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CBBC Bancorp Reports December 31, 2017, Quarter-End Results

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CBBC Bancorp (OTC:CBBC) (the "Bank") announced today the results for
the year ended December 31, 2017, of $3.1 million, or $1.20 per diluted
share, compared with operating net income at December 31, 2016, of $3.0
million, or $1.39 per diluted share. In the fourth quarter of 2017, the
Bank expensed $610,000 of its deferred tax asset as a result of the Tax
Cuts and Job Act of 2017. This nonrecurring charge of $0.24 per share
will be offset with the lower corporate tax rates now in effect and
should be recovered over the next year. The Bank retired 100% of its
outstanding preferred stock at a 10% discount during the second quarter
of 2016. This nonrecurring event favorably impacted the Bank's earnings
available to common stock shareholders by $0.17 per share.

For the fourth quarter of 2017, the Bank earned net income of $399,000,
or $0.15 per diluted share, compared with net income of $749,000, or
$0.30 per diluted share, for the same period ending December 31, 2016.
During the fourth quarter of 2017 the Bank recorded $1.4 million in
income tax expense ($758,000 without the $610,000 tax adjustment)
compared to $445,000 in the fourth quarter of 2016. This nonrecurring
event unfavorably impacted the Bank's earnings available to common stock
shareholders by $0.24 per share.

Net interest income increased to $12.6 million for the year ended
December 31, 2017, compared with $11.0 million the prior year. This
increase was due primarily to higher volume in loans and securities as
of December 31, 2017, than in the prior year. The Bank's YTD net
interest margin dropped 13 basis points over this same time frame. The
fourth quarter 2017 net interest margin actually increased 18 basis
points to 4.12% from fourth quarter 2016 primarily due to higher loan
yields. Total loans were $240.8 million and $211.3 million as of
December 31, 2017, and December 31, 2016, respectively, representing an
increase of $29.5 million, or 14%. Investment totals reflected an
increase of $7.9 million, or 10%, ending 2017 at $88.5 million as
compared to $80.6 million as of December 31, 2016.

The Bank realized an increase in deposits of $27.9 million, or 11%, as
of December 31, 2017, compared with December 31, 2016. This deposit
increase was primarily in DDA deposits, up $9.0 million, or 10%; time
deposits, up $9.5 million, or 18%; and wholesale deposits, up $9.6
million, or 29%, as of December 31, 2017, as compared to December 31,
2016.

Noninterest income was $701,000 for the year ended December 31, 2017, as
compared to $822,000 for the similar period in the prior year. This
decrease of $121,000 was primarily due to lower levels of gains on loan
sales. Gains on loan sales were lower by $89,000 at December 31, 2017,
over year-end 2016. Noninterest expense for the year ended December 31,
2017, was $7.25 million, up $736,000 from December 31, 2016. This was
primarily due to an increase of $503,000 in other noninterest expense
due to higher professional fees (primarily merger-related costs),
promotional-related expenses, and other operating and organizational
expenses. The Bank's efficiency ratio remained low, staying at 54% as of
December 31, 2017, equal to 54% as of December 31, 2016.

Total assets as of December 31, 2017, were $335.6 million as compared
with $303.8 million as of December 31, 2016, an increase of 11%. The
Bank's loan-to-deposit ratio as of December 31, 2017 was 84.7%, up from
82.4% as of December 31, 2016.

The Bank's capital ratios remain very strong. Total risk-based capital
ratio was 13.9% and the equity ratio was 9.8% as of December 31, 2017.
These ratios were 13.2% and 9.9% respectively, as of December 31, 2016.
The December 31, 2017, risk-based capital ratio reflects $7.8 million in
excess capital (i.e., the amount in reserve above the 10%
"Well-Capitalized" level as defined by the regulators).

The Bank's ALLL was 1.05% as of December 31, 2017, down from 1.21% as of
December 31, 2016. This decrease was due to stable loan quality and
favorable economic conditions. The Bank did not recognize a provision
for loan losses in 2017; a provision of $420,000 was recorded in 2016.
The Bank's total NPAs (nonaccrual loans + OREO) were zero as of December
31, 2017, consistent with the balance as of the same period in 2016.

