SOURCE: CommerceWest Bank

July 13, 2005 14:11 ET

CommerceWest Bank Reports Record Quarterly Earnings of $501,000, a 127% Increase in Second Quarter Earnings

IRVINE, CA -- (MARKET WIRE) -- July 13, 2005 -- CommerceWest Bank (OTC BB: CWBK) reported record earnings for the three months ending on June 30, 2005 of $501,000 or $0.19 per basic common share and $0.18 per diluted common share, compared with net income of $221,000 or $0.13 per basic common share and $0.12 per diluted common share for the three months ended June 30, 2004. The Bank also showed record increase of $1,472,000 or 111% in total revenue from the second quarter of 2004 to the second quarter of 2005. Net income for the second quarter of 2005 produced a return on average assets of 1.56%, compared to 0.83% in 2004, which represents an increase of 88%. Return on average equity in the second quarter of 2005 was 15.76%, compared to 5.49% in 2004, which represents an increase of 187%.

Total assets as of June 30, 2005 were $136.7 million, compared to $108.3 million as of June 30, 2004, an increase of $28.4 million or 26%. Total loans increased $24.0 million or 39% to $85.2 million at June 30, 2005. There were no nonperforming loans as of June 30, 2005. Total deposits increased $13.8 million or 15% to $104.5 million at June 30, 2005. "The steady growth in the second quarter of 2005 is attributable to the commitment of the Bank's management team and its focus to remain as one of the nation's fastest growing companies," stated René V. Garcia, EVP and Chief Financial Officer.

Net interest income before the provision for loan losses for the three months ended June 30, 2005 was $1,636,000, an increased of $663,000 or 68%, compared to the same period in 2004. This increase resulted from $885,000 increase in interest income, partially offset by $222,000 increase in interest expense. Net interest margin remains strong in the second quarter, which increased from 4.13% in 2004 to 5.45% in 2005, a 132 basis points or 32% increase from 2004 to 2005. "While many financial institutions are experiencing compressing net interest margins, CommerceWest has been focused on building a fortress balance sheet to take advantage of an increasing interest rate environment," said Mr. Ivo A. Tjan, Chairman and CEO.

Non-interest income posted a record high of $781,000 in the second quarter of 2005, an increase of $587,000 or 303%, compared to the same period in 2004. Non-interest expense increased $582,000 or 63% in 2005, as compared to the same period in 2004 with salaries, occupancy, equipment and marketing expenses having the largest increases. "The Bank will continue to stay focused on revenue, deposit, and loan growth for 2005," commented Mr. Tjan, CEO. "We have a strong management team in place, which will concentrate on continuously improving our key financial ratios throughout the year."

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of June 30, 2005, the Tier 1 capital ratio, total risk-based capital ratio and leverage ratio was 18%, 19% and 15%, respectively.

About CommerceWest Bank:

CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Business Centers in Orange County at 4685 MacArthur Court in Newport Beach, CA, and in the Inland Empire at 1611 Pomona Road in Corona, CA. We offer a wide range of business banking services, including cash management, concierge services, full-service Internet banking, lines of credit, term loans, nation wide commercial real estate lending and SBA Lending.

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 to learn more about the bank.

Forward-looking Statements

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 and 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.

Contact Information

  • Bank Contact:
    CommerceWest Bank, N.A.
    Mr. Ivo A. Tjan, CEO
    Mr. René V. Garcia, CFO
    Telephone: (949) 251-6959
    Facsimile: (949) 251-6957
    E-mail: Email Contact
    "Bank on the Difference"