CommerceWest Bank Reports Second Quarter 2013 Net Income of $1.4 million, up 37% and Year-to-Date Net Income of $2.9 million, up 82% (7/29/13)
IRVINE, Calif.--(BUSINESS WIRE)--CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended June 30, 2013 of $1,388,000 or $0.31 per common share, compared with net income of $1,015,000 or $0.23 per common share for the three months ended June 30, 2012, an EPS increase of 35%. Net income for the six months ended June 30, 2013 was $2,910,000 or $0.65 per common share, compared with net income of $1,598,000 or $0.36 per common share for the six months ended June 30, 2012, an EPS increase of 81%.
Key Financial Results:
• Net income of $1.4 million, up 37% for the quarter
• Net interest income of $2.8 million, up 13% for the quarter
• Net interest margin of 4.02%, up 8% for the quarter
• Revenue increase of 22% year-to-date
• Net income of $2.9 million, up 82% year-to-date
• Diluted EPS of $0.65, up 81% year-to-date
• Return on average assets of 1.75%, an increase of 67% year-to-date
• Return on average equity of 11.38%, an increase of 65% year-to-date
• Loan growth $24 million, up 15%
• Non-interest bearing deposit growth of $35.9 million, up 37%
• Nonperforming assets as a percent of total assets of 0.11%
Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "We are pleased with the results for the quarter and year to date. The team has been able to reposition the balance sheet over the last several quarters, which resulted in increasing non-interest bearing deposits to 47% of total deposits, while expanding the net interest margin to 4.02% and reducing interest expense by 35%." Mr. Tjan continued, "The next phase of our strategy is to focus for the remainder of 2013 on growing loans, deposits and assets. With our proven business model, strong asset quality and capital, the Bank is well positioned to execute this next part of our plan."
Total assets increased $11.1 million as of June 30, 2013, an increase of 3% as compared to the same period one year ago. Total loans increased $24 million as of June 30, 2013, an increase of 15% over the prior year. Cash and due from banks increased $9.2 million or 14% from the prior year. Total investment securities decreased $22.5 million or 27% from the prior year.
Total deposits increased $3.0 million as of June 30, 2013, an increase of 1% from June 30, 2012. Non-interest bearing deposits grew $35.9 million as of June 30, 2013, an increase of 37% over the prior year. Non-interest bearing deposits as a percent of total deposits were 47% as of June 30, 2013 as compared to 34% one year ago.
Stockholders’ equity on June 30, 2013 was $52.1 million, an increase of 11% as compared to stockholders’ equity of $46.8 million a year ago.
Interest income was $3,191,000 for the quarter ended June 30, 2013 as compared to $3,071,000 for the quarter ended June 30, 2012, an increase of 4%. Interest expense was $383,000 for the quarter ended June 30, 2013 as compared to $593,000 for the quarter ended June 30, 2012, a decrease of 35%. Interest income was $6,394,000 for the six months ended June 30, 2013 as compared to $6,116,000 for the six months ended June 30, 2012, an increase of 5%. Interest expense was $793,000 for the six months ended June 30, 2013 as compared to $1,203,000 for the six months ended June 30, 2012, a decrease of 34%.
Net interest income for the three months ended June 30, 2013 was $2,808,000 as compared to $2,478,000 for the three months ended June 30, 2012, an increase of 13%. The net interest margin increased for the second quarter of 2013, which increased from 3.71% in 2012 to 4.02% in 2013, an increase of 8%. Net interest income for the six months ended June 30, 2013 was $5,601,000 as compared to $4,913,000 for the six months ended June 30, 2012, an increase of 14%. The net interest margin increased for the six months ended June 30, 2013. It increased from 3.74% in 2012 to 4.00% in 2013, an increase of 7%.
Provision for loan losses for the three months ended June 30, 2013 was $50,000 compared to $75,000 for the three months ended June 30, 2012, a decrease of 33%. Provision for loan losses for the six months ended June 30, 2013 was $210,000 compared to $195,000 for the six months ended June 30, 2012, an increase of 8%.
Non-interest income for the three months ended June 30, 2013 was $1,609,000 compared to $945,000 for the same period last year, an increase of 70%. Non-interest income for the six months ended June 30, 2013 was $3,174,000 compared to $1,737,000 for the same period last year, an increase of 83%.
Non-interest expense for the three months ended June 30, 2013 was $2,979,000 compared to $2,333,000 for the same period last year, an increase of 28%. The Bank upgraded its core processor during the quarter. Non-interest expense for the six months ended June 30, 2013 was $5,655,000 compared to $4,857,000 for the same period last year, an increase of 16%.
The Bank’s efficiency ratio for the three months ended June 30, 2013 was 67.11% compared to 59.01% in 2012, which represents an increase of 14%. The Bank’s efficiency ratio for the six months ended June 30, 2013 was 62.95% compared to 63.48% in 2012, which represents a decrease of 1%. The efficiency ratio illustrates, that for every dollar the Bank made for the six month period ending June 30, 2013, the Bank spent $0.63 to make it, as compared to $0.64 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 June 30, 2013, the leverage ratio was 14.32%, the tier 1 capital ratio was 21.17%, and the total risk-based capital ratio was 22.42%.
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 https://www.cwbk.com to learn more about the bank. “BANK ON THE DIFFERENCE”
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