Commonwealth Business Bank ("CBB" or "Bank") CWBB today announced net income of $2.5 million for the fourth quarter of 2015, compared with $2.9 million for the third quarter of 2015 and $2.4 million for the fourth quarter of 2014. Diluted earnings per share were $0.30 for the fourth quarter of 2015, compared with $0.35 for the third quarter of 2015 and $0.29 for the fourth quarter of 2014. During the fourth quarter, the Bank incurred $864,000 of pre-tax core system conversion costs, or $0.06 per diluted common share on an after tax basis, compared to $29,000 in the third quarter and no expense in the year ago quarter.
The Bank announced net income of $11.3 million or $1.35 per diluted common share for the year ended December 31, 2015, compared with $11.2 million or $1.36 per diluted common share for the same period of 2014. For the year, CBB incurred $944,000 of pre-tax core system conversion costs, or $0.07 per diluted common share on an after tax basis.
"During the fourth quarter we made a significant investment in our core information system to better serve our customers. The majority of the implementation costs of the new system were expensed during the quarter, however we still achieved strong financial results," said Joanne Kim, President and CEO.
"In 2015 we also strengthened our executive management team to enable us to meet our strategic objectives of profitable growth and delivering maximum value to our customers, employees and shareholders," said Ms. Kim.
RESULTS OF OPERATIONS
Quarterly Results Summary (Unaudited) |
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Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, |
September 30, |
% | December 31, | % | December 31, | December 31, | % | |||||||||||||||||||||||||||||
2015 | 2015 | Change | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||||||||||||
(Dollars in thousands, except per share information) | ||||||||||||||||||||||||||||||||||||
Net income | $ | 2,546 | $ | 2,933 | -13.2 | % | $ | 2,372 | 7.3 | % | $ | 11,275 | $ | 11,174 | 0.9 | % | ||||||||||||||||||||
Net income per diluted common share | $ | 0.30 | $ | 0.35 | -14.3 | % | $ | 0.29 | 3.4 | % | $ | 1.35 | $ | 1.36 | -0.7 | % | ||||||||||||||||||||
Return on average assets | 1.31 | % | 1.52 | % | -13.8 | % | 1.46 | % | -10.0 | % | 1.55 | % | 1.84 | % | -15.6 | % | ||||||||||||||||||||
Return on average equity | 11.31 | % | 13.58 | % | -16.7 | % | 12.56 | % | -9.9 | % | 13.44 | % | 15.96 | % | -15.8 | % | ||||||||||||||||||||
Noninterest income/average assets | 1.60 | % | 1.28 | % | ¹ | 25.3 | % | 1.80 | % | ¹ | -10.9 | % | 1.53 | % | 1.96 | % | ¹ | -21.7 | % | |||||||||||||||||
Pre-tax, pre-provision earnings/average assets | 2.40 | % | 2.68 | % | -10.4 | % | 3.03 | % | -20.8 | % | 2.72 | % | 3.08 | % | -11.7 | % | ||||||||||||||||||||
Noninterest expense/average assets | 3.11 | % | 2.37 | % | ¹ | 31.2 | % | 2.66 | % | ¹ | 16.9 | % | 2.74 | % | 2.63 | % | ¹ | 4.2 | % | |||||||||||||||||
Efficiency ratio | 56.44 | % | 46.95 | % | ¹ | 20.2 | % | 46.69 | % | ¹ | 20.9 | % | 50.23 | % | 46.09 | % | ¹ | 9.0 | % | |||||||||||||||||
Net interest margin | 4.00 | % | 3.86 | % | 3.5 | % | 3.98 | % | 0.5 | % | 4.02 | % | 3.84 | % | 4.8 | % |
1. Restated due to the reclassification of certain SBA fees
Net income for the fourth quarter of 2015 decreased $387,000 compared to the prior quarter, and increased $174,000 over the fourth quarter of 2014. The quarter-over-quarter decrease was primarily driven by a $200,000 increase in the provision for loan losses and an $835,000 increase in core system conversion costs. Offsetting these items were a $296,000 increase in net interest income, a $532,000 increase in gains on sales of SBA loans and a $327,000 decrease in the provision for income taxes.
Net income for the twelve months ended December 31, 2015 increased $101,000, or 0.9%, to $11.3 million, compared with $11.2 million for the prior year. The increase was primarily due to a $5.7 million, or 24.7%, increase in net interest income, which was partially offset by an $878,000 increase in the provision for loan losses, an $867,000 decline in gains on sales of SBA loans and a $3.9 million increase in noninterest expenses. Included in the increase in noninterest expenses were $944,000 of non-recurring pre-tax core system conversion costs.
Net Interest Income and Net Interest Margin
Net interest income before provision for loan losses was $7.6 million for the fourth quarter of 2015, an increase of $296,000, or 4.1%, compared to $7.3 million for the prior quarter and an increase of $1.2 million, or 19.6%, compared to $6.3 million for the year ago quarter. These increases were primarily due to $19.1 million and $108.4 million increases, respectively, in average loan balances and 4 and 6 basis point increases, respectively, in loan yields. Net interest income before the provision for loan losses was $28.5 million for the year ended December 31, 2015, an increase of $5.7 million, or 24.7%, compared to $22.9 million for the same period in 2014. The annual year-over-year increase was primarily attributable to a $115.2 million increase in average loan balances and a 5 basis point increase in loan yields.
The net interest margin improved to 4.00% for the current quarter, from 3.86% in the prior quarter and 3.98% in the same quarter of 2014. The increase from the prior and year ago quarters was due to a 14 basis point increase in the yield on interest-earning assets to 4.72%, from 4.58% for the prior quarter and a 7 basis point increase in the yield on interest-earning assets from 4.65% for the year ago quarter. These increases were primarily driven by increases in the yield on loans. Our cost of funds remained unchanged at 0.80% quarter-over-quarter, but increased 5 basis points from 0.75% for the same period last year. The year-over-year increase in our cost of funds was due to a proportional increase in higher-cost time deposits. For the year ended December 31, 2015, our net interest margin increased 18 basis points to 4.02% from 3.84% in 2014. This increase was primarily driven by an 18 basis point increase in the yield on interest-earning assets. Our cost of funds for the current year was 0.79%, down 1 basis point from 0.80% in the prior year.
