CBB Bancorp, Inc. Reports Fourth Quarter and Full Year 2020 Financial Results
CBB Bancorp reported a net income of $3.7 million for Q4 2020, up 28.6% from Q3 2020, with diluted EPS of $0.36. For the year, net income fell 25.6% to $9.9 million, or $0.96 per diluted share. Key metrics included a return on average assets of 1.07% and a net interest margin of 3.48%. The fourth quarter saw a noninterest income increase to $3.4 million, aided by an $894k SBA valuation allowance reversal. Total loans rose by 3.5% quarter-over-quarter, and deposits were stable at $1.10 billion, reflecting a strategic focus on core deposits.
- Q4 2020 net income increased by 28.6% quarter-over-quarter to $3.7 million.
- Return on average assets improved to 1.07%, up from 0.85% in Q3 2020.
- Net interest income rose by 10.6% in Q4 2020, reaching $11.8 million.
- Noninterest income increased to $3.4 million in Q4 2020, with a significant $894k reversal of the SBA valuation allowance.
- Total loans increased by 3.5% from Q3 2020, reaching $1.10 billion.
- Full year net income decreased by 25.6%, totaling $9.9 million in 2020.
- Net interest margin declined to 3.41% for the year compared to 3.94% in 2019.
- Provision for loan losses rose significantly to $5.5 million for 2020 from $1.3 million in 2019.
CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank (the "Bank"), announced today net income for fourth quarter 2020 of
Additionally, CBB reported net income for the year ended December 31, 2020 of
Overall Results
Net income for fourth quarter 2020 was positively impacted by the reversal of the SBA valuation allowance of
Net Interest Income and Margin:
Net Interest Income
Net interest income for fourth quarter 2020 was
Net Interest Margin
Our net interest margin for fourth quarter 2020 was
Joanne Kim, President and CEO commented, “During this challenging year, we have focused on increasing core deposits and reducing our cost of funds which resulted in an improvement in our net interest margin. We will continue to focus on improving our net interest margin during 2021.”
Provision for Loan Losses:
The provision for loan losses for fourth quarter 2020 was
Noninterest Income:
Noninterest income for fourth quarter 2020 was
Noninterest Expense:
Noninterest expense for fourth quarter 2020 was
Income Taxes:
The Company’s effective tax rate for fourth quarter 2020 was
Balance Sheet:
Investment Securities:
Investment securities were
Loans Receivable:
Loans receivable (including loans held for sale) at December 31, 2020 was
We provided loan payment deferments to our commercial borrowers under the CARES Act. The first round of three months of loan deferments as of June 30, 2020 totaled
Paycheck Protection Program (PPP):
PPP loans totaled
Allowance for Loan Losses and Asset Quality:
The allowance for loan losses at December 31, 2020 was
SBA Loans Held for Sale:
SBA loans held for sale at December 31, 2020 were
Deposits:
Deposits were
Borrowings:
Borrowings at December 31, 2020 consisted of
Additionally, at December 31, 2020, we repaid approximately
Capital:
Stockholders’ equity was
All of our regulatory capital ratios increased at December 31, 2020 from their levels at September 30, 2020 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 December 31, 2020 was
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 under tab “About Us” and select “Investors Relations” to see 4Q 2020 Overview and COVID-19 update presentation.
FORWARD-LOOKING STATEMENTS:
This news release contains a number of forward-looking statements. These statements may be identified by the 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 guaranties 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 may occur; 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 may occur; 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 may adversely affect us; 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 contained 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 | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
| December, 31 | September 30, | $ | % | December, 31 | $ | % | December, 31 | December, 31 | $ | % | ||||||||||||||||||||||||||||
|
2020 |
|
|
2020 |
|
Change | Change |
|
2019 |
|
Change | Change |
|
2020 |
|
|
2019 |
|
Change | Change | ||||||||||||||||||
| Interest income | $ |
13,613 |
|
$ |
13,212 |
|
$ |
401 |
|
3.0 |
% |
$ |
15,254 |
|
$ |
(1,641 |
) |
(10.8 |
%) |
$ |
54,504 |
|
$ |
63,022 |
|
$ |
(8,518 |
) |
(13.5 |
%) |
||||||||
| Interest expense |
|
1,830 |
|
|
2,558 |
|
|
(728 |
) |
(28.5 |
%) |
|
4,517 |
|
|
(2,687 |
) |
(59.5 |
%) |
|
11,711 |
|
|
18,656 |
|
|
(6,945 |
) |
(37.2 |
%) |
||||||||
| Net interest income |
|
11,783 |
|
|
10,654 |
|
|
1,129 |
|
10.6 |
% |
|
10,737 |
|
|
1,046 |
|
9.7 |
% |
|
42,793 |
|
|
44,366 |
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