Commencement Bancorp, Inc. (CBWA) Announces 2023 First Quarter Earnings

2023 First Quarter Financial Highlights:

• Total assets grew to $582.7 million, or 6%, compared to one year prior.
• Loans grew by 26% from prior year, representing the 4^th consecutive increase in quarterly loan balances.
• Total deposits increased 3% compared to year-end 2022 and 5% compared to first quarter 2022.
• Interest income was strong at $6 million, with a 45% increase year-over-year.
• Non-interest income increased 38% compared to first quarter 2022.
• Capital remained strong with a 9.95% leverage ratio and 14.16% total capital ratio. All capital ratios were above well-capitalized regulatory requirements.
• Welcomed a new commercial banking team previously with Columbia Bank.

TACOMA, WA / ACCESSWIRE / May 5, 2023 / Commencement Bancorp, Inc. (OTCQX:CBWA) reported quarterly net income of $720 thousand, or $0.18 per share, for the quarter ending March 31, 2023, compared to $983 thousand and $0.24 per share for first quarter 2022. First quarter 2023, recorded net interest income, after provisions for credit losses, of $4.4 million. This represents an increase of 12% compared to one year prior.

Total assets ended the quarter at $582.7 million, an increase of 6% from first quarter 2022. Total loan balances were $435.1 million at quarter end, an increase of 26% compared to first quarter 2022, and a record in loan growth year-over-year. Total deposits increased 5%, to $517.2 million, compared to first quarter 2022. While 5% growth appears modest, first quarter deposit growth and retention were difficult for the banking industry due to the fallout from bank failures in California and New York. Banks across the country were challenged with retaining deposits, especially community-based banks, as media surrounding the incidents caused fear that smaller institutions were not as protected as larger banks. The Bank's staff was diligent with client outreach and retention efforts, minimizing the impact to the deposit portfolio.

In response to the liquidity circumstances that the banking industry faced last quarter, depositors across the country were in search of security for their funds, especially beyond the standard Federal Deposit Insurance Corporation (FDIC) insurance limit. Commencement experienced a shift in deposit mix due to the public response; therefore, funds were re-allocated from demand deposit products into interest bearing products that offer additional FDIC insurance. Interest expense recognized a notable increase due to this; however, total deposits were sustained and experienced a slight increase.