CommerceWest Bank Announces 21% Loan Growth, and 25% Deposit Growth for 3rd Quarter 2015

IRVINE, Calif., Oct. 27, 2015 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported pre-tax earnings of $1,831,000 for the three months ended September 30, 2015 as compared to $1,347,000 for the three months ended September 30, 2014, an increase of 36%.  Pre-tax earnings for the nine months ended September 30, 2015 were $5,045,000 as compared to $3,871,000 million for the nine months ended September 30, 2014, an increase of 30%.

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 September 30, 2015 was $1,137,000 or $0.27 diluted earnings per share and net income for the nine months ended September 30, 2015 was $3,149,000 or $0.75 diluted earnings per share.

Financial Highlights for the three months ended September 30, 2015:

• Interest income of $4.5 million, up 14%
• Net interest income of $4.2 million, up 16%
• Non-interest income of $0.9 million, up 34%
• Pre-tax income of $1.8 million, up 36%
• Efficiency ratio of 61.84%

Financial Highlights for the nine months ended September 30, 2015:

• Interest income of $12.8 million, up 13%
• Net interest income of $11.9 million, up 14%
• Non-interest income of $2.8 million, up 22%
• Pre-tax income of $5 million, up 30%
• Efficiency ratio of 63.46%
• Total loan growth of $57.4 million, up 21%
• Non-interest bearing deposit growth of $55.8 million, up 30%
• Total deposit growth of $81.5 million, up 25%
• Total asset growth of $85.5 million, up 22%
• Zero non-performing loans

Mr. Ivo Tjan, Chairman and CEO stated, "The Bank has the right capital levels, revenue focus, and deployment strategy for excess liquidity.  This focused approach has generated double digit growth in total assets of 22%, loans of 21%, and a 30% increase in non-interest bearing deposits.  By staying disciplined to our business model, the team has grown net-interest income 16% and non-interest income 34% for the quarter.  Our results for the third quarter were highlighted by strong pre-tax earnings growth of 36% as compared to the same three month period one year ago, while maintaining strong credit quality and prudent reserves as a model of our fortress balance sheet approach."

Total assets increased $85.5 million as of September 30, 2015, an increase of 22% as compared to the same period one year ago. Total loans increased $57.4 million as of September 30, 2015, an increase of 21% over the prior year.   Cash and due from banks increased $36.5 million or 64% from the prior year.  Total investment securities decreased $8 million or 18% from the prior year.

Total deposits increased $81.45 million as of September 30, 2015, an increase of 25% from September 30, 2014.  Non-interest bearing deposits grew $55.8 million as of September 30, 2015, an increase of 30% over the prior year.  Non-interest bearing deposits as a percent of total deposits were 59% as of September 30, 2015 as compared to 57% one year ago.

Stockholders' equity on September 30, 2015 was $58 million, an increase of 8% as compared to stockholders' equity of $53.9 million a year ago.

Interest income was $4,467,000 for the three months ended September 30, 2015 as compared to $3,916,000 for the three months ended September 30, 2014, an increase of 14%.  Interest income was $12,805,000 for the nine months ended September 30, 2015 as compared to $11,379,000 for the nine months ended September 30, 2014, an increase of 13%.  Interest expense was $274,000 for the three months ended September 30, 2015 as compared to $296,000 for the three months ended September 30, 2014, a decrease of 7%.  Interest expense was $883,000 for the nine months ended September 30, 2015 as compared to $920,000 for the nine months ended September 30, 2014, a decrease of 4%.

Net interest income for the three months ended September 30, 2015 was $4,193,000 as compared to $3,620,000 for the three months ended September 30, 2014, an increase of 16%.  Net interest income for the nine months ended September 30, 2015 was $11,922,000 as compared to $10,459,000 for the nine months ended September 30, 2014, an increase of 14%.  The net interest margin decreased for the three months ended September 30, 2015.  It decreased from 4.43% in 2014 to 4.14% in 2015, a decrease of 7%.  The net interest margin decreased for the nine months ended September 30, 2015 as well. It decreased from 4.34% in 2014 to 4.27% in 2015, a decrease of 2%. 

The Bank's efficiency ratio for the three months ended September 30, 2015 was 61.84% compared to 64.65% in 2014, which represents a decrease of 4%.  The Bank's efficiency ratio for the nine months ended September 30, 2015 was 63.46% compared to 65.73% in 2014, which represents a decrease of 3%.  The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending September 30, 2015, the Bank spent $0.62 to make it, as compared to $0.65 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 September 30, 2015, the leverage ratio was 11.64%, the tier 1 capital ratio was 15.45%, and the total risk-based capital ratio was 16.69%.  The Banks book value per share as of September 30, 2015 was $14.14.

CommerceWest Bank is a California based commercial bank with a unique vision and culture of focusing exclusively on the small to mid-size 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, mobile banking, online banking, remote deposit solution, 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.

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SOURCE CommerceWest Bank