CBOA Financial, Inc. Reports Consolidated Earnings of $371,000 in 1Q 2020

CBOA Financial, Inc. parent company of Commerce Bank of Arizona (the “Bank” or “CBAZ”), announced that consolidated net income for quarter ending March 31, 2020 decreased 16.6% to $371,000, from $445,000 in the fourth quarter of 2019.

Chris Webster, Bank President and Chief Executive Officer stated, “While 2020 started strong for the Bank, the unprecedented effects of the Covid-19 pandemic began impacting virtually all businesses in our communities. Our team immediately responded to the crisis by creating alternative ways to assure our customers’ banking needs would be quickly met. We also took numerous measures to ensure the safety of both customers and employees. Despite these extraordinary challenges, we were able to grow our deposit base by about 3% in the quarter and year over year, and we again saw strong book value growth of 9% year over year.” Webster added, “Due to the speed and depth of the pandemic, our small business customers were quickly impacted. We were excited to participate in the Paycheck Protection Program (PPP) offered by the Small Business Administration under the CARES Act. The PPP provided a much needed funding lifeline to our customers. So far, we have funded over 280 SBA loans totaling over $60 million. These funds are helping companies in the Tucson and Phoenix market navigate the challenges of the crisis.”

First Quarter 2020 Highlights

• Net Income for the quarter was $371,000.
• NIM of 4.20% for the quarter;
• Deposits have grown 8.3% compared to the 1Q of 2019.

Balance Sheet
Total assets increased by 2.5% to $243.6 million during the quarter ended March 31, 2020 and increased 8.1% compared to $225.5 million a year ago. Total loans increased by 0.3% to $174.5 million in the quarter and decreased 4.9% compared to $183.5 million a year ago. Total deposits increased by 2.5% to $212.8 million during the quarter and increased 8.3% compared to $196.5 million a year ago.

The allowance for loan losses totaled $2.98 million at March 31, 2020, or 1.71% of total loans. No material changes have occurred in the credit quality of the loan portfolio since the preceding quarter.

Shareholders’ equity increased to $22.3 million at March 31, 2020, from $20.9 million the preceding quarter. At March 31, 2020, book value and tangible book value were $2.71 per share compared to

$2.66 per share at December 31, 2019 and $2.48 per share a year ago.

Capital Management
Capital ratios exceeded regulatory guidelines for a well-capitalized institution under Basel III and Dodd Frank Wall Street Reform requirements at March 31, 2020. Capital ratios are presented below.

About the Company
Commerce Bank of Arizona, established in 2002 in Tucson, Arizona, is a full-service community bank that caters to small-to mid-sized businesses and real estate professionals. CBAZ offers commercial clients with a variety of services ranging from U.S. Small Business Administration (SBA) financing solutions, construction loans, and commercial real estate loans. CBOA Financial, Inc is a single-bank holding company and parent of the Bank. The Company is traded over-the-counter as CBOF. For additional information, visit: www.commercebankaz.com.

Forward-looking Statements
This press release may include forward-looking statements about CBOA Financial, Inc. or Commerce Bank of Arizona. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: competition, fluctuations in interest rates, dependency on key individuals, loan defaults, geographical concentration, litigation and changes in federal laws, regulations and interpretations thereof. All forward-looking statements included in this press release are based on information available at the time of the release, and CBOA Financial, Inc. and Commerce Bank of Arizona assume no obligation to update any forward-looking statement.

Contact:
Chris Webster
President & CEO
480-253-4511
cwebster@commercebankaz.com