CommerceWest Bank Reports Record Full Year Net Income of $4.2 Million, Up 199% from 2011 And Quarter

CommerceWest Bank Reports Record Full Year Net Income of $4.2 Million, Up 199% from 2011 And Quarterly Net Income of $1.2 Million, Up 197% from 2011

IRVINE, Calif.--(BUSINESS WIRE)-- CommerceWest Bank (OTCBB: CWBK) reported record net income for the twelve months ended December 31, 2012 of $4,207,000 or $0.96 per common share, compared with net income of $1,406,000 or $0.32 per common share for the twelve months ended December 31, 2011, an EPS increase of 200%. The bank reported net income for the three months ended December 31, 2012 of $1,192,000 or $0.27 per common share, compared with net income of $402,000 or $0.09 per common share for the three months ended December 31, 2011, an EPS increase of 200%.

Financial performance highlights year-to-date:

  • Record net income of $4.2 million, up 199%
  • Record non-interest income of $4.7 million, up 136%
  • Return on average assets of 1.30%, an increase of 177%
  • Return on average equity of 8.84%, an increase of 180%
  • Asset growth of $49.8 million, up 17%
  • Loan growth $37.3 million, up 25%
  • Non-interest bearing deposit growth of $38.3 million, up 50%
  • Book value of $11.60 per share, an increase of 12%
  • Interest expense reduction of 19%
  • Nonperforming assets as a percent of total assets of 0.16%
  • No loans 30 days past due

Financial performance highlights for the three months ended December 31, 2012:

  • Record net income of $1.2 million, up 197%
  • Net interest income growth of 13%
  • Net interest margin of 3.84%, an increase of 9%
  • Record non-interest income of $1.4 million, up 217%
  • Efficiency ratio of 55.63%, a decrease of 34%
  • Strong capital position, with a tier 1 leverage ratio of 13.10% and total risk based capital ratio of 21.11%

Mr. Ivo Tjan, Chairman and CEO stated, "2012 was an outstanding year for CommerceWest Bank. We reported record net income, solid loan and non-interest bearing deposit growth and increased our tangible book value by 13%. Our disciplined and unique business model has allowed the team to strategically execute on the business plan to grow our market share, improve and maintain strong asset quality, and improve the Bank's operating efficiency. The success is a result of our incredibly talented and passionate team members who help create our client experience and provide a banking partnership environment to our clients."

Mr. Tjan continued, "We are well positioned for 2013 and confident in our future and the team's ability to grow our franchise value with our unique business model. CommerceWest Bank continues to outperform its peer group and we are optimistic in contributing to the growth in the local economy for 2013."

Total assets increased $49.8 million as of December 31, 2012, an increase of 17% as compared to the same period one year ago. Total loans increased $37.3 million as of December 31, 2012, an increase of 25% over the prior year. Cash and due from banks increased $38.7 million or 101% from the prior year. Total investment securities decreased $23.8 million or 25% from the prior year.

Total deposits increased $39.8 million as of December 31, 2012, an increase of 16% from December 31, 2011. Non-interest bearing deposits grew $38.3 million as of December 31, 2012, an increase of 50% over the prior year.

Stockholders' equity on December 31, 2012 was $49.7 million, an increase of 9% as compared to stockholders' equity of $45.6 million a year ago.

Interest income was $3,250,000 for the quarter ended December 31, 2012 as compared to $3,069,000 for the quarter ended December 31, 2011, an increase of 6%. Interest income was $12,514,000 for the twelve months ended December 31, 2012 as compared to $12,680,000 for the twelve months ended December 31, 2011, a decrease of 1%. Interest expense was $493,000 for the quarter ended December 31, 2012 as compared to $636,000 for the quarter ended December 31, 2011, a decrease of 22%. Interest expense was $2,280,000 for the twelve months ended December 31, 2012 as compared to $2,803,000 for the twelve months ended December 31, 2011, a decrease of 19%.

Net interest income for the three months ended December 31, 2012 was $2,757,000 as compared to $2,433,000 for the three months ended December 31, 2011, an increase of 13%. Net interest income was $10,234,000 for the twelve months ended December 31, 2012 as compared to $9,877,000 for the twelve months ended December 31, 2011, an increase of 4%. The net interest margin increased for the fourth quarter of 2012, which increased from 3.52% in 2011 to 3.84% in 2012, an increase of 9%. The net interest margin for the twelve months ended December 31, 2012 was 3.68% as compared to 3.73% for the prior period, a 1.0% decrease.

Provision for loan losses for the three months ended December 31, 2012 was $175,000 compared to $30,000 for the three months ended December 31, 2011. Provision for loan losses for the twelve months ended December 31, 2012 was $645,000 compared to $190,000 for the twelve months ended December 31, 2011, an increase of 239%.

