Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CW Bancorp Reports 2022 Full Year Record Earnings of $17.4 million up 22%, Record EPS of $5.00 up 27% and Record ROTE of 26.14% up 29% By: CW Bancorp via Business Wire January 26, 2023 at 09:20 AM EST CW Bancorp (OTCQX: CWBK), the parent company (“the Company”) of CommerceWest Bank (the “Bank”) reported consolidated net income for the fourth quarter of 2022 of $4,521,000 or $1.32 per diluted share as compared to $3,974,000 or $1.11 per diluted share for the fourth quarter of 2021, an EPS increase of 19%. The consolidated net income for the twelve months ended December 31, 2022 was $17,361,000 or $5.00 per diluted share as compared to $14,179,000 or $3.95 per diluted share for the twelve months ended December 31, 2021, an EPS increase of 27%. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230126005241/en/Corporate Headquarters located in Irvine, California (Photo: Business Wire) Key Financial Results for the three months ended December 31, 2022: EPS of $1.32 up 19% Net income of $4.5 million up 14% ROTE of 28.01% up 25% ROA of 1.60% up 36% Net interest income of $9.9 million up 31% Net interest margin of 3.74% up 58% Efficiency ratio of 41.76% ALLL to total loans ratio (net of PPP loans) of 1.38% 52 quarters of consecutive profits Key Financial Results for the twelve months ended December 31, 2022: Record net income of $17.4 million up 22% Record EPS of $5.00 up 27% ROTE of 26.14% up 29% ROA of 1.45% up 27% Net interest income of $37.3 million up 32% Net interest margin of 3.34% up 38% Efficiency ratio of 41.30% Mr. Ivo Tjan, Chairman and CEO commented, “The Company is proud to have achieved record earnings, EPS and ROTE in a period of aggressively rising interest rates and high inflation, while delivering a healthy dividend to our shareholders.” Mr. Tjan added, “We are prepared for a possible economic slowdown or recession by maintaining strong capital ratios and a fortress balance sheet, so we can continue to serve our clients and communities. Our team is also committed to continuously investing in our franchise and innovating to build long term shareholder value. Lastly, I want to thank our amazing employees who make it happen every day. Bank on the Difference!” Total asset increased $71.9 million as of December 31, 2022, an increase of 5% as compared to the same period one year ago. Total loans increased $26.9 million as of December 31, 2022, an increase of 4% over the prior year. Total loans net of PPP loans increased $76.2 million as of December 31, 2022, an increase of 11% as compared to the same period one year ago. Cash and due from banks increased $40.3 million or 10% from the prior year. Total investment securities decreased $1.9 million, a decrease of 1% from prior year. Total deposits increased $75.0 million as of December 31, 2022, an increase of 6% from December 31, 2021. Non-interest-bearing deposits decreased $115.2 million as of December 31, 2022, a decrease of 16% from the prior year. Interest-bearing deposits increased $190.3 million as of December 31, 2022, an increase of 36% over the prior year. Interest income was $11,768,000 for the three months ended December 31, 2022 as compared to $8,113,000 for the three months ended December 31, 2021, an increase of 45%. Interest expense was $1,877,000 for the three months ended December 31, 2022 as compared to $545,000 for the three months ended December 31, 2021, an increase of 244%. Interest expense was up for the quarter due to the rising cost of deposits as well as the cost of subordinated debt. Interest income was $41,320,000 for the twelve months ended December 31, 2022 as compared to $30,209,000 for the twelve months ended December 31, 2021, an increase of 37%. Interest expense was $3,997,000 for the twelve months ended December 31, 2022 as compared to $2,024,000 for the twelve months ended December 31, 2021, an increase of 97%. Net interest income for the three months ended December 31, 2022 was $9,891,000 compared to $7,568,000 for the three months ended December 31, 2021, an increase of 31%. The net interest margin increased for the three months ended December 31, 2022. It increased from 2.37% in 2021 to 3.74% in 2022, an increase of 58%. Net interest income for the twelve months ended December 31, 2022 was $37,323,000 compared to $28,185,000 for the twelve months ended December 31, 2021, an increase of 32%. The net interest margin increased for the twelve months ended