1. CWBK reported Q1 2025 net income of $2.935 million, up 1%. 2. Total loans increased by 12% and deposits by 5% year-over-year. 3. Net interest income rose by 10%, with margin at 3.87%. 4. Non-interest expenses increased by 16%, impacting efficiency ratio. 5. Capital ratios remain strong, ensuring regulatory compliance for stability.
CWBK's consistent growth in loans and deposits suggests a strong market position. Historically, banking stocks with rising interest income and low credit loss provisions perform well.
Strong earnings and growth metrics may attract investor interest, potentially increasing share price. The broader economic implications and market conditions will enhance this effect.
The bank's solid fundamentals and growth trend should support sustained investor confidence. For instance, similar regional banks have seen continuous growth following high loan-to-deposit ratios.
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%.
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 remains 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.
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.
| Increase | 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% | |
| Total liabilities | 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 |
| Ratio | March 31, 2025 | March 31, 2024 |
|---|---|---|
| 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 % |
| Three Months Ended | Increase | 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% |
| Three Months Ended March 31, 2025 | 2024 | Average Balance | Interest Income / Expense | Yield / Cost |
|---|---|---|---|---|
| INTEREST EARNING ASSETS | Int Bearing Due from Banks & FFS | $ 89,519 | $ 981 | 4.44 % |
| Investment Securities (1) | 165,486 | 1,396 | 3.42 % | |
| Loans | 796,856 | 10,981 | 5.59 % | |
| FHLB & Other Stocks | 7,100 | 138 | 7.88 % | |
| Total interest-earning assets | 1,058,961 | 13,496 | 5.17 % | |
| 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 % |
| Subordinated Debenture | 50,000 | 469 | 3.75 % | |
| Total interest-earning liabilities | 459,640 | 3,393 | 2.99 % | |
| 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 % | ||
| Net Interest Margin | 3.87 % | 3.79 % | ||
| Total Deposits | $ 959,610 | $ 2,924 | 1.24 % | |
| Total Funding Costs | $ 1,009,610 | $ 3,393 | 1.36 % |
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
SOURCE CW Bancorp