Noninterest Income
For the current quarter, noninterest income totaled $3.1 million, an increase of $643,000 and $178,000 from the prior and year ago quarters, respectively. The quarter-over-quarter increase was primarily due to a $532,000 increase in gains on sales of SBA loans and a $95,000 increase in SBA servicing income. The year-over-year quarterly increase was due to a $52,000 increase in gains on sales of SBA loans and a $73,000 increase in servicing income. For the year, noninterest income decreased $785,000 to $11.1 million from $11.9 million in 2014 primarily due to an $867,000 decrease in gains on sales of SBA loans. Annual average premiums on sales of SBA loans have declined to 10.58% in 2015 from 11.37% in the prior year.
During the fourth quarter of 2015, the Bank sold $33.8 million of SBA loans, compared with $24.6 million in the third quarter of 2015 and $26.9 million in the fourth quarter of 2014. For the full year 2015, the Bank sold $111.1 million of SBA loans, compared to $107.1 million in 2014. The amount of SBA loan sales varies based on the volume of loans we originate, our liquidity needs and market conditions.
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
December 31, | September 30, | % | December 31, | % | December 31, | December 31, | % | |||||||||||||||||||||||
2015 | 2015 | Change | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||
SBA loans held-for-sale at beginning of the quarter | $ | 21,043 | $ | 25,286 | -16.8 | % | $ | 15,057 | 39.8 | % | $ | 21,267 | $ | 18,524 | 14.8 | % | ||||||||||||||
SBA loans originated/transferred from held-for-investment during the quarter | 30,676 | 20,534 | 49.4 | % | 33,214 | -7.6 | % | 108,321 | 110,159 | -1.7 | % | |||||||||||||||||||
SBA loans sold during the quarter | (33,762 | ) | (24,594 | ) | 37.3 | % | (26,888 | ) | 25.6 | % | (111,134 | ) | (107,053 | ) | 3.8 | % | ||||||||||||||
SBA loans principal payment, net of advance | (148 | ) | (183 | ) | -19.1 | % | (116 | ) | 27.6 | % | (645 | ) | (363 | ) | 77.7 | % | ||||||||||||||
SBA loans held-for-sale at end of the quarter | $ | 17,809 | $ | 21,043 | -15.4 | % | $ | 21,267 | -16.3 | % | $ | 17,809 | $ | 21,267 | -16.3 | % | ||||||||||||||
Gain on sale of SBA loans | $ | 2,333 | $ | 1,801 | 29.5 | % | $ | 2,281 | 2.3 | % | $ | 8,524 | $ | 9,391 | -9.2 | % | ||||||||||||||
Premium on sale (weighted average) | 9.47 | % | 10.40 | % | -9.0 | % | 10.89 | % | -13.0 | % | 10.58 | % | 11.37 | % | -7.0 | % | ||||||||||||||
SBA loan production | $ | 43,313 | $ | 28,213 | 53.5 | % | $ | 45,306 | -4.4 | % | $ | 147,362 | $ | 157,662 | -6.5 | % | ||||||||||||||
Noninterest Expense
Noninterest expense for the fourth quarter of 2015 was $6.0 million, an increase of $1.5 million, or 31.8%, from $4.6 million for the prior quarter and an increase of $1.7 million, or 39.4%, from $4.3 million in the same quarter last year. The quarter-over-quarter increase was primarily due to an $866,000 increase in data processing expense (of which $835,000 related to our core system conversion), a $141,000 increase in salaries and employee benefits and a $179,000 increase in marketing expenses. The year-over-year quarterly increase was primarily due to a $920,000 increase in data processing expense (of which $864,000 related to our core system conversion), a $676,000 increase in salaries and employee benefits and a $267,000 increase in marketing expenses. The increase in salaries and employee benefits was due to an increase in full time equivalent employees ("FTE") to 127 at the end of the current year compared to 103 at the end of 2014. The increases in staffing and core system conversion were needed to support business expansion and to strengthen our infrastructure. For the full year 2015, noninterest expense was $19.9 million, an increase of $3.9 million, or 24.2%, from $16.0 million for the prior year. The annual increase was primarily due to a $2.0 million increase in salaries and employee benefits, a $1.0 million increase in data processing expense (of which $944,000 related to our system conversion), a $305,000 increase in occupancy and equipment expense, and an increase of $275,000 in marketing expenses.
At or for the Three Months Ended | At or for the Twelve Months Ended | ||||||||||||||||||||||||||||
December 31, | September 30, | % | December 31, | % | December 31, | December 31, | % | ||||||||||||||||||||||
2015 | 2015 | Change | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Salaries and benefits | $ | 3,319 | $ | 3,178 | 4.4 | % | $ | 2,643 | 25.6 | % | $ | 12,501 | $ | 10,510 | 18.9 | % | |||||||||||||
FTE at end of period | 127 | 119 | 6.7 | % | 103 | 23.3 | % | 127 | 103 | 23.3 | % | ||||||||||||||||||
Average FTE during the period | 123 | 120 | 2.8 | % | 103 | 19.5 | % | 116 | 97 | 20.1 | % | ||||||||||||||||||
Salaries and benefit/average FTE | $ | 107 | ¹ | $ | 103 | ¹ | 3.8 | % | $ | 103 | ¹ | 3.8 | % | $ | 108 | $ | 109 | -0.9 | % | ||||||||||
Salaries and benefit/average assets | 1.71 | % | 1.65 | % | 3.6 | % | 1.62 | % | 5.6 | % | 1.72 | % | 1.73 | % | -0.6 | % | |||||||||||||
Noninterest expense/average assets | 3.11 | % | 2.35 | % | 32.3 | % | 2.66 | % | 16.9 | % | 2.74 | % | 2.63 | % | 4.2 | % |
1. Annualized
Provision for Income Taxes
The provision for income taxes was $1.8 million, or an effective tax rate of 40.76%, compared to $2.1 million, or an effective tax rate of 41.48%, for the prior quarter and $1.8 million, or an effective tax rate of 42.61%, for the year ago quarter. For the full year 2015, the provision for income taxes was $8.0 million, or an effective tax rate of 41.39%, compared to $8.0 million, or an effective tax rate of 41.59% in the prior year.
