Community Bank Reports Net Income of $22.7 Million for 2005.PASADENA, Calif. -- Community Bank, a commercial bank with assets in excess of $2.1 billion, today reported net income for the fourth quarter of 2005 of $6.5 million, representing an increase of 9.5% over the same quarter last year. Return on average equity and return on average assets for the fourth quarter of 2005 were 15.38% and 1.25%, respectively, as compared to return on average equity and return on average assets of 15.29% and 1.26%, respectively, for the fourth quarter of 2004. For the year ended December December: see month. 31, 2005, net income increased 2.4% to $22.7 million from $22.2 million for the year ended December 31, 2004. From a core earnings perspective, the Bank's net income for the same period increased 8.6%, excluding insurance proceeds from a branch fire recognized in 2Q04 and a gain on the sale of property recognized in 3Q04. Return on average equity and return on average assets for the year ended December 31, 2005 were 13.78% and 1.11%, respectively, as compared to return on average equity and return on average assets of 15.13% and 1.26%, respectively, for the year ended December 31, 2004. Total loans as of December 31, 2005 were $1.2 billion, representing an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $91.3 million or 8.0% over total loans on December 31, 2004. Total deposits on December 31, 2005 were $1.7 billion, representing an increase of approximately $136.0 million or 8.6% over total deposits as of December 31, 2004. Non-performing assets as of December 31, 2005 totaled $1.8 million as compared with $4.8 million as of December 31, 2004. The Bank's reserve for loan losses as of December 31, 2005 totaled $21.2 million or 1.72% of total loans as compared to $19.3 million or 1.70% of total loans as of December 31, 2004. Additionally the Bank's capital ratios remain strong with Tier 1 leverage, Tier 1 Risk Based Capital and Total Risk Based Capital Ratios of 8.64%, 11.49%, and 12.75%, respectively, as of December 31, 2005. All three ratios exceed the regulatory requirement Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for a well-capitalized bank. The minimum regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios for a well-capitalized bank are defined as Tier 1 leverage, Tier 1 Risk Based Capital and Total Risk Based Capital ratios of 5.00%, 6.00% and 10.00%, respectively. V. Charles Jackson Charles Jackson may refer to:
adj. 1. Refusing to give up or let go; persevering obstinately. 2. Insistently repetitive or continuous: a persistent ringing of the telephone. 3. difficult market, the bank performed exceptionally well in the fourth quarter posting net income of $6.5 million, a 9.5% increase over last year's fourth quarter. We are particularly pleased with the positive trends in most of the fundamental financial components that drive the bank's growth and profitability. Specifically, interest income grew at a 22% pace reflecting continued loan growth, in the face of an extremely competitive environment. (Unfortunately the partially inverted yield curve Inverted Yield Curve Usually a chart showing long-term debt instruments that have lower yields than short-term debt instruments. It is sometimes referred to as a negative yield curve. and dramatic increases in funding costs, have offset interest income growth during the period.) Non-interest income in the fourth quarter of 2005 grew at a 22% rate over the same period in 2004, primarily due to our growing SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government business. Finally, non-interest expenses, primarily salary and labor costs showed a .5% decrease for the quarter, a trend we expect to maintain through 2006. Return on average equity for the quarter was 15.38% with our efficiency ratio ending the quarter at 51.28%. Our efforts in 2006 will be on continuing to maintain these strong fundamentals, particularly strong interest and non-interest income growth, coupled with aggressive cost control. "Results for the full year are also good despite skyrocketing funding costs, margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. and the most competitive loan environment we have seen in the last ten years. Net income of $22.7 million represents an 8.6% increase in core earnings over 2004 resulting in a return on equity of 13.78%. Besides yield-curve compression, the