December 31, 2022. It increased from 2.42% in 2021 to 3.34% in 2022, an increase of 38%. Provision for loan losses for the three months ended December 31, 2022 was $400,000 compared to $525,000 for the three months ended December 31, 2021. Provision for loan losses for the twelve months ended December 31, 2022 was $1,200,000 compared to $525,000 for the twelve months ended December 31, 2021. Non-interest income for the three months ended December 31, 2022 was $1,589,000 compared to $2,275,000 for the same period last year, a decrease of 30%. Non-interest income for the twelve months ended December 31, 2022 was $6,062,000 compared to $6,155,000 for the same period last year, a decrease of 2%. Non-interest expense for the three months ended December 31, 2022 was $4,835,000 compared to $4,232,000 for the same period last year, an increase of 14%. Non-interest expense for the twelve months ended December 31, 2022 was $18,083,000 compared to $15,220,000 for the same period last year, an increase of 19%. The efficiency ratio for the three months ended December 31, 2022 was 41.76% compared to 42.58% in 2021, which represents a decrease of 2%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2022, it costs $0.4176 to make it, as compared to $0.4258 one year ago. The efficiency ratio for the twelve months ended December 31, 2022 was 41.30% compared to 43.93% in 2021, which represents a decrease of 6%. Capital ratio for the Bank remain above the level required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2022, the tier 1 leverage ratio was 11.01%, the common equity tier 1 capital ratio was 15.57%, the tier 1 risk-based capital ratio was 15.57% and the total risk-based capital ratio was 16.82%. 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. FOURTH QUARTER REPORT - December 31, 2022 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Dec 31, 2022 Dec 31, 2021 (Decrease) ASSETS Cash and due from banks $ 438,433 $ 398,121 10 % Securities available for sale 124,682 150,523 -17 % Securities held-to-maturity 51,613 27,688 86 % Loans (PPP loans $4,527 and $53,818 at 2022 and 2021, respectively) 794,383 767,450 4 % Less allowance for loan losses (10,892 ) (9,710 ) 12 % Loans, net 783,491 757,740 3 % Bank premises and equipment, net 5,053 5,883 -14 % Other assets 34,574 25,970 33 % Total assets $ 1,437,846 $ 1,365,925 5 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 584,722 $ 699,968 -16 % Interest bearing deposits 719,348 529,082 36 % Total deposits 1,304,070 1,229,050 6 % Subordinated debenture 50,000 50,000 0 % Other liabilities 14,156 13,340 6 % 1,368,226 1,292,390 6 % Stockholders' equity 69,620 73,535 -5 % Total liabilities and stockholders' equity $ 1,437,846 $ 1,365,925 5 % Shares outstanding at end of period 3,314,358 3,437,891 Book value per share $ 24.57 $ 20.76 Total loans to total deposits 60.92 % 62.44 % ALLL to total loans (net of PPP loans) 1.38 % 1.36 % Nonperforming assets (non-accrual loans & OREO) $ 522 $ - COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 11.01 % 8.38 % Common equity tier 1 capital ratio 15.57 % 15.17 % Tier 1 risk-based capital ratio 15.57 % 15.17 % Total risk-based capital ratio 16.82 % 16.42 % CW BANCORP CONSOLIDATED STATEMENT OF INCOME (Unaudited) Three Months Ended Increase For the Twelve Months Ended Increase (dollars in thousands except share and per share data) Dec 31, 2022 Dec 31, 2021 (Decrease) Dec 31, 2022 Dec 31, 2021 (Decrease) INTEREST INCOME Loans $ 9,543 $ 6,865 39 % $ 34,566 $ 26,496 30 % Investments 1,173 917 28 % 4,343 2,490 74 % Fed funds sold and other 1,052 331 218 % 2,411 1,223 97 % Total interest income 11,768 8,113 45 % 41,320 30,209 37 % INTEREST EXPENSE Deposits 1,406 187 652 % 2,114 993 113 % Subordinated debenture 469 358 31 % 1,875 1,031 82 % Other borrowings 2 - 100 % 8 - 100 % Total interest expense 1,877 545 244 % 3,997 2,024 97 % NET INTEREST INCOME BEFORE LOAN LOSS PROVISION 9,891 7,568 31 % 37,323 28,185 32 % PROVISION FOR LOAN LOSSES 400 525 -24 % 1,200 525 129 % Non-interest income: NET INTEREST INCOME AFTER LOAN LOSS PROVISION 9,491 7,043 35 % 36,123 27,660 31 % NON-INTEREST INCOME Service Charges and Fees on Deposits 1,137 1,171 -3 % 4,475 4,447 1 % Gain on Sale of Loans - - - - (4 ) -100 % Other Fees 452 1,104 -59 % 1,587 1,712 -7 % NON-INTEREST EXPENSE 4,835 4,232 14 % 18,083 15,220 19 % EARNINGS BEFORE INCOME TAXES 6,245 5,086 23 % 24,102 18,595 30 % INCOME TAXES 1,724 1,112 55 % 6,741 4,416 53 % NET INCOME $ 4,521 $ 3,974 14 % $ 17,361 $ 14,179 22 % Basic earnings per share $ 1.36 $ 1.14 19 % $ 5.14 $ 4.03 27 % Diluted earnings per share $ 1.32 $ 1.11 19 % $ 5.00 $ 3.95 27 % Return on Assets 1.60 % 1.18 % 36 % 1.45 % 1.15 % 27 % Return on Equity 26.73 % 21.48 % 24 % 24.99 % 19.42 % 29 % Return on Tangible Equity 28.01 % 22.42 % 25 % 26.14 % 20.27 % 29 % Efficiency Ratio 41.76 % 42.58 % -2 % 41.30 % 43.93 % -6 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended Dec 31, 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 $ 96,413 $ 934 3.84 % $ 448,609 $ 263 0.23 % Investment Securities (1) 175,914 1,270 2.86 % 175,383 1,013 2.29 % Loans 782,021 9,543 4.84 % 653,534 6,865 4.17 % FHLB & Other Stocks 6,504 118 7.20 % 4,177 68 6.46 % Total interest-earning assets 1,060,852 11,865 4.44 % 1,281,703 8,209 2.54 % Noninterest-earning assets 59,420 57,401 Total assets $ 1,120,272 $ 1,339,104 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 382,777 $ 1,406 1.46 % 547,808 187 0.14 % Other Borrowings 283 2 2.80 % - - 0.00 % Subordinated Debenture 50,000 469 3.75 % 38,145 358 3.75 % Total interest-earning liabilities 433,060 1,877 1.72 % 585,953 545 0.37 % Noninterest-earning liabilities Demand Deposits 605,804 666,004 Other Liabilities 14,309 13,759 Shareholders' Equity 67,099 73,388 Total liabilities and shareholder's equity $ 1,120,272 $ 1,339,104 Net Interest Spread $ 9,988 2.72 % $ 7,664 2.17 % Net Interest Margin 3.74 % 2.37 % Total Deposits $ 988,581 $ 1,406 0.56 % $ 1,213,812 $ 187 0.06 % Total Funding Costs $ 1,038,864 $ 1,877 0.72 % $ 1,251,957 $ 545 0.17 % (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 Twelve Months Ended Dec 31, 2022 2021 AverageBalance InterestIncome /Expense Yield /Cost AverageBalance InterestIncome /Expense Yield /Cost (dollars in thousands) INTEREST EARNING ASSETS Int Bearing Due from Banks & FFS $ 154,008 $ 2,038 1.32 % $ 411,665 $ 1,027 0.25 % Investment Securities (1) 179,684 4,739 2.64 % 112,123 2,796 2.49 % Loans 791,090 34,566 4.37 % 651,329 26,496 4.07 % FHLB & Other Stocks 5,862 373 6.36 % 3,762 196 5.21 % Total interest-earning assets 1,130,644 41,716 3.69 % 1,178,879 30,515 2.59 % Noninterest-earning assets 64,021 56,104 Total assets $ 1,194,665 $ 1,234,983 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 421,452 $ 2,114 0.50 % $ 486,809 $ 993 0.20 % Other Borrowings 529 8 1.51 % 11 - 0.00 % Subordinated Debenture 50,000 1,875 3.75 % 27,592 1,031 3.74 % Total interest-earning liabilities 471,981 3,997 0.85 % 514,412 2,024 0.39 % Noninterest-earning liabilities Demand Deposits 639,800 636,171 Other Liabilities 13,415 11,407 Shareholders' Equity 69,469 72,993 Total liabilities and shareholder's equity $ 1,194,665 $ 1,234,983 Net Interest Spread $ 37,719 2.84 % $ 28,491 2.20 % Net Interest Margin 3.34 % 2.42 % Total Deposits $ 1,061,252 $ 2,114 0.20 % $ 1,122,980 $ 993 0.09 % Total Funding Costs $ 1,111,781 $ 3,997 0.36 % $ 1,150,583 $ 2,024 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/20230126005241/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" Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CW Bancorp Reports 2022 Full Year Record Earnings of $17.4 million up 22%, Record EPS of $5.00 up 27% and Record ROTE of 26.14% up 29% By: CW Bancorp via Business Wire January 26, 2023 at 09:20 AM EST CW Bancorp (OTCQX: CWBK), the parent company (“the Company”) of CommerceWest Bank (the “Bank”) reported consolidated net income for the fourth quarter of 2022 of $4,521,000 or $1.32 per diluted share as compared to $3,974,000 or $1.11 per diluted share for the fourth quarter of 2021, an EPS increase of 19%. The consolidated net income for the twelve months ended December 31, 2022 was $17,361,000 or $5.00 per diluted share as compared to $14,179,000 or $3.95 per diluted share for the twelve months ended December 31, 2021, an EPS increase of 27%. