Menu Search

Company Announcements

CW Bancorp

CW Bancorp Reports First Quarter 2025 Financial Results

IRVINE, Calif. , May 1, 2025 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the first quarter of 2025 of $2,935,000 or $0.97 per diluted share as compared to $2,993,000 or $0.96 per diluted share for the first quarter of 2024, an EPS increase of 1%. 

Key Financial Results for the three months ended March 31, 2025:

  • EPS of $0.97
  • Return on Assets of 1.07%
  • Return on Tangible Equity of 14.16%
  • Net interest income growth of 10%
  • Quarter over quarter loan growth of 12%
  • Quarter over quarter deposit growth of 5%
  • ACL to total loans ratio of 1.42%
  • Liquid funds to total deposits ratio of 13%
  • No outstanding FRB or FHLB borrowings
  • Non-interest-bearing deposits to total deposits of 59%
  • Leverage ratio of 12.35% and total risk-based capital ratio of 18.01%
  • 61 quarters of consecutive profits

Mr. Ivo A. Tjan, Chairman and CEO commented, "The Company delivered solid financial results for the quarter, highlighted by double digit loan and net interest income growth. At the same time, we maintained a strong allowance for credit losses at 1.42% and upheld our commitment to prudent underwriting standards. We are also proud to have achieved 12% loan growth and 5% deposit growth despite a challenging economic environment." Mr. Tjan continued, "With our fortress balance sheet approach, CommerceWest Bank is well positioned to continue serving as a source of strength for our clients and the California business community.  I would like to sincerely thank our dedicated team members whose hard work and commitment made these strong results possible."

Total asset increased $51.8 million as of March 31, 2025, an increase of 5% as compared to the same period one year ago.  Total loans increased $84.5 million as of March 31, 2025, an increase of 12% from the prior year.  Cash and due from banks decreased $43.3 million or 21% from the prior year. Total investment securities increased $9.5 million, an increase of 6% from prior year.

Total deposits increased $44.5 million as of March 31, 2025, an increase of 5% from March 31, 2024. Non-interest-bearing deposits decreased $187,000 as of March 31, 2025, a slight decrease over the prior year. Interest bearing deposits increased $44.7 million as of March 31, 2025, an increase of 12% from the prior year.

Interest income was $13,437,000 for the three months ended March 31, 2025, as compared to $12,242,000 for the three months ended March 31, 2024, an increase of 10%. Interest expense was $3,393,000 for the three months ended March 31, 2025, as compared to $3,114,000 for the three months ended March 31, 2024, an increase of 9%. Interest expense was up for the quarter primarily due to the increase in interest bearing deposits.    

Net interest income for the three months ended March 31, 2025, was $10,044,000 compared to $9,128,000 for the three months ended March 31, 2024, an increase of 10%. The net interest margin increased for the three months ended March 31, 2025. It increased from 3.79% in 2024 to 3.87% in 2025, an increase of 2%.

Provision for credit losses were zero for the three months ended March 31, 2025 and March 31, 2024.

Non-interest income for the three months ended March 31, 2025, was $1,245,000 compared to $1,208,000 for the same period last year, an increase of 3%. 

Non-interest expense for the three months ended March 31, 2025, was $7,175,000 compared to $6,177,000 for the same period last year, an increase of 16%.

The efficiency ratio for the three months ended March 31, 2025, was 63.22% compared to 59.42% in 2024, which represents an increase of 6%.  The efficiency ratio illustrates that for every dollar made for the three-month period ending March 31, 2025, it costs $0.6322 to make it, as compared to $0.5942 one year ago. 

Capital ratio for the Bank remain above the level required for a "well capitalized" institution as designated by regulatory agencies. As of March 31, 2025, the tier 1 leverage ratio was 12.35%, the common equity tier 1 capital ratio was 16.76%, the tier 1 risk-based capital ratio was 16.76% and the total risk-based capital ratio was 18.01%.

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.

FIRST QUARTER REPORT - March 31, 2025 (Unaudited)


















CW BANCORP






%



CONSOLIDATED BALANCE SHEET




Increase



(dollars in thousands)


March 31, 2025


March 31, 2024


(Decrease)












ASSETS









Cash and due from banks


$                 159,966


$                203,263


-21 %



Securities available for sale


135,157


110,661


22 %



Securities held to maturity


26,556


41,577


-36 %












Loans


802,181


717,692


12 %



  Less allowance for credit losses (ACL)


(11,355)


(11,562)


