New Zealand markets open in 46 minutes
  • NZX 50

    11,617.14
    +6.15 (+0.05%)
     
  • NZD/USD

    0.6379
    +0.0026 (+0.41%)
     
  • ALL ORDS

    7,369.40
    -53.80 (-0.72%)
     
  • OIL

    71.60
    -0.41 (-0.57%)
     
  • GOLD

    1,801.50
    +3.50 (+0.19%)
     

CW Bancorp Reports Q2 2022 EPS of $1.20 up 48% and ROTE of 25.93% up 50%

IRVINE, Calif., July 28, 2022--(BUSINESS WIRE)--CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the second quarter of 2022 of $4,186,000 or $1.20 a share as compared to $2,981,000 or $0.81 a share for the second quarter of 2021, an EPS increase of 48% and net income for the six months ended June 30, 2022 of $8,244,000 or $2.35 a share as compared to $6,628,000 or $1.80 a share for the six months ended June 30, 2021, an EPS increase of 31%.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220728005290/en/

(Graphic: Business Wire)

Key Financial Results for the three months ended June 30, 2022:

  • Net income growth of 40%

  • EPS of $1.20 up 48%

  • ROTE of 25.93% up 50%

  • ROA of 1.39% up 35%

  • Net interest income up 38%

  • Net interest margin up 34%

  • Cost of deposits of 0.06% down 45%

  • Efficiency ratio of 41%

  • ALLL to total loans ratio (net of PPP loans) of 1.29%

  • 50 quarters of consecutive profits

Key Financial Results for the six months ended June 30, 2022:

  • Net income growth of 24%

  • EPS of $2.35 up 31%

  • ROTE of 24.82% up 28%

  • ROA of 1.33% up 16%

  • Total asset growth of $49 million up 4%

  • Loan growth of $151 million up 23%

  • Deposit growth of $38 million up 4%

  • Noninterest-bearing deposits as percent of total deposits at 63%

Mr. Ivo Tjan, Chairman and CEO commented, "Our team achieved double digit growth in earnings per share, net income, net interest margin and return on tangible equity for both the quarter and for the first six months of 2022 in a challenging economic environment. We continue to demonstrate the strength of the Bank’s business model, digital banking strategy and our team’s execution; while maintaining a fortress balance sheet." Mr. Tjan continued, "We are positioned well to continue to service our clients in California during this economic cycle. The company recorded our 50th quarter of consecutive profits and posted a strong 41% efficiency ratio."

Total assets increased $49.0 million as of June 30, 2022, an increase of 4% as compared to the same period one year ago. Total loans increased $152 million as of June 30, 2022, an increase of 23% over the prior year. Total loans net of PPP loans increased $249 million as of June 30, 2022, an increase of 46%. Cash and due from banks decreased $201 million or 50% from the prior year with the deployment of funds into loans and investment securities. Total investment securities increased $92 million, an increase of 103% from the prior year.

Total deposits increased $38 million as of June 30, 2022, an increase of 4% from June 30, 2021. Non-interest-bearing deposits increased $47 million as of June 30, 2022, an increase of 7% over the prior year. Interest bearing deposits decreased $10 million as of June 30, 2022, a decrease of 2% over the prior period.

Interest income was $9,720,000 for the three months ended June 30, 2022 as compared to $7,149,000 for the three months ended June 30, 2021, an increase of 36%. Interest expense was $629,000 for the three months ended June 30, 2022 as compared to $583,000 for the three months ended June 30, 2021, an increase of 8% due to the Company adding $17.5 million in subordinated debt in the fourth quarter of 2021. Interest income was $18,892,000 for the six months ended June 30, 2022 as compared to $14,717,000 for the six months ended June 30, 2021, an increase of 28%. Interest expense was $1,265,000 for the six months ended June 30, 2022 as compared to $955,000 for the six months ended June 30, 2021, an increase of 32%. Reductions in the cost of deposits were offset by increased funding costs related to subordinated debt.

