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 2023 Full Year Record Earnings of $17.6 million, Record EPS of $5.39 and Record ROA of 1.58% By: CW Bancorp via Business Wire January 31, 2024 at 08:00 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 2023 of $3,545,000 or $1.12 per diluted share as compared to $4,521,000 or $1.32 per diluted share for the fourth quarter of 2022, an EPS decrease of 15%. The consolidated net income for the twelve months ended December 31, 2023 was $17,611,000 or $5.39 per diluted share as compared to $17,361,000 or $5.00 per diluted share for the twelve months ended December 31, 2022, an EPS increase of 8%. Key Financial Results for the three months ended December 31, 2023: Interest Income of $12.9 million, up 10% Net interest margin of 3.88%, up 4% ALLL to total loans ratio of 1.59% Bank tier 1 leverage ratio of 12.09% and total risk-based capital ratio of 19.82% 56 quarters of consecutive profits Key Financial Results for the twelve months ended December 31, 2023: Record EPS of $5.39, up 8% Record net income of $17.6 million, up 1% Record ROA of 1.58%, up 9% Net interest income of $40.7 million, up 9% Net interest margin of 3.87%, up 16% No outstanding FRB or FHLB borrowings Mr. Ivo A. Tjan, Chairman and CEO, said, “Our Company produced strong 2023 financial results on the backdrop of a very challenging year for the banking industry. This is a testament to our team’s dedication and strategic initiatives. These numbers reflect our commitment to the business community and focus on creating shareholder value.” Total assets decreased 9% as compared to the same period one year ago. Total loans decreased 9% from the prior year. The Bank remains prudent and conservative about credit quality. As a result, the Bank did not add significantly to the portfolio in 2023. This gave management an opportunity to de-lever the Bank, rolling off higher cost funds and containing interest expense. Cash and due from banks decreased 12% from the prior year. Total investment securities decreased 8% from the prior year. Total deposits, as of December 31, 2023, decreased 11% from December 31, 2022. Non-interest-bearing deposits decreased 6% from the prior year. Interest bearing deposits decreased 15% from the prior year. Interest income was $12,964,000 for the three months ended December 31, 2023, as compared to $11,768,000 for the three months ended December 31, 2022, an increase of 10%. Interest expense was $3,167,000 for the three months ended December 31, 2023, as compared to $1,877,000 for the three months ended December 31, 2022, an increase of 69%. Interest expense was up for the quarter due to the continued rise in the cost of deposits. Interest income was $52,185,000 for the twelve months ended December 31, 2023, as compared to $41,320,000 for the twelve months ended December 31, 2022, an increase of 26%. Interest expense was $11,468,000 for the twelve months ended December 31, 2023, as compared to $3,997,000 for the twelve months ended December 31, 2022, an increase of 187%. Interest expense was up for the twelve months ended December 31, 2023 due to the rising cost of deposits. Net interest income, for the three months ended December 31, 2023, was $9,797,000 as compared to $9,891,000 for the three months ended December 31, 2022, a decrease of 1%. The net interest margin increased for the three months ended December 31, 2023. It increased from 3.74% in 2022 to 3.88% in 2023, an increase of 4%. Net interest income, for the twelve months ended December 31, 2023, was $40,717,000 compared to $37,323,000 for the twelve months ended December 31, 2022, an increase of 9%. The net interest margin increased for the twelve months ended December 31, 2023. It increased from 3.34% in 2022 to 3.87% in 2023, an increase of 16%. The Bank had no provision for credit losses during the three months ended December 31, 2023, compared to provision for credit losses of $400,000 for the three months ended December 31, 2022. Provision for credit losses for the twelve months ended December 31, 2023, was a negative $1,326,000 compared to provision for credit losses of $1,200,000 for the twelve months ended December 31, 