Community West Bancshares Reports Record Earnings for 2005.GOLETA, Calif. -- Community West Bancshares (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 ): --Net Income for 2005 Fourth Quarter Increases by 46% to $1,394,000, or $.23 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. , Compared to $954,000, or $.16 Per Share Diluted, for 2004 Fourth Quarter --Net Interest Income Increases by 50% for 2005 Fourth Quarter --Net Income for 2005 is $5,642,000, or $.95 Per Share Diluted, Which Includes an Income Tax Credit of $914,000, or $.15 Per Share Diluted, Compared to Net Income of $3,835,000, or $.65 Per Share Diluted, for 2004 Community West Bancshares (Company) (NASDAQ:CWBC), parent company of Community West Bank, today reported record net income for the year ended December 31, 2005 of $5,642,000 compared to $3,835,000 for 2004. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for 2005 were $.95, a 46% increase over $.65 for 2004. Results for 2005 include an income tax credit of $914,000, or $.15 per share diluted, related to resolution of potential tax issues. For the quarter ended December 31, 2005 (2005 Q4), the Company recorded net income of $1,394,000, or $.23 per share diluted, compared to net income of $954,000, or $.16 per share diluted, for the quarter ended December 31, 2004 (2004 Q4). Net Interest Income Net interest income for the comparative three and twelve-month periods increased by $1,871,000 and $5,431,000, or 50% and 39%, respectively. Total interest income for the comparative three-month period increased by $2,954,000. $1,580,000 of the increase is attributed to the continued strong 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, $1,374,000 of the increase is attributed to higher interest rates. Total interest income for the comparative twelve-month period increased by $7,933,000. $4,635,000 of the increase is attributed to the net growth in interest-earning assets; and, $3,298,000 of the increase is attributed to higher interest rates. Interest expense on deposits for the comparative three-month period increased by $1,014,000. $429,000 of the increase is attributed to interest-bearing deposit growth and $585,000 is attributed to higher interest rates. Interest expense on borrowings increased $69,000. Interest expense on deposits for the comparative twelve-month period increased by $2,685,000. $1,269,000 of the increase is attributed to interest-bearing deposit growth and $1,416,000 is attributed to increased interest rates. Interest expense on borrowings decreased $183,000, substantially all of which was volume-related. In 2005 Q4, the Company completed its call of the remainder of the relatively high-rate, 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. . Provision for Loan Losses Overall, the general portfolio credit quality continues to be relatively stable and the Company continues to benefit from the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. loss experience of the loan portfolio. Non-Interest Income and Non-Interest Expenses Non-interest income decreased by $805,000 from 2004 Q4 to 2005 Q4, and for the twelve-month period from $10.5 million in 2004 to $7.3 million in 2005, as the Company recorded declines in gains from loan sales, loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. fees and other loan fees. The Company continues to manage non-interest expenses as there were only slight increases in such expenses for the comparative 2005 Q4 and annual periods. Provision for Income Taxes The effective income tax rate for calendar 2005 is less than that in calendar 2004 as a tax reserve of $914,000, or $.15 per share diluted, related to potential tax issues, was reversed in 2005 Q3 due to the resolution of the uncertainty. BALANCE SHEET The Company's total assets increased to $444.4 million, or $79.2 million, at December 31, 2005 compared to $365.2 million at December 31, 2004. Net loans increased by $91.0 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 $13.6 million. On the funding side in 2005, deposits have increased by $49.7 million while other borrowings have increased by $25.4 million in total. CAPITAL As of December 31, 2005, the Company had $42.2 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 9.50% of consolidated total assets, and book value per share was $7.34. DIVIDEND DECLARED The Board of Directors announced that they have declared a quarterly dividend of $.05 per common share, payable February 17, 2006 to shareholders of record as of the close of business on February 3, 2006. At this quarterly rate, the annual dividend is equivalent to $.20 per common share. COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER Lynda J. Nahra, President and Chief Executive Officer, noted: "Results for the year benefited from our continued attention to asset growth, credit quality, 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. The Company's overall growth included the opening of two full-service branch offices, in May 2005 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. , and in October 2005 in downtown Santa Barbara, California Santa Barbara is a city in California, United States. It is the county seat of Santa Barbara County, California. As of the 2000 census, the city had a total population of 92,325. . 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, 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. . 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, 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 STATEMENTS
(unaudited)
(in 000's, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
----------------------- ------------------------
2005 2004 2005 2004
---------- ---------- ---------- -----------
Interest income $ 8,682 $ 5,728 $ 29,778 $ 21,845
Interest expense 3,090 2,007 10,347 7,845
---------- ---------- ---------- -----------
Net interest
income 5,592 3,721 19,431 14,000
Provision for
loan losses 171 167 566 418
---------- ---------- ---------- -----------
Net interest
income after
provision for
loan losses 5,421 3,554 18,865 13,582
Non-interest
income 1,628 2,433 7,310 10,462
Non-interest
expenses 4,698 4,359 18,160 17,521
---------- ---------- ---------- -----------
Income before
income taxes 2,351 1,628 8,015 6,523
Provision for
income taxes 957 674 2,373 2,688
---------- ---------- ---------- -----------
NET INCOME $ 1,394 $ 954 $ 5,642 $ 3,835
========== ========== ========== ===========
Earnings per
share:
Basic $ 0.24 $ 0.17 $ 0.98 $ 0.67
Diluted 0.23 0.16 0.95 0.65
Weighted average
shares:
Basic 5,745,957 5,729,869 5,744,364 5,717,813
Diluted 5,945,664 5,928,946 5,931,011 5,867,236
----------------------------------------------------------------------
Selected average balance sheet items
------------------------------------
Average assets $ 426,072 $ 355,844 $ 393,210 $ 333,230
Average gross
loans 370,306 292,398 338,155 274,590
Average deposits 316,014 270,668 290,673 248,663
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
December 31
-------------------------------------
2005 2004
---------------- ----------------
Cash and cash equivalents $ 13,732 $ 30,205
Interest-earning deposits
in other financial
institutions 532 647
Investment securities 31,296 28,352
Loans:
Held for sale 60,506 45,988
---------------- ----------------
Held for investment 310,107 224,938
Less: Allowance (3,326) (2,785)
---------------- ----------------
Net held for investment 306,781 222,153
---------------- ----------------
Securitized loans 14,858 23,474
Less: Allowance (628) (1,109)
---------------- ----------------
Net securitized loans 14,230 22,365
---------------- ----------------
NET LOANS 381,517 290,506
---------------- ----------------
Other assets 17,302 15,493
---------------- ----------------
TOTAL ASSETS $ 444,379 $ 365,203
================ ================
Deposits $ 334,238 $ 284,568
FHLB advances 63,500 10,500
Repurchase agreements - 13,672
Bonds payable - 13,910
Other liabilities 4,406 4,984
---------------- ----------------
TOTAL LIABILITIES 402,144 327,634
Stockholders' equity 42,235 37,569
---------------- ----------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$ 444,379 $ 365,203
================ ================
Shares outstanding 5,751,314 5,729,869
Book value per share $ 7.34 $ 6.56
----------------------------------------------------------------------
Nonaccrual loans $ 6,797 $ 8,350
SBA guaranteed portion (4,332) (5,287)
---------------- ----------------
Nonaccrual loans, net $ 2,465 $ 3,063
================ ================
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion