Commencement Bank : Fourth Quarter Financials

Jan 24, 2019

Commencement Bank (OTCQX:CBWA) reported net income of $5,036,000 and $1.34 per share for 2018, compared to $2,120,000 and $0.55 per share for 2017. Throughout 2018, the Bank continued to benefit from efficiencies and economies of scale from the 2016 merger with Thurston First Bank along with the decreased corporate tax rate from 34% to 21%.

The Bank's total assets grew 9% to $357.5 million at year-end 2018 as compared to $327.8 million for 2017. Total loans at year-end 2018 increased to $268.1 million as compared to $254.7 million one-year earlier. Total deposits increased to $311.9 million as compared to $283.7 million for 2017. Additionally, the Bank paid its first-ever stock dividend of 10% per share on February 15, 2018

2018 Financial Highlights:

• Total assets increased 9% to $357.5 million as compared to $327.8 million as of December 31, 2017.
• Total loans grew 5% to $268.1 million as compared to $254.7 million for the same period 2017.
• Total deposits increased by 10% to $311.9 million as compared to $283.7 million as of year-end 2017.
• Net interest margin was 4.72% for the year as compared to 4.23% for the same period in 2017.
• Tangible book value per share increased to $10.76 from $9.46 one-year earlier.
• The efficiency ratio decreased to 56.7% for the year as compared to 62.1% for the same period in 2017.
• The Texas Ratio, a measurement of nonperforming assets to capital, was 0.00% for 2018 compared to 0.01% the prior year.
• All capital ratios continued to exceed regulatory requirements.

'We could not be more pleased with the Bank's performance in 2018, as we experienced growth and record earnings. In addition to our financial performance, we enhanced our leadership structure by elevating existing managers to the senior management team. This transition helped to strengthen our position by incorporating new perspectives on the future growth and direction of the Bank,' said H.R. 'Hal' Russell, Chief Executive Officer.

Commencement Bank's 2018 Annual Meeting will be held on Tuesday, April 23, 2019.

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Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Commencement Bank's projections, estimates, plans and expectations of future results and can be identified by words such as 'believe,' 'intend,' 'estimate,' 'likely,' 'anticipate,' 'expect,' 'looking forward,' and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve's actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Commencement Bank undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.