CommerceWest Bank Reports First Quarter 2013 Net Income of $1.5 million, up 161%, Revenue Increase of 24% From Prior Year (4/23/13)
IRVINE, Calif.--(BUSINESS WIRE)--CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended March 31, 2013 of $1,522,000 or $0.34 per common share, compared with net income of $583,000 or $0.13 per common share for the three months ended March 31, 2012, an EPS increase of 162%.
Financial performance highlights for First Quarter 2013:
• Revenue increase of 24%
• Record net income of $1.5 million, up 161%
• Record diluted EPS of $0.34, up 162%
• Non-interest income of $1.6 million, up 98%
• Return on average assets of 1.84%, an increase of 136%
• Return on average equity of 12.19%, an increase of 142%
• Loan growth $39.2 million, up 26%
• Non-interest bearing deposit growth of $39.1 million, up 46%
• Book value of $11.91 per share, an increase of 12%
• Interest expense reduction of 33%
• Nonperforming assets as a percent of total assets of 0.11%
• No loans 30 days past due
• Total shareholders' equity of $51.4 million, highest level in company history
Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "Our talented team members continue to execute our strategic plan to focus on revenue growth. We plan to expand our team by adding top talent to enhance our organizational structure and performance. Asset quality remains very strong with solid capital levels, including a 13.67% Tier 1 leverage ratio, which positions us well for future growth to bring in new client relationships or provide more products to our existing business clients. CommerceWest Bank's unique business model creates franchise value by increasing our non-interest bearing deposits and loans; while at the same time balancing it with earnings growth. As a result, there were increases in our net income of 161%, non-interest income of 98%, ROA of 136% and ROE of 142%.”
Total assets increased $25.8 million as of March 31, 2013, an increase of 8% as compared to the same period one year ago. Total loans increased $39.2 million as of March 31, 2013, an increase of 26% over the prior year. Cash and due from banks increased $10.9 million or 19% from the prior year. Total investment securities decreased $24.0 million or 27% from the prior year.
Total deposits increased $21.5 million as of March 31, 2013, an increase of 8% from March 31, 2012. Non-interest bearing deposits grew $39.1 million as of March 31, 2013, an increase of 46% over the prior year.
Stockholders’ equity on March 31, 2013 was $51.4 million, an increase of 11% as compared to stockholders’ equity of $46.2 million a year ago.
Interest income was $3,203,000 for the quarter ended March 31, 2013 as compared to $3,045,000 for the quarter ended March 31, 2012, an increase of 5%. Interest expense was $410,000 for the quarter ended March 31, 2013 as compared to $610,000 for the quarter ended March 31, 2012, a decrease of 33%.
Net interest income for the three months ended March 31, 2013 was $2,793,000 as compared to $2,435,000 for the three months ended March 31, 2012, an increase of 15%. The net interest margin increased for the first quarter of 2013, which increased from 3.77% in 2012 to 3.99% in 2013, an increase of 6%.
Provision for loan losses for the three months ended March 31, 2013 was $160,000 compared to $120,000 for the three months ended March 31, 2012, an increase of 33%.
Non-interest income for the three months ended March 31, 2013 was $1,565,000 compared to $792,000 for the same period last year, an increase of 98%.
Non-interest expense for the three months ended March 31, 2013 was $2,676,000 compared to $2,524,000 for the same period last year, an increase of 6%.
The Bank’s efficiency ratio for the three months ended March 31, 2013 was 60.14% compared to 71.68% in 2012, which represents a decrease of 16%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending March 31, 2013, the Bank spent $0.60 to make it, as compared to $0.72 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, 2013, the leverage ratio was 13.67%, the tier 1 capital ratio was 19.93%, and the total risk-based capital ratio was 21.18%.
CommerceWest Bank is a California based commercial bank with a unique vision and culture of focusing exclusively on the business community. The Bank was founded in 2001 and 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, 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.
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