CW Bancorp Reports Q3 2024 ROA 1.11% and ROTE of 15.64%
Key Financial Results for the three months ended September 30, 2024:
-
EPS of
$1.03 -
Return on Assets of
1.11% -
Return on Tangible Equity of
15.64% -
Quarter over quarter loan growth of
5% -
Quarter over quarter deposit growth of
4% -
ACL to total loans ratio of
1.53% -
Liquid funds to total deposits ratio of
19% - No outstanding FRB or FHLB borrowings
-
Non-interest-bearing deposits to total deposits of
56% -
Strong leverage ratio of
11.77% and total risk-based capital ratio of18.70% - 59 quarters of consecutive profits
Key Financial Results for the nine months ended September 30, 2024:
-
EPS of
$2.99 -
Return on Assets of
1.14% -
Return on Tangible Equity of
15.88% -
Year over year loan growth of
2% -
Year over year deposit growth of
11% -
Year over year total asset growth of
11%
Mr. Ivo A. Tjan, Chairman and CEO commented, “Our company has demonstrated strong performance this quarter, with robust growth in both loans and deposits, highlighted by double digit increases in deposits and total assets year over year.” Mr. Tjan continued, “In the face of ongoing global and regional economic uncertainty, we remain committed to safeguarding our financial strength. Our fortress like balance sheet, supported by a
Total assets increased
Total deposits increased
Interest income was
Interest income was
Net interest income for the three months ended September 30, 2024, was
Provision for credit losses for the three months ended September 30, 2024, was zero compared to a negative provision for credit losses of
Non-interest income for the three months ended September 30, 2024, was
Non-interest expense for the three months ended September 30, 2024, was
The efficiency ratio for the three months ended September 30, 2024, was
Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of September 30, 2024, the tier 1 leverage ratio was
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
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
| THIRD QUARTER REPORT - September 30, 2024 (Unaudited) | ||||||||||||
| CW BANCORP | % | |||||||||||
| CONSOLIDATED BALANCE SHEET | Increase | |||||||||||
| (dollars in thousands) | Sept 30, 2024 | Sept 30, 2023 | (Decrease) | |||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ |
237,913 |
|
$ |
151,698 |
|
57 |
% |
||||
| Securities available for sale |
|
126,950 |
|
|
100,171 |
|
27 |
% |
||||
| Securities held-to-maturity |
|
30,509 |
|
|
50,646 |
|
-40 |
% |
||||
| Loans |
|
752,003 |
|
|
734,016 |
|
2 |
% |
||||
| Less allowance for credit losses (ACL) |
|
(11,494 |
) |
|
(11,530 |
) |
0 |
% |
||||
| Loans, net |
|
740,509 |
|
|
722,486 |
|
2 |
% |
||||
| Bank premises and equipment, net |
|
3,801 |
|
|
4,592 |
|
-17 |
% |
||||
| Other assets |
|
35,536 |
|
|
31,698 |
|
12 |
% |
||||
| Total assets | $ |
