Attached files
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| 8-K - COMMUNITY WEST BANCSHARES 8-K 10-19-2009 - COMMUNITY WEST BANCSHARES / | form8k.htm |
Exhibit
99.1
445
Pine Avenue, Goleta, CA 93117
FOR
IMMEDIATE RELEASE
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Contact:
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Charles
G. Baltuskonis, EVP/CFO
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Phone:
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805-692-5821
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E-mail:
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cbaltuskonis@communitywestbank.com
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URL:
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www.communitywest.com
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SYMBOL:
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CWBC
(NASDAQ)
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Community
West Bancshares Reports Q3 Results
Goleta,
California, October 19, 2009 – Community West Bancshares (Company) (NASDAQ:
CWBC), parent company of Community West Bank, today reported net income of
$69,000 for the quarter ended September 30, 2009 (2009 Q3), compared to net
income of $675,000 for the quarter ended September 30, 2008 (2008
Q3). For the nine months ended September 30, 2009, the Company
reported a net loss of $(5,860,000) compared to net income of $1,420,000 for the
nine months ended September 30, 2008. Net income per diluted share
available to common shareholders, after the preferred stock dividends, was
$(.03) for 2009 Q3 compared to $.11 for 2008 Q3.
Net Interest
Income
Net
interest income for the comparative quarter ended September 30, 2009 increased
by $1,137,000, as the Company’s net interest margin increased by 52 basis
points, to 4.12% for 2009 Q3 from 3.60% for 2008 Q3.
Total
interest income for the comparative quarter ended September 30, 2009 decreased
by $958,000. A $1,321,000 decrease is attributed to lower interest
rates and is partially offset by a $363,000 increase attributed to loan
growth.
Interest
expense on deposits for the comparative quarter decreased by
$1,769,000. $1,641,000 of the decrease is attributed to lower
interest rates. Interest expense on borrowings decreased $326,000,
primarily due to lower interest rates.
Provision for Loan
Losses
The
Company recorded a $2,592,000 loan loss provision in 2009 Q3, reflecting the
detailed evaluation of its loan portfolio in the context of the overall
challenging economic environment which has persisted for the last
year. While a substantial part of the deterioration and downgrades to
specific loans in its portfolio was recognized in 2009 Q1, there continues to be
ongoing credit problems primarily relating to business loans, elevating the
component of the allowance calculation related to historical loan
losses. In general, the Company has experienced elevated levels of
loan losses over the past year thereby resulting in a significantly higher
allowance requirement. The migration of the losses through the loan
portfolio resulted in a calculated increase in the allowance from $7.3 million
at December 31, 2008 to $13.3 million at September 30, 2009. This
increase is directly related to the effect of historical loan losses on our
estimate of losses inherent in the portfolio as of the balance sheet dates and
does not necessarily reflect expected future losses. In addition,
non-accrual loans slightly increased from $16.9 million at December 31, 2008 to
$17.8 million at September 30, 2009.
Non-Interest Income and
Non-Interest Expenses
Non-interest
income decreased by $232,000 in 2009 Q3 compared to 2008 Q3, primarily because
2008 Q3 included gains on loan sales.
Non-interest
expenses were flat in the comparative quarters. While salaries and
employee benefits decreased by $498,000, this was offset primarily by an
increase of $301,000 in the FDIC deposit insurance assessment and expenses
related to disposals of foreclosed assets and an increase in the reserve on
undisbursed loans.
BALANCE
SHEET
The
Company’s total assets increased $17.4 million to $674.4 million at September
30, 2009 compared to $657.0 million at December 31, 2008. Net loans
increased by $12.1 million and combined liquid assets and investment securities
decreased by a net of $1.1 million.
On
the funding side, as of September 30, 2009, deposits increased by $54.3 million
while FHLB and FRB advances decreased by $30.0 million compared to December 31,
2008.
CAPITAL
As
of September 30, 2009, the Company had $60.3 million in total shareholders’
equity, or 8.95% of consolidated total assets, and book value per common share
was $7.75. The Company and Community West Bank continue to operate at
capital levels in excess of the “well capitalized” benchmarks.
COMMENTS
FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER
Lynda
J. Nahra, President and Chief Executive Officer, noted: “Our 2009 ongoing margin
improvement and Q1 cost reductions continue to enhance our positive operating
earnings. With the banking and operating environment still unsettled,
our resources are remaining focused on credit quality and our overall balance
sheet strength."
