Commonwealth Business Bank (OTCBB: CWBB) today reported net loss available to common stockholders of $538,000 or ($0.17) per diluted share for the second quarter of 2010.

?Our ongoing strategic focus is on aggressive management of asset quality and controlled growth of earning assets, and we are seeing encouraging trends,? commented Jack Choi, President & CEO. ?We are actively promoting dialogue with borrowers and reinforcing workout capability as well as performing early detection and resolution of problem loans. These coupled with slow but progressive economic recovery contributed to stabilizing loan delinquencies and non-performing loans. During the quarter, we improved core earnings and had steady growth of loan inventory and funding bases. Capital remained solid and liquidity position was further strengthened. We expect these trends to continue for the remainder of the year and provide momentum for future higher returns.?

Second Quarter 2010 Highlights

  • Net loss available to common stockholders was $538,000 or ($0.17) per diluted share compared with net loss of $354,000 or ($0.12) per diluted share in previous quarter 2010, and $562,000 or ($0.18) per diluted share year-over-year.
  • Net interest margin decreased 10 basis points to 3.27% from previous quarter, due to reversal of interest on non-accrual loans, but increased 59 basis points from prior year, mainly from reduction in cost of funds.
  • Non-interest income increased $472,000 and $210,000 from previous quarter and year-over-year, respectively, due to an increase in gain on sale of SBA loans and fee income.
  • Non-interest expense decreased $44,000 from previous quarter and $86,000 year-over-year.
  • Total assets grew 1.09%, or $4.0 million, to $367.3 million from previous quarter.
  • Total deposits increased 2.62%, or $7.8 million, to $306.3 million.
  • Gross loans increased 3.38%, or $9.3 million, to $283.9 million.
  • ALLL increased to 2.43% of gross loans compared to 2.23% at 3/31/2010 and 2.28% at 12/31/09.
  • Non-performing loans were 2.61% of gross loans at 6/30/2010 from 2.99% at 3/31/2010 and 0.09% at 12/31/09.
  • Net charge offs increased to 2.95% of average loans on an annualized basis from 2.90% in previous quarter and 2.29% from prior year.
  • No OREOs.
  • Well capitalized with the leverage ratio of 12.67%, tier one capital ratio of 15.47% and total risk-based capital ratio of 16.73%.
  • Tangible common equity to tangible assets of 11.00%.
  • Efficiency ratio decreased to 49.05% compared to 59.83% of previous quarter and 71.10% of the prior year.

BALANCE SHEETS
($ in thousands, except per share amounts)
             
June 30, 2010

March 31, 2010

December 31, 2009

 

 

Assets
Cash & due from banks $ 3,394 $ 3,781 $ 3,661
Interest-bearing due from banks 54,937 52,398 27,508
Fed funds sold - - -
Investment securities 19,434 27,363 28,321
Total Loans 283,881 274,612 271,401
Allowance for loan losses (6,887 ) (6,137 ) (6,188 )
Net loans 276,994 268,475 265,213
FRB & FHLB Stocks 2,960 2,863 2,863
Accrued interest receivable 1,012 1,290 1,101
Premises and equipments, net 1,254 1,290 1,356
Customer liability on acceptances - - 391
Other assets   7,347     5,914     5,763  
Total Assets $ 367,332   $ 363,374   $ 336,177  
 
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 36,084 $ 38,029 $ 34,341
Interest-bearing deposits 270,247 260,491 241,223
Total deposits 306,331 298,520 275,564
FHLB advance 9,000 9,000 9,000
Other Borrowings 2,242 5,151 -
Accrued interest payable 609 1,117 961
Bank liability on acceptances - - 391
Other liabilities 1,056 1,077 1,501
Total Liabilities 319,238 314,865 287,417
Total shareholders' equity   48,094     48,509     48,760  
Total Liabilities and Shareholders' Equity $ 367,332   $ 363,374   $ 336,177  
Book value per common share $ 13.02 $ 13.16 $ 13.24
 

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© Business Wire - 2010

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STATEMENTS OF OPERATIONS
($ in thousands, except per share amounts)
           
Three Months Ended
June 30, 2010

March 31, 2010

June 30, 2009
Interest income $ 4,100 $ 3,987 $ 3,774
Interest Expense 1,161 1,168 1,650
Net interest income 2,939 2,819 2,124
Provision for loan losses 2,761 1,820 1,482
Non interest income 757 285 547
Non interest expense 1,813 1,857 1,899
Income before income taxes (878 ) (573 ) (710 )
Provision for income taxes   (356 )   (234 )   (275 )
Net income (loss) $ (522 ) $ (339 ) $ (435 )
Dividend and discount accretion on preferred stock $ (16 ) $ (15 ) $ (127 )
Net income (loss) available to common stockholders $ (538 ) $ (354 ) $ (562 )
 
Basic EPS $ (0.17 ) $ (0.12 ) $ (0.18 )
Diluted EPS $ (0.17 ) $ (0.12 ) $ (0.18 )
 
INCOME STATEMENT RATIOS
Return on average assets -0.56 % -0.40 % -0.54 %
Return on average equity -4.28 % -2.80 % -3.58 %
Net interest margin 3.27 % 3.37 % 2.68 %
Efficiency ratio 49.05
COMMONWEALTH BUSIN : Australia's Commonwealth Bank eyeing BankWest: report RE