AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

CommerceWest Bank Reports Third Quarter 2019 EPS of $0.52 up 33% and YTD EPS of $1.71 up 64%

October 23, 2019

IRVINE, Calif.--(BUSINESS WIRE)--Oct 23, 2019--

CommerceWest Bank ( OTCBB: CWBK ) reported net income for the three months ended September 30, 2019 of $2,016,000 or $0.52 per common share, compared with net income of $1,576,000 or $0.39 per common share for the three months ended September 30, 2018, an EPS increase of 33%. Net income for the nine months ended September 30, 2019 of $6,094,000 or $1.71 per common share, compared with net income of $4,245,000 or $1.04 per common share for the nine months ended September 30, 2018, an EPS increase of 64%.

Key Financial Results for the three months ended September 30, 2019:

Key Financial Results for the nine months ended September 30, 2019:

Mr. Ivo A. Tjan, Chairman and CEO, commented, “The Bank had another strong quarter of earnings and returns for shareholders, demonstrating the strength and resilience of our business model despite some negative economic trends.” Mr. Tjan continued, “We had good deposit and loan growth over the prior quarter. Our team continues to be disciplined in managing expenses and focusing on credit quality, which has resulted in reduced costs for the quarter with a fortress balance sheet.”

Total assets increased $45.3 million as of September 30, 2019, an increase of 8% as compared to the same period one year ago. Total loans increased $11.8 million as of September 30, 2019, an increase of 3% over the prior year. Cash and due from banks increased $31.3 million or 38% from the prior year. Total investment securities increased $5.1 million, an increase of 8% from the prior year.

Total deposits increased $41.1 million as of September 30, 2019, an increase of 8% from September 30, 2018. Non-interest-bearing deposits increased $37.8 million as of September 30, 2019, an increase of 15% over the prior year. Interest-bearing deposits increased $3.3 million as of September 30, 2019, an increase of 1% over the prior period.

Interest income was $6,486,000 for the three months ended September 30, 2019 as compared to $6,108,000 for the three months ended September 30, 2018, an increase of 6%. Interest income was $19,386,000 for the nine months ended September 30, 2019 as compared to $17,623,000 for the nine months ended September 30, 2018, an increase of 10%. Interest expense was $1,157,000 for the three months ended September 30, 2019 as compared to $929,000 for the three months ended September 30, 2018, an increase of 25%. Interest expense was $3,398,000 for the nine months ended September 30, 2019 as compared to $2,214,000 for the nine months ended September 30, 2018, an increase of 53%.

Net interest income for the three months ended September 30, 2019 was $5,330,000 as compared to $5,179,000 for the three months ended September 30, 2018, an increase of 3%. The net interest margin decreased for the three months ended September 30, 2019. It decreased from 4.02% in 2018 to 3.78% in 2019, a decrease of 6%. Net interest income for the nine months ended September 30, 2019 was $15,988,000 as compared to $15,409,000 for the nine months ended September 30, 2018, an increase of 4%. The net interest margin decreased for the nine months ended September 30, 2019. It decreased from 4.08% in 2018 to 3.91% in 2019, a decrease of 4%.

Provision for loan losses for the three months ended September 30, 2019 was $210,000 compared to $300,000 for the three months ended September 30, 2018, a decrease of 30%. Provision for loan losses for the nine months ended September 30, 2019 was $520,000 compared to $1,855,000 for the nine months ended September 30, 2018, a decrease of 72%.

Non-interest income for the three months ended September 30, 2019 was $910,000 compared to $634,000 for the same period last year, an increase of 44%. Non-interest income for the nine months ended September 30, 2019 was $2,262,000 compared to $2,018,000 for the same period last year, an increase of 12%.

Non-interest expense for the three months ended September 30, 2019 was $3,254,000 compared to $3,325,000 for the same period last year, a decrease of 2%. Non-interest expense for the nine months ended September 30, 2019 was $9,929,000 compared to $9,857,000 for the same period last year, an increase of 1%.

The Bank’s efficiency ratio for the three months ended September 30, 2019 was 51.62% compared to 56.57% in 2018, which represents a decrease of 9%. The efficiency ratio illustrates that for every dollar the Bank made for the three-month period ending September 30, 2019, the Bank spent $0.52 to make it, as compared to $0.57 one year ago. The Bank’s efficiency ratio for the nine months ended September 30, 2019 was 54.12% compared to 55.94% in 2018, which represents a decrease of 1%.

Capital ratios for the Bank remain well above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of September 30, 2019, the tier 1 leverage ratio was 9.81%, the common equity tier 1 capital ratio was 12.10%, the tier 1 risk based capital ratio was 12.10%, and the total risk-based capital ratio was 13.28%.

CommerceWest Bank is a California-based full service commercial bank with a unique vision and culture of focusing exclusively on the business community. Founded in 2001 and headquartered in Irvine, California, the Bank serves businesses throughout the state with an emphasis on clients in Orange, San Diego, Los Angeles, and Riverside Counties. We are a full service business bank and offer a wide range of commercial banking services, including concierge services, remote deposit solution, online banking, mobile banking, lines of credit, working capital loans, commercial real estate loans, SBA loans, and treasury management services.

Mission Statement: CommerceWest Bankwill create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services.

Please visit www.cwbk.com to learn more about the bank. “BANK ON THE DIFFERENCE”

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.

