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CommerceWest Bank Reports 22% Loan Growth, 27% Non-interest Bearing Deposit Growth, and a 20% increase in Net Interest Income for the Year Ended December 31, 2014.

IRVINE, Calif., Feb. 4, 2015 /PRNewswire/ -- CommerceWest Bank(OTCBB: CWBK) reported net income for the twelve months ended December 31, 2014 of $5,246,000 or $1.21 per common share, compared with net income of $4,538,000 or $1.01 per common share for the twelve months ended December 31, 2013, an EPS increase of 20%.

Key Financial Results for the year ended December 31, 2014:

* Net interest income of $14.2 million, up 20%

* Net interest margin of 4.40% up from 4.07%, an increase of 8%

* Net income of $5.3 million, up 16%

* Diluted EPS of $1.21, up 20%

* Total loan growth of $51.8 million, up 22%

* Non-interest bearing deposit growth of $45.4 million, up 27%

* Total asset growth of $58.2 million, up 16%

* Nonperforming assets as a percent of total assets of 0.00%

Mr. Ivo Tjan, Chairman and CEO commented on the financial results, "CommerceWest is positioned well to continue to grow quality loans and non-interest bearing deposit in 2015. We are pleased with the Bank's asset quality, which complements our fortress balance sheet approach. To have zero non-performing assets for two consecutive years is quite an achievement, especially while growing loans 22% for the year." Mr. Tjan commented further, "There was also continued growth in non-interest bearing deposits during the year. A 60% non-interest bearing to total deposit ratio reduces our cost of funds, which allows us to stay competitive in the market place. With the strength of our business model, balance sheet and our talented team; we will continue to assist more small and mid-size businesses in southern California to achieve their growth objectives in 2015."

Total assets increased $58.2 million as of December 31, 2014, an increase of 16% as compared to the same period one year ago. Total loans increased $51.8 million as of December 31, 2014, an increase of 22% over the prior year. Cash and due from banks increased $24.7 million or 43% from the prior year. Total investment securities decreased $18.7 million or 30% from the prior year.

Total deposits increased $48.6 million as of December 31, 2014, an increase of 16% from December 31, 2013. Non-interest bearing deposits grew $45.4 million as of December 31, 2014, an increase of 27% over the prior year. Non-interest bearing deposits as a percent of total deposits were 60% as of December 31, 2014 as compared to 55% one year ago.

Stockholders' equity on December 31, 2014 was $54.8 million, an increase of 3% as compared to stockholders' equity of $53.3 million a year ago.

Interest income was $15,383,000 for the twelve months ended December 31, 2014 as compared to $13,364,000 for the twelve months ended December 31, 2013, an increase of 15%. Interest expense was $1,227,000 for the twelve months ended December 31, 2014 as compared to $1,553,000 for the twelve months ended December 31, 2013, a decrease of 21%.

Net interest income for the twelve months ended December 31, 2014 was $14,156,000 as compared to $11,811,000 for the twelve months ended December 31, 2013, an increase of 20%. The net interest margin increased for the twelve months ended December 31, 2014. It increased from 4.07% in 2013 to 4.40% in 2014, an increase of 8%.

Provision for loan losses for the twelve months ended December 31, 2014 was $530,000 compared to $280,000 for the twelve months ended December 31, 2013, an increase of 89%. As of December 31, 2014, the Bank had no past due loans, no non-accrual loans and no OREO. The non-performing asset to total asset ratio was zero at year end.

Non-interest income for the twelve months ended December 31, 2014 was $3,214,000 compared to $4,312,000 for the same period last year, a decrease of 25%.

Non-interest expense for the twelve months ended December 31, 2014 was $12,437,000 compared to $11,305,000 for the same period last year, an increase of 10%.

The Bank's efficiency ratio for the twelve months ended December 31, 2014 was 71.06% compared to 67.36% in 2013, which represents an increase of 5%. The efficiency ratio illustrates, that for every dollar the Bank made for the twelve month period ending December 31, 2014, the Bank spent $0.71 to make it, as compared to $0.67 one year ago.

Capital ratios for the Bank remain well above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2014, the leverage ratio was 12.72%, the tier 1 capital ratio was 16.34%, and the total risk-based capital ratio was 17.58%.

CommerceWest Bank is a California based commercial bank with a unique vision and culture of focusing exclusively on the business community. Founded in 2001 and headquartered at 2111 Business Center Drive in Irvine, CA. The Bank serves businesses throughout California with an emphasis on clients in Orange, San Diego, Los Angeles, and Riverside Counties. We are a full service business bank and offer a wide range of commercial banking services, including concierge services, remote deposit solution, online banking, lines of credit, working capital loans, commercial real estate lending, SBA lending, and cash and treasury management services.

Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services.

Please visit www.cwbk.com to learn more about the bank. "BANK ON THE DIFFERENCE"

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.


YEAR END REPORT - DECEMBER 31, 2014 (Unaudited)


BALANCE SHEET


Increase


(dollars in thousands)


Dec 31, 2014


Dec 31, 2013


(Decrease)


ASSETS


Cash and due from banks


81,885


57,214


43%


Securities


43,308


61,987


-30%


Loans


282,722


230,944


22%


Less allowance for loan losses


(3,570)


(3,001)


19%


Loans, net


279,152


227,943


22%


Bank premises and equipment, net


569


484


18%


Other assets


17,720


16,758


6%


Total assets


422,634


364,386


16%


LIABILITIES AND STOCKHOLDERS' EQUITY


Non-interest bearing deposits


214,415


169,062


27%


Interest bearing deposits


142,306


139,049


2%


Total deposits


356,721


308,111


16%


Total borrowings


7,000


-


100%


Other liabilities


4,105


2,991


37%


367,826


311,102


18%


Stockholders' equity


54,808


53,284


3%


Total liabilities and stockholders' equity


422,634


364,386


16%


CAPITAL RATIOS:


Tier 1 leverage ratio


12.72%


13.69%


-7%


Tier 1 risk-based capital ratio


16.34%


18.77%


-13%


Total risk-based capital ratio


17.58%


19.98%


-12%


STATEMENT OF EARNINGS


For the Twelve Months Ended


Increase


(dollars in thousands except share and per share data)


Dec 31, 2014


Dec 31, 2013


(Decrease)


Interest income


15,383


13,364


15%


Interest expense


1,227


1,553


-21%


Net interest income


14,156


11,811


20%


Provision for loan losses


530


280


89%


Non-interest income


3,214


4,312


-25%


Non-interest expense


12,437


11,305


10%


Earnings before income taxes


4,403


4,538


-3%


Income taxes


(843)


-


-100%


Net income


5,246


4,538


16%


Basic earnings per share


$ 1.26


$ 1.05


20%


Diluted earnings per share


$ 1.21


$ 1.01


20%


Return on Assets


1.39%


1.32%


5%


Return on Equity


9.71%


8.66%


12%


Efficiency Ratio


71.06%


67.36%


5%


Net Interest Margin


4.40%


4.07%


8%


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