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Community West Bancshares Earns $1.1 Million in First Quarter, Nonaccrual Loans Decrease 48% Compared to a Year Ago



Community West Bancshares Earns $1.1 Million in First Quarter, Nonaccrual
Loans Decrease 48% Compared to a Year Ago

GOLETA, Calif., April 25, 2013 (GLOBE NEWSWIRE) -- Community West Bancshares
(Community West or the Company), (Nasdaq:CWBC), parent company of Community
West Bank (Bank), today reported net income increased 33.0% to $1.1 million in
the first quarter of 2013 (1Q13) compared to $819,000 in the first quarter a
year ago (1Q12). Community West earned $2.3 million in fourth quarter of 2012
(4Q12).

"We were profitable for the third consecutive quarter and have worked
diligently, doing what we set out to do, to improve the overall health of the
Company," stated Martin E. Plourd, President and Chief Executive
Officer. "Credit quality metrics improved substantially, with total nonaccrual
loans at nearly half the levels that they were a year ago, and our capital
ratios continue to improve. Now that profitability appears sustainable, we can
sharpen our focus on responsible balance sheet growth."

1Q13 Financial Highlights

  * Net income of $1.1 million.
  * Earnings of $0.11 per diluted share.
  * Net interest margin continued to be strong and was 4.78% in 1Q13, compared
    to 4.91% in 4Q12 and 4.48% in 1Q12.
  * Nonaccrual loans declined 12.0% to $19.7 million at March 31, 2013,
    compared to $22.4 million at December 31, 2012 and $38.3 million at March
    31, 2012.
  * Net real estate owned (REO) and repossessed assets, after subtracting the
    USDA guarantee, totaled $1.9 million at March 31, 2013, the same as three
    months earlier. The net REO was $4.9 million at March 31, 2012.
  * The total allowance for loan losses equaled 3.54% of total loans held for
    investment at March 31, 2013, compared to 3.66% at December 31, 2012 and
    3.19% a year ago. The quantitative historical loss allocation portion of
    the allowance calculation showed some improvement during 1Q13.
  * Community West Bank's capital ratios continue to strengthen - Total
    risk-based capital ratio was 15.63% and Tier 1 leverage ratio was 11.34%
    at March 31, 2013, an increase compared to a Total risk-based capital
    ratio of 15.27% and Tier 1 leverage ratio of 10.69% at December 31, 2012.
    The Bank's regulatory agreement requires that ratios of 12% and 9%,
    respectively, be maintained.

Including $262,000 of dividends and accretion on preferred stock, the net
income available to common stockholders was $827,000, or $0.11 per diluted
share, in 1Q13 compared to net income available to common stockholders of $2.1
million, or $0.26 per diluted share, in 4Q12 and net income available to
common stockholders of $557,000, or $0.08 per diluted share, in 1Q12.  Book
value per common share was $6.41 at March 31, 2013, compared to $6.29 at
December 31, 2012 and $6.01 at March 31, 2012.

Credit Quality

"Community West's credit costs continued to decline and were significantly
below those of a year ago. As a result of this progress all of our key credit
quality metrics have improved and our reserve levels remain substantial," said
Plourd.

In the first quarter of 2013, $196,000 was taken as a credit to the loan loss
provision. This compares to $895,000 taken as a credit to the loan loss
provision in 4Q12 and a $2.0 million provision recorded in 1Q12.

The allowance for loan losses totaled $14.0 million at March 31, 2013, equal
to 3.54% of total loans held for investment, compared to 3.66% at December 31,
2012 and 3.19% a year ago.

Nonaccrual loans totaled $19.7 million, or 4.32% of total loans at March 31,
2013 compared to $22.4 million, or 4.84% of total loans, at December 31, 2012,
and $38.3 million, or 7.37% of total loans, a year ago. Of the $19.7 million
in nonaccrual loans, $10.5 million (53.3%) were commercial real estate loans,
$6.6 million (33.7%) were manufactured housing loans, $1.8 million (9.4%) were
commercial loans, $348,000 (1.8%) were SBA loans, $228,000 (1.2%) were home
equity line of credit loans and $117,000 (0.6%) were other installment loans.