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230126005241/en/Corporate Headquarters located in Irvine, California (Photo: Business Wire) Key Financial Results for the three months ended December 31, 2022: EPS of $1.32 up 19% Net income of $4.5 million up 14% ROTE of 28.01% up 25% ROA of 1.60% up 36% Net interest income of $9.9 million up 31% Net interest margin of 3.74% up 58% Efficiency ratio of 41.76% ALLL to total loans ratio (net of PPP loans) of 1.38% 52 quarters of consecutive profits Key Financial Results for the twelve months ended December 31, 2022: Record net income of $17.4 million up 22% Record EPS of $5.00 up 27% ROTE of 26.14% up 29% ROA of 1.45% up 27% Net interest income of $37.3 million up 32% Net interest margin of 3.34% up 38% Efficiency ratio of 41.30% Mr. Ivo Tjan, Chairman and CEO commented, “The Company is proud to have achieved record earnings, EPS and ROTE in a period of aggressively rising interest rates and high inflation, while delivering a healthy dividend to our shareholders.” Mr. Tjan added, “We are prepared for a possible economic slowdown or recession by maintaining strong capital ratios and a fortress balance sheet, so we can continue to serve our clients and communities. Our team is also committed to continuously investing in our franchise and innovating to build long term shareholder value. Lastly, I want to thank our amazing employees who make it happen every day. Bank on the Difference!” Total asset increased $71.9 million as of December 31, 2022, an increase of 5% as compared to the same period one year ago. Total loans increased $26.9 million as of December 31, 2022, an increase of 4% over the prior year. Total loans net of PPP loans increased $76.2 million as of December 31, 2022, an increase of 11% as compared to the same period one year ago. Cash and due from banks increased $40.3 million or 10% from the prior year. Total investment securities decreased $1.9 million, a decrease of 1% from prior year. Total deposits increased $75.0 million as of December 31, 2022, an increase of 6% from December 31, 2021. Non-interest-bearing deposits decreased $115.2 million as of December 31, 2022, a decrease of 16% from the prior year. Interest-bearing deposits increased $190.3 million as of December 31, 2022, an increase of 36% over the prior year. Interest income was $11,768,000 for the three months ended December 31, 2022 as compared to $8,113,000 for the three months ended December 31, 2021, an increase of 45%. Interest expense was $1,877,000 for the three months ended December 31, 2022 as compared to $545,000 for the three months ended December 31, 2021, an increase of 244%. Interest expense was up for the quarter due to the rising cost of deposits as well as the cost of subordinated debt. Interest income was $41,320,000 for the twelve months ended December 31, 2022 as compared to $30,209,000 for the twelve months ended December 31, 2021, an increase of 37%. Interest expense was $3,997,000 for the twelve months ended December 31, 2022 as compared to $2,024,000 for the twelve months ended December 31, 2021, an increase of 97%. Net interest income for the three months ended December 31, 2022 was $9,891,000 compared to $7,568,000 for the three months ended December 31, 2021, an increase of 31%. The net interest margin increased for the three months ended December 31, 2022. It increased from 2.37% in 2021 to 3.74% in 2022, an increase of 58%. Net interest income for the twelve months ended December 31, 2022 was $37,323,000 compared to $28,185,000 for the twelve months ended December 31, 2021, an increase of 32%. The net interest margin increased for the twelve months ended December 31, 2022. It increased from 2.42% in 2021 to 3.34% in 2022, an increase of 38%. Provision for loan losses for the three months ended December 31, 2022 was $400,000 compared to $525,000 for the three months ended December 31, 2021. Provision for loan losses for the twelve months ended December 31, 2022 was $1,200,000 compared to $525,000 for the twelve months ended December 31, 2021. Non-interest income for the three months ended December 31, 2022 was $1,589,000 compared to $2,275,000 for the same period last year, a decrease of 30%. Non-interest income for the twelve months ended December 31, 2022 was $6,062,000 compared to $6,155,000 for the same period last year, a decrease of 2%. Non-interest expense for the three months ended December 31, 2022 was $4,835,000 compared to $4,232,000 for the same period last year, an increase of 14%. Non-interest expense for the twelve months ended December 31, 2022 was $18,083,000 compared to $15,220,000 for the same period last year, an increase of 19%. The efficiency ratio for the three months ended December 31, 2022 was 41.76% compared to 42.58% in 2021, which represents a decrease of 2%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2022, it costs $0.4176 to make it, as compared to $0.4258 one year ago. The efficiency ratio for the twelve months ended December 31, 2022 was 41.30% compared to 43.93% in 2021, which represents a decrease of 6%. Capital ratio for the Bank remain above the level required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2022, the tier 1 leverage ratio was 11.01%, the common equity tier 1 capital ratio was 15.57%, the tier 1 risk-based capital ratio was 15.57% and the total risk-based capital ratio was 16.82%. 