2022. The negative provision for credit losses in 2023 was primarily due to a $3 million recovery on a previously charged off loan recognized in Q3 2023. The allowance for loan losses to total loans ratio increased from 1.37% as of December 31, 2022 to 1.59% as of December 31, 2023. Non-interest income, for the three months ended December 31, 2023, was $1,549,000 compared to $1,589,000 for the same period last year, a decrease of 3%. Non-interest income, for the twelve months ended December 31, 2023, was $6,381,000 compared to $6,062,000 for the same period last year, an increase of 5%. Non-interest expense, for the three months ended December 31, 2023, was $6,367,000 compared to $4,835,000 for the same period last year, an increase of 32%. Non-interest expense, for the twelve months ended December 31, 2023, was $24,087,000 compared to $18,083,000 for the same period last year, an increase of 33%. The efficiency ratio, for the three months ended December 31, 2023, was 55.82% compared to 41.76% in 2022, which represents an increase of 34%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2023, it cost $0.5582 to make it, as compared to $0.4176 one year ago. The efficiency ratio, for the twelve months ended December 31, 2023, was 50.14% compared to 41.30% in 2022, which represents an increase of 21%. Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of December 31, 2023, the tier 1 leverage ratio was 12.09%, the common equity tier 1 capital ratio was 18.56%, the tier 1 risk-based capital ratio was 18.56% and the total risk-based capital ratio was 19.82%. 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, 2023 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Dec 31, 2023 Dec 31, 2022 (Decrease) ASSETS Cash and due from banks $ 387,464 $ 438,433 -12 % Securities available for sale 110,812 124,682 -11 % Securities held-to-maturity 50,610 51,613 -2 % Loans 724,444 794,383 -9 % Less allowance for loan losses (11,533 ) (10,892 ) 6 % Loans, net 712,911 783,491 -9 % Bank premises and equipment, net 4,405 5,053 -13 % Other assets 35,567 34,574 3 % Total assets $ 1,301,769 $ 1,437,846 -9 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 548,149 $ 584,722 -6 % Interest bearing deposits 610,340 719,348 -15 % Total deposits 1,158,489 1,304,070 -11 % Subordinated debenture 50,000 50,000 0 % Other liabilities 14,419 14,156 2 % 1,222,908 1,368,226 -11 % Stockholders' equity 78,861 69,620 13 % Total liabilities and stockholders' equity $ 1,301,769 $ 1,437,846 -9 % Shares outstanding at end of period 3,096,360 3,314,358 Book value per share $ 28.41 $ 24.57 Total loans to total deposits 62.53 % 60.92 % ALLL to total loans 1.59 % 1.37 % Nonperforming assets (non-accrual loans & OREO) $ 4,144 $ 522 COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 12.09 % 11.01 % Common equity tier 1 capital ratio 18.56 % 15.57 % Tier 1 risk-based capital ratio 18.56 % 15.57 % Total risk-based capital ratio 19.82 % 16.82 % 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, 2023 Dec 31, 2022 (Decrease) Dec 31, 2023 Dec 31, 2022 (Decrease) INTEREST INCOME Loans $ 10,146 $ 9,543 6 % $ 40,017 $ 34,566 16 % Investments 1,109 1,173 -5 % 4,309 4,343 -1 % Fed funds sold and other 1,709 1,052 62 % 7,859 2,411 226 % Total interest income 12,964 11,768 10 % 52,185 41,320 26 % INTEREST EXPENSE Deposits 2,698 1,406 92 % 9,584 2,114 353 % Subordinated debenture 469 469 0 % 1,875 1,875 0 % Other borrowings - 2 -100 % 9 8 13 % Total interest expense 3,167 1,877 69 % 11,468 3,997 187 % NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION 9,797 9,891 -1 % 40,717 37,323 9 % PROVISION FOR CREDIT LOSSES - 400 -100 % (1,326 ) 1,200 -211 % Non-interest income: NET INTEREST INCOME AFTER CREDIT LOSS PROVISION 9,797 9,491 3 % 42,043 36,123 16 % NON-INTEREST INCOME Service Charges and Fees on Deposits 1,197 1,137 5 % 5,088 4,475 14 % Loss on Sale of AFS Securities - - - (166 ) - - Other Fees 352 452 -22 % 1,459 1,587 -8 % NON-INTEREST EXPENSE 6,367 4,835 32 % 24,087 18,083 33 % EARNINGS BEFORE INCOME TAXES 4,979 6,245 -20 % 24,337 24,102 1 % INCOME TAXES 1,434 1,724 -17 % 6,726 6,741 0 % NET INCOME $ 3,545 $ 4,521 -22 % $ 17,611 $ 17,361 1 % Basic earnings