Inland Community Bank announces 1Q results

ICB Financial, parent company of Inland Community Bank, reported a $50,000 profit during the year’s first quarter.

That number profit compares with a $187,000 profit during the first three months of 2010.
ICB Financial CEO James S. Cooper wrote in a letter to shareholders that “community banking in the area is still recovering slowly from the business downturn that began in 2007.”

ICB Financial “started off the first quarter of 2011 with a focus on consolidation, strategic retrenchment, and emphasis on the sound business principles that have been the foundation of our success during the past 21 years.”

ICB Financial also reported having about $256 million in total assets during the first quarter of 2011, compared with nearly $284 million during the same period last year. The banking firm classified 5.03 percent of those assets as nonperforming at the end of March 31, up from the 3.35 percent figure one year prior.

ICB Financial’s provisions for loan and lease losses stood at $150,000 at the end of 2011’s first quarter, less than the $263,000 one year previous.

The bank’s total risk-based capital ratio at March 31, was 18.75 percent, compared to 15.25 percent at year-end 2010. A 10 percent ratio is the FDIC’s minimum benchmark for a “well capitalized” institution.

ICB Financial’s report is here.

CVB shares jump after sale of bad loans

CVB Financial Corp.’s shares jumped a day after the Ontario-based lender said it had sold its underperforming loans. Shares shot up 9.14 percent to close at $8.84 on Tuesday.

CVB, the parent company to Citizens Business Bank, sold six of seven notes, which were held in connection to the bank’s relationship with its largest borrower, for $41 million in a deal that closed Friday. The undisclosed buyer paid $36 million in cash and $5 million in the form of a note secured by an office building near CVB Financial’s Ontario headquarters.

The borrower ran into trouble paying off its loans to CVB last year, leading CVB to charge off $34 million in loans at the time. The most recent sale added $1.9 million in charge offs from the lending relationship. MarketWatch has reported that Paul Garrett, the chairman of Temecula-based real estate investment firm The Garrett Group LLC, is CVB’s largest borrower.