OTCPK:CWBK

Stock Analysis Report

Executive Summary

CommerceWest Bank provides various commercial banking products and services for small and mid-sized businesses in California.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has CommerceWest Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWBK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

CWBK

-1.2%

US Banks

-1.1%

US Market


1 Year Return

9.9%

CWBK

10.3%

US Banks

17.9%

US Market

Return vs Industry: CWBK matched the US Banks industry which returned 10.3% over the past year.

Return vs Market: CWBK underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

CWBKIndustryMarket
7 Day-1.2%-1.2%-1.1%
30 Day-1.9%-0.3%1.4%
90 Day-2.5%-0.9%6.9%
1 Year13.3%9.9%13.5%10.3%20.3%17.9%
3 Year34.6%22.8%24.0%15.1%47.8%38.3%
5 Year88.2%71.7%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is CommerceWest Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CommerceWest Bank undervalued compared to its fair value and its price relative to the market?

8.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWBK ($23.4) is trading above our estimate of fair value ($16.52)

Significantly Below Fair Value: CWBK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWBK is good value based on its PE Ratio (8.7x) compared to the Banks industry average (12.6x).

PE vs Market: CWBK is good value based on its PE Ratio (8.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CWBK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CWBK is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is CommerceWest Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CommerceWest Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CommerceWest Bank performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWBK has high quality earnings.

Growing Profit Margin: CWBK's current net profit margins (34.3%) are higher than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: CWBK's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: CWBK's earnings growth over the past year (38.3%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: CWBK earnings growth over the past year (38.3%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: CWBK's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CommerceWest Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CWBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CWBK's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: CWBK's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if CWBK has a sufficient allowance for bad loans.

Low Risk Liabilities: CWBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: CWBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CWBK's loans are broadly funded by customer deposits.

Level of Bad Loans: Insufficient data to determine if CWBK has an appropriate level of bad loans.


Next Steps

Dividend

What is CommerceWest Bank's current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWBK's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CWBK's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CWBK has been paying a dividend for less than 10 years.

Growing Dividend: CWBK has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.3%), CWBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

18.1yrs

Average board tenure


CEO

Ivo Tjan (45yo)

18.4yrs

Tenure

US$288,750

Compensation

Ivo A. Tjan is currently serving as Chairman, President and Chief Executive Officer of CommerceWest Bank. Mr. Tjan is the Founder of the company and launched an Initial Public Offering in 2001. For the pas ...


Board Members

NamePositionTenureCompensationOwnership
Ivo Tjan
Chairman18.4yrsUS$288.75kno data
Raymond DeAngelo
Vice Chairman of the Board17.1yrsUS$7.65kno data
Christopher Deering
Independent Director19.1yrsUS$9.15kno data
David Gaba
Independent Director10.1yrsno datano data
Gregory Games
Independent Director19.1yrsUS$8.15kno data
Kenneth Shelton
Independent Director19.1yrsUS$8.15kno data

18.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CWBK's board of directors are seasoned and experienced ( 18.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CommerceWest Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CommerceWest Bank
  • Ticker: CWBK
  • Exchange: OTCPK
  • Founded: 2001
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$85.270m
  • Shares outstanding: 3.64m
  • Website: https://www.cwbk.com

Location

  • CommerceWest Bank
  • 2111 Business Center Drive
  • Irvine
  • California
  • 92612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWBKOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2001

Biography

CommerceWest Bank provides various commercial banking products and services for small and mid-sized businesses in California. It accepts various deposit products, including business checking and analyzed checking, money market deposit, savings, sweep, and attorney client trust accounts; personal accounts for owners and key executives; and anywhere checking accounts. The company also offers asset based/M&A, term, and commercial real estate loans; lines of credit; commercial and stand-by letters of credit; and collection services. In addition, it provides treasury and cash management services, concierge services, and remote deposit solutions. The company was founded in 2001 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:47
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.