-2 %



Loans, net


790,826


706,130


12 %












Bank premises and equipment, net


3,324


4,199


-21 %



Other assets


35,778


33,988


5 %



     Total assets


$              1,151,607


$              1,099,818


5 %












LIABILITIES AND STOCKHOLDERS' EQUITY









Non-interest bearing deposits


$                 587,167


$                587,354


0 %



Interest bearing deposits


414,900


370,210


12 %



     Total deposits


1,002,067


957,564


5 %












Subordinated debenture


50,000


50,000


0 %



Other liabilities


12,141


13,285


-9 %





1,064,208


1,020,849


4 %



Stockholders' equity


87,399


78,969


11 %



     Total liabilities and stockholders' equity


$              1,151,607


$              1,099,818


5 %












Shares outstanding at end of period


2,983,223


3,049,831





Book value per share


$                    32.46


$                    29.12





Total loans to total deposits


80.05 %


74.95 %





ACL to total loans


1.42 %


1.61 %





Nonperforming assets (non-accrual loans & OREO)


$                    7,251


$                    4,648














COMMERCEWEST BANK CAPITAL RATIOS:









Tier 1 leverage ratio


12.35 %


12.58 %





Common equity tier 1 capital ratio


16.76 %


18.74 %





Tier 1 risk-based capital ratio


16.76 %


18.74 %





Total risk-based capital ratio


18.01 %


19.99 %





 

CW BANCORP










CONSOLIDATED STATEMENT OF INCOME (Unaudited)


Three Months Ended


Increase




(dollars in thousands except share and per share data)


March 31, 2025


March 31, 2024


(Decrease)














INTEREST INCOME










  Loans


$                       10,981


$                        9,809


12 %




  Investment securities


1,338


1,117


20 %




  Fed funds sold and other


1,118


1,316


-15 %




       Total interest income


13,437


12,242


10 %














INTEREST EXPENSE










  Deposits


2,924


2,645


11 %




  Subordinated debenture


469


469


0 %




       Total interest expense


3,393


3,114


9 %














NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION


10,044


9,128


10 %














PROVISION FOR CREDIT LOSSES


-


-


-














NET INTEREST INCOME AFTER CREDIT LOSS PROVISION


10,044


9,128


10 %














NON-INTEREST INCOME










Service Charges and Fees on Deposits


1,029


905


14 %




Other Fees


216


303


-29 %














NON-INTEREST EXPENSE


7,175


6,177


16 %














EARNINGS BEFORE INCOME TAXES


4,114


4,159


-1 %














INCOME TAXES


1,179


1,166


1 %
























NET INCOME


$                         2,935


$                        2,993


-2 %














Basic earnings per share


$                           0.98


$                          0.97


1 %




Diluted earnings per share


$                           0.97


$                          0.96


1 %




Return on Assets


1.07 %


1.18 %


-9 %




Return on Equity


13.66 %


15.13 %


-10 %




Return on Tangible Equity


14.16 %


15.74 %


-10 %




Efficiency Ratio


63.22 %


59.42 %


6 %




 

CW BANCORP













CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS
























Three Months Ended March 31,



2025


2024



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

$        89,519


$          981


4.44 %


$        86,162


$       1,168


5.45 %


Investment Securities (1)

165,486


1,396


3.42 %


160,397


1,177


2.95 %


Loans

796,856


10,981


5.59 %


721,270


9,809


5.47 %


FHLB & Other Stocks

7,100


138


7.88 %


7,100


147


8.33 %


Total interest-earning assets

1,058,961


13,496


5.17 %


974,929


12,301


5.07 %















Noninterest-earning assets

50,612






48,985






Total assets

$    1,109,573






$    1,023,914
































INTEREST EARNING LIABILITIES













Interest Bearing Deposits

$       409,640


$       2,924


2.89 %


338,731


2,645


3.14 %


Subordinated Debenture

50,000


469


3.75 %


50,000


469


3.75 %


Total interest-earning liabilities

459,640


3,393


2.99 %


388,731


3,114


3.22 %















Noninterest-earning liabilities













Demand Deposits

549,970






541,533






Other Liabilities

12,828






14,107






Shareholders' Equity

87,135






79,543






Total liabilities and shareholder's equity

$    1,109,573






$    1,023,914



















Net Interest Spread



$      10,103


2.18 %




$       9,187


1.85 %


Net Interest Margin





3.87 %






3.79 %















Total Deposits

$       959,610


$       2,924


1.24 %


$       880,264


$       2,645


1.21 %


Total Funding Costs

$    1,009,610


$       3,393


1.36 %


$       930,264


$       3,114


1.35 %















(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate



















 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cw-bancorp-reports-first-quarter-2025-financial-results-302443744.html

SOURCE CW Bancorp