CBB Bancorp, Inc. Reports First Quarter Financial Results

LOS ANGELES–(BUSINESS WIRE)–CBB Bancorp, Inc. (“CBB” or the “Company’) (OTCQX: CBBI), the holding company of Commonwealth Business Bank (the “Bank”), today announced net income for first quarter 2020 of $1.6 million, or $0.16 per diluted share, a decrease of 43.5% compared to $2.9 million, or $0.28 per diluted share, in the prior quarter and a decrease of 55.1% compared to $3.6 million, or $0.35 per share, in the same period last year.

Joanne Kim, President and CEO, commented, “The COVID-19 pandemic has caused an economic shutdown in the communities we serve, as well as in communities around the world. The financial effects are yet to be quantified for our Bank as we move forward in 2020 and beyond, however we believe our contingency planning, and our strong capital and liquidity will carry us through these challenging times. All branches and the corporate office are open to serve our customers, while observing recommended health precautions. As an SBA lender, we have dedicated our full resources on securing SBA loans for customers under the Paycheck Protection Program (“PPP”). To date, we have secured authorizations for more than 600 borrowers, and we have funded over 350 PPP loans through April 24, 2020.”

Overall Results

The decline in net income of $1.2 million, compared with fourth quarter 2019, was primarily due to lower gain on sale of SBA loans, higher compensation and marketing costs, and lower net interest income in first quarter 2020.

The decline in net income of $2.0 million, compared with first quarter 2019, was primarily due to lower net interest income due to declining interest rates, lower gain on sale of SBA loans, and higher compensation costs, offset by lower professional costs.

“While the effects of the pandemic will shape our future financial results in the coming quarters, the reductions in interest rates in the second half of 2019, and in March 2020, were the story for the last two quarters. Three rate cuts aggregating 75 basis points in 2019, and two emergency rate cuts aggregating 150 basis points in March 2020, drastically changed our asset/liability strategies. While our net interest margin declined 30 basis points, comparing first quarter 2020 with 2019, it increased 9 basis points, comparing first quarter 2020 with fourth quarter 2019. With the additional emergency rate cuts in March 2020, we anticipate more margin pressure in the coming quarters,” said Ms. Kim.

Net Interest Income and Margin:

Net Interest Income

Net interest income for first quarter 2020 was $10.5 million, a decrease of $245 thousand, or 2.3%, from fourth quarter 2019 and $11.3 million, a decrease of $795 thousand, or 7.0%, from first quarter 2019. We anticipate continued margin pressure, and will focus on managing the pricing and duration of our deposits and borrowings. The decrease in net interest income was primarily driven by a decline in market interest rates. Our adjustable rate loans, which comprise approximately 46% of our loan portfolio, repriced downward immediately due to the rate cuts by the Federal Open Market Committee (“FOMC”). Time deposits, which comprised 57% of total deposits, are repricing lower, but at a much slower pace.

Net Interest Margin

Our net interest margin for first quarter 2020 was 3.86% compared to 3.77% in the fourth quarter of 2019 and 4.16% for the first quarter of 2019. The increase in margin from the prior quarter was due to lower average deposit balances and our efforts to reduce our cost of funds. Our cost of funds for first quarter 2020 was 1.67% compared to 1.79% in fourth quarter 2019 and 1.76% for first quarter 2019.

Provision for Loan Losses:

Our provision for loan losses for first quarter 2020 was $700 thousand, unchanged from our provision of $700 thousand for fourth quarter 2019. There was no provision for loan losses for first quarter 2019. Approximately $500 thousand of the first quarter provision was driven primarily by an increase in qualitative factors relating to deteriorating macro-economic conditions, while $200 thousand was attributed to loan growth for the quarter. The assumptions underlying these qualitative factors included a deterioration in the macro-economic environment caused by the pandemic and the impact of deferring loan payments for customers as an accommodation due to the pandemic. Ms. Kim commented, “The unprecedented economic contraction related to COVID-19 will have a significant negative impact to our 2020 net income. Although our credit quality remains strong to date, we expect that our provision for loan losses will increase and deterioration in our credit quality may likely occur as this pandemic continues.” See Table 10 for additional details and trends.

