CW Bancorp Reports 2024 Full Year Earnings of $13.1 million, EPS of $4.30, ROA of 1.19% and ROTE of 16.69%

CW Bancorp (OTCQX: CWBK), the parent company (“the Company”) of CommerceWest Bank (the “Bank”) reported consolidated net income for the fourth quarter of 2024 of $3,940,000 or $1.30 per diluted share as compared to $3,545,000 or $1.13 per diluted share for the fourth quarter of 2023, an EPS increase of 16%. The consolidated net income for the twelve months ended December 31, 2024 was $13,148,000 or $4.30 per diluted share as compared to $17,611,000 or $5.39 per diluted share for the twelve months ended December 31, 2023, an EPS decrease of 20%.

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Key Financial Results for the three months ended December 31, 2024:

— EPS of $1.30 up 16%

— Net income of $3.9 million up 11%

— Quarter over quarter net income growth of 26%

— Return on Assets of 1.31%

— Return on Tangible Equity of 18.95%

— Quarter over quarter loan growth of 5.46%

— Quarter over quarter deposit growth of 31%

— ACL to total loans ratio of 1.45%

— Liquid funds to total deposits ratio of 35%

— No outstanding FRB or FHLB borrowings

— Leverage ratio of 11.16% and total risk-based capital ratio of 17.92%

— 60 quarters of consecutive profits

Key Financial Results for the twelve months ended December 31, 2024:

— EPS of $4.30

— Net income of $13.1 million

— Return on Assets of 1.19%

— Return on Tangible Equity of 16.69%

— Loan growth of $68.6 million or 9.5%

— Deposit growth of $183.9 million or 16%

— Assets growth of $188.6 million or 14.5%

Mr. Ivo A. Tjan, Chairman and CEO said, “Our strong financial performance in 2024 reflects the power of our unique, client-centric business model. With 9.5% loan growth, 16% deposit growth, and 14.5% total asset growth, we continue to demonstrate the value of customized financial solutions tailored to small and mid-sized businesses. We also had solid net income growth quarter over quarter of 26% and 11% year over year.” He continued, “As we enter 2025, we remain cautiously optimistic despite ongoing economic headwinds, including persistent inflationary pressures. Our ability to adapt and innovate positions us well for the future. Most importantly, our success is made possible by our exceptional team of dedicated professionals who bring our mission to life every day. Their expertise, commitment, and passion for serving the business community are what truly set us apart.”

Total assets increased $188.6 million as of December 31, 2024, an increase of 14.5% as compared to the same period one year ago. Total loans increased $68.6 million as of December 31, 2024, an increase of 9.5% from the prior year. Cash and due from banks increased $115.9 million or 30% over the prior year. Total investment securities increased $4.1 million, an increase of 3% from the prior year.

Total deposits increased $183.9 million as of December 31, 2024, an increase of 16% from December 31, 2023. Non-interest-bearing deposits increased $65.7 million as of December 31, 2024, an increase of 12% from the prior year. Interest bearing deposits increased $118.2 million as of December 31, 2024, an increase of 19% from the prior year.

Interest income was $14,750,000 for the three months ended December 31, 2024, as compared to $12,964,000 for the three months ended December 31, 2023, an increase of 14%. Interest expense was $3,714,000 for the three months ended December 31, 2024, as compared to $3,167,000 for the three months ended December 31, 2023, an increase of 17%.

Interest income was $54,190,000 for the twelve months ended December 31, 2024, as compared to $52,185,000 for the twelve months ended December 31, 2023, an increase of 4%. Interest expense was $14,241,000 for the twelve months ended December 31, 2024, as compared to $11,468,000 for the twelve months ended December 31, 2023, an increase of 24%.

Net interest income for the three months ended December 31, 2024, was $11,036,000 as compared to $9,797,000 for the three months ended December 31, 2023, an increase of 13%. The net interest margin decreased for the three months ended December 31, 2024. It decreased to 3.86% in 2024 from 3.88% in 2023, a decrease of 1%. Net interest income for the twelve months ended December 31, 2024, was $39,949,000 as compared to $40,717,000 for the twelve months ended December 31, 2023, a decrease of 2%. The net interest margin decreased for the twelve months ended December 31, 2024. It decreased to 3.81% in 2024 from 3.87% in 2023, a decrease of 2%.

Provision for credit losses for the three months ended December 31, 2024, was $25,000 compared to zero provision for credit losses for the three months ended December 31, 2023. Provision for credit losses for the twelve months ended December 31, 2024, was $25,000 compared to a negative provision for credit losses of $1,326,000 for the twelve months ended December 31, 2023. This provision reversal was primarily due to a $3 million recovery on a previously charged off loan, which resulted in an overfunding of the allowance for credit losses that allowed the Bank to reverse provision expense during the twelve months ended December 31, 2023.

