CBOA Financial, Inc. Reports Consolidated Earnings of $445,000 in 4Q 2019 and a Net Interest Margin of 4.43%

PR Newswire

TUCSON, Ariz., Feb. 21, 2020 /PRNewswire/ — CBOA Financial, Inc. (OTCMKTS:CBOF) (the “Company”), parent company of Commerce Bank of Arizona (the “Bank” or “CBAZ”), announced consolidated net income for quarter ending December 31, 2019 decreased 10.5% to $445,000, from $497,000 in the third quarter of 2019. For the full year ended December 31, 2019, net income increased 11% to $1,873,000 from $1,687,000 in the full year of 2018.

Commerce Bank of Arizona (PRNewsfoto/Commerce Bank of Arizona)

Chris Webster, Bank President and Chief Executive Officer stated, “Our strong asset growth of 13% in 2019 was a testament to our team’s successful efforts to grow our franchise in Arizona. We’re very proud of how we maintained our strong interest margin and consistent earnings with the challenging deposit cost environment we found ourselves in during the middle of the year. As we look ahead to 2020, accelerating our loan growth will be paramount. We feel we’ve made the right investments and are strong in the right markets to be successful in that effort.”

Fourth Quarter 2019 Highlights

  • Net Income for the quarter was $445,000, and $1,873,000 for the year.
  • NIM of 4.43% for the quarter;
  • ROE of 8.50% for the quarter.

Balance Sheet
Total assets decreased by 5.35% to $238.1 million during the quarter ended December 31, 2019 and increased 12.59% compared to $211.5 million a year ago. Total loans decreased by 2.33% to $173.9 million in the quarter and decreased 1.24% compared to $176.2 million a year ago. Total deposits decreased by 6.11% to $207.5 million during the quarter and increased 17.67% compared to $176.4 million a year ago.

The allowance for loan losses totaled $2.97 million at December 31, 2019, or 1.69% of total loans. No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter.

Shareholders’ equity increased to $20.9 million at December 31, 2019, from $20.7 million the preceding quarter. At December 2019, book value and tangible book value were $2.66 per share compared to $2.63 per share at September 30, 2019 and $2.43 per share a year ago.

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, 2019. 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 


12/31/2019


9/30/2019


12/31/2018


12/31/2019


12/31/2018


Summary Income Data

Interest Income

2,969

2,955

2,722

11,804

10,314

Interest expense

489

520

350

1,912

1,065

Net Interest Income

2,480

2,435

2,372

9,892

9,249

Provision for (reduction in) loan losses

(74)

(79)

(153)

(300)

Non-interest income

139

130

78

498

424

Realized gains (losses) on sales of securities

3

(5)

(2)

Non-interest expense

2,251

2,142

2,109

8,668

8,301

Income (loss) before income taxes

445

497

341

1,873

1,672

Provision for income tax

(15)

Net Income

445

497

341

1,873

1,687


Per Share Data

Shares outstanding end-of-period

7,878

7,878

7,828

7,878

7,828

Earnings per common share ($’s)

0.06

0.06

0.04

0.24

0.22

Earnings per common share (Diluted) ($’s)

0.04

0.05

0.03

0.18

0.16

Cash dividend declared

Total shareholders’ equity

20,944

20,732

19,039

20,944

19,039

Book value per share ($’s)

2.66

2.63

2.43

2.66

2.43


Selected Balance Sheet Data

Total assets

238,099

251,567

211,477

238,099

211,477

Securities available-for-sale

26,162

23,316

12,951

26,162

12,951

Loans

173,976

178,120

176,181

173,976

176,181

Allowance for loan losses

2,969

2,945

2,859

2,969

2,859

Deposits

207,519

221,032

176,358

207,519

176,358

Other borrowings

Shareholders’ equity

20,944

20,732

19,039

20,944

19,039


Performance Ratios (%)

Return on average shareholders’ equity (annualized) 

8.50

9.59

7.16

8.94

8.86

Net interest margin

4.43

4.47

4.83

4.43

4.83

Efficiency ratio 

88.34

86.34

86.08

84.69

88.56


Asset Quality Data (%)

Nonperforming assets to total assets 

3.61

4.23

4.26

3.61

4.26

Reserve for loan losses to total loans 

1.71

1.65

1.62

1.71

1.62

Charge-offs to average loans for period

(0.22)

(0.23)

(0.06)

(0.15)

(0.18)


Regulatory Capital Ratios (%)

Common Equity Tier 1 

13.71

12.97

13.21

13.71

13.21

Tier 1 risk-based capital ratio 

13.71

12.97

13.21

13.71

13.21

Total risk-based capital ratio 

14.97

14.22

14.46

14.97

14.46

Tier 1 leverage capital ratio 

11.07

11.06

11.61

11.07

11.61

Contact:
Chris Webster
President & CEO
480-253-4511
cwebster@commercebankaz.com 

 

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SOURCE CBOA Financial, Inc.