2019 Third Quarter Financial Report

photo of Ash Patel

2019 Third Quarter Financial Report

Ash Patel, President and CEO

President’s Statement

This quarter represents the first time Commercial Bank of California’s total assets have exceeded the billion dollar milestone at the end of a reporting period, and CBC’s positive momentum increased in the third quarter of 2019.  Once again, CBC’s strong growth in assets, loans, and deposits drove improved performance.  The net interest income resulting from that growth in turn led to our strengthening operating results for the period.

Our balance sheet growth is evidence of our continued progress in growing into the higher salary expense levels resulting from earlier additions to the Bank’s management team.  In addition to meeting regulatory expectations associated with our billion dollar status, we expect this firm foundation to support our growth now and in the years to come.”

While CBC’s robust financial condition and advanced technology have long been our hallmarks, it is our unique approach to personal service that is increasingly making us the bank of choice for businesses and professionals in Southern California.  Progress continues on our system enhancements that will make us even more accessible and easy to deal with.  And in the near future, we expect to roll out our new technology solutions to help our business clients better manage the sales process and deliver superior service to their customers.  As always, our focus is on further enhancing the banking experience which we deliver to our valued clients, and thus contributing to their success.

As the year progresses, we continue to experience the economic volatility that has characterized the recent past.  Recently, Interest rates have begun to decline after several years of gradual increases.  While the extent and duration of this movement is uncertain, what is clear is that it will present its own set of challenges.  Thanks to our financial strength and flexibility, CBC is well positioned to weather financial storms, and capitalize on opportunities that emerge.  Our confidence in Commercial Bank of California’s future has never been stronger.

Ash Patel, President and CEO

bar graph going up

Financial Highlights

  • Total assets, total deposits, and net loans all increased from prior year levels
  • Total assets exceeded the billion dollar milestone at quarter-end for the first time
  • Third quarter 2019 earnings represented strongest quarterly performance of the year
  • 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) September 30, 2019 September 30, 2018


Cash and due from banks $19,246 $29,721
Interest bearing deposits with banks 122,633 108,820
Federal funds sold 2,500 2,500
Cash and cash equivalents 144,379 141,041
Investment securities 91,641 91,807
Loans 746,207 652,526
Less: allowance for loan and lease losses (10,012) (10,044)
Loans, net 736,195 642,482
Premises and equipment – net 3,374 3,454
Other real estate owned - -
Accrued interest receivable and other assets 41,146 37,993
Total assets $1,016,735 $916,777


Non-interest bearing demand deposits 442,019 317,187
Interest bearing demand deposits 44,595 45,739
Savings and money market deposits 383,300 388,909
Time deposits 31,134 58,682
Total deposits 901,048 810,517
Federal Home Loan Bank advances - -
Accrued interest payable and other liabilities 12,372 11,950
Total liabilities $913,420 $822,467
Stated capital 83,830 83,830
Retained earnings 18,976 12,281
Accumulated other comprehensive income (loss) 509 (1,801)
Total capital $103,315 $94,310
Total liabilities and capital $1,016,735 $916,777


(000's omitted) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018
Interest on loans $30,494 $26,092
Interest on deposits with banks 2,300 1,490
Interest on investment securities 1,703 1,527
Other interest income 228 34
Total interest income 34,725 29,143
Interest on deposits 4,674 2,735
Interest on FHLB advances 12 112
Total interest expense 4,686 2,847
Net interest income 30,039 26,296
Provision for loan losses 75 625
Net interest income after provision for loan losses 29,964 25,671
Other operating income 8,152 9,329
Salaries and related benefits 19,581 16,255
Occupancy expenses 3,234 2,849
Other expenses 7,695 7,311
Total other operating expenses 30,510 26,415
Income before provision for income taxes 7,606 8,585
Provision for income taxes 2,208 2,513
Net income $5,398 $6,072