Noninterest Income:

Noninterest income for first quarter 2020 was $1.7 million compared to $2.3 million for fourth quarter 2019 and $2.1 million for first quarter 2019. The decrease in first quarter 2020 was primarily due to lower gain on sale of SBA loans. During the first quarter, the secondary market, into which we sell SBA loans, began exhibiting signs of concern on the part of investors, that the default risk was increasing due to the pandemic. As a result, premiums (the price investors were willing to pay to purchase SBA loans) declined significantly. Premiums received in fourth quarter 2019 averaged 7.6%, however bids received in the second half of first quarter 2020 averaged 4.0%. As a result, the volume of loans sold during first quarter 2020 was $18.5 million, compared with $28.9 million for fourth quarter 2019, and $24.5 million for first quarter 2019.

Noninterest Expense:

Noninterest expense for first quarter 2020 was $8.9 million compared to $8.4 million for fourth quarter 2019 and $8.4 million for first quarter 2019. Marketing expense increased in first quarter 2020 due to the planned Ladies Professional Golf Tournament in April 2020 for which the Bank is a sponsor. The event was postponed due to the pandemic. Professional fees, related to compliance consulting, declined compared with first quarter 2019.

Income Taxes:

The Company’s effective tax rate for first quarter 2020 was 37.0% compared to 28.5% for fourth quarter 2019 and 28.8% in first quarter 2019. The increase in our effective tax rate was primarily due to the effect of significantly lower projected pre-tax income versus permanent differences as defined in Internal Revenue Service regulations.

Balance Sheet:

Investment Securities:

Investment securities were $91.9 million at March 31, 2020, down $2.8 million from December 31, 2019 and down $10.0 million from March 31, 2019. The decreases were due to principal paydowns. There were no portfolio additions. The unrealized gains and losses in the investment portfolio at March 31, 2020 are estimated based on observable market data, and the disruption in the securities market due to the pandemic could result in different results if such securities were sold.

Loans Receivable:

Loans receivable outstanding (including loans held for sale) at March 31, 2020 was $961.7 million, an increase of $26.0 million, or 2.8%, from December 31, 2019, and $935.7 million, an increase of $42.1 million, or 4.6%, from $919.6 million at March 31, 2019. Ms. Kim further commented, “As reported last quarter, organic loan growth slowed, exacerbated by the decline in interest rates, and the rush by loan customers to refinance at lower fixed rates. This continued into first quarter 2020, but the pandemic abruptly changed our focus to the SBA Paycheck Protection Program. In addition, we implemented a loan deferment program under guidelines provided by regulators and the accounting profession.”

Allowance for Loan Losses and Asset Quality:

The allowance for loan losses at March 31, 2020 was $11.0 million, or 1.18% of portfolio loans, compared to $10.6 million, or 1.17% of portfolio loans, at December 31, 2019. Non-performing loans and other real estate owned as of March 31, 2020 was $7.3 million, down from $8.4 million at December 31, 2019. Our coverage ratio of allowance for loan losses to nonperforming assets continues to exceed 100%. See comments under “Provision for Loan Losses”, and Table 10 for additional details and trends regarding asset quality.

SBA Loans Held for Sale:

SBA loans held for sale at March 31, 2020 were $30.0 million, compared to $28.8 million at December 31, 2019. We continue to assess SBA loan sale premiums and plan to sell loans when it is advantageous to do so. However, due to the COVID-19 pandemic, we saw a slowdown in the SBA loan sales secondary market towards the end of the quarter. See comments under “Noninterest Income”, and the Table 7 for additional SBA loan origination and sale data.

Deposits:

The decrease in deposits was part of our strategy to diversify the mixture of funding sources, and to lower our funding costs, which were heavily emphasized by retail and wholesale certificates of deposits. The run-off of non-relationship CDs accounted for most of the first quarter decline in deposits. The drastic decline in interest rates by the FOMC caused our adjustable rate loan portfolio to immediately reprice lower, yet our CD dependent portfolio will lag the loan portfolio repricing and will reprice as deposits reach their maturities. Our diversification strategy includes using our borrowing facilities, as well as driving core deposits through our recently formed Specialty Deposit Group, which is comprised of experienced bankers who provide specialized treasury management services to deposit-rich markets.

Borrowings:

Borrowings at March 31, 2020 consisted of $85.0 million of Federal Home Loan Bank of San Francisco (FHLB-SF) advances, up $60 million from December 31, 2019. The historically low market interest rates enabled us to match our fixed rate loans with long term, low cost funds, while minimizing interest rate risk.

