Community Bank Reports 2018 First Quarter Earnings of $8.0 Million, Record Loan Totals and Declares $.50 Dividend on Common Stock

|Business Wire

PASADENA, Calif.--(BUSINESS WIRE)-- Community Bank (CBU) (the “Bank”) (CYHT- OTC-Pink (“Bank”)), founded in 1945, is an independent Southern California regional community bank, with assets of $3.7 billion, and headquartered in Pasadena with 16 business centers.

Acquisition by Citizens Business Bank:

As previously announced, on February 26, 2018, the Bank entered into an Agreement and Plan of Reorganization and Merger with CVB Financial Corp. and Citizens Business Bank (the “Merger Agreement”) pursuant to which the Bank will merge with and into Citizens and each outstanding share of the Bank’s common stock will be exchanged for (i) 9.4595 shares of CVB Financial common stock and (ii) $56.00 in cash, subject to the adjustments set forth in the Merger Agreement. The merger is expected to close in the third quarter of 2018 subject to satisfaction of all the closing conditions set forth in the Merger Agreement, including but not limited to, receipt of all requisite shareholder and regulatory approvals.

  • Financial Highlights: Net income was $8.0 million for the first quarter of 2018 compared to $7.8 million in the same period of 2017, an increase of $217 thousand or 2.8%, over the prior year. Net income for the first quarter of 2018 included non-deductible merger related costs of $1.1 million.
  • Net interest income was $31.6 million for the first quarter of 2018 compared to $27.8 during the first quarter of 2017. The increase in net interest income of $3.8 million for the first quarter 2018 over the same period in 2017 was primarily the result of: 1) $240 million of average loan growth; 2) higher yields on loans driven by Fed rate increases; and, 3) collections of past due loan interest. These improvements were partially offset by increased funding costs. Net interest margin increased to 3.56% from 3.24% in the same period due to the above plus growth in non-interest bearing deposits.
  • Total loan balances at March 31, 2018 were a record $2.765 billion, representing a $248.1 million or 9.9% increase from the $2.517 billion at March 31, 2017 and representing a $24.8 million or 0.9% increase from the $2.740 billion at December 31, 2017. The Bank believes this growth reflects continued strong focus on origination of high quality loans in the greater Los Angeles area, primarily real estate and SBA loans.
  • Non-performing assets at March 31, 2018 were $10.7 million compared to $15.0 million at March 31, 2017 and $9.8 million at December 31, 2017 reflecting continued strong asset quality.
  • The allowance for loan losses decreased to 1.30% at March 31, 2018 compared to 1.33% at March 31, 2017, reflecting overall improvement in non-performing assets. The coverage ratio related to non-performing loans at March 31, 2018 was 363% compared to 223% at the end of March 2017. During the first quarter of 2018, a $650,000 provision for loan loss was recorded while in the first quarter of 2017 a release of $1.6 million in provision for loan losses was recorded.
  • Deposits grew to a total of $2.824 billion as of March 31, 2018, an increase of $177.9 million or 6.7% from the total deposits of $2.646 billion as of March 31, 2017. Deposits declined from December 31, 2017 by $36.5 million primarily because certain higher rate public fund CDs and money desk CDs were not renewed.
  • Non-interest bearing deposits increased 14.2%, or $150.1 million to $1.206 billion at March 31, 2018 compared to $1.056 billion as of March 31, 2017 and increased 2.4% or $28.6 million to $1.177 billion at December 31, 2017, a result of a Bank wide focus on increasing deposits that was initiated a few years ago. Average non-interest bearing deposits grew $163.4 million or 16.0% during first quarter 2018 over the same period in 2017.
  • Non-interest bearing deposits as a percentage of core deposits were 47.8% and at March 31, 2018, up from 47.0% at March 31, 2017. Non-interest bearing deposits as a percentage of total deposits were 42.7% compared to 39.9% at the March 31, 2017.
  • Non-interest expense includes an increase in salary related expenses of $947 thousand, a decrease in deferral of loan origination costs of $270 million and an increase in professional services of $1.3 million during the first quarter of 2018 as compared to the same period of 2017. Details of changes in non-interest income and non-interest expenses are provided in the financial reports attached to this document.
  • Community Bank’s capital ratios continue to exceed “well capitalized” regulatory requirements

Dividend:

  • The Board of Directors declared a $0.50 per share cash dividend (aggregating $1.6 million) on its outstanding common stock for common shareholders of record as of May 15, 2018 and payable on or about June 1, 2018. This represents the fourteenth consecutive quarter that the Bank has declared a dividend since introducing a formal dividend practice. The dividend was approved at the regularly scheduled Board of Directors meeting held on April 26, 2018.