REO and repossessed assets stood at $4.4 million at March 31, 2013 compared to
$1.9 million three months earlier and $5.8 million a year earlier.  This
amount consists of $3.5 million REO and $900,000 from repossessed manufactured
housing loans. REO consists of only one property for which $2.5 million is
guaranteed by the USDA. Nonaccrual loans plus REO and repossessed assets, net
of SBA/USDA guarantees, totaled $21.6 million, or 4.1% of total assets, at
March 31, 2013 compared to $24.3 million, or 4.6% of total assets, three
months earlier and $43.2 million, or 6.9% of total assets, a year ago.  

Net charge-offs totaled $318,000 in 1Q13 compared to net recoveries of
$304,000 in 4Q12 and net charge-offs of $2.5 million in 1Q12.  

Income Statement

Community West's first quarter net interest income was $5.8 million compared
to $6.2 million in 4Q12 and $6.5 million in 1Q12. The first quarter net
interest margin improved 30 basis points to 4.78%, compared to 4.48% in
1Q12. The net interest margin was 4.91% in 4Q12. The margin remains strong and
4Q12 was positively impacted by one large interest recovery.

Non-interest income was $767,000 in 1Q13 compared to $761,000 in 4Q12 and $1.9
million in 1Q12. The non-interest income total for 1Q12 included $1.1 million
in gains on sales of loans.

First quarter operating or non-interest expenses totaled $5.7 million compared
to $5.5 million in 4Q12 and $5.6 million in 1Q12.  Salaries and employee
benefits were higher due to the increase in staff, primarily lenders and
credit administration, and the payroll tax reinstatement.

Balance Sheet

Net loans were $442.4 million at March 31, 2013 compared to $449.2 million at
December 31, 2012 and $504.6 million a year ago. Commercial real estate loans
outstanding were down 19.7% from year ago levels to $132.0 million at March
31, 2013 and comprise 28.9% of the total loan portfolio. Manufactured housing
loans were down 5.7% from year ago levels to $174.9 million and represent
38.3% of total loans. SBA loans decreased 16.7% from a year ago to $80.1
million and represent 17.6% of the total loan portfolio and commercial loans
increased 1.0% from year ago levels to $40.3 million and represent 8.8% of the
total loan portfolio.

"On the liability side of the balance sheet, our total deposits declined
during the quarter as the Bank's balance sheet streamlining was managed and we
continue to change the deposit mix by letting higher cost interest-bearing
certificates of deposit run off," said Charles G. Baltuskonis, Executive Vice
President and Chief Financial Officer. 

Non-interest-bearing deposit accounts were $48.9 million at March 31, 2013
compared to $53.6 million at December 31, 2012 and $55.0 million at March 31,
2012. Interest-bearing accounts decreased to $264.0 million at the end of
March, compared to $269.5 million at December 31, 2012 and $291.5 million a
year ago. Total deposits were $434.0 million at March 31, 2013 compared to
$434.2 million at December 31, 2012 and $510.8 million a year ago. Core
deposits, defined as non-interest-bearing checking, interest-bearing checking,
money market accounts, savings accounts and retail certificates of deposit
totaled $359.2 million at March 31, 2013 compared to $368.9 million at
December 31, 2012, and $402.8 million at March 31, 2012.

Total assets were $533.1 million at March 31, 2013 compared to $532.1 million
at December 31, 2012, and $623.2 million a year ago. Stockholders' equity
improved to $54.1 million at March 31, 2013, compared to $53.0 million at
December 31, 2012 and $51.1 million at March 31, 2012. 

The Company is prohibited from paying dividends on its common or preferred
stock without the prior approval of the Federal Reserve Board (FRB). The FRB
denied the paying of the $195,000 dividend payments on the preferred shares
that were due on May 15, 2012, August 15, 2012, November 15, 2012 and February
15, 2013. Such amounts continue to be accrued as incurred and deducted from
capital.

On December 11, 2012, the U.S. Treasury sold its shares of the Company's
perpetual preferred stock in a non-public offering as part of a modified Dutch
auction. Such shares were all purchased by third parties unaffiliated with the
Company. The Treasury continues to hold a warrant to purchase up to 521,158
shares of the Company's common stock at $4.49 per share. 

