CommerceWest Bank Reports Third Quarter 2016 Results, Including Loan Growth of 15%, EPS growth of 7% for the Quarter and 11% for the Year

IRVINE, Calif., Oct. 24, 2016 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended September 30, 2016 of $1,202,000 or $0.29 per common share, compared with net income of $1,137,000 or $0.27 per common share for the three months ended September 30, 2015, an EPS increase of 7%.  Net income for the nine months ended September 30, 2016 was $3,511,000 or $0.83 per common share, compared with net income of $3,149,000 or $0.75 per common share for the nine months ended September 30, 2015, an EPS increase of 11%.     

Key Financial Results for the three months ended September 30, 2016:

• Diluted earnings per share growth of 7%
• Interest income of $4.9 million, up 10%
• Net interest income of $4.6 million, up 11%
• Efficiency ratio of 59.67%
• 27 quarters of consecutive profits

Key Financial Results for the nine months ended September 30, 2016:

• Diluted earnings per share growth of 11%
• Net income of $3.5 million, up 11%
• Interest income of $14.1 million, up 10%
• Net interest income of $13.2 million, up 11%
• Total loan growth of $47.6 million, up 15%
• Strong capital ratios with total risk-based capital ratio of 15.90%
• Zero non-performing loans

Mr. Ivo Tjan, Chairman and Chief Executive Officer said, "The team delivered another strong performance during the third quarter against the backdrop of difficult and uncertain market conditions and continued a streak of 27 quarters of consecutive profits.  Excluding one-time other income items from the third quarter of 2015, the Bank would have recorded a 22% increase in net income for the third quarter of 2016 as well as double digit growth for the year."  Mr. Tjan added, "With core earnings expanding by 11% and non-interest expenses down 2% for the year, the Bank is positioned well for the future." 

Total assets increased $17.6 million as of September 30, 2016, an increase of 4% as compared to the same period one year ago. Total loans increased $47.6 million as of September 30, 2016, an increase of 15% over the prior year.   Cash and due from banks decreased $37.4 million or 40% from the prior year.  Total investment securities increased $7.9 million from the prior year, an increase of 21% from the prior year.

Total deposits increased $7.2 million as of September 30, 2016, an increase of 2% from September 30, 2015.  Non-interest bearing deposits decreased $6.1 million as of September 30, 2016, a decrease of 3% over the prior year. Non-interest bearing deposits as a percent of total deposits were 56% as of September 30, 2016 as compared to 59% one year ago.  As with many other financial institutions, deposit acquisition in the current environment is challenging.

Stockholders' equity on September 30, 2016 was $62.1 million, an increase of 7% as compared to stockholders' equity of $58.1 million a year ago.

Interest income was $4,923,000 for the three months ended September 30, 2016 as compared to $4,467,000 for the three months ended September 30, 2015, an increase of 10%.  Interest income was $14,069,000 for the nine months ended September 30, 2016 as compared to $12,805,000 for the nine months ended September 30, 2015, an increase of 10%.  Interest expense was $283,000 for the three months ended September 30, 2016 as compared to $274,000 for the three months ended September 30, 2015, an increase of 3%.  Interest expense was $830,000 for the nine months ended September 30, 2016 as compared to $883,000 for the nine months ended September 30, 2015, a decrease of 6%.

Net interest income for the three months ended September 30, 2016 was $4,640,000 as compared to $4,193,000 for the three months ended September 30, 2015, an increase of 11%.  The net interest margin increased for the three months ended September 30, 2016. It increased from 4.14% in 2015 to 4.18% in 2016, an increase of 1%.  Net interest income for the nine months ended September 30, 2016 was $13,239,000 as compared to $11,922,000 for the nine months ended September 30, 2015, an increase of 11%.  The net interest margin decreased for the nine months ended September 30, 2016. It decreased from 4.27% in 2015 to 4.15% in 2016, a decrease of 3%. 

Provision for loan losses for the three months ended September 30, 2016 was $75,000 compared to $135,000 for the three months ended September 30, 2015, a decrease of 44%.  Provision for loan losses for the nine months ended September 30, 2016 was $175,000 as compared to $316,000 for the nine months ended September 30, 2015, a decrease of 45%.  As of September 30, 2016, 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 the end of the quarter.

Other income for the three months ended September 30, 2016 was $515,000 compared to $943,000 for the same period last year, a decrease of 45%.   Other income for the three months ended September 30, 2015 included $245,000 in one-time items.  Other income for the nine months ended September 30, 2016 was $1,763,000 compared to $2,614,000 for the same period last year, a decrease of 33%. 

Non-interest expense for the three months ended September 30, 2016 was $3,138,000 compared to $3,170,000 for the same period last year, a decrease of 1%.  Non-interest expense for the nine months ended September 30, 2016 was $9,142,000 compared to $9,312,000 for the same period last year, a decrease of 2%. 

The Bank's efficiency ratio for the three months ended September 30, 2016 was 59.67% compared to 61.84% in 2015, which represents a decrease of 4%.   The Bank's efficiency ratio for the nine months ended September 30, 2016 was 60.31% compared to 63.46% in 2015, which represents a decrease of 5%.  The efficiency ratio illustrates, that for every dollar the Bank made for the three-month period ending September 30, 2016, the Bank spent $0.60 to make it, as compared to $0.62 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, 2016, the tier 1 leverage ratio was 12.02%, the common equity tier 1 capital ratio was 14.71%, the tier 1 risk based capital ratio was 14.71%, and the total risk-based capital ratio was 15.90%.

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, 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.

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

SOURCE CommerceWest Bank

Related Links

http://www.cwbk.com