Bancorp (CBWA) Announces Second Quarter 2022 Financial Results
Bancorp, Inc. (CBWA) Announces Second Quarter 2022 Financial ResultsPress release | 08/05/2022
Financial results for the second quarter of 2022:
- Total assets were $552 million for the quarter ended June 30, 2022.
- Total loans increased by $44 million during the second quarter of 2022 to end at $389.3 million.
- Net income topped $1 million in the second quarter.
- Paycheck Protection Program (PPP) minimal remaining loans with a balance of $1 million out of a total of $153 million PPP.
TACOMA, WA/ACCESSWIRE/August 5, 2022/ Bancorp, Inc. (OTCQX: CBWA) reported quarterly net income of $1.1 million, or $0.27 earnings per share, for the quarter ending June 30, 2022, compared with a loss of $62,000. dollars for the second quarter of 2021, which was the result of a large provision for loan and lease losses (ALLL). Total assets were $552 million as of June 30, 2022, compared to $562 million, including $60 million in PPP loans, a year earlier.
The asset mix improved in the second quarter as excess overnight funds were deployed to support loan growth of $44 million. Loan growth in the second quarter was 13% over the first quarter. 1% PPP loan forgiveness was more than $59 million from a year ago and more than $4 million from the first quarter. The loan portfolio remained well diversified at 73% commercial real estate, 23% commercial and 4% consumer and other.
Quarter-end deposit balances were consistent; however, the mix has improved, favoring relationship deposits and a reduction in more expensive term deposits. Demand deposits increased by 9% compared to the previous year, while term deposits decreased by 46%. Total deposits remained stable at $500 million compared to the first quarter of 2022.
Other comprehensive income, a component of shareholders’ equity, was affected by the rise in interest rates affecting the market value of securities. No reduction in value exists within the securities portfolio. The share buyback program implemented in November 2021 was finalized in the second quarter and another was announced on June 15, 2022; the third plan issued globally for the bank holding company.
Interest rate hikes implemented by the Federal Open Market Committee (FOMC), primarily in the second quarter, had a positive impact on interest income. Interest expense decreased due to an improvement in the balance of term deposits on transactional accounts. The ALLL remained adequate at 1.21%; therefore, no provision charge was recorded in the first half of 2022. Continued loan growth will impact the level of the provision.
Non-performing assets to total assets were 0.72%, and the Bank’s Texas ratio, a measure of problem loans and bank-owned properties to capital, ended at 4.7. %. Capital levels remained above regulatory capital requirements.
“The Bank was well positioned for the interest rate increases implemented by the FOMC, and we continue to closely monitor the deposit rate environment. Thanks to the hard work of our bankers, we achieved substantial growth lending during the quarter while improving our deposit rate. Both of these factors contributed to an improved net interest margin as we redeployed our excess cash from overnight funds into higher yielding loans.” , said John Manolides, President and CEO..
About Commencement Bancorp, Inc.
Commencement Bancorp, Inc. is the holding company of Commencement Bank, headquartered in Tacoma, Washington. Commencement Bank was established in 2006 to provide traditional, reliable and sustainable banking services in and around Pierce, King and Thurston counties. Their team of experienced banking experts focus on personal attention, flexible service and building strong client relationships through cutting-edge technology as well as traditional delivery systems. As a local bank, Commencement Bank is deeply committed to the community. For more information, please visit www.commencementbank.com. For more information on CBWA trading, please visit www.otcmarkets.com.
For further discussion, please contact the following:
John E. Manolides, CEO | 253-284-1802
Nigel L. English, President and Chief Operating Officer | 253-284-1801
Thomas L. Dhamers, Executive Vice President and Chief Financial Officer | 253-284-1803
Safe Harbor Forward-Looking Statement: This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Commencement Bancorp, Inc.’s projections, estimates, plans and expectations regarding future results and can be identified by words such as “believe”, “intend”, “estimate”, ” probable”, “anticipate”, “expect”, “look forward to” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which, due to their forward-looking nature, are difficult to predict. Investors should not place undue reliance on forward-looking statements and should consider factors that could cause differences to arise, including, but not limited to, the degree of competition from traditional and non-traditional competitors, declining real estate markets, an increase in unemployment or sustained high levels. unemployment; changes in interest rates; higher than expected costs to integrate acquisitions; adverse changes in local, national and international economies; changes in Federal Reserve actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reforms, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes in the quality of the loan portfolio and our ability to successfully resolve asset issues; the impact of technological advances; changes in tax laws; and other risk factors. Commencement Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may occur after the date of this release.
THE SOURCE: Launch Bancorp, Inc.
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