Turning Pennies into dollars: (OTCBB:CWBK) CommerceWest Bank
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CommerceWest Bank Reports Annual Financial Results and 24th Consecutive Profitable Quarter
(OTCBB:CWBK) CommerceWest Bank, NA (Newport Beach, CA)
Monday January 26, 6:07 am ET
IRVINE, CA-Jan 26, 2009 - CommerceWest Bank -
Financial performance highlights for the twelve months ended December 31, 2008:
- Net income of $2,115,000 for the twelve months ended December 31, 2008 or $0.67 per basic common share and $0.65 per diluted common share - 24th consecutive profitable quarterly result - 5 Star rated by BauerFinancial, Premier rated by Findley Reports, and 4 Star rated by bankrate.com - Tier 1 leverage ratio of 14.35% on December 31, 2008, as compared to 13.62% on December 31, 2007, an increase of 5% year over year - Opted to fully FDIC insure all non-interest bearing deposits regardless of dollar amount - "Well" capitalized as designated by regulatory agencies
CommerceWest Bank reported earnings for the twelve months ended December 31, 2008 of $2,115,000 or $0.67 per basic common share and $0.65 per diluted common share, compared with net income of $3,098,000 or $0.98 per basic common share and $0.92 per diluted common share for the twelve months ended December 31, 2007.
Ivo A. Tjan, Chairman and CEO, commented, "This past year was a humbling experience for many. The economy continues to be challenging for the banking industry. Although the past year has been challenging, CommerceWest Bank reported its 24th consecutive quarter of profitability. Instead of changing our model, we are learning to do more with less. We are reducing expenses while enhancing services, and thereby becoming even more efficient. In this uncertain climate, we are committed to sustaining a fortress balance sheet by fortifying our loan loss reserves, controlling expenses and maintaining our net interest margin. As the economic challenges persist for the banking industry as a whole, our mission is clear and our foundation is solid." Mr. Tjan continued, "We look forward to deepening our existing relationships and building new ones along the way as our commitment throughout Southern California perseveres."
Mr. Tjan, CEO, added, "While our business model and strong capital position have enabled us to weather the recessionary environment so far, we added $1.79 million to our loan loss provision in 2008 to maintain our philosophy of a fortress balance sheet. CommerceWest's management team will continue to work diligently to manage through this very difficult business climate, and to position the franchise to create long term shareholder value."
Interest income was $14,041,000 for the twelve months ended December 31, 2008 as compared to $16,079,000 for the twelve months ended December 31, 2007, a decrease of 13%. Net interest income before provision for loan losses for the twelve months ended December 31, 2008 was $10,370,000, a decrease of $314,000 or 3%, compared to the same period in 2007. This decrease resulted from a $2,038,000 decrease in interest income offset by a $1,724,000 decrease in interest expense.
The net interest margin for the twelve months ended December 31, 2008 was 4.53% as compared to 4.93% for the twelve months ended December 31, 2007, a 40 basis point or 8% decrease.
Provision for loan losses for the twelve months ended December 31, 2008 was $1,785,000 compared to $813,000 for the twelve months ended December 31, 2007, an increase of 120%. The Bank's allowance for loan losses as a percent of total loans was 1.49% on December 31, 2008 as compared to 1.65% on December 31, 2007.
Non-interest income for the twelve months ended December 31, 2008 was $1,627,000 compared to $2,016,000 for the same period last year, a decrease of 19%. Included in the results for the fourth quarter was a loss on sale of a loan for $300,000. Non-interest expense for the twelve months ended December 31, 2008 was $7,057,000 compared to $7,015,000 for the same period last year, an increase of 1%.
Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2008, the leverage ratio, tier 1 capital ratio, and total risk-based capital ratio were 14.35%, 17.56% and 18.65%, respectively. "At a time when most banks have experienced the erosion of capital, CommerceWest Bank has been able to grow capital," commented CFO Leeann M. Cochran.
