IRVINE, Calif.--()--CommerceWest Bank (OTCBB: CWBK) reported earnings for the three months ended March 31, 2012 of $583,000 or $0.13 per basic common share and $0.13 per diluted common share, compared with net income of $382,000 or $0.09 per basic common share and $0.09 per diluted common share for the three months ended March 31, 2011, an increase of 44%.
“Management continues to be optimistic about 2012 and our ability to execute this year on”
Financial performance highlights for the three months ended March 31, 2012 as compared to the three months ended March 31, 2011:
- Earnings growth of 53%
- Nonperforming assets reduced 50%
- Non-interest bearing deposit growth of 38%
- Non-interest income growth of 14%
- Non-interest expense reduction of 10%
- Cost of funds reduced 13%
- Loan growth of 2.0%
- A fortress balance sheet, with a tier 1 leverage ratio of 13.64% and total risk based capital ratio of 22.60%
- No TARP
Financial performance highlights for the three months ended March 31, 2012 as compared to the three months ended December 31, 2011:
- Earnings growth of 45%
- Nonperforming assets reduced 36%
- Non-interest bearing deposit growth of 12%
- Non-interest income growth of 83%
- Asset growth of 5.0%
- Total deposit growth of 5.0%
Mr. Ivo Tjan, Chairman and CEO commented, “We are encouraged by the teams ability to grow non-interest bearing deposits in the first quarter and deploy liquidity, with two consecutive quarters of loan growth. The team executed on materially improving asset quality by reducing our non-performing loans in the quarter. The Bank has continued its focus on strategically growing quality loans, deposits, fee income and earnings for 2012. Our vision, culture and business model is clear to us."
Mr. Tjan stated, "Management continues to be optimistic about 2012 and our ability to execute this year on "business as usual." We have continued to make excellent progress in strengthening the asset quality of the loan portfolio, as well as maintaining strong liquidity and capital. With our strong capital position, it is time now for us to deploy more of the Bank's liquidity and improve profitability by growing our top line revenue, while at the same time controlling our operating expense."
Total assets increased $10.8 million as of March 31, 2012, an increase of 4% as compared to the same period one year ago. Total loans increased $3.1 million as of March 31, 2012, an increase of 2% over the prior year. Cash and due from banks decreased $9.1 million or 14% from the prior year. Total investment securities increased $18.8 million or 27% from the prior year.
Total deposits increased $6.6 million as of March 31, 2012, an increase of 3% from March 31, 2011. Non-interest bearing deposits grew $23.6 million as of March 31, 2012, and increase of 38% over the prior year.
Stockholders’ equity on March 31, 2012 was $46.2 million, an increase of 5% as compared to stockholders’ equity of $44.0 million a year ago.
Total nonperforming assets decreased $2.6 million as of March 31, 2012, a decrease of 50% as compared to the same period one year ago. Provision for loan losses for the three months ended March 31, 2012 was $120,000 compared to $100,000 for the three months ended March 31, 2011, an increase of 20%. The Bank’s allowance for loan losses as a percent of total loans was 2.38% for the CommerceWest Bank portfolio on March 31, 2012 as compared to 4.12% on March 31, 2011, a decrease of 42%.
Non-interest income for the three months ended March 31, 2012 was $892,000 compared to $694,000 for the same period last year, an increase of 29%.
Non-interest expense for the three months ended March 31, 2012 was $2,524,000 compared to $2,804,000 for the same period last year, a decrease of 10%.
The Bank’s efficiency ratio for the three months ended March 31, 2012 was 71.68% compared to 83.16% in 2011, which represents a decrease of 14%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending March 31, 2012, the Bank spent $0.72 to make it, as compared to $0.83 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 March 31, 2012, the leverage ratio was 13.64%, the tier 1 capital ratio was 21.34%, and the total risk-based capital ratio was 22.60%.
CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices in Orange County, Riverside County, Los Angeles County and San Diego County. We are a full service business bank and offer a wide range of commercial banking services, including concierge services, remote deposit solution, full-service internet banking, lines of credit, term loans, commercial real estate lending, SBA lending, and full cash management.
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.
|FIRST QUARTER REPORT - MARCH 31, 2012 (Unaudited)|
|(dollars in thousands)||March 31, 2012||March 31, 2011||(Decrease)|
|Cash and due from banks||57,596||66,733||-14||%|
|Less allowance for loan losses||(2,777||)||(4,161||)||-33||%|
|Bank premises and equipment, net||433||745||-42||%|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Non-interesting bearing deposits||85,331||61,746||38||%|
|Interest bearing deposits||176,084||193,035||-9||%|
|Total liabilities and stockholders' equity||311,388||300,600||4||%|
|Tier 1 leverage ratio||13.64||%||12.81||%||6||%|
|Tier 1 risk-based capital ratio||21.34||%||21.97||%||-3||%|
|Total risk-based capital ratio||22.60||%||23.23||%||-3||%|
|STATEMENT OF EARNINGS||Three Months Ended||Increase|
|(dollars in thousands except share and per share data)||March 31, 2012||March 31, 2011||(Decrease)|
|Net interest income||2,435||2,592||-6||%|
|Provision for loan losses||120||100||20||%|
|Earnings before income taxes||583||382||53||%|
|Basic earnings per share||$||0.13||$||0.09||44||%|
|Diluted earnings per share||$||0.13||$||0.09||44||%|
|Return on Assets (annualized)||0.78||%||0.51||%||53||%|
|Return on Equity (annualized)||5.03||%||3.56||%||41||%|
|Net Interest Margin||3.77||%||3.95||%||-5||%|