The parent company of CommerceWest Bank, CW Bancorp, reported consolidated net income of $3,084,000 or $1.00 per diluted share for Q2 2024, a decrease from $4,214,000 or $1.27 per diluted share in Q2 2023. This represents a 21% drop in EPS. For the six months ending June 30, 2024, net income was $6,077,000 or $1.96 per diluted share, down from $8,832,000 or $2.64 per diluted share for the same period in 2023, marking a 26% decrease in EPS.
Key Financial Results for Q2 2024:
- EPS: $1.00
- Return on Assets (ROA): 1.14%
- Return on Tangible Equity (ROTE): 16.77%
- ACL to total loans ratio: 1.60%
- Liquid funds to total deposits ratio: 20%
- No outstanding FRB or FHLB borrowings
- Non-interest-bearing deposits to total deposits: 59%
- Strong leverage ratio: 12.06%
- Total risk-based capital ratio: 19.67%
- 58 quarters of consecutive profits
Key Financial Results for the First Half of 2024:
- EPS: $1.96
- Return on Assets (ROA): 1.16%
- Return on Tangible Equity (ROTE): 16.45%
- Deposit Growth: 3% compared to March 31, 2024
- Total Asset Growth: 2.8% compared to March 31, 2024
Chairman and CEO Mr. Ivo Tjan commented, “The Bank achieved an average deposit growth of 8%, or $72 million, quarter over quarter, and maintained a strong ROTE of 16.77%. Our new business development lending staff, added in June, is enhancing our loan pipeline, positioning us for growth in the latter half of 2024. We remain focused on strengthening relationships within the California business community.”
Additional Financial Highlights:
- Total assets increased by $30.7 million (3%) from the previous quarter, and total deposits increased by $29.4 million (3%).
- Non-interest-bearing deposits saw a slight decrease of $4.6 million (1%) from the previous quarter, while interest-bearing deposits increased by $34.0 million (9%).
- Compared to the same period last year, total assets decreased by $50.9 million (4%), and total loans decreased by $30.3 million (4%).
- Cash and due from banks decreased by $26.9 million (11%) year-over-year, while total investment securities increased by $3.2 million (2%).
- Total deposits decreased by $54.4 million (5%) year-over-year, with non-interest-bearing deposits down by $27.1 million (4%) and interest-bearing deposits down by $27.3 million (6%).
Income Statement Analysis:
- Q2 2024 interest income was $13,344,000, slightly down from $13,513,000 in Q2 2023. Interest expense increased by 15% to $3,573,000 due to rising deposit costs.
- For the first half of 2024, interest income remained steady at $25,585,000, while interest expense rose by 27% to $6,687,000.
- Net interest income for Q2 2024 was $9,771,000, down 6% from $10,400,000 in Q2 2023. The net interest margin improved from 3.79% in 2023 to 3.82% in 2024.
- Non-interest income for Q2 2024 was $1,219,000, a 27% decrease from $1,662,000 in Q2 2023. Non-interest expense rose by 10% to $6,661,000.
Efficiency and Capital Ratios:
- The efficiency ratio for Q2 2024 was 60.28%, up from 49.83% in 2023.
- As of June 30, 2024, the Bank’s capital ratios exceeded regulatory requirements for a “well-capitalized” institution: tier 1 leverage ratio at 12.06%, common equity tier 1 capital ratio at 18.41%, tier 1 risk-based capital ratio at 18.41%, and total risk-based capital ratio at 19.67%.
CommerceWest Bank, founded in 2001 and headquartered in Irvine, California, continues to provide a comprehensive range of commercial banking services tailored to small and medium-sized businesses across California. For more information, visit www.cwbk.com.
Forward-Looking Statements
This release includes forward-looking statements subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. The Company disclaims any obligation to update these statements to reflect future events or developments.
Consolidated Balance Sheet Highlights (as of June 30, 2024):
- Total assets: $1,130,525,000 (down 4% from June 30, 2023)
- Total deposits: $986,976,000 (down 5% from June 30, 2023)
- Total loans: $716,953,000 (down 4% from June 30, 2023)
Consolidated Statement of Income Highlights:
- Total interest income for Q2 2024: $13,344,000
- Net income for Q2 2024: $3,084,000
- Basic EPS: $1.02
- Diluted EPS: $1.00
For detailed financial statements and further information, please visit the CW Bancorp website.