Non-interest income for the three months ended December 31, 2024, was $2,011,000 compared to $1,549,000 for the same period last year, an increase of 30%. Non-interest income for the twelve months ended December 31, 2024, was $6,166,000 compared to $6,381,000 for the same period last year, a decrease of 3%.

Non-interest expense for the three months ended December 31, 2024, was $7,617,000 compared to $6,367,000 for the same period last year, an increase of 20%. Non-interest expense for the twelve months ended December 31, 2024, was $27,798,000 compared to $24,087,000 for the same period last year, an increase of 15%.

The efficiency ratio for the three months ended December 31, 2024, was 58.12% compared to 55.82% in 2023, which represents an increase of 4%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2024, it cost $0.5812 to make it, as compared to $0.5582 one year ago. The efficiency ratio for the twelve months ended December 31, 2024, was 59.97% compared to 50.14% in 2023, which represents an increase of 20%.

Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of December 31, 2024, the tier 1 leverage ratio was 11.16%, the common equity tier 1 capital ratio was 16.67%, the tier 1 risk-based capital ratio was 16.67% and the total risk-based capital ratio was 17.92%.

CommerceWest Bank is determined to redefine banking for small and medium sized businesses by delivering on customized products and services. Founded in 2001 and headquartered in Irvine, California, the Bank serves businesses throughout the state of California with our digital banking platform. By employing a strategically selected team of experienced professionals, we will provide flexibility, create a complete, safe and sound banking experience for each client. We provide a wide range of commercial banking services, including remote deposit solution, NetBanker online banking, mobile banking, lines of credit, M&A / working capital loans, commercial real estate loans, SBA loans 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.