Net interest income for the three months ended June 30, 2022 was $9,091,000 as compared to $6,566,000 for the three months ended June 30, 2021, an increase of 38%. The net interest margin increased for the three months ended June 30, 2022. It increased from 2.41% in 2021 to 3.22% in 2022, an increase of 34%. Net interest income for the six months ended June 30, 2022 was $17,627,000 as compared to $13,762,000 for the six months ended June 30, 2021, an increase of 28%. The net interest margin increased for the six months ended June 30, 2022. It increased from 2.52% in 2021 to 3.03% in 2022, an increase of 20%.

Provision for loan losses for the three months ended June 30, 2022 was $375,000 compared to zero for the three months ended June 30, 2021. Provision for loan losses for the six months ended June 30, 2022 was $500,000 compared to zero for the six months ended June 30, 2021. The allowance for loan losses (net of PPP loans) to total loans ratio decreased from 1.71% as of June 30, 2021 to 1.29% as of June 30, 2022.

Non-interest income for the three months ended June 30, 2022 was $1,515,000 compared to $1,283,000 for the same period last year, an increase of 18%. Non-interest income for the six months ended June 30, 2022 was $2,909,000 compared to $2,389,000 for the same period last year, an increase of 22%.

Non-interest expense for the three months ended June 30, 2022 was $4,404,000 compared to $3,711,000 for the same period last year, an increase of 19%. Non-interest expense for the six months ended June 30, 2022 was $8,590,000 compared to $7,209,000 for the same period last year, an increase of 19%.

The efficiency ratio for the three months ended June 30, 2022 was 41.14% compared to 47.28% in 2021, which represents a decrease of 13%. The efficiency ratio illustrates that for every dollar made for the three-month period ending June 30, 2022, it cost $0.4114 to make it, as compared to $0.4728 one year ago. The efficiency ratio for the six months ended June 30, 2022 was 41.43% compared to 44.25% in 2021, which represents a decrease of 6%.

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of June 30, 2022, the tier 1 leverage ratio was 9.81%, the common equity tier 1 capital ratio was 15.19%, the tier 1 risk-based capital ratio was 15.19% and the total risk-based capital ratio was 16.44%.

CommerceWest Bank is determined to redefine banking for small and medium sized businesses by delivering on customized products and services. Founded in 2001 and headquartered in Irvine, California, the Bank serves businesses throughout the state of California with our digital banking platform. By employing a strategically selected team of experienced professionals, we will provide flexibility, create a complete, safe and sound banking experience for each client. We provide a wide range of commercial banking services, including remote deposit solution, NetBanker online banking, mobile banking, lines of credit, M&A / working capital loans, commercial real estate loans, SBA loans 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.

SECOND QUARTER REPORT - JUNE 30, 2022 (Unaudited)

 

CW BANCORP

%

CONSOLIDATED BALANCE SHEET

Increase

(dollars in thousands)

June 30, 2022

June 30, 2021

(Decrease)

 

ASSETS

Cash and due from banks

$

197,912

 

$

399,278

 

-50

%

Securities available for sale

 

130,597

 

 

76,909

 

70

%

Securities held-to-maturity

 

51,750

 

 

13,066

 

296

%

 

Loans (PPP loans $26,136 and $157,208 at 2022 and 2021, respectively)

 

802,284

 

 

650,773

 

23

%

Less allowance for loan losses

 

(10,210

)

 

(9,201

)

11

%

Loans, net

 

792,074

 

 

641,572

 

23

%

 

Bank premises and equipment, net

 

5,460

 

 

5,950

 

-8

%

Other assets

 

33,120

 

 

25,321

 

31

%

Total assets

$

1,210,913

 

$

1,162,096

 

4

%

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest bearing deposits

$

680,488

 

$

633,277

 

7

%

Interest bearing deposits

 

401,408

 

 

410,980

 

-2

%

Total deposits

 

1,081,896

 

 

1,044,257

 

4

%

 

Subordinated debenture

 

50,000

 

 

32,500

 

54

%

Other liabilities

 

12,746

 

 

12,325

 

3

%

 

1,144,642

 

 

1,089,082

 

5

%

Stockholders' equity

 

66,271

 

 

73,014

 

-9

%

Total liabilities and stockholders' equity

$

1,210,913

 

$

1,162,096

 

4

%

 

Shares outstanding at end of period

 

3,371,667

 

 

3,500,092

 

Book value per share

$

22.48

 

$

19.99

 

