Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Companies  >  All News

News : Companies
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Commencement Bank : Second Quarter Financials

share with twitter share with LinkedIn share with facebook
07/31/2020 | 12:56pm EDT

Jul 31, 2020

Commencement Bank (OTCQX: CBWA) reported a net income of $580,000 or $0.14 per share for the quarter ending June 30, 2020. The significant factor in the reduction in net income was due to an additional contribution to the reserve for potential loan losses. At this point, no loans have defaulted due to the pandemic; however, it is logical to assume that the near stoppage of economic activity through the COVID-19 pandemic could have an impact on future loan losses.

During second quarter 2020, the Bank's balance sheet grew to unprecedented numbers as a result of our Paycheck Protection Program (PPP) activities. Commencement processed over 500 loans for approximately $115 million, servicing existing clients that requested a loan along with many other businesses that were left unserved by their previous banks. Federal Funds Sold grew appreciably from the additional deposits of the PPP loan fundings, additional deposit inflows from newly acquired clients, and the proceeds of the Paycheck Protection Program Liquidity Facility (PPPLF).

As a reflection of the PPP below market interest rate loans and effects of the emergency rate decreases implemented by the Federal Open Market Committee in March, net interest margin remained under pressure. Cost of funds were reduced during the quarter with further improvement expected in the third quarter. Margins are anticipated to increase as the PPP loans are forgiven and constitute a smaller percentage of the loan portfolio. The forgiveness process will also allow for increased recognition of processing fees, which are currently being amortized over the life of the PPP loans.

Despite the increase in asset size, capital remained very strong and significantly above regulatory definitions of well-capitalized.

In June, Commencement Bank shareholders approved the formation of a new bank holding company, Commencement Bancorp, Inc. Effective during third quarter 2020, Commencement Bancorp, Inc. began trading under the Bank's former ticker symbol CBWA on the OTC Markets premium trading platform, OTCQX. It is anticipated that this will aid the organization in its strategic growth initiatives and provide better access to capital markets.

'This has been an unprecedented quarter due to the impact COVID-19 has had on our economy. I am extremely proud of the dedication our team has shown as they truly embraced the essence of a community bank and provided over 500 Paycheck Protection Program loans to existing clients as well as many businesses whose banks failed to provide them with one. I admire the effort made by our staff as they assisted small businesses, their employees, and families through a time of great uncertainty,' said John Manolides, President & Chief Executive Officer.

back to top ▲

Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes 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 Bank's projections, estimates, plans and expectations of future results and can be identified by words such as 'believe,' 'intend,' 'estimate,' 'likely,' 'anticipate,' 'expect,' 'looking forward,' 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 because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve's actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Commencement Bank undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

Disclaimer

Commencement Bank published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 16:56:07 UTC

share with twitter share with LinkedIn share with facebook
Latest news "Companies"
12:04aHILLGROVE RESOURCES : Excellent Gold Recoveries from Kanmantoo
PU
12:04aVERITE : July 2020 Flash Report vs. LY
PU
12:04aHSBC : Announces tender offers for nine series of notes
PU
12:04aCHINA TOWER : Announcement of 2020 Interim Results
PU
12:04aKUNLUN ENERGY : Notice of Board Meeting
PU
12:03aSUMITOMO MITSUI FINANCIAL : JCB and Agribank to issue JCB Ultimate Credit and Debit Cards
AQ
12:02aINTERNATIONAL BUSINESS MACHINES : Coca-Cola European Partners Signs a Multiyear Agreement with IBM to Accelerate its Strategic Transformation Journey with Hybrid Cloud
PR
12:01aCOVID-19 IMPACTS : Global Military Battery Market Will Accelerate at a CAGR of Almost 4% Through 2020-2024 | Development of Efficient Battery Technologies to Boost Growth | Technavio
BU
12:01aAMAZON : Project Zero Launches in Seven New Countries
BU
12:01aCenobamate Designated Promising Innovative Medicine (PIM) by the UK's MHRA for Treatment of Drug-Resistant Focal-Onset Seizures in Adults
GL
Latest news "Companies"