Commonwealth Business Bank reported unaudited earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company reported net interest income of $7,562,000 against $6,323,000 a year ago. Income before income taxes was $4,298,000 against $4,133,000 a year ago. Net income was $2,546,000 or $0.30 per diluted share against $2,372,000 or $0.29 per diluted share a year ago. Return on average assets was 1.31% against 1.46% a year ago. Return on average equity was 11.31% against 12.56% a year ago. The quarter-over-quarter decrease in net income was primarily driven by a $200,000 increase in the provision for loan losses and an $835,000 increase in core system conversion costs. Offsetting these items were a $296,000 increase in net interest income, a $532,000 increase in gains on sales of SBA loans and a $327,000 decrease in the provision for income taxes.

For the year, the company reported net interest income of $28,512,000 against $22,862,000 a year ago. Income before income taxes was $19,131,000 against $19,131,000 a year ago. Net income was $11,275,000 or $1.35 per diluted share against $11,174,000 or $1.36 per diluted share a year ago. Return on average assets was 1.55% against 1.84% a year ago. Return on average equity was 13.44% against 15.96% a year ago. The increase in net income was primarily due to a $5.7 million, or 24.7%, increase in net interest income, which was partially offset by an $878,000 increase in the provision for loan losses, an $867,000 decline in gains on sales of SBA loans and a $3.9 million increase in noninterest expenses. Included in the increase in noninterest expenses were $944,000 of non-recurring pre-tax core system conversion costs.