Non-GAAP Financial Measures:

  • The Bank believes the presentation of net income before the effect of the tax rate change passed in the fourth quarter of 2017, and the effect of the tax rate change which are both non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of the operations and financial condition of the Bank. See the Statement on Non-GAAP measures and related table later in this document for additional disclosures and reconciliations.

Market Makers

CBank is pleased to include the following as market makers in Community Bank stock. Community Bank stock trades on OTC pink sheets under the ticket of CYHT. Contact information for our market makers is as follows:

Raymond James & Associates
John T. Cavender, SVP Financial Institutions
415-616-8935
John.cavender@raymondjames.com
http://www.raymondjames.com

D.A. Davidson & Co.
Michael R. Natzic, Senior Vice President
1-800-288-2811
mnatzic@dadco.com
https://dadavidson.com

Keefe Bruyette & Woods, a Stifel Company
Cathy Bellina, Equity Trader
212-887-8996
cbellina@kbw.com
www.kbw.com

Sandler O’Neill + Partners, L.P.
Tom Thurston, Principal
1-212-466-8027
tthurston@sandleroneill.com
http://www.sandleroneill.com/

Wedbush Securities
Joey Warmenhoven, Managing Director Community Banking Group
1-866-662-0351
Joey.warmenhoven@wedbush.com
https://www.wedbush.com/

Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, Glendale, Huntington Beach, Irvine, Laguna Niguel, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, and Woodland Hills. For more information, visit the Community Bank Website at www.cbank.com.

This document may contain forward-looking statements concerning projections of revenues, income/loss, earnings/loss per share, capital expenditures, dividends, capital structure, or other financial items, plans and objectives of management for future operations, future economic performance, or any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements can be identified by the fact that they do not relate

strictly to historical or current facts, and may include the words "believes," "plans," "expects," "anticipates," "forecasts," "intends," "hopes," "should," "estimates," or words of similar meaning. While the Bank believes that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from projections for a variety of reasons, to include, but not limited to: failure of conditions to closing our transaction with CVB and Citizens,including as a result of failure to obtain regulatory approvals, the effect of, and our failure to comply with any regulatory orders we are or may become subject to; adverse economic conditions in California; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; the impact of local, national, and international economies and events (including political events, acts of war or terrorism, natural disasters such as wildfires and earthquakes) on the Bank's business; deterioration or malaise in economic conditions, including destabilizing factors in the financial industry and deterioration of the real estate market, as well as the impact from any declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; the impact of regulatory action on the Bank and legislation affecting the financial services industry; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the Dodd-Frank Wall Street Reform and Consumer Protection Act, other regulatory reform, and any related rules and regulations on our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, and the results of regulatory examinations or reviews; changes in our business plan; the effect of the Tax Cuts and Jobs Act; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate,securities market and monetary fluctuations; changes in consumer spending, borrowings and savings habits; technological changes and developments; changes in the competitive environment among financial holding companies and other financial service providers, including fintech businesses; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our capital position; our ability to attract and retain skilled executives and employees; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in any of the foregoing items.

 
COMMUNITY BANK - FINANCIAL HIGHLIGHTS
(Unaudited)
(Amounts in Thousands, except per share data)
 
    As of
BALANCE SHEET March 31, 2017   June 30, 2017     September 30, 2017   December 31, 2017     March 31, 2018
Cash and cash equivalents $ 57,612 $ 59,386 $ 48,546 $ 44,298 $ 46,420
Investments 924,826 924,821 887,257 837,415 780,183
FHLB Stock 18,765 17,512 17,250 17,250 17,250
CRA bond investments - - 1,360 9,589 9,603
Non-owner occupied real estate loans 824,506 883,811 883,199 919,714 910,227
Owner occupied real estate loans   1,095,176     1,145,592     1,175,410     1,191,757     1,219,430  
Total real estate loans 1,919,682 2,029,403 2,058,609 2,111,471 2,129,657
Commercial & industrial loans 555,708 576,854 585,369 590,462 596,754
Other loans   41,133     43,433     43,303     37,926     38,212  
Total loans 2,516,523 2,649,690 2,687,281 2,739,859 2,764,623
Loan loss reserve   (33,449 )   (34,824 )   (35,345 )   (35,346 )   (36,026 )
Net loans 2,483,074 2,614,866 2,651,936 2,704,513 2,728,597
Other assets   140,766     132,863     134,363     134,333     138,320  
Total assets $ 3,625,043   $ 3,749,448   $ 3,740,712   $ 3,747,398   $ 3,720,373  
 