Pre-Tax, Pre-Provision Income
For the fourth quarter of 2015, our pre-tax, pre-provision ("PTPP") income was $4.6 million, a decrease of $514,000, or 10.0%, from $5.2 million for the prior quarter and a decrease of $285,000, or 5.8%, from $4.9 million for the same quarter of 2014. Annualized PTPP income to average assets income decreased to 2.40% for the current quarter, compared with 2.68% and 3.03% for the prior and year ago quarters, respectively. For the twelve months ended December 31, 2015, PTPP income was $19.7 million, an increase of $983,000, or 5.2%, from $18.8 million in the prior year. PTPP income to average assets for current year decreased to 2.72% from 3.08% last year.
Three Months Ended |
Twelve Months Ended |
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December 31, | September 30, | % | December 31, | % | December 31, | December 31, | % | ||||||||||||||||||||||
2015 | 2015 | Change | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
PTPP income | $ | 4,648 | $ | 5,162 | -10.0 | % | $ | 4,933 | -5.8 | % | $ | 19,736 | $ | 18,753 | 5.2 | % | |||||||||||||
Annualized PTPP/average assets | 2.40 | % | 2.68 | % | -10.4 | % | 3.03 | % | -20.8 | % | 2.72 | % | 3.08 | % | -11.7 | % | |||||||||||||
PTPP, excluding gain on sale of SBA loans | $ | 2,315 | $ | 3,361 | -31.1 | % | $ | 2,652 | -12.7 | % | $ | 11,212 | $ | 9,362 | 19.8 | % | |||||||||||||
BALANCE SHEET SUMMARY
At December 31, 2015, the Bank had total assets of $786.4 million, an increase of $7.6 million, or 1.0%, from $778.8 million at September 30, 2015, and an increase of $133.0 million, or 20.3%, from $653.5 million at December 31, 2014. Earning assets totaled $765.7 million at December 31, 2015, an increase of $127.5 million, or 20.0%, from $638.2 million at December 31, 2014. The year-over-year increase in earning assets was mainly from a $97.4 million growth in total loans.
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||
Assets | $ | 786,423 | $ | 778,807 | $ | 744,028 | $ | 703,891 | $ | 653,450 | ||||||||||
Loans receivable, net | 641,145 | 640,687 | 587,917 | 581,655 | 539,810 | |||||||||||||||
Deposits | 680,512 | 675,225 | 644,646 | 608,893 | 572,812 | |||||||||||||||
Tangible common equity/total assets | 11.44 | % | 11.20 | % | 11.30 | % | 11.46 | % | 11.61 | % | ||||||||||
Tangible common equity per common share | $ | 11.06 | $ | 10.78 | $ | 10.40 | $ | 10.03 | $ | 9.77 | ||||||||||
Nonperforming assets to assets | 0.90 | % | 0.91 | % | 1.01 | % | 1.13 | % | 1.25 | % | ||||||||||
ALLL to nonperforming assets | 120.30 | % | 130.04 | % | 119.74 | % | 112.76 | % | 109.50 | % | ||||||||||
Nonperforming assets to tangible common equity and ALLL | 7.21 | % | 7.36 | % | 8.11 | % | 8.89 | % | 9.66 | % | ||||||||||
Loans Receivable
The following table lists gross loans by type at the dates indicated:
December 31,
2015 |
September 30,
2015 |
June 30,
2015 |
March 31,
2015 |
December 31, |
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(Dollars in thousands) | |||||||||||||||||||
Construction | $ | 10,577 | $ | 7,938 | $ | 7,460 | $ | 5,616 | $ | 4,088 | |||||||||
Commercial real estate | 502,679 | 498,659 | 453,915 | 444,878 | 418,071 | ||||||||||||||
Commercial and industrial | 131,869 | 140,194 | 131,144 | 136,231 | 122,861 | ||||||||||||||
Consumer | 3,153 | 1,872 | 3,236 | 2,879 | 2,667 | ||||||||||||||
Gross loans | 648,278 | 648,663 | 595,755 | 589,604 | 547,687 | ||||||||||||||
Net deferred loan costs | 1,413 | 1,262 | 1,201 | 1,046 | 1,100 | ||||||||||||||
Gross loans, net | $ | 649,691 | $ | 649,925 | $ | 596,956 | $ | 590,650 | $ | 548,787 | |||||||||
Loans held-for-sale | $ | 17,809 | $ | 21,043 | $ | 25,286 | $ | 16,543 | $ | 21,267 | |||||||||
Gross loans, net, including loans held-for-sale | $ | 667,500 | $ | 670,968 | $ | 622,242 | $ | 607,193 | $ | 570,054 | |||||||||
Loan-to-deposit (LTD) ratio: | 95.5 | % | 96.3 | % | 92.6 | % | 97.0 | % | 95.8 | % | |||||||||
LTD ratio including loans held-for-sale | 98.1 | % | 99.4 | % | 96.5 | % | 99.7 | % | 99.5 | % | |||||||||
At December 31, 2015, gross loans including loans held-for-sale were $667.5 million, a decrease of $3.5 million, or 0.5%, from $671.0 million at September 30, 2015 and an increase of $97.4 million, or 17.1%, from $570.1 million at the end of last year. During the fourth quarter of 2015, total new loan production, including revolving lines of credit, was $76.4 million, compared to $113.4 million for the prior quarter and $99.9 million for the same quarter last year. The decline in the current quarter loan production was due to seasonal trends and increased market competition. For the full year 2015, total new loan production, including revolving lines of credit, was $361.5 million, compared to $344.0 million in 2014. As discussed earlier, during the current year we sold $111.1 million of SBA loans, compared to $107.1 million in 2014.