THIRD QUARTER REPORT - SEPTEMBER 30, 2019 (Unaudited)
   %
BALANCE SHEET  Increase
(dollars in thousands) September 30, 2019 September 30, 2018 (Decrease)
   
ASSETS   
Cash and due from banks 

$

112,934

 

 

$

81,614

 

 

38

%

Investments - available for sale 

 

67,199

 

 

 

62,086

 

 

8

%

   
Loans 

 

440,818

 

 

 

429,014

 

 

3

%

Less allowance for loan losses 

 

(5,493

)

 

 

(4,600

)

 

19

%

Loans, net 

 

435,325

 

 

 

424,414

 

 

3

%

   
Bank premises and equipment, net 

 

1,013

 

 

 

427

 

 

137

%

Other assets 

 

18,719

 

 

 

21,387

 

 

-12

%

Total assets 

$

635,190

 

 

$

589,928

 

 

8

%

   
LIABILITIES AND STOCKHOLDERS' EQUITY   
Non-interest-bearing deposits 

$

289,619

 

 

$

251,802

 

 

15

%

Interest-bearing deposits 

 

275,106

 

 

 

271,816

 

 

1

%

Total deposits 

 

564,725

 

 

 

523,618

 

 

8

%

Other liabilities 

 

6,700

 

 

 

5,611

 

 

19

%

 

 

571,425

 

 

 

529,229

 

 

8

%

Stockholders' equity 

 

63,765

 

 

 

60,699

 

 

5

%

Total liabilities and stockholders' equity 

$

635,190

 

 

$

589,928

 

 

8

%

   
Shares outstanding at end of period 

 

3,636,048

 

 

 

3,771,038

 

 
Book value per share 

$

17.07

 

 

$

16.27

 

 
Allowance for loan losses to total loans 

 

1.25

%

 

 

1.07

%

 
Non-performing assets (non-accrual loans & OREO) 

$

71

 

 

$

1,919

 

 
   
CAPITAL RATIOS:   
Tier 1 leverage ratio 

 

9.81

%

 

 

10.53

%

 
Common equity tier 1 capital ratio 

 

12.10

%

 

 

12.42

%

 
Tier 1 risk-based capital ratio 

 

12.10

%

 

 

12.42

%

 
Total risk-based capital ratio 

 

13.28

%

 

 

13.44

%

 
 
STATEMENT OF EARNINGSThree Months EndedIncreaseNine Months EndedIncrease
(dollars in thousands except share and per share data)Sept 30, 2019Sept 30, 2018(Decrease)Sept 30, 2019Sept 30, 2018(Decrease)
 
INTEREST INCOME
Loans

$

5,397

 

$

5,494

 

-2

%

$

16,192

 

$

15,679

 

3

%

Investments - available for sale

 

452

 

 

425

 

6

%

 

1,339

 

 

1,340

 

0

%

Fed funds sold and other

 

638

 

 

189

 

238

%

 

1,855

 

 

604

 

207

%

Total interest income

 

6,486

 

 

6,108

 

6

%

 

19,386

 

 

17,623

 

10

%

 
INTEREST EXPENSE
Deposits

 

1,157

 

 

926

 

25

%

 

3,398

 

 

2,203

 

54

%

Other borrowed money

 

-

 

 

3

 

100

%

 

0

 

 

11

 

-100

%

Total interest expense

 

1,157

 

 

929

 

25

%

 

3,398

 

 

2,214

 

53

%

 
NET INTEREST INCOME BEFORE LOAN LOSS PROVISION

 

5,330

 

 

5,179

 

3

%

 

15,988

 

 

15,409

 

4

%

 
PROVISION FOR LOAN LOSSES

 

210

 

 

300

 

-30

%

 

520

 

 

1,855

 

-72

%

 
NET INTEREST INCOME AFTER LOAN LOSS PROVISION

 

5,120

 

 

4,879

 

5

%

 

15,469

 

 

13,554

 

14

%

 
NON-INTEREST INCOME

 

910

 

 

634

 

44

%

 

2,262

 

 

2,018

 

12

%

 
NON-INTEREST EXPENSE

 

3,254

 

 

3,325

 

-2

%

 

9,929

 

 

9,857

 

1

%

 
EARNINGS BEFORE INCOME TAXES

 

2,776

 

 

2,188

 

27

%

 

7,801

 

 

5,715

 

37

%

 
INCOME TAXES

 

760

 

 

612

 

24

%

 

1,707

 

 

1,470

 

16

%

 
 
NET INCOME

$

2,016

 

$

1,576

 

28

%

$

6,094

 

$

4,245

 

44

%

 
Basic earnings per share

$

0.55

 

$

0.42

 

31

%

$

1.80

 

$

1.12

 

61

%

Diluted earnings per share

$

0.52

 

$

0.39

 

33

%

$

1.71

 

$

1.04

 

64

%

Return on Assets

 

1.33

%

 

1.13

%

18

%

 

1.40

%

 

1.04

%

35

%

Return on Equity

 

12.50

%

 

10.24

%

22

%

 

13.04

%

 

9.30

%

40

%

Return on Tangible Equity

 

13.13

%

 

10.78

%

22

%

 

13.71

%

 

9.79

%

40

%

Efficiency Ratio

 

51.62

%

 

56.57

%

-9

%

 

54.12

%

 

55.94

%

-3

%

Net Interest Margin

 

3.78

%

 

4.02

%

-6

%

 

3.91

%

 

4.08

%

-4

%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191023005203/en/

CONTACT: CommerceWest Bank

Mr. Ivo A. Tjan, CEO

Ms. Leeann M. Cochran, CFO

Telephone: (949) 251-6959

Facsimile: (949) 251-6957

E-mail:itjan@cwbk.comorlcochran@cwbk.com

Website:www.cwbk.com

“Bank on the Difference”

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: CommerceWest Bank

Copyright Business Wire 2019.

PUB: 10/23/2019 07:01 AM/DISC: 10/23/2019 07:01 AM

http://www.businesswire.com/news/home/20191023005203/en