CommerceWest Bank Reports 17% Loan Growth, 31% Deposit Growth, and a 57% increase in Pre-tax Income for the Year Ended December 31, 2015

Feb 03, 2016, 08:00 ET from CommerceWest Bank

IRVINE, Calif., Feb. 3, 2016 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported pre-tax earnings of $1,527,000 for the three months ended December 31, 2015 as compared to $303,000 for the three months ended December 31, 2014, an increase of 404%. Pre-tax earnings for the twelve months ended December 31, 2015 were $6,572,000 as compared to $4,174,000 million for the twelve months ended December 31, 2014, an increase of 57%.

Tax benefits associated with a past acquisition have been fully realized and the Bank is now accruing income taxes in 2015.  Net income for the three months ended December 31, 2015 was $962,000 or $0.23 diluted earnings per share and net income for the twelve months ended December 31, 2015 was $4,111,000 or $0.98 diluted earnings per share.

Key Financial Results for the year ended December 31, 2015:

  • Net interest income of $16.2 million, up 16%
  • Non-interest income of $3.6 million, up 11%
  • Pre-tax income of $6.6 million, up 57%
  • Total loan growth of $47.6 million, up 17%
  • Non-interest bearing deposit growth of $41.5 million, up 19%
  • Total deposit growth of $110.0 million, up 31%
  • Total asset growth of $106.2 million, up 25%
  • Nonperforming assets as a percent of total assets of 0.00%

Financial performance highlights for the three months ended December 31, 2015:

  • Interest income of $4.6 million, up 19%
  • Net interest income of $4.3 million, up 22%
  • Pre-tax income of $1.5 million, up 404%
  • Efficiency ratio of 67.64%, a decrease of 25%

"The talented team at CommerceWest Bank has delivered consistent balance sheet growth and earnings for the past three years, with cumulative asset growth of 46% over the last thirty six months.  We continue to be pleased with the Bank's asset quality, which complements our fortress balance sheet approach.  To have zero non-performing assets for three consecutive years is quite an achievement, especially while achieving double digit loan growth over the same time period," stated Mr. Tjan, Chairman and Chief Executive Officer. "The team is staying focused on the Banks core competency, a balanced emphasis on Business Loans and Commercial Real Estate Loans, while acquiring non-interest bearing deposit relationships in the Southern California business community.  We achieved record deposit growth during 2015, and with growth in the business sector, it is anticipated that there will be a certain amount of volatility in deposit balances."

Total assets increased $106.2 million as of December 31, 2015, an increase of 25% as compared to the same period one year ago. Total loans increased $47.6 million as of December 31, 2015, an increase of 17% over the prior year. Cash and due from banks increased $67 million or 82% from the prior year. Total investment securities decreased $6.9 million or 16% from the prior year.

Total deposits increased $110.0 million as of December 31, 2015, an increase of 31% from December 31, 2014. Non-interest bearing deposits grew $41.5 million as of December 31, 2015, an increase of 19% over the prior year.

Stockholders' equity on December 31, 2015 was $59.0 million, an increase of 8% as compared to stockholders' equity of $54.7 million a year ago.

Interest income was $4,592,000 for the three months ended December 31, 2015 as compared to $3,843,000 for the three months ended December 31, 2014, an increase of 19%. Interest income was $17,397,000 for the twelve months ended December 31, 2015 as compared to $15,222,000 for the twelve months ended December 31, 2014, an increase of 14%. Interest expense was $283,000 for the three months ended December 31, 2015 as compared to $307,000 for the three months ended December 31, 2014, a decrease of 8%. Interest expense was $1,166,000 for the twelve months ended December 31, 2015 as compared to $1,227,000 for the twelve months ended December 31, 2014, a decrease of 5%.

Net interest income for the three months ended December 31, 2015 was $4,309,000 as compared to $3,536,000 for the three months ended December 31, 2014, an increase of 22%. Net interest income for the twelve months ended December 31, 2015 was $16,231,000 as compared to $13,995,000 for the twelve months ended December 31, 2014, an increase of 16%. The net interest margin decreased for the three months ended December 31, 2015. It decreased from 4.26% in 2014 to 4.01% in 2015, a decrease of 6%. The net interest margin decreased for the twelve months ended December 31, 2015. It decreased from 4.30% in 2014 to 4.19% in 2015, a decrease of 3%. 