1,175,218 |
|
$ |
1,061,291 |
|
11 |
% |
||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Non-interest bearing deposits | $ |
578,535 |
|
$ |
548,107 |
|
6 |
% |
||||
| Interest bearing deposits |
|
448,348 |
|
|
376,502 |
|
19 |
% |
||||
| Total deposits |
|
1,026,883 |
|
|
924,609 |
|
11 |
% |
||||
| Subordinated debenture |
|
50,000 |
|
|
50,000 |
|
0 |
% |
||||
| Other liabilities |
|
13,358 |
|
|
13,623 |
|
-2 |
% |
||||
|
1,090,241 |
|
|
988,232 |
|
10 |
% |
|||||
| Stockholders' equity |
|
84,977 |
|
|
73,059 |
|
16 |
% |
||||
| Total liabilities and stockholders' equity | $ |
1,175,218 |
|
$ |
1,061,291 |
|
11 |
% |
||||
| Shares outstanding at end of period |
|
3,000,598 |
|
|
3,177,402 |
|
||||||
| Book value per share | $ |
30.75 |
|
$ |
27.50 |
|
||||||
| Total loans to total deposits |
|
73.23 |
% |
|
79.39 |
% |
||||||
| ACL to total loans |
|
1.53 |
% |
|
1.58 |
% |
||||||
| Nonperforming assets (non-accrual loans & OREO) | $ |
5,678 |
|
$ |
4,177 |
|
||||||
| COMMERCEWEST BANK CAPITAL RATIOS: | ||||||||||||
| Tier 1 leverage ratio |
|
11.77 |
% |
|
11.18 |
% |
||||||
| Common equity tier 1 capital ratio |
|
17.45 |
% |
|
18.43 |
% |
||||||
| Tier 1 risk-based capital ratio |
|
17.45 |
% |
|
18.43 |
% |
||||||
| Total risk-based capital ratio |
|
18.70 |
% |
|
19.68 |
% |
||||||
| CW BANCORP | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME (Unaudited) | Three Months Ended | Increase | For the Nine Months Ended | Increase | ||||||||||||||||||||
| (dollars in thousands except share and per share data) | Sept 30, 2024 | Sept 30, 2023 | (Decrease) | Sept 30, 2024 | Sept 30, 2023 | (Decrease) | ||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||
| Loans | $ |
10,044 |
|
$ |
9,988 |
|
1 |
% |
$ |
29,834 |
|
$ |
29,871 |
|
0 |
% |
||||||||
| Investments |
|
1,193 |
|
|
1,016 |
|
17 |
% |
|
3,485 |
|
|
3,200 |
|
9 |
% |
||||||||
| Fed funds sold and other |
|
2,619 |
|
|
2,700 |
|
-3 |
% |
|
6,122 |
|
|
6,150 |
|
0 |
% |
||||||||
| Total interest income |
|
13,856 |
|
|
13,704 |
|
1 |
% |
|
39,441 |
|
|
39,221 |
|
1 |
% |
||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||
| Deposits |
|
3,372 |
|
|
2,575 |
|
31 |
% |
|
9,121 |
|
|
6,886 |
|
32 |
% |
||||||||
| Subordinated debenture |
|
469 |
|
|
469 |
|
0 |
% |
|
1,406 |
|
|
1,406 |
|
0 |
% |
||||||||
| Other borrowings |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
9 |
|
-100 |
% |
||||||||
| Total interest expense |
|
3,841 |
|
|
3,044 |
|
26 |
% |
|
10,527 |
|
|
8,301 |
|
27 |
% |
||||||||
| NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION |
|
10,015 |
|
|
10,660 |
|
-6 |
% |
|
28,914 |
|
|
30,920 |
|
-6 |
% |
||||||||
| PROVISION FOR CREDIT LOSSES |
|
- |
|
|
(1,500 |
) |
-100 |
% |
|
- |
|
|
(1,326 |
) |
-100 |
% |
||||||||
| Non-interest income: | ||||||||||||||||||||||||
