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.

TACOMA, WA / ACCESSWIRE / August 13, 2024 / Commencement Bancorp, Inc. (OTCQX:CBWA) reported quarterly net income of $776 thousand, or $0.20 per share, for second quarter, 2024, compared to $723 thousand, or $0.18 per share, for second quarter 2023. Total non-interest income increased 9%, while non-interest expense recorded an increase of 5% year-over-year, an anticipated rise due to expansion and adoption of new technologies.

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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About Commencement Bancorp, Inc.

Commencement Bancorp, Inc. is the holding company for Commencement Bank, headquartered in Tacoma, Washington. Commencement Bank was formed in 2006 to provide traditional, reliable, and sustainable banking in Pierce, King, and Thurston counties and the surrounding areas. Their team of experienced banking experts focuses on personal attention, flexible service, and building strong relationships with customers through state-of-the-art technology as well as traditional delivery systems. As a local bank, Commencement Bank is deeply committed to the community. For more information, please visit www.commencementbank.com. For information related to the trading of CBWA, please visit www.otcmarkets.com.

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

Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes 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," "likely," "anticipate," "expect," "looking forward," and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve's actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Commencement Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.