CommerceWest Bank (OTCBB: CWBK) reported earnings for the three months ended September 30, 2011 of $279,000 or $0.07 per basic common share and $0.07 per diluted common share, compared with net income of $8,000 or $0.01 per basic common share and $0.01 per diluted common share for the three months ended September 30, 2010, an increase of 600%. Net income for the nine months ended September 30, 2011 was $1,004,000 or $0.23 per basic common share and $0.23 per diluted common share, compared with net income of $510,000 or $0.12 per basic common share and $0.12 per diluted common share for the nine months ended September 30, 2010, an increase of 92%.
Financial performance highlights for the nine months ended September 30, 2011:
- 97% increase in net income
- 31% increase in non-interest income
- Allowance for loan losses as a percent of CommerceWest Bank loans was 3.04%.
- A fortress balance sheet, with a tier 1 leverage ratio of 13.08% and total risk based capital ratio of 22.49%
- Nonaccrual loans as a percent of total assets are 0.57% down from 3.43% or 83% year over year
- Nonperforming assets as a percent of total assets are 1.55% down from 4.11% or 62% year over year
- Strong liquidity with $130 million in cash and liquid investment securities
- 3rd quarter write down of OREOs from bank acquisition of $515,000
Mr. Ivo Tjan, Chairman and CEO, commented, “Management is encouraged by the 2011 financial results for the Bank. The Bank has the right capital levels, revenue focus, cost control plan, and deployment strategy for excess liquidity. Recognizing and addressing asset quality issues early, positions the Bank for strong future earnings, which will in turn, improve shareholder value. Although the Bank significantly de-levered classified loans during the quarter, there has been an encouraging up-tick in loan demand. Asset quality has materially improved, especially compared to our local peer group.”