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EXHIBIT 99.1

Community West Bancshares Reports Second Quarter Results

GOLETA, Calif., July 26, 2011 (GLOBE NEWSWIRE) -- Community West Bancshares ("Community West"), (Nasdaq:CWBC), parent company of Community West Bank, today reported a net loss of $220,000 in the second quarter of 2011 (2Q11), compared to a net loss of $62,000 in the second quarter a year ago (2Q10). The loan loss provision was $3.2 million in 2Q11 compared to $2.9 million in 2Q10. Community West earned $375,000 in the first six months of 2011 compared to a net loss of $11,000 in the first six months of 2010.

"We continue to build reserves while working our way through this difficult credit cycle," stated William R. Peeples, Chairman, Interim President and Chief Executive Officer of Community West Bancshares. "The 2011 local and regional economy remains challenging and our top priority is to focus our diligent efforts on reducing and resolving non-performing assets." 

2Q11 Financial Results

  • Net loss applicable to common stockholders was $482,000, or $0.08 per diluted common share.
  • Net interest margin was 4.58% in 2Q11, a 5 basis point improvement compared to 1Q11 and an 11 basis point improvement compared to 2Q10.
  • Core deposits increased by 19.2% compared to a year ago, and now make up 68.8% of total deposits.
  • Nonperforming loans were $29.7 million, or 5.23% of total loans at June 30, 2011.
  • The total allowance for loan losses as a percentage of total loans held for investment was 3.09% at June 30, 2011, compared to 2.62% at March 31, 2011.
  • The allowance for loan losses equaled 51.3% of all nonperforming loans at June 30, 2011.
  • Community West Bank's Total risk-based capital ratio was 13.39%, Tier 1 risk-based capital ratio was 12.12% and Tier 1 leverage ratio was 9.59% at June 30, 2011.

Including $262,000 of preferred stock dividends, the net loss applicable to common stockholders was $482,000, or $0.08 per diluted share in 2Q11, compared to a net loss applicable to common stockholders of $324,000, or $0.05 per diluted share, in 2Q10.  

Credit Quality

Nonperforming loans totaled $29.7 million, or 5.23% of total loans at June 30, 2011, compared to $23.6 million, or 4.06% of total loans at March 31, 2011 and $14.6 million, or 2.41% of total loans at June 30, 2010. The increase in the past quarter is primarily due to one real estate relationship of $5.2 million, which was classified as an impaired loan during 2Q11 and a corresponding reserve of $1.3 million was recorded during the quarter. 

Of the $29.7 million in total nonperforming loans, $22.5 million or 75.6% were real estate loans, $3.8 million or 12.7% were SBA loans, $2.7 million or 9.2% were manufactured housing loans, $711,000 or 2.4% were commercial loans and $29,000 or 0.1% were other installment loans.

Net nonperforming assets totaled $36.8 million, or 5.71% of total assets, compared to $30.5 million, or 4.58% of total assets at March 31, 2011, and $19.5 million, or 2.90% of total assets, a year earlier. The loan loss provision was $3.2 million in 2Q11 compared to $983,000 in 1Q11 and $2.9 million in 2Q10. In the first six months of 2011, the loan loss provision was $4.1 million compared to $5.9 million in the first six months of 2010. The allowance for loan losses totaled $15.2 million at quarter-end, equal to 3.09% of total loans held for investment, compared to 2.62% at March 31, 2011 and 2.70% a year ago.

Community West had net charge-offs of $1.1 million in 2Q11, which was the same as in the preceding quarter. Net charge-offs were $3.4 million in 2Q10. 

Income Statement Review

Second quarter net interest income was $7.1 million compared to $7.2 million in 2Q10. In the first six months of 2011, net interest income was $14.2 million compared to $14.5 million in the first six months of 2010. In 2Q11, the net interest margin was 4.58% compared to 4.53% in 1Q11 and 4.47% in 2Q10. In the first six months of 2011, the net interest margin was 4.55% compared to 4.47% in the first six months of 2010.

Non-interest income was $815,000 in 2Q11, compared to $933,000 in 2Q10. In the first half of 2011, non-interest income was $1.6 million compared to $1.8 million in the first half of 2010. The decrease was due to a decline in loan origination fees and referral fees on SBA 504 loans. 

Non-interest expenses were $5.1 million in 2Q11 compared to $5.4 million in 2Q10. The reduction was partially due to a $305,000 reduction in loss on real estate owned during the second quarter. In the first six months of the year, non-interest expenses were $10.9 million compared to $10.4 million in the first six months of 2010. 

Balance Sheet

Net loans decreased from a year ago to $553.4 million at June 30, 2011 compared to $590.8 million at June 30, 2010, partly due to softening loan demand and some early loan payoffs. 

Commercial real estate loans outstanding decreased 2.6%, or $4.6 million, from year ago levels to $173.4 million at June 30, 2011, and comprise 30.5% of the total loan portfolio. Manufactured housing loans were down slightly from year ago levels to $193.1 million and represent 33.9% of total loans. Commercial loans were down 16.3% compared to a year ago and now represent 8.3% of the total loan portfolio and SBA loans decreased 10.7% from a year ago and now represent 21.2% of the total loan portfolio.