per share $ 1.13 $ 1.36 -17 % $ 5.46 $ 5.14 6 % Diluted earnings per share $ 1.12 $ 1.32 -15 % $ 5.39 $ 5.00 8 % Return on Assets 1.33 % 1.60 % -17 % 1.58 % 1.45 % 9 % Return on Equity 18.91 % 26.73 % -29 % 23.85 % 24.99 % -5 % Return on Tangible Equity 19.72 % 28.01 % -30 % 24.88 % 26.14 % -5 % Efficiency Ratio 55.82 % 41.76 % 34 % 50.14 % 41.30 % 21 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended December 31, 2023 2022 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 $ 114,418 $ 1,571 5.45 % $ 96,413 $ 934 3.84 % Investment Securities (1) 155,688 1,168 2.98 % 175,914 1,270 2.86 % Loans 729,798 10,146 5.52 % 782,021 9,543 4.84 % FHLB & Other Stocks 7,100 138 7.71 % 6,504 118 7.20 % Total interest-earning assets 1,007,004 13,023 5.13 % 1,060,852 11,865 4.44 % Noninterest-earning assets 53,211 59,420 Total assets $ 1,060,215 $ 1,120,272 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 377,481 $ 2,698 2.84 % $ 382,777 $ 1,406 1.46 % Other Borrowings - - - 283 2 2.80 % Subordinated Debenture 50,000 469 3.75 % 50,000 469 3.75 % Total interest-earning liabilities 427,481 3,167 2.94 % 433,060 1,877 1.72 % Noninterest-earning liabilities Demand Deposits 543,772 605,804 Other Liabilities 14,576 14,309 Shareholders' Equity 74,386 67,099 Total liabilities and shareholder's equity $ 1,060,215 $ 1,120,272 Net Interest Spread $ 9,856 2.19 % $ 9,988 2.72 % Net Interest Margin 3.88 % 3.74 % Total Deposits $ 921,253 $ 2,698 1.16 % $ 988,581 $ 1,406 0.56 % Total Funding Costs $ 971,253 $ 3,167 1.29 % $ 1,038,864 $ 1,877 0.72 % (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 December 31, 2023 2022 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 $ 141,213 $ 7,366 5.22 % $ 154,008 $ 2,038 1.32 % Investment Securities (1) 159,280 4,582 2.88 % 179,684 4,739 2.64 % Loans 751,757 40,017 5.32 % 791,090 34,566 4.37 % FHLB & Other Stocks 6,924 493 7.12 % 5,862 373 6.36 % Total interest-earning assets 1,059,174 52,458 4.95 % 1,130,644 41,716 3.69 % Noninterest-earning assets 56,858 64,021 Total assets $ 1,116,032 $ 1,194,665 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 399,390 $ 9,584 2.40 % $ 421,452 $ 2,114 0.50 % Other Borrowings 181 9 4.97 % 529 8 1.51 % Subordinated Debenture 50,000 1,875 3.75 % 50,000 1,875 3.75 % Total interest-earning liabilities 449,571 11,468 2.55 % 471,981 3,997 0.85 % Noninterest-earning liabilities Demand Deposits 578,427 639,800 Other Liabilities 14,191 13,415 Shareholders' Equity 73,843 69,469 Total liabilities and shareholder's equity $ 1,116,032 $ 1,194,665 Net Interest Spread $ 40,990 2.40 % $ 37,719 2.84 % Net Interest Margin 3.87 % 3.34 % Total Deposits $ 977,817 $ 9,584 0.98 % $ 1,061,252 $ 2,114 0.20 % Total Funding Costs $ 1,027,998 $ 11,468 1.12 % $ 1,111,781 $ 3,997 0.36 % (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/20240131142288/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 2023 Full Year Record Earnings of $17.6 million, Record EPS of $5.39 and Record ROA of 1.58% By: CW Bancorp via Business Wire January 31, 2024 at 08:00 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 2023 of $3,545,000 or $1.12 per diluted share as compared to $4,521,000 or $1.32 per diluted share for the fourth quarter of 2022, an EPS decrease of 15%. The consolidated net income for the twelve months ended December 31, 2023 was $17,611,000 or $5.39 per diluted share as compared to $17,361,000 or $5.00 per diluted share for the twelve months ended December 31, 2022, an EPS increase of 8%. Key Financial Results for the three months ended December 31, 2023: Interest Income of $12.9 million, up 10% Net interest margin of 3.88%, up 4% ALLL to total loans ratio of 1.59% Bank tier 1 leverage ratio of 12.09% and total risk-based capital ratio of 19.82% 56 quarters of consecutive profits Key Financial Results for the twelve months ended December 31, 2023: Record EPS of $5.39, up 8% Record net income of $17.6 million, up 1% Record ROA of 1.58%, up 9% Net interest income of $40.7 million, up 9% Net interest margin of 3.87%, up 16% No outstanding FRB or FHLB borrowings Mr. Ivo A. Tjan, Chairman and CEO, said, “Our Company produced strong 2023 financial results on the backdrop of