trend which affected us most was the severe competition for loans throughout the year. In 2004, we managed to grow loans by 14%, while we had to run very hard to achieve loan growth of 8.0% in 2005. During the year we encountered a large number of new bank and non-bank entrants in the market, a very aggressive push by the large banks to enter our market, and high liquidity coupled with a reluctance to expand amongst our clients, resulting in larger than anticipated pay downs. "Nonetheless we were still able to demonstrate respectable growth while maintaining high credit quality. Our classified loans are now at the lowest point the bank has experienced in recent history, while our loan loss reserve remains at a strong 1.72% to total loans, and our capital ratios are substantially in excess of minimum regulatory ratios for well-capitalized banks. Our loan to deposit ratio is good at about 70% providing us with excess liquidity, and we continue to demonstrate a strong capability to attract deposits. Deposit growth in 2005 was 8.6%, with core deposits representing about 70% of total deposits. "In 2006 we expect little relief in the yield curve which will lead us to aggressively manage funding costs, protect our deposit base and control expenses. We expect a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in real estate, both in the housing and commercial real estate markets. This means that competition will become even more severe as banks compete for existing market share; therefore, we will need to make every possible effort to retain our excellent employee and customer bases as banks, of all sizes, are aggressively recruiting employees and clients." Community Bank is a regional bank, founded in 1945, that serves clients who seek the know-how know-how n. The knowledge and skill required to do something correctly. See Synonyms at art1. know-how Noun Informal the ability to do something that is difficult or technical , wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. and product span of a larger financial institution, as well as the market knowledge, customer service orientation orientation, in architecture, the disposition of the parts of a building with reference to the points of the compass. From remote antiquity the traditional belief in the efficacy of religious ceremonials performed at dawn toward the rising sun has influenced the and local focuses of a community bank. Community Bank's mission is to provide the advice and financial tools our clients need to become more competitive and more profitable. Based in Pasadena, it operates banking centers in that city and in Anaheim Anaheim (ăn`əhīm), city (1990 pop. 266,406), Orange co., S Calif., SE of Los Angeles; inc. 1870. Anaheim was founded by Germans in 1857 as an experiment in communal living. , Burbank Burbank, city (1990 pop. 93,643), Los Angeles co., S Calif.; inc. 1911. Tourism and the entertainment industry are central to its economy; several motion-picture studios and television headquarters are here. Burbank's aerospace industry collapsed with the end of the Cold War. , Commerce, Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. , Fontana Fontana, city (1990 pop. 87,535), San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1952. Fabricated metal products, construction materials, and transportation equipment are manufactured, and there is a small steel mill. , Glendale Glendale. 1 City (1990 pop. 148,134), Maricopa co., S central Ariz., adjacent to Phoenix; inc. 1910. It is located in a rich agricultural region irrigated by the Salt River project. Glendale has become one of the fastest-growing U.S. , Industry, Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Redlands Redlands, city (1990 pop. 60,394), San Bernardino co., S Calif., in the San Bernardino Valley; inc. 1888. Industries include software research and development and the manufacture of metal foil, furniture, and electrical equipment. , Santa Clarita Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, , South Bay and Yucaipa. For more information, visit the Community Bank Website at www.cbank.com. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including certain plans, expectations, goals and projections, which are subject to numerous assumptions risks and uncertainties. Actual results could differ materially from those contained in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.
