CommerceWest Bank (OTCBB: CWBK) reported earnings for the three months ended June 30, 2012 of $1,016,000 or $0.24 per basic common share and $0.23 per diluted common share, compared with net income of $343,000 or $0.08 per basic common share and $0.08 per diluted common share for the three months ended June 30, 2011, an increase of 200% and 188% respectively. The bank reported earnings for the six months ended June 30, 2012 of $1,598,000 million or $0.37 per basic common share and $0.36 per diluted common share, compared with net income of $725,000 or $0.16 per basic common share and $0.16 per diluted common share for the six months ended June 30, 2011, an increase of 131% and 125% respectively.
Financial performance highlights for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011:
- Earnings growth of 195%
- Return on average assets of 1.30%, an increase of 189%
- Non-interest income growth of 79%
- Non-interest expense reduction of 10%
- Cost of funds reduced 22%
- Loan growth of 19%
- Nonperforming assets reduced 75%, from 1.40% to 0.34% of total assets
- Non-interest bearing deposit growth of 30%
- A fortress balance sheet, with a tier 1 leverage ratio of 13.38% and total risk based capital ratio of 22.07%
- No TARP
Financial performance highlights for the three months ended June 30, 2012 as compared to the three months ended March 31, 2012:
- Earnings growth of 74%
- Non-interest income growth of 19%
- Non-interest expense reduction of 8%
- Nonperforming assets reduced 57%, from 0.83% to 0.34% of total assets
- Asset growth of 5%
- Loan growth of 8%
- Non-interest bearing deposit growth of 12%
- Total deposit growth of 7%
Mr. Ivo Tjan, Chairman and CEO stated, "The team has again demonstrated the strength of our business model, core competency and ability to grow with profitability. Our team members are talented, passionate and will continue the mission to build the best business banking franchise in California. Our proven business model has allowed us to materially improve asset quality, while at the same time growing core deposits and total loans. The Bank continues to execute on our strategic approach of balancing between offense and defense, which resulted in a 75% reduction in non-performing assets, 19% growth in loans, a 30% increase in non-interest bearing deposits and a 37% increase in non-interest income year over year; while at the same time reducing non-interest expense by 11%. Our results for the second quarter were highlighted by strong earnings growth of 195% as compared to the same three month period one year ago and 120% earnings growth for the six months ended June 30, 2012, as compared to the same six month period one year ago."
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