LAFAYETTE, California, California Bank of Commerce (OTCQX: CABC), a San Francisco Bay Area business bank, today reported unaudited financial results for the third quarter of 2016 with net income of $1,394,000, increasing 30% over the second quarter 2016 and 52% over same period one year ago. Total assets were $769 million on September 30, 2016, compared to $725 million on June 30, 2016, and $520 million on September 30, 2015.
The comparability of financial information for the third quarter 2016 and year--to-date to similar periods in 2015 is affected by the Bank’s acquisition of Pan Pacific Bank with total assets of $131 million, which closed on December 31, 2015. Additionally, onetime merger related expenses totaled $782,000 year-to-date, and $281,000 for the third quarter of 2016 as the Bank completed the integration process with Pan Pacific Bank in September.
“The business community in the San Francisco Bay Area continues to embrace the Bank as demonstrated by our continued growth, and this is simply a testament to the experience and quality of our bankers, “ said Terry A. Peterson, President and CEO of California Bank of Commerce. “Our commercial banking offices in Oakland, Fremont, San Jose and Lafayette continue to outperform our expectations,” he stated.
Third Quarter 2016 vs. Second Quarter 2016
Net income of $1,394,000 for the third quarter of 2016 increased by $325,000 or 30% compared to the second quarter 2016 and basic earnings per common share were $0.239 for the third quarter 2016 compared to $0.173 in the second quarter 2016.
Total deposits of $657 million as of September 30, 2016, increased by $43 million or 7.0% compared to the second quarter of 2016, while noninterest bearing deposits increased by $41 million or 18%, to $270 million over the same period.
Total loans, net of deferred costs were $608 million at the end of the third quarter 2016 an increase of $29 million or 5.0% over the second quarter of 2016.
Tangible book value per common share increased to $11.45 as of September 30, 2016, compared to $11.20 as of June 30, 2016.
Third Quarter 2016 vs. Third Quarter 2015
Net income was $1,394,000 for the third quarter of 2016 an increase of 57% compared to $887,000 for the third quarter of 2015. Year-to-date net income was $3,407,000 for the first nine months of 2016 an increase of 42% or $1,012,000 over the same period of 2015.
Total deposits of $657 million at September 30, 2016, were up by $230 million or 54% over the same 2015 quarter end, while noninterest bearing deposits were up by $85 million or 46% to $270 million.
Loans, net of deferred costs, were $608 million on September 30, 2016, increasing $215 million or 55% from September 30, 2015.
Credit quality remains strong, with nonperforming assets to total assets improving to 0.24% at September 30, 2016 compared to 0.59% on the same date in 2015. The loan loss reserve was $7,100,000 at the end of the third quarter 2016 increasing by $465,000 for the quarter and $1,400,000 over the prior year quarter at September 30, 2015. The ratio of the reserve to total loans was 1.17% on September 30, 2016, down from 1.45% at September 30, 2015, as a result of merger accounting adjustments related to the Pan Pacific Bank merger, which was effected on December 31, 2015.
“We are very pleased with the execution of our business plans for 2016. The successful merger with Pan Pacific Bank is complete and we look forward to accelerating our progress for the balance of 2016 and into 2017,” said Stephen A. Cortese, Chairman of the Board for California Bank of Commerce.
Please see our detailed Third Quarter 2016 Unaudited Summary Financial Statements for more information.
About California Bank of Commerce
California Bank of Commerce offers a broad range of commercial banking services to closely held businesses and professionals located throughout the San Francisco Bay Area. The stock trades on the OTCQX marketplace under the symbol CABC. For more information on California Bank of Commerce, call us at (510) 4573751, or visit us at www.californiabankofcommerce.com.
Terry A. Peterson
President and CEO
EVP and Chief Financial Officer