancial Five-Star Superior Bank, today reported net income for the full year 2018 of $7,369,000, an increase of 70 percent over the $4,329,000 net income of the prior year.  Net interest income totaled $35.7 million for the full year 2018, a 20 percent increase from the $29.7 million recorded in 2017.

At December 31, 2018, the Bank’s total assets were $986.7 million, an increase of 14 percent over the $869.0 million total for the same date in 2017.  Total deposits stood at $878.1 million at yearend 2018, up 21 percent from $727.2 million a year ago, while net loans advanced to $684.0 million at the end of 2018, a 13 percent increase over the comparable 2017 total of $602.9 million. Total capital at December 31, 2018 was $96.2 million, a 7 percent increase over the level at the same time in 2017.

“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," said Ash Patel, President and CEO of Commercial Bank of California. "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.”

Non-performing assets net of federal guarantees totaled $3.9 million at December 31, 2018, compared to reserves of $10.2 million.  The Bank again had no Other Real Estate Owned (generally real estate acquired through foreclosure) as of December 31, 2018.

“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," said Mr. Patel. "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."

“Each of these achievements 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," said Mr. Patel. "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.”

“Last year was one of increasing volatility in the economic environment, and with that volatility come both challenges and opportunities," said Mr. Patel. "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.”  

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

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

 

140,179

     

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

 

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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