CW Bancorp Reports Impressive First Quarter Achievements
On May 1, 2025, CW Bancorp (OTCQX: CWBK), the parent company of CommerceWest Bank, released its financial results for the first quarter of 2025. This quarter displayed remarkable growth in earnings and loans, highlighting the bank's resilience amid a challenging economic landscape.
The consolidated net income for CW Bancorp reached
$2.935 million, or
$0.97 per diluted share, slightly up from
$2.993 million, or
$0.96 per diluted share reported in the first quarter of the previous year. This translates to an incremental
1% rise in earnings per share (EPS).
Key Financial Highlights
- - Earnings Per Share (EPS): $0.97
- - Return on Assets (ROA): 1.07%
- - Return on Tangible Equity (ROTE): 14.16%
- - Net Interest Income Growth: 10%
- - Loan Growth (quarter over quarter): 12%
- - Deposit Growth (quarter over quarter): 5%
- - Allowance for Credit Losses (ACL) to Total Loans Ratio: 1.42%
- - Liquidity Ratio: Liquid funds to total deposits at 13%
- - Consecutive Profit Quarters: 61
Mr. Ivo A. Tjan, Chairman and CEO, praised the company's performance, stating, "The Company delivered solid financial results for the quarter, highlighted by double-digit loan and net interest income growth. Our commitment to prudent underwriting standards allowed us to maintain a robust allowance for credit losses, positioning us well even in a challenging economic environment."
During this quarter, CW Bancorp experienced a total asset increase of
$51.8 million, which represents a
5% rise compared to the same period last year. Total loans surged by
$84.5 million, marking a
12% growth year-on-year. Notably, non-interest-bearing deposits slightly decreased by
$187,000, while interest-bearing deposits saw a healthy increase of
$44.7 million.
Margin and Income Dynamics
Interest income for the first three months of 2025 was recorded at
$13.437 million, compared to
$12.242 million in the same period of 2024, reflecting a growth rate of
10%. In contrast, interest expenses rose to
$3.393 million, a
9% increase.
As a result, CW Bancorp’s net interest margin improved from
3.79% to
3.87% this quarter, indicating a healthier earning structure. There was no provision for credit losses, maintaining stability in the company’s financial strategy.
Non-Interest Income and Expenses
Non-interest income registered at
$1.245 million, a
3% improvement from the previous year, while non-interest expenses increased by
16%, totaling
$7.175 million. This increase in expense translated to an efficiency ratio of
63.22%, showing that it costs
$0.6322 to generate every dollar of income, compared to
$0.5942 in 2024.
Despite these challenges, the capital ratios remained healthy. The bank’s tier 1 leverage ratio is
12.35%, well above the regulatory threshold for a “well-capitalized” institution, allowing CommerceWest Bank to remain a stable financial partner for clients throughout California.
Moving Forward
Founded in 2001 and headquartered in Irvine, California, CommerceWest Bank is committed to redefining banking for small and medium-sized enterprises. The bank emphasizes customized products and services to cater to the diverse needs of businesses across the state.
With a wide array of banking solutions, including commercial real estate loans, SBA loans, treasury management services, and a digital banking platform, CommerceWest Bank aims to deliver a seamless banking experience to its clients.
For additional information about the bank and its services, visit
www.cwbk.com.
Conclusion
CW Bancorp’s robust financial results for the first quarter of 2025 showcase a firm that is not only weathering economic uncertainties but is also positioned well for future growth. As they continue to focus on supporting small and medium-sized businesses, it’s clear that they are dedicated to providing personalized, high-quality banking solutions for their clients.