Market Overview

CBBC Bancorp Reports March 31, 2018 Quarter-End Results

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CBBC Bancorp (OTC:CBBC) (the "Bank") announced today the results for
the quarter ended March 31, 2018, of $1.0 million, or $0.40 per diluted
share, compared with net income in the first quarter of 2017 of $0.8
million, or $0.31 per diluted share.

Net interest income increased to $3.2 million for the quarter ended
March 31, 2018, compared with $2.9 million in the first quarter of the
prior year. The Bank's first quarter 2018 net interest margin increased
10 basis points over this same time frame. This increase was due
primarily to higher volume in loans and loan yields as of March 31,
2018, compared to March 31, 2017. Total loans were $242.4 million and
$215.7 million as of March 31, 2018 and March 31, 2017, respectively,
representing an increase of $26.7 million, or 12%. Investment totals
reflected a decrease of $10.6 million, or 13%, as of March 31, 2018, to
$71.1 million, as compared to $81.7 million as of March 31, 2017, as
maturing short-term holdings were used to fund loan growth.

The Bank realized an increase in deposits of $10.4 million, or 4%, as of
March 31, 2018, compared with March 31, 2017. This deposit increase was
primarily in DDA deposits, up $16.8 million, or 18%, and wholesale
deposits, up $12.5 million, or 63%, partially offset by decreases in
time deposits, down $15.7 million, or 27%, and savings and money market
deposits, down $3.2 million, or 5%, as of March 31, 2018, as compared to
March 31, 2017.

Noninterest income was $118,000 as of March 31, 2018, as compared to
$96,000 for the similar period in the prior year. This increase of
$23,000 was primarily due to higher levels of service charge fee income
(up $32,000). Noninterest expense as of March 31, 2018, was $1.81
million, up $51,000 from $1.76 million as of March 31, 2017. This was
primarily due to an increase of $62,000 in occupancy expense. The Bank's
efficiency ratio remained low at 53% as of March 31, 2018, down from 58%
as of March 31, 2017.

Total assets as of March 31, 2018, were $319.8 million, as compared with
$306.0 million as of March 31, 2017, an increase of 5%. The Bank's
loan-to-deposit ratio as of March 31, 2018, was 97.1%, up from 90.1% as
of March 31, 2017.

The Bank's capital ratios remain very strong. Total risk-based capital
ratio was 14.6% and the equity ratio was 10.3% as of March 31, 2018.
These ratios were 13.2% and 10.2%, respectively, as of March 31, 2017.
The March 31, 2018, risk-based capital ratio reflects $10.1 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 1.06% as of March 31, 2018, down from 1.18% as of
March 31, 2017. This decrease was due to higher loan volume. The Bank
recorded a provision for loan losses of $56,000 in the first quarter of
2018; no provision was recognized in the first quarter of 2017. The
Bank's total NPAs (nonaccrual loans + OREO) are $2.0 million as of March
31, 2018; there was a zero balance as of the same period in 2017. The
NPAs are composed of one nonaccrual loan relationship at March 31, 2018,
that was placed into OREO in April 2018.

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
Mar. 2018
Actual
Mar. 2017
Assets
Cash and due from banks $ 1,248,858 $ 1,789,770
Fed funds sold 1,611,000 3,148,000
Investment securities 71,091,652 81,711,254
 
Loans, net of unearned income 242,408,727 215,719,657
Less: Allowance for loan losses   (2,577,213 )   (2,555,695 )
Net loans 239,831,514 213,163,962
Premises and equipment, net 345,698 141,438
Accrued interest receivable 1,316,092 1,350,270
Other assets   4,369,151     4,728,664  
Total assets $ 319,813,965   $ 306,033,358  
 
Liabilities & Shareholders' Equity
Non-interest bearing deposits 98,003,928 84,546,591
Interest-bearing deposits:
Core deposits (including CDARs) 134,087,279 145,615,407
Brokered deposits   17,621,000     9,166,000  
Total deposits 249,712,207 239,327,998
Accrued expenses/other liabilities   37,227,827     36,235,334  
Total liabilities 286,940,034 275,563,332
Total shareholders' equity   32,873,931     30,470,026  
Total liabilities & shareholders' equity $ 319,813,965   $ 306,033,358  
         
BV per share (net of OCI)   $ 13.66     $ 12.52  
 
 
YTD
Actual
Mar. 2018
YTD
Actual
Mar. 2017
Net interest income $ 3,221,418 $ 2,882,789
Provision for loan losses 56,000 0
Noninterest income 118,192 95,601
Noninterest expense   1,810,475     1,759,203  
Income before taxes 1,473,135 1,219,187
Income taxes   436,000     429,000  
Net income $ 1,037,135   $ 790,187  
Basic EPS $ 0.42 $ 0.33
Diluted EPS $ 0.40 $ 0.31
         
Return on Average Assets (ROAA) 1.24 % 1.06 %
Return on Average Equity (ROAE) 12.72 % 10.71 %
Net interest margin     4.04 %     3.94 %
 

 

QTD
Actual
Mar. 2018
QTD
Actual
Mar. 2017
Net interest income $ 3,221,418 $ 2,882,789
Provision for loan losses 56,000 0
Noninterest income 118,192 95,601
Noninterest expense   1,810,475     1,759,203  
Income before taxes 1,473,135 1,219,187
Income taxes   436,000     429,000  
Net income $ 1,037,135   $ 790,187  
Basic EPS $ 0.42 $ 0.33
Diluted EPS $ 0.40 $ 0.31
         
Return on Average Assets (ROAA) 1.24 % 1.06 %
Return on Average Equity (ROAE) 12.72 % 10.71 %
Net interest margin     4.04 %     3.94 %

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