Commonwealth Bankshares, Inc. (CWBS)

Hero4All (83.08) Submitted: 4/16/2008 3:24:14 PM : Start Price: $16.28 CWBS Score: -70.19

Maybe it's time for bank stocks to bottom out. This company had 10% earnings growth over 2006 and has added additional branches. Margins have increased with bank rate reductions and 2008 should be a good year if loan losses do not increase substantionally.

antichrononology (< 20) Submitted: 2/8/2008 10:00:11 PM : Start Price: $15.19 CWBS Score: -67.85

Solid performer for 08... won't double in price, but its a darn nice investment.

ColoHunter78 (< 20) Submitted: 9/21/2007 2:20:35 PM : Start Price: $18.41 CWBS Score: -62.26

Bank Holding companies traditionally get hurt during credit crunches. I look to see Commonwealth weathering this storm...and in the mean time charging off NPA(Non performing assests). It may be the target of a merger with A larger national BHC.

NetscribeBanking (95.70) Submitted: 3/23/2007 8:55:41 AM : Start Price: $21.17 CWBS Score: -69.51

Commonwealth Bankshares serves as holding company for Bank of the Commonwealth. Through its network of banking facilities, it provides a range of commercial banking services to individuals and small-to-medium-sized businesses. It conducts all the business operations of acceptance of checking and savings deposits, providing commercial, real estate, personal, home improvement, automobile and other installment and term loans. Other related services offered include home banking, trust, traveler's checks, safe deposit, lock box, depositor transfer, customer note payment, collections, notary public, escrow, drive-in facility and other customary banking services.

The loan portfolio is the largest component of earning assets and accounts for the greatest portion of total interest income. For December 2006, total gross loans, grew by 31.4% to a record $671.3 million. Interest income rose by 54% to $52.9 million led by an increased demand for loan, partially offset by rise in interest expense. Net income rose by 52% to $10.1 million which reflected increase in non interest income. The tremendous growth during the past three years was achieved due to high loan demand generated by low interest rate environment and strong local economy, combined with the efforts of the company to develop new loan relationships in addition to the existing customers.

Its overall objective in managing loan portfolio risk is to minimize the adverse impact of any single event or set of occurrences. Hence it maintains a diverse loan portfolio in terms of loan type, industry concentration, geographic distribution and borrower concentration.

Last year it raised $27.5 million additional capital through private placement which has improved the capital resources and adequacy. Besides although its net interest margin has not moved up over the last year but has improved by approx 25% over 4 years. Moreover the company’s revenue has grown at a robust 25.02% in comparison to 4.49% of the industry over 5 years which shows that the company is surely outpacing the industry.