Community Bank Reports Year to Date Earnings of $22.6 Million and Declares Cash Dividend on Common Stock

PASADENA, Calif.–Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.5 billion, and headquartered in Pasadena with 17 business centers.

Financial highlights for the third quarter:

  • Net income for the first nine months of 2016 increased $3.5 million or 18%, over the prior year. The 2015 results reflect a balance sheet restructuring charge which is partially offset by loan loss provisioning in 2016.
  • Non-interest bearing deposits increased 13%, or $120.4 million, to $1,032.9 million compared to $912.5 million as of September 30, 2015.
  • Core deposits represented 85% of total deposits, as of September 30, 2016, with the non-interest bearing component representing 45% of core deposits as compared to 39% in the prior year. (Community Bank defines core deposits as those deposits generated by its branch network including specialty areas and excludes deposits placed through the Treasury area.)
  • Total loans as of September 30, 2016 increased 8%, or $181.0 million, to $2.5 billion compared to $2.3 billion as of September 30, 2015.
  • The Bank’s reserve for loan losses as of September 30, 2016 was $35.8 million or 1.43% of total loans compared to $36.0 million or 1.55% of total loans as of September 30, 2015. In the third quarter of 2016, a provision for loan losses of $1.2 million was recognized for the deterioration of an individual credit.
  • The Bank’s reserve for loan losses to non-performing loans, as of September 30, 2016, was 5.8 times compared to 2.7 times that level as of the same period last year.
  • Community Bank’s capital ratios continue to exceed “well capitalized” regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital, Common Equity Tier 1 and Total Risk-based Capital Ratios of 9.17%, 10.88%, 10.88% and 12.11%, respectively, as of September 30, 2016.

Other highlights:

  • Participated out approximately $34 million in loans to other institutions as part of a correspondent services program.
  • Took advantage of the impact of Brexit on long-term rates to lock in $300 million of 5 year term funding. In addition to locking in favorable long-term rates, this strategy enabled the Bank to increase the granularity of its deposit portfolio.
  • The Bank hired key relationship managers in its Specialty Deposits Group as well hiring a team in the San Gabriel Valley to expand the C.H. Cook brand.
  • Maintained a four-star rating or better (excellent/superior) with Bauer Financial for more than 77 consecutive quarters while additionally maintaining a rated status with Findley Reports, Inc. over that same period.
  • The Bank’s book value per common share has increased to $109 as of September 30, 2016 from $99 as of September 30, 2015. The Bank’s book value per common share has increased at a 10% compounded rate over the past 20 years.
  • The Board of Directors declared a $0.50 per share cash dividend (aggregating $1.6 million) on its outstanding common stock for common shareholders of record as of November 15, 2016 and payable on or about December 1, 2016. This represents the eighth 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 October 27, 2016. 

“Community Bank continues to expand its core franchise, grow its deposit base, reduce concentrations and invest for the future,” David R. Misch, the Chief Executive Officer of the Bank stated. “We are very comfortable,” Misch continued, “with the strategic possibilities the Bank has and our ability to successfully execute against them.” 

CBank is pleased to announce that Raymond James Inc. and DA Davidson are market makers in Community Bank stock. Community Bank stock trades on OTC pink sheets under the ticket of CYHT. Contact information for our market makers is as follows:

John T. Cavender, SVP Financial Institutions
Raymond James & Associates
415-616-8935
John.cavender@raymondjames.com
http://www.raymondjames.com

and

Michael R. Natzic, Senior Vice President
D.A. Davidson & Co.
1-800-288-2811
mnatzic@dadco.com
https://dadavidson.com

Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Laguna Niguel, 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.

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