IRVINE, Calif., April 26, 2016 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended March 31, 2016 of $1,053,000 or $0.25 per common share, compared with net income of $1,001,000 or $0.24 per common share for the three months ended March 31, 2015, an EPS increase of 4%.
Key Financial Results for the three months ended March 31, 2016:
Interest income of $4.5 million, up 11%
Net interest income of $4.3 million, up 12%
Pre-tax income of $1.7 million, up 7%
Efficiency ratio of 63.19%
Total loan growth of $32.07 million, up 11%
Non-interest bearing deposit growth of $32.08 million, up 15%
Total asset growth of $41.3 million, up 10%
Zero non-performing loans
Mr. Ivo Tjan, Chairman and CEO, said, "The team produced solid results as we continued to remain focused and disciplined in effectively executing our business strategy for 2016." Mr. Tjan continued, "This revenue performance, combined with continued expense discipline produced positive results with growth in our top line revenue, growth in both loans and deposits; with controlled expenses that resulted in a 63.19% efficiency ratio. We remain highly focused on continuing to support the financial needs of our clients, local businesses, and make a positive impact on the communities we serve."
Total assets increased $41.3 million as of March 31, 2016, an increase of 10% as compared to the same period one year ago. Total loans increased $32.07 million as of March 31, 2016, an increase of 11% over the prior year. Cash and due from banks increased $11 million or 13% from the prior year. Total investment securities decreased $90 thousand from the prior year.
Total deposits increased $38.3 million as of March 31, 2016, an increase of 10% from March 31, 2015. Non-interest bearing deposits grew $32.08 million as of March 31, 2016, an increase of 15% over the prior year. Non-interest bearing deposits as a percent of total deposits were 58% as of March 31, 2016 as compared to 56% one year ago.
Stockholders' equity on March 31, 2016 was $60.4 million, an increase of 8% as compared to stockholders' equity of $55.7 million a year ago.
Interest income was $4,534,000 for the three months ended March 31, 2016 as compared to $4,096,000 for the three months ended March 31, 2015, an increase of 11%. Interest expense was $269,000 for the three months ended March 31, 2016 as compared to $297,000 for the three months ended March 31, 2015, a decrease of 9%.
Net interest income for the three months ended March 31, 2016 was $4,265,000 as compared to $3,799,000 for the three months ended March 31, 2015, an increase of 12%. The net interest margin decreased for the three months ended March 31, 2016. It decreased from 4.46% in 2015 to 4.08% in 2016, a decrease of 9%.
Provision for loan losses for the three months ended March 31, 2016 was $25,000 compared to $181,000 for the three months ended March 31, 2015, a decrease of 86%. As of March 31, 2016, the Bank had no non-accrual loans and no OREO. The non-performing asset to total asset ratio was zero at the end of the quarter.
The Bank recognized a $137,000 gain on sale of investment securities in the first quarter of 2015. Other income for the three months ended March 31, 2016 was $554,000 compared to $864,000 for the same period last year, a decrease of 36%.
Non-interest expense for the three months ended March 31, 2016 was $3,094,000 compared to $3,025,000 for the same period last year, an increase of 2%.
The Bank's efficiency ratio for the three months ended March 31, 2016 was 63.19% compared to 63.60% in 2015, which represents a decrease of 1%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending March 31, 2016, the Bank spent $0.63 to make it, as compared to $0.64 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, 2016, the tier 1 leverage ratio was 12.26%, the common equity tier 1 capital ratio was 15.87%, the tier 1 risk based capital ratio was 15.87%, and the total risk-based capital ratio was 17.12%.
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, 2016 (Unaudited)
(dollars in thousands)
March 31, 2016
March 31, 2015
Cash and due from banks
Less allowance for loan losses
Bank premises and equipment, net
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits
Interest bearing deposits
Total liabilities and stockholders' equity
Tier 1 leverage ratio
Common equity tier 1 capital ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
STATEMENT OF EARNINGS
For the Three Months Ended
(dollars in thousands except share and per share data)