California Community Bank, which is based in Escondido and has four branches, reported Feb. 22 net earnings of $864,000 for 2011, compared with net earnings of $1.67 million for 2010.
For the fourth quarter, Cal Community reported net income of $176,000, compared with $544,000 in the like quarter of 2010.
CEO Larry Hartwig said the bank’s reduced profits were the result of having to pay income taxes on profits last year; in the prior year, the bank’s earnings weren’t taxable.
Cal Community, founded in 2003, announced last month that it is being acquired by Regents Bank, which is now a subsidiary of Grandpoint Capital, a Los Angeles-based bank holding company, for $30 million plus future earnings.
Hartwig said the price paid by Grandpoint is about a $2 premium over CCB’s book value. Under the terms of the agreement, Cal Community would merge into Regents, which is retaining its management team and name. Regents would take over CCB’s branches in Escondido, Encinitas, San Diego and Vista.
CCB finished 2011 with $243.7 million in assets, up 10 percent from the prior year. Total loans were $159.7 million, up 7 percent, and deposits grew 12 percent to $217.1 million.
— Mike Allen
