Bancorp, Inc. (CBWA) Announces Third Quarter 2022 Financial Results


Results for the third quarter of 2022:

  • Total assets were $554 million for the quarter ended September 30, 2022.
  • Total loans increased by $44.2 million, or 13%, over the previous year. Loan growth has been recorded at 14.5% year-to-date.
  • Total deposits were $502.3 million for the third quarter, an increase of 6% year-to-date.
  • Non-interest bearing deposits were up 22% year-to-date and 21% from September 2021. A 3% increase was recorded from Q2 2022 to Q3 2022.
  • Net income hit a record high of $1.8 million for the third quarter of 2022, from $1.5 million a year earlier. Year-to-date profit of $3.9 million, 29% higher than year-to-date profit in September 2021.
  • Earnings per share were $0.45 compared to $0.34 a year earlier.
  • Return on average assets increased to 1.24% for the quarter, from 1.04% for the third quarter of 2021.
  • The Bank remains well capitalized with a Tier 1 Risk Based Capital ratio of 13.69%.

TACOMA, WA/ACCESSWIRE/November 4, 2022/ Bancorp, Inc. (OTCQX: CBWA) reported quarterly net income of $1.8 million, or $0.45 in earnings per share, for the quarter ending September 30, 2022. This represents an increase of 22 % compared to $1.5 million for the third quarter of 2021, and 63% compared to $1.1 million in the previous quarter. Total interest income benefited from rapid rate increases by the Federal Open Market Committee (FOMC), while interest expense was down 38% year-over-year. Net interest income before provision was $5.1 million, compared to $4.4 million a year earlier, an increase of 16%. Non-interest income benefited from a one-time receipt of a death benefit from a bank-held life insurance (BOLI) payout. Non-interest expense increased due to additional staff for operational purposes and future staff increases for strategic initiatives are expected.

Total assets were $554 million for the third quarter of 2022, up from $548 million a year ago. Net of Paycheck Protection Program (PPP) balances, loans increased 18.2% to $323.7 million, ending the third quarter at $395.8 million. The cancellation of PPP loans is nearing completion and funds have been steadily redeployed to higher-yielding traditional commercial and consumer loans. Loan production remained strong throughout the year.

Deposits at the end of the quarter were $502 million, a slight increase from the third quarter of 2021. Non-interest bearing deposits were up 21% from a year ago, representing 35% of total deposits. This increase reflects the success of generating new deposit relationships. Term deposits decreased by 38%, leading to an overall improvement in the composition of the deposit portfolio and a lower cost of funds.

Regulatory capital remains well capitalized on strong earnings. The expansion of the securities portfolio throughout 2021, coupled with the FOMC rate increases in 2022, impacted other comprehensive income; however, no losses were recorded.

The net interest margin increased by 37 basis points to 3.68% against 3.31% a year earlier. Since the beginning of the year, the net interest margin has increased by 55 basis points. The Bank is well positioned to weather rising rates and has benefited from the recent FOMC rate hikes. The cost of funds remained favourable, but competition over funding rates is intensifying.

Non-performing assets to total assets were 0.53%, and the Bank’s Texas ratio, a measure of problem loans and bank-owned properties to capital, remained at 4.7%. Based on loan portfolio growth, a $75,000 provision for loan and lease losses was recorded in the third quarter of 2022, the first of the year.

“It was a terrific quarter for Commencement, with the highest recorded net income in the history of the Bank. Our team continues to build momentum as we head into the final stretch of 2022 and we remain focused on exploiting the market opportunities available to us.” said John Manolides, Managing Director.

About Commencement Bancorp, Inc.
Commencement Bancorp, Inc. is the holding company of Commencement Bank, headquartered in Tacoma, Washington. Commencement Bank was established in 2006 to provide traditional, reliable and sustainable banking services in and around Pierce, King and Thurston counties. Their team of experienced banking experts focuses on personal attention, flexible service and building strong client relationships through cutting-edge technology as well as traditional delivery systems. As a local bank, Commencement Bank is deeply committed to the community. For more information, please visit For more information on CBWA trading, please visit

For further discussion, please contact the following:
John E. Manolides, Chairman and CEO | 253-284-1802
Nigel L. English, President and Chief Operating Officer | 253-284-1801
Thomas L. Dhamers, Executive Vice President and Chief Financial Officer | 253-284-1803

Safe Harbor Forward-Looking Statement: This press release contains comments or information that constitute 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 Bancorp, Inc.’s projections, estimates, plans and expectations regarding future results and can be identified by words such as “believe”, “intend”, “estimate”, ” probable”, “anticipate”, “expect”, “look forward to” 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, due to their forward-looking nature, are difficult to predict. Investors should not place undue reliance on forward-looking statements and should consider factors that could cause differences to arise, including, but not limited to, the degree of competition from traditional and non-traditional competitors, declining real estate markets, an increase in unemployment or sustained high levels. unemployment; changes in interest rates; higher than expected costs to integrate acquisitions; adverse changes in local, national and international economies; changes in Federal Reserve actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reforms, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes in the quality of the loan portfolio and our ability to successfully resolve asset issues; the impact of technological advances; changes in tax laws; and other risk factors. Launch Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statements to reflect the impact of events or circumstances that may occur after the date of this release.

Commencement Bank (WA), Friday 4th November 2022, Image from press release
Commencement Bank (WA), Friday 4th November 2022, Image from press release

THE SOURCE: Launch Bancorp, Inc. (WA)


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