CBOA Financial, Inc. Reports Consolidated Earnings of $650,000 in 1Q 2022
05/02/2022 - 03:21 PM
TUCSON, Ariz. , May 2, 2022 /PRNewswire/ -- CBOA Financial, Inc. (OTCMKTS:CBOF) (the "Company"), parent company of Commerce Bank of Arizona (the "Bank" or "CBAZ"), announced that consolidated net income for quarter ending March 31, 2022 increased 19% to $650 thousand , from $548 thousand in the fourth quarter of last year.
Chris Webster , President and CEO stated, "We are pleased to start fiscal 2022 with an exceptionally strong quarter. Pre-tax earnings of $878 thousand was 16.3% above the same quarter last year. Our lending team continues to take advantage of the positive economic conditions in the Phoenix and Tucson metropolitan markets." He further added, "The Bank's robust liquidity position allows us to fund loan growth at record low cost levels. As a result, CBAZ's Net Interest Margin remains among the highest of our peers." Webster also commented, "Credit quality and customer performance are areas of focus as monitor the challenges of inflationary pressures and increasing interest rates."
First Quarter 2022 Highlights
$32 million in new loans funded during the quarterNon-Interest Income increased 265% compared to last quarter Interest expense decreased by 50% compared to Q1 2021 Operational Highlights
Non-Interest income during the quarter was aided by sales of several SBA loans to the secondary market, bolstering net income by $357 thousand .
The Bank continues to make progress on its legacy classified assets. Year-over-year, non-performing assets which include loans and OREO are down 50% from $2.6 million or 0.77% of assets to $1.2 million or 0.37% of assets.
Balance Sheet
Total assets increased by 3% to $354.9 million during the quarter ended March 31, 2022 but decreased 2.9% compared to $365.5 million a year ago.
Gross loans increased $6.9 million since fourth quarter 2021, ending the first quarter 2022 at $237 million . Total deposits increased by 4.2% to $319 million during the quarter and increased 4.4% compared to $305 million a year ago.
The allowance for loan losses totaled $3.43 million at March 2022 , or 1.44% of loans, unchanged from the previous quarter.
Shareholders' equity decreased to $27.0 million at March 31, 2022 , from $29.2 million the preceding quarter due to an increase in unrealized losses on securities. At March 31, 2022 , tangible book value was $2.89 per share compared to $3.12 per share at December 31, 2021 and $3.02 per share a year ago. The Bank's March 31, 2022 Tier 1 Leverage ratio was 9.72% , compared to 8.41% at March 31, 2021 .
Capital Management
Capital ratios exceeded regulatory guidelines for a well-capitalized institution under Basel III and Dodd Frank Wall Street Reform requirements at March 31, 2022 as well as during the fourth quarter of 2021. 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
3/31/2022
12/31/2021
3/31/2021
3/31/2022
3/31/2021
Summary Income Data
Interest Income
3,308
3,453
3,486
3,308
3,486
Interest expense
140
131
278
140
278
Net Interest Income
3,168
3,322
3,208
3,168
3,208
Provision for (reduction in) loan losses
37
155
-
37
-
Non-interest income
452
124
70
452
70
Realized gains (losses) on sales of securities
-
-
-
-
-
Non-interest expense
2,705
2,377
2,523
2,705
2,523
Income (loss) before income taxes
878
914
755
878
755
Provision for income tax
228
366
212
228
212
Net Income
650
548
543
650
543
Per Share Data
Shares outstanding end-of-period
9,356
9,356
8,268
9,356
8,268
Earnings per common share ($'s)
0.07
0.06
0.07
0.07
0.07
Earnings per common share (Diluted) ($'s)
0.06
0.05
0.06
0.06
0.06
Cash dividend declared
-
-
-
-
-
Total shareholders' equity
27,024
29,197
25,000
27,024
25,000
Tangible Book value per share ($'s)
2.89
3.12
3.02
2.89
3.02
Selected Balance Sheet Data
Total assets
354,914
344,630
365,470
354,914
365,470
Securities available-for-sale
59,339
54,599
38,630
59,339
38,630
Loans
237,554
230,700
259,893
237,554
259,893
Allowance for loan losses
3,431
3,320
2,972
3,431
2,972
Deposits
318,580
305,694
305,012
318,580
305,012
Other borrowings
-
-
25,539
-
25,539
Shareholders' equity
27,024
29,197
25,000
27,024
25,000
Performance Ratios (%)
Return on avg shareholders' equity
9.62
7.56
8.16
9.62
8.16
Net interest margin (Bank)
3.83
4.02
3.83
3.83
3.83
Efficiency ratio (Bank)
74.72
69.07
75.25
74.72
75.25
Asset Quality Data (%)
Nonperforming assets to total assets
0.37
0.39
0.77
0.37
0.77
Reserve for loan losses to total loans
1.44
1.44
1.14
1.44
1.14
Net Charge-offs to avg loans for period
(0.03)
(0.01)
(0.03)
(0.03)
(0.03)
Regulatory Capital Ratios (%)
Common Equity Tier 1
12.16
12.62
12.24
12.16
12.24
Tier 1 risk-based capital ratio
12.16
12.62
12.24
12.16
12.24
Total risk-based capital ratio
13.41
13.87
13.49
13.41
13.49
Tier 1 leverage capital ratio
9.72
9.87
8.41
9.72
8.41
Contact:Chris Webster President & CEO 480-253-4511cwebster@commercebankaz.com
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SOURCE Commerce Bank of Arizona