Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.4 billion and is headquartered in Pasadena with 16 business centers including one in Santa Clarita.
Highlights of the second quarter are as follows:
The second quarter of 2015 reflects a $3.8 million reduction in net income in relation to a balance sheet restructuring strategy in which the Bank paid off $153 million in Federal Home Loan Bank (FHLB) advances with an average rate of 3.65% in combination with security sales yielding 2.65%. This was previously discussed in our press release dated June 12, 2015.
Net income for the first six months of 2015, before the costs of restructuring, was $15.1 million. This compares to pre-tax income for the prior period of $12.9 million, representing a 17.1% increase.
Including the cost of restructuring, net income for the first six months of 2015 was $11.2 million compared to $12.9 million for the similar period in 2014. For the second quarter of 2015, the Bank reported net income of $4.0 million compared to $6.2 million for the same quarter last year.
For the first time in the Bank’s history, Shareholders’ Equity reached $300 million.
Total core deposits increased approximately 6.6% to $2.24 billion as of June 30, 2015 as compared to $2.10 billion as of June 30, 2014. (Note: The Bank defines core deposits as those deposits generated by its branch network including specialty areas. It excludes deposits placed primarily with financial institutions through the Treasury area of the Bank).
Total loans as of June 30, 2015 increased more than 7% to $2.3 billion as compared to $2.2 billion as of June 30, 2014.
The Bank’s reserve for loan losses as of June 30, 2015 was $35.5 million or 1.52% of total loans. No provision was added or released for loan losses for either the first six months of 2015 or 2014 despite a 48% drop in non-performing assets for the comparable period.
Community Bank’s capital ratios continue to significantly exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital and Total Risk-based Capital Ratios of 8.40%, 10.59%, and 11.84%, respectively, as of June 30, 2015.
The Board of Directors declared a $0.45 per share cash dividend (aggregating approximately $1.4 million) on its outstanding common stock. The dividend was approved at the regularly scheduled Board of Directors meeting held on July 23, 2015. It will be payable on or about September 1, 2015 to common shareholders of record as of August 14, 2015.
David R. Misch, Chief Executive Officer commented, “These financial results are testament to the successful execution of the Bank’s strategic initiatives. It’s a simple concept: deliver great service to our clients.”
Director Chuck Cook added, “Client orientation is what this Bank has been driven by since it was formed by Charlie and Howard Cook 70 years ago. It is why we continue to do well.”
Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, and Woodland Hills. For more information, visit the Community Bank Website at www.cbank.com.