Oct 31, 2013

Irvine, California – October 31, 2013 – CommerceWest Bank reported net income for the three months ended September 30, 2013 of $1,270,000 or $0.28 per common share, compared with net income of $1,417,000 or $0.32 per common share for the three months ended September 30, 2012.  Net income for the nine months ended September 30, 2013 was $4,180,000 or $0.93 per common share, compared with net income of $3,015,000 or $0.69 per common share for the nine months ended September 30, 2012, an EPS increase of 35%.    

Key Financial Results:

  • Net interest income of $3.0 million, up 18% for the quarter
  • Net interest margin of 4.16% up from 3.44%, an increase of 21% for the quarter
  • Net income of $4.2 million, up 39% year-to-date
  • Diluted EPS of $0.93, up 35% year-to-date
  • Return on average assets of 1.65%, an increase of 30% year-to-date
  • Return on average equity of 10.76%, an increase of 26% year-to-date
  • Total loan growth of $27 million, up 15%
  • Nonperforming assets as a percent of total assets of 0.10%

Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "The Bank is focused on maintaining a fortress balance sheet.  The team has achieved double digit loan and non-interest bearing deposit growth, with strong asset quality, net interest income growth and profitability."  He stated further, "We have achieved a 50% noninterest bearing deposit to total deposit ratio, which has contributed to the expanded net interest margin and positions the Bank well for a rising interest rate environment.  Our team will continue to focus the remainder of 2013 on quality loan, deposit and asset growth." 

Total assets increased $14.4 million as of September 30, 2013, an increase of 4% as compared to the same period one year ago. Total loans increased $27 million as of September 30, 2013, an increase of 15% over the prior year.   Cash and due from banks decreased $3.4 million or 5% from the prior year.  Total investment securities decreased $10.5 million or 14% from the prior year.

Total deposits increased $9.0 million as of September 30, 2013, an increase of 3% from September 30, 2012.  Non-interest bearing deposits grew $42.9 million as of September 30, 2013, an increase of 40% over the prior year. Non-interest bearing deposits as a percent of total deposits were 50% as of September 30, 2013 as compared to 37% one year ago.

Stockholders’ equity on September 30, 2013 was $53.5 million, an increase of 10% as compared to stockholders’ equity of $48.7 million a year ago.

Interest income was $3,404,000 for the quarter ended September 30, 2013 as compared to $3,148,000 for the quarter ended September 30, 2012, an increase of 8%.   Interest expense was $370,000 for the quarter ended September 30, 2013 as compared to $584,000 for the quarter ended September 30, 2012, a decrease of 37%.   Interest income was $9,798,000 for the nine months ended September 30, 2013 as compared to $9,264,000 for the nine months ended September 30, 2012, an increase of 6%.   Interest expense was $1,163,000 for the nine months ended September 30, 2013 as compared to $1,787,000 for the nine months ended September 30, 2012, a decrease of 35%.

Net interest income for the three months ended September 30, 2013 was $3,034,000 as compared to $2,564,000 for the three months ended September 30, 2012, an increase of 18%.  The net interest margin increased for the second quarter of 2013, which increased from 3.44% in 2012 to 4.16% in 2013, an increase of 21%.  Net interest income for the nine months ended September 30, 2013 was $8,635,000 as compared to $7,477,000 for the nine months ended September 30, 2012, an increase of 15%.  The net interest margin increased for the nine months ended September 30, 2013. It increased from 3.63% in 2012 to 4.06% in 2013, an increase of 12%. 

Provision for loan losses for the three months ended September 30, 2013 was zero compared to $275,000 for the three months ended September 30, 2012, a decrease of 100%.  Provision for loan losses for the nine months ended September 30, 2013 was $210,000 compared to $470,000 for the nine months ended September 30, 2012, a decrease of 55%. 

Non-interest income for the three months ended September 30, 2013 was $799,000 compared to $1,589,000 for the same period last year, a decrease of 50%.  Non-interest income for the nine months ended September 30, 2013 was $3,973,000 compared to $3,326,000 for the same period last year, an increase of 19%. 

Non-interest expense for the three months ended September 30, 2013 was $2,563,000 compared to $2,461,000 for the same period last year, an increase of 4%.   Non-interest expense for the nine months ended September 30, 2013 was $8,218,000 compared to $7,318,000 for the same period last year, an increase of 12%.

The Bank’s efficiency ratio for the three months ended September 30, 2013 was 64.97% compared to 56.01% in 2012, which represents an increase of 16%.   The Bank’s efficiency ratio for the nine months ended September 30, 2013 was 63.55% compared to 61.00% in 2012, which represents an increase of 4%.   The efficiency ratio illustrates, that for every dollar the Bank made for the nine month period ending September 30, 2013, the Bank spent $0.64 to make it, as compared to $0.61 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, 2013, the leverage ratio was 14.41%, the tier 1 capital ratio was 19.81%, and the total risk-based capital ratio was 21.06%.

CommerceWest Bank is a California based commercial bank with a unique vision and culture of focusing exclusively on the business community.  Founded in 2001 and headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices serving Orange County, Los Angeles County, San Diego County and Riverside County.  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.

 

Back To News