Community West Bancshares Announces Earnings Per Share of $.08 for Fourth Quarter and $.38 for Year To Date.Business Editors GOLETA, Calif.--(BUSINESS WIRE)--Jan. 21, 2004 Community West Bancshares (Nasdaq:CWBC CWBC Constant-Weight Binary Code ) (Company) today announced operating results for year to date and the fourth quarter of 2003. Earnings Summary For the year ended December 31, 2003, the Company recorded net income of $2,183,000, or $.38 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 loss of $(1,270,000), or $(.22) per share (basic and diluted), for the year ended December 31, 2002. For the three months ended December 31, 2003 (2003 Q 4), the Company recorded net income of $452,000, or $.08 per share (basic and diluted), compared to net income of $979,000, or $.17 per share (basic and diluted), for the three months ended December 31, 2002 (2002 Q 4). Year Ended December 31, 2003 Compared to Year Ended December 31, 2002 Net interest income after provision for loan losses decreased to $9,372,000 for the year ended December 31, 2003 from $11,611,000 for the year ended December 31, 2002. The provision for loan losses decreased to $1,669,000 for the year ended December 31, 2003 from $4,899,000 for the year ended December 31, 2002. The Company's non-interest expenses decreased to $16,736,000 for the year ended December 31, 2003 from $24,931,000 for the year ended December 31, 2002. The primary improvement reasons are the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of high loan-to-value (HLTV HLTV High Loan to Value HLTV Half-Life Television HLTV Half Life True Voice ) and subprime loans Subprime Loan A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Notes: Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. , discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in 2002 Q 2, and short-term consumer loans, formally discontinued as of December 31, 2002. Also, the 2002 non-interest expenses include a $1,788,000 writedown for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of 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 interest only strips and servicing assets and a $1,381,000 lower of cost or market lower of cost or market A method for determining an asset's value such that either the original cost or the current replacement cost, whichever is lowest, is used for financial reporting purposes. provision on loans held for sale. 2003 Q 4 Compared to 2002 Q 4 Net interest income after provision for loan losses decreased to $2,223,000 for 2003 Q 4 from $3,941,000 for 2002 Q 4. Net interest income before provision for loan losses decreased to $2,886,000 for 2003 Q 4 from $4,109,000 for 2002 Q 4. There was a general decline in interest rates and a product mix change in the quarterly comparison, which have narrowed the Company's net interest margin, but the primary reason for the margin decrease is the termination of the high-yield, short-term consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. business. The provision for loan losses was $663,000 for 2003 Q 4 compared to $168,000 for 2002 Q 4. Comparatively, the provision for loan losses was lower in 2002 Q 4 as there were certain loans where the provision was reduced due to a payoff or an upgrade for an economic reason. Overall, the credit quality has continued to improve, beginning in 2002, primarily due to the Company's tightened credit underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards and the discontinuance of certain aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. loan products. In addition, 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. loan portfolio continues to stabilize stabilize See peg. and pay down. The specific overhead elimination associated with short-term consumer loans, along with an ongoing internal cost reduction emphasis, contributed to a decrease in non-interest expenses to $4,014,000 in 2003 Q 4 from $4,547,000 in 2002 Q 4. Lynda Nahra, President and Chief Executive Officer of the Bank, noted: "The results for 2003 Q 4 conclude a very successful year. Despite the continued difficult interest rate environment for the banking industry, we have remained 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):
Capital As of December 31, 2003, the Company had $34,331,000 in equity capital, or 11.28% of consolidated total assets, and book value per share was $6.02. Additionally, the Bank had a very strong risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. of 14.34% as of December 31, 2003. 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, which has two full service branches, one in Goleta and one in Ventura, California Incorporated in 1866, the city of San Buenaventura (usually referred to as Ventura) is the county seat of Ventura County, California. Ventura has a population of 106,744.[1] Ventura is accessible via U.S. . The principal business activities of the Company are Relationship Banking, Mortgage Lending and Small Business Administration Lending. The Bank is one of the nation's premier SBA lenders with loans originating in California, Alabama, Colorado, Florida, Georgia, 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, 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 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 BALANCE SHEET
(unaudited)
(in 000's, except share and per share data)
December 31
---------- ----------
2003 2002
---------- ----------
Cash and cash equivalents $22,056 $31,094
Interest bearing deposits in other financial
institutions 792 2,277
Investments 21,280 6,824
Loans:
Held for sale 41,838 43,284
---------- ----------
Held for investment 169,726 142,327
Less: Allowance (2,652) (3,379)
---------- ----------
Net held for investment 167,074 138,948
---------- ----------
Securitized loans 37,386 66,195
Less: Allowance (2,024) (2,571)
---------- ----------
Net securitized loans 35,362 63,624
---------- ----------
NET LOANS 244,274 245,856
---------- ----------
Other assets 15,848 21,159
---------- ----------
TOTAL ASSETS $304,250 $307,210
========== ==========
Deposits $224,855 $219,083
Bonds payable 26,100 50,473
Repurchase agreements 14,394 -
Other liabilities 4,570 5,567
---------- ----------
TOTAL LIABILITIES 269,919 275,123
Stockholders' equity 34,331 32,087
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $304,250 $307,210
========== ==========
Shares outstanding 5,706,769 5,690,224
Book value per share $6.02 $5.64
========== ==========
Nonaccrual loans $7,174 $13,965
SBA guaranteed portion (4,106) (8,143)
---------- ----------
Nonaccrual loans, net $3,068 $5,822
========== ==========
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
(in 000's, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
--------------------- ---------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Interest income $4,985 $7,098 $20,383 $29,976
Interest expense 2,099 2,989 9,342 13,466
---------- ---------- ---------- ----------
Net interest income 2,886 4,109 11,041 16,510
Provision for loan losses 663 168 1,669 4,899
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 2,223 3,941 9,372 11,611
Non-interest income 2,476 2,561 10,675 11,398
Non-interest expenses 4,014 4,547 16,736 24,931
---------- ---------- ---------- ----------
Income (loss) before income
taxes 685 1,955 3,311 (1,922)
Provision (benefit) for income
taxes 233 976 1,128 (652)
---------- ---------- ---------- ----------
NET INCOME (LOSS) $452 $979 $2,183 $(1,270)
========== ========== ========== ==========
Earnings per share:
Basic $0.08 $0.17 $0.38 $(0.22)
Diluted 0.08 0.17 0.38 (0.22)
Weighted average shares:
Basic 5,701,932 5,690,224 5,693,807 5,690,224
Diluted 5,827,918 5,695,301 5,758,200 5,690,224
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