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. FOURTH QUARTER REPORT - December 31, 2022 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Dec 31, 2022 Dec 31, 2021 (Decrease) ASSETS Cash and due from banks $ 438,433 $ 398,121 10 % Securities available for sale 124,682 150,523 -17 % Securities held-to-maturity 51,613 27,688 86 % Loans (PPP loans $4,527 and $53,818 at 2022 and 2021, respectively) 794,383 767,450 4 % Less allowance for loan losses (10,892 ) (9,710 ) 12 % Loans, net 783,491 757,740 3 % Bank premises and equipment, net 5,053 5,883 -14 % Other assets 34,574 25,970 33 % Total assets $ 1,437,846 $ 1,365,925 5 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 584,722 $ 699,968 -16 % Interest bearing deposits 719,348 529,082 36 % Total deposits 1,304,070 1,229,050 6 % Subordinated debenture 50,000 50,000 0 % Other liabilities 14,156 13,340 6 % 1,368,226 1,292,390 6 % Stockholders' equity 69,620 73,535 -5 % Total liabilities and stockholders' equity $ 1,437,846 $ 1,365,925 5 % Shares outstanding at end of period 3,314,358 3,437,891 Book value per share $ 24.57 $ 20.76 Total loans to total deposits 60.92 % 62.44 % ALLL to total loans (net of PPP loans) 1.38 % 1.36 % Nonperforming assets (non-accrual loans & OREO) $ 522 $ - COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 11.01 % 8.38 % Common equity tier 1 capital ratio 15.57 % 15.17 % Tier 1 risk-based capital ratio 15.57 % 15.17 % Total risk-based capital ratio 16.82 % 16.42 % CW BANCORP CONSOLIDATED STATEMENT OF INCOME (Unaudited) Three Months Ended Increase For the Twelve Months Ended Increase (dollars in thousands except share and per share data) Dec 31, 2022 Dec 31, 2021 (Decrease) Dec 31, 2022 Dec 31, 2021 (Decrease) INTEREST INCOME Loans $ 9,543 $ 6,865 39 % $ 34,566 $ 26,496 30 % Investments 1,173 917 28 % 4,343 2,490 74 % Fed funds sold and other 1,052 331 218 % 2,411 1,223 97 % Total interest income 11,768 8,113 45 % 41,320 30,209 37 % INTEREST EXPENSE Deposits 1,406 187 652 % 2,114 993 113 % Subordinated debenture 469 358 31 % 1,875 1,031 82 % Other borrowings 2 - 100 % 8 - 100 % Total interest expense 1,877 545 244 % 3,997 2,024 97 % NET INTEREST INCOME BEFORE LOAN LOSS PROVISION 9,891 7,568 31 % 37,323 28,185 32 % PROVISION FOR LOAN LOSSES 400 525 -24 % 1,200 525 129 % Non-interest income: NET INTEREST INCOME AFTER LOAN LOSS PROVISION 9,491 7,043 35 % 36,123 27,660 31 % NON-INTEREST INCOME Service Charges and Fees on Deposits 1,137 1,171 -3 % 4,475 4,447 1 % Gain on Sale of Loans - - - - (4 ) -100 % Other Fees 452 1,104 -59 % 1,587 1,712 -7 % NON-INTEREST EXPENSE 4,835 4,232 14 % 18,083 15,220 19 % EARNINGS BEFORE INCOME TAXES 6,245 5,086 23 % 24,102 18,595 30 % INCOME TAXES 1,724 1,112 55 % 6,741 4,416 53 % NET INCOME $ 4,521 $ 3,974 14 % $ 17,361 $ 14,179 22 % Basic earnings per share $ 1.36 $ 1.14 19 % $ 5.14 $ 4.03 27 % Diluted earnings per share $ 1.32 $ 1.11 19 % $ 5.00 $ 3.95 27 % Return on Assets 1.60 % 1.18 % 36 % 1.45 % 1.15 % 27 % Return on Equity 26.73 % 21.48 % 24 % 24.99 % 19.42 % 29 % Return on Tangible Equity 28.01 % 22.42 % 25 % 26.14 % 20.27 % 29 % Efficiency Ratio 41.76 % 42.58 % -2 % 41.30 % 43.93 % -6 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended Dec 31, 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 $ 96,413 $ 934 3.84 % $ 448,609 $ 263 0.23 % Investment Securities (1) 175,914 1,270 2.86 % 175,383 1,013 2.29 % Loans 782,021 9,543 4.84 % 653,534 6,865 4.17 % FHLB & Other Stocks 6,504 118 7.20 % 4,177 68 6.46 % Total interest-earning assets 1,060,852 11,865 4.44 % 1,281,703 8,209 2.54 % Noninterest-earning assets 59,420 57,401 Total assets $ 1,120,272 $ 1,339,104 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 382,777 $ 1,406 1.46 % 547,808 187 0.14 % Other Borrowings 283 2 2.80 % - - 0.00 % Subordinated Debenture 50,000 469 3.75 % 38,145 358 3.75 % Total interest-earning liabilities 433,060 1,877 1.72 % 585,953 545 0.37 % Noninterest-earning liabilities Demand Deposits 605,804 666,004 Other Liabilities 14,309 13,759 Shareholders' Equity 67,099 73,388 Total liabilities and shareholder's equity $ 1,120,272 $ 1,339,104 Net Interest Spread $ 9,988 2.72 % $ 