Commencement Bancorp, Inc Announces Third Quarter Financials
Commencement Bancorp, Inc. Announces Third Quarter Financials
Commencement Bancorp, Inc. (OTCQX:CBWA) reported quarterly net income of $1.46 million, or $0.35 per share, for the quarter ending September 30, 2021, compared to $1.21 million and $0.29 per share for third quarter 2020. Net interest income increased by 18% compared to one year prior. Total assets increased 7% to $548 million in third quarter 2021 from $511.4 million in third quarter 2020.
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Total loans decreased to $352.4 million, or 17%, when compared to third quarter 2020. As expected, the forgiveness of PPP loans resulted in a decrease in total loans; however, retail loan growth increased through the COVID-19 challenged economy. Nonperforming assets to total assets were 0.51% and the Bank’s Texas Ratio, a measurement of problem loans and bank-owned properties to capital, was 4.80%. The Bank’s loan portfolio remained well-diversified at 66% commercial real estate, 30% commercial, and 4% consumer and other. Industry concentrations are also monitored and remained well-diversified.
Total deposits increased by $33.5 million, or 7%, from third quarter 2020. The growth in relationship/transactional account balances has been a very positive development. Higher cost time deposit balances have declined, improving the deposit mix, and resulting cost of funds. Deposit interest expense declined for eight consecutive quarters despite a 52% increase in balances.
“As we move further from the initial challenges resulting from the pandemic, we are shifting our focus to new avenues for growth. Serving our clients and business community members during the paycheck protection loan program created opportunities for us to deepen existing relationships and foster new ones. Additionally, recent announcements within our local banking landscape have opened significant market share opportunities. Commencement will leverage these opportunities through innovation, collaboration, and continuing to do what we do best, serving and investing in our local communities,” said John Manolides, President & Chief Executive Officer.
2021 Third Quarter Financials:
- Total assets increased $36.7 million, or 7%, to $548 million on September 30, 2021 from $511.4 million for the period ending September 30, 2020.
- Loans decreased 17% to $352.4 million, resulting from Paycheck Protection Program (PPP) loan forgiveness.
- Total deposits increased $33.5 million, or 7%, from third quarter 2020. Deposit mix continued to improve as interest bearing demand and savings accounts increased $53.9 million, or 26%, and time deposits decreased 23% to $81.2 million.
- Tangible book value per share increased to $12.73 for the quarter compared to $11.75 one year earlier.
- Net interest income, after provision for credit losses, increased 18% to $4.4 million compared to $3.7 million one year prior.
- Interest expense decreased 42% and represents a total cost of funds of 0.26%, down from 0.49% one year earlier.