| NET INTEREST INCOME AFTER CREDIT LOSS PROVISION |
|
10,015 |
|
|
12,160 |
|
-18 |
% |
|
28,914 |
|
|
32,246 |
|
-10 |
% |
||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||||
| Service Charges and Fees on Deposits |
|
1,402 |
|
|
1,482 |
|
-5 |
% |
|
3,234 |
|
|
3,891 |
|
-17 |
% |
||||||||
| Loss on Sale of AFS Securities |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
(166 |
) |
-100 |
% |
||||||||
| Other Fees |
|
325 |
|
|
436 |
|
-25 |
% |
|
920 |
|
|
1,107 |
|
-17 |
% |
||||||||
| NON-INTEREST EXPENSE |
|
7,344 |
|
|
6,812 |
|
8 |
% |
|
20,182 |
|
|
17,720 |
|
14 |
% |
||||||||
| EARNINGS BEFORE INCOME TAXES |
|
4,398 |
|
|
7,266 |
|
-39 |
% |
|
12,886 |
|
|
19,358 |
|
-33 |
% |
||||||||
| INCOME TAXES |
|
1,267 |
|
|
2,032 |
|
-38 |
% |
|
3,678 |
|
|
5,292 |
|
-30 |
% |
||||||||
| NET INCOME | $ |
3,131 |
|
$ |
5,234 |
|
-40 |
% |
$ |
9,208 |
|
$ |
14,066 |
|
-35 |
% |
||||||||
| Basic earnings per share | $ |
1.04 |
|
$ |
1.63 |
|
-36 |
% |
$ |
3.03 |
|
$ |
4.32 |
|
-30 |
% |
||||||||
| Diluted earnings per share | $ |
1.03 |
|
$ |
1.61 |
|
-36 |
% |
$ |
2.99 |
|
$ |
4.26 |
|
-30 |
% |
||||||||
| Return on Assets |
|
1.11 |
% |
|
1.82 |
% |
-39 |
% |
|
1.14 |
% |
|
1.66 |
% |
-31 |
% |
||||||||
| Return on Equity |
|
15.06 |
% |
|
27.66 |
% |
-46 |
% |
|
15.27 |
% |
|
25.53 |
% |
-40 |
% |
||||||||
| Return on Tangible Equity |
|
15.64 |
% |
|
28.83 |
% |
-46 |
% |
|
15.88 |
% |
|
26.64 |
% |
-40 |
% |
||||||||
| Efficiency Ratio |
|
62.23 |
% |
|
51.92 |
% |
20 |
% |
|
60.70 |
% |
|
48.35 |
% |
26 |
% |
||||||||
| CW BANCORP | |||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS | |||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||
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 | $ |
182,374 |
$ |
2,480 |
5.41 |
% |
$ |
189,032 |
$ |
2,564 |
5.38 |
% |
|||||
| Investment Securities (1) |
|
157,632 |
|
1,252 |
3.16 |
% |
|
153,564 |
|
1,076 |
2.78 |
% |
|||||
| Loans |
|
720,333 |
|
10,044 |
5.55 |
% |
|
740,542 |
|
9,988 |
5.35 |
% |
|||||
| FHLB & Other Stocks |
|
7,100 |
|
139 |
7.79 |
% |
|
7,100 |
|
136 |
7.60 |
% |
|||||
| Total interest-earning assets |
|
1,067,439 |
|
13,915 |
5.19 |
% |
|
1,090,238 |
|
13,764 |
5.01 |
% |
|||||
| Noninterest-earning assets |
|
57,526 |
|
52,067 |
|||||||||||||
| Total assets | $ |
1,124,965 |
$ |
1,142,305 |
|||||||||||||
| INTEREST EARNING LIABILITIES | |||||||||||||||||
| Interest Bearing Deposits | $ |
422,112 |
$ |
3,372 |
3.18 |
% |
$ |
400,765 |
$ |
2,575 |
2.55 |
% |
|||||
| Other Borrowings |
|
- |
|
- |
- |
|
|
- |
|
- |
- |
|
|||||
| Subordinated Debenture |
|
50,000 |
|
469 |
3.75 |
% |
|
50,000 |
|
469 |
3.75 |
% |
|||||
| Total interest-earning liabilities |
|
472,112 |
|
3,841 |
3.24 |
% |
|
450,765 |
|
3,044 |
2.68 |
% |
|||||
| Noninterest-earning liabilities | |||||||||||||||||
