CommerceWest Bank Announces Net Income of $1 Million, 14% Loan Growth, 31% Deposit Growth for 2nd Quarter 2015

IRVINE, Calif., July 28, 2015 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported net income for the six months ended June 30, 2015 of $2,012,000 or $0.48 diluted earnings per share and net income for three months ended June 30, 2015 of $1,011,000 or $0.24 diluted earnings per share.

Financial Highlights for the six months ended June 30, 2015:

• Interest income of $8.3 million, up 12%
• Net interest income of $7.7 million, up 13%
• Strong net interest margin of 4.46%, up 2%
• Non-interest income of $1.8 million, up 17%
• Pre-tax income of $3.2 million, up 27%
• Efficiency ratio of 64.25%
• Total loan growth of $35.8 million, up 14%
• Non-interest bearing deposit growth of $68.4 million, up 43%
• Total deposit growth of $94.1 million, up 31%
• Total asset growth of $80.1 million, up 21%
• Zero non-performing loans

Mr. Ivo Tjan, Chairman and CEO said, "The Bank has continued with double digit revenue, loan, deposit, total asset and pretax earnings growth into the second quarter of 2015."  Mr. Tjan commented, "Deposit growth accelerated in the second quarter, while we continued to grow our loan pipeline.  We expect our loan pipeline will transition to further accelerate our loan growth into the second half of 2015.  CommerceWest Bank has an exceptional net interest margin of 4.46%, coupled with strong asset quality, capital and achieved record asset size for the company in the quarter."

Total assets increased $80.1 million as of June 30, 2015, an increase of 21% as compared to the same period one year ago. Total loans increased $35.8 million as of June 30, 2015, an increase of 14% over the prior year.   Cash and due from banks increased $53.3 million or 98% from the prior year.  Total investment securities decreased $9.3 million or 19% from the prior year.

Total deposits increased $94.1 million as of June 30, 2015, an increase of 31% from June 30, 2014.  Non-interest bearing deposits grew $68.4 million as of June 30, 2015, an increase of 43% over the prior year.  Non-interest bearing deposits as a percent of total deposits were 56% as of June 30, 2015 as compared to 52% one year ago.

Stockholders' equity on June 30, 2015 was $56.5 million, an increase of 5% as compared to stockholders' equity of $53.6 million a year ago.

Interest income was $4,242,000 for the three months ended June 30, 2015 as compared to $3,858,000 for the three months ended June 30, 2014, an increase of 10%.  Interest income was $8,338,000 for the six months ended June 30, 2015 as compared to $7,463,000 for the six months ended June 30, 2014, an increase of 12%.  Interest expense was $312,000 for the three months ended June 30, 2015 as compared to $304,000 for the three months ended June 30, 2014, an increase of 3%.  Interest expense was $609,000 for the six months ended June 30, 2015 as compared to $624,000 for the six months ended June 30, 2014, a decrease of 2%.

Net interest income for the three months ended June 30, 2015 was $3,930,000 as compared to $3,554,000 for the three months ended June 30, 2014, an increase of 11%.  Net interest income for the six months ended June 30, 2015 was $7,729,000 as compared to $6,839,000 for the six months ended June 30, 2014, an increase of 13%.  The net interest margin increased for the three months ended June 30, 2015.  It increased from 4.42% in 2014 to 4.45% in 2015, an increase of 1%.  The net interest margin increased for the six months ended June 30, 2015 as well. It increased from 4.37% in 2014 to 4.46% in 2015, an increase of 2%. 

The Bank's efficiency ratio for the six months ended June 30, 2015 was 64.25% compared to 66.33% in 2014, which represents a decrease of 3%.  The efficiency ratio illustrates, that for every dollar the Bank made for the six month period ending June 30, 2015, the Bank spent $0.64 to make it, as compared to $0.66 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 June 30, 2015, the leverage ratio was 12.42%, the tier 1 capital ratio was 16.43%, and the total risk-based capital ratio was 17.68%.

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.

Logo - http://photos.prnewswire.com/prnh/20141223/166050LOGO

SOURCE CommerceWest Bank

Related Links

http://www.cwbk.com