CommerceWest Bank Reports First Quarter 2015 Revenue Growth of 21%, Loan Growth of 21%, and NIB Deposit Growth of 19%

IRVINE, Calif., April 22, 2015 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended March 31, 2015 of $1,001,000 or $0.24 per common share, compared with net income of $1,103,000 or $0.25 per common share for the three months ended March 31, 2014, an EPS decrease of 4%.

Key Financial Results for the three months ended March 31, 2015:

• Interest income of $4.1 million, up 14%
• Net interest income of $3.8 million, up 16%
• Strong net interest margin of 4.46%, up 3%
• Non-interesting income of $1.0 million, up 64%
• Pre-tax income of $1.6 million, up 45%
• Efficiency ratio of 63.60%
• Total loan growth of $51.3 million, up 21%
• Non-interest bearing deposit growth of $33.0 million, up 19%
• Total asset growth of $50.2 million, up 13%
• Zero non-performing loans

Mr. Ivo Tjan, Chairman and CEO said, "Our talented team produced strong results in the first quarter.  We remain focused on increasing our franchise value by bringing in new client relationships and enhancing the experience of our existing clients by delivering to them the most up-to-date products and services."  Mr. Tjan continued, "The execution of the Bank's strategy produced positive results with growth in our top line revenue, growth in both loans and deposits; with controlled expenses that resulted in a 63.60% efficiency ratio.  We plan to continue to support local businesses, business owners and make a positive impact on the communities we serve."   

Total assets increased $50.2 million as of March 31, 2015, an increase of 13% as compared to the same period one year ago. Total loans increased $51.3 million as of March 31, 2015, an increase of 21% over the prior year.   Cash and due from banks increased $19.4 million or 31% from the prior year.  Total investment securities decreased $20.9 million or 34% from the prior year.

Total deposits increased $46.7 million as of March 31, 2015, an increase of 14% from March 31, 2014.  Non-interest bearing deposits grew $33.0 million as of March 31, 2015, an increase of 19% over the prior year. Non-interest bearing deposits as a percent of total deposits were 56% as of March 31, 2015 as compared to 54% one year ago.

Stockholders' equity on March 31, 2015 was $55.7 million, an increase of 4% as compared to stockholders' equity of $53.8 million a year ago.

Interest income was $4,096,000 for the three months ended March 31, 2015 as compared to $3,605,000 for the three months ended March 31, 2014, an increase of 14%.   Interest expense was $297,000 for the three months ended March 31, 2015 as compared to $320,000 for the three months ended March 31, 2014, a decrease of 7%.

Net interest income for the three months ended March 31, 2015 was $3,799,000 as compared to $3,285,000 for the three months ended March 31, 2014, an increase of 16%.  The net interest margin increased for the three months ended March 31, 2015. It increased from 4.31% in 2014 to 4.46% in 2015, an increase of 3%. 

Provision for loan losses for the three months ended March 31, 2015 was $181,000 compared to $65,000 for the three months ended March 31, 2014, an increase of 178%.  As of March 31, 2015, the Bank had no non-accrual loans and no OREO.  The non-performing asset to total asset ratio was zero at the end of the quarter.

Non-interest income for the three months ended March 31, 2015 was $1,001,000 compared to $610,000 for the same period last year, an increase of 64%. 

Non-interest expense for the three months ended March 31, 2015 was $3,025,000 compared to $2,727,000 for the same period last year, an increase of 11%.  

The Bank's efficiency ratio for the three months ended March 31, 2015 was 63.60% compared to 67.99% in 2014, which represents a decrease of 6%.   The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending March 31, 2015, the Bank spent $0.64 to make it, as compared to $0.68 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, 2015, the leverage ratio was 12.27%, the tier 1 capital ratio was 16.20%, and the total risk-based capital ratio was 17.45%.

CommerceWest Bank is a California based commercial bank with a unique vision and culture of focusing exclusively on the small to mid-size business community. Founded in 2001 and headquartered at 2111 Business Center Drive in Irvine, CA. The Bank serves businesses throughout California with an emphasis on clients in Orange, San Diego, Los Angeles, and Riverside Counties. We are a full service business bank and offer a wide range of commercial banking services, including concierge services, remote deposit solution, online banking, mobile 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.

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SOURCE CommerceWest Bank

Related Links

http://www.cwbk.com

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