Earning assets $ 3,479,318   $ 3,614,466   $ 3,603,279   $ 3,616,405   $ 3,584,759  
 
 
Non-interest bearing deposits $ 1,055,942 $ 1,135,140 $ 1,188,818 $ 1,177,453 $ 1,206,049
Interest bearing deposits   1,589,917     1,611,711     1,682,461     1,682,761     1,617,713  
Total deposits 2,645,859 2,746,851 2,871,279 2,860,214 2,823,762
Borrowings - short term 300,000 313,000 166,000 197,500 212,000
Borrowings - long term 315,000 315,000 315,000 305,000 305,000
Other liabilities   28,452     27,782     31,888     32,274     29,709  
Total liabilities 3,289,311 3,402,633 3,384,167 3,394,988 3,370,471
Stockholders' equity   335,732     346,815     356,545     352,410     349,902  

Total liabilities & stockholders' equity

$ 3,625,043   $ 3,749,448   $ 3,740,712   $ 3,747,398   $ 3,720,373  
 
 
DEPOSIT COMPONENTS    
Treasury (TSRMF) deposits $ 399,970 $ 407,647 $ 416,431 $ 400,752 $ 301,212
Core Bank deposits   2,245,889     2,339,204     2,454,848     2,459,462     2,522,550  
Total Deposits $ 2,645,859   $ 2,746,851   $ 2,871,279   $ 2,860,214   $ 2,823,762  
Core deposits / total deposits 84.9 % 85.2 % 85.5 % 86.0 % 89.3 %
Non-interest bearing deposits/core deposits 47.0 % 48.5 % 48.4 % 47.9 % 47.8 %
 
As of
CAPITAL RATIOS March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018
Tier 1 leverage capital 9.35 % 9.39 % 9.50 % 9.43 % 9.66 %
Tier 1 risk-based capital 11.08 % 10.97 % 11.14 % 10.91 % 11.12 %
Total risk-based capital 12.21 % 12.11 % 12.29 % 12.04 % 12.26 %
Common equity tier 1 capital 11.08 % 10.97 % 11.14 % 10.91 % 11.12 %
 
 
 
For the Quarters Ended
                           
INCOME STATEMENT March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018
 
Interest income $ 31,582 $ 34,114 $ 35,256 $ 35,126 $ 36,325
Interest expense   3,809     4,192     4,439     4,400     4,711  
Net interest income 27,773 29,922 30,817 30,726 31,614
Provision for loan losses   (1,600 )   1,000     (4,000 )   104     650  
Net interest income after provision 29,373 28,922 34,817 30,622 30,964
Non-interest income 1,981 3,141 2,353 1,903 1,995
Non-interest expense   18,730     18,436     20,598     21,123     21,650  
Income before income tax 12,624 13,627 16,572 11,402 11,309
Income tax   4,837     5,273     6,431     10,960     3,305  
Net income $ 7,787   $ 8,354   $ 10,141   $ 442   $ 8,004  
 
 
For the Quarters Ended
PERFORMANCE AND PER SHARE DATA March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018
Return on average equity 9.51 % 9.74 % 11.40 % 0.49 % 9.29 %
Return on average equity before effect of tax rate change 1) 9.51 % 9.74 % 11.40 % 8.00 % 9.29 %
 
Return on average assets 0.87 % 0.91 % 1.08 % 0.05 % 0.87 %
Return on average assets before effect of tax rate change 1) 0.87 % 0.91 % 1.08 % 0.76 % 0.87 %
 
Earning Asset Yields 3.69 % 3.87 % 3.88 % 3.84 % 4.09 %
Cost of Funds   0.45 %   0.48 %   0.49 %   0.48 %   0.53 %
Net interest margin 3.24 % 3.39 % 3.39 % 3.36 % 3.56 %
Efficiency ratio 62.92 % 55.76 % 62.29 % 64.85 % 64.05 %
 
