Community West Bancshares Posts 15% Profit Increase of $1,289,000 for 2006 Q2 and 22% Increase for 2006 Six-Month Period.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 $1,289,000, or $.21 per share 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. , for the quarter ended June 30, 2006 (2006 Q2), compared to $1,119,000, or $.19 per share diluted, for the quarter ended June 30, 2005 (2005 Q2). For the six months ended June 30, 2006, the Company reported net income of $2,548,000, or $.43 per share diluted, compared to $2,097,000, or $.35 per share diluted, for the six months ended June 30, 2005. Net Interest Income Net interest income for the comparative quarters ended June 30 increased by $763,000. Total interest income for the comparative quarters ended June 30 increased by $2,260,000. $1,643,000 of the 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, partially offset by the decrease in 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. loans; and, $617,000 of the increase is attributed to higher interest rates. Interest expense on deposits for the comparative three-month period increased by $1,372,000. $808,000 of the increase is attributed to interest-bearing deposit growth and $564,000 is attributed to higher interest rates. Interest expense on borrowings increased $125,000, which is primarily rate-related. Provision for Loan Losses Overall, the general portfolio credit quality continues to be relatively stable and the Company continues to benefit from the low amounts of classified loans and net charge-offs. Non-Interest Income and Non-Interest Expenses Non-interest income decreased by $282,000 from 2005 Q2 to 2006 Q2 as the Company recorded declines in gains from loan sales and other loan fees. The Company continues to manage non-interest expenses as there was only a $281,000 increase in such expenses, which included a new branch location, for the comparative quarterly periods. BALANCE SHEET The Company's total assets increased to $469.2 million, or $24.8 million, at June 30, 2006 compared to $444.4 million at December 31, 2005. Net loans increased by $27.3 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 decreased by a net of $2.1 million. On the funding side in 2006, deposits have increased by $14.6 million while FHLB FHLB Federal Home Loan Bank advances have increased by $8.0 million. CAPITAL As of June 30, 2006, the Company had $44.3 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 9.45% of consolidated total assets, and book value per share was $7.67. DIVIDEND DECLARED The Board of Directors announced that they have declared a regular quarterly dividend of $.06 per common share, payable August 18, 2006 to shareholders of record as of the close of business on August 4, 2006. 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: "We are very satisfied that we were able to maintain our earnings momentum in this challenging interest rate and overall banking environment. Our consistency and focus on our business plan to grow the Bank organically continues to be an effective strategy. Accordingly, to better serve our expanding Ventura County market, we have announced that we will open our fifth branch location in Westlake Village in the fourth quarter 2006." 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 four full-service branch banking offices, in Goleta, Ventura, Santa Maria Santa Maria, city, Brazil Santa Maria (sän`tə mərē`ə), city (1991 pop. 217,592), Rio Grande do Sul state, S Brazil. It is a major railroad terminus and the site of an important military base. and 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. , with a fifth planned for Westlake Village, estimated to open in October 2006. 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. 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,
-------------------------------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Interest income $9,377 $7,117 $18,426 $13,445
Interest expense 3,908 2,411 7,424 4,471
---------- ---------- ---------- ----------
Net interest income 5,469 4,706 11,002 8,974
Provision for loan losses 144 264 325 434
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 5,325 4,442 10,677 8,540
Non-interest income 1,579 1,861 2,906 3,685
Non-interest expenses 4,687 4,406 9,197 8,662
---------- ---------- ---------- ----------
Income before income taxes 2,217 1,897 4,386 3,563
Provision for income taxes 928 778 1,838 1,466
---------- ---------- ---------- ----------
NET INCOME $1,289 $1,119 $2,548 $2,097
========== ========== ========== ==========
Earnings per share:
Basic $0.22 $0.19 $0.44 $0.37
Diluted 0.21 0.19 0.43 0.35
Weighted average shares:
Basic 5,780,664 5,745,014 5,773,729 5,743,154
Diluted 5,999,802 5,945,231 5,988,149 5,940,594
Selected average balance sheet items
------------------------------------
Average assets $459,084 $380,600 $455,349 $370,287
Average gross loans 401,717 326,538 393,604 317,162
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
June 30, December 31,
2006 2005
------------ ------------
Cash and cash equivalents $11,833 $13,732
Interest-earning deposits in other financial
institutions 534 532
Investment securities 31,140 31,296
Loans:
Held for sale 67,159 60,506
------------ ------------
Held for investment 345,634 324,965
Less: Allowance (3,997) (3,954)
------------ ------------
Net held for investment 341,637 321,011
------------ ------------
NET LOANS 408,796 381,517
------------ ------------
Other assets 16,880 17,277
------------ ------------
TOTAL ASSETS $469,183 $444,354
============ ============
Deposits $348,883 $334,238
FHLB advances 71,500 63,500
Other liabilities 4,473 4,381
------------ ------------
TOTAL LIABILITIES 424,856 402,119
Stockholders' equity 44,327 42,235
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $469,183 $444,354
============ ============
Shares outstanding 5,781,653 5,751,313
Book value per share $7.67 $7.34
Nonaccrual loans $4,550 $6,797
SBA guaranteed portion (2,425) (4,332)
------------ ------------
Nonaccrual loans, net $2,125 $2,465
============ ============
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