7,664 2.17 % Net Interest Margin 3.74 % 2.37 % Total Deposits $ 988,581 $ 1,406 0.56 % $ 1,213,812 $ 187 0.06 % Total Funding Costs $ 1,038,864 $ 1,877 0.72 % $ 1,251,957 $ 545 0.17 % (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 Twelve Months Ended Dec 31, 2022 2021 AverageBalance InterestIncome /Expense Yield /Cost AverageBalance InterestIncome /Expense Yield /Cost (dollars in thousands) INTEREST EARNING ASSETS Int Bearing Due from Banks & FFS $ 154,008 $ 2,038 1.32 % $ 411,665 $ 1,027 0.25 % Investment Securities (1) 179,684 4,739 2.64 % 112,123 2,796 2.49 % Loans 791,090 34,566 4.37 % 651,329 26,496 4.07 % FHLB & Other Stocks 5,862 373 6.36 % 3,762 196 5.21 % Total interest-earning assets 1,130,644 41,716 3.69 % 1,178,879 30,515 2.59 % Noninterest-earning assets 64,021 56,104 Total assets $ 1,194,665 $ 1,234,983 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 421,452 $ 2,114 0.50 % $ 486,809 $ 993 0.20 % Other Borrowings 529 8 1.51 % 11 - 0.00 % Subordinated Debenture 50,000 1,875 3.75 % 27,592 1,031 3.74 % Total interest-earning liabilities 471,981 3,997 0.85 % 514,412 2,024 0.39 % Noninterest-earning liabilities Demand Deposits 639,800 636,171 Other Liabilities 13,415 11,407 Shareholders' Equity 69,469 72,993 Total liabilities and shareholder's equity $ 1,194,665 $ 1,234,983 Net Interest Spread $ 37,719 2.84 % $ 28,491 2.20 % Net Interest Margin 3.34 % 2.42 % Total Deposits $ 1,061,252 $ 2,114 0.20 % $ 1,122,980 $ 993 0.09 % Total Funding Costs $ 1,111,781 $ 3,997 0.36 % $ 1,150,583 $ 2,024 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/20230126005241/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"
CW Bancorp (OTCQX: CWBK), the parent company (“the Company”) of CommerceWest Bank (the “Bank”) reported consolidated net income for the fourth quarter of 2022 of $4,521,000 or $1.32 per diluted share as compared to $3,974,000 or $1.11 per diluted share for the fourth quarter of 2021, an EPS increase of 19%. The consolidated net income for the twelve months ended December 31, 2022 was $17,361,000 or $5.00 per diluted share as compared to $14,179,000 or $3.95 per diluted share for the twelve months ended December 31, 2021, an EPS increase of 27%. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230126005241/en/Corporate Headquarters located in Irvine, California (Photo: Business Wire) Key Financial Results for the three months ended December 31, 2022: EPS of $1.32 up 19% Net income of $4.5 million up 14% ROTE of 28.01% up 25% ROA of 1.60% up 36% Net interest income of $9.9 million up 31% Net interest margin of 3.74% up 58% Efficiency ratio of 41.76% ALLL to total loans ratio (net of PPP loans) of 1.38% 52 quarters of consecutive profits Key Financial Results for the twelve months ended December 31, 2022: Record net income of $17.4 million up 22% Record EPS of $5.00 up 27% ROTE of 26.14% up 29% ROA of 1.45% up 27% Net interest income of $37.3 million up 32% Net interest margin of 3.34% up 38% Efficiency ratio of 41.30% Mr. Ivo Tjan, Chairman and CEO commented, “The Company is proud to have achieved record earnings, EPS and ROTE in a period of aggressively rising interest rates and high inflation, while delivering a healthy dividend to our shareholders.” Mr. Tjan added, “We are prepared for a possible economic slowdown or recession by maintaining strong capital ratios and a fortress balance sheet, so we can continue to serve our clients and communities. Our team is also committed to continuously investing in our franchise and innovating to build long term shareholder value. Lastly, I want to thank our amazing employees who make it happen every day. Bank on the Difference!” Total asset increased $71.9 million as of December 31, 2022, an increase of 5% as compared to the same period one year ago. Total loans increased $26.9 million as of December 31, 2022, an increase of 4% over the prior year. Total loans net of PPP loans increased $76.2 million as of December 31, 2022, an increase of 11% as compared to the same period one year ago. Cash and due from banks increased $40.3 million or 10% from the prior year. Total investment securities decreased $1.9 million, a decrease of 1% from prior year. Total deposits increased $75.0 million as of December 31, 2022, an increase of 6% from December 31, 2021. Non-interest-bearing deposits decreased $115.2 million as of December 31, 2022, a decrease of 16% from the prior year. Interest-bearing deposits increased $190.3 million as of