Book value per common share $ 107.12 $ 110.66 $ 113.76 $ 112.44 $ 111.64
Earnings per share - basic $ 2.49 $ 2.67 $ 3.24 $ 0.14 $ 2.55
Earnings per share - basic before effect of tax rate change 1) $ 2.49 $ 2.67 $ 3.24 $ 2.30 $ 2.55
 
Diluted earnings per common share $ 2.49 $ 2.66 $ 3.23 $ 0.14 $ 2.54
Diluted earnings per common share before effect of tax rate change 1) $ 2.49 $ 2.66 $ 3.23 $ 2.29 $ 2.54
 

1) See Statement of non-GAAP measures at the end of this document

 
 
For the Quarters Ended
March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018
 
Interest income
Loans $ 26,124 $ 28,702 $ 30,064 $ 30,048 $ 31,498
Securities 5,031 5,045 4,790 4,619 4,399
FHLB dividends 394 314 320 307 304
CRA investments - - - 22 55
Interest bearing bank balances   33     53     82     130     69  
Total interest income $ 31,582   $ 34,114   $ 35,256   $ 35,126   $ 36,325  
 
Interest expense
Money market 800 837 1,034 1,344 1,505
CD's 1,216 1,438 1,522 1,485 1,221
Other interest bearing deposits 40 35 36 37 41
Borrowings - Short term (<92 days) 560 641 633 342 778
Borrowings - long term   1,193     1,241     1,214     1,192     1,166  
Total interest expense $ 3,809   $ 4,192   $ 4,439   $ 4,400   $ 4,711  
 
 
 
For the Quarters Ended
March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018
 
Non-interest income
Service charges on deposits $ 1,021 $ 1,022 $ 1,013 $ 1,025 $ 977
International income 206 264 256 243 269
Fees and commissions 296 239 232 160 154
Bank owned life insurance 353 384 417 365 603
Gain on sale of OREO / fixed/ other assets 8 521 1 (50 ) (13 )
Gain (loss) on sale of securities (15 ) - 104 56 (191 )
Gain on sale of loans 63 19 56 30 118
Swap fee income - 494 - - -
Other non-interest income   49     198     274     74     78  
Total non-interest income $ 1,981   $ 3,141   $ 2,353   $ 1,903   $ 1,995  
 
Non-interest expense
Salary and employee benefits 14,595 14,302 15,181 15,538 15,542
Deferral of loan origination costs (1,256 ) (1,896 ) (1,492 ) (1,229 ) (986 )
Occupancy 1,710 1,640 1,776 1,682 1,733
Professional Services 575 1,000 1,126 2,274 1,905
FDIC Insurance 308 355 339 239 329
Net OREO expense 39 21 3 43 3
Data processing 807 908 1,059 627 931
Other expense   1,952     2,106     2,606     1,949     2,193  
Total non-interest expense $ 18,730   $ 18,436   $ 20,598   $ 21,123   $ 21,650  
 
 
COMMUNITY BANK - FINANCIAL HIGHLIGHTS
AVERAGE BALANCE SHEET AND YIELDS
(Unaudited)
 
Quarters Ended
(In thousands)     March 31, 2017   June 30, 2017   September 30, 2017   December 31, 2017   March 31, 2018
Average     Yield/   Average     Yield/   Average     Yield/   Average     Yield/   Average     Yield/
Balance   Interest   Rate Balance   Interest   Rate Balance   Interest   Rate Balance   Interest   Rate Balance   Interest   Rate
INTEREST EARNING ASSETS
Loans and leases $ 2,510,592 $ 26,124 4.22 % $ 2,563,327 $ 28,702 4.49 % $ 2,652,270 $ 30,064 4.50 % $ 2,702,750 $ 30,048 4.41 % $ 2,750,908 $ 31,498 4.64 %
Investment securities 924,218 5,031 2.18 % 937,691 5,045 2.15 % 911,808 4,790 2.10 % 867,418 4,619 2.13 % 807,118 4,399 2.18 %
FHLB Stock/Dividends 18,170 394 8.79 % 18,388 314 6.85 % 17,378 320 7.31 % 17,250 307 7.06 % 17,250 304 7.15 %
CRA Bond Investments 0 0 0.00 % 0 0 0.00 % 489 0 0.00 % 3,870 22 2.26 % 9,599 55 2.32 %
FFSold/Fed balances/Due from Time 18,194 33 0.73 % 20,743 53 1.01 % 27,274 82 1.18 % 39,739 130 1.28 % 20,670 69 1.34 %
                                                 