Deposits
The following table sets forth the amount of deposits by category at the dates indicated:
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 163,385 | 24.0 | % | $ | 145,348 | 21.5 | % | $ | 140,284 | 21.8 | % | $ | 134,999 | 22.2 | % | $ | 125,893 | 22.0 | % | ||||||||||||||
Money market & NOW | 133,343 | 19.6 | % | 141,722 | 21.0 | % | 134,731 | 20.9 | % | 143,313 | 23.5 | % | 152,503 | 26.6 | % | |||||||||||||||||||
Savings | 8,845 | 1.3 | % | 7,354 | 1.1 | % | 7,482 | 1.2 | % | 7,345 | 1.2 | % | 8,805 | 1.5 | % | |||||||||||||||||||
Time deposits | 374,939 | 55.1 | % | 380,801 | 56.4 | % | 362,149 | 56.2 | % | 323,236 | 53.1 | % | 285,611 | 49.9 | % | |||||||||||||||||||
Total Deposits | $ | 680,512 | 100.0 | % | $ | 675,225 | 100.0 | % | $ | 644,646 | 100.0 | % | $ | 608,893 | 100.0 | % | $ | 572,812 | 100.0 | % | ||||||||||||||
Cost of deposits for the quarter | 0.79 | % | 0.79 | % | 0.76 | % | 0.76 | % | 0.75 | % | ||||||||||||||||||||||||
Total deposits were $680.5 million at quarter end, an increase of $5.3 million, or 0.8%, compared to $675.2 million at the end of the prior quarter and an increase of $107.7 million, or 18.8%, compared to at the end of last year. Noninterest-bearing deposits grew $18.0 million, or 12.4% to $163.4 million during the quarter and increased $37.5 million, or 29.8%, from December 31, 2014. Noninterest-bearing deposits to total deposits were 24.0%, 21.5% and 22.0% at December 31, 2015, September 30, 2015 and December 31, 2014, respectively. Despite the proportional increase in noninterest-bearing deposits, our cost of deposits remained constant at 0.79% quarter-over-quarter and increased 4 basis points from 0.75% for the same quarter last year due to a higher proportional increase in higher-cost time deposits.
ASSET QUALITY
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Delinquent Loans: |
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Loans 30-89 days past due | $ | 175 | $ | 1,369 | $ | 92 | $ | 18 | $ | 83 | |||||||||||
90 days or more past due and still accruing | - | - | - | - | - | ||||||||||||||||
Nonaccrual | 2,878 | 2,682 | 1,930 | 2,162 | 2,175 | ||||||||||||||||
Total delinquent loans |
$ | 3,053 | $ | 4,051 | $ | 2,022 | $ | 2,180 | $ | 2,258 | |||||||||||
Nonperforming Assets: |
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Over 90 days still accruing | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Nonaccrual loans ¹ | 2,878 | 2,682 | 1,930 | 2,162 | 2,175 | ||||||||||||||||
Performing TDR loans | 4,341 | 4,422 | 5,619 | 5,815 | 6,023 | ||||||||||||||||
Total nonperforming loans | 7,219 | 7,104 | 7,549 | 7,977 | 8,198 | ||||||||||||||||
Other real estate owned | - | - | - | - | - | ||||||||||||||||
Total nonperforming assets | $ | 7,219 | $ | 7,104 | $ | 7,549 | $ | 7,977 | $ | 8,198 | |||||||||||
Nonaccrual loans to gross loans | 0.44 | % | 0.41 | % | 0.32 | % | 0.37 | % | 0.40 | % | |||||||||||
Nonperforming loans to gross loans (exc. LHFS) | 1.11 | % | 1.09 | % | 1.26 | % | 1.35 | % | 1.49 | % | |||||||||||
Total nonperforming assets to total assets | 0.92 | % | 0.91 | % | 1.01 | % | 1.13 | % | 1.25 | % | |||||||||||
Classified Loans: ¹ |
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Substandard | $ | 7,056 | $ | 7,483 | $ | 6,471 | $ | 6,910 | $ | 7,110 | |||||||||||
Doubtful | - | - | - | - | - | ||||||||||||||||
Loss | - | - | - | - | - | ||||||||||||||||
Total classified assets | $ | 7,056 | $ | 7,483 | $ | 6,471 | $ | 6,910 | $ | 7,110 | |||||||||||
Classified assets to total assets | 0.90 | % | 0.96 | % | 0.87 | % | 0.98 | % | 1.09 | % | |||||||||||
Classified assets to Tier 1 and ALLL | 7.16 | % | 7.75 | % | 6.95 | % | 7.70 | % | 8.38 | % |
1. Net of SBA guaranteed balance.
The increase in nonaccrual loans during the current quarter was primarily due to a single C&I loan with a net outstanding balance of $250,000 after a charge-off $1.2 million.
The allowance for loan losses at December 31, 2015 was $8.5 million, or 1.32% of gross loans excluding loans held-for-sale, compared to $9.2 million, or 1.42%, at September 30, 2015, and $9.0 million, or 1.64%, at December 31, 2014. The Bank recorded a $500,000 provision for loan losses in the current year, compared to a $378,000 negative provision for loan losses in 2014. The $500,000 provision for loan losses was primarily due to organic loan growth and an increase in the historical loss rate for C&I loans during the current quarter, which resulted from aforementioned charge-off.
CAPITAL
Effective January 1, 2015, the federal banking regulators changed the ratios and ratio thresholds for capital evaluations to conform to the prompt corrective action and the Basel III capital rules. As of December 31, 2015, the impact of such changes on capital was minor and the Bank exceeded the regulatory capital requirements under the new Basel III capital rules to be classified as "well-capitalized."
