Commercial Bank of California Achieves Strong 2017 Financial Performance

IRVINE, Calif., Feb. 8, 2018 /PRNewswire/ --

Highlights Of The Year Include:

• Net income increased year-over-year for fourth consecutive year
• Total assets and loans reached new record highs
• New capital further strengthened robust capital position
• Bank successfully completed technology upgrades

Commercial Bank of California, a BauerFinancial Five-Star Superior Bank, today reported net income for the full year 2017 of $4,329,000, an increase of 44% over the $3,004,000 net income of the prior year.  Net interest income totaled $30.0 million for the full year 2017, a 16% increase from the $25.9 million recorded in 2016.

At December 31, 2017, the Bank's total assets were $869.0 million, an increase of 7% over the $810.7 million total for the same date in 2016.  Total deposits stood at $668.2 million at yearend 2017, while net loans advanced to $602.9 million at the end of 2017, a 15% increase over the comparable 2016 total of $523.9 million.  Total capital at December 31, 2017 was $89.6 million, a 12% increase over the level at the same time in 2016.

Ash Patel, President and CEO of Commercial Bank of California, commented:  "2017 represented another year of achievement for Commercial Bank of California.  The strengthening of our performance continued in 2017, as we recorded a significant increase in profitability and solid growth in our balance sheet. 

"While the primary driver of our profitability for the year was our prudent, controlled growth, our results also in part reflected factors that may not recur.  We benefited from the collection of previously non-performing assets, and the successful resolution of legal matters.  Results were adversely impacted by the cost of resolving an expensive facilities lease, and by the effect of the 2017 Tax Reform Act on certain tax-sensitive assets.   On balance, however, the year was a most successful one, and our actions in 2017 positioned us for more progress in 2018 and beyond. 

"Our operating results also continue to benefit from our long-standing emphasis on high credit quality.  Non-performing assets net of federal guarantees totaled $4.7 million at December 31, 2017, compared to reserves of $9.3 million.  The Bank again had no Other Real Estate Owned (generally real estate acquired through foreclosure) as of December 31, 2017."

Mr. Patel added:  "We remain committed to providing 'second to none' technology to our clients.  Pursuant to that commitment, in 2017 we upgraded our online banking products to new, state-of-the-art systems, and introduced Mobile Banking (including Mobile Deposit) for our business and personal clients.  Our fully redesigned website serves as the gateway to all our new technology offerings.  But while our commitment to advanced technology remains, so too does our belief that personalized, proactive, responsive service is the foundation of our success.  CBC's unique combination of financial strength, advanced technology, and personal service is what is making us the bank of choice for businesses and professionals in Southern California."

He concluded:  "Since our founding, our overriding objective has been to build a unique institution, a bank that does not yet exist, with an ecosystem of financial products stretching from Payments Solutions to Mobile Banking, and the financial strength and responsive service needed to make a meaningful contribution to the success of our clients.  Our message of 'Our Solutions, Your Success' reflects our emphasis on client success.  That emphasis, combined with the creative expertise of the CBC team and our continued focus on innovative technology, continues to serve us well.  At the same time, we maintain our focus on the operating environment.  Our financial strength and flexibility enables us to react decisively to changing market conditions and the challenges and opportunities they bring.  Based on our current performance and future trends, we remain highly confident about the future of Commercial Bank of California." 

About Commercial Bank of California

Commercial Bank of California is a full-service bank serving the business and professional communities of Los Angeles and Orange counties. Recognized as a BauerFinancial, Inc. "Five-Star Superior Bank" for its financial strength and stability, CBC provides the financial expertise of a major bank while maintaining a commitment to personalized service for every CBC client.  More information about CBC's custom solutions for your business is available at www.cbcal.com.

This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements, other than statements of historical fact, included herein may constitute forward-looking statements.  Although Commercial Bank of California believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Important factors that could cause actual results to differ materially from Commercial Bank of California's expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which Commercial Bank of California conducts its operations.

Member FDIC | Equal Housing Lender

Media Contacts Ash Patel, CEO[email protected] Thomas McCullough, EVP[email protected]310.882.4834

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SOURCE Commercial Bank of California