CommerceWest Bank ( OTCBB: CWBK) reported net income for the three months ended June 30, 2013 of $1,388,000 or $0.31 per common share, compared with net income of $1,015,000 or $0.23 per common share for the three months ended June 30, 2012, an EPS increase of 35%. Net income for the six months ended June 30, 2013 was $2,910,000 or $0.65 per common share, compared with net income of $1,598,000 or $0.36 per common share for the six months ended June 30, 2012, an EPS increase of 81%.
Key Financial Results:
- Net income of $1.4 million, up 37% for the quarter
- Net interest income of $2.8 million, up 13% for the quarter
- Net interest margin of 4.02%, up 8% for the quarter
- Revenue increase of 22% year-to-date
- Net income of $2.9 million, up 82% year-to-date
- Diluted EPS of $0.65, up 81% year-to-date
- Return on average assets of 1.75%, an increase of 67% year-to-date
- Return on average equity of 11.38%, an increase of 65% year-to-date
- Loan growth $24 million, up 15%
- Non-interest bearing deposit growth of $35.9 million, up 37%
- Nonperforming assets as a percent of total assets of 0.11%
Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "We are pleased with the results for the quarter and year to date. The team has been able to reposition the balance sheet over the last several quarters, which resulted in increasing non-interest bearing deposits to 47% of total deposits, while expanding the net interest margin to 4.02% and reducing interest expense by 35%." Mr. Tjan continued, "The next phase of our strategy is to focus for the remainder of 2013 on growing loans, deposits and assets. With our proven business model, strong asset quality and capital, the Bank is well positioned to execute this next part of our plan."
Total assets increased $11.1 million as of June 30, 2013, an increase of 3% as compared to the same period one year ago. Total loans increased $24 million as of June 30, 2013, an increase of 15% over the prior year. Cash and due from banks increased $9.2 million or 14% from the prior year. Total investment securities decreased $22.5 million or 27% from the prior year.