Commencement Bancorp, Inc. (CBWA) Announces 2022 Third Quarter Financial Results

Financials for the third quarter of 2022:

  • Total assets were $554 million at the end of the quarter ended September 30, 2022.

  • Compared to a year ago, total loans increased by $44.2 million, or 13%. Year-to-date loan growth was 14.5%.

  • Deposits totaled $502.3 million in the third quarter, up 6% year-to-date.

  • Interest-free deposits are up 22% year-to-date and 21% compared to September 2021. A 3% increase from the second quarter of 2022 to the third quarter of 2022.

  • Net income for the third quarter of 2022 was a record $1.8 million, compared to $1.5 million a year ago. YTD gain of 3.9MM is 29% higher than YTD gain as of September 2021.

  • Earnings per share were $0.45, compared to $0.34 a year ago.

  • Return on average assets for the quarter was 1.24% compared to 1.04% in the third quarter of 2021.

  • The Bank is fully capitalized with a Tier 1 risk capital ratio of 13.69%.

Tacoma, WA / ACCESSWIRE / November 4, 2022 / Beginning Bank Corporation (OTCQX:CBWA) reported net income of $1.8 million, or $0.45 per share, for the quarter ended September 30, 2022. This is an increase of 22% compared to $1.5 million in the third quarter of 2021, and 63% compared to $1.1 million in the previous quarter. Total interest income benefited from a rapid rate hike by the Federal Open Market Committee (FOMC), while interest expense fell 38% year over year. Net interest income before provisions was $5.1 million, up 16% from $4.4 million a year ago. Non-interest income benefits from a one-time non-recurring death benefit paid by Bank Owned Life Insurance (BOLI). Increased staffing for operational purposes is expected to increase non-interest expense and is expected to increase strategically planned staffing in the future.

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Total assets in the third quarter of 2022 were $554 million, compared to $548 million a year ago. Loans, excluding Paycheck Protection Program (PPP) balances, rose 18.2% from $323.7 million to $395.8 million at the end of the third quarter. Forgiveness on PPP loans is nearing completion, and funds have been steadily redeployed into higher-yielding traditional business and consumer loans. Loan production remained strong throughout the year.

Deposits at the end of the quarter were $502 million, a slight increase from the third quarter of 2021. Non-interest-bearing deposits increased by 21% year-on-year and accounted for 35% of total deposits. This increase reflects the successful establishment of new depository relationships. Term deposits decreased by 38%, resulting in an overall improvement in the deposit mix and lower funding costs.

Regulatory capital remains well-capitalized due to strong earnings. The expansion of the securities portfolio throughout 2021, coupled with the FOMC rate hike in 2022, impacted other comprehensive income; however, no losses were recognized.

Net interest margin rose 37 basis points to 3.68% from 3.31% a year ago. Year-to-date, net interest margins have increased by 55 basis points. The bank has prepared for a rising interest rate environment and has benefited from the recent FOMC rate hike. The cost of capital remains favorable, but competition for funds on interest rates is increasing.

Non-performing assets as a percentage of total assets stood at 0.53%, while the bank’s Texas ratio, which measures troubled loans and the bank’s own property-to-capital ratio, remained at 4.7%. Based on loan portfolio growth, a $75,000 provision for loan and lease losses was made in the third quarter of 2022, the first of this year.

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“This was a huge quarter to start with the highest record net income in the bank’s history. Our team continues to gain momentum as we head into home 2022 and we remain focused on capitalizing on the market opportunity ahead of us”, Chief Executive Officer John Manor Reeds says.

About starting Bancorp, Inc.
Commencement Bancorp, Inc. is the holding company for Commencement Bank and is headquartered in Tacoma, Washington. Start Bank was established in 2006 to provide traditional, reliable and sustainable banking to Pierce, King and Thurston counties and surrounding areas. Their team of seasoned banking experts focuses on personal attention, flexible service and building strong relationships with clients through state-of-the-art technology and traditional delivery systems. As a local bank, Commencement Bank is deeply committed to the community.For more information, please visit For information on CBWA transactions, please visit

For further discussion, please contact:
John E. Manolides, Chief Executive Officer | 253-284-1802
Nigel L. English, President and Chief Operating Officer | 253-284-1801
Thomas L. Dhamers, Executive Vice President and Chief Financial Officer | 253-284-1803

Safe Harbor for Forward-Looking Statements: This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Commencement Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “may,” “anticipate” and similar. “Expect,” “Expect,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from those expressed in these forward-looking statements, which are difficult to predict due to their forward-looking nature. Investors should not place undue reliance on any forward-looking statements and should consider factors that could cause differences, including, but not limited to, the level of competition between traditional and non-traditional competitors, declining real estate markets, rising or persistently high levels of unemployment; changes in interest rates; consolidation Higher-than-expected costs of acquisitions, adverse changes in the local, national, and international economies; changes in Federal Reserve actions affecting monetary and fiscal policy; changes in legislative or regulatory actions or reforms, including but not limited to Dodd-Frank Wall Street reforms and consumer conservation laws; demand for products and services; changing the quality of our loan portfolio and our ability to successfully address troubled assets; the impact of technological advances; changes in tax laws; and other risk factors. Beginning Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the effects of events or circumstances that may arise after the date of this press release.

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Commencement Bank (WA), Friday, November 4, 2022, press release image

Commencement Bank (WA), Friday, November 4, 2022, press release image

Commencement Bank (WA), Friday, November 4, 2022, press release image

Commencement Bank (WA), Friday, November 4, 2022, press release image

Commencement Bank (WA), Friday, November 4, 2022, press release image

Commencement Bank (WA), Friday, November 4, 2022, press release image

resource: Started Bancorp, Inc. (WA)

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