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

TUCSON, Ariz., Feb. 21, 2020 /PRNewswire/ — CBOA Financial, Inc. (OTC: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 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/cboa-financial-inc-reports-consolidated-earnings-of-445-000-in-4q-2019-and-a-net-interest-margin-of-4-43-301009344.html

SOURCE CBOA Financial, Inc.

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