Well-Capitalized | Well-Capitalized | |||||||||||||||||
Regulatory |
December 31,
2015 |
September 30,
2015 |
Regulatory |
December 31,
2014 |
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Leverage ratio | 5.00 | % | 11.68 | % | 11.40 | % | 5.00 | % | 11.75 | % | ||||||||
Common equity tier 1 capital ratio | 6.50 | % | 13.26 | % | 12.84 | % | N/A | N/A | ||||||||||
Tier 1 risk-based ratio | 8.00 | % | 13.26 | % | 12.84 | % | 6.00 | % | 13.19 | % | ||||||||
Total risk-based ratio | 10.00 | % | 14.51 | % | 14.10 | % | 10.00 | % | 14.45 | % | ||||||||
ABOUT COMMONWEALTH BUSINESS BANK ("CBB BANK")
Commonwealth Business Bank is a full-service commercial bank also doing business as "CBB Bank," and specializes in small- to medium-sized businesses. CBB has five full service branches in Los Angeles and Orange Counties and four loan production offices in Texas, Georgia and Colorado.
For additional information, please visit CBB's website at www.cbb-bank.com.
NON-GAAP FINANCIAL MEASURES
CBB may use certain non-GAAP financial measures to provide meaningful supplemental information regarding CBB's operational performance and to enhance investors' overall understanding of such financial performance. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under the GAAP.
FORWARD-LOOKING STATEMENTS
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to, fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which Commonwealth Business Bank is conducting its operations, including the real estate market in California, and other factors beyond Commonwealth Business Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Commonwealth Business Bank undertakes no obligation to revise these forward-looking statements publicly to reflect subsequent events or circumstances.
BALANCE SHEET (Unaudited) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
December 31, | September 30, | % | December 31, | % | ||||||||||||||
2015 | 2015 | Change | 2014 | Change | ||||||||||||||
ASSETS | ||||||||||||||||||
Cash and due from banks | $ | 7,878 | $ | 7,118 | 10.7 | % | $ | 5,874 | 34.1 | % | ||||||||
Interest-earning due from FRB and other banks | 88,951 | 80,077 | 11.1 | % | 56,901 | 56.3 | % | |||||||||||
Investment securities | 4,363 | 4,485 | -2.7 | % | 7,058 | -38.2 | % | |||||||||||
Loans held-for-sale, at the lower of cost or fair value | 17,809 | 21,043 | -15.4 | % | 21,267 | -16.3 | % | |||||||||||
Loans | 649,691 | 649,925 | 0.0 | % | 548,787 | 18.4 | % | |||||||||||
Allowance for loan losses | (8,546 | ) | (9,238 | ) | -7.5 | % | (8,977 | ) | -4.8 | % | ||||||||
Loans receivable, net | 641,145 | 640,687 | 0.1 | % | 539,810 | 18.8 | % | |||||||||||
FHLB & FRB stock | 4,853 | 4,781 | 1.5 | % | 4,171 | 16.4 | % | |||||||||||
Other assets | 21,424 | 20,616 | 3.9 | % | 18,369 | 16.6 | % | |||||||||||
TOTAL ASSETS | $ | 786,423 | $ | 778,807 | 1.0 | % | $ | 653,450 | 20.3 | % | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
Noninterest-bearing | $ | 163,385 | $ | 145,348 | 12.4 | % | $ | 125,893 | 29.8 | % | ||||||||
Interest-bearing | 517,127 | 529,877 | -2.4 | % | 446,919 | 15.7 | % | |||||||||||
Total deposits | 680,512 | 675,225 | 0.8 | % | 572,812 | 18.8 | % | |||||||||||
FHLB advances | 10,000 | 10,000 | 0.0 | % | - | 100.0 | % | |||||||||||
Other liabilities | 5,924 | 6,322 | -6.3 | % | 4,772 | 24.1 | % | |||||||||||
Total liabilities | 696,436 | 691,547 | 0.7 | % | 577,584 | 20.6 | % | |||||||||||
Stockholders' Equity | 89,987 | 87,260 | 3.1 | % | 75,866 | 18.6 | % | |||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 786,423 | $ | 778,807 | 1.0 | % | $ | 653,450 | 20.3 | % | ||||||||
STATEMENT OF INCOME (Unaudited) | |||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
December 31, | September 30, | % | December 31, | % | December 31, | December 31, | % | ||||||||||||||||||
2015 |
2015 | Change | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||||
Interest income | $ | 8,917 | $ | 8,617 | 3.5 | % | $ | 7,388 | 20.7 | % | $ | 33,523 | $ | 27,113 | 23.6 | % | |||||||||
Interest expense | 1,355 | 1,351 | 0.3 | % | 1,065 | 27.2 | % | 5,011 | 4,251 | 17.9 | % | ||||||||||||||
Net interest income | 7,562 | 7,266 | 4.1 | % | 6,323 | 19.6 | % | 28,512 | 22,862 | 24.7 | % | ||||||||||||||
Provision for loan losses | 350 | 150 | 133.3 | % | 800 | -56.3 | % | 500 | (378 | ) | -232.3 | % | |||||||||||||
Net interest income after provision for loan losses | 7,212 | 7,116 | 1.3 | % | 5,523 | 30.6 | % | 28,012 | 23,240 |
20.5 |
% | ||||||||||||||
Gain on sale of loans | 2,333 | 1,801 | 29.5 | % | 2,281 | 2.3 | % | 8,524 | 9,391 | -9.2 | % | ||||||||||||||
