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CommerceWest Bank Reports Fourth Quarter and Annual Financial Results for 2009

Mr. Ivo Tjan, Chairman and CEO commented, "CommerceWest was focused on integration, de-leveraging high interest rate deposit accounts, credit quality and most importantly continuing with our fortress balance sheet approach. The team worked hard in 2009 to position our franchise to create long term shareholder value. We had solid earnings growth in the 3^rd and 4^th quarters of 2009, with year end deposit growth of $97 million, which included both the impact of the merger and significant core deposit growth. The bank remains very well capitalized with a tier 1 leverage ratio of 10.82% and a total risk-based capital ratio of 16.31%, especially as compared to our peer group." Mr. Tjan continued, "We expect 2010 to be another challenging year, however, given our new size, capital levels, earnings power, liquidity, and diversified client base throughout southern California, we are confident in our future.... to be one of California's premier banking institutions for many years to come. I want to thank all of our shareholders for their continued support and look forward to our future success together."

Total assets increased $93.9 million as of December 31, 2009, an increase of 37% as compared to the same period one year ago. Total loans increased $80.4 million as of December 31, 2009, an increase of 55% over the prior year. Total deposits increased $97.0 million as of December 31, 2009, an increase of 48% from December 31, 2008. Stockholders' equity on December 31, 2009 was $43.0 million, an increase of 25% as compared to stockholders' equity of $34.4 million on December 31, 2008.

Interest income was $5,139,000 for the three months ended December 31, 2009 as compared to $3,378,000 for the three months ended December 31, 2008, an increase of 52%. Interest income was $17,433,000 for the twelve months ended December 31, 2009 as compared to $14,041,000 for the twelve months ended December 31, 2008, an increase of 24%.

Net interest income before provision for loan losses for the three months ended December 31, 2009 was $4,089,000, an increase of $1,450,000 or 55%, compared to the same period in 2008. This increase resulted from a $1,761,000 increase in interest income partially offset by a $311,000 increase in interest expense. Net interest income before provision for loan losses for the twelve months ended December 31, 2009 was $14,133,000, an increase of $3,763,000 or 36%, compared to the same period in 2008. This increase resulted from a $3,392,000 increase in interest income and a decrease of $371,000 in interest expense.

The net interest margin for the three months ended December 31, 2009 was 4.83% as compared to 4.70% for the three months ended December 31, 2008, a 13 basis point or a 3% increase. In anticipation of rising interest rates, the Bank is maintaining high levels of liquidity. The Bank had $47.8 million in interest bearing deposits at other financial institutions on December 31, 2009. With the steepening of the yield curve, this has resulted in a decrease in the net interest margin from the quarter ended September 30, 2009. The net interest margin for the twelve months ended December 31, 2009 was 5.17% as compared to 4.49% for the twelve months ended December 31, 2008, a 68 basis point or a 15% increase.

Provision for loan losses for the three months ended December 31, 2009 was $1,050,000 compared to $910,000 for the three months ended December 31, 2008, an increase of 15%. Provision for loan losses for the twelve months ended December 31, 2009 was $7,795,000 compared to $1,785,000 for the twelve months ended December 31, 2008, an increase of 337%. The Bank has substantially completed its analysis of the Discovery Bank loans purchased and has recorded a fair value discount on the loans purchased equal to 10.51%. The Allowance for Loan Losses on the CommerceWest Bank portfolio was $3.2 million or 2.59% as of December 31, 2009.

Non-interest income for the three months ended December 31, 2009 was $427,000 compared to $146,000 for the same period last year, an increase of 192%. Non-interest income for the twelve months ended December 31, 2009 was $1,317,000 compared to $1,627,000 for the same period last year, a decrease of 19%.

Non-interest expense for the three months ended December 31, 2009 was $3,147,000 compared to $1,727,000 for the same period last year, an increase of 82%. Non-interest expense for the twelve months ended December 31, 2009 was $9,580,000 compared to $7,057,000 for the same period last year, an increase of 36%.

The Bank's efficiency ratio for the three months ended December 31, 2009 was 69.95% compared to 62.00% for the three months ended December 31, 2008, which represents an increase of 13%. The Bank's efficiency ratio for the twelve months ended December 31, 2009 was 64.16% compared to 58.96% for the twelve months ended December 31, 2008, which represents an increase of 11%. The efficiency ratio illustrates, that for every dollar the Bank made for the twelve month period ending December 31, 2009, the Bank spent $0.64 to make it, as compared to $0.59 for the same period one year ago.

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2009, the leverage ratio, tier 1 capital ratio, and total risk-based capital ratio was 10.82%, 15.06% and 16.31%, respectively.

CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices in Orange County at 4685 MacArthur Court in Newport Beach, CA, in the Inland Empire at 1611 Pomona Road in Corona, CA, in Los Angeles at 19300 South Hamilton Avenue in Gardena, CA, and in San Diego at 338 Via Vera Cruz, San Marcos, CA. We offer a wide range of commercial banking services, including, concierge services, remote deposit solution, full-service internet banking, lines of credit, term loans, commercial real estate lending, SBA lending, full cash management and treasury management.

Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services.

Please visit www.cwbk.com to learn more about the bank. "BANK ON THE DIFFERENCE"

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.

CommerceWest Bank, N.A.
Mr. Ivo A. Tjan, CEO
Telephone: 949-251-6959
Facsimile: 949-251-6957
itjan@cwbk.com
www.cwbk.com
"Bank on the Difference"