Additionally, we are working with over 600 borrowers on PPP loans totaling approximately $59 million. We will access the Federal Reserve Bank credit facility related to the SBA PPP Liquidity Facility which will allow the Bank to fund PPP loans without taking on liquidity or funding risk. The current borrowing rate for the facility is 0.35% and the PPP loan rate is 1% plus a 5% loan fee.

Capital:

Stockholders’ equity was $149.8 million at March 31, 2020, representing an increase of $1.7 million, or 1.2%, over stockholders’ equity of $148.1 million at December 31, 2019. Book value per share at quarter end was $14.63 compared with $14.52 at December 31, 2019, an increase of $0.11 per share or 0.8%.

All of our regulatory capital ratios increased at March 31, 2020 from their levels at December 31, 2019 and continue to exceed the minimum levels required to be considered “Well Capitalized” as defined for bank regulatory purposes and in compliance with the fully phased-in Basel III requirements, which went into effect on January 1, 2019, as shown on Table 11 in this press release. Importantly, our Common Equity Tier 1 risked-based capital at March 31, 2020 was 14.82% at the Company level and 14.77% at the Bank level.

Soon Han Pak, Chairwoman of CBB Bancorp and CBB Bank commented, “Our Board was concerned with a potential economic downturn throughout 2019, but never imagined a global pandemic would bring the economy to an abrupt halt in 2020. We were quite comfortable with a high capital level and strong liquidity, and that strategy puts us in a stronger position to weather the fallout from the pandemic.”

About CBB Bancorp, Inc.:

CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in small-to medium-sized businesses and does business as “CBB Bank.” The Bank has eight full-service branches in Los Angeles and Orange Counties in California, and Dallas County in Texas; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington.

For additional information, please go to www.cbb-bank.com.

FORWARD-LOOKING STATEMENTS:

This news release contains a number of forward-looking statements. These statements may be identified by use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guaranteeing of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. You should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and the Bank; significant increases in loan losses; the possibility that changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, the effects of the COVID-19 pandemic, and of other widespread outbreaks of disease or pandemics, together with related impacts on general economic conditions, including adverse impacts on our customers’ ability to make timely payments on their loans from us, reduced fee income due to reduced loan origination activity, reductions in or absence of gains on loan sales due to uncertainty in the loan sale market, and increased operating expense due to required changes in how we conduct our business; or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive to implement or accommodate than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. The Company undertakes no obligation to revise any forward-looking statement contain herein to reflect any future events or circumstances, except to the extent required by law.

Schedules and Financial Data: All tables and data to follow;

STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) – Table 1

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

December 31,

 

$

 

%

 

March 31,

 

$

 

%

 

 

 

 

2020

 

2019

 

Change

 

Change

 

2019

 

Change

 

Change

 

 
Interest income

$

14,473

 

$

15,254

 

$

(781

)

(5.1

%)

$

15,584

 

$

(1,111

)

(7.1

%)

Interest expense

 

3,981

 

 

4,517

 

 

(536

)

(11.9

%)

 

4,297

 

 

(316

)

(7.4

%)

Net interest income

 

10,492

 

 

10,737

 

 

(245

)

(2.3

%)

 

11,287

 

 

(795

)

(7.0

%)

 
Provision for loan losses

 

700

 

 

700

 

 

 

 

 

 

 

700

 

100.0

%

Net interest income after provision for loan losses

 

9,792

 

 

10,037

 

 

(245

)

(2.4

%)

 

11,287

 

 

(1,495

)

(13.2

%)

 
Gain on sale of loans

 

939

 

 

1,481

 

 

(542

)

(36.6

%)

 

1,167

 

 

(228

)

(19.5

%)

Gain (loss) on sale of OREO

 

(6

)

 

 

 

(6

)

(100.0

%)

 

(10

)

 

4

 

40.0

%

SBA servicing fee income, net

 

372

 

 

413

 

 

(41

)

(9.9

%)

 

503

 

 

(131

)

(26.0

%)

SBA servicing right impairment

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and other income

 

396

 

 

416

 

 

(20

)

(4.8

%)

 

457

 

 

(61

)

(13.3

%)

Noninterest income

 

1,701

 

 

2,310

 

 

(609

)

(26.4

%)

 

2,117

 

 

(416

)

(19.7

%)

 
Salaries and employee benefits

 

5,702

 

 

5,355

 

 

347

 

6.5

%

 