Company Overview

Community West Bancshares is a financial services company with headquarters in
Goleta, California. The Company is the holding company for Community West
Bank, which has five full-service California branch banking offices, in
Goleta, Santa Barbara, Santa Maria, Ventura and Westlake Village. The
principal business activities of the Company are Relationship banking,
Mortgage lending and SBA lending.

Safe Harbor Disclosure

This release contains forward-looking statements that reflect management's
current views of future events and operations. These forward-looking
statements are based on information currently available to the Company as of
the date of this release. It is important to note that these forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, including, but not limited to, the ability of the Company to
implement its strategy and expand its lending operations.

COMMUNITY WEST BANCSHARES                                             
INCOME STATEMENTS                                                     
(unaudited)                                                           
(in 000's, except per share data)                                     
                                                                      
                                              Three Months Ended
                                              March 31, December 31, March 31,
                                              2013      2012         2012
                                                                      
Interest income                                                       
Loans                                          $ 6,794   $ 7,254      $ 8,082
Investment securities and other                170       188          239
 Total interest income                         6,964     7,442        8,321
Interest expense                                                      
Deposits                                       759       843          1,265
Other borrowings and convertible debentures    407       433          528
 Total interest expense                        1,166     1,276        1,793
Net interest income                            5,798     6,166        6,528
Provision for loan losses                      (196)     (895)        1,983
Net interest income after                                             
provision for loan losses                      5,994     7,061        4,545
Non-interest income                                                   
Other loan fees                                230       277          250
Gain from loan sales, net                      161       139          1,097
Other                                          376       345          541
 Total non-interest income                     767       761          1,888
Non-interest expenses                                                 
Salaries and employee benefits                 3,514     3,026        2,885
Occupancy and equipment expenses               455       464          495
FDIC assessment                                265       296          426
Professional services                          315       491          325
Loss on sale and write-down of foreclosed                             
real estate 
 and repossessed assets                        84        71           409
Other operating expenses                       1,039     1,142        1,074
 Total non-interest expenses                   5,672     5,490        5,614
Income before income taxes                     1,089     2,332        819
Provision for income taxes                     --        --           --
                                                                      
NET INCOME                                     $ 1,089   $ 2,332      $ 819
                                                                      
Dividends and accretion on preferred stock     262       263          262
                                                                      
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS    $ 827      $ 2,069      $ 557
                                                                      
Earnings per common share:                                            
Basic                                          $ 0.14    $ 0.35       $ 0.09
Diluted                                        $ 0.11    $ 0.26       $ 0.08

                                                                     
COMMUNITY WEST BANCSHARES                                            
CONDENSED CONSOLIDATED BALANCE SHEETS                                
(unaudited)                                                          
(in 000's, except per share data)                                    
                                                                     
                                            March 31,  December 31, March 31,
                                            2013       2012         2012
                                                                     
Cash and cash equivalents                    $ 35,689   $ 27,891     $ 43,145
Time and interest-earning deposits in other  3,537      3,653        5,403
financial institutions
Investment securities                        23,902     24,040       32,146
Loans:                                                               
 Commercial                                  40,311     37,266       39,906
 Commercial real estate                      132,009    126,676      164,437
 SBA                                         80,123     85,957       96,239
 Manufactured housing                        174,923    177,391      185,539
 Single family real estate                   9,096      9,945        11,518
 HELOC                                       17,318     17,852       20,527
 Consumer                                    264        355          362
 Mortgage loans held for sale                2,312      8,223        818
Total loans                                  456,356    463,665      519,346
                                                                     
Loans, net                                                           
 Held for sale                               61,753     68,694       58,460
 Held for investment                         394,603    394,971      460,886
 Less: Allowance                             (13,950)   (14,464)     (14,705)
 Net held for investment                     380,653    380,507      446,181
 NET LOANS                                   442,406    449,201      504,641
                                                                     
Other assets                                 27,589     27,316       37,890
                                                                     
 TOTAL ASSETS                                $ 533,123  $ 532,101    $ 623,225
                                                                     
Deposits                                                             
 Non-interest-bearing demand                 $ 48,920   $ 53,605     $ 54,986
 Interest-bearing demand                     264,044    269,466      291,529
 Savings                                     16,621     16,351       19,579
 CDs over 100K                               90,708     80,710       121,993
 CDs under 100K                              13,726     14,088       22,712
Total Deposits                               434,019    434,220      510,799
Other borrowings                             41,735     41,852       58,852
Other liabilities                            3,299      2,980        2,464
 TOTAL LIABILITIES                           479,053    479,052      572,115
                                                                     