Total loans to total deposits

 

74.16

%

 

62.32

%

ALLL to total loans (net of PPP loans)

 

1.29

%

 

1.71

%

Nonperforming assets (non-accrual loans & OREO)

$

19

 

$

-

 

 

COMMERCEWEST BANK CAPITAL RATIOS:

Tier 1 leverage ratio

 

9.81

%

 

8.02

%

Common equity tier 1 capital ratio

 

15.19

%

 

15.00

%

Tier 1 risk-based capital ratio

 

15.19

%

 

15.00

%

Total risk-based capital ratio

 

16.44

%

 

16.25

%

 

CW BANCORP

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

Three Months Ended

Increase

For the Six Months Ended

Increase

(dollars in thousands except share and per share data)

June 30, 2022

June 30, 2021

(Decrease)

June 30, 2022

June 30, 2021

(Decrease)

 

INTEREST INCOME

Loans

$

8,184

 

$

6,389

 

28

%

$

16,126

 

$

13,187

 

22

%

Investments

 

1,110

 

 

501

 

122

%

 

2,088

 

 

960

 

118

%

Fed funds sold and other

 

426

 

 

259

 

64

%

 

678

 

 

570

 

19

%

Total interest income

 

9,720

 

 

7,149

 

36

%

 

18,892

 

 

14,717

 

28

%

 

INTEREST EXPENSE

Deposits

 

159

 

 

278

 

-43

%

 

325

 

 

583

 

-44

%

Subordinated debenture

 

469

 

 

305

 

54

%

 

938

 

 

372

 

152

%

Other borrowings

 

1

 

 

-

 

-

 

 

2

 

 

-

 

-

 

Total interest expense

 

629

 

 

583

 

8

%

 

1,265

 

 

955

 

32

%

 

NET INTEREST INCOME BEFORE LOAN LOSS PROVISION

 

9,091

 

 

6,566

 

38

%

 

17,627

 

 

13,762

 

28

%

 

PROVISION FOR LOAN LOSSES

 

375

 

 

-

 

-

 

 

500

 

 

-

 

-

 

Non-interest income:

 

NET INTEREST INCOME AFTER LOAN LOSS PROVISION

 

8,716

 

 

6,566

 

33

%

 

17,127

 

 

13,762

 

24

%

 

NON-INTEREST INCOME

Service Charges and Fees on Deposits

 

1,149

 

 

1,096

 

5

%

 

2,141

 

 

2,389

 

-10

%

Gain on Sale of Loans

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

Other Fees

 

366

 

 

187

 

96

%

 

768

 

 

-

 

-

 

 

NON-INTEREST EXPENSE

 

4,404

 

 

3,711

 

19

%

 

8,590

 

 

7,209

 

19

%

 

EARNINGS BEFORE INCOME TAXES

 

5,827

 

 

4,138

 

41

%

 

11,446

 

 

8,942

 

28

%

 

INCOME TAXES

 

1,641

 

 

1,157

 

42

%

 

3,202

 

 

2,314

 

38

%

 

 

NET INCOME

$

4,186

 

$

2,981

 

40

%

$

8,244

 

$

6,628

 

24

%

 

Basic earnings per share

$

1.23

 

$

0.85

 

45

%

$

2.41

 

$

1.87

 

29

%

Diluted earnings per share

$

1.20

 

$

0.81

 

48

%

$

2.35

 

$

1.80

 

31

%

Return on Assets

 

1.39

%

 

1.03

%

35

%

 

1.33

%

 

1.15

%

16

%

Return on Equity

 

24.76

%

 

16.54

%

50

%

 

23.74

%

 

18.51

%

28

%

Return on Tangible Equity

 

25.93

%

 

17.28

%

50

%

 

24.82

%

 

19.33

%

28

%

Efficiency Ratio

 

41.14

%

 

47.28

%

-13

%

 

41.43

%

 

44.25

%

-6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CW BANCORP

CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS

 

Three Months Ended June 30,

2022

 

2021

Average
Balance

Interest
Income /
Expense

Yield /
Cost

Average
Balance

Interest
Income /
Expense

Yield /
Cost

(dollars in thousands)