Total asset growth as of December 31, 2008 was $1.7 million, an increase of 1% as compared to the prior period. Total investment securities decreased $13.3 million as of December 31, 2008, a decrease of 13% over the prior period. Total loans increased $9.6 million as of December 31, 2008, an increase of 7%. Total deposits decreased $611,000 as of December 31, 2008, a decrease of less than 1% from December 31, 2007. Stockholders' equity as of December 31, 2008 was $34.3 million, an increase of 7% as compared to December 31, 2007.
Return on assets was 0.87% for the twelve months ended December 31, 2008 compared to 1.34% for the twelve months ended December 30, 2007, a decrease of 35%. Return on equity was 6.30% for the twelve months ended December 31, 2008 compared to 10.20% for the twelve months ended December 31, 2007, a decrease of 38%.
The Bank's efficiency ratio for the twelve months ended December 31, 2008 was 58.96% compared to 55.24% in 2007, which represents an increase of 7%. The efficiency ratio illustrates, that for every dollar the Bank made for the twelve month period ending December 31, 2008, the Bank spent $0.59 to make it, as compared to $0.55 one year ago.
CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices in Orange County, Inland Empire / Riverside County and Los Angeles. We 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, full cash management and treasury management.
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.
ANNUAL REPORT - DECEMBER 31, 2008 BALANCE SHEET December 31, Increase 2008 2007 - - - ASSETS Cash and due from banks 8,107 4,260 90% Securities 90,751 104,126 -13% Federal funds sold 755 1,135 -33% Loans 145,631 136,005 7% Less allowance for loan losses -3% - - Loans, net 143,465 133,762 7% Bank premises and equipment, net 784 829 -5% Other assets 11,860 9,933 19% - - Total assets 255,722 254,045 1% =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits 63,831 78,396 -19% Interest bearing deposits 136,372 122,418 11% - - Total deposits 200,203 200,814 0% Total borrowings 20,561 18,177 13% Other liabilities 574 2,773 -79% - - 221,338 221,764 0% Stockholders' equity 34,384 32,281 7% - - Total liabilities and stockholders' equity 255,722 254,045 1% =========== =========== STATEMENT OF EARNINGS (dollars in thousands except For the Twelve Months Ended Increase share and per share data) Dec 31, 2008 Dec 31, 2007 - - - Interest income 14,041 16,079 -13% Interest expense 3,671 5,395 -32% - - Net interest income 10,370 10,684 -3% Provision for loan losses 1,785 813 120% Other non-interest income 1,627 2,016 -19% Other non-interest expense 7,057 7,015 1% - - Earnings before income taxes 3,155 4,872 -35% Income taxes 1,040 1,774 -41% - - Net earnings 2,115 3,098 -32% =========== =========== Basic earnings per share $ 0.67 $ 0.98 Diluted earnings per share $ 0.65 $ 0.92 Return on Assets 0.87% 1.34% Return on Equity 6.30% 10.20% Efficiency Ratio 58.96% 55.24% Gross nonperforming loans as a % of total loans 0.23% 0.57% Tier 1 leverage ratio 14.35% 13.62% Tier 1 risk-based capital ratio 17.56% 15.41% Total risk-based capital ratio 18.65% 16.48%
Contact:
Bank Contact CommerceWest Bank, N.A. Mr. Ivo A. Tjan CEO Telephone: 251-6959 Facsimile: 251-6957 E-mail: Email Contact Website: http://www.cwbk.com "Bank on the Difference" Source: CommerceWest Bank
Profile for CommerceWest Bank, NA (Newport Beach, CA)
CommerceWest Bank, N.A. offers various banking services to the small and mid-sized businesses in southern California. It offers basic and analyzed checking accounts, money market accounts, saving accounts, certificates of deposit, attorney client services, and escrow accounts. The bank’s lending portfolio includes lines of credit; term loans; multifamily, construction, and commercial real estate loans; equipment financing; asset-based lines of credit; small business administration loans; state guaranteed programs; and letter of credit. It also offers online banking services, such as balance transfers, stop payments, make loan payments, and loan transfers. The bank’s cash management services ... Detailed CWBK Company Description...
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