December 31, 2022, an increase of 36% over the prior year. Interest income was $11,768,000 for the three months ended December 31, 2022 as compared to $8,113,000 for the three months ended December 31, 2021, an increase of 45%. Interest expense was $1,877,000 for the three months ended December 31, 2022 as compared to $545,000 for the three months ended December 31, 2021, an increase of 244%. Interest expense was up for the quarter due to the rising cost of deposits as well as the cost of subordinated debt. Interest income was $41,320,000 for the twelve months ended December 31, 2022 as compared to $30,209,000 for the twelve months ended December 31, 2021, an increase of 37%. Interest expense was $3,997,000 for the twelve months ended December 31, 2022 as compared to $2,024,000 for the twelve months ended December 31, 2021, an increase of 97%. Net interest income for the three months ended December 31, 2022 was $9,891,000 compared to $7,568,000 for the three months ended December 31, 2021, an increase of 31%. The net interest margin increased for the three months ended December 31, 2022. It increased from 2.37% in 2021 to 3.74% in 2022, an increase of 58%. Net interest income for the twelve months ended December 31, 2022 was $37,323,000 compared to $28,185,000 for the twelve months ended December 31, 2021, an increase of 32%. The net interest margin increased for the twelve months ended December 31, 2022. It increased from 2.42% in 2021 to 3.34% in 2022, an increase of 38%. Provision for loan losses for the three months ended December 31, 2022 was $400,000 compared to $525,000 for the three months ended December 31, 2021. Provision for loan losses for the twelve months ended December 31, 2022 was $1,200,000 compared to $525,000 for the twelve months ended December 31, 2021. Non-interest income for the three months ended December 31, 2022 was $1,589,000 compared to $2,275,000 for the same period last year, a decrease of 30%. Non-interest income for the twelve months ended December 31, 2022 was $6,062,000 compared to $6,155,000 for the same period last year, a decrease of 2%. Non-interest expense for the three months ended December 31, 2022 was $4,835,000 compared to $4,232,000 for the same period last year, an increase of 14%. Non-interest expense for the twelve months ended December 31, 2022 was $18,083,000 compared to $15,220,000 for the same period last year, an increase of 19%. The efficiency ratio for the three months ended December 31, 2022 was 41.76% compared to 42.58% in 2021, which represents a decrease of 2%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2022, it costs $0.4176 to make it, as compared to $0.4258 one year ago. The efficiency ratio for the twelve months ended December 31, 2022 was 41.30% compared to 43.93% in 2021, which represents a decrease of 6%. Capital ratio for the Bank remain above the level required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2022, the tier 1 leverage ratio was 11.01%, the common equity tier 1 capital ratio was 15.57%, the tier 1 risk-based capital ratio was 15.57% and the total risk-based capital ratio was 16.82%. 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. FOURTH QUARTER REPORT - December 31, 2022 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Dec 31, 2022 Dec 31, 2021 (Decrease) ASSETS Cash and due from banks $ 438,433 $ 398,121 10 % Securities available for sale 124,682 150,523 -17 % Securities held-to-maturity 51,613 27,688 86 % Loans (PPP loans $4,527 and $53,818 at 2022 and 2021, respectively) 794,383 767,450 4 % Less allowance for loan losses (10,892 ) (9,710 ) 12 % Loans, net 783,491 757,740 3 % Bank premises and equipment, net 5,053 5,883 -14 % Other assets 34,574 25,970 33 % Total assets $ 1,437,846 $ 1,365,925 5 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 584,722 $ 699,968 -16 % Interest bearing deposits 719,348 529,082 36 % Total deposits 1,304,070 1,229,050 6 % Subordinated debenture 50,000 50,000 0 % Other liabilities 14,156 13,340 6 % 1,368,226 1,292,390 6 % Stockholders' equity 69,620 73,535 -5 % Total liabilities and stockholders' equity $ 1,437,846 $ 1,365,925 5 % Shares outstanding at end of period 3,314,358 3,437,891 Book value per share $ 24.57 $ 20.76 Total loans to total deposits 60.92 % 62.44 % ALLL to total loans (net of PPP loans) 1.38 % 1.36 % Nonperforming assets (non-accrual loans & OREO) $ 522 $ - COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 11.01 % 8.38 % Common equity tier 