Provision for loan losses for the three months ended December 31, 2015 and the three months ended December 31, 2014 was $75,000. Provision for loan losses for the twelve months ended December 31, 2015 was $391,000 compared to $530,000 for the twelve months ended December 31, 2014, a decrease of 26%. As of December 31, 2015, the Bank had 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 income for the three months ended December 31, 2015 was $817,000 compared to $967,000 for the same period last year, a decrease of 15%. Non-interest income for the twelve months ended December 31, 2015 was $3,568,000 compared to $3,214,000 for the same period last year, an increase of 11%. 

Non-interest expense for the three months ended December 31, 2015 was $3,524,000 compared to $4,124,000 for the same period last year, a decrease of 15%. Non-interest expense for the twelve months ended December 31, 2015 was $12,836,000 compared to $12,505,000 for the same period last year, an increase of 3%.  

The Bank's efficiency ratio for the three months ended December 31, 2015 was 67.64% compared to 89.82% in 2014, which represents a decrease of 25%. The Bank's efficiency ratio for the twelve months ended December 31, 2015 was 64.88% compared to 72.11% in 2014, which represents a decrease of 10%. The efficiency ratio illustrates, that for every dollar the Bank made for the twelve month period ending December 31, 2015, the Bank spent $0.65 to make it, as compared to $0.72 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, 2015, the leverage ratio was 11.45%, the tier 1 capital ratio was 14.95%, and the total risk-based capital ratio was 16.16%.

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. The Bank serves businesses throughout California 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, 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.

 

YEAR END REPORT - DECEMBER 31, 2015 (Unaudited)












BALANCE SHEET




Increase

(dollars in thousands)


Dec 31, 2015


Dec 31, 2014


(Decrease)








ASSETS







Cash and due from banks


149,028


81,885


82%

Securities


36,389


43,308


-16%








Loans


330,282


282,722


17%

  Less allowance for loan losses


(4,175)


(3,570)


17%

Loans, net


326,107


279,152


17%








Bank premises and equipment, net


431


569


-24%

Other assets


16,784


17,653


-5%

     Total assets


528,739


422,567


25%








LIABILITIES AND STOCKHOLDERS' EQUITY






Non-interest bearing deposits


255,943


214,415


19%

Interest bearing deposits


210,787


142,306


48%

     Total deposits


466,730


356,721


31%

Total borrowings


-


7,000


-100%

Other liabilities


2,966


4,173


-29%



469,696


367,894


28%

Stockholders' equity


59,043


54,673


8%

     Total liabilities and stockholders' equity


528,739


422,567


25%















CAPITAL RATIOS:







Tier 1 leverage ratio


11.45%


12.66%


-10%

Tier 1 risk-based capital ratio


14.95%


16.27%


-8%

Total risk-based capital ratio


16.16%


17.51%


-8%

 

STATEMENT OF EARNINGS


Three Months Ended




Twelve Months Ended



(dollars in thousands
except share and
per share data)


Dec 31, 2015


Dec 31, 2014


Increase

(Decrease)


Dec 31, 2015


Dec 31, 2014


Increase

(Decrease)














Interest income


4,592


3,843


19%


17,397


15,222


14%

Interest expense


283


307


-8%


1,166


1,227


-5%

Net interest income


4,309


3,536


22%


16,231


13,995


16%

Provision for loan losses


75


75


0%


391


530


-26%

Non-interest income


817


967


-15%


3,568


3,214


11%

Non-interest expense


3,524


4,124


-15%


12,836


12,505


3%

Earnings before income taxes


1,527


303


404%


6,572


4,174


57%

Income taxes


565


(936)


160%


2,461


(936)


363%

Net income


962


1,239


-22%


4,111


5,110


-20%














Basic earnings per share


$      0.24


$      0.31


-23%


$    1.02


$    1.23


-17%

Diluted earnings per share


$      0.23


$      0.30


-23%


$    0.98


$    1.18


-17%

Return on Assets (annualized)


0.81%


1.25%


-35%


0.94%


1.35%


-30%

Return on Equity (annualized)


6.48%


9.07%


-29%


7.21%


9.46%


-24%

Efficiency Ratio


67.64%


89.82%


-25%


64.88%


72.11%


-10%

Net Interest Margin


4.01%


4.26%


-6%


4.19%


4.30%


-3%

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SOURCE CommerceWest Bank



RELATED LINKS

http://www.cwbk.com