Non-interest income for the three months ended December 31, 2012 was $1,370,000 compared to $432,000 for the same period last year, an increase of 217%. Non-interest income for the twelve months ended December 31, 2012 was $4,696,000 compared to $1,987,000 for the same period last year, an increase of 136%.

Non-interest expense for the three months ended December 31, 2012 was $2,760,000 compared to $2,433,000 for the same period last year, an increase of 13%. Non-interest expense for the twelve months ended December 31, 2012 was $10,078,000 compared to $10,268,000 for the same period last year, a decrease of 2%.

The Bank's efficiency ratio for the three months ended December 31, 2012 was 55.63% compared to 84.91% in 2011, which represents a decrease of 34%. The Bank's efficiency ratio for the twelve months ended December 31, 2012 was 62.42% compared to 82.66% in 2011, which represents a decrease of 24%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending December 31, 2012, the Bank spent $0.56 to make it, as compared to $0.85 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 December 31, 2012, the leverage ratio was 13.10%, the tier 1 capital ratio was 19.86%, and the total risk-based capital ratio was 21.11%.

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 in Orange County, Los Angeles County and San Diego 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.

   
 
FOURTH QUARTER REPORT - DECEMBER 31, 2012 (Unaudited)      
       
BALANCE SHEET Increase
(dollars in thousands) Dec 31, 2012 Dec 31, 2011 (Decrease)
 
ASSETS
Cash and due from banks 77,053 38,314 101 %
Securities 70,396 94,279 -25 %
Loans 186,490 149,235 25 %
Less allowance for loan losses   (3,185 )   (3,105 ) 3 %
Loans, net 183,305 146,130 25 %
 
Bank premises and equipment, net 372 488 -24 %
Other assets   15,607     17,696   -12 %
Total assets   346,733     296,907   17 %
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interesting bearing deposits 114,747 76,495 50 %
Interest bearing deposits   173,919     172,366   1 %
Total deposits 288,666 248,861 16 %
Total borrowings 6,000 500 1100 %
Other liabilities   2,371     1,913   24 %
297,037 251,274 18 %
Stockholders' equity   49,696     45,633   9 %
Total liabilities and stockholders' equity   346,733     296,907   17 %
 

CAPITAL RATIOS:

Tier 1 leverage ratio 13.10 % 13.75 % -5 %
Tier 1 risk-based capital ratio 19.86 % 21.25 % -7 %
Total risk-based capital ratio 21.11 % 22.51 % -6 %
 
Book Value $ 11.60 $ 10.38 12 %
Tangible Book Value $ 10.63 $ 9.37 13 %
 
 
                           
STATEMENT OF EARNINGS     Three Months Ended     Increase Twelve Months Ended     Increase
(dollars in thousands except share and per share data) Dec 31, 2012     Dec 31, 2011 (Decrease) Dec 31, 2012     Dec 31, 2011 (Decrease)
 
Interest income 3,250 3,069 6 % 12,514 12,680 -1 %
Interest expense   493     636   -22 %   2,280     2,803   -19 %
Net interest income 2,757 2,433 13 % 10,234 9,877 4 %
Provision for loan losses 175 30 483 % 645 190 239 %
Non-interest income 1,370 432 217 % 4,696 1,987 136 %
Non-interest expense   2,760     2,433   13 %   10,078     10,268   -2 %
Earnings before income taxes 1,192 402 197 % 4,207 1,406 199 %
Income taxes   -     -   0 %   -     -   0 %
Net income   1,192     402   197 %   4,207     1,406   199 %
 
Basic earnings per share $ 0.28 $ 0.09 211 % $ 0.97 $ 0.32 203 %
Diluted earnings per share $ 0.27 $ 0.09 200 % $ 0.96 $ 0.32 200 %
Return on Assets (annualized) 1.39 % 0.54 % 157 % 1.30 % 0.47 % 177 %
Return on Equity (annualized) 9.60 % 3.54 % 171 % 8.84 % 3.16 % 180 %
Efficiency Ratio 55.63 % 84.91 % -34 % 62.42 % 82.66 % -24 %
Net Interest Margin 3.84 % 3.52 % 9 % 3.68 % 3.73 % -1 %
 



Bank Contact
CommerceWest Bank
Mr. Ivo A. Tjan, CEO
Ms. Leeann M. Cochran, CFO
Telephone: (949) 251-6959
Facsimile: (949) 251-6957
E-mail: itjan@cwbk.com or lcochran@cwbk.com
Website: www.cwbk.com
"Bank on the Difference"

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article CommerceWest Bank Reports Record Full Year Net Income of $4.2 Million, Up 199% from 2011 And Quarterly Net Income of $1.2 Million, Up 197% from 2011 originally appeared on Fool.com.

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