CW Bancorp Reports 2024 Full Year Earnings of $13.1 million, EPS of $4.30, ROA of 1.19% and ROTE of 16.69%

Rhea-AI Summary

CW Bancorp (CWBK) reported Q4 2024 consolidated net income of $3.94 million ($1.30 per diluted share), up 11% from Q4 2023. Full-year 2024 net income was $13.15 million ($4.30 per diluted share), down from $17.61 million ($5.39 per diluted share) in 2023.

Key financial highlights include: loan growth of 9.5% ($68.6 million), deposit growth of 16% ($183.9 million), and total asset growth of 14.5% ($188.6 million). The bank maintained strong capital ratios with a tier 1 leverage ratio of 11.16% and total risk-based capital ratio of 17.92%.

The net interest margin slightly decreased to 3.81% in 2024 from 3.87% in 2023. Non-interest expense increased by 15% to $27.8 million, and the efficiency ratio rose to 59.97% from 50.14% in 2023.

Positive

• Q4 2024 EPS increased 16% year-over-year to $1.30
• Quarter-over-quarter net income growth of 26%
• Loan growth of 9.5% ($68.6 million)
• Deposit growth of 16% ($183.9 million)
• Total asset growth of 14.5% ($188.6 million)
• Strong capital ratios with tier 1 leverage at 11.16%

Negative

• Full-year 2024 EPS decreased 20% to $4.30 from $5.39
• Net interest margin declined from 3.87% to 3.81%
• Non-interest expense increased 15% to $27.8 million
• Efficiency ratio deteriorated to 59.97% from 50.14%
• Net interest income decreased 2% for full-year 2024

IRVINE, Calif., Jan. 31, 2025 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the fourth quarter of 2024 of $3,940,000 or $1.30 per diluted share as compared to $3,545,000 or $1.13 per diluted share for the fourth quarter of 2023, an EPS increase of 16%.  The consolidated net income for the twelve months ended December 31, 2024 was $13,148,000 or $4.30 per diluted share as compared to $17,611,000 or $5.39 per diluted share for the twelve months ended December 31, 2023, an EPS decrease of 20%.

Key Financial Results for the three months ended December 31, 2024:

• EPS of $1.30 up 16%
• Net income of $3.9 million up 11%
• Quarter over quarter net income growth of 26%
• Return on Assets of 1.31%
• Return on Tangible Equity of 18.95%
• Quarter over quarter loan growth of 5.46%
• Quarter over quarter deposit growth of 31%
• ACL to total loans ratio of 1.45%
• Liquid funds to total deposits ratio of 35%
• No outstanding FRB or FHLB borrowings
• Leverage ratio of 11.16% and total risk-based capital ratio of 17.92%
• 60 quarters of consecutive profits

Key Financial Results for the twelve months ended December 31, 2024:

• EPS of $4.30
• Net income of $13.1 million
• Return on Assets of 1.19%
• Return on Tangible Equity of 16.69%
• Loan growth of $68.6 million or 9.5%
• Deposit growth of $183.9 million or 16%
• Assets growth of $188.6 million or 14.5%

Mr. Ivo A. Tjan, Chairman and CEO said, "Our strong financial performance in 2024 reflects the power of our unique, client-centric business model.  With 9.5% loan growth, 16% deposit growth, and 14.5% total asset growth, we continue to demonstrate the value of customized financial solutions tailored to small and mid-sized businesses.  We also had solid net income growth quarter over quarter of 26% and 11% year over year."  He continued, "As we enter 2025, we remain cautiously optimistic despite ongoing economic headwinds, including persistent inflationary pressures.  Our ability to adapt and innovate positions us well for the future.  Most importantly, our success is made possible by our exceptional team of dedicated professionals who bring our mission to life every day.  Their expertise, commitment, and passion for serving the business community are what truly set us apart."    

Total assets increased $188.6 million as of December 31, 2024, an increase of 14.5% as compared to the same period one year ago. Total loans increased $68.6 million as of December 31, 2024, an increase of 9.5% from the prior year. Cash and due from banks increased $115.9 million or 30% over the prior year.  Total investment securities increased $4.1 million, an increase of 3% from the prior year.

