Community Bank Reports 2% Increase in 2013 First Quarter Earnings to $6.0 Million
Community Bank Reports 2% Increase in 2013 First Quarter Earnings to $6.0 Million
PASADENA, Calif.--(BUSINESS WIRE)-- Community Bank, an independent business bank with 17 business centers in Los Angeles, San Bernardino, Riverside, Ventura and Orange Counties, today reported a 2% increase in net income to $6.0 million for the first quarter of 2013 compared to $5.9 million for the similar quarter in 2012.
Net interest income for the first quarter of 2013 increased 2.8% over the prior year, totaling $23.4 million in 2013 versus $22.8 million in the prior year. The improvement in 2013 was due to a growth in our earning assets versus 2012 but offset by lower net interest margin in 2013 to 3.23% versus 3.65% in the comparable 2012 quarter.
The Bank's reserve for loan losses as of March 31, 2013 was $34.8 million or 1.77% of total loans compared to $36.9 million or 2.12% of total loans as of March 31, 2012. No provision for loan losses was required for either the first quarter of 2013 or 2012. The reduction in reserve levels is reflective of improving conditions in credit quality which is further evidenced by the 33% decrease in non-performing loans for the current quarter compared to the first quarter of 2012.
Total loans as of March 31, 2013 increased to $2.0 billion compared to the prior year of $1.7 billion. Total deposits as of March 31, 2013 increased from the prior year quarter at $2.3 billion compared to $2.0 billion as of March 31, 2012. Community Bank's capital ratios continue to exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital and Total Risk-based Capital Ratios of 8.10%, 10.29%, and 11.55%, respectively, as of March 31, 2013. Regulatory requirements for a "well-capitalized bank" are 5%, 6%, and 10%, respectively.
David Malone, Chairman and Chief Executive Officer, commented, "In an extremely competitive and uncertain economic environment coupled with falling interest margins the Bank was able to have a very good earnings quarter, slightly exceeding the results for the comparable prior year quarter.
"We achieved this performance through a combination of increasing loan volume occasioned by innovative structuring that benefited our customers as well as the Bank, an improvement in fee income and carefully managing a larger securities portfolio. At the same time we were able to invest in future growth initiatives-namely our new residential mortgage product, a streamlined SBA program and finally our new Business Centers.
"We see the economy this year as one of uneven growth but bolstered by a recovering housing market. We continue to believe that our strong capital base together with our outstanding customer service will allow the Bank to fully participate in the economic recovery.
"As always, we thank our wonderful customers and our dedicated employees who serve them."
Community Bank, with assets of $3.1 billion, was founded in 1945 and is headquartered in Pasadena. The Bank is a regional Southern California Bank with offices in Anaheim, Burbank, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, Ventura, Warner Center and West Los Angeles. For more information, visit the Community Bank Website at www.cbank.com.
This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.
COMMUNITY BANK | |||||||||||||||
Financial Highlights - Income Statement and Ratios (Unaudited) | |||||||||||||||
(Amounts in Thousands) | |||||||||||||||
For the quarters ended | |||||||||||||||
March 31, | |||||||||||||||
Dollar | Percent | ||||||||||||||
INCOME STATEMENT | 2013 | 2012 | Change | Change | |||||||||||
Interest Income | $ | 28,742 | $ | 27,909 | $ | 833 | 3.0 | % | |||||||
Interest Expense | 5,364 | 5,158 | 206 | 4.0 | % | ||||||||||
Net interest income | 23,378 | 22,751 | 627 | 2.8 | % | ||||||||||
Provision for loan losses | - | - | - | - | |||||||||||
Net interest income after provision | 23,378 | 22,751 | 627 | 2.8 | % | ||||||||||
Non-interest income | 2,768 | 2,410 | 358 | 14.9 | % | ||||||||||
Non-interest expense | 16,551 | 15,572 | 979 | 6.3 | % | ||||||||||