5,098

 

 

604

 

11.8

%

Occupancy and equipment

 

946

 

 

978

 

 

(32

)

(3.3

%)

 

832

 

 

114

 

13.7

%

Marketing expense

 

458

 

 

119

 

 

339

 

284.9

%

 

520

 

 

(62

)

(11.9

%)

Professional expense

 

435

 

 

417

 

 

18

 

4.3

%

 

638

 

 

(203

)

(31.8

%)

Other expenses

 

1,394

 

 

1,487

 

 

(93

)

(6.3

%)

 

1,276

 

 

118

 

9.2

%

Noninterest expense

 

8,935

 

 

8,356

 

 

579

 

6.9

%

 

8,364

 

 

571

 

6.8

%

 
Income before income tax expense

 

2,558

 

 

3,991

 

 

(1,433

)

(35.9

%)

 

5,040

 

 

(2,482

)

(49.2

%)

 
Income tax expense

 

946

 

 

1,137

 

 

(191

)

(16.8

%)

 

1,450

 

 

(504

)

(34.8

%)

 
Net income

$

1,612

 

$

2,854

 

$

(1,242

)

(43.5

%)

$

3,590

 

$

(1,978

)

(55.1

%)

 
Effective tax rate

 

37.0

%

 

28.5

%

 

8.5

%

29.8

%

 

28.8

%

 

8.2

%

28.5

%

 
Outstanding number of shares

 

10,237,310

 

 

10,197,380

 

 

39,930

 

0.4

%

 

10,107,485

 

 

129,825

 

1.3

%

 
Weighted average shares for basic EPS

 

10,224,146

 

 

10,188,700

 

 

35,446

 

0.3

%

 

10,102,220

 

 

121,926

 

1.2

%

Weighted average shares for diluted EPS

 

10,327,730

 

 

10,336,793

 

 

(9,063

)

(0.1

%)

 

10,359,833

 

 

(32,103

)

(0.3

%)

 
Basic EPS

$

0.16

 

$

0.28

 

$

(0.12

)

(42.9

%)

$

0.36

 

$

(0.20

)

(55.6

%)

Diluted EPS

$

0.16

 

$

0.28

 

$

(0.12

)

(42.9

%)

$

0.35

 

$

(0.19

)

(54.3

%)

 
Return on average assets

 

0.58

%

 

0.97

%

 

(0.39

%)

(40.2

%)

 

1.28

%

 

(0.70

%)

(54.7

%)

Return on average equity

 

4.31

%

 

7.66

%

 

(3.35

%)

(43.7

%)

 

11.21

%

 

(6.90

%)

(61.6

%)

 
Efficiency ratio¹

 

73.28

%

 

64.05

%

 

9.23

%

14.4

%

 

62.40

%

 

10.88

%

17.4

%

Yield on interest-earning assets²

 

5.31

%

 

5.35

%

 

(0.04

%)

(0.8

%)

 

5.73

%

 

(0.42

%)

(7.3

%)

Cost of funds

 

1.67

%

 

1.79

%

 

(0.12

%)

(6.7

%)

 

1.76

%

 

(0.09

%)

(5.1

%)

Net interest margin²

 

3.86

%

 

3.77

%

 

0.09

%

2.4

%

 

4.16

%

 

(0.30

%)

(7.2

%)

 
¹ Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned.
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) – Table 2
(Dollars in thousands)
 

March 31,

 

December 31,

 

$

 

%

 

March 31,

 

$

 

%

2020

 

2019

 

Change

 

Change

 

2019

 

Change

 

Change

ASSETS
Cash and due from banks

$

7,804

 

$

10,059

 

$

(2,255

)

(22.4

%)

$

10,837

 

$

(3,033

)

(28.0

%)

Interest-earning deposits at the FRB and other banks

 

113,880

 

 

93,259

 

 

20,621

 

22.1

%

 

111,305

 

 

2,575

 

2.3

%

Investment securities¹

 

91,863

 

 

94,640

 

 

(2,777

)

(2.9

%)

 

101,825

 

 

(9,962

)

(9.8

%)

Loans held-for-sale, at the lower of cost or fair value

 

29,989

 

 

28,826

 

 

1,163

 

4.0

%

 

45,275

 

 

(15,286

)

(33.8

%)

 
Loans receivable

 

931,717

 

 

906,875

 

 

24,842

 

2.7

%

 

