IRVINE, Calif., April 25, 2018 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) The Bank reported net income for the three months ended March 31, 2018 of $1,637,000 or $0.40 per common share, compared with net income of $1,509,000 or $0.37 per common share for the three months ended March 31, 2017, an EPS increase of 8%.
Key Financial Results for the three months ended March 31, 2018:
Interest income up 12%
Net interest income up 8%
Net income up 8%
EPS up 8%
Return on Assets of 1.22%
Return on Equity of 10.88%
Efficiency ratio of 55.51%
7% loan growth year over year
14% deposit growth year over year
12% asset growth year over year
33 quarters of consecutive profits
Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "The Bank is off to a good start to 2018, with 7% loan growth year over year. This positions us well for the rest of the year." Mr. Tjan continued, "We have strong core earnings, increasing interest income by 12% and the net interest margin by 8%. We are optimistic about the impact of recent tax reform, that it will benefit our clients as they are able to invest in infrastructure and thereby further stimulate economic growth both locally and nationally."
Total assets increased $61.6 million as of March 31, 2018, an increase of 12% as compared to the same period one year ago. Total loans increased $27.5 million as of March 31, 2018, an increase of 7% over the prior year. Cash and due from banks increased $9.8 million or 13% from the prior year. Total investment securities increased $22.6 million, an increase of 52% from the prior year.
Total deposits increased $62.2 million as of March 31, 2018, an increase of 14% from March 31, 2017. Non-interest-bearing deposits increased $30.9 million as of March 31, 2018, an increase of 13% over the prior year. Interest bearing deposits increased $31.3 million as of March 31, 2018, an increase of 15% over the prior period.
Stockholders' equity on March 31, 2018 was $60.8 million, a decrease of 2% as compared to stockholders' equity of $61.9 million a year ago.
Interest income was $5,615,000 for the three months ended March 31, 2018 as compared to $4,999,000 for the three months ended March 31, 2017, an increase of 12%. Interest expense was $570,000 for the three months ended March 31, 2018 as compared to $309,000 for the three months ended March 31, 2017, an increase of 84%.
Net interest income for the three months ended March 31, 2018 was $5,045,000 as compared to $4,690,000 for the three months ended March 31, 2017, an increase of 8%. The net interest margin decreased for the three months ended March 31, 2018. It decreased from 4.27% in 2017 to 4.11% in 2018, a decrease of 4%.
Provision for loan losses for the three months ended March 31, 2018 was $355,000 compared to $100,000 for the three months ended March 31, 2017, an increase of 255%.
Non-interest income for the three months ended March 31, 2018 was $678,000 compared to $950,000 for the same period last year, a decrease of 29%. The Bank collected approximately $123,000 in prepayment penalty fee income on loans during the three months ended March 31, 2018 as compared to $493,000 for the three months ended March 31, 2017.
Non-interest expense for the three months ended March 31, 2018 was $3,252,000 compared to $3,070,000 for the same period last year, an increase of 6%.
The Bank's efficiency ratio for the three months ended March 31, 2018 was 55.51% compared to 53.46% in 2017, which represents an increase of 4%. The efficiency ratio illustrates, that for every dollar the Bank made for the three-month period ending March 31, 2018, the Bank spent $0.56 to make it, as compared to $0.54 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, 2018, the tier 1 leverage ratio was 10.67%, the common equity tier 1 capital ratio was 13.30%, the tier 1 risk based capital ratio was 13.30%, and the total risk-based capital ratio was 14.39%.
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 cash 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, 2018 (Unaudited)
(dollars in thousands)
March 31, 2018
March 31, 2017
Cash and due from banks
Investments - available for sale
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
Shares outstanding at end of period
Book value per share
Allowance for loan losses to total loans
Non-performing assets (non-accrual loans & OREO)
Tier 1 leverage ratio
Common equity tier 1 capital ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
STATEMENT OF EARNINGS
Three Months Ended
(dollars in thousands except share and per share data)