Community West Bancshares Reports Net Income of $1,259,000 for 2006 Q1, an Increase of 29%; Quarterly Dividend Increased by 20% to $.06 Per Share.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 $1,259,000, 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 March 31, 2006 (2006 Q1), compared to $978,000, or $.16 per share diluted, for the quarter ended March 31, 2005 (2005 Q1). Net Interest Income Net interest income for the comparative quarters increased by $1,265,000. Total interest income for the comparative quarters increased by $2,721,000. $1,766,000 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 $955,000 of the increase is attributed to higher interest rates. Interest expense on deposits for the comparative three-month period increased by $1,331,000. $781,000 of the increase is attributed to interest-bearing deposit growth, and $550,000 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 $498,000 from 2005 Q1 to 2006 Q1 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 slight increase in such expenses for the comparative quarterly periods. BALANCE SHEET The Company's total assets increased to $448.7 million, or $4.3 million, at March 31, 2006 compared to $444.4 million at December 31, 2005. Net loans increased by $1.7 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 increased by a net of $3.2 million. On the funding side in 2006 Q1, deposits increased by $4.5 million, while FHLB FHLB Federal Home Loan Bank Advances have decreased by $2.0 million. CAPITAL As of March 31, 2006, the Company had $43.4 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 9.67% of consolidated total assets, and book value per share was $7.51. DIVIDEND INCREASED The Board of Directors announced that they have declared a quarterly dividend of $.06 per common share, payable May 19, 2006, to shareholders of record as of the close of business on May 5, 2006. At this quarterly rate, the annual dividend is equivalent to $.24 per common share and represents a 20% increase in the payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. rate. COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER Lynda J. Nahra, President and Chief Executive Officer, noted: "In 2006 Q1, we continued the upward trend in profitable results. We did experience some seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in lending activity, but continued to pay attention to credit quality, maintaining or increasing our net interest margin and adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to our strategic plan. We remain focused on our business model of growing within our 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):
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. 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. . 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, 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 INCOME STATEMENT
(unaudited)
(in 000's, except share and per share data)
Quarter Ended March 31,
--------------------------------
2006 2005
--------------- --------------
Interest income $ 9,049 $ 6,328
Interest expense 3,516 2,060
--------------- --------------
Net interest income 5,533 4,268
Provision for loan losses 181 170
--------------- --------------
Net interest income after provision
for loan losses 5,352 4,098
Non-interest income 1,327 1,825
Non-interest expenses 4,510 4,257
--------------- --------------
Income before income taxes 2,169 1,666
Provision for income taxes 910 688
--------------- --------------
NET INCOME $ 1,259 $ 978
=============== ==============
Earnings per share:
Basic $ 0.22 $ 0.17
Diluted 0.21 0.16
Weighted average shares:
Basic 5,766,716 5,741,274
Diluted 5,975,933 5,955,102
Selected average balance sheet items
-------------------------------------
Average assets $ 451,577 $ 359,887
Average gross loans 385,498 307,659
Average deposits 340,251 272,838
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
March 31, December 31,
2006 2005
--------------- --------------
Cash and cash equivalents $ 18,118 $ 13,732
Interest-earning deposits in other
financial institutions 532 532
Investment securities 30,061 31,296
Loans:
Held for sale 57,398 60,506
--------------- --------------
Held for investment 329,688 324,965
Less: Allowance (3,908) (3,954)
--------------- --------------
Net held for investment 325,780 321,011
--------------- --------------
NET LOANS 383,178 381,517
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Other assets 16,819 17,302
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TOTAL ASSETS $ 448,708 $ 444,379
=============== ==============
Deposits $ 338,777 $ 334,238
FHLB advances 61,500 63,500
Other liabilities 5,026 4,406
--------------- --------------
TOTAL LIABILITIES 405,303 402,144
Stockholders' equity 43,405 42,235
--------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$ 448,708 $ 444,379
=============== ==============
Shares outstanding 5,780,153 5,751,314
Book value per share $ 7.51 $ 7.34
Nonaccrual loans $ 5,703 $ 6,797
SBA guaranteed portion (3,641) (4,332)
--------------- --------------
Nonaccrual loans, net $ 2,062 $ 2,465
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