Total deposits increased $183.9 million as of December 31, 2024, an increase of 16% from December 31, 2023. Non-interest-bearing deposits increased $65.7 million as of December 31, 2024, an increase of 12% from the prior year. Interest bearing deposits increased $118.2 million as of December 31, 2024, an increase of 19% from the prior year. 

Interest income was $14,750,000 for the three months ended December 31, 2024, as compared to $12,964,000 for the three months ended December 31, 2023, an increase of 14%. Interest expense was $3,714,000 for the three months ended December 31, 2024, as compared to $3,167,000 for the three months ended December 31, 2023, an increase of 17%.

Interest income was $54,190,000 for the twelve months ended December 31, 2024, as compared to $52,185,000 for the twelve months ended December 31, 2023, an increase of 4%. Interest expense was $14,241,000 for the twelve months ended December 31, 2024, as compared to $11,468,000 for the twelve months ended December 31, 2023, an increase of 24%.

Net interest income for the three months ended December 31, 2024, was $11,036,000 as compared to $9,797,000 for the three months ended December 31, 2023, an increase of 13%. The net interest margin decreased for the three months ended December 31, 2024.  It decreased to 3.86% in 2024 from 3.88% in 2023, a decrease of 1%.  Net interest income for the twelve months ended December 31, 2024, was $39,949,000 as compared to $40,717,000 for the twelve months ended December 31, 2023, a decrease of 2%. The net interest margin decreased for the twelve months ended December 31, 2024.  It decreased to 3.81% in 2024 from 3.87% in 2023, a decrease of 2%.

Provision for credit losses for the three months ended December 31, 2024, was $25,000 compared to zero provision for credit losses for the three months ended December 31, 2023. Provision for credit losses for the twelve months ended December 31, 2024, was $25,000 compared to a negative provision for credit losses of $1,326,000 for the twelve months ended December 31, 2023. This provision reversal was primarily due to a $3 million recovery on a previously charged off loan, which resulted in an overfunding of the allowance for credit losses that allowed the Bank to reverse provision expense during the twelve months ended December 31, 2023.

Non-interest income for the three months ended December 31, 2024, was $2,011,000 compared to $1,549,000 for the same period last year, an increase of 30%.  Non-interest income for the twelve months ended December 31, 2024, was $6,166,000 compared to $6,381,000 for the same period last year, a decrease of 3%. 

Non-interest expense for the three months ended December 31, 2024, was $7,617,000 compared to $6,367,000 for the same period last year, an increase of 20%. Non-interest expense for the twelve months ended December 31, 2024, was $27,798,000 compared to $24,087,000 for the same period last year, an increase of 15%.

The efficiency ratio for the three months ended December 31, 2024, was 58.12% compared to 55.82% in 2023, which represents an increase of 4%.  The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2024, it cost $0.5812 to make it, as compared to $0.5582 one year ago. The efficiency ratio for the twelve months ended December 31, 2024, was 59.97% compared to 50.14% in 2023, which represents an increase of 20%.

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2024, the tier 1 leverage ratio was 11.16%, the common equity tier 1 capital ratio was 16.67%, the tier 1 risk-based capital ratio was 16.67% and the total risk-based capital ratio was 17.92%.

CommerceWest Bank is determined to redefine banking for small and medium sized businesses by delivering on customized products and services.  Founded in 2001 and headquartered in Irvine, California, the Bank serves businesses throughout the state of California with our digital banking platform.   By employing a strategically selected team of experienced professionals, we will provide flexibility, create a complete, safe and sound banking experience for each client.  We provide a wide range of commercial banking services, including remote deposit solution, NetBanker online banking, mobile banking, lines of credit, M&A / working capital loans, commercial real estate loans, SBA loans and treasury management services.

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.

