CBOA financial, Inc. reports consolidated earnings of $650,000 in 1Q 2022
CBOA Financial, Inc. (OTCMKTS: CBOF) (the “Company”), the parent company of Commerce Bank of Arizona (the “Bank” or “CBAZ”), announced that consolidated net income for the quarter ending March 31, 2022 increased 19% to $650 thousand, from $548 thousand in the fourth quarter of last year.
Chris Webster, President, and CEO stated, “We are pleased to start fiscal 2022 with an exceptionally strong quarter. Pre-tax earnings of $878 thousand were 16.3% above the same quarter last year.
Our lending team continues to take advantage of the positive economic conditions in the Phoenix and Tucson metropolitan markets.” He further added, “The Bank’s robust liquidity position allows us to fund loan growth at record low-cost levels.
As a result, CBAZ’s Net Interest Margin remains among the highest of our peers.” Webster also commented, “Credit quality and customer performance are areas of focus as monitor the challenges of inflationary pressures and increasing interest rates.”
First Quarter 2022 Highlights
$32 million in new loans funded during the quarter-Interest Income increased 265% compared to last quarter interest expense decreased by 50% compared to Q1 2021
Operational Highlights
Non-Interest income during the quarter was aided by sales of several SBA loans to the secondary market, bolstering net income by $357 thousand.
The Bank continues to make progress on its legacy classified assets. Year-over-year, non-performing assets which include loans and OREO are down 50% from $2.6 million or 0.77% of assets to $1.2 million or 0.37% of assets.
Balance Sheet
Total assets increased by 3% to $354.9 million during the quarter ended March 31, 2022 but decreased 2.9% compared to $365.5 million a year ago.
Gross loans increased by $6.9 million in the fourth quarter of 2021, ending the first quarter of 2022 at $237 million. Total deposits increased by 4.2% to $319 million during the quarter and increased by 4.4% compared to $305 million a year ago.
The allowance for loan losses totaled $3.43 million in March 2022, or 1.44% of loans, unchanged from the previous quarter.
Shareholders’ equity decreased to $27.0 million at March 31, 2022, from $29.2 million the preceding quarter due to an increase in unrealized losses on securities. At March 31, 2022, tangible book value was $2.89 per share compared to $3.12 per share at December 31, 2021 and $3.02 per share a year ago. The Bank’s March 31, 2022 Tier 1 Leverage ratio was 9.72%, compared to 8.41% at March 31, 2021.
Capital Management
Capital ratios exceeded regulatory guidelines for a well-capitalized institution under Basel III and Dodd-Frank Wall Street Reform requirements at March 31, 2022 as well as during the fourth quarter of 2021. 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 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, please 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 assumes no obligation to update any forward-looking statement.
This article was shared with Prittle Prattle News as a Press Release.
