Community West Bancshares Announces That Earnings Increased 151% to $0.15 Per Share for 2004 First Quarter.Business Editors GOLETA, Calif.--(BUSINESS WIRE)--April 20, 2004 Community West Bancshares (Nasdaq:CWBC CWBC Constant-Weight Binary Code ) (Company) today announced operating results for the first quarter of 2004. EARNINGS SUMMARY For the quarter ended March 31, 2004 (2004 Q 1), the Company recorded net income of $874,000, or $.15 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 $348,000, or $.06 per share (basic and diluted), for the quarter ended March 31, 2003 (2003 Q 1). This represents a 151% increase in net income for 2004 Q 1 compared to 2003 Q 1, and a 93% increase in sequential net income from the $452,000 reported for the quarter ended December 31, 2003. Net Interest Income Net interest income before provision for loan losses increased to $3,222,000 for 2004 Q 1 from $2,561,000 for 2003 Q 1. While total interest income for the comparative periods was virtually unchanged, and interest expense on deposits decreased only slightly, 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 to $737,000 from $1,392,000, as the Company continues to benefit from the paydowns of the 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. . The average balance on the Securitized bonds declined to $24,657,000 for 2004 Q 1 from $48,325,000 for 2003 Q 1, and it has generally been replaced by more inexpensive sources such as deposits and repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. . Provision for Loan Losses The provision for loan losses was $95,000 for 2004 Q 1 compared to $344,000 for 2003 Q 1. Overall, the credit quality continues to improve due primarily 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 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 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 loan portfolio continues to stabilize stabilize See peg. and pay down. Non-Interest Income and Non-Interest Expenses Non-interest income declined to $2,434,000 for 2004 Q 1 from $2,669,000 for 2003 Q 1. The most significant factor was the comparative industry-wide decline in mortgage-related business. However, this business decline and the general ongoing internal cost reduction emphasis contributed to a decrease in non-interest expenses to $4,076,000 in 2004 Q 1 from $4,355,000 in 2003 Q 1. CAPITAL As of March 31, 2004, the Company had $35,317,000 in equity capital, or 11.20% of consolidated total assets, and book value per share was $6.18. COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER Lynda J. Nahra, President and Chief Executive Officer, noted: "We are extremely pleased with the results for 2004 Q 1, 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):
v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and now is improving, and we continue to successfully manage the credit portfolio and non-interest expenses. 2004 Q 1 is the Company's seventh 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 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 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, 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. 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 STATEMENT
(unaudited)
(in 000's, except share and per share data)
Quarter Ended March
31,
---------------------
2004 2003
---------- ----------
Interest income $5,161 $5,179
Interest expense 1,939 2,618
---------- ----------
Net interest income 3,222 2,561
Provision for loan losses 95 344
---------- ----------
Net interest income after provision for loan
losses 3,127 2,217
Non-interest income 2,434 2,669
Non-interest expenses 4,076 4,355
---------- ----------
Income before income taxes 1,485 531
Provision for income taxes 611 183
---------- ----------
NET INCOME $874 $348
========== ==========
Earnings per share:
Basic $0.15 $0.06
Diluted 0.15 0.06
Weighted average shares:
Basic 5,707,415 5,690,224
Diluted 5,834,439 5,711,031
Selected average balance sheet items
------------------------------------------------
Average assets $310,156 $296,525
Average gross loans 253,970 248,462
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in 000's, except share and per share data)
March 31, December
2004 31, 2003
---------- ----------
Cash and cash equivalents $14,484 $22,056
Interest-earning deposits in other financial
institutions 594 792
Investment securities 25,343 20,468
Loans:
Held for sale 44,643 42,038
---------- ----------
Held for investment 184,512 169,526
Less: Allowance (2,858) (2,652)
---------- ----------
Net held for investment 181,654 166,874
---------- ----------
Securitized loans 34,016 37,386
Less: Allowance (1,515) (2,024)
---------- ----------
Net securitized loans 32,501 35,362
---------- ----------
NET LOANS 258,798 244,274
---------- ----------
Other assets 16,079 16,660
---------- ----------
TOTAL ASSETS $315,298 $304,250
========== ==========
Deposits $237,358 $224,855
Bonds payable 22,876 26,100
Repurchase agreements 14,255 14,394
Other liablities 5,492 4,570
---------- ----------
TOTAL LIABILITIES 279,981 269,919
Stockholders' equity 35,317 34,331
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$315,298 $304,250
========== ==========
Shares outstanding 5,710,969 5,706,769
Book value per share $6.18 $6.02
Nonaccrual loans $7,875 $7,174
SBA guaranteed portion (4,839) (4,106)
---------- ----------
Nonaccrual loans, net $3,036 $3,068
========== ==========
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