 

FOURTH QUARTER REPORT - December 31, 2024 (Unaudited)
CW BANCORP						%
CONSOLIDATED BALANCE SHEET						Increase
(dollars in thousands)		Dec 31, 2024		Dec 31, 2023		(Decrease)
ASSETS
Cash and due from banks		$                  503,368		$                  387,464		30 %
Securities available for sale		136,912		110,812		24 %
Securities held-to-maturity		28,581		50,610		-44 %
Loans		793,075		724,444		9 %
Less allowance for credit losses (ACL)		(11,489)		(11,533)		0 %
Loans, net		781,586		712,911		10 %
Bank premises and equipment, net		3,543		4,405		-20 %
Other assets		36,362		35,567		2 %
Total assets		$               1,490,352		$               1,301,769		14 %
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits		$                  613,877		$                  548,149		12 %
Interest bearing deposits		728,544		610,340		19 %
Total deposits		1,342,421		1,158,489		16 %
Subordinated debenture		50,000		50,000		0 %
Other liabilities		13,345		14,419		-7 %
		1,405,766		1,222,908		15 %
Stockholders' equity		84,586		78,861		7 %
Total liabilities and stockholders' equity		$               1,490,352		$               1,301,769		14 %
Shares outstanding at end of period		2,990,223		3,096,360
Book value per share		$                      31.69		$                      28.41
Total loans to total deposits		59.08 %		62.53 %
ACL to total loans		1.45 %		1.59 %
Nonperforming assets (non-accrual loans & OREO)		$                      6,381		$                      4,144
COMMERCEWEST BANK CAPITAL RATIOS:
Tier 1 leverage ratio		11.16 %		12.09 %
Common equity tier 1 capital ratio		16.67 %		18.56 %
Tier 1 risk-based capital ratio		16.67 %		18.56 %
Total risk-based capital ratio		17.92 %		19.82 %

 

CW BANCORP
CONSOLIDATED STATEMENT OF INCOME (Unaudited)		Three Months Ended				Increase		For the Twelve Months Ended				Increase
(dollars in thousands except share and per share data)		Dec 31, 2024		Dec 31, 2023		(Decrease)		Dec 31, 2024		Dec 31, 2023		(Decrease)
INTEREST INCOME
Loans		$          10,856		$          10,146		7 %		$          40,690		$          40,017		2 %
Investments		1,315		1,109		19 %		4,799		4,309		11 %
Fed funds sold and other		2,579		1,709		51 %		8,701		7,859		11 %
Total interest income		14,750		12,964		14 %		54,190		52,185		4 %
INTEREST EXPENSE
Deposits		3,245		2,698		20 %		12,366		9,584		29 %
Subordinated debenture		469		469		0 %		1,875		1,875		0 %
Other borrowings		-		-		-100 %		-		9		-100 %
Total interest expense		3,714		3,167		17 %		14,241		11,468		24 %
NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION		11,036		9,797		13 %		39,949		40,717		-2 %
PROVISION FOR CREDIT LOSSES		25		-		-		25		(1,326)		-102 %
Non-interest income:
NET INTEREST INCOME AFTER CREDIT LOSS PROVISION		11,011		9,797		12 %		39,924		42,043		-5 %
NON-INTEREST INCOME
Service Charges and Fees on Deposits		1,698		1,197		42 %		4,932		5,088		-3 %
Loss on Sale of AFS Securities		-		-		-		-		(166)		-100 %
Other Fees		313		352		-11 %		1,234		1,459		-15 %
NON-INTEREST EXPENSE		7,617		6,367		20 %		27,798		24,087		15 %
EARNINGS BEFORE INCOME TAXES		5,405		4,979		9 %		18,292		24,337		-25 %
INCOME TAXES		1,465		1,434		2 %		5,144		6,726		-24 %
NET INCOME		$            3,940		$            3,545		11 %		$          13,148		$          17,611		-25 %
Basic earnings per share		$1.32		$1.13		17 %		$4.34		$5.46		-21 %
Diluted earnings per share		$1.30		$1.12		16 %		$4.30		$5.39		-20 %
Return on Assets		1.31 %		1.33 %		-2 %		1.19 %		1.58 %		-25 %
Return on Equity		18.27 %		18.91 %		-3 %		16.06 %		23.85 %		-33 %
Return on Tangible Equity		18.95 %		19.72 %		-4 %		16.69 %		24.88 %		-33 %
Efficiency Ratio		58.12 %		55.82 %		4 %		59.97 %		50.14 %		20 %

 

