CBOA Financial, Inc. Reports Consolidated Earnings of $1,522,000 in 4Q 2020
TUCSON, Ariz., Feb. 11, 2021 /PRNewswire/ -- CBOA Financial, Inc. (OTCMKTS:CBOF) (the "Company"), parent company of Commerce Bank of Arizona (the "Bank" or "CBAZ"), announced that consolidated after tax net income for quarter ending December 31, 2020 increased
Chris Webster, Bank President and Chief Executive Officer said "The economic and operating challenges of 2020 were unprecedented. I am extremely proud of our team and how we were able to maintain our exceptional customer service performance standards." Webster added, "Our financial metrics for the year were excellent. The Bank generated strong loan and deposit growth, Net Interest Margin and bottom line Net Income. And, we were able to re-align key non-interest costs which will benefit the Bank in the years to come."
Fourth Quarter 2020 Highlights
- After tax net income was up
233% quarter over quarter - Deposit growth was
$24.7 million , or8.9% for the quarter - Cost of funds improved 11 basis points during the quarter
Operational Highlights
Interest income was aided by recognized fee income of PPP loans that bolstered earnings by
The
The
A negative tax provision expense of
Balance Sheet
Total assets increased by
Traditional gross loans dropped
The allowance for loan losses totaled
Shareholders' equity increased to
Finally, Chairman Bill Assenmacher stated, "I am excited to announce that we have made two extremely well qualified additions to our Board of Directors, Rhonda Pina and David Porter. We believe both Rhonda and David will provide valuable support to the strategic initiatives of Commerce Bank of Arizona going forward."
Rhonda Pina has 30 years of banking experience in southern Arizona. Most recently she was an elected Town Council Member for the Town of Oro Valley.
David Porter spent nearly 30 years in the banking industry within the Phoenix metropolitan area. He currently serves as the CFO of The Renaissance Companies, one the largest and most successful commercial property development companies in Arizona.
Capital Management
Capital ratios exceeded regulatory guidelines for a well-capitalized institution under Basel III and Dodd Frank Wall Street Reform requirements at December 31, 2020. Capital ratios are presented below.
About the Company
Commerce Bank of Arizona, established in 2002 in Tucson, Arizona, is a full-service community bank that caters to small-to mid-sized businesses and real estate professionals. CBAZ offers commercial clients with a variety of services ranging from U.S. Small Business Administration (SBA) financing solutions, construction loans, and commercial real estate loans. CBOA Financial, Inc is a single-bank holding company and parent of the Bank. The Company is traded over-the-counter as CBOF. For additional information, visit: www.commercebankaz.com.
Forward-looking Statements
This press release may include forward-looking statements about CBOA Financial, Inc. or Commerce Bank of Arizona. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: competition, fluctuations in interest rates, dependency on key individuals, loan defaults, geographical concentration, litigation and changes in federal laws, regulations and interpretations thereof. All forward-looking statements included in this press release are based on information available at the time of the release, and CBOA Financial, Inc. and Commerce Bank of Arizona assume no obligation to update any forward-looking statement.
Unaudited Consolidated Summary Financial Information | |||||||
Dollars in thousands - Unaudited | For the quarter ended | Year to Date | |||||
12/31/2020 | 9/30/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||
Summary Income Data | |||||||
Interest Income | 3,300 | 3,202 | 2,969 | 12,877 | 11,804 | ||
Interest expense | 319 | 356 | 489 | 1,486 | 1,912 | ||
Net Interest Income | 2,981 | 2,846 | 2,480 | 11,391 | 9,892 | ||
Provision for (reduction in) loan losses | - | - | (74) | (279) | (153) | ||
Non-interest income | (107) | (49) | 139 | (608) | 498 | ||
Realized gains (losses) on sales of securities | - | - | 3 | 168 | (2) | ||
Non-interest expense | 3,344 | 2,340 | 2,251 | 10,475 | 8,668 | ||
Income (loss) before income taxes | (470) | 457 | 445 | 755 | 1,873 | ||
Provision for income tax | (1,992) | - | - | (1,992) | - | ||
Net Income | 1,522 | 457 | 445 | 2,747 | 1,873 | ||
Per Share Data | |||||||
Shares outstanding end-of-period | 8,218 | 8,208 | 7,878 | 8,218 | 7,878 | ||
Earnings per common share ($'s) | 0.19 | 0.06 | 0.06 | 0.33 | 0.24 | ||
Earnings per common share (Diluted) ($'s) | 0.19 | 0.04 | 0.04 | 0.33 | 0.04 | ||
Cash dividend declared | - | - | - | - | - | ||
Total shareholders' equity | 25,070 | 23,589 | 20,944 | 25,070 | 20,944 | ||
Book value per share ($'s) | 2.81 | 2.87 | 2.66 | 2.81 | 2.66 | ||
Selected Balance Sheet Data | |||||||
Total assets | 355,798 | 331,636 | 237,788 | 355,798 | 237,788 | ||
Securities available-for-sale | 37,128 | 36,636 | 26,162 | 37,128 | 26,162 | ||
Loans | 240,016 | 249,684 | 173,976 | 240,016 | 173,976 | ||
Allowance for loan losses | 2,955 | 2,996 | 2,969 | 2,955 | 2,969 | ||
Deposits | 303,932 | 279,187 | 207,519 | 303,932 | 207,519 | ||
Other borrowings | 16,563 | 21,574 | - | 16,563 | - | ||
Shareholders' equity | 25,070 | 23,589 | 20,944 | 25,070 | 20,944 | ||
Performance Ratios (%) | |||||||
Return on average shareholders' equity | 10.56 | 7.10 | 8.50 | 10.64 | 8.50 | ||
Net interest margin | 3.73 | 4.03 | 4.43 | 4.10 | 4.43 | ||
Efficiency ratio | 114.92 | 82.45 | 83.91 | 95.39 | 83.91 | ||
Asset Quality Data (%) | |||||||
Nonperforming assets to total assets | 0.78 | 1.30 | 3.61 | 0.78 | 3.61 | ||
Reserve for loan losses to total loans | 1.23 | 1.20 | 1.71 | 1.23 | 1.71 | ||
Charge-offs to average loans for period | 0.07 | (0.01) | (0.2) | (0.12) | (0.2) | ||
Regulatory Capital Ratios (%) | |||||||
Common Equity Tier 1 | 12.96 | 12.95 | 13.71 | 12.96 | 13.71 | ||
Tier 1 risk-based capital ratio | 12.96 | 12.95 | 13.71 | 12.96 | 13.71 | ||
Total risk-based capital ratio | 14.21 | 14.20 | 14.97 | 14.21 | 14.97 | ||
Tier 1 leverage capital ratio | 8.56 | 8.80 | 11.07 | 8.56 | 11.07 |
Contact:
Chris Webster
President & CEO
480-253-4511
cwebster@commercebankaz.com
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SOURCE Commerce Bank of Arizona