Community Bank announced the completion of a balance sheet restructuring that began over a year ago on Friday.

“The low rate environment has allowed us to lock in fixed rate funding at favorable rates while utilizing the gains in our investment portfolio to reduce our higher rate wholesale borrowings, giving us the opportunity to further strengthen our financial position” said David R. Misch, Chief Executive Officer.

The completion of the program announced today included the repayment of $153 million in high fixed-rate borrowings with rates averaging 3.65% and the sale of investments yielding 2.65% on average.

While the repayment will reduce second quarter after-tax earnings by $3.8 million, the combined actions will lower the cost of funds to the low thirties, increase net interest margin and improve the Bank’s after-tax income approximately $1.0 million per year.

Chairman of the Board, Douglas J. McEachern commented, “The Management and Board of Directors, after thorough review and consideration, made the determination it was in the best interest of the Bank, its clients and shareholders to deleverage the balance sheet and reduce ongoing funding costs. We strongly believe that this action positions us for the future and enhances our ability to fund our current and ongoing business operations.”

Community Bank, founded in 1945, is an independent Southern California regional community bank, with assets of $3.6 billion and headquartered in Pasadena with 17 business centers: Anaheim, Burbank, Century City, Commerce, Corona, Fontana, Glendale, Huntington Beach, Irvine, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, Ventura and Woodland Hills.

For more information, visit the Community Bank Website at www.cbank.com.