Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.6 billion, and headquartered in Pasadena with 17 business centers.

Highlights of the second quarter are as follows:

* Net interest income for the second quarter of 2016 increased 3.4% over the prior year and 5.7% for the first six months of 2016 over prior year. The improvement is attributed to growth in earning assets combined with a lower cost of funds.

* Net income growth, for the periods presented, reflect substantial increases over the comparable periods largely due to a $3.8 million balance sheet restructuring charge in June 2015. Net income improvement, excluding this charge, represents a 3.0% increase for the second quarter of 2016 over prior year and a 5.3% increase for the first six months of 2016 over prior year.

* Non-interest bearing deposits increased more than 7% or $64.4 million to $968.9 million compared to $904.5 million as of June 30, 2015.

* At June 30, 2016, core deposits represented 83% of total deposits with the non-interest bearing component representing 43% of core deposits as compared to 40% in the prior year. (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, 2016 increased approximately 9% to $2.5 billion compared to $2.3 billion as of June 30, 2015.

* The Bank’s reserve for loan losses as of June 30, 2016 was $34.5 million or 1.36% of total loans compared to $35.5 million or 1.52% of total loans as of June 30, 2015. A provision for loan losses of $1.2 million was recognized in the second quarter of 2016 largely due to loan growth and the deterioration and subsequent charge-off of an individual credit. The Bank’s reserve for loan losses was over five times its non-performing assets as of June 30, 2016.

* Community Bank’s capital ratios continue to significantly exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital, Common Equity Tier 1 and Total Risk-based Capital Ratios of 8.90%, 10.57%, 10.57% and 11.75%, respectively, as of June 30, 2016.

* The Bank has also maintained a four-star rating or better (excellent/superior) with Bauer for more than 76 consecutive quarters.

* The Board of Directors declared a $0.50 per share cash dividend (aggregating approximately $1.564 million) on its outstanding common stock for common shareholders of record as of August 12, 2016 and payable on or about September 1, 2016. This is the seventh consecutive quarter that the Bank has declared a dividend since introducing a formal dividend practice. The dividend was approved at the regularly scheduled Board of Directors meeting held on July 28, 2016.

* Community Bank recently signed new lease agreements and relocated both its Anaheim and Irvine locations. “We are very excited about our upgraded presence in Orange County,” commented Michael Helmuth, Regional President. “The new locations are styled after the more contemporary look reflected at the Bank’s headquarters in Pasadena and represent the Bank’s continuing commitment to the Orange County market,” Helmuth added.

“The Bank continues its excellent performance,” commented David R. Misch, Community Bank’s Chief Executive Officer. “And we are particularly pleased with the continued interest in Community Bank from both prospects and bankers looking for a great banking home,” Misch continued, “because those are the key factors that drive growth.”

Community Bank has offices in Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Laguna Nigel, 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.