Income before income tax | 9,595 | 9,589 | 6 | 0.1 | % | ||||||||||
Income tax | 3,595 | 3,711 | (116 | ) | (3.1 | %) | |||||||||
Net income | $ | 6,000 | $ | 5,878 | $ | 122 | 2.1 | % | |||||||
Financial Highlights - Balance Sheet (Unaudited) | |||||||||||||||
(Amounts in Thousands) | |||||||||||||||
As of March 31, | Dollar | Percent | |||||||||||||
BALANCE SHEET | 2013 | 2012 | Change | Change | |||||||||||
Cash and cash equivalents | $ | 48,076 | $ | 68,705 | $ | (20,629 | ) | (30.0 | %) | ||||||
Investments | 977,719 | 773,195 | 204,524 | 26.5 | % | ||||||||||
Non-owner occupied real estate loans | 638,419 | 609,361 | 29,058 | 4.8 | % | ||||||||||
Owner occupied real estate loans | 814,654 | 676,831 | 137,823 | 20.4 | % | ||||||||||
Total real estate loans | 1,453,073 | 1,286,192 | 166,881 | 13.0 | % | ||||||||||
Commercial & industrial loans | 484,360 | 424,447 | 59,913 | 14.1 | % | ||||||||||
Other loans | 28,062 | 32,254 | (4,192 | ) | (13.0 | %) | |||||||||
Total loans | 1,965,495 | 1,742,893 | 222,602 | 12.8 | % | ||||||||||
Loan loss reserve | (34,812 | ) | (36,943 | ) | 2,131 | (5.8 | %) | ||||||||
Net loans | 1,930,683 | 1,705,950 | 224,733 | 13.2 | % | ||||||||||
Other Assets | 118,471 | 119,523 | (1,052 | ) | (0.9 | %) | |||||||||
Total assets | $ | 3,074,949 | $ | 2,667,373 | $ | 407,576 | 15.3 | % | |||||||
Earning assets | $ | 2,960,647 | $ | 2,553,278 | $ | 407,369 | 16.0 | % | |||||||
Non-interest bearing deposits | $ | 649,873 | $ | 594,352 | $ | 55,521 | 9.3 | % | |||||||
Interest bearing deposits | 1,656,540 | 1,441,324 | 215,216 | 14.9 | % | ||||||||||
Total deposits | 2,306,413 | 2,035,676 | 270,737 | 13.3 | % | ||||||||||
Funds purchased/borrowed | 493,000 | 333,000 | 160,000 | 48.0 | % | ||||||||||
Other liabilities | 17,010 | 27,749 | (10,739 | ) | (38.7 | %) | |||||||||
Total liabilities | 2,816,423 | 2,396,425 | 419,998 | 17.5 | % | ||||||||||
Stockholders' equity | 258,526 | 270,948 | (12,422 | ) | (4.6 | %) | |||||||||
Total liabilities & stockholders' equity | $ | 3,074,949 | $ | 2,667,373 | $ | 407,576 | 15.3 | % | |||||||
Selected Financial Data and Highlights (Unaudited) | |||||||||||||||
(Amounts in Thousands) | |||||||||||||||
For the quarters ended | |||||||||||||||
March 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Return on average equity | 9.41 | % | 8.80 | % | |||||||||||
Return on average assets | 0.80 | % | 0.91 | % | |||||||||||
Net interest margin | 3.23 | % | 3.65 | % | |||||||||||
Efficiency ratio | 63.72 | % | 62.05 | % | |||||||||||
Book value per common share | $ | 82.71 | $ | 88.83 | |||||||||||
Basic earnings per common share | $ | 1.92 | $ | 1.95 | |||||||||||
Diluted earnings per common share | $ | 1.91 | $ | 1.88 | |||||||||||
As of March 31, | Minimum Ratios for a | ||||||||||||||
CAPITAL RATIOS | 2013 | 2012 | Well-Capitalized Bank | ||||||||||||
Tier 1 leverage capital | 8.10 | % | 9.83 | % | 5.00% | ||||||||||
Tier 1 risk-based capital | 10.29 | % | 12.35 | % | 6.00% | ||||||||||
Total risk-based capital | 11.55 | % | 13.60 | % | 10.00% | ||||||||||
Tier 1 common capital | 10.29 | % | 12.26 | % | N/A | ||||||||||
As of March 31, | Dollar | Percent | |||||||||||||
OTHER SELECTED DATA | 2013 | 2012 | Change | Change | |||||||||||
Other real estate owned | $ | 3,375 | $ | 4,632 | $ | (1,257 | ) | (27.1 | %) | ||||||
Nonperforming loans | $ | 38,120 | $ | 57,270 | $ | (19,150 | ) | (33.4 | %) | ||||||
Reserve for loan losses to total loans | 1.77 | % | 2.12 | % | (16.5 | %) | |||||||||
Reserve for loan losses to nonperforming loans | 91.32 | % | 64.51 | % | 41.6 | % | |||||||||
Nonperforming loans to total loans | 1.94 | % | 3.29 | % | (41.0 | %) | |||||||||
Nonperforming assets to total assets | 1.35 | % | 2.32 | % | (41.8 | %) | |||||||||
Community Bank
Nancy L. Karlson, Executive Vice President and Chief Financial Officer
626-568-2076
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
The article Community Bank Reports 2% Increase in 2013 First Quarter Earnings to $6.0 Million originally appeared on Fool.com.
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