Total Earning Assets 3,471,174 31,582 3.69 % 3,540,149 34,114 3.87 % 3,609,219 35,256 3.88 % 3,631,027 35,126 3.84 % 3,605,545 36,325 4.09 %
 
Nonearning assets 145,407 139,026 129,711 135,599 137,083
         
Total Assets $ 3,616,581 $ 3,679,175 $ 3,738,930 $ 3,766,626 $ 3,742,628
 
INTEREST BEARING LIABILITIES
Time deposits 568,364 1,216 0.87 % 588,910 1,438 0.98 % 570,096 1,522 1.06 % 530,375 1,485 1.11 % 437,634 1,221 1.13 %
Interest bearing demand 84,890 34 0.16 % 75,851 29 0.15 % 75,528 29 0.15 % 73,327 30 0.16 % 79,161 35 0.18 %
Money market 887,016 800 0.37 % 880,323 837 0.38 % 979,452 1,034 0.42 % 1,071,997 1,344 0.50 % 1,100,063 1,505 0.55 %
Savings and other 43,992 6 0.06 % 44,248 6 0.05 % 47,567 7 0.06 % 48,725 7 0.06 % 47,892 6 0.05 %
                                                 
Total Interest Bearing Deposits 1,584,262 2,056 0.53 % 1,589,332 2,310 0.58 % 1,672,643 2,592 0.61 % 1,724,424 2,866 0.66 % 1,664,750 2,767 0.67 %
 
Borrowings - short term 327,984 560 0.69 % 288,088 641 0.89 % 212,728 633 1.18 % 109,635 342 1.24 % 204,394 778 1.54 %
Borrowings - long term 315,000 1,193 1.54 % 313,494 1,241 1.59 % 315,000 1,214 1.53 % 305,109 1,192 1.55 % 305,000 1,166 1.55 %
                                                 
 
Total Interest Bearing Liabilities 2,227,246 3,809 0.69 % 2,190,914 4,192 0.77 % 2,200,371 4,439 0.80 % 2,139,168 4,400 0.82 % 2,174,144 4,711 0.88 %
 
Non-interest bearing deposits 1,023,236 1,113,374 1,154,496 1,236,292 1,186,605
Accrued interest payable and
other liabilities   34,141   31,019   31,037   33,387   32,469
 
Total Liabilities 3,284,623 3,335,307 3,385,904 3,408,847 3,393,218
Shareholders' equity   331,958   343,868   353,026   357,779   349,410
Total Liabilities and
Shareholders' Equity $ 3,616,581 $ 3,679,175 $ 3,738,930 $ 3,766,626 $ 3,742,628
 
Net Interest Spread 3.00 % 3.10 % 3.08 % 3.02 % 3.21 %
 
Effect of noninterest-bearing sources 0.24 % 0.29 % 0.31 % 0.34 % 0.35 %
 
 
Net Interest Income $ 27,773 $ 29,922 $ 30,817 $ 30,726 $ 31,614
 
Net Interest Margin 3.24 % 3.39 % 3.39 % 3.36 % 3.56 %
 
Total Cost of Deposits 0.32 % 0.34 % 0.36 % 0.38 % 0.39 %
 
 
COMMUNITY BANK - FINANCIAL HIGHLIGHTS
 
ALLL Trend and Statistics (Unaudited)
(Amounts in Thousands)
   
For the Quarters Ended
ALLL ROLLFORWARD March 31, 2017     June 30, 2017     September 30, 2017     December 31, 2017     March 31, 2018
Beginning Balance $ 35,166 $ 33,449 $ 34,824 $ 35,345 $ 35,346
 
Provision for / (Release of) Loan Losses (1,600 ) 1,000 (4,000 ) 104 650
 
Charge Offs (295 ) (24 ) (156 ) (215 ) (35 )
Recoveries   178     399     4,677     112     65  
Net Charge Offs (117 ) 375 4,521 (103 ) 30
         
