CommerceWest Bank Reports First Quarter 2017 EPS Growth of 48% and Net Income Up 43%

IRVINE, Calif., April 25, 2017 /PRNewswire/ -- CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended March 31, 2017 of $1,509,000 or $0.37 per common share, compared with net income of $1,053,000 or $0.25 per common share for the three months ended March 31, 2016, an EPS increase of 48%. 

Key Financial Results for the three months ended March 31, 2017:

• Diluted earnings per share growth of 48%
• Net income of $1.5 million, up 43%
• Return on Assets of 1.26%, up 35%
• Return on Equity of 9.85%, up 40%
• Interest income of $5.0 million, up 10%
• Net interest income of $4.7 million, up 10%
• Non-interest expense down 1%
• Efficiency ratio of 53.46%
• 29 quarters of consecutive profits

Mr. Ivo Tjan, Chairman and Chief Executive Officer said, "We are pleased to report that 2017 is off to a good start as we continue to solidify relationships with our clients by remaining committed to delivering customizable products and services.  First quarter results demonstrate that we continue to execute our business plan, resulting in loan growth of 16%, deposit growth of 8% and EPS growth of 48%.  Interest income increased 10% while expenses decreased by 1% for the quarter resulting in 43% net income growth.  Mr. Tjan continued, "Our prudent capital management has enabled us to deliver shareholder value by deploying it for organic growth, increasing book value per share, declaring dividends, and stock buy backs." 

Total assets increased $37.7 million as of March 31, 2017, an increase of 8% as compared to the same period one year ago. Total loans increased $53.5 million as of March 31, 2017, an increase of 16% over the prior year.   Cash and due from banks decreased $18.7 million or 20% from the prior year.  Total investment securities increased $3.4 million from the prior year, an increase of 8% from the prior year.

Total deposits increased $34.7 million as of March 31, 2017, an increase of 8% from March 31, 2016.  Non-interest bearing deposits increased $3.1 million as of March 31, 2017, an increase of 1% over the prior year.  Interest bearing deposits increased $31.5 million as of March 31, 2017, an increase of 18% over the prior period. 

Stockholders' equity on March 31, 2017 was $61.9 million, an increase of 3% as compared to stockholders' equity of $60.4 million a year ago.

Interest income was $4,999,000 for the three months ended March 31, 2017 as compared to $4,534,000 for the three months ended March 31, 2016, an increase of 10%.  Interest expense was $309,000 for the three months ended March 31, 2017 as compared to $269,000 for the three months ended March 31, 2016, an increase of 15%. 

Net interest income for the three months ended March 31, 2017 was $4,690,000 as compared to $4,265,000 for the three months ended March 31, 2016, an increase of 10%.  The net interest margin increased for the three months ended March 31, 2017. It increased from 4.08% in 2016 to 4.27% in 2017, an increase of 5%. 

Provision for loan losses for the three months ended March 31, 2017 was $100,000 compared to $25,000 for the three months ended March 31, 2016, an increase of 300%.  As of March 31, 2017, the Bank had no past due loans, no non-accrual loans and no OREO.  The non-performing asset to total asset ratio was zero at the end of the quarter.

Other income for the three months ended March 31, 2017 was $950,000 compared to $554,000 for the same period last year, an increase of 71%.  The Bank collected approximately $493,000 in prepayment penalty fee income on loans during the first quarter of 2017.

Non-interest expense for the three months ended March 31, 2017 was $3,070,000 compared to $3,094,000 for the same period last year, a decrease of 1%.  

The Bank's efficiency ratio for the three months ended March 31, 2017 was 53.46% compared to 63.19% in 2016, which represents a decrease of 15%.   The efficiency ratio illustrates, that for every dollar the Bank made for the three-month period ending March 31, 2017, the Bank spent $0.53 to make it, as compared to $0.63 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, 2017, the tier 1 leverage ratio was 12.07%, the common equity tier 1 capital ratio was 14.39%, the tier 1 risk based capital ratio was 14.39%, and the total risk-based capital ratio was 15.63%.

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.

SOURCE CommerceWest Bank

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