2019 Second Quarter Financial Report

Ash Patel

2019 Second Quarter Financial Report

Ash Patel, President and CEO

President’s Statement

Commercial Bank of California resumed its progress in the second quarter of 2019.  We are particularly pleased with CBC’s strong growth in assets, loans, and deposits.  The net interest income resulting from that growth drove our resurgent results for the period.

As previously discussed, balance sheet growth brings with it increased expectations by banking regulators,and in response we have been making prudent investments in highly-capable additions to our management team.  Adding officers of this caliber comes at a cost, which is evident in our higher salary expense thus far in 2019 compared to the prior year.  CBC has already begun to grow into the new investment, as demonstrated by the improvement in our second quarter results versus those of the first quarter.  Moreover, we expect this firm foundation to support our growth in the years to come, while meeting the expectations of our regulators.

The ”second to none” banking experience enjoyed by our clients has long been a CBC hallmark.  CBC’s unique combination of robust financial condition, advanced technology, and a holistic approach to personal service is what is making us the bank of choice for businesses and professionals in Southern California.  In
the near future, we will be introducing new technology solutions to help manage the sales process for our business clients, and make CBC even more accessible and easy to deal with than ever.  As before, our focus remains on further enhancing the banking experience which we deliver to our valued clients.  Stay
tuned for additional details on these exciting initiatives in the coming weeks.

As the year progresses, we continue to experience the economic volatility that has characterized the recent past.  Interest rates in particular appear to be at an inflection point, but the extent and duration of their movement is uncertain.  Thanks to our financial strength and flexibility, CBC is well positioned to capitalize on opportunities and respond to challenges.  Our confidence in Commercial Bank of California’s future remains undiminished.

Ash Patel, President and CEO

bar graph going up

Financial Highlights

  • Total assets, total deposits, and net loans all increased from prior year levels
  • Second quarter 2019 earnings rebounded compared to first quarter results
  • Retained earnings further strengthened robust capital position

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.



(000s omitted) June 30, 2019 June 30, 2018


Cash and due from banks $41,053 $27,465
Interest bearing deposits with banks 99,294 145,521
Federal funds sold 2,500 2,500
Cash and cash equivalents 142,847 175,486
Investment securities 73,076 88,214
Loans 728,306 606,363
Less: allowance for loan and lease losses (10,062) (8,256)
Loans, net 718,244 598,107
Premises and equipment – net 3,456 3,203
Other real estate owned - -
Accrued interest receivable and other assets 40,132 38,183
Total assets $977,755 $903,193


Non-interest bearing demand deposits 373,328 300,190
Interest bearing demand deposits 46,032 35,322
Savings and money market deposits 386,174 405,430
Time deposits 59,315 57,957
Total deposits 864,849 798,899
Federal Home Loan Bank advances - -
Accrued interest payable and other liabilities 11,933 11,816
Total liabilities $876,782 $810,715
Stated capital 83,830 83,830
Retained earnings 16,824 10,075
Accumulated other comprehensive income (loss) 319 (1,427)
Total capital $100,973 $92,478
Total liabilities and capital $977,755 $903,193


  Six Months Six Months
Ended Ended
(000's omitted) June 30, 2019 June 30, 2018
Interest on loans $20,035 $16,889
Interest on deposits with banks 1,667 710
Interest on investment securities 1,111 1,002
Other interest income 176 22
Total interest income 22,989 18,623
Interest on deposits 3,238 1,525
Interest on FHLB advances - 112
Total interest expense 3,238 1,637
Net interest income 19,751 16,986
Provision for loan losses - 625
Net interest income after provision for loan losses 19,751 16,361
Other operating income 5,538 6,437
Salaries and related benefits 13,015 10,519
Occupancy expenses 2,171 1,883
Other expenses 5,536 4,953
Total other operating expenses 20,722 17,355
Income before provision for income taxes 4,567 5,443
Provision for income taxes 1,320 1,578
Net income $3,247 $3,865