IRVINE, Calif.--(BUSINESS WIRE)--CommerceWest Bank (OTCBB: CWBK) (“The Bank”) reported record net income for the three months ended March 31, 2019 of $1,878,000 or $0.48 per common share, compared with net income of $1,637,000 or $0.40 per common share for the three months ended March 31, 2018, an EPS increase of 20%.
Key Financial Results for the three months ended March 31, 2019:
- Interest income up 11%
- Net income up 15%
- EPS up 20%
- Return on Assets of 1.35%
- Return on Equity of 12.58%
- Return on Tangible Equity of 13.25%
- Efficiency ratio of 57.84%
- 37 quarters of consecutive profits
Mr. Ivo Tjan, Chairman and CEO commented on the financial results, “We are pleased to report record net income for the quarter, with a 20% increase in EPS.” Mr. Tjan continued, “We had good loan activities during the quarter, which were offset by increased loan payoffs coupled with our clients paying down their lines of credit. The loan and deposit pipeline are shaping up for the second quarter and we are optimistic about the rest of the year. The Bank also remains focused on operating efficiencies, including cost savings, creating stream-lined client experiences for both new loan and deposit relationships and making technology investments where appropriate.”
Total assets increased $299,000 as of March 31, 2019, an increase of less than one percent as compared to the same period one year ago. Total loans decreased $729,000 as of March 31, 2019, a decrease of less than one percent over the prior year. Cash and due from banks increased $2.3 million or 3% from the prior year. Total investment securities decreased $2.2 million, a decrease of 3% from the prior year.
Total deposits decreased $2.3 million as of March 31, 2019, a decrease of less than one percent from March 31, 2018. Non-interest-bearing deposits decreased $36.9 million as of March 31, 2019, a decrease of 14% over the prior year. Interest bearing deposits increased $34.6 million as of March 31, 2019, an increase of 15% over the prior period.
Stockholders’ equity on March 31, 2019 was $61.5 million, an increase of 1% as compared to stockholders’ equity of $60.8 million a year ago.
Interest income was $6,239,000 for the three months ended March 31, 2019 as compared to $5,615,000 for the three months ended March 31, 2018, an increase of 11%. Interest expense was $1,094,000 for the three months ended March 31, 2019 as compared to $570,000 for the three months ended March 31, 2018, an increase of 92%.
Net interest income for the three months ended March 31, 2019 was $5,145,000 as compared to $5,045,000 for the three months ended March 31, 2018, an increase of 2%. The net interest margin decreased for the three months ended March 31, 2019. It decreased from 4.05% in 2018 to 3.92% in 2019, a decrease of 3%.
Provision for loan losses for the three months ended March 31, 2019 was $130,000 compared to $355,000 for the three months ended March 31, 2018, a decrease of 63%.
Non-interest income for the three months ended March 31, 2019 was $673,000 compared to $678,000 for the same period last year, a decrease of 1%.
Non-interest expense for the three months ended March 31, 2019 was $3,350,000 compared to $3,252,000 for the same period last year, an increase of 3%.
The Bank’s efficiency ratio for the three months ended March 31, 2019 was 57.84% compared to 56.15% in 2018, which represents an increase of 3%. The efficiency ratio illustrates, that for every dollar the Bank made for the three-month period ending March 31, 2019, the Bank spent $0.58 to make it, as compared to $0.56 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, 2019, the tier 1 leverage ratio was 10.19%, the common equity tier 1 capital ratio was 12.76%, the tier 1 risk based capital ratio was 12.76%, and the total risk-based capital ratio was 13.94%.
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 County, 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 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, 2019 (Unaudited)|
|(dollars in thousands)||March 31, 2019||March 31, 2018||(Decrease)|
|Cash and due from banks||$||86,858||$||84,593||3||%|
|Less allowance for loan losses||(5,098||)||(4,502||)||13||%|
|Bank premises and equipment, net||1,336||440||204||%|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Non-interest bearing deposits||$||236,196||$||273,115||-14||%|
|Interest bearing deposits||267,991||233,393||15||%|
|Total liabilities and stockholders' equity||$||572,226||$||571,927||0||%|
|Shares outstanding at end of period||3,699,488||3,816,038|
|Book value per share||$||16.49||$||15.97|
|Allowance for loan losses to total loans||1.25||%||1.10||%|
|Non-performing assets (non-accrual loans & OREO)||$||1,573||$||95|
|Tier 1 leverage ratio||10.19||%||10.67||%|
|Common equity tier 1 capital ratio||12.76||%||13.30||%|
|Tier 1 risk-based capital ratio||12.76||%||13.30||%|
|Total risk-based capital ratio||13.94||%||14.39||%|
|STATEMENT OF EARNINGS||Three Months Ended||Increase|
|(dollars in thousands except share and per share data)||March 31, 2019||March 31, 2018||(Decrease)|
|Fed funds sold and other||626||246||154||%|
|Total interest income||6,239||5,615||11||%|
|Other borrowed money||-||-||-|
|Total interest expense||1,094||570||92||%|
|NET INTEREST INCOME BEFORE LOAN LOSS PROVISION||5,145||5,045||2||%|
|PROVISION FOR LOAN LOSSES||130||355||-63||%|
|NET INTEREST INCOME AFTER LOAN LOSS PROVISION||5,015||4,690||7||%|
|EARNINGS BEFORE INCOME TAXES||2,338||2,116||10||%|
|INCOME TAXES - Current Year Income Taxes||460||479||-4||%|
|Basic earnings per share||$||0.51||$||0.43||19||%|
|Diluted earnings per share||$||0.48||$||0.40||20||%|
|Return on Assets||1.35||%||1.22||%||11||%|
|Return on Equity||12.58||%||10.88||%||16||%|
|Net Interest Margin||3.92||%||4.05||%||-3||%|