Service charges and other income | 775 | 664 | ¹ | 16.7 | % | 649 | ¹ | 19.4 | % | 2,616 | 2,534 | ¹ | 3.2 | % | |||||||||||
Noninterest income | 3,108 | 2,465 | 26.1 | % | 2,930 | 6.1 | % | 11,140 | 11,925 | -6.6 | % | ||||||||||||||
Salaries and employee benefits | 3,319 | 3,178 | 4.4 | % | 2,643 | 25.6 | % | 12,501 | 10,510 | 18.9 | % | ||||||||||||||
Occupancy and equipment | 503 | 489 | 2.9 | % | 513 | -1.9 | % | 1,968 | 1,663 | 18.3 | % | ||||||||||||||
Other expenses | 2,200 | 902 | ¹ | 143.9 | % | 1,164 | ¹ | 89.0 | % | 5,447 | 3,861 | ¹ | 41.1 | % | |||||||||||
Noninterest expense | 6,022 | 4,569 | 31.8 | % | 4,320 | 39.4 | % | 19,916 | 16,034 | 24.2 | % | ||||||||||||||
Income before Income Taxes | 4,298 | 5,012 | -14.2 | % | 4,133 | 4.0 | % | 19,236 | 19,131 | 0.5 | % | ||||||||||||||
Income tax provision | 1,752 | 2,079 | -15.7 | % | 1,761 | -0.5 | % | 7,961 | 7,957 | 0.1 | % | ||||||||||||||
Net income | $ | 2,546 | $ | 2,933 | -13.2 | % | $ | 2,372 | 7.3 | % | $ | 11,275 | $ | 11,174 | 0.9 | % | |||||||||
Weighted average shares for basic EPS | 8,103,456 | 8,091,332 | 0.1 | % | 7,758,086 | 4.5 | % | 8,030,258 | 7,731,154 | 3.9 | % | ||||||||||||||
Weighted average shares for diluted EPS | 8,364,379 | 8,360,698 | 0.0 | % | 8,258,676 | 1.3 | % | 8,339,577 | 8,226,152 | 1.4 | % | ||||||||||||||
Basic EPS | $ | 0.31 | $ | 0.36 | -13.9 | % | $ | 0.31 | 0.0 | % | $ | 1.40 | $ | 1.45 | -3.4 | % | |||||||||
Diluted EPS | $ | 0.30 | $ | 0.35 | -14.3 | % | $ | 0.29 | 3.4 | % | $ | 1.35 | $ | 1.36 | -0.7 | % | |||||||||
Note: All earnings per share data, including weighted average common shares outstanding has been retroactively adjusted to reflect the 2:1 stock split in March 2015. |
1. Restated due to the reclassification of certain SBA fees
SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | ||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
December 31, | September 30, | % | December 31, | % | December 31, | December 31, | % | |||||||||||||||||||||||
2015 | 2015 | Change | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||||||
Performance Ratios: |
||||||||||||||||||||||||||||||
Return on average assets | 1.31 | % | 1.52 | % | -13.8 | % | 1.46 | % | -10.3 | % | 1.55 | % | 1.84 | % | -15.6 | % | ||||||||||||||
Return on average equity | 11.31 | % | 13.58 | % | -16.7 | % | 12.56 | % | -10.0 | % | 13.44 | % | 15.96 | % | -15.8 | % | ||||||||||||||
Net interest margin | 4.00 | % | 3.86 | % | 3.6 | % | 3.98 | % | 0.5 | % | 4.02 | % | 3.84 | % | 4.8 | % | ||||||||||||||
Cost of funds | 0.80 | % | 0.80 | % | 0.0 | % | 0.75 | % | 6.7 | % | 0.79 | % | 0.80 | % | -1.6 | % | ||||||||||||||
Efficiency ratio | 56.44 | % | 46.95 | % | ¹ | 20.2 | % | 46.69 | % | ¹ | 20.9 | % | 50.23 | % | 46.09 | % | ¹ | 9.0 | % | |||||||||||
Capital Ratios: |
||||||||||||||||||||||||||||||
Core capital (leverage) ratio | 11.68 | % | 11.40 | % | 2.5 | % | 11.75 | % | -0.6 | % | 11.68 | % | 11.75 | % | -0.6 | % | ||||||||||||||
Tier 1 risk-based capital ratio | 13.26 | % | 12.84 | % | 3.3 | % | 13.19 | % | 0.5 | % | 13.26 | % | 13.19 | % | 0.5 | % | ||||||||||||||
Total risk-based capital ratio | 14.51 | % | 14.10 | % | 2.9 | % | 14.45 | % | 0.4 | % | 14.51 | % | 14.45 | % | 0.4 | % | ||||||||||||||
Tangible common equity / total assets | 11.44 | % | 11.20 | % | 2.1 | % | 11.61 | % | -1.4 | % | 11.44 | % | 11.61 | % | -1.4 | % | ||||||||||||||
Tangible common equity per share | $ | 11.06 | $ | 10.78 | 2.6 | % | $ | 10.03 | 10.3 | % | $ | 11.06 | $ | 9.77 | 13.2 | % | ||||||||||||||
Selected Average Balances: |
||||||||||||||||||||||||||||||
Gross loans, net ² | $ | 666,831 | $ | 647,725 | 2.9 | % | $ | 558,405 | 19.4 | % | $ | 624,870 | $ | 509,677 | 22.6 | % | ||||||||||||||
Total investment securities | 4,448 | 7,331 | -39.3 | % | 7,122 | -37.5 | % | 5,945 | 7,298 | -18.5 | % | |||||||||||||||||||
Interest-earning assets | 749,850 | 745,895 | 0.5 | % | 630,793 | 18.9 | % | 708,506 | 596,080 | 18.9 | % | |||||||||||||||||||
Total assets | 768,885 | 763,574 | 0.7 | % | 645,492 | 19.1 | % | 725,773 | 608,606 | 19.3 | % | |||||||||||||||||||
Noninterest-bearing deposits | 140,452 | 131,954 | 6.4 | % | 126,204 | 11.3 | % | 126,424 | 106,166 | 19.1 | % | |||||||||||||||||||
Total deposits | 662,374 | 661,463 | 0.1 | % | 565,690 | 17.1 | % | 626,666 | 534,247 | 17.3 | % | |||||||||||||||||||
Interest-bearing liabilities | 531,922 | 539,509 | -1.4 | % | 439,486 | 21.0 | % | 509,898 | 428,082 | 19.1 | % | |||||||||||||||||||
Stockholders' equity | 89,271 | 85,667 | 4.2 | % | 74,899 | 19.2 | % | 83,894 | 69,992 | 19.9 | % |
1. Restated due to the reclassification of certain SBA fees
2.
