Commencement Bancorp Inc Announces 2024 Second Quarter Financials

The Bank’s non-interest-bearing deposits increased 11% to $155 million from $140 million in second quarter 2023. Despite the rising cost of funds from 1.58% in second quarter 2023 to 2.04%, the Bank’s loan growth, improving loan yield, and favorable deposit mix contributed to an increase in net interest margin of 3.25% compared to 3.11% from second quarter 2023. 

“It is no secret that the deposit rate environment has put a strain on the nation’s financial institutions. We have been fortunate to weather the challenges, and as a result, were pleased to offer our shareholders a cash dividend during the second quarter. We also took the opportunity to repurchase stock at an attractive price accretive to shareholders, as we were able to purchase these shares below book value,” said John E. Manolides, Chief Executive Officer.

Total assets showed little variance from second quarter 2023 and ended at $597 million, while total loans recognized a 7% increase year-over-year, ending the quarter at $464 million compared to $435 million in second quarter 2023. In addition, loan income rose 17% to $6.7 million from $5.7 million compared to second quarter 2023. Asset quality improved substantially, evidenced by the decrease in the Bank’s Texas Ratio (a measurement of problem loans and bank-owned properties to capital) to 0.8% from 4.0% one year prior.

The Bank also prepared for several key events, most notably the opening of its permanent branch for its Gig Harbor, Wash. location, scheduled for early third quarter.  Commencement’s banking team continued to exceed expectations, onboarding 128 new relationships over the quarter.

“The balanced and disciplined growth of our loan portfolio, along with our dedicated team of bankers, allowed us to focus our efforts on improving loan yields despite the challenging rate environment. Our solid reputation in our communities continues to grow, enhancing the Bank’s name and brand recognition and leading to an overall increase in market share,” said Nigel L. English, President and Chief Operating Officer.

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2024 Second Quarter Financial Highlights:

• Total loans ended the quarter at $464 million, a 7% increase year-over-year.
• Interest income increased 11% year-over-year to $7.4 million as compared to $6.6 million in second quarter 2023.
• Non-interest income saw a 9% increase compared to one year earlier.
• Nonperforming assets to total assets decreased from 0.42% at second quarter 2023 to 0.08% in 2024.
• Tangible book value per share increased to $12.52 in second quarter 2024 from $11.90 the year prior.
• Capital ratios remained well above regulatory requirements.

For further discussion, please contact the following:

John E. Manolides, Chief Executive Officer | 253-284-1802

Nigel L. English, President & Chief Operating Officer | 253-284-1801

Brandi Parker, Executive Vice President & Chief Financial Officer | 253-284-1803