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS
	Three Months Ended December 31,
	2024						2023
	Average Balance		Interest Income / Expense		Yield / Cost		Average Balance		Interest Income / Expense		Yield / Cost
	(dollars in thousands)
INTEREST EARNING ASSETS
Int Bearing Due from Banks & FFS	$       203,392		$        2,439		4.77 %		$        114,418		$        1,571		5.45 %
Investment Securities (1)	167,544		1,373		3.26 %		155,688		1,168		2.98 %
Loans	766,581		10,856		5.63 %		729,798		10,146		5.52 %
FHLB & Other Stocks	7,100		140		7.84 %		7,100		138		7.71 %
Total interest-earning assets	1,144,617		14,808		5.15 %		1,007,004		13,023		5.13 %
Noninterest-earning assets	54,295						53,211
Total assets	$     1,198,912						$     1,060,215
INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$        452,811		$        3,245		2.85 %		$        377,481		$        2,698		2.84 %
Other Borrowings	-		-		-		-		-		-
Subordinated Debenture	50,000		469		3.75 %		50,000		469		3.75 %
Total interest-earning liabilities	502,811		3,714		2.94 %		427,481		3,167		2.94 %
Noninterest-earning liabilities
Demand Deposits	595,705						543,772
Other Liabilities	14,620						14,576
Shareholders' Equity	85,776						74,386
Total liabilities and shareholder's equity	$     1,198,912						$     1,060,215
Net Interest Spread			$      11,094		2.21 %				$        9,856		2.19 %
Net Interest Margin					3.86 %						3.88 %
Total Deposits	$     1,048,516		$        3,245		1.23 %		$        921,253		$        2,698		1.16 %
Total Funding Costs	$     1,098,516		$        3,714		1.35 %		$        971,253		$        3,167		1.29 %
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

 

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS
	Twelve Months Ended December 31,
	2024						2023
	Average Balance		Interest Income / Expense		Yield / Cost		Average Balance		Interest Income / Expense		Yield / Cost
	(dollars in thousands)
INTEREST EARNING ASSETS
Int Bearing Due from Banks & FFS	$       155,785		$        8,136		5.22 %		$        141,213		$        7,366		5.22 %
Investment Securities (1)	160,619		5,037		3.14 %		159,280		4,582		2.88 %
Loans	732,500		40,690		5.55 %		751,757		40,017		5.32 %
FHLB & Other Stocks	7,100		565		7.96 %		6,924		493		7.12 %
Total interest-earning assets	1,056,004		54,428		5.15 %		1,059,174		52,458		4.95 %
Noninterest-earning assets	52,899						56,858
Total assets	$     1,108,903						$     1,116,032
INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$       398,704		$      12,366		3.10 %		$        399,390		$        9,584		2.40 %
Other Borrowings	-		-		-		181		9		4.97 %
Subordinated Debenture	50,000		1,875		3.75 %		50,000		1,875		3.75 %
Total interest-earning liabilities	448,704		14,241		3.17 %		449,571		11,468		2.55 %
Noninterest-earning liabilities
Demand Deposits	564,223						578,427
Other Liabilities	14,130						14,191
Shareholders' Equity	81,846						73,843
Total liabilities and shareholder's equity	$     1,108,903						$     1,116,032
Net Interest Spread			$      40,187		1.98 %				$      40,990		2.40 %
Net Interest Margin					3.81 %						3.87 %
Total Deposits	$        962,927		$      12,366		1.28 %		$        977,817		$        9,584		0.98 %
Total Funding Costs	$     1,012,927		$      14,241		1.41 %		$     1,027,998		$      11,468		1.12 %
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

 

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SOURCE CW Bancorp

FAQ

What was CWBK's earnings per share (EPS) for full-year 2024?

CWBK reported earnings per share (EPS) of $4.30 for full-year 2024, down 20% from $5.39 in 2023.

How much did CWBK's deposits grow in 2024?

CWBK's total deposits increased by $183.9 million or 16% in 2024 compared to 2023.

What was CWBK's loan growth in 2024?

CWBK's total loans increased by $68.6 million, representing a 9.5% growth in 2024.

How did CWBK's net interest margin perform in 2024?

CWBK's net interest margin decreased to 3.81% in 2024 from 3.87% in 2023, a decline of 2%.

What were CWBK's capital ratios at the end of 2024?

As of December 31, 2024, CWBK's tier 1 leverage ratio was 11.16% and total risk-based capital ratio was 17.92%.