CW Bancorp (CWBK)

[56Chevy]

CommerceWest Bank Reports Double Digit Loan and Deposit Growth, Strong Earnings Growth of 200% Year to Date

Date : 10/17/2012 @ 10:07PM
Source : Business Wire
Stock : Commercewest BK (CA) (CWBK)
Quote : $9.0 0.0 (0.00%) @ 5:00PM

CommerceWest Bank (OTCBB:CWBK) reported earnings for the three months ended September 30, 2012 of $1,417,000 or $0.33 per basic common share and $0.32 per diluted common share, compared with net income of $279,000 or $0.07 per basic common share and $0.07 per diluted common share for the three months ended September 30, 2011, an increase of 371% and 357% respectively. The bank reported earnings for the nine months ended September 30, 2012 of $3,015,000 or $0.70 per basic common share and $0.69 per diluted common share, compared with net income of $1,004,000 or $0.23 per basic common share and $0.23 per diluted common share for the nine months ended September 30, 2011, an increase of 204% and 200% respectively.

Financial performance highlights for the three months ended September 30, 2012:
Earnings growth of 408%
Return on average assets of 1.63%, an increase of 353%
Net interest income growth of 7%
Interest expense reduction of 18%
Non-interest income growth of 377%
Strong capital base, with a tier 1 leverage ratio of 12.69% and total risk based capital ratio of 20.77%
Efficiency ratio of 56.01%, a decrease of 35%

Financial performance highlights year-to-date:
Asset growth of 11%
Loan growth of 32%
Non-interest bearing deposit growth of 55%
Total deposit growth of 13%
Nonperforming assets as a percent of total assets of 0.25% Earnings growth of 200%
Interest expense reduction of 18%
Non-interest income growth of 114%
Non-interest expense reduction of 7%

Mr. Ivo Tjan, Chairman and CEO, stated, "The team continues to demonstrate the strength of our business model, core competency and ability to grow with profitability. This focused approach has generated double digit growth in total assets of 11%, loans of 32%, and a 55% increase in non-interest bearing deposits. By staying disciplined to our business model, the team has grown non-interest income 114% year over year; while at the same time reducing expenses by 7%. Our results for the third quarter were highlighted by strong earnings growth of 408% as compared to the same three month period one year ago, while maintaining strong credit quality and prudent reserves as a model of our fortress balance sheet approach."

Mr. Tjan continued, "As we stated earlier in the year, we are confident in our future and our ability to grow the franchise value by managing growth with profitability, which focuses on top line revenue, fee income generation, quality loan growth, expanding the mixture in non-interest bearing deposits and increasing core earnings."

Total assets increased $33.8 million as of September 30, 2012, an increase of 11% as compared to the same period one year ago. Total loans increased $44.3 million as of September 30, 2012, an increase of 32% over the prior year. Cash and due from banks increased $11.9 million or 21% from the prior year. Total investment securities decreased $18.3 million or 19% from the prior year.

Total deposits increased $34 million as of September 30, 2012, an increase of 13% from September 30, 2011. Non-interest bearing deposits grew $37.5 million as of September 30, 2012, an increase of 55% over the prior year.

Stockholders’ equity on September 30, 2012 was $48.7 million, an increase of 8% as compared to stockholders’ equity of $44.9 million a year ago.

Provision for loan losses for the three months ended September 30, 2012 was $275,000 compared to zero for the three months ended September 30, 2011. Provision for loan losses for the nine months ended September 30, 2012 was $470,000 compared to $160,000 for the nine months ended September 30, 2011, an increase of 194%.
Non-interest income for the three months ended September 30, 2012 was $1,589,000 compared to $333,000 for the same period last year, an increase of 377%.

Non-interest income for the nine months ended September 30, 2012 was $3,326,000 compared to $1,555,000 for the same period last year, an increase of 114%.

Non-interest expense for the three months ended September 30, 2012 was $2,461,000 compared to $2,451,000 for the same period last year, an increase of less than one percent. Non-interest expense for the nine months ended September 30, 2012 was $7,318,000 compared to $7,835,000 for the same period last year, a decrease of 7%.

*The Bank’s efficiency ratio for the three months ended September 30, 2012 was 56.01% compared to 86.72% in 2011, which represents a decrease of 35%. The Bank’s efficiency ratio for the nine months ended September 30, 2012 was 61.0% compared to 83.13% in 2011, which represents a decrease of 27%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending September 30, 2012, the Bank spent $0.56 to make it, as compared to $0.87 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, 2012, the leverage ratio was 12.69%, the tier 1 capital ratio was 19.51%, and the total risk-based capital ratio was 20.77%.

CommerceWest Bank is 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, full-service internet banking, lines of credit, term loans, commercial real estate lending, SBA lending, and full cash management.

http://ih.advfn.com/p.php?pid=nmona&article=54585110

It's worth noting again that this banks' effeciancy ratio is dropping. Its a blue ribbon pup bank!

*The bank efficiency ratio is a quick and easy measure of a bank's ability to turn resources into revenue. The lower the ratio, the better (50% is generally regarded as the maximum optimal ratio). An increase in the efficiency ratio indicates either increasing costs or decreasing revenues.

http://www.investinganswers.com/financial-dictionary/ratio-analysis/bank-efficiency-ratio-2556