Includes loans held-for-sale.
SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||
Allowance for Loan Losses: |
|||||||||||||||||||||
Balance at beginning of period | $ | 9,238 | $ | 9,039 | $ | 8,995 | $ | 8,977 | $ | 8,860 | |||||||||||
Provision for loan losses | 350 | 150 | - | - | 540 | ||||||||||||||||
Charge-offs | 1,227 | - | 19 | 7 | 455 | ||||||||||||||||
Recoveries | 185 | 49 | 63 | 25 | 32 | ||||||||||||||||
Balance at the end of period | $ | 8,546 | $ | 9,238 | $ | 9,039 | $ | 8,995 | $ | 8,977 | |||||||||||
Nonperforming Assets: |
|||||||||||||||||||||
Over 90 days still accruing | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Nonaccrual loans ¹ | 3,167 | 2,682 | 1,930 | 2,162 | 2,175 | ||||||||||||||||
Performing TDR loans | 4,341 | 4,422 | 5,619 | 5,815 | 6,023 | ||||||||||||||||
Total nonperforming loans | 7,508 | 7,104 | 7,549 | 7,977 | 8,198 | ||||||||||||||||
Other real estate owned | - | - | - | - | - | ||||||||||||||||
Total nonperforming assets | $ | 7,508 | $ | 7,104 | $ | 7,549 | $ | 7,977 | $ | 8,198 | |||||||||||
Classified Loans:¹ |
|||||||||||||||||||||
Substandard | $ | 7,056 | $ | 7,483 | $ | 6,471 | $ | 6,910 | $ | 7,110 | |||||||||||
Doubtful | - | - | - | - | - | ||||||||||||||||
Loss | - | - | - | - | - | ||||||||||||||||
Total classified assets | $ | 7,056 | $ | 7,483 | $ | 6,471 | $ | 6,910 | $ | 7,110 | |||||||||||
Delinquent Loans: |
|||||||||||||||||||||
Loans 30-89 days past due | $ | 175 | $ | 1,369 | $ | 92 | $ | 18 | $ | 83 | |||||||||||
90 days or more past due and still accruing | - | - | - | - | - | ||||||||||||||||
Nonaccrual | 3,167 | 2,682 | 1,930 | 2,162 | 2,175 | ||||||||||||||||
Total delinquent loans | $ | 3,342 | $ | 4,051 | $ | 2,022 | $ | 2,180 | $ | 2,258 | |||||||||||
Asset Quality Ratios: |
|||||||||||||||||||||
Net charge-offs to average gross loans ² | 0.62 | % | -0.03 | % | -0.03 | % | -0.01 | % | 0.30 | % | |||||||||||
Nonaccrual loans to gross loans | 0.49 | % | 0.41 | % | 0.32 | % | 0.37 | % | 0.40 | % | |||||||||||
Total NPA to total assets | 0.95 | % | 0.91 | % | 1.01 | % | 1.13 | % | 1.25 | % | |||||||||||
Classified assets to total assets | 0.90 | % | 0.96 | % | 0.87 | % | 0.98 | % | 1.09 | % | |||||||||||
Classified assets to Tier 1 and ALLL | 7.16 | % | 7.75 | % | 6.95 | % | 7.70 | % | 8.38 | % | |||||||||||
Nonperforming loans to gross loans (exc. LHFS) | 1.16 | % | 1.09 | % | 1.26 | % | 1.35 | % | 1.49 | % | |||||||||||
ALLL to gross loans (exc. LHFS) | 1.32 | % | 1.42 | % | 1.51 | % | 1.52 | % | 1.64 | % | |||||||||||
ALLL to nonaccrual loans | 269.85 | % | 344.44 | % | 468.34 | % | 416.05 | % | 412.74 | % | |||||||||||
ALLL to nonperforming loans | 113.83 | % | 130.04 | % | 119.74 | % | 112.76 | % | 109.50 | % | |||||||||||
Texas ratio ³ | 7.62 | % | 7.36 | % | 8.11 | % | 8.89 | % | 9.66 | % |
(1) Net of SBA guaranteed balance.
(2) Includes loans
held-for-sale.
(3) Nonperforming assets divided by tangible
common equity and ALLL.