a very challenging year for the banking industry. This is a testament to our team’s dedication and strategic initiatives. These numbers reflect our commitment to the business community and focus on creating shareholder value.” Total assets decreased 9% as compared to the same period one year ago. Total loans decreased 9% from the prior year. The Bank remains prudent and conservative about credit quality. As a result, the Bank did not add significantly to the portfolio in 2023. This gave management an opportunity to de-lever the Bank, rolling off higher cost funds and containing interest expense. Cash and due from banks decreased 12% from the prior year. Total investment securities decreased 8% from the prior year. Total deposits, as of December 31, 2023, decreased 11% from December 31, 2022. Non-interest-bearing deposits decreased 6% from the prior year. Interest bearing deposits decreased 15% from the prior year. Interest income was $12,964,000 for the three months ended December 31, 2023, as compared to $11,768,000 for the three months ended December 31, 2022, an increase of 10%. Interest expense was $3,167,000 for the three months ended December 31, 2023, as compared to $1,877,000 for the three months ended December 31, 2022, an increase of 69%. Interest expense was up for the quarter due to the continued rise in the cost of deposits. Interest income was $52,185,000 for the twelve months ended December 31, 2023, as compared to $41,320,000 for the twelve months ended December 31, 2022, an increase of 26%. Interest expense was $11,468,000 for the twelve months ended December 31, 2023, as compared to $3,997,000 for the twelve months ended December 31, 2022, an increase of 187%. Interest expense was up for the twelve months ended December 31, 2023 due to the rising cost of deposits. Net interest income, for the three months ended December 31, 2023, was $9,797,000 as compared to $9,891,000 for the three months ended December 31, 2022, a decrease of 1%. The net interest margin increased for the three months ended December 31, 2023. It increased from 3.74% in 2022 to 3.88% in 2023, an increase of 4%. Net interest income, for the twelve months ended December 31, 2023, was $40,717,000 compared to $37,323,000 for the twelve months ended December 31, 2022, an increase of 9%. The net interest margin increased for the twelve months ended December 31, 2023. It increased from 3.34% in 2022 to 3.87% in 2023, an increase of 16%. The Bank had no provision for credit losses during the three months ended December 31, 2023, compared to provision for credit losses of $400,000 for the three months ended December 31, 2022. Provision for credit losses for the twelve months ended December 31, 2023, was a negative $1,326,000 compared to provision for credit losses of $1,200,000 for the twelve months ended December 31, 2022. The negative provision for credit losses in 2023 was primarily due to a $3 million recovery on a previously charged off loan recognized in Q3 2023. The allowance for loan losses to total loans ratio increased from 1.37% as of December 31, 2022 to 1.59% as of December 31, 2023. Non-interest income, for the three months ended December 31, 2023, was $1,549,000 compared to $1,589,000 for the same period last year, a decrease of 3%. Non-interest income, for the twelve months ended December 31, 2023, was $6,381,000 compared to $6,062,000 for the same period last year, an increase of 5%. Non-interest expense, for the three months ended December 31, 2023, was $6,367,000 compared to $4,835,000 for the same period last year, an increase of 32%. Non-interest expense, for the twelve months ended December 31, 2023, was $24,087,000 compared to $18,083,000 for the same period last year, an increase of 33%. The efficiency ratio, for the three months ended December 31, 2023, was 55.82% compared to 41.76% in 2022, which represents an increase of 34%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2023, it cost $0.5582 to make it, as compared to $0.4176 one year ago. The efficiency ratio, for the twelve months ended December 31, 2023, was 50.14% compared to 41.30% in 2022, which represents an increase of 21%. Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of December 31, 2023, the tier 1 leverage ratio was 12.09%, the common equity tier 1 capital ratio was 18.56%, the tier 1 risk-based capital ratio was 18.56% and the total risk-based capital ratio was 19.82%. 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, 2023 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Dec 31, 2023 Dec 31, 2022 (Decrease) ASSETS Cash and due from banks $ 387,464 $ 438,433 -12 % Securities available for sale 110,812 124,682 -11 % Securities held-to-maturity 50,610 51,613 -2 % Loans 724,444 794,383 -9 % Less allowance for loan losses (11,533 ) (10,892 ) 6 % Loans, net 712,911 783,491 -9 % Bank premises and equipment, net 4,405 5,053 -13 % Other assets 35,567 34,574 3 % Total assets $ 1,301,769 $ 1,437,846 -9 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 548,149 $ 584,722 -6 % Interest bearing deposits 610,340 719,348 -15 % Total deposits 1,158,489 1,304,070 -11 % Subordinated debenture 50,000 50,000 0 % Other liabilities 14,419 14,156 2 % 1,222,908 1,368,226 -11 % Stockholders' equity 78,861 69,620 13 % Total liabilities and stockholders' equity $ 1,301,769 $ 1,437,846 -9 % Shares outstanding at end of period 3,096,360 3,314,358 Book value per share $ 28.41 $ 24.57 Total loans to total deposits 62.53 % 60.92 % ALLL to total loans 1.59 % 1.37 % Nonperforming assets (non-accrual loans & OREO) $ 4,144 $ 522 COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 12.09 % 11.01 % Common equity tier 1 capital ratio 18.56 % 15.57 % Tier 1 risk-based capital ratio 18.56 % 15.57 % Total risk-based capital ratio 19.82 % 16.82 % 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, 2023 Dec 31, 2022 (Decrease) Dec 31, 2023 Dec 31, 2022 (Decrease) INTEREST INCOME Loans $ 10,146 $ 9,543 6 % $ 40,017 $ 34,566 16 % Investments 1,109 1,173 -5 % 4,309 4,343 -1 % Fed funds sold and other 1,709 1,052 62 % 7,859 2,411 226 % Total interest income 12,964 11,768 10 % 52,185 41,320 26 % INTEREST EXPENSE Deposits 2,698 1,406 92 % 9,584 2,114 353 % Subordinated debenture 469 469 0 % 1,875 1,875 0 % Other borrowings - 2 -100 % 9 8 13 % Total interest expense 3,167 1,877 69 % 11,468 3,997 187 % NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION 9,797 9,891 -1 % 40,717 37,323 9 % PROVISION FOR CREDIT LOSSES - 400 -100 % (1,326 ) 1,200 -211 % Non-interest income: NET INTEREST INCOME AFTER CREDIT LOSS PROVISION 9,797 9,491 3 % 42,043 36,123 16 % NON-INTEREST INCOME Service Charges and Fees on Deposits 1,197 1,137 5 % 5,088 4,475 14 % Loss on Sale of AFS Securities - - - (166 ) - - Other Fees 352 452 -22 % 1,459 1,587 -8 % NON-INTEREST EXPENSE 6,367 4,835 32 % 24,087 18,083 33 % EARNINGS BEFORE INCOME TAXES 4,979 6,245 -20 % 24,337 24,102 1 % INCOME TAXES 1,434 1,724 -17 % 6,726 6,741 0 % NET INCOME $ 3,545 $ 4,521 -22 % $ 17,611 $ 17,361 1 % Basic earnings per share $ 1.13 $ 1.36 -17 % $ 5.46 $ 5.14 6 % Diluted earnings per share $ 1.12 $ 1.32 -15 % $ 5.39 $ 5.00 8 % Return on Assets 1.33 % 1.60 % -17 % 1.58 % 1.45 % 9 % Return on Equity 18.91 % 26.73 % -29 % 23.85 % 24.99 % -5 % Return on Tangible Equity 19.72 % 28.01 % -30 % 24.88 % 26.14 % -5 % Efficiency Ratio 55.82 % 41.76 % 34 % 50.14 % 41.30 % 21 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended December 31, 2023 2022 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 $ 114,418 $ 1,571 5.45 % $ 96,413 $ 934 3.84 % Investment Securities (1) 155,688 1,168 2.98 % 175,914 1,270 2.86 % Loans 729,798 10,146 5.52 % 782,021 9,543 4.84 % FHLB & Other Stocks 7,100 138 7.71 % 6,504 118 7.20 % Total interest-earning assets 1,007,004 13,023 5.13 % 1,060,852 11,865 4.44 % Noninterest-earning assets 53,211 59,420 Total assets $ 1,060,215 $ 1,120,272 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 377,481 $ 2,698 2.84 % $ 382,777 $ 1,406 1.46 % Other Borrowings - - - 283 2 2.80 % Subordinated Debenture 50,000 469 3.75 % 50,000 469 3.75 % Total interest-earning liabilities 427,481 3,167 2.94 % 433,060 1,877 1.72 % Noninterest-earning liabilities Demand Deposits 543,772 605,804 Other Liabilities 14,576 14,309 Shareholders' Equity 74,386 67,099 Total liabilities and shareholder's equity $ 1,060,215 $ 1,120,272 Net Interest