Community West Bancshares Announces Earnings Increase of 109% for 2004 Second Quarter and 126% for 2004 Six Months; Dividend of $.04 Per Share Declared.GOLETA, Calif. -- Community West Bancshares (Nasdaq:CWBC CWBC Constant-Weight Binary Code ) (Company) today announced operating results for the second quarter and first six months of 2004. EARNINGS SUMMARY For the quarter ended June 30, 2004 (2004 Q 2), the Company recorded net income of $1,040,000, or $.18 per share (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared to net income of $498,000, or $.09 per share (basic and diluted), for the quarter ended June 30, 2003 (2003 Q 2). This represents a 109% increase in net income for 2004 Q 2 compared to 2003 Q 2. For the six months ended June 30, 2004, the Company recorded net income of $1,914,000, or $.34 per share (basic, and $.33 diluted), compared to net income of $846,000, or $.15 per share (basic and diluted) for the six months ended June 30, 2003. This represents a 126% comparative increase. Net Interest Income Total interest income for the comparative periods was virtually unchanged as a slightly lower yield was, in effect, offset by increased loan volume. Interest expense on deposits was also substantially unchanged, however, interest expense on the securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. bonds declined as the Company continues to benefit from the paydowns of the relatively high-rate, securitized bonds, thus serving to reduce the Company's cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . Provision for Loan Losses Overall, the general portfolio credit quality continues to be relatively stable and, in addition, the securitized loan portfolio continues to stabilize stabilize See peg. and pay down and related charge-offs have declined. Non-Interest Income and Non-Interest Expenses The increase in non-interest income was primarily due to selling of unguaranteed 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 loans, which generally occurs one or two times per year, and higher loan fees related to SBA volume. The increase in non-interest expenses was primarily related to commissions for increased loan volume, general salary increases, other employee benefits and sub-lease costs related to a former loan. BALANCE SHEET The Company's total assets have increased to $343.6 million at June 30, 2004 compared to $304.2 million at December 31, 2003. Of the approximate $39.4 million increase, $29.3 is an increase in net loans and $10.8 million in 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. On the funding side in 2004, deposits have increased by $29.5 million and other borrowings by a net of $6.2 million, including a $6.8 million decrease in the securitized bonds. CAPITAL As of June 30, 2004, the Company had $36,030,000 in equity capital, or 10.49% of consolidated total assets, and book value per share was $6.30. DIVIDEND DECLARED The Board of Directors announced that they have declared a quarterly dividend of $.04 per common share, payable August 17, 2004 to shareholders of record as of the close of business on August 2, 2004. At this quarterly rate, the annual dividend is equivalent to $.16 per common share. COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER Lynda J. Nahra, President and Chief Executive Officer, noted: "We are pleased with the Company's progress in 2004, especially in light of the continued difficult interest rate environment for the banking industry. We remain focused on our business model and core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating results are a partial reflection of that growth, the fact that the Company's interest margin has stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and that we continue to successfully manage the credit portfolio. 2004 Q 2 is the Company's eighth consecutive profitable quarter." 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 Goleta National Bank, soon to be known as Community West Bank, which has two full service branches, in Goleta and Ventura, and a loan production office in Santa Maria, California Santa Maria is the largest city in Santa Barbara County, California. According to the California State Department of Finance, Santa Maria's estimated population surpassed Santa Barbara's with an estimated population of 90,518. . The principal business activities of the Company are Relationship banking, Mortgage lending and SBA lending, with loans originating in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , Colorado, Florida, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , 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. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , 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 Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and Washington. See enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. financial tables 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Interest income $5,245 $5,199 $10,406 $10,379
Interest expense 1,945 2,427 3,884 5,045
---------- ---------- ---------- ----------
Net interest income 3,300 2,772 6,522 5,334
Provision for loan losses (30) 363 65 708
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 3,330 2,409 6,457 4,626
Non-interest income 3,438 2,517 5,871 5,186
Non-interest expenses 5,000 4,171 9,075 8,526
---------- ---------- ---------- ----------
Income before income taxes 1,768 755 3,253 1,286
Provision for income taxes 728 257 1,339 440
---------- ---------- ---------- ----------
NET INCOME $1,040 $498 $1,914 $846
========== ========== ========== ==========
Earnings per share:
Basic $0.18 $0.09 $0.34 $0.15
Diluted 0.18 0.09 0.33 0.15
Weighted average shares:
Basic 5,714,168 5,690,224 5,710,792 5,690,224
Diluted 5,834,584 5,734,690 5,834,421 5,721,269
Selected average balance sheet items
----------------------------------------
Average assets $324,790 $298,155 $317,460 $297,380
Average gross loans 269,278 245,671 261,643 247,234
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
June 30, December 31,
2004 2003
---------------------
Cash and cash equivalents $27,781 $22,056
Interest-earning deposits in other financial
institutions 495 792
Investment securities 25,829 20,468
Loans:
Held for sale 44,617 42,038
---------- ----------
Held for investment 203,321 169,526
Less: Allowance (2,779) (2,652)
---------- ----------
Net held for investment 200,542 166,874
---------- ----------
Securitized loans 29,792 37,386
Less: Allowance (1,369) (2,024)
---------- ----------
Net securitized loans 28,423 35,362
---------- ----------
NET LOANS 273,582 244,274
---------- ----------
Other assets 15,875 16,660
---------- ----------
TOTAL ASSETS $343,562 $304,250
========== ==========
Deposits $254,358 $224,855
Repurchase agreements 19,899 14,394
FHLB advances 7,500 -
Bonds payable 19,331 26,100
Other liabilities 6,444 4,570
---------- ----------
TOTAL LIABILITIES 307,532 269,919
Stockholders' equity 36,030 34,331
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $343,562 $304,250
========== ==========
Shares outstanding 5,716,269 5,706,769
Book value per share $6.30 $6.02
Nonaccrual loans $7,702 $7,174
SBA guaranteed portion (4,774) (4,106)
---------- ----------
Nonaccrual loans, net $2,928 $3,068
========== ==========
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