IRVINE, CALIF. (August 12, 2019) – Commercial Bank of California (“CBC”), a BauerFinancial Five-Star Superior Bank, today reported net income of $1.9 million for the second quarter of 2019. The quarterly results were a modest increase over the $1.8 million earned in the second quarter of 2018, and a solid improvement over the $1.4 million earned in the first quarter of 2019. Reflecting continued growth in earning assets, net interest income for the second quarter of 2019 was $10.3 million, a strong increase from the $9.4 million recorded in the first quarter of the year.
On a year-to-date basis, the second quarter results brought 2019 earnings to $3.2 million, compared to $3.9 million for the first half of 2018.
At June 30, 2019, the Bank’s total assets were $977.8 million, compared to $903.2 million a year ago. Net loans rose sharply, from $598.1 million at June 30, 2018 to a 2019 total of $718.2 million. Deposits also experienced strong growth, rising to $864.8 million at June 30, 2019; the comparable 2018 figure was $798.9 million. Total capital at June 30, 2019 was $101.0 million, up from $92.5 million a year ago.
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 9.65%, 11.64%, and 12.89%, respectively, as of June 30, 2019.
Ash Patel, President and Chief Executive Officer, commented, “Commercial Bank of California resumed its progress in the second quarter of 2019. We are particularly pleased with CBC’s strong growth in assets, loans, and deposits. The net interest income resulting from that growth drove our resurgent results for the period.
“As previously announced, balance sheet growth brings with it increased expectations by banking regulators, and in response we have been making prudent investments in highly-capable additions to our management team. Adding officers of this caliber comes at a cost, which is evident in our higher salary expense thus far in 2019 compared to the prior year. CBC has already begun to grow into the new investment, as demonstrated by the improvement in our second quarter results versus those of the first quarter. Moreover, we expect this firm foundation to support our growth in the years to come, while meeting the expectations of our regulators.”
He added: “The ‘second to none’ banking experience enjoyed by our clients has long been a CBC hallmark. 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. In the near future, we will be introducing new technology solutions to help manage the sales process for our business clients, and make CBC even more accessible and easy to deal with than ever. As before, our focus remains on further enhancing the banking experience which we deliver to our valued clients. Stay tuned for additional details on these exciting initiatives in the coming weeks.”
Mr. Patel concluded: “As the year progresses, we continue to experience the economic volatility that has characterized the recent past. Interest rates in particular appear to be at an inflection point, but the extent and duration of their movement is uncertain. Thanks to our financial strength and flexibility, CBC is well positioned to capitalize on opportunities and respond to challenges. Our confidence in Commercial Bank of California’s future remains undiminished.”
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.