| Demand Deposits |
|
556,290 |
|
600,824 |
|||||||||||||
| Other Liabilities |
|
13,857 |
|
15,639 |
|||||||||||||
| Shareholders' Equity |
|
82,706 |
|
75,077 |
|||||||||||||
| Total liabilities and shareholder's equity | $ |
1,124,965 |
$ |
1,142,305 |
|||||||||||||
| Net Interest Spread | $ |
10,074 |
1.95 |
% |
$ |
10,720 |
2.33 |
% |
|||||||||
| Net Interest Margin | 3.75 |
% |
3.90 |
% |
|||||||||||||
| Total Deposits | $ |
978,402 |
$ |
3,372 |
1.37 |
% |
$ |
1,001,589 |
$ |
2,575 |
1.02 |
% |
|||||
| Total Funding Costs | $ |
1,028,402 |
$ |
3,841 |
1.49 |
% |
$ |
1,051,589 |
$ |
3,044 |
1.15 |
% |
|||||
| (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 | |||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||
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 | $ |
139,800 |
$ |
5,697 |
5.44 |
% |
$ |
150,242 |
$ |
5,795 |
5.16 |
% |
|||||
| Investment Securities (1) |
|
158,295 |
|
3,664 |
3.09 |
% |
|
160,491 |
|
3,414 |
2.84 |
% |
|||||
| Loans |
|
721,056 |
|
29,834 |
5.53 |
% |
|
759,157 |
|
29,871 |
5.26 |
% |
|||||
| FHLB & Other Stocks |
|
7,100 |
|
425 |
8.00 |
% |
|
6,865 |
|
355 |
6.91 |
% |
|||||
| Total interest-earning assets |
|
1,026,251 |
|
39,620 |
5.16 |
% |
|
1,076,755 |
|
39,435 |
4.90 |
% |
|||||
| Noninterest-earning assets |
|
52,431 |
|
58,086 |
|||||||||||||
| Total assets | $ |
1,078,682 |
$ |
1,134,841 |
|||||||||||||
| INTEREST EARNING LIABILITIES | |||||||||||||||||
| Interest Bearing Deposits | $ |
380,537 |
$ |
9,121 |
3.20 |
% |
$ |
406,772 |
$ |
6,886 |
2.26 |
% |
|||||
| Other Borrowings |
|
- |
|
- |
- |
|
|
242 |
|
9 |
4.97 |
% |
|||||
| Subordinated Debenture |
|
50,000 |
|
1,406 |
3.75 |
% |
|
50,000 |
|
1,406 |
3.75 |
% |
|||||
| Total interest-earning liabilities |
|
430,537 |
|
10,527 |
3.27 |
% |
|
457,014 |
|
8,301 |
2.43 |
% |
|||||
| Noninterest-earning liabilities | |||||||||||||||||
| Demand Deposits |
|
553,652 |
|
590,106 |
|||||||||||||
| Other Liabilities |
|
13,966 |
|
14,061 |
|||||||||||||
| Shareholders' Equity |
|
80,527 |
|
73,660 |
|||||||||||||
| Total liabilities and shareholder's equity | $ |
1,078,682 |
$ |
1,134,841 |
|||||||||||||
| Net Interest Spread | $ |
29,093 |
1.89 |
% |
$ |
31,134 |
2.47 |
% |
|||||||||
| Net Interest Margin | 3.79 |
% |
3.87 |
% |
|||||||||||||
| Total Deposits | $ |
934,189 |
$ |
9,121 |
1.30 |
% |
$ |
996,878 |
$ |
6,886 |
0.92 |
% |
|||||
| Total Funding Costs | $ |
984,189 |
$ |
10,527 |
1.43 |
% |
$ |
1,047,120 |
$ |
8,301 |
1.06 |
% |
|||||
| (1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate | |||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031117877/en/
Bancorp Contact
Mr. Ivo A. Tjan, CEO
Ms. Leeann Cochran, CFO
Telephone: (866) 521-CWBK
E-mail: InvestorRelations@cwbk.com
Website: www.cwbk.com
"Bank on the Difference"
Source: CW Bancorp
