IRVINE, Calif.--(BUSINESS WIRE)--CommerceWest Bank (OTCBB: CWBK) reported net income for the twelve months ended December 31, 2013 was $4,538,000 or $1.01 per common share, compared with net income of $4,207,000 or $0.96 per common share for the twelve months ended December 31, 2012, an EPS increase of 5%.
Key Financial Results:
- Net interest income of $11.8 million, up 15% for the year
- Net interest margin of 4.07% up from 3.68%, an increase of 11% for the year
- Net income of $4.5 million, up 8% year-to-date
- Diluted EPS of $1.01, up 5% year-to-date
- Total loan growth of $44.5 million, up 24%
- Non-interest bearing deposit growth of $54.3 million, up 47%
- Nonperforming assets as a percent of total assets of 0.00%
Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "CommerceWest is positioned well to continue to grow quality loans and non-interest bearing deposits in 2014. We are pleased with the Bank's asset quality and reduction in problem assets. To have zero non-performing assets is quite an achievement, especially while growing loans 24% for the year." Mr. Tjan commented further, "There was also continued growth in non-interest bearing deposits during the quarter. A 55% non-interest bearing to total deposit ratio reduces our cost of funds, which allows us to stay competitive in the market place. With the strength of our balance sheet and our talented team, we will continue to assist more small and mid-size businesses in southern California to achieve their goals in 2014."
Total assets increased $17.7 million as of December 31, 2013, an increase of 5% as compared to the same period one year ago. Total loans increased $44.5 million as of December 31, 2013, an increase of 24% over the prior year. Cash and due from banks decreased $19.8 million or 26% from the prior year. Total investment securities decreased $8.4 million or 12% from the prior year.
Total deposits increased $19.4 million as of December 31, 2013, an increase of 7% from December 31, 2012. Non-interest bearing deposits grew $54.3 million as of December 31, 2013, an increase of 47% over the prior year. Non-interest bearing deposits as a percent of total deposits were 55% as of December 31, 2013 as compared to 40% one year ago.
Stockholders’ equity on December 31, 2013 was $53.2 million, an increase of 7% as compared to stockholders’ equity of $49.7 million a year ago.
Interest income was $13,364,000 for the twelve months ended December 31, 2013 as compared to $12,514,000 for the twelve months ended December 31, 2012, an increase of 7%. Interest expense was $1,553,000 for the twelve months ended December 31, 2013 as compared to $2,280,000 for the twelve months ended December 31, 2012, a decrease of 32%.
Net interest income for the twelve months ended December 31, 2013 was $11,811,000 as compared to $10,234,000 for the twelve months ended December 31, 2012, an increase of 15%. The net interest margin increased for the twelve months ended December 31, 2013. It increased from 3.68% in 2012 to 4.07% in 2013, an increase of 11%.
Provision for loan losses for the twelve months ended December 31, 2013 was $280,000 compared to $645,000 for the twelve months ended December 31, 2012, a decrease of 57%. As of December 31, 2013, the Bank and no past due loans, no non-accrual loans and no OREO. The non-performing asset to total asset ratio was zero at year end.
Non-interest expense for the twelve months ended December 31, 2013 was $11,305,000 compared to $10,078,000 for the same period last year, an increase of 12%.
The Bank’s efficiency ratio for the twelve months ended December 31, 2013 was 67.36% compared to 62.42% in 2012, which represents an increase of 8%. The efficiency ratio illustrates, that for every dollar the Bank made for the twelve month period ending December 31, 2013, the Bank spent $0.67 to make it, as compared to $0.62 one year ago.
Capital ratios for the Bank remain well above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of December 31, 2013, the leverage ratio was 13.69%, the tier 1 capital ratio was 18.77%, and the total risk-based capital ratio was 19.98%.
CommerceWest Bank is a California based commercial bank with a unique vision and culture of focusing exclusively on the business community. Founded in 2001 and headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices serving Orange County, Los Angeles County, San Diego County and Riverside County. We are a full service business bank and offer a wide range of commercial banking services, including concierge services, remote deposit solution, online banking, lines of credit, working capital loans, commercial real estate lending, SBA lending, and cash and treasury management services.
Mission Statement: CommerceWest Bank will 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.
|FOURTH QUARTER REPORT - DECEMBER 31, 2013 (Unaudited)|
|(dollars in thousands)||Dec 31, 2013||Dec 31, 2012||(Decrease)|
|Cash and due from banks||57,214||77,053||-26||%|
|Less allowance for loan losses||(3,001||)||(3,185||)||-6||%|
|Bank premises and equipment, net||484||372||30||%|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Non-interesting bearing deposits||169,062||114,747||47||%|
|Interest bearing deposits||139,049||173,919||-20||%|
|Total liabilities and stockholders' equity||364,386||346,733||5||%|
|Tier 1 leverage ratio||13.69||%||13.10||%||5||%|
|Tier 1 risk-based capital ratio||18.77||%||19.86||%||-5||%|
|Total risk-based capital ratio||19.98||%||21.11||%||-5||%|
|STATEMENT OF EARNINGS||Twelve Months Ended||Increase|
|(dollars in thousands except share and per share data)||Dec 31, 2013||Dec 31, 2012||(Decrease)|
|Net interest income||11,811||10,234||15||%|
|Provision for loan losses||280||645||-57||%|
|Earnings before income taxes||4,538||4,207||8||%|
|Basic earnings per share||$||1.05||$||0.97||8||%|
|Diluted earnings per share||$||1.01||$||0.96||5||%|
|Return on Assets||1.32||%||1.30||%||2||%|
|Return on Equity||8.66||%||8.84||%||-2||%|
|Net Interest Margin||4.07||%||3.68||%||11||%|