Stockholders' equity                         54,070     53,049       51,110
                                                                     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 533,123  $ 532,101     $ 623,225
                                                                     
Shares outstanding                           6,033      5,995        5,990
                                                                     
Book value per common share                  $ 6.41     $ 6.29       $ 6.01
                                                                     

                                                                  
ADDITIONAL FINANCIAL INFORMATION                                  
(Dollars in thousands except per                                  
share amounts)(Unaudited)
                                     Quarter Ended Quarter Ended Quarter Ended
PERFORMANCE MEASURES AND RATIOS      Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Return on average common equity      11.46%        25.52%        9.07%
Return on average assets             0.83%         1.71%         0.52%
Efficiency ratio                     86.40%        79.26%        66.71%
Net interest margin                  4.78%         4.91%         4.48%
                                                                  
                                     Quarter Ended Quarter Ended Quarter Ended
AVERAGE BALANCES                     Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Average assets                        $ 524,572     $ 544,847     $ 631,547
Average earning assets                492,304       499,855       586,399
Average total loans                   460,741       466,401       540,763
Average deposits                      426,367       447,827       511,634
Average equity (including preferred   53,363        51,844        51,209
stock)
Average common equity (excluding      37,998        36,545        36,112
preferred stock)
                                                                  
EQUITY ANALYSIS                      Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Total equity                          $ 54,070      $ 53,049      $ 51,110
Less: senior preferred stock          15,408        15,341        15,141
Total common equity                   $ 38,662      $ 37,708      $ 35,969
                                                                  
Common stock outstanding              6,033         5,995         5,990
Book value per common share           $ 6.41        $ 6.29        $ 6.01
                                                                  
ASSET QUALITY                        Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Nonaccrual loans                      $ 19,707      $ 22,425      $ 38,290
Nonaccrual loans/total loans         4.32%         4.84%         7.37%
REO and repossessed assets            $ 4,389       $ 1,889       $ 5,776
Less: SBA/USDA-guaranteed amounts    2,481         0              $ 844
                                                                  
Net REO and repossessed assets        $ 1,908       $ 1,889       $ 4,932
Nonaccrual loans plus net REO        21,615        24,314         $ 43,222
Nonaccrual loans plus net REO/total  4.05%         4.57%         6.94%
assets
Net loan charge-offs in the quarter   $ 318         $ (304)       $ 2,548
Net charge-offs in the quarter/total 0.07%         -0.07%        0.49%
loans 
                                                                  
Allowance for loan losses             $ 13,950      $ 14,464      $ 14,705
Plus: Reserve for undisbursed loan    90            102           206
commitments
Total allowance for credit losses     $ 14,040      $ 14,566      $ 14,911
Total allowance for loan
losses/total loans held for          3.54%         3.66%         3.19%
investment
Total allowance for loan             70.79%        64.50%        38.40%
losses/nonaccrual loans
                                                                  
Community West Bancshares                                         
Tier 1 leverage ratio                10.29%        9.72%         8.08%
Tier 1 risk-based capital ratio      13.12%        12.81%        10.61%
Total risk-based capital ratio       16.27%        15.98%        13.52%
                                                                  
Community West Bank                                               
Tier 1 leverage ratio                11.34%        10.69%        8.52%
Tier 1 risk-based capital ratio      14.35%        13.99%        11.15%
Total risk-based capital ratio       15.63%        15.27%        12.43%
                                                                  
INTEREST SPREAD ANALYSIS             Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Yield on interest-bearing deposits   0.82%         0.85%         1.10%
Yield on total loans                 5.98%         6.19%         6.01%
Yield on investments                 2.44%         2.55%         2.23%
Yield on earning assets              5.74%         5.92%         5.71%
                                                                  
Cost of deposits                     0.72%         0.75%         0.99%
Cost of FHLB advances                2.92%         2.94%         2.43%
Cost of interest-bearing liabilities 1.14%         1.17%         1.37%

CONTACT: Charles G. Baltuskonis, EVP & CFO
         805.692.5821
         www.communitywestbank.com
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