Spread $ 9,856 2.19 % $ 9,988 2.72 % Net Interest Margin 3.88 % 3.74 % Total Deposits $ 921,253 $ 2,698 1.16 % $ 988,581 $ 1,406 0.56 % Total Funding Costs $ 971,253 $ 3,167 1.29 % $ 1,038,864 $ 1,877 0.72 % (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 December 31, 2023 2022 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 $ 141,213 $ 7,366 5.22 % $ 154,008 $ 2,038 1.32 % Investment Securities (1) 159,280 4,582 2.88 % 179,684 4,739 2.64 % Loans 751,757 40,017 5.32 % 791,090 34,566 4.37 % FHLB & Other Stocks 6,924 493 7.12 % 5,862 373 6.36 % Total interest-earning assets 1,059,174 52,458 4.95 % 1,130,644 41,716 3.69 % Noninterest-earning assets 56,858 64,021 Total assets $ 1,116,032 $ 1,194,665 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 399,390 $ 9,584 2.40 % $ 421,452 $ 2,114 0.50 % Other Borrowings 181 9 4.97 % 529 8 1.51 % Subordinated Debenture 50,000 1,875 3.75 % 50,000 1,875 3.75 % Total interest-earning liabilities 449,571 11,468 2.55 % 471,981 3,997 0.85 % Noninterest-earning liabilities Demand Deposits 578,427 639,800 Other Liabilities 14,191 13,415 Shareholders' Equity 73,843 69,469 Total liabilities and shareholder's equity $ 1,116,032 $ 1,194,665 Net Interest Spread $ 40,990 2.40 % $ 37,719 2.84 % Net Interest Margin 3.87 % 3.34 % Total Deposits $ 977,817 $ 9,584 0.98 % $ 1,061,252 $ 2,114 0.20 % Total Funding Costs $ 1,027,998 $ 11,468 1.12 % $ 1,111,781 $ 3,997 0.36 % (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/20240131142288/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 2023 of $3,545,000 or $1.12 per diluted share as compared to $4,521,000 or $1.32 per diluted share for the fourth quarter of 2022, an EPS decrease of 15%. The consolidated net income for the twelve months ended December 31, 2023 was $17,611,000 or $5.39 per diluted share as compared to $17,361,000 or $5.00 per diluted share for the twelve months ended December 31, 2022, an EPS increase of 8%. Key Financial Results for the three months ended December 31, 2023: Interest Income of $12.9 million, up 10% Net interest margin of 3.88%, up 4% ALLL to total loans ratio of 1.59% Bank tier 1 leverage ratio of 12.09% and total risk-based capital ratio of 19.82% 56 quarters of consecutive profits Key Financial Results for the twelve months ended December 31, 2023: Record EPS of $5.39, up 8% Record net income of $17.6 million, up 1% Record ROA of 1.58%, up 9% Net interest income of $40.7 million, up 9% Net interest margin of 3.87%, up 16% No outstanding FRB or FHLB borrowings Mr. Ivo A. Tjan, Chairman and CEO, said, “Our Company produced strong 2023 financial results on the backdrop of a very challenging year for the banking industry. This is a testament to our team’s dedication and strategic initiatives. These numbers reflect our commitment to the business community and focus on creating shareholder value.” Total assets decreased 9% as compared to the same period one year ago. Total loans decreased 9% from the prior year. The Bank remains prudent and conservative about credit quality. As a result, the Bank did not add significantly to the portfolio in 2023. This gave management an opportunity to de-lever the Bank, rolling off higher cost funds and containing interest expense. Cash and due from banks decreased 12% from the prior year. Total investment securities decreased 8% from the prior year. Total deposits, as of December 31, 2023, decreased 11% from December 31, 2022. Non-interest-bearing deposits decreased 6% from the prior year. Interest bearing deposits decreased 15% from the prior year. Interest income was $12,964,000 for the three months ended December 31, 2023, as compared to $11,768,000 for the three months ended December 31, 2022, an increase of 10%. Interest expense was $3,167,000 for the three months ended December 31, 2023, as compared to $1,877,000 for the three months ended December 31, 2022, an increase of 69%. Interest expense was up for the quarter due to the continued rise in the cost of deposits. Interest income was $52,185,000 for the twelve months ended December 31, 2023, as compared to $41,320,000 for the twelve months ended December 31, 2022, an increase of 26%. Interest expense was $11,468,000 for the twelve months ended December 31, 2023, as compared to $3,997,000 for the twelve months ended December 31, 2022, an increase of 187%. Interest expense was up for the twelve months ended December 31, 2023 due to the rising cost of deposits. Net interest income, for the three months ended December 31, 2023, was $9,797,000 as compared to $9,891,000 for the three months ended December 31, 2022, a decrease of 1%. The net interest margin increased for the three months ended December 31, 2023. It increased from 3.74% in 2022 to 3.88% in 2023, an increase of 4%. Net interest income, for the twelve months ended December 31, 2023, was $40,717,000 compared to $37,323,000 for the twelve months ended December 31, 2022, an increase of 9%. The net interest margin increased for the twelve months ended December 31, 2023. It increased from 3.34% in 2022 to 3.87% in 2023, an increase of 16%. The Bank had no provision for credit losses during the three months ended December 31, 2023, compared to provision for credit losses of $400,000 for the three months ended December 31, 2022. Provision for credit losses for the twelve months ended December 31, 2023, was a negative $1,326,000 compared to provision for credit losses of $1,200,000 for the twelve months ended December 31, 2022. The negative provision for credit losses in 2023 was primarily due to a $3 million recovery on a previously charged off loan recognized in Q3 2023. The allowance for loan losses to total loans ratio increased from 1.37% as of December 31, 2022 to 1.59% as of December 31, 2023. Non-interest income, for the three months ended December 31, 2023, was $1,549,000 compared to $1,589,000 for the same period last year, a decrease of 3%. Non-interest income, for the twelve months ended December 31, 2023, was $6,381,000 compared to $6,062,000 for the same period last year, an increase of 5%. Non-interest expense, for the three months ended December 31, 2023, was $6,367,000 compared to $4,835,000 for the same period last year, an increase of 32%. Non-interest expense, for the twelve months ended December 31, 2023, was $24,087,000 compared to $18,083,000 for the same period last year, an increase of 33%. The efficiency ratio, for the three months ended December 31, 2023, was 55.82% compared to 41.76% in 2022, which represents an increase of 34%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2023, it cost $0.5582 to make it, as compared to $0.4176 one year ago. The efficiency ratio, for the twelve months ended December 31, 2023, was 50.14% compared to 41.30% in 2022, which represents an increase of 21%. Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of December 31, 2023, the tier 1 leverage ratio was 12.09%, the common equity tier 1 capital ratio was 18.56%, the tier 1 risk-based capital ratio was 18.56% and the total risk-based capital ratio was 19.82%. 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, 2023 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Dec 31, 2023 Dec 31, 2022 (Decrease) ASSETS Cash and due from banks $ 387,464 $ 438,433 -12 % Securities available for sale 110,812 124,682 -11 % Securities held-to-maturity 50,610 51,613 -2 % Loans 724,444 794,383 -9 % Less allowance for loan losses (11,533 ) (10,892 ) 6 % Loans, net 712,911 783,491 -9 % Bank premises and equipment, net 4,405 5,053 -13 % Other assets 35,567 34,574 3 % Total assets $ 1,301,769 $ 1,437,846 -9 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 548,149 $ 584,722 -6 % Interest bearing deposits 610,340 719,348 -15 % Total deposits 1,158,489 1,304,070 -11 % Subordinated debenture 50,000 50,000 0 % Other liabilities 14,419 14,156 2 % 1,222,908 1,368,226 -11 % Stockholders' equity 78,861 69,620 13 % Total liabilities and stockholders' equity $ 1,301,769 $ 1,437,846 -9 % Shares outstanding at end of period 3,096,360 3,314,358 Book value per share $ 28.41 $ 24.57 Total loans to total deposits 62.53 % 60.92 % ALLL to total loans 1.59 % 1.37 % Nonperforming assets (non-accrual loans & OREO) $ 4,144 $ 522 COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 12.09 % 11.01 % Common equity tier 1 capital ratio 18.56 % 15.57 % Tier 1 risk-based capital ratio 18.56 % 