INTEREST EARNING ASSETS

Int Bearing Due from Banks & FFS

$

159,229

$

351

0.88

%

$

336,339

$

215

0.26

%

Investment Securities (1)

 

182,926

 

1,208

2.65

%

 

84,905

 

570

2.69

%

Loans

 

796,615

 

8,184

4.12

%

 

680,331

 

6,389

3.77

%

FHLB & Other Stocks

 

6,115

 

75

4.92

%

 

3,708

 

44

4.76

%

Total interest-earning assets

 

1,144,885

 

9,818

3.44

%

 

1,105,283

 

7,218

2.62

%

 

Noninterest-earning assets

 

64,204

 

52,592

Total assets

$

1,209,089

$

1,157,875

 

 

INTEREST EARNING LIABILITIES

Interest Bearing Deposits

$

426,084

$

159

0.15

%

 

424,375

 

278

0.26

%

Other Borrowings

 

1,341

 

1

0.30

%

 

42

 

-

0.00

%

Subordinated Debenture

 

50,000

 

469

3.77

%

 

32,500

 

305

3.77

%

Total interest-earning liabilities

 

477,425

 

629

0.53

%

 

456,917

 

583

0.51

%

 

Noninterest-earning liabilities

Demand Deposits

 

651,306

 

620,731

Other Liabilities

 

12,533

 

7,961

Shareholders' Equity

 

67,825

 

72,266

Total liabilities and shareholder's equity

$

1,209,089

$

1,157,875

 

Net Interest Spread

$

9,189

2.91

%

$

6,635

2.11

%

Net Interest Margin

3.22

%

2.41

%

 

Total Deposits

$

1,077,390

$

159

0.06

%

$

1,045,106

$

278

0.11

%

Total Funding Costs

$

1,128,731

$

629

0.22

%

$

1,077,648

$

583

0.22

%

 

(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

 

CW BANCORP

CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS

 

Six Months Ended June 30,

2022

2021

Average
Balance

Interest
Income /
Expense

Yield /
Cost

Average
Balance

Interest
Income /
Expense

Yield /
Cost

(dollars in thousands)

INTEREST EARNING ASSETS

Int Bearing Due from Banks & FFS

$

211,612

$

554

0.53

%

$

366,790

$

490

0.27

%

Investment Securities (1)

 

180,311

 

2,288

2.56

%

 

80,587

 

1,096

2.74

%

Loans

 

790,223

 

16,126

4.12

%

 

662,037

 

13,187

4.02

%

FHLB & Other Stocks

 

5,209

 

124

4.80

%

 

3,353

 

80

4.81

%

Total interest-earning assets

 

1,187,355

 

19,092

3.24

%

 

1,112,767

 

14,853

2.69

%

 

Noninterest-earning assets

 

62,333

 

52,410

Total assets

$

1,249,688

$

1,165,177

 

 

INTEREST EARNING LIABILITIES

Interest Bearing Deposits

$

454,800

$

325

0.14

%

$

440,317

$

583

0.27

%

Other Borrowings

 

675

 

2

0.60

%

 

22

 

-

0.00

%

Subordinated Debenture

 

50,000

 

938

3.75

%

 

19,861

 

372

3.75

%

Total interest-earning liabilities

 

505,475

 

1,265

0.50

%

 

460,200

 

955

0.42

%

 

Noninterest-earning liabilities

Demand Deposits

 

661,272

 

625,278

Other Liabilities

 

12,902

 

7,494

Shareholders' Equity

 

70,039

 

72,205

Total liabilities and shareholder's equity

$

1,249,688

$

1,165,177

 

Net Interest Spread

$

17,827

2.74

%

$

13,898

2.27

%

Net Interest Margin

3.03

%

2.52

%

 

Total Deposits

$

1,116,072

$

325

0.06

%

$

1,065,595

$

583

0.11

%

Total Funding Costs

$

1,166,747

$

1,265

0.22

%

$

1,085,478

$

955

0.18

%

 

(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005290/en/

Contacts

Bancorp Contact
Mr. Ivo A. Tjan, CEO
Ms. Leeann Cochran, CFO
Telephone: (866) 521-CWBK
E-mail: InvestorRelations@cwbk.com
Website: www.cwbk.com
"Bank on the Difference"