CW Bancorp Reports Q3 2024 ROA 1.11% and ROTE of 15.64%

Irvine, California - October 31, 2024 - CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the third quarter of 2024 of $3,131,000 or $1.03 per diluted share as compared to $5,234,000 or $1.61 per diluted share for the third quarter of 2023, an EPS decrease of 36% and net income for the nine months ended September 30, 2024 of $9,208,000 or $2.99 per diluted share as compared to $14,066,000 or $4.26 per diluted share for the nine months ended September 30, 2023, an EPS decrease of 30%.

Key Financial Results for the three months ended September 30, 2024:

• EPS of $2.99
• Return on Assets of 1.14%
• Return on Tangible Equity of 15.88%
• Year over year loan growth of 2%
• Year over year deposit growth of 11%
• Year over year total asset growth of 11%

Mr. Ivo A. Tjan, Chairman and CEO commented, "Our company has demonstrated strong performance this quarter, with robust growth in both loans and deposits, highlighted by double digit increases in deposits and total assets year over year." Mr. Tjan continued, "In the face of ongoing global and regional economic uncertainty, we remain committed to safeguarding our financial strength. Our fortress like balance sheet, supported by a 1.53% allowance for credit losses, along with our strong liquidity and capital ratios, positions us well for the future. I am proud of our talented team's dedication to serving the evolving needs of California's business community."

Total assets increased $113.9 million as of September 30, 2024, an increase of 11% as compared to the same period one year ago. Total loans increased $18.0 million as of September 30, 2024, an increase of 2% from the prior year. Cash and due from banks increased $86.2 million or 57% over the prior year. Total investment securities increased $6.6 million, an increase of 4% from the prior year.

Total deposits increased $102.3 million as of September 30, 2024, an increase of 11% from September 30, 2023. Non-interest-bearing deposits increased $30.4 million as of September 30, 2024, an increase of 6% from the prior year. Interest bearing deposits increased $71.9 million as of September 30, 2024, an increase of 19% over the prior year.

Interest income was $13,856,000 for the three months ended September 30, 2024, as compared to $13,704,000 for the three months ended September 30, 2023, an increase of 1%. Interest expense was $3,841,000 for the three months ended September 30, 2024, as compared to $3,044,000 for the three months ended September 30, 2023, an increase of 26%.

Interest income was $39,441,000 for the nine months ended September 30, 2024, as compared to $39,221,000 for the nine months ended September 30, 2023, an increase of 1%. Interest expense was $10,527,000 for the nine months ended September 30, 2024, as compared to $8,301,000 for the nine months ended September 30, 2023, an increase of 27%.

Net interest income for the three months ended September 30, 2024, was $10,015,000 as compared to $10,660,000 for the three months ended September 30, 2023, a decrease of 6%. The net interest margin decreased for the three months ended September 30, 2024. It decreased to 3.75% in 2024 from 3.90% in 2023, a decrease of 4%. Net interest income for the nine months ended September 30, 2024, was $28,914,000 as compared to $30,920,000 for the nine months ended September 30, 2023, a decrease of 6%. The net interest margin decreased for the nine months ended September 30, 2024. It decreased to 3.79% in 2024 from 3.87% in 2023, a decrease of 2%.

Provision for credit losses for the three months ended September 30, 2024, was zero compared to a negative provision for credit losses of $1,500,000 during the three months ended September 30, 2023. This provision reversal was primarily due to a $3 million recovery on a previously charged of loan, which resulted in an overfunding of the allowance for credit losses that allowed the Bank to reverse provision expense during the third quarter of 2023. Provision for credit losses for the nine months ended September 30, 2024, was also zero compared to a negative provision for credit losses of $1,326,000 for the nine months ended September 30, 2023.

Non-interest income for the three months ended September 30, 2024, was $1,727,000 compared to $1,918,000 for the same period last year, a decrease of 10%. Non-interest income for the nine months ended September 30, 2024, was $4,154,000 compared to $4,832,000 for the same period last year, a decrease of 14%.

Non-interest expense for the three months ended September 30, 2024, was $7,344,000 compared to $6,812,000 for the same period last year, an increase of 8%. Non-interest expense for the nine months ended September 30, 2024, was $20,182,000 compared to $17,720,000 for the same period last year, an increase of 14%.

The efficiency ratio for the three months ended September 30, 2024, was 62.23% compared to 51.92% in 2023, which represents an increase of 20%. The efficiency ratio illustrates that for every dollar made for the three-month period ending September 30, 2024, it cost $0.6223 to make it, as compared to $0.5192 one year ago. The efficiency ratio for the nine months ended September 30, 2024, was 60.70% compared to 48.35% in 2023, which represents an increase of 26%.

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of September 30, 2024, the tier 1 leverage ratio was 11.77%, the common equity tier 1 capital ratio was 17.45%, the tier 1 risk-based capital ratio was 17.45% and the total risk-based capital ratio was 18.70%.

CommerceWest Bank is determined to redefine banking for small and medium sized businesses by delivering on customized products and services. Founded in 2001 and headquartered in Irvine, California, the Bank serves businesses throughout the state of California with our digital banking platform. By employing a strategically selected team of experienced professionals, we will provide flexibility, create a complete, safe and sound banking experience for each client. We provide a wide range of commercial banking services, including remote deposit solution, NetBanker online banking, mobile banking, lines of credit, M&A / working capital loans, commercial real estate loans, SBA loans and treasury management services.

Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services. Please visit www.cwbk.com to learn more about the bank. "BANK ON THE DIFFERENCE"

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.