COMPANY
OVERVIEW
Community
West Bancshares is a financial services company with headquarters in Goleta,
California. The Company is the holding company for Community West
Bank, which has five full-service California branch banking offices, in Goleta,
Ventura, Santa Maria, Santa Barbara and Westlake Village. The
principal business activities of the Company are Relationship banking, Mortgage
lending and SBA lending.
See
enclosed financial tables
Safe
Harbor 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.
#####
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in
000's, except per share data)
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September
30
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December
31
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|||||||
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2009
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2008
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|||||||
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Cash
and cash equivalents
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$ | 8,679 | $ | 12,253 | ||||
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Interest-earning
deposits in other financial institutions
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832 | 812 | ||||||
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Investment
securities
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40,411 | 37,975 | ||||||
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Loans:
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||||||||
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Held
for sale
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99,611 | 131,786 | ||||||
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Held
for investment
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506,835 | 456,630 | ||||||
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Less:
Allowance
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(13,274 | ) | (7,341 | ) | ||||
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Net
held for investment
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493,561 | 449,289 | ||||||
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NET
LOANS
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593,172 | 581,075 | ||||||
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Other
assets
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31,258 | 24,866 | ||||||
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TOTAL
ASSETS
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$ | 674,352 | $ | 656,981 | ||||
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Deposits
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$ | 529,697 | $ | 475,439 | ||||
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FHLB
and FRB advances
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80,000 | 110,000 | ||||||
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Other
liabilities
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4,331 | 4,924 | ||||||
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TOTAL
LIABILITIES
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614,028 | 590,363 | ||||||
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Stockholders'
equity
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60,324 | 66,618 | ||||||
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TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 674,352 | $ | 656,981 | ||||
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Shares
outstanding
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5,915 | 5,915 | ||||||
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Book
value per common share
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$ | 7.75 | $ | 8.84 | ||||
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Non-accrual
loans, net
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$ | 17,770 | $ | 16,903 | ||||
CONDENSED
CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in
000's, except per share data)
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Quarter
Ended
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Nine
Months Ended
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|||||||||||||||
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September 30,
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September 30,
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|||||||||||||||
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2009
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2008
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2009
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2008
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Interest
income
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$ | 10,378 | $ | 11,336 | $ | 30,795 | $ | 34,727 | ||||||||
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Interest
expense
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3,467 | 5,562 | 11,887 | 16,989 | ||||||||||||
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Net
interest income
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6,911 | 5,774 | 18,908 | 17,738 | ||||||||||||
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Provision
for loan losses
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2,592 | 652 | 15,890 | 3,856 | ||||||||||||
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Net
interest income (loss) after provision for loan losses
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4,319 | 5,122 | 3,018 | 13,882 | ||||||||||||
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Non-interest
income
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966 | 1,198 | 3,389 | 4,252 | ||||||||||||
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Non-interest
expenses
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5,165 | 5,154 | 16,355 | 15,647 | ||||||||||||
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Income
(loss) before income taxes
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120 | 1,166 | (9,948 | ) | 2,487 | |||||||||||
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Provision
(benefit) for income taxes
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51 | 491 | (4,088 | ) | 1,067 | |||||||||||
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NET
INCOME (LOSS)
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$ | 69 | $ | 675 | $ | (5,860 | ) | $ | 1,420 | |||||||
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Preferred
stock dividends
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261 | - | 784 | - | ||||||||||||
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NET
INCOME (LOSS) AVAILABLE TO
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||||||||||||||||
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COMMON
SHAREHOLDERS
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$ | (192 | ) | $ | 675 | $ | (6,644 | ) | $ | 1,420 | ||||||
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Earnings
(loss) per common share:
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||||||||||||||||
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Basic
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$ | (0.03 | ) | $ | 0.11 | $ | (1.12 | ) | $ | 0.24 | ||||||
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Diluted
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(0.03 | ) | 0.11 | (1.12 | ) | 0.24 | ||||||||||
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Weighted
average shares:
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||||||||||||||||
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Basic
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5,915 | 5,915 | 5,915 | 5,912 | ||||||||||||
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Diluted
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5,915 | 5,918 | 5,915 | 5,955 | ||||||||||||
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Selected average balance sheet
items
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||||||||||||||||
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Average
assets
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$ | 676,625 | $ | 651,732 | $ | 673,820 | $ | 638,788 | ||||||||
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Average
gross loans
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606,066 | 577,682 | 603,802 | 565,942 | ||||||||||||
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Average
deposits
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504,029 | 491,533 | 492,316 | 472,942 | ||||||||||||