1 capital ratio 15.57 % 15.17 % Tier 1 risk-based capital ratio 15.57 % 15.17 % Total risk-based capital ratio 16.82 % 16.42 % CW BANCORP CONSOLIDATED STATEMENT OF INCOME (Unaudited) Three Months Ended Increase For the Twelve Months Ended Increase (dollars in thousands except share and per share data) Dec 31, 2022 Dec 31, 2021 (Decrease) Dec 31, 2022 Dec 31, 2021 (Decrease) INTEREST INCOME Loans $ 9,543 $ 6,865 39 % $ 34,566 $ 26,496 30 % Investments 1,173 917 28 % 4,343 2,490 74 % Fed funds sold and other 1,052 331 218 % 2,411 1,223 97 % Total interest income 11,768 8,113 45 % 41,320 30,209 37 % INTEREST EXPENSE Deposits 1,406 187 652 % 2,114 993 113 % Subordinated debenture 469 358 31 % 1,875 1,031 82 % Other borrowings 2 - 100 % 8 - 100 % Total interest expense 1,877 545 244 % 3,997 2,024 97 % NET INTEREST INCOME BEFORE LOAN LOSS PROVISION 9,891 7,568 31 % 37,323 28,185 32 % PROVISION FOR LOAN LOSSES 400 525 -24 % 1,200 525 129 % Non-interest income: NET INTEREST INCOME AFTER LOAN LOSS PROVISION 9,491 7,043 35 % 36,123 27,660 31 % NON-INTEREST INCOME Service Charges and Fees on Deposits 1,137 1,171 -3 % 4,475 4,447 1 % Gain on Sale of Loans - - - - (4 ) -100 % Other Fees 452 1,104 -59 % 1,587 1,712 -7 % NON-INTEREST EXPENSE 4,835 4,232 14 % 18,083 15,220 19 % EARNINGS BEFORE INCOME TAXES 6,245 5,086 23 % 24,102 18,595 30 % INCOME TAXES 1,724 1,112 55 % 6,741 4,416 53 % NET INCOME $ 4,521 $ 3,974 14 % $ 17,361 $ 14,179 22 % Basic earnings per share $ 1.36 $ 1.14 19 % $ 5.14 $ 4.03 27 % Diluted earnings per share $ 1.32 $ 1.11 19 % $ 5.00 $ 3.95 27 % Return on Assets 1.60 % 1.18 % 36 % 1.45 % 1.15 % 27 % Return on Equity 26.73 % 21.48 % 24 % 24.99 % 19.42 % 29 % Return on Tangible Equity 28.01 % 22.42 % 25 % 26.14 % 20.27 % 29 % Efficiency Ratio 41.76 % 42.58 % -2 % 41.30 % 43.93 % -6 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended Dec 31, 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 $ 96,413 $ 934 3.84 % $ 448,609 $ 263 0.23 % Investment Securities (1) 175,914 1,270 2.86 % 175,383 1,013 2.29 % Loans 782,021 9,543 4.84 % 653,534 6,865 4.17 % FHLB & Other Stocks 6,504 118 7.20 % 4,177 68 6.46 % Total interest-earning assets 1,060,852 11,865 4.44 % 1,281,703 8,209 2.54 % Noninterest-earning assets 59,420 57,401 Total assets $ 1,120,272 $ 1,339,104 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 382,777 $ 1,406 1.46 % 547,808 187 0.14 % Other Borrowings 283 2 2.80 % - - 0.00 % Subordinated Debenture 50,000 469 3.75 % 38,145 358 3.75 % Total interest-earning liabilities 433,060 1,877 1.72 % 585,953 545 0.37 % Noninterest-earning liabilities Demand Deposits 605,804 666,004 Other Liabilities 14,309 13,759 Shareholders' Equity 67,099 73,388 Total liabilities and shareholder's equity $ 1,120,272 $ 1,339,104 Net Interest Spread $ 9,988 2.72 % $ 7,664 2.17 % Net Interest Margin 3.74 % 2.37 % Total Deposits $ 988,581 $ 1,406 0.56 % $ 1,213,812 $ 187 0.06 % Total Funding Costs $ 1,038,864 $ 1,877 0.72 % $ 1,251,957 $ 545 0.17 % (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 Twelve Months Ended Dec 31, 2022 2021 AverageBalance InterestIncome /Expense Yield /Cost AverageBalance InterestIncome /Expense Yield /Cost (dollars in thousands) INTEREST EARNING ASSETS Int Bearing Due from Banks & FFS $ 154,008 $ 2,038 1.32 % $ 411,665 $ 1,027 0.25 % Investment Securities (1) 179,684 4,739 2.64 % 112,123 2,796 2.49 % Loans 791,090 34,566 4.37 % 651,329 26,496 4.07 % FHLB & Other Stocks 5,862 373 6.36 % 3,762 196 5.21 % Total interest-earning assets 1,130,644 41,716 3.69 % 1,178,879 30,515 2.59 % Noninterest-earning assets 64,021 56,104 Total assets $ 1,194,665 $ 1,234,983 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 421,452 $ 2,114 0.50 % $ 486,809 $ 993 0.20 % Other Borrowings 529 8 1.51 % 11 - 0.00 % Subordinated Debenture 50,000 1,875 3.75 % 27,592 1,031 3.74 % Total interest-earning liabilities 471,981 3,997 0.85 % 514,412 2,024 0.39 % Noninterest-earning liabilities Demand Deposits 639,800 636,171 Other Liabilities 13,415 11,407 Shareholders' Equity 69,469 72,993 Total liabilities and shareholder's equity $ 1,194,665 $ 1,234,983 Net Interest Spread $ 37,719 2.84 % $ 28,491 2.20 % Net Interest Margin 3.34 % 2.42 % Total Deposits $ 1,061,252 $ 2,114 0.20 % $ 1,122,980 $ 993 0.09 % Total Funding Costs $ 1,111,781 $ 3,997 0.36 % $ 1,150,583 $ 2,024 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/20230126005241/en/
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"