About Community Business Bancorp

Community Business Bancorp's market area includes the greater Yolo,
Solano, Sacramento, San Joaquin, and contiguous counties. The Bank
focuses on and provides highly personalized commercial banking services
to businesses, professionals, and nonprofit organizations. The Bank's
Call Reports are available for review or download directly from the FDIC
website at www.fdic.gov,
or through the link at the Bank's website at CommunityBizBank.com.

Forward-Looking Statement

Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve
known and unknown risks, uncertainties, and factors such as: (1) the
impact of changes in interest rates, (2) fluctuation in economic
conditions and continued deterioration of the real estate market, (3)
competition in the Bank's defined market, (4) the Bank's ability to
sustain its internal growth rate and to preserve its earning assets
quality, and (5) government regulations. Although the Bank believes the
expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that these expectations will prove
to have been correct.

FINANCIAL TABLES FOLLOW

 
Consolidated
   

 

Actual
Dec. 2017

 

Actual
Dec. 2016

Assets
Cash and due from banks $ 2,518,586 $ 2,830,307
Fed funds sold 109,000 6,157,000
Investment securities 88,512,155 80,574,101
 
Loans, net of unearned income 240,810,778 211,294,613
Less: Allowance for loan losses   (2,521,213 )     (2,555,695 )
Net loans 238,289,565 208,738,918
Premises and equipment, net 377,733 172,117
Accrued interest receivable 1,397,232 1,133,291
Other assets   4,357,001       4,828,531  
Total assets $ 335,561,272     $ 304,434,265  
 
Liabilities & Shareholders' Equity
Non-interest bearing deposits 102,692,092 93,699,214
Interest-bearing deposits:
Core deposits (including CDARs) 152,604,158 139,981,364
Brokered deposits   28,964,000       22,675,951  
Total deposits 284,260,250 256,356,529
Accrued expenses / other liabilities   18,781,739       18,881,278  
Total liabilities 303,041,989 275,237,807
Total shareholders' equity   32,519,283       29,196,458  
Total liabilities & shareholders' equity $ 335,561,272     $ 304,434,265  
         
BV per share (net of OCI)   $ 13.14     $ 12.17  
 
YTD
Actual
Dec. 2017
 

YTD
Actual
Dec. 2016

Net interest income $ 12,567,846 $ 11,019,104
Provision for loan losses 0 420,000
Noninterest income 701,397 822,295
Noninterest expense   7,248,369       6,512,799  
Income before taxes 6,020,874 4,908,600
Income taxes   2,935,997       1,870,800  
Net income $ 3,084,877     $ 3,037,800  
Basic EPS $ 1.26 $ 1.26
Diluted EPS $ 1.20 $ 1.22
Diluted EPS-revised [1] N/A $ 1.39
         
Return on Average Assets (ROAA) 0.97 % 1.12 %
Return on Average Equity (ROAE) 10.58 % 10.12 %
Net Interest Margin     4.04 %     4.17 %

 

QTD
Actual
Dec. 2017
  QTD
Actual
Dec. 2016
Net interest income $ 3,465,547 $ 2,905,343
Provision for loan losses 0 105,000
Noninterest income 108,505 186,876
Noninterest expense   1,806,804       1,792,967  
Income before taxes 1,767,248 1,194,252
Income taxes [1]   1,367,997       445,000  
Net income $ 399,251     $ 749,252  
Basic EPS $ 0.16 $ 0.31
Diluted EPS $ 0.15 $ 0.30
Diluted EPS-revised [2] N/A N/A
         
Return on Average Assets (ROAA) 0.47 % 0.99 %
Return on Average Equity (ROAE) 4.85 % 10.01 %
Net Interest Margin     4.12 %     3.94 %
 
[1]: Includes additional tax expense of $610,000, or $0.24 per share due
to the revaluation of the Bank's deferred tax asset in the fourth
quarter of 2017 as a result of the Tax Cuts and Job Act of 2017.
[2]: Includes $0.17 increase in earnings per share due to discount
received on repurchase of 100% of outstanding preferred stock in the
second quarter of 2016.

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