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Commonwealth Business Bank Reports Profit for the Third Quarter 2010

^{Published on 2010-11-17 17:40:33 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Commonwealth Business Bank (OTCBB: CWBB) today reported a net income available to common stockholders of $32,000, or $0.01 per diluted share, for the third quarter of 2010, compared to a net loss available to common stockholders of $538,000, or ($0.17) per diluted common share, for the second quarter 2010.

"The third quarter was the result of a successful execution of our ongoing strategic focus on asset quality management and planned growth of quality loans"

aThe third quarter was the result of a successful execution of our ongoing strategic focus on asset quality management and planned growth of quality loans,a said Jack Choi, President & CEO. aOur loan losses have tapered off and absent further downturns in the economy, we are projecting declining provision expenses. Net interest income grew from the combination of an expanded base and higher yields on earning assets. This, coupled with a lower provision for loan losses, will promote sustained profitability. Despite some concerns of a slowing economy, we expect to carry on the positive momentum to foster a stronger performance in the fourth quarter and 2011.a

Third Quarter 2010 Highlights

• Net income available to common stockholders was $32,000, or $0.01 per diluted share, compared with the net loss of $538,000, or ($0.17) per diluted share, in the previous quarter 2010, and $397,000, or $0.13 per diluted share, year-over-year.
• Net interest margin increased 25 basis points to 3.52% from the previous quarter and 60 basis points from the prior year, mainly from the reduction in cost of funds.
• Non-interest income decreased $254,000 and $103,000 from the previous quarter and year-over-year, respectively, due to a decrease in gains on sale of investment securities, offset by an increase in gain on sale of SBA loans and other service income.
• Non-interest expense increased $112,000 from the previous quarter and $77,000 year-over-year.
• Total assets grew 4.2%, or $15.4 million, to $382.8 million from the previous quarter.
• Total deposits increased 4.7%, or $14.3 million, to $320.6 million from an increase in core deposits.
• Gross loans increased 2.1%, or $6.0 million, to $289.8 million.
• ALLL increased to 2.72% of gross loans compared to 2.43% at 6/30/2010 and 2.28% at 12/31/09.
• Non-accrual loans was 1.97% of gross loans at 9/30/10 compared to 2.59% at 6/30/10 and 0.09% at 12/31/109.
• Non-performing loans including trouble debt restructured loans were 3.98% of gross loans at 9/30/2010 from 2.16% at 6/30/2010 and 0.09% at 12/31/09.
• Net charge offs decreased to 0.86% of average loans on an annualized basis from 2.95% in previous quarter and 1.29% from the same period of prior year.
• No OREOs.
• Well capitalized with the leverage ratio of 12.31%, tier one capital ratio of 15.23%, total risk-based capital ratio of 16.50% and tangible common equity ratio of 10.57%.
• Efficiency ratio was 50.51%, compared to 49.05% of previous quarter and 61.37% of the prior year.

The Banka™s Call Reports are available for review or download directly from the FDIC website at [ www.fdic.gov ], or through the link at the Banka™s website at [ www.cwbbank.com ].

This press release contains certain forward-looking information about Commonwealth Business Bank (CBB) that is intended to be covered by the safe harbor for aforward-looking statementsa provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the banka™s outlook. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of CBB. CBB cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues that are lower than expected and credit quality deterioration which could cause an increase in the provision for credit losses.

These forward-looking statements involve known and unknown risks, uncertainties and factors such as: changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which CBB does or anticipates doing business, including the possibility of a U.S. recession, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of CBB to retain customers, demographic changes, demand for the products or services of CBB as well as its ability to attract and retain qualified people, competition with other banks and financial institutions, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, CBBa™s results could differ materially from those expressed in, or implied or projected by such forward-looking statements. CBB assumes no obligation to update such forward-looking statements.