MARGIN ANALYSIS (Unaudited) | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
December 31, 2015 | September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | |||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||
Loans ¹ | $ | 666,831 | $ | 8,746 | 5.20 | % | $ | 647,725 | $ | 8,425 | 5.16 | % | $ | 558,405 | $ | 7,229 | 5.14 | % | |||||||||||
Investment securities | 4,448 | 22 | 1.96 | % | 7,331 | 37 | 2.00 | % | 7,122 | 40 | 2.23 | % | |||||||||||||||||
Interest-earning due from FRB and other banks | 73,735 | 59 | 0.32 | % | 86,058 | 60 | 0.28 | % | 61,095 | 51 | 0.33 | % | |||||||||||||||||
Other earning assets | 4,836 | 90 | 7.38 | % | 4,781 | 95 | 7.88 | % | 4,171 | 68 | 6.49 | % | |||||||||||||||||
Total interest-earning assets | 749,850 | 8,917 | 4.72 | % | 745,895 | 8,617 | 4.58 | % | 630,793 | 7,388 | 4.65 | % | |||||||||||||||||
NONINTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||
Cash and due from banks | 7,274 | 7,324 | 6,680 | ||||||||||||||||||||||||||
Other noninterest-earning assets | 20,535 | 19,411 | 16,889 | ||||||||||||||||||||||||||
Total noninterest-earning assets | 27,809 | 26,735 | 23,569 | ||||||||||||||||||||||||||
Less: Allowance for loan losses | (8,774 | ) | (9,056 | ) | (8,870 | ) | |||||||||||||||||||||||
TOTAL ASSETS | $ | 768,885 | $ | 763,574 | $ | 645,492 | |||||||||||||||||||||||
INTEREST-BEARING DEPOSITS | |||||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,026 | $ | - | 0.15 | % | $ | 1,271 | $ | - | 0.15 | % | $ | 621 | $ | - | 0.15 | % | |||||||||||
Money market | 135,415 | 306 | 0.90 | % | 138,731 | 318 | 0.91 | % | 153,864 | 361 | 0.93 | % | |||||||||||||||||
Savings | 8,071 | 37 | 1.82 | % | 7,408 | 35 | 1.87 | % | 9,224 | 50 | 2.15 | % | |||||||||||||||||
Time deposits | 377,410 | 970 | 1.02 | % | 382,099 | 957 | 0.99 | % | 275,777 | 654 | 0.94 | % | |||||||||||||||||
Total interest-bearing deposits | 521,922 | 1,313 | 1.00 | % | 529,509 | 1,310 | 0.98 | % | 439,486 | 1,065 | 0.96 | % | |||||||||||||||||
Borrowings | 10,000 | 42 | 1.65 | % | 10,000 | 41 | 1.65 | % | - | - | - | ||||||||||||||||||
Total interest-bearing liabilities | 531,922 | 1,355 | 1.01 | % | 539,509 | 1,351 | 0.99 | % | 439,486 | 1,065 | 0.96 | % | |||||||||||||||||
Noninterest-bearing deposits | 140,452 | 131,954 | 126,204 | ||||||||||||||||||||||||||
Other liabilities | 7,240 | 6,444 | 4,903 | ||||||||||||||||||||||||||
Stockholders' equity | 89,271 | 85,667 | 74,899 | ||||||||||||||||||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|
$ | 768,885 | $ | 763,574 | $ | 645,492 | |||||||||||||||||||||||
Net interest income | $ | 7,562 | $ | 7,266 | $ | 6,323 | |||||||||||||||||||||||
Net interest spread | 3.71 | % | 3.59 | % | 3.69 | % | |||||||||||||||||||||||
Net interest margin | 4.00 | % | 3.86 | % | 3.98 | % | |||||||||||||||||||||||
Cost of funds | 0.80 | % | 0.80 | % | 0.75 | % |
(1) Includes loans-held-for-sale.
MARGIN ANALYSIS (Twelve Months) (Unaudited) |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
|
Twelve Months Ended |
||||||||||||||||||
December 31, 2015 |
December 31, 2014 |
||||||||||||||||||
Avg Balance |
Interest |
Yield |
Avg Balance |
Interest |
Yield |
||||||||||||||
|
|||||||||||||||||||
INTEREST-EARNING ASSETS |
|||||||||||||||||||
Loans ¹ | $ | 624,870 | $ | 32,765 | 5.24 | % | $ | 509,677 | $ | 26,464 | 5.19 | % | |||||||
Investment securities | 5,945 | 121 | 2.04 | % | 7,298 | 160 | 2.19 | % | |||||||||||
Interest-earning due from banks | 73,083 | 222 | 0.30 | % | 75,041 | 227 | 0.30 | % | |||||||||||
Other earning assets | 4,608 | 415 | 9.01 | % | 4,064 | 262 | 6.44 | % | |||||||||||
Total interest-earning assets | 708,506 | 33,523 | 4.73 | % | 596,080 | 27,113 | 4.55 | % | |||||||||||
NONINTEREST-EARNING ASSETS | |||||||||||||||||||
Cash and due from banks | 6,992 | 6,356 | |||||||||||||||||
Other noninterest-earning assets | 19,232 | 15,121 | |||||||||||||||||
Total noninterest-earning assets | 26,224 | 21,477 | |||||||||||||||||
Less: Allowance for loan losses | (8,957 | ) | (8,951 | ) | |||||||||||||||
TOTAL ASSETS | $ | 725,773 | $ | 608,606 | |||||||||||||||
INTEREST-BEARING DEPOSITS | |||||||||||||||||||
Interest-bearing demand | $ | 1,027 | $ | 2 | 0.15 | % | $ | 431 | $ | - | 0.15 | % | |||||||
Money market | 139,853 | 1,260 | 0.90 | % | 152,567 | 1,476 | 0.97 | % | |||||||||||
Savings | 7,653 | 139 | 1.82 | % | 8,974 | 208 | 2.31 | % | |||||||||||
Time deposits | 351,709 | 3,451 | 0.98 | % | 266,109 | 2,567 | 0.96 | % | |||||||||||
Total interest-bearing deposits | 500,242 | 4,852 | 0.97 | % | 428,081 | 4,251 | 0.99 | % | |||||||||||
Short-term borrowings | 9,656 | 159 | 1.65 | % | 1 | - | 0.39 | % | |||||||||||
Total interest-bearing liabilities | 509,898 | 5,011 | 0.98 | % | 428,082 | 4,251 | 1.00 | % | |||||||||||
Noninterest-bearing deposits | 126,424 | 106,166 | |||||||||||||||||
Other Liabilities | 5,557 | 4,366 | |||||||||||||||||
Stockholders' equity | 83,894 | 69,992 | |||||||||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 725,773 | $ | 608,606 | |||||||||||||||
Net interest income | $ | 28,512 | $ | 22,862 | |||||||||||||||
Net interest spread | 3.75 | % | 3.56 | % | |||||||||||||||
Net interest margin | 4.02 | % | 3.84 | % | |||||||||||||||
Cost of funds | 0.79 | % | 0.80 | % |
(1) Includes loans-held-for-sale.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160129005166/en/
Commonwealth Business Bank
Michael W. McCall
EVP & CFO
(323)
988-3144
MichaelM@cbb-bank.com
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