Ending Balance $ 33,449   $ 34,824   $ 35,345   $ 35,346   $ 36,026  
 
Period End Loan Balance $ 2,516,523 $ 2,649,690 $ 2,687,281 $ 2,739,859 $ 2,764,623
 
Average Loan Balance for the period $ 2,510,592 $ 2,563,327 $ 2,652,270 $ 2,702,750 $ 2,750,908
 
ASSET QUALITY INDICATORS                                  
 
Non-Performing Loans 14,979 12,157 3,951 9,041 9,920
OREO - - 825 825 825
         
Total Non-Performing Assets (NPA) $ 14,979   $ 12,157   $ 4,776   $ 9,866   $ 10,745  
         
Criticized Loan Totals $ 25,893   $ 22,366   $ 26,954   $ 17,097   $ 34,774  
 
Loans and Leases 30 - 89 days past due 494 701 1,624 4,175 3,653
Loans and Leases >89 days past due   -     -     -     -     -  
Total Delinquent Loans and Leases $ 494   $ 701   $ 1,624   $ 4,175   $ 3,653  
 
Delinquent Loans and Leases to Total Loans 0.02 % 0.03 % 0.06 % 0.15 % 0.13 %
Net Charge Offs to Avg Loans (Annualized) (0.02 %) 0.06 % 0.68 % (0.02 %) 0.00 %
NPL as a % of Total Loans 0.60 % 0.46 % 0.15 % 0.33 % 0.36 %
NPA as a % of Total Loans + OREO 0.60 % 0.46 % 0.18 % 0.36 % 0.39 %
ALLL/Non Performing loans 223.3 % 286.5 % 894.6 % 391.0 % 363.2 %
ALLL as a % of Total Loans 1.33 % 1.31 % 1.32 % 1.29 % 1.30 %
 
 

COMMUNITY BANK
Statement on Non-GAAP Measures
AAP to Non-GAAP Reconciliation and Calculation of Non-GAAP Performance Measures (unaudited)
(Amounts in Thousands, except shares and per share data)

Community Bank believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations and financial condition of the Bank. Managment uses non-GAAP financial measures in its analysis of the Bank's performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP

   
For the Quarters Ended
March 31, 2017   June 30, 2017   September 30, 2017   December 31, 2017   March 31, 2018
Selected Financial Data and Highlights
Net income 7,787 8,354 10,141 442 8,004
Effect of tax rate change   -     -     -     6,771     -  
Net income before effect of tax rate change $ 7,787   $ 8,354   $ 10,141   $ 7,213   $ 8,004  
 
Statutory income tax rate   41.1 %   41.1 %     41.1 %     41.1 %     29.6 %
 
Effective income tax rate   38.3 %   38.7 %     38.8 %     96.1 %     29.2 %
 
Return on average equity 9.51 % 9.74 % 11.40 % 0.49 % 9.29 %
Effect of tax rate change   0.00     0.00     0.00     7.51     0.00  
Return on average equity before effect of tax rate change   9.51 %   9.74 %   11.40 %   8.00 %   9.29 %
 
Return on average assets 0.87 % 0.91 % 1.08 % 0.05 % 0.87 %
Effect of tax rate change   0.00     0.00     0.00     0.71     0.00  
Return on average assets before the effect of tax rate change   0.87 %   0.91 %   1.08 %   0.76 %   0.87 %
 
 
Earnings per share - basic $ 2.49 $ 2.67 $ 3.24 $ 0.14 $ 2.55
Effect of tax rate change   0.00     0.00     0.00     2.16     0.00  
Earnings per share - basic before effect of tax rate change $ 2.49   $ 2.67   $ 3.24   $ 2.30   $ 2.55  
 
Earnings per share - diluted $ 2.49 $ 2.66 $ 3.23 $ 0.14 $ 2.54
Effect of tax rate change   0.00     0.00     0.00     2.15     0.00  
Earnings per share - diluted before effect of tax rate change $ 2.49   $ 2.66   $ 3.23   $ 2.29   $ 2.54  
 
Weighted average shares outstanding - basic 3,131,569 3,134,095 3,134,095 3,134,095 3,134,095
Weighted average shares outstanding - dilutive 3,132,931 3,136,435 3,138,277 3,143,534 3,154,255

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Community Bank
J. Duncan Smith, Chief Financial Officer
626-568-2009

Source: Community Bank

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