Commonwealth Business Bank ("CBB" or the "Company")
(OTCBB: CWBB), a new full-service commercial bank in the
Miracle Mile area, today announced its unaudited financial results for
the seven-month period ending September 30, 2005.
Since opening its doors on March 9, 2005 with $23.1 million in capital, the Bank achieved three milestones in the third quarter 2005:
-- Total assets surpassed $100.0 million to $122.7 million
-- Total net loans reached $62.5 million
-- Total deposits increased to $101.8 million
Compared to the second quarter ending June 30, 2005, total assets, total net loans, and total deposits increased 60%, 78%, and 84%, respectively as of September 30, 2005. For the seven-month period of operations in 2005, the Company reported a net loss of $2.1 million or $0.89 per common share. The year-to-date net loss included a provision for loan losses of $844,000 and the amortization of the entire organization cost of $507,000.
"We are pleased with the progress in our second full quarter of operations," said Wun Hwa (Jack) Choi, President and CEO of Commonwealth Business Bank. "It is noteworthy that we have achieved a solid base of profitability during this period. Operating income has been close to positive on a monthly basis and profitability should continue to improve in the next quarter, given that CBB is asset sensitive and we are in a rising interest rate environment."
"We are delighted to have exceeded $100 million in assets as of September 30, 2005. More important than this milestone is our talented staff's confidence that our strategy is a proven success in the market. During the initial period, the `can-do' attitude throughout our organization has been our most powerful competitive tool. I am certain that our organization has already passed that `beginning' stage and is evolving smoothly to the next stage, of becoming an established player in our marketplace.
"One of the challenges in our local market is an unacceptable tolerance for high deposit pricing. The local certificate of deposit market is generally higher, sometimes significantly higher, than that of the wholesale deposit market. This inexplicable pricing can be attributed to the market-share-driven strategy of some of our competitors. While this trend puts cost pressures on us as well, we have taken the initiative to secure alternative funding sources early on. We will compete intelligently with core deposits and will explore non-core funding sources when appropriate.
"Our market may experience some corrections in growth and asset quality in view of the continued measured interest rate increases and prospects of a softening economy. Our commitment to sound risk management calls for more conservative growth in this current quarter. We will watch the development of the market before committing to takeoff again on a large scale."
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions, (3) competition in the Company's defined market, (4) the Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.
Since opening its doors on March 9, 2005 with $23.1 million in capital, the Bank achieved three milestones in the third quarter 2005:
-- Total assets surpassed $100.0 million to $122.7 million
-- Total net loans reached $62.5 million
-- Total deposits increased to $101.8 million
Compared to the second quarter ending June 30, 2005, total assets, total net loans, and total deposits increased 60%, 78%, and 84%, respectively as of September 30, 2005. For the seven-month period of operations in 2005, the Company reported a net loss of $2.1 million or $0.89 per common share. The year-to-date net loss included a provision for loan losses of $844,000 and the amortization of the entire organization cost of $507,000.
"We are pleased with the progress in our second full quarter of operations," said Wun Hwa (Jack) Choi, President and CEO of Commonwealth Business Bank. "It is noteworthy that we have achieved a solid base of profitability during this period. Operating income has been close to positive on a monthly basis and profitability should continue to improve in the next quarter, given that CBB is asset sensitive and we are in a rising interest rate environment."
"We are delighted to have exceeded $100 million in assets as of September 30, 2005. More important than this milestone is our talented staff's confidence that our strategy is a proven success in the market. During the initial period, the `can-do' attitude throughout our organization has been our most powerful competitive tool. I am certain that our organization has already passed that `beginning' stage and is evolving smoothly to the next stage, of becoming an established player in our marketplace.
"One of the challenges in our local market is an unacceptable tolerance for high deposit pricing. The local certificate of deposit market is generally higher, sometimes significantly higher, than that of the wholesale deposit market. This inexplicable pricing can be attributed to the market-share-driven strategy of some of our competitors. While this trend puts cost pressures on us as well, we have taken the initiative to secure alternative funding sources early on. We will compete intelligently with core deposits and will explore non-core funding sources when appropriate.
"Our market may experience some corrections in growth and asset quality in view of the continued measured interest rate increases and prospects of a softening economy. Our commitment to sound risk management calls for more conservative growth in this current quarter. We will watch the development of the market before committing to takeoff again on a large scale."
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions, (3) competition in the Company's defined market, (4) the Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.
© 2005 Business Wire