"Core deposits grew $56.7 million over the past 12 months, and now comprise 68.8% of total deposits. This growth is largely attributable to the continued success of our Lasting Impressions money market account," said Charles G. Baltuskonis, Executive Vice President and Chief Financial Officer. 

Total deposits were $511.1 million at June 30, 2011 compared to $539.0 million a year earlier. Non-interest-bearing accounts increased 52.2% to $54.4 million at June 30, 2011 compared to $35.7 million a year ago. Interest-bearing accounts increased 15.6% to $275.1 million compared to $237.9 million a year ago. Core deposits, defined as non-interest-bearing checking, interest-bearing checking, money market accounts and savings accounts, increased 19.2% to $351.9 million at June 30, 2011, compared to $295.2 million a year earlier while certificates of deposit decreased 34.7% over the same period to $159.3 million, compared to $243.8 million a year earlier.

Total assets were $643.8 million at quarter-end, compared to $671.5 million a year earlier. Stockholders' equity was $61.8 million at quarter-end, compared to $59.9 million a year earlier and book value per common share was $7.84 at quarter-end compared to $7.64 a year earlier.

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, Santa Barbara, Santa Maria, Ventura and Westlake Village. The principal business activities of the Company are Relationship banking, Mortgage lending and SBA lending.

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.

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
           
  Three Months Ended Six Months Ended 
  June 30,
2011
March 31,
2011
June 30,
2010
June 30,
2011
June 30,
2010
           
Interest income          
Loans  $ 8,865  $ 9,044  $ 9,323  $ 17,909  $ 18,857
Investment securities and other  271  286  380  557  788
Total interest income  9,136  9,330  9,703  18,466  19,645
Interest expense          
Deposits  1,472  1,670  1,958  3,142  4,017
Other borrowings and convertible debentures  578  591  514  1,169  1,102
Total interest expense  2,050  2,261  2,472  4,311  5,119
Net interest income  7,086  7,069  7,231  14,155  14,526
Provision for loan losses  3,157  983  2,872  4,140  5,946
Net interest income after 
provision for loan losses
 3,929  6,086  4,359  10,015  8,580
Non-interest income          
Other loan fees  411  230  494  641  846
Other  404  508  439  912  926
Total non-interest income  815  738  933  1,553  1,772
Non-interest expenses          
Salaries and employee benefits  2,707  3,109  2,858  5,816  5,866
Occupancy and equipment expenses  494  505  510  999  1,009
FDIC assessment  222  302  323  524  648
Professional services  236  215  239  451  442
Loss on sale and write-down of foreclosed real estate
and repossessed assets
 199  459  504  658  566
Other operating expenses  1,257  1,219  963  2,476  1,837
Total non-interest expenses  5,115  5,809  5,397  10,924  10,368
Income (loss) before income taxes  (371)  1,015  (105)  644  (16)
Provision for income taxes  (151)  420  (43)  269  (5)
           
NET INCOME (LOSS)  $ (220)  $ 595  $ (62)  $ 375  $ (11)
           
Preferred stock dividends  262  262  262  524  524
           
NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS
 $ (482)  $ 333  $ (324)  $ (149)  $ (535)
           
           
Earnings (Loss) per common share:          
Basic  $ (0.08)  $ 0.06  $ (0.05)  $ (0.02)  $ (0.09)
Diluted  $ (0.08)  $ 0.05  $ (0.05)  $ (0.02)  $ (0.09)
 
 
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except per share data)
       
  June 30,
2011
December 31,
2010
June 30,
2010
       
Cash and cash equivalents  $ 7,536  $ 6,226  $ 5,749
Interest-earning deposits in other financial institutions  240  290  475
Investment securities  38,903  40,235  36,909
Loans:      
Commercial  47,194  57,369  56,381
Commercial real estate  173,434  173,906  177,994
SBA  120,340  128,721  134,736
Manufactured housing  193,060  194,682  198,194
Single family real estate  11,745  13,739  14,043
HELOC  20,983  20,273  20,676
Consumer  329  379  368
Mortgage loans held for sale  1,597  4,865  2,199
Total loans  568,682  593,934  604,591
       
Loans, net      
Held for sale  76,144  82,320  92,798
Held for investment  492,538  511,614  511,793
Less: Allowance  (15,237)  (13,302)  (13,837)
Net held for investment  477,301  498,312  497,956
NET LOANS  553,445  580,632  590,754
       
Other assets  43,707  40,221  37,597
       
TOTAL ASSETS  $ 643,831  $ 667,604  $ 671,484
       
Deposits      
Non-interest-bearing   $ 54,386  $ 35,767  $ 35,728
Interest-bearing  275,144  262,431  237,934
Savings  22,343  20,371  21,555
CDs over 100K  127,505  163,118  174,228
CDs under 100K  31,756  48,206  69,577
Total Deposits  511,134  529,893  539,022
Other borrowings  67,862  72,081  69,000
Other liabilities  2,997  3,988  3,570
TOTAL LIABILITIES  581,993  605,962  611,592
       
