CBOA Financial, Inc. Reports Consolidated Earnings of $1,005,000 in 3Q 2022
10/26/2022 - 05:45 PM
TUCSON, Ariz. Oct. 26, 2022 Arizona (the "Bank" or "CBAZ"), announced that consolidated net income for quarter ending September 30, 2022 increased 34% to $1 million $747 thousand
President and CEO Chris Webster stated, "Another solid performance for Commerce Bank of Arizona during the third quarter. Excellent net loan growth and the Bank's increasing net interest margin supported strong earnings growth." Webster also said, "Our customers continue to work through the challenges of inflation and the Fed's interest rising rate policy. We continue to maintain a sharp focus on portfolio management. The Bank's commercial loan portfolio performance metrics remain at very acceptable levels."
Third Quarter 2022 Highlights
$23 million Interest Income increased 15% compared to last quarter Non-Interest Income increased 22% compared to last quarter Operational Highlights Year-to-date net loan growth was $28.3 million 4.41% for the third quarter. The Efficiency Ratio also improved to 66.6% . Year-over-year, non-performing assets which includes OREO are down 87% from $1.5 million 0.4% of assets to $189 thousand 0.05% of assets.
Balance Sheet Total assets increased by 2.4% to $372.4 million September 30, 2022 , and increased 9.4% compared to $340.4 million
Gross loans increased $17.2 million $254 million 3.1% to $338 million 11.4% compared to $303 million
The Allowance for Loan Losses totaled $3.7 million September 2022 , or 1.46% of loans, up slightly from the previous quarter.
Shareholders' equity decreased to $26.5 million September 30, 2022 , from $26.6 million September 30, 2022 , tangible book value was $2.71 per share compared to $2.79 per share at June 30, 2022 and $2.96 per share a year ago. The Bank's September 2022 Tier 1 Leverage ratio was 9.40% , compared to 9.45% at September 30, 2021 .
Capital Management Capital ratios exceeded regulatory guidelines for a well-capitalized institution under Basel III and Dodd Frank Wall Street Reform requirements at September 30, 2022 as well as during the first and second quarters of 2022. Capital ratios are presented below.
About the Company Commerce Bank of Arizona, established in 2002 in Tucson, Arizona , is a full-service community bank that caters to small-to mid-sized businesses and real estate professionals. CBAZ offers commercial clients with a variety of services ranging from U.S. Small Business Administration (SBA) financing solutions, construction loans, and commercial real estate loans. CBOA Financial, Inc. is a single-bank holding company and parent of the Bank. The Company is traded over-the-counter as CBOF. For additional information, please visit: www.commercebankaz.com.
Forward-looking Statements This press release may include forward-looking statements about CBOA Financial, Inc. or Commerce Bank of Arizona . These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: competition, fluctuations in interest rates, dependency on key individuals, loan defaults, geographical concentration, litigation and changes in federal laws, regulations and interpretations thereof. All forward-looking statements included in this press release are based on information available at the time of the release, and CBOA Financial, Inc. and Commerce Bank of Arizona assume no obligation to update any forward-looking statement.
Unaudited Consolidated Summary Financial Information
Dollars in thousands - Unaudited
For the quarter ended
Year to Date
9/30/2022
6/30/2022
9/30/2021
9/30/2022
9/30/2021
Summary Income Data
Interest Income
4,134
3,608
3,884
11,050
10,670
Interest expense
174
148
174
462
674
Net Interest Income
3,960
3,460
3,710
10,588
9,996
Provision for (reduction in) loan losses
-
-
146
37
339
Non-interest income
106
87
74
645
228
Realized gains (losses) on sales of securities
-
-
2
-
2
Non-interest expense
2,709
2,540
2,424
7,954
7,388
Income (loss) before income taxes
1,357
1,007
1,214
3,242
2,499
Provision for income tax
352
260
704
840
152
Net Income
1,005
747
510
2,402
2,347
Per Share Data
Shares outstanding end-of-period
9,759
9,555
8,911
9,759
8,911
Earnings per common share ($'s)
0.10
0.08
0.06
0.25
0.26
Earnings per common share (Diluted) ($'s)
0.10
0.07
0.05
0.23
0.25
Cash dividend declared
-
-
-
-
-
Total shareholders' equity
26,461
26,641
28,233
26,461
28,233
Tangible Book value per share ($'s)
2.71
2.79
2.96
2.71
2.96
Selected Balance Sheet Data
Total assets
372,386
363,548
340,373
372,386
340,373
Securities available-for-sale
62,317
63,027
44,356
62,317
44,356
Loans
254,458
256,905
237,234
254,458
237,234
Allowance for loan losses
3,703
3,702
3,160
3,703
3,160
Deposits
337,631
327,574
302,994
337,631
302,994
Other borrowings
-
-
-
-
-
Shareholders' equity
26,461
26,641
28,233
26,461
28,233
Performance Ratios (%)
Return on avg shareholders' equity
15.09
11.22
9.20
10.56
9.20
Net interest margin (Bank)
4.41
4.02
4.01
4.11
4.01
Efficiency ratio (Bank)
66.63
71.61
71.06
70.81
71.06
Asset Quality Data (%)
Nonperforming assets to total assets
0.05
0.08
0.40
0.05
0.40
Reserve for loan losses to total loans
1.46
1.44
1.33
1.46
1.33
Net Charge-offs to avg loans for period
-
-
0.05
(0.14)
0.05
Regulatory Capital Ratios (%)
Common Equity Tier 1
11.57
11.30
12.90
11.57
12.90
Tier 1 risk-based capital ratio
11.57
11.30
12.90
11.57
12.90
Total risk-based capital ratio
12.82
12.55
14.12
12.82
14.12
Tier 1 leverage capital ratio
9.40
9.62
9.45
9.40
9.45
Contact:Chris Webster cwebster@commercebankaz.com
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SOURCE Commerce Bank of Arizona
