CommerceWest Bank announced Thursday that it had second-quarter net income of $68,000, swinging from a $2.6 million net loss a year earlier.
The Irvine, Calif., bank improved revenue, reduced expenses and cut back loan-loss provisions as it completed consolidating a two-branch bank it recently bought.
CommerceWest's total assets rose 22%, to $305.3 million, including a 39% increase in loans and an 83% decline in the provision for loan losses during the quarter.
Chairman and Chief Executive Ivo Tjan said in a press release that the company completed most of its deleveraging strategy by rolling off high-interest certificates of deposit from the bank it acquired, Discovery Bank in San Marcos, Calif., which had $151 million of assets.
CommerceWest remained well capitalized despite a 4% capital slide from a year earlier, with a total risk-based capital ratio of 19.17% at June 30.
