CWBK CW Bancorp (QX)

CommerceWest Bank (OTCBB: CWBK) reported net income for the three months ended June 30, 2014 of $1,421,000 or $0.32 per common share, compared with net income of $1,388,000 or $0.31 per common share for the three months ended June 30, 2013, an EPS increase of 3%. Net income for the six months ended June 30, 2014 was $2,524,000 or $0.57 per common share, compared with net income of $2,910,000 or $0.65 per common share for the six months ended June 30, 2013, an EPS decrease of 12%.

Ivo A. Tjan, Chairman & CEO (Photo: Business Wire)

Key Financial Results:

• Net income of $1.4 million, up 2% for the quarter
• Net interest income of $3.5 million, up 27% for the quarter
• Net interest margin of 4.42% for the quarter, up from 4.02%, an increase of 10%
• Total asset growth of $40 million, up 12%
• Loan growth $75 million, up 40%
• Non-interest bearing deposit growth of $26 million, up 20%
• Zero nonperforming assets

Mr. Ivo Tjan, Chairman and CEO, said, "The team continues to deliver on executing our proven business model and strategic growth plans. We have remained confident in our ability to reposition the balance sheet, improve our net interest income, while increasing our market share with quality profitable banking relationships and deepening existing client relationships." Mr. Tjan continued, "With our strong results in the second quarter, we plan to make further investments in our infrastructure and add additional team members to expand our market presence in Southern California."

Total assets increased $40 million as of June 30, 2014, an increase of 12% as compared to the same period one year ago. Total loans increased $75 million as of June 30, 2014, an increase of 40% over the prior year. Cash and due from banks decreased $21.4 million or 28% from the prior year. Total investment securities decreased $13.7 million or 22% from the prior year.

Total deposits increased $24.8 million as of June 30, 2014, an increase of 9% from June 30, 2013. Non-interest bearing deposits grew $25.9 million as of June 30, 2014, an increase of 20% over the prior year. Non-interest bearing deposits as a percent of total deposits were 52% as of June 30, 2014 as compared to 47% one year ago.

Stockholders’ equity on June 30, 2014 was $53.6 million, an increase of 3% as compared to stockholders’ equity of $52.1 million a year ago.

Interest income was $3,858,000 for the quarter ended June 30, 2014 as compared to $3,191,000 for the quarter ended June 30, 2013, an increase of 21%. Interest expense was $304,000 for the quarter ended June 30, 2014 as compared to $383,000 for the quarter ended June 30, 2013, a decrease of 21%. Interest income was $7,463,000 for the six months ended June 30, 2014 as compared to $6,394,000 for the six months ended June 30, 2013, an increase of 17%. Interest expense was $624,000 for the six months ended June 30, 2014 as compared to $793,000 for the six months ended June 30, 2013, a decrease of 21%.

Net interest income for the three months ended June 30, 2014 was $3,554,000 as compared to $2,808,000 for the three months ended June 30, 2013, an increase of 27%. The net interest margin increased for the second quarter of 2014, which increased from 4.02% in 2013 to 4.42% in 2014, an increase of 10%. Net interest income for the six months ended June 30, 2014 was $6,839,000 as compared to $5,601,000 for the six months ended June 30, 2013, an increase of 22%. The net interest margin increased for the six months ended June 30, 2014. It increased from 4.00% in 2013 to 4.37% in 2014, an increase of 9%.

Provision for loan losses for the three months ended June 30, 2014 was $265,000 compared to $50,000 for the three months ended June 30, 2013, an increase of 430%. Provision for loan losses for the six months ended June 30, 2014 was $330,000 compared to $210,000 for the six months ended June 30, 2013, an increase of 57%.

Non-interest income for the three months ended June 30, 2014 was $932,000 compared to $1,609,000 for the same period last year, a decrease of 42%. Non-interest income for the six months ended June 30, 2014 was $1,542,000 compared to $3,174,000 for the same period last year, a decrease of 51%.

Non-interest expense for the three months ended June 30, 2014 was $2,800,000 compared to $2,979,000 for the same period last year, a decrease of 6%. Non-interest expense for the six months ended June 30, 2014 was $5,527,000 compared to $5,655,000 for the same period last year, a decrease of 2%.

The Bank’s efficiency ratio for the three months ended June 30, 2014 was 64.73% compared to 67.11% in 2013, which represents a decrease of 4%. The Bank’s efficiency ratio for the six months ended June 30, 2014 was 66.33% compared to 62.95% in 2013, which represents an increase of 5%. The efficiency ratio illustrates, that for every dollar the Bank made for the six month period ending June 30, 2014, the Bank spent $0.66 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 June 30, 2014, the leverage ratio was 13.06%, the tier 1 capital ratio was 17.21%, and the total risk-based capital ratio was 18.43%.

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 servicing clients in Orange County, Riverside County, Los Angeles County and San Diego 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.

SECOND QUARTER REPORT - JUNE 30, 2014 (Unaudited)                     BALANCE SHEET Increase (dollars in thousands) June 30, 2014   June 30, 2013 (Decrease)   ASSETS Cash and due from banks 54,267 75,648 -28 % Securities 47,760 61,467 -22 % Loans 263,028 188,053 40 % Less allowance for loan losses (3,299 ) (3,011 ) 10 % Loans, net 259,729 185,042 40 %   Bank premises and equipment, net 570 497 15 % Other assets 16,604   16,098   3 % Total assets 378,930   338,752   12 %   LIABILITIES AND STOCKHOLDERS' EQUITY Non-interesting bearing deposits 157,761 131,800 20 % Interest bearing deposits 148,497   149,626   -1 % Total deposits 306,258 281,426 9 % Total borrowings 16,500 Other liabilities 2,606   5,245   -50 % 325,364 286,671 13 % Stockholders' equity 53,566   52,081   3 % Total liabilities and stockholders' equity 378,930   338,752   12 %   CAPITAL RATIOS: Tier 1 leverage ratio 13.06 % 14.32 % -9 % Tier 1 risk-based capital ratio 17.21 % 21.17 % -19 % Total risk-based capital ratio 18.43 % 22.42 % -18 %             STATEMENT OF EARNINGS   Three Months Ended   Increase (dollars in thousands except share and per share data) June 30, 2014   June 30, 2013 (Decrease)   Interest income 3,858 3,191 21 % Interest expense   304     383   -21 % Net interest income 3,554 2,808 27 % Provision for loan losses 265 50 430 % Non-interest income 932 1,609 -42 % Non-interest expense   2,800     2,979   -6 % Earnings before income taxes 1,421 1,388 2 % Income taxes   -     -   0 % Net income   1,421     1,388   2 %   Basic earnings per share $ 0.34 $ 0.32 6 % Diluted earnings per share $ 0.32 $ 0.31 3 % Return on Assets (annualized) 1.51 % 1.67 % -10 % Return on Equity (annualized) 10.52 % 10.60 % -1 % Efficiency Ratio 64.73 % 67.11 % -4 % Net Interest Margin 4.42 % 4.02 % 10 %

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140728005149/en/

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