Finance for the third quarter 2022:
Total assets were $554 million at the end of the quarter ended September 30, 2022.
Total loans increased $44.2 million, or 13%, compared to a year earlier. Loan growth was recorded at 14.5% per year.
Total savings were $502.3 million for the third quarter, up 6% year over year.
Interest-free deposits increased by 22% year-on-year, and by 21% compared to September 2021. The increase was 3% from the second quarter of 2022 to the third quarter of 2022.
The revenue was the highest at $1.8 million for the third quarter of 2022 compared to $1.5 million a year earlier. Annual revenue was $3.9MM, 29% higher than September 2021 revenue.
Earnings per share were $0.45 compared to $0.34 a year ago.
Average return on assets increased to 1.24% for the quarter compared to 1.04% for the third quarter of 2021.
The Bank remains healthy with a risk-based capital ratio of 13.69%.
TACOMA, WA / ACCESSWIRE / November 4, 2022 / Commencement Bancorp, Inc. (OTCQX:CBWA) reported quarterly earnings of $1.8 million, or $0.45 per share, for the quarter ending September 30, 2022. That was up 22% from $1.5 million last year. of the third quarter 2021. and 63% compared to $ 1.1 million in the previous quarter. Interest income benefited from the Federal Open Market Committee’s (FOMC) rapid rate hike, while interest expense fell 38% year over year. Interest income before provisions was $5.1 million compared to $4.4 million a year earlier, an increase of 16%. Non-interest income has benefited from a non-recurring receipt of a death benefit from a Bank Owned Life Insurance (BOLI) payment. Non-interest expenses increased from additional staff for operational purposes and future staff increases for strategic initiatives are expected.
Total assets were $554 million for the third quarter of 2022, compared to $548 million a year earlier. Net of Paycheck Protection Program (PPP), loans increased 18.2% from $ 323.7 million, and ended the third quarter with $ 395.8 million. PPP loan forgiveness is nearing completion, and funds have been steadily reinvested into more traditional commercial and consumer loans. Loan production remained strong during the year.
Deposits at the end of the quarter were $502 million, a slight increase from the third quarter of 2021. Non-interest bearing deposits increased 21% from a year earlier, representing 35 % of total stock. This increase reflects the success of creating new deposit relationships. Time deposits decreased by 38%, resulting in an overall improvement in the mix of the deposit portfolio and cost of funds.
The legal capital remains well with a strong income. The expansion of the securities portfolio during 2021, along with the FOMC rate hike in 2022, impacted other income; however, no losses were identified.
Net profit rose 37% to 3.68% from 3.31% a year earlier. Last year, interest rates increased by 55 basis points. The Bank is well positioned for a growth environment and benefited from the recent FOMC rate hike. Funding rates remain favorable but the rate of funding competition is increasing.
Non-performing assets in total assets were 0.53%, and the Bank’s Texas Ratio, a measure of problem loans and bank assets to capital, remained at 4.7%. Based on the growth of the loan portfolio, a provision of $ 75K for loan losses and losses was recorded in the third quarter of 2022, the first for the year .
“This is the quarter to start with the highest revenue recorded in the history of the Bank. Our team continues to grow as we enter the end of 2022 and focus on exploiting the market in front of us .” said John Manolides, chief executive.
The history of Commencement Bancorp, Inc.
Commencement Bancorp, Inc. is the holding company of Commencement Bank, headquartered in Tacoma, Washington. Commencement Bank was formed in 2006 to provide traditional, reliable and sustainable banking in and around Pierce, King, and Thurston counties. Their team of experienced banking professionals focuses on personal attention, flexible service, and building strong customer relationships through state-of-the-art technology and traditional delivery system. As a local bank, Commencement Bank is deeply committed to the community. For more information, please visit www.commencementbank.com. For information related to CBWA marketing, please visit www.otcmarkets.com.
For further discussion please contact the following:
John E. Manolides, Chief Executive | 253-284-1802
Nigel L. English, President & Chief Operating Officer | 253-284-1801
Thomas L. Dhamers, Executive Vice President & Chief Financial Officer | 253-284-1803
Safe Harbor Forward-Looking Statements: This news release contains comments or information that constitute forward-looking statements (within the meaning of the Safe Harbor Amendment Act of 1995) that are based on forward-looking statements. at a time when there are many risks and uncertainties. Forward-looking statements describe Commencement Bancorp, Inc.’s forecasts, estimates, plans and expectations of future results and may be identified by words such as “believe”, “estimate”, “estimate”, “may,” “anticipate,” “anticipate,” “anticipate,” and other similar expressions. They are not a guarantee of future success. Actual results may differ materially from the results expressed in these forward-looking statements, which are difficult to predict due to their forward-looking nature. Investors should not place undue reliance on forward-looking statements, and should consider factors that may cause differences including but not limited to the level of competition from traditional and non-traditional competitors. Commonly, the housing market declines, unemployment increases or persistently high levels. unemployment; changes in interest rates; larger-than-expected acquisition costs, adverse changes in local, national and international economies; changes in the actions of the Federal Reserve that affect monetary and fiscal policy; changes in legislative or regulatory action or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; requests for products and services; changes in the quality of our loan portfolio and our ability to be successful in our resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Commencement Bancorp, Inc.
SOURCE: Commencement Bancorp, Inc. (WA)
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