COMMUNITY BANK
Financial Highlights - Balance Sheet (Unaudited)
(Amounts in Thousands)
As of December 31,
---------------------- Dollar Percent
2005 2004 Change Change
---------------------- --------- -------
BALANCE SHEET
Cash and cash equivalents $66,123 $47,789 $18,334 38.4%
Investments 750,106 677,656 72,450 10.7%
Loans 1,227,626 1,136,332 91,294 8.0%
Loan loss reserve (21,158) (19,272) (1,886) 9.8%
---------------------- --------- -------
Net loans 1,206,468 1,117,060 89,408 8.0%
Other Assets 89,390 74,492 14,898 20.0%
---------------------- --------- -------
Total assets $2,112,087 $1,916,997 $195,090 10.2%
====================== ========= =======
Earning assets $2,043,855 $1,861,777 $182,078 9.8%
Non-interest bearing deposits $498,047 $456,723 $41,324 9.0%
Interest bearing deposits 1,224,681 1,130,013 94,668 8.4%
---------------------- --------- -------
Total deposits 1,722,728 1,586,736 135,992 8.6%
Funds purchased/borrowed 198,669 151,775 46,894 30.9%
Other liabilities 18,247 20,015 (1,768) -8.8%
---------------------- --------- -------
Total liabilities 1,939,644 1,758,526 181,118 10.3%
Stockholders' equity 172,443 158,471 13,972 8.8%
---------------------- --------- -------
Total liabilities &
stockholders'equity $2,112,087 $1,916,997 $195,090 10.2%
====================== ========= =======
OTHER SELECTED DATA
Other real estate owned $- $- $- -
Non-accrual loans $1,810 $4,759 $(2,949) -62.0%
Reserve for loan losses to
total loans 1.72% 1.70% 0.02% 1.2%
COMMUNITY BANK
Financial Highlights - Income Statement and Ratios (Unaudited)
(Amounts in Thousands)
For the
quarters ended
December 31,
-------------------
Dollar Percent
2005 2004 Change Change
---------- -------- -------- -------
INCOME STATEMENT
Interest Income $29,616 $24,298 $5,318 21.9%
Interest Expense 10,754 5,708 5,046 88.4%
---------- -------- -------- -------
Net interest income 18,862 18,590 272 1.5%
Provision for loan losses - - - -
---------- -------- -------- -------
Net interest income after
provision 18,862 18,590 272 1.5%
Non-interest income 2,804 2,299 505 22.0%
Non-interest expense 11,111 11,119 (8) (0.1%)
---------- -------- -------- -------
Income before income tax 10,555 9,770 785 8.0%
Income tax 4,011 3,794 217 5.7%
---------- -------- -------- -------
Net income before non-recurring
item 6,544 5,976 568 9.5%
Non-recurring items, net of tax - - - -
---------- -------- -------- -------
Net income $6,544 $5,976 $568 9.5%
========== ======== ======== =======
Return on average equity 15.38% 15.29%
Return on average assets 1.25% 1.26%
Net interest margin 3.79% 4.10%
Efficiency ratio 51.28% 53.23%
Book value per common share (end
of period)
Basic earnings per common share $2.16 $1.97
Diluted earnings per common share $2.07 $1.89
For the
years ended
December 31,
------------------
Dollar Percent
2005 2004 Change Change
--------- -------- -----------------
INCOME STATEMENT
Interest Income $109,342 $88,809 $20,533 23.1%
Interest Expense 36,672 18,759 17,913 95.5%
--------- -------- -------- --------
Net interest income 72,670 70,050 2,620 3.7%
Provision for loan losses 365 1,520 (1,155) (76.0%)
--------- -------- -------- --------
Net interest income after
provision 72,305 68,530 3,775 5.5%
Non-interest income 9,813 9,111 702 7.7%
Non-interest expense 45,093 42,806 2,287 5.3%
--------- -------- -------- --------
Income before income tax 37,025 34,835 2,190 6.3%
Income tax 14,306 13,924 382 2.7%
--------- -------- -------- --------
Net income before non-recurring
item 22,719 20,911 1,808 8.6%
Non-recurring items, net of tax - 1,272 (1,272) (100.0%)
--------- -------- -------- --------
Net income $22,719 $22,183 $536 2.4%
========= ======== ======== ========
Return on average equity 13.78% 15.13%
Return on average assets 1.11% 1.26%
Net interest margin 3.76% 4.20%
Efficiency ratio 54.67% 52.62%
Book value per common share (end
of period) $56.54 $51.85
Basic earnings per common share $7.48 $7.30
Diluted earnings per common share $7.18 $7.01
As of December 31,
------------------
2005 2004
--------- --------
CAPITAL RATIOS
Tier 1 leverage capital 8.64% 8.39%
Tier 1 risk-based capital 11.49% 11.14%
Total risk-based capital 12.75% 12.39%
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