Stockholders' equity  61,838  61,642  59,892
       
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 643,831  $ 667,604  $ 671,484
       
Shares outstanding  5,984  5,916  5,915
       
Book value per common share  $ 7.84  $ 7.92  $ 7.64
 
 
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)
           
  Quarter Ended Quarter Ended Quarter Ended Six Months Ended
PERFORMANCE MEASURES AND RATIOS Jun. 30, 2011 Mar. 31, 2011 Jun. 30, 2010 Jun. 30, 2011 Jun. 30, 2010
Return on average common equity  -1.83% 4.98% -0.54% 1.57% -0.05%
Return on average assets  -0.13% 0.35% -0.04% 0.11% 0.00%
Efficiency ratio 64.74% 74.41% 66.11% 69.54% 63.62%
Net interest margin 4.58% 4.53% 4.47% 4.55% 4.47%
           
  Quarter Ended Quarter Ended Quarter Ended Six Months Ended
AVERAGE BALANCES Jun. 30, 2011 Mar. 31, 2011 Jun. 30, 2010 Jun. 30, 2011 Jun. 30, 2010
Average assets  $ 659,131  $ 672,504  $ 674,718  $ 665,782  $ 678,378
Average earning assets  620,776  633,204  649,069  626,952  654,987
Average total loans  574,059  587,193  603,219  580,585  606,673
Average deposits  523,119  534,008  542,720  528,536  538,984
Average equity (including preferred stock)  62,915  62,638  60,704  62,778  60,855
Average common equity (excluding preferred stock)  48,018  47,808  46,066  47,915  46,251
           
EQUITY ANALYSIS Jun. 30, 2011 Mar. 31, 2011 Jun. 30, 2010    
Total equity  $ 61,838  $ 62,243  $ 59,892    
Less: senior preferred stock  14,941  14,874  14,674    
Total common equity  $ 46,897  $ 47,369  $ 45,218    
           
Common stock outstanding  5,984  5,981  5,915    
Book value per common share  $ 7.84  $ 7.92  $ 7.64    
           
ASSET QUALITY Jun. 30, 2011 Mar. 31, 2011 Jun. 30, 2010    
Nonperforming loans (NPLs)  $ 29,724  $ 23,583  $ 14,574    
Nonperforming loans/total loans 5.23% 4.06% 2.41%    
REO and repossessed assets  $ 10,319  $ 9,664  $ 6,265    
Less: SBA-guaranteed amounts 3,274 2,743 1,333    
           
Net REO and repossessed assets  $ 7,045  $ 6,921  $ 4,932    
Nonperforming assets (net) 36,769 30,504 19,506    
Nonperforming assets/total assets 5.71% 4.58% 2.90%    
Net loan charge-offs in the quarter  $ 1,092  $ 1,113  $ 3,444    
Net charge-offs in the quarter/total loans  0.19% 0.19% 0.57%    
           
Allowance for loan losses  $ 15,237  $ 13,172  $ 13,837    
Plus: Allowance for undisbursed loan commitments  260  229  226    
Total allowance for credit losses  $ 15,497  $ 13,401  $ 14,063    
Total allowance for loan losses/total loans held for investment 3.09% 2.62% 2.70%    
Total allowance for loan losses/nonperforming loans 51.26% 55.85% 94.94%    
           
           
ADDITIONAL FINANCIAL INFORMATION          
(Dollars in thousands except per share amounts)(Unaudited)          
  Jun. 30, 2011 Mar. 31, 2011 Jun. 30, 2010    
Community West Bancshares          
Tier 1 leverage ratio 9.35% 9.22% 8.84%    
Tier 1 risk-based capital ratio 11.82% 11.60% 11.03%    
Total risk-based capital ratio 14.60% 14.34% 12.30%    
           
Community West Bank          
Tier 1 leverage ratio 9.59% 9.41% 8.80%    
Tier 1 risk-based capital ratio 12.12% 11.84% 10.97%    
Total risk-based capital ratio 13.39% 13.11% 12.23%    
           
INTEREST SPREAD ANALYSIS Jun. 30, 2011 Mar. 31, 2011 Jun. 30, 2010    
Yield on interest-bearing deposits 1.25% 1.39% 1.56%    
Yield on total loans 6.19% 6.25% 6.20%    
Yield on investments 2.36% 2.56% 3.40%    
Yield on earning assets 5.90% 5.98% 6.00%    
           
Cost of deposits 1.13% 1.27% 1.45%    
Cost of FHLB advances 2.60% 2.63% 2.96%    
Cost of interest-bearing liabilities 1.52% 1.64% 1.73%    
CONTACT: Charles G. Baltuskonis, EVP & CFO
         805.692.5821
         www.communitywestbank.com