CommerceWest Bank (OTCBB:CWBK) reported earnings for the three months ended March 31, 2010 of $434,000 or $0.10 per basic common share and $0.10 per diluted common share, compared with net income of $320,000 or $0.10 per basic common share and $0.10 per diluted common share for the three months ended March 31, 2009.

Mr. Ivo Tjan, Chairman and CEO commented, “We are pleased with our 1 st quarter results and are remaining cautiously optimistic. 2010 will continue to present its challenges for businesses and the local economy as we begin to stabilize from this deep recession. The Bank will continue to conservatively reserve for loan losses throughout the year, until we absolutely see a strong recovery in the local markets. Our capital ratios remain very strong. The team is focused on risk management, asset quality and improving our efficiency ratio.”

Total assets increased $108.1 million as of March 31, 2010, an increase of 46% as compared to the same period one year ago. Total loans increased $62.9 million as of March 31, 2010, an increase of 45% over the prior year. Total deposits increased $99.3 million as of March 31, 2010, an increase of 52% from March 31, 2009. Stockholders’ equity on March 31, 2010 was $43.5 million, an increase of 26% as compared to stockholders’ equity of $34.5 million on March 31, 2009.

Interest income was $4,352,000 for the three months ended March 31, 2010 as compared to $3,474,000 for the three months ended March 31, 2009, an increase of 25%. Net interest income before provision for loan losses for the three months ended March 31, 2010 was $3,490,000, an increase of $652,000 or 23%, compared to the same period in 2009. This increase resulted from an $878,000 increase in interest income partially offset by a $226,000 increase in interest expense.

The net interest margin for the three months ended March 31, 2010 was 4.55% as compared to 5.17% for the three months ended March 31, 2009 a 62 basis point or 12% decrease. The Bank’s net interest margin for the fourth quarter of 2009 was 4.83%.

Provision for loan losses for the three months ended March 31, 2010 was $625,000 compared to $725,000 for the three months ended March 31, 2009, a decrease of 14%. The Bank’s allowance for loan losses as a percent of total loans was 2.20% on March 31, 2010 as compared to 1.93% on March 31, 2009, an increase of 14%.

Non-interest income for the three months ended March 31, 2010 was $558,000 compared to a loss of $36,000 for the same period last year. Non-interest expense for the three months ended March 31, 2010 was $2,740,000 compared to $1,590,000 for the same period last year, an increase of 72%.

The Bank’s efficiency ratio for the three months ended March 31, 2010 was 67.69% compared to 56.75% in 2009, which represents an increase of 19%. The efficiency ratio illustrates, that for every dollar the Bank made for the three month period ending March 31, 2010, the Bank spent $0.68 to make it, as compared to $0.57 one year ago.

Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of March 31, 2010, the leverage ratio, tier 1 capital ratio, and total risk-based capital ratio was 11.38%, 16.23% and 17.49%, respectively.

CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices in Orange County at 4685 MacArthur Court in Newport Beach, CA, in the Inland Empire at 1611 Pomona Road in Corona, CA, in Los Angeles at 19300 South Hamilton Avenue in Gardena, CA, and in San Diego at 338 Via Vera Cruz, San Marcos, CA. We offer a wide range of commercial banking services, including, concierge services, remote deposit solution, full-service internet banking, lines of credit, term loans, commercial real estate lending, SBA lending, full cash management and treasury management.

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.
     
FIRST QUARTER REPORT - MARCH 31, 2010 (Unaudited)            
       
BALANCE SHEET March 31, Increase
(dollars in thousands)   2010     2009   (Decrease)
 
ASSETS
Cash and due from banks 71,565 3,961 1707 %
Securities 48,162 58,813 -18 %
Federal funds sold - 23,625 -100 %
 
Loans 202,963 139,980 45 %
Less allowance for loan losses   (4,136 )   (2,699 ) 53 %
Loans, net 198,827 137,281 45 %
 
Bank premises and equipment, net 775 795 -3 %
Other assets   24,508     11,225   118 %
Total assets   343,837     235,700   46 %
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits 87,872 61,031 44 %
Interest bearing deposits   203,086     130,678   55 %
Total deposits 290,958 191,709 52 %
Total borrowings 6,500 9,000 -28 %
Other liabilities   2,833     475   496 %
300,291 201,184 49 %
Stockholders' equity   43,546     34,516   26 %
Total liabilities and stockholders' equity   343,837     235,700   46 %
                       
STATEMENT OF EARNINGS For the Three Months Ended Increase
(dollars in thousands except share and per share data) Mar 31, 2010 Mar 31, 2009 (Decrease)
 
Interest income 4,352 3,474 25 %
Interest expense   862     636   36 %
Net interest income 3,490 2,838 23 %
Provision for loan losses 625 725 -14 %
Other non-interest income 558 (36 ) 1650 %
Other non-interest expense   2,740     1,590   72 %
Earnings before income taxes 683 487 40 %
Income taxes   249     167   49 %
Net earnings   434     320   36 %
 
Basic earnings per share $ 0.10 $ 0.10 0 %
Diluted earnings per share $ 0.10 $ 0.10 0 %
 
 

FINANCIAL RATIOS:
Return on Assets (annualized) 0.51 % 0.54 % -6 %
Return on Equity (annualized) 4.06 % 3.75 % 8 %
Efficiency Ratio 67.69 % 56.75 % 19 %
Net Interest Margin 4.55 % 5.17 % -12 %
 

CAPITAL RATIOS:
Tier 1 leverage ratio 11.38 % 14.61 % -22 %
Tier 1 risk-based capital ratio 16.23 % 19.85 % -18 %
Total risk-based capital ratio 17.49 % 21.10 % -17 %
 

Copyright Business Wire 2010

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