Community West Bancshares Announces Fourth Quarter Results.Business Editors GOLETA, Calif.--(BUSINESS WIRE)--Feb. 25, 2003 Community West Bancshares (Nasdaq:CWBC CWBC Constant-Weight Binary Code ) (Company) today announced operating results for the fourth quarter of 2002. Earnings The Company recorded net income of $979,000, or $.17 per share (basic and diluted), for the quarter ended December 31, 2002 (2002 Q 4), compared to net loss of $(3,915,000), or $(.69) per share (basic and diluted), for the quarter ended December 31, 2001 (2001 Q 4). For the fiscal year ended December 31, 2002, the Company recorded net loss of $(1,270,000), or $(.22) per share (basic and diluted), compared to net income of $22,000, or $.00 per share (basic and diluted), for the fiscal year ended December 31, 2001. Net interest income for 2002 Q 4 was virtually the same as 2001 Q 4. However, the provision for loan losses was $168,000 for 2002 Q 4 compared to $3,251,000 for 2001 Q 4. During fiscal 2002, the credit quality has substantially improved, primarily due to the Company's tightened credit underwriting standards and 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 certain loan products. This includes high loan-to-value (HLTV HLTV High Loan to Value HLTV Half-Life Television HLTV Half Life True Voice ) and subprime lending  This article or section may deal primarily with the U.S. and may not present a worldwide view. loans, discontinued in the second quarter of 2002, and
short-term consumer loans, formally discontinued as of December 31,
2002. In addition, the securitized securitizedOf, 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 and pay down. The aforementioned product discontinuance, and the centralization of the support functions of the Small Business Administration (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 Mortgage Lending Division of Goleta National Bank (Goleta or Bank), along with internal cost reduction programs, contributed to a decrease in other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from $8,129,000 in 2001 Q 4 to $4,547,000 in 2002 Q 4. Lynda Nahra, President of Goleta, noted: "While we continue to focus our energy on our core business, we are pleased that our profit improvement initiatives are having a favorable impact on our operating results. 2002 was an eventful year for the Company and 2002 Q 4 is the second consecutive profitable quarter. Our success to date is a credit to the diligent and skilled staff, who have met the many challenges and helped sharpen the Company's focus. This gives us confidence that we are on the correct path to enhancing the financial condition and results of operations for the benefit of our stockholders." Goleta recently announced that it was significantly expanding its SBA lending division by acquiring a group of seasoned professionals, enabling the Bank to have an expanded presence in Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern , specifically the Sacramento and Bay areas. As previously announced, as of December 31, 2002, Goleta ceased making short-term consumer loans through its agent, ACE Cash Express (ACE). As part of that agreement, ACE agreed to indemnify To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which 100%, instead of the prior 90%, of Goleta's losses and expenses incurred after November 1, 2002 from certain third-party claims regarding such loans, including pending and future legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. . The 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. program contributed $1.3 million and $4.3 million, respectively, of income before indirect, overhead and income taxes for the three and the twelve months ended December 31, 2002. To replace such assets, and as part of its strategic plan, the Company plans to increase its presence in Relationship Banking and periodically retain for its own portfolio more SBA loans, particularly the guaranteed portions. In addition, the Company will explore other ways to improve its net interest margin, including the short-term investing in government-agency guaranteed securities. These initiatives, in conjunction with our continued focus on controlling expenses, are intended to enhance the Company's overall operating performance. As of December 31, 2002, the Company had $32,087,000 in equity capital, or 10.48% of consolidated total assets. Additionally, Goleta 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 13.31% as of December 31, 2002. Book value per share of the Company as of December 31, 2002 was $5.64. 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. . Goleta is one of the Nation's largest SBA lenders with loan production offices located in California, Alabama, Florida, Georgia, Nevada, 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. The principal business activities of the company are Relationship Banking, Small Business Administration (SBA) Lending and Mortgage Lending. 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. Furthermore, the Company has certain restrictions placed on its operations by the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. (OCC OCC See: Options Clearing Corporation OCC See Options Clearing Corporation (OCC). ) until the OCC deems that Goleta has substantially complied with the Consent Order, issued by the OCC on October 28, 2002 and signed by Goleta, and releases Goleta therefrom.
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
(in 000's, except share and per share data)
Quarter Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
Interest income $7,098 $8,635 $29,976 $40,794
Interest expense 2,989 4,561 13,466 20,338
Net interest income 4,109 4,074 16,510 20,456
Provision for loan losses 168 3,251 4,899 11,880
Net interest income after
provision for loan losses 3,941 823 11,611 8,576
Other income 2,561 2,115 11,398 22,171
Other expenses 4,547 8,129 24,931 32,006
Income (loss) before
income taxes 1,955 (5,191) (1,922) (1,259)
Provision (benefit) for
income taxes 976 (1,276) (652) (1,281)
NET INCOME (LOSS) $979 $(3,915) $(1,270) $22
Earnings per share:
Basic $0.17 $(0.69) $(0.22) $0.00
Diluted 0.17 (0.69) (0.22) 0.00
Weighted average shares:
Basic 5,690,224 5,675,849 5,690,224 5,947,658
Diluted 5,703,459 5,675,849 5,690,224 5,998,003
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in 000's, except share and per share data)
December 31, September 30, December 31,
2002 2002 2001
Cash and cash equivalents $33,371 $29,604 $35,344
Investments 6,824 10,272 893
Loans:
Held for sale 43,284 21,213 30,849
Held for investment 142,327 144,167 129,797
Less: Allowance (3,379) (4,147) (4,086)
Net held for
investment 138,948 140,020 125,711
Securitized loans 66,195 75,395 108,584
Less: Allowance (2,571) (2,999) (4,189)
Net securitized loans 63,624 72,396 104,395
NET LOANS 245,856 233,629 260,955
Other assets 20,187 23,843 26,671
TOTAL ASSETS $306,238 $297,348 $323,863
Deposits $219,083 $203,054 $196,166
Bonds payable 50,473 58,202 89,351
Other liablities 4,595 4,984 4,989
TOTAL LIABILITIES 274,151 266,240 290,506
Stockholders' equity 32,087 31,108 33,357
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $306,238 $297,348 $323,863
Shares outstanding 5,690,224 5,690,224 5,690,224
Book value per share $5.64 $5.47 $5.86
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