15.57 % Total risk-based capital ratio 19.82 % 16.82 % 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, 2023 Dec 31, 2022 (Decrease) Dec 31, 2023 Dec 31, 2022 (Decrease) INTEREST INCOME Loans $ 10,146 $ 9,543 6 % $ 40,017 $ 34,566 16 % Investments 1,109 1,173 -5 % 4,309 4,343 -1 % Fed funds sold and other 1,709 1,052 62 % 7,859 2,411 226 % Total interest income 12,964 11,768 10 % 52,185 41,320 26 % INTEREST EXPENSE Deposits 2,698 1,406 92 % 9,584 2,114 353 % Subordinated debenture 469 469 0 % 1,875 1,875 0 % Other borrowings - 2 -100 % 9 8 13 % Total interest expense 3,167 1,877 69 % 11,468 3,997 187 % NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION 9,797 9,891 -1 % 40,717 37,323 9 % PROVISION FOR CREDIT LOSSES - 400 -100 % (1,326 ) 1,200 -211 % Non-interest income: NET INTEREST INCOME AFTER CREDIT LOSS PROVISION 9,797 9,491 3 % 42,043 36,123 16 % NON-INTEREST INCOME Service Charges and Fees on Deposits 1,197 1,137 5 % 5,088 4,475 14 % Loss on Sale of AFS Securities - - - (166 ) - - Other Fees 352 452 -22 % 1,459 1,587 -8 % NON-INTEREST EXPENSE 6,367 4,835 32 % 24,087 18,083 33 % EARNINGS BEFORE INCOME TAXES 4,979 6,245 -20 % 24,337 24,102 1 % INCOME TAXES 1,434 1,724 -17 % 6,726 6,741 0 % NET INCOME $ 3,545 $ 4,521 -22 % $ 17,611 $ 17,361 1 % Basic earnings per share $ 1.13 $ 1.36 -17 % $ 5.46 $ 5.14 6 % Diluted earnings per share $ 1.12 $ 1.32 -15 % $ 5.39 $ 5.00 8 % Return on Assets 1.33 % 1.60 % -17 % 1.58 % 1.45 % 9 % Return on Equity 18.91 % 26.73 % -29 % 23.85 % 24.99 % -5 % Return on Tangible Equity 19.72 % 28.01 % -30 % 24.88 % 26.14 % -5 % Efficiency Ratio 55.82 % 41.76 % 34 % 50.14 % 41.30 % 21 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended December 31, 2023 2022 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 $ 114,418 $ 1,571 5.45 % $ 96,413 $ 934 3.84 % Investment Securities (1) 155,688 1,168 2.98 % 175,914 1,270 2.86 % Loans 729,798 10,146 5.52 % 782,021 9,543 4.84 % FHLB & Other Stocks 7,100 138 7.71 % 6,504 118 7.20 % Total interest-earning assets 1,007,004 13,023 5.13 % 1,060,852 11,865 4.44 % Noninterest-earning assets 53,211 59,420 Total assets $ 1,060,215 $ 1,120,272 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 377,481 $ 2,698 2.84 % $ 382,777 $ 1,406 1.46 % Other Borrowings - - - 283 2 2.80 % Subordinated Debenture 50,000 469 3.75 % 50,000 469 3.75 % Total interest-earning liabilities 427,481 3,167 2.94 % 433,060 1,877 1.72 % Noninterest-earning liabilities Demand Deposits 543,772 605,804 Other Liabilities 14,576 14,309 Shareholders' Equity 74,386 67,099 Total liabilities and shareholder's equity $ 1,060,215 $ 1,120,272 Net Interest Spread $ 9,856 2.19 % $ 9,988 2.72 % Net Interest Margin 3.88 % 3.74 % Total Deposits $ 921,253 $ 2,698 1.16 % $ 988,581 $ 1,406 0.56 % Total Funding Costs $ 971,253 $ 3,167 1.29 % $ 1,038,864 $ 1,877 0.72 % (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 December 31, 2023 2022 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 $ 141,213 $ 7,366 5.22 % $ 154,008 $ 2,038 1.32 % Investment Securities (1) 159,280 4,582 2.88 % 179,684 4,739 2.64 % Loans 751,757 40,017 5.32 % 791,090 34,566 4.37 % FHLB & Other Stocks 6,924 493 7.12 % 5,862 373 6.36 % Total interest-earning assets 1,059,174 52,458 4.95 % 1,130,644 41,716 3.69 % Noninterest-earning assets 56,858 64,021 Total assets $ 1,116,032 $ 1,194,665 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 399,390 $ 9,584 2.40 % $ 421,452 $ 2,114 0.50 % Other Borrowings 181 9 4.97 % 529 8 1.51 % Subordinated Debenture 50,000 1,875 3.75 % 50,000 1,875 3.75 % Total interest-earning liabilities 449,571 11,468 2.55 % 471,981 3,997 0.85 % Noninterest-earning liabilities Demand Deposits 578,427 639,800 Other Liabilities 14,191 13,415 Shareholders' Equity 73,843 69,469 Total liabilities and shareholder's equity $ 1,116,032 $ 1,194,665 Net Interest Spread $ 40,990 2.40 % $ 37,719 2.84 % Net Interest Margin 3.87 % 3.34 % Total Deposits $ 977,817 $ 9,584 0.98 % $ 1,061,252 $ 2,114 0.20 % Total Funding Costs $ 1,027,998 $ 11,468 1.12 % $ 1,111,781 $ 3,997 0.36 % (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/20240131142288/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"