874,330

 

 

57,387

 

6.6

%

Allowance for loan losses

 

(11,034

)

 

(10,596

)

 

(438

)

(4.1

%)

 

(9,760

)

 

(1,274

)

(13.1

%)

Loans receivable, net

 

920,683

 

 

896,279

 

 

24,404

 

2.7

%

 

864,570

 

 

56,113

 

6.5

%

 
OREO

 

364

 

 

362

 

 

2

 

0.6

%

 

15

 

 

349

 

2326.7

%

Restricted stock investments

 

8,194

 

 

8,194

 

 

 

 

 

7,879

 

 

315

 

4.0

%

Servicing assets

 

9,203

 

 

9,697

 

 

(494

)

(5.1

%)

 

10,303

 

 

(1,100

)

(10.7

%)

Other assets

 

20,144

 

 

21,372

 

 

(1,228

)

(5.7

%)

 

25,610

 

 

(5,466

)

(21.3

%)

Total assets

$

1,202,124

 

$

1,162,688

 

$

39,436

 

3.4

%

$

1,177,619

 

$

24,505

 

2.1

%

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing

$

211,139

 

$

209,484

 

$

1,655

 

0.8

%

$

198,940

 

$

12,199

 

6.1

%

Interest-bearing

 

739,285

 

 

763,822

 

 

(24,537

)

(3.2

%)

 

816,603

 

 

(77,318

)

(9.5

%)

Total deposits

 

950,424

 

 

973,306

 

 

(22,882

)

(2.4

%)

 

1,015,543

 

 

(65,119

)

(6.4

%)

 
FHLB advances

 

85,000

 

 

25,000

 

 

60,000

 

240.0

%

 

10,000

 

 

75,000

 

750.0

%

Other liabilities

 

16,895

 

 

16,298

 

 

597

 

3.7

%

 

15,595

 

 

1,300

 

8.3

%

Total liabilities

 

1,052,319

 

 

1,014,604

 

 

37,715

 

3.7

%

 

1,041,138

 

 

11,181

 

1.1

%

 
Stockholders’ Equity

 

149,805

 

 

148,084

 

 

1,721

 

1.2

%

 

136,481

 

 

13,324

 

9.8

%

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

$

1,202,124

 

$

1,162,688

 

$

39,436

 

3.4

%

$

1,177,619

 

$

24,505

 

2.1

%

 
CAPITAL RATIOS
Leverage ratio
Company

 

13.17

%

 

12.59

%

 

0.58

%

4.61

%

 

11.96

%

 

1.21

%

10.12

%

Bank

 

13.12

%

 

12.55

%

 

0.57

%

4.54

%

 

11.94

%

 

1.18

%

9.88

%

Common equity tier 1 risk-based capital ratio
Company

 

14.82

%

 

14.96

%

 

(0.14

%)

(0.94

%)

 

14.54

%

 

0.28

%

1.93

%

Bank

 

14.77

%

 

14.91

%

 

(0.14

%)

(0.94

%)

 

14.51

%

 

0.26

%

1.79

%

Tier 1 risk-based capital ratio
Company

 

14.82

%

 

14.96

%

 

(0.14

%)

(0.94

%)

 

14.54

%

 

0.28

%

1.93

%

Bank

 

14.77

%

 

14.91

%

 

(0.14

%)

(0.94

%)

 

14.51

%

 

0.26

%

1.79

%

Total risk-based capital ratio
Company

 

16.01

%

 

16.13

%

 

(0.12

%)

(0.74

%)

 

15.65

%

 

0.36

%

2.30

%

Bank

 

15.95

%

 

16.08

%

 

(0.13

%)

(0.81

%)

 

15.62

%

 

0.33

%

2.11

%

Book value per share

$

14.63

 

$

14.52

 

$

0.11

 

0.8

%

$

13.50

 

$

1.13

 

8.4

%

Loan-to-Deposit (LTD) ratio

 

98.03

%

 

93.17

%

 

4.86

%

5.22

%

 

86.09

%

 

11.94

%

13.87

%

Nonperforming assets

 

7,265

 

 

8,392

 

 

(1,127

)

(13.4

%)

 

1,085

 

$

6,180

 

569.59

%

Nonperforming assets as a % of loans receivable

 

0.74

%

 

0.89

%

 

(0.15

%)

(16.85

%)

 

0.12

%

 

