Community West Bancshares Announces 2007 Earnings.Book Value Per Share Increases to $8.51 GOLETA, Calif. -- Community West Bancshares (Company) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CWBC CWBC Constant-Weight Binary Code ), parent company of Community West Bank, today reported net income of $748,000, or $.12 per share diluted, for the quarter ended December 31, 2007 (2007 Q4), compared to $1,289,000, or $.21 per share diluted, for the quarter ended December 31, 2006 (2006 Q4). For the year ended December 31, 2007, the Company reported net income of $3,789,000, or $.63 per share diluted, compared to $5,328,000, or $.89 per share diluted, for the year ended December 31, 2006. Net Interest Income Net interest income for the comparative quarter ended December 31, 2007 increased by only $405,000, primarily because the Company's net interest margin decreased by 42 basis points, to 4.21% for 2007 Q4 from 4.63% for 2006 Q4. Total interest income for the comparative quarter ended December 31, 2007 increased by $1,538,000. A $1,798,000 increase is attributed to the strong comparative growth in interest-earning assets, primarily in the commercial lending, SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government and manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected portfolios; and, is partially offset by a $260,000 decrease attributed to lower interest rates. Interest expense on deposits for the comparative three-month period increased by $879,000. $699,000 of the increase is attributed to interest-bearing deposit growth and $180,000 is attributed to higher interest rates. Interest expense on borrowings increased $254,000, substantially all of which is related to a volume increase. Provision for Loan Losses The Company recorded a higher comparable loss provision for both the three-month and year-to-date periods. The increase reflects management's assessment of credit risk for the Company. While the non-performing loans increased from $4.6 million at December 31, 2006 to $15.5 million at December 31, 2007, most of the increase is attributed to two real estate loans, for which the Company believes it has adequate collateral. Non-Interest Income and Non-Interest Expenses Non-interest income decreased by $557,000 from 2006 Q4 compared to 2007 Q4, primarily from a decline in loan fees and a decrease in gain on loan sales, resulting from the Company's strategic decision to sell fewer SBA loans. The Company continues to efficiently manage non-interest expenses as there was only a $403,000 increase in such expenses, which included personnel expenses, including non-qualifying stock options, sub-lease costs related to a former loan and overhead related to Company growth. BALANCE SHEET The Company's total assets increased $93.8 million to $610.4 million at December 31, 2007 compared to $516.6 million at December 31, 2006. Net loans increased by $87.6 million and combined liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. and investment securities increased by a net of $3.8 million. On the funding side, as of December 31, 2007, deposits increased by $65.0 million while FHLB FHLB Federal Home Loan Bank advances increased by $26.0 million over December 31, 2006. CAPITAL As of December 31, 2007, the Company had $50.2 million in total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , or 8.22% of consolidated total assets, and book value per share was $8.51. DIVIDEND DECLARED The Board of Directors announced that they have declared a regular quarterly dividend of $.06 per common share, payable February 15, 2008 to shareholders of record as of the close of business on February 1, 2008. At this quarterly rate, the annual dividend is equivalent to $.24 per common share. COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER Lynda J. Nahra, President and Chief Executive Officer, noted: "2007 proved to be an especially challenging year for the banking industry with the unpredictable interest rate environment and general market turmoil relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc numerous financial services' companies. While this will likely continue into the first part of 2008, we are cautiously optimistic about the Company's prospects. Internally, we continue to focus on our core competencies and the execution of our strategic plan, which allowed us to grow the Company's assets and position us for 2008 and beyond. We are very pleased that, in 2007, the Company grew its net loans by $87.6 million. In 2008 Q1, to better serve our current customers and to assist in attracting new business, we will move our downtown Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. branch into a larger and more efficient location." COMPANY OVERVIEW Community West Bancshares is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with headquarters in Goleta, California “Goleta” redirects here. For the genus of jumping spiders, see Goleta (spider). Goleta (IPA: /ɡəʊleta/ in English or /ɡolɛta/ in Spanish) is a city located in southern Santa Barbara County, California, USA. . The Company is the holding company for Community West Bank, which has five full-service California branch banking offices, in Goleta, Ventura, Santa Maria, Santa Barbara and Westlake Village. The principal business activities of the Company are Relationship banking, Mortgage lending and SBA lending, with loans originating in California, Alabama, Arizona, Colorado, Florida, Georgia, Maryland, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Ohio, Oregon, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Tennessee and Washington. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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. [TABLE OMITTED] [TABLE OMITTED] |
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