Irvine, California – January 31, 2025 – 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”