CWBK CW Bancorp (QX)

CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended March 31, 2014 of $1,103,000 or $0.25 per common share, compared with net income of $1,522,000 or $0.34 per common share for the three months ended March 31, 2013.

Key Financial Results:

• Net interest income of $3.3 million, up 18%
• Net interest margin of 4.31% up from 3.99%, an increase of 8%
• Total loan growth of $52.5 million, up 28%
• Non-interest bearing deposit growth of $49.6 million, up 40%
• Total deposit growth of $41.8 million, up 15%
• Zero non-performing assets

"We are pleased with the Bank's ability to continue to grow loans while maintaining strong asset quality," said Mr. Ivo Tjan, Chairman and CEO. "There was also continued growth in non-interest bearing deposits, which are up 40% year over year with a 54% non-interest bearing to total deposit ratio. We have the right business model, operate in the right market place and are optimistic about our ability to generate a higher level of profitability this year by adding quality assets to our balance sheet."

Total assets increased $43.8 million as of March 31, 2014, an increase of 13% as compared to the same period one year ago. Total loans increased $52.5 million as of March 31, 2014, an increase of 28% over the prior year. Cash and due from banks decreased $5.5 million or 8% from the prior year. Total investment securities decreased $2.9 million or 5% from the prior year.

Total deposits increased $41.8 million as of March 31, 2014, an increase of 15% from March 31, 2013. Non-interest bearing deposits grew $49.6 million as of March 31, 2014, an increase of 40% over the prior year. Non-interest bearing deposits as a percent of total deposits were 54% as of March 31, 2014 as compared to 44% one year ago.

Stockholders’ equity on March 31, 2014 was $53.8 million, an increase of 5% as compared to stockholders’ equity of $51.4 million a year ago.

Interest income was $3,605,000 for the three months ended March 31, 2014 as compared to $3,203,000 for the three months ended March 31, 2013, an increase of 13%. Interest expense was $320,000 for the three months ended March 31, 2014 as compared to $410,000 for the three months ended March 31, 2013, a decrease of 22%.

Net interest income for the three months ended March 31, 2014 was $3,285,000 as compared to $2,793,000 for the three months ended March 31, 2013, an increase of 18%. The net interest margin increased for the three months ended March 31, 2014. It increased from 3.99% in 2013 to 4.31% in 2014, an increase of 8%.

Provision for loan losses for the three months ended March 31, 2014 was $65,000 compared to $160,000 for the three months ended March 31, 2013, a decrease of 59%. As of March 31, 2014, the Bank had no loans 90 days past due and still accruing interest, no non-accrual loans and no OREO. The non-performing asset to total asset ratio was zero as of March 31, 2014.

Non-interest expense for the three months ended March 31, 2014 was $2,727,000 compared to $2,676,000 for the same period last year, an increase of 2%.

The Bank’s efficiency ratio for the three months ended March 31, 2014 was 67.99% compared to 60.14% in 2013, which represents an increase of 13%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending March 31, 2014, the Bank spent $0.68 to make it, as compared to $0.60 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, 2014, the leverage ratio was 13.52%, the tier 1 capital ratio was 17.95%, and the total risk-based capital ratio was 19.15%.

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 serving Orange County, Los Angeles County, San Diego County and Riverside 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 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.

  FIRST QUARTER REPORT - MARCH 31, 2014 (Unaudited)   BALANCE SHEET                   Increase (dollars in thousands) March 31, 2014 March 31, 2013 (Decrease)   ASSETS Cash and due from banks 63,023 68,491 -8 % Securities 61,280 64,188 -5 % Loans 243,027 190,511 28 % Less allowance for loan losses   (3,084 )   (3,201 ) -4 % Loans, net 239,943 187,310 28 %   Bank premises and equipment, net 494 461 7 % Other assets   16,330     16,775   -3 % Total assets   381,070     337,225   13 %   LIABILITIES AND STOCKHOLDERS' EQUITY Non-interesting bearing deposits 173,995 124,390 40 % Interest bearing deposits   150,726     158,553   -5 % Total deposits 324,721 282,943 15 % Other liabilities   2,516     2,922   -14 % 327,237 285,865 14 % Stockholders' equity   53,833     51,360   5 % Total liabilities and stockholders' equity   381,070     337,225   13 %   CAPITAL RATIOS: Tier 1 leverage ratio 13.52 % 13.67 % -1 % Tier 1 risk-based capital ratio 17.95 % 19.97 % -10 % Total risk-based capital ratio 19.15 % 21.23 % -10 %   Book Value $ 12.42 $ 11.53 8 %     STATEMENT OF EARNINGS       Three Months Ended       Increase (dollars in thousands except share and per share data) March 31, 2014       March 31, 2013 (Decrease)   Interest income 3,605 3,203 13 % Interest expense   320     410   -22 % Net interest income 3,285 2,793 18 % Provision for loan losses 65 160 -59 % Non-interest income 610 1,565 -61 % Non-interest expense   2,727     2,676   2 % Earnings before income taxes 1,103 1,522 -28 % Income taxes   -     -   0 % Net income   1,103     1,522   -28 %   Basic earnings per share $ 0.26 $ 0.35 -26 % Diluted earnings per share $ 0.25 $ 0.34 -26 % Return on Assets 1.23 % 1.84 % -33 % Return on Equity 8.31 % 12.19 % -32 % Efficiency Ratio 67.99 % 60.14 % 13 % Net Interest Margin 4.31 % 3.99 % 8 %

CommerceWest BankMr. Ivo A. Tjan, CEOMs. Leeann M. Cochran, CFOTelephone: 949-251-6959Facsimile: 949-251-6957E-mail: itjan@cwbk.com or lcochran@cwbk.comWebsite: www.cwbk.com"Bank on the Difference"