0.62

%

516.67

%

ALLL as a % of loans receivable

 

1.18

%

 

1.17

%

 

0.01

%

0.85

%

 

1.12

%

 

0.06

%

5.36

%

¹ Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) – Table 3

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

 

 

2020

 

2019

 

2019

 

2019

 

2019

 

 

 
Interest income

$

14,473

 

$

15,254

 

$

15,888

 

$

16,296

 

$

15,584

 

Interest expense

 

3,981

 

 

4,517

 

 

4,977

 

 

4,865

 

 

4,297

 

Net interest income

 

10,492

 

 

10,737

 

 

10,911

 

 

11,431

 

 

11,287

 

 
Provision for loan losses

 

700

 

 

700

 

 

300

 

 

300

 

 

 

Net interest income after provision for loan losses

 

9,792

 

 

10,037

 

 

10,611

 

 

11,131

 

 

11,287

 

 
Gain on sale of loans

 

939

 

 

1,481

 

 

1,396

 

 

2,109

 

 

1,167

 

Gain (loss) on sale of OREO

 

(6

)

 

 

 

 

 

(4

)

 

(10

)

SBA servicing fee income, net

 

372

 

 

413

 

 

523

 

 

312

 

 

503

 

SBA servicing right impairment

 

 

 

 

 

 

 

 

 

 

Service charges and other income

 

396

 

 

416

 

 

505

 

 

577

 

 

457

 

Noninterest income

 

1,701

 

 

2,310

 

 

2,424

 

 

2,994

 

 

2,117

 

 
Salaries and employee benefits

 

5,702

 

 

5,355

 

 

5,132

 

 

5,467

 

 

5,098

 

Occupancy and equipment

 

946

 

 

978

 

 

869

 

 

831

 

 

832

 

Marketing expense

 

458

 

 

119

 

 

302

 

 

989

 

 

520

 

Professional expense

 

435

 

 

417

 

 

691

 

 

574

 

 

638

 

Other expenses

 

1,394

 

 

1,487

 

 

1,203

 

 

1,340

 

 

1,276

 

Noninterest expense

 

8,935

 

 

8,356

 

 

8,197

 

 

9,201

 

 

8,364

 

 
Income before income tax expense

 

2,558

 

 

3,991

 

 

4,838

 

 

4,924

 

 

5,040

 

 
Income tax expense

 

946

 

 

1,137

 

 

1,421

 

 

1,441

 

 

1,450

 

 
Net income

$

1,612

 

$

2,854

 

$

3,417

 

$

3,483

 

$

3,590

 

 
Effective tax rate

 

37.0

%

 

28.5

%

 

29.4

%

 

29.3

%

 

28.8

%

 
Outstanding number of shares

 

10,237,310

 

 

10,197,380

 

 

10,170,760

 

 

10,140,760

 

 

10,107,485

 

 
Weighted average shares for basic EPS

 

10,224,146

 

 

10,188,700

 

 

10,141,086

 

 

10,125,622

 

 

10,102,220

 

Weighted average shares for diluted EPS

 

10,327,730

 

 

10,336,793

 

 

10,321,937

 

 

10,341,488

 

 

10,359,833

 

 
Basic EPS

$

0.16

 

$

0.28

 

$

0.34

 

$

0.34

 

$

0.36

 

Diluted EPS

$

0.16

 

$

0.28

 

$

0.33

 

$

0.33

 

$

0.35

 

 

QUARTERLY SALARIES BENEFIT METRICS (Unaudited) – Table 4

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or for the Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2020

 

2019

 

2019

 

2019

 

2019

 

 
Salaries and benefits

$

5,702

 

$

5,355

 

$

5,132

 

$

5,467

 

$

5,098

 

FTE at the end of period

 

194

 

 

190

 

 

190

 

 

192

 

 

186

 

Average FTE during the period

 

192

 

 

191

 

 

191

 

 

192

 

 

185

 

Salaries and benefits/average FTE¹

$

119

 

$

111

 

$

106

 

$

114

 

$

112

 

Salaries and benefits/average assets¹

 

2.03

%

 

1.83

%

 

1.72

%

 

1.87

%

 

1.82

%

Noninterest expense/average assets¹

 

3.19

%

 

2.85

%

 

2.75

%

 

3.15

%

 

2.99

%

Contacts

Long T. Huynh, EVP & CFO

(323) 988-3010

Longh@cbb-bank.com

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