FOURTH QUARTER REPORT – December 31, 2024 (Unaudited)CW BANCORP %CONSOLIDATED BALANCE SHEET Increase(dollars in thousands) Dec 31, 2024 Dec 31, 2023 (Decrease)ASSETSCash and due from banks $ 503,368 $ 387,464 30%Securities available for sale 136,912 110,812 24%Securities held-to-maturity 28,581 50,610 -44%Loans 793,075 724,444 9%Less allowance for credit losses (ACL) (11,489) (11,533) 0%Loans, net 781,586 712,911 10%Bank premises and equipment, net 3,543 4,405 -20%Other assets 36,362 35,567 2%Total assets $ 1,490,352 $ 1,301,769 14%LIABILITIES AND STOCKHOLDERS' EQUITYNon-interest bearing deposits $ 613,877 $ 548,149 12%Interest bearing deposits 728,544 610,340 19%Total deposits 1,342,421 1,158,489 16%Subordinated debenture 50,000 50,000 0%Other liabilities 13,345 14,419 -7% 1,405,766 1,222,908 15%Stockholders' equity 84,586 78,861 7%Total liabilities and stockholders' equity $ 1,490,352 $ 1,301,769 14%Shares outstanding at end of period 2,990,223 3,096,360Book value per share $ 31.69 $ 28.41Total loans to total deposits 59.08% 62.53%ACL to total loans 1.45% 1.59%Nonperforming assets (non-accrual loans & OREO) $ 6,381 $ 4,144COMMERCEWEST BANK CAPITAL RATIOS:Tier 1 leverage ratio 11.16% 12.09%Common equity tier 1 capital ratio 16.67% 18.56%Tier 1 risk-based capital ratio 16.67% 18.56%Total risk-based capital ratio 17.92% 19.82%CW BANCORPCONSOLIDATED STATEMENT OF INCOME (Unaudited) Three Months Ended Increase For the Twelve Months Ended Increase(dollars in thousands except share and per share data) Dec 31, 2024 Dec 31, 2023 (Decrease) Dec 31, 2024 Dec 31, 2023 (Decrease)INTEREST INCOMELoans $ 10,856 $ 10,146 7% $ 40,690 $ 40,017 2%Investments 1,315 1,109 19% 4,799 4,309 11%Fed funds sold and other 2,579 1,709 51% 8,701 7,859 11%Total interest income 14,750 12,964 14% 54,190 52,185 4%INTEREST EXPENSEDeposits 3,245 2,698 20% 12,366 9,584 29%Subordinated debenture 469 469 0% 1,875 1,875 0%Other borrowings – – -100% – 9 -100%Total interest expense 3,714 3,167 17% 14,241 11,468 24%NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION 11,036 9,797 13% 39,949 40,717 -2%PROVISION FOR CREDIT LOSSES 25 – – 25 (1,326) -102%Non-interest income:NET INTEREST INCOME AFTER CREDIT LOSS PROVISION 11,011 9,797 12% 39,924 42,043 -5%NON-INTEREST INCOMEService Charges and Fees on Deposits 1,698 1,197 42% 4,932 5,088 -3%Loss on Sale of AFS Securities – – – – (166) -100%Other Fees 313 352 -11% 1,234 1,459 -15%NON-INTEREST EXPENSE 7,617 6,367 20% 27,798 24,087 15%EARNINGS BEFORE INCOME TAXES 5,405 4,979 9% 18,292 24,337 -25%INCOME TAXES 1,465 1,434 2% 5,144 6,726 -24%NET INCOME $ 3,940 $ 3,545 11% $ 13,148 $ 17,611 -25%Basic earnings per share $1.32 $1.13 17% $4.34 $5.46 -21%Diluted earnings per share $1.30 $1.12 16% $4.30 $5.39 -20%Return on Assets 1.31% 1.33% -2% 1.19% 1.58% -25%Return on Equity 18.27% 18.91% -3% 16.06% 23.85% -33%Return on Tangible Equity 18.95% 19.72% -4% 16.69% 24.88% -33%Efficiency Ratio 58.12% 55.82% 4% 59.97% 50.14% 20%CW BANCORPCONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended December 31, 2024 2023 Average Interest Yield / Average Interest Yield / Balance Income / Cost Balance Income / Cost Expense Expense (dollars in thousands)INTEREST EARNING ASSETSInt Bearing Due from Banks & FFS $ 203,392 $ 2,439 4.77% $ 114,418 $ 1,571 5.45%Investment Securities (1) 167,544 1,373 3.26% 155,688 1,168 2.98%Loans 766,581 10,856 5.63% 729,798 10,146 5.52%FHLB & Other Stocks 7,100 140 7.84% 7,100 138 7.71%Total interest-earning assets 1,144,617 14,808 5.15% 1,007,004 13,023 5.13%Noninterest-earning assets 54,295 53,211Total assets $ 1,198,912 $ 1,060,215INTEREST EARNING LIABILITIESInterest Bearing Deposits $ 452,811 $ 3,245 2.85% $ 377,481 $ 2,698 2.84%Other Borrowings – – – – – -Subordinated Debenture 50,000 469 3.75% 50,000 469 3.75%Total interest-earning liabilities 502,811 3,714 2.94% 427,481 3,167 2.94%Noninterest-earning liabilitiesDemand Deposits 595,705 543,772Other Liabilities 14,620 14,576Shareholders' Equity 85,776 74,386Total liabilities and shareholder's equity $ 1,198,912 $ 1,060,215Net Interest Spread $ 11,094 2.21% $ 9,856 2.19%Net Interest Margin 3.86% 3.88%Total Deposits $ 1,048,516 $ 3,245 1.23% $ 921,253 $ 2,698 1.16%Total Funding Costs $ 1,098,516 $ 3,714 1.35% $ 971,253 $ 3,167 1.29%(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rateCW BANCORPCONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Twelve Months Ended December 31, 2024 2023 Average Interest Yield / Average Interest Yield / Balance Income / Cost Balance Income / Cost Expense Expense (dollars in thousands)INTEREST EARNING ASSETSInt Bearing Due from Banks & FFS $ 155,785 $ 8,136 5.22% $ 141,213 $ 7,366 5.22%Investment Securities (1) 160,619 5,037 3.14% 159,280 4,582 2.88%Loans 732,500 40,690 5.55% 751,757 40,017 5.32%FHLB & Other Stocks 7,100 565 7.96% 6,924 493 7.12%Total interest-earning assets 1,056,004 54,428 5.15% 1,059,174 52,458 4.95%Noninterest-earning assets 52,899 56,858Total assets $ 1,108,903 $ 1,116,032INTEREST EARNING LIABILITIESInterest Bearing Deposits $ 398,704 $ 12,366 3.10% $ 399,390 $ 9,584 2.40%Other Borrowings – – – 181 9 4.97%Subordinated Debenture 50,000 1,875 3.75% 50,000 1,875 3.75%Total interest-earning liabilities 448,704 14,241 3.17% 449,571 11,468 2.55%Noninterest-earning liabilitiesDemand Deposits 564,223 578,427Other Liabilities 14,130 14,191Shareholders' Equity 81,846 73,843Total liabilities and shareholder's equity $ 1,108,903 $ 1,116,032Net Interest Spread $ 40,187 1.98% $ 40,990 2.40%Net Interest Margin 3.81% 3.87%Total Deposits $ 962,927 $ 12,366 1.28% $ 977,817 $ 9,584 0.98%Total Funding Costs $ 1,012,927 $ 14,241 1.41% $ 1,027,998 $ 11,468 1.12%(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

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SOURCE CW Bancorp

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