Saturday, October 20 , 2018, 11:14 am | Fair 78º

 
 
 
 

Community West Bancshares Earns $1.6 Million in 3rd Quarter

Community West Bancshares, parent company of Community West Bank, has reported net income was $1.6 million, or $0.18 per
diluted share, in the third quarter of 2017.

That figure was unchanged from earnings in the second quarter of 2017 and increased 4.9 percent compared to $1.5 million, or $0.18 per diluted share, in the third quarter of 2016.

In the first nine months of 2017, net income increased 14.8 percent to $4.5 million, or $0.52 per diluted share, compared to $3.9
million, or $0.46 per diluted share, in the first nine months of 2016.

“Our expansion in our market in California’s Central Coastal region continues to deliver strong loan and deposit growth
and is supporting our strong net interest margin,” said Martin E. Plourd, president/CEO.

“Profitability in our third quarter was consistent with our strong results posted in the preceding quarter, and year-to-date
earnings grew 14.8 percent compared to the first nine months of fiscal 2016, reflecting the growth initiatives we are implementing,” Plourd said.

Third Quarter 2017 financial highlights:

» Net income $1.6 million, or $0.18 per diluted share.
» Net interest margin 4.27 percent.
» Net loans increased $29.5 million to $714.4 million at Sept. 30, compared to $684.8 million three months earlier and increased $119.7 million compared to $594.7 million a year ago.
» Non-interest-bearing deposits increased 32.0 percent to $116.2 million at Sept. 30, compared to $88.0 million a year ago.
» Book value per common share increased to $8.54 at Sept. 30, compared to $7.93 a year ago.
» Annualized return on average assets was 0.78 percent.
» Annualized return on average common equity was 8.88 percent.
» The bank continues to be well-capitalized per banking regulations with its total capital ratio at 11.48 percent and Tier 1 leverage ratio at 8.90 percent at Sept. 30.

“While our net interest margin remains well above industry averages, net interest margin contracted in the third quarter, due to the current interest rate environment which raised our cost of funds,” said Susan C. Thompson, executive vice president/CFO.

Third-quarter net interest margin was 4.27 percent compared to 4.39 percent in the second quarter of 2017 and 4.81 percent
in third quarter 2016, which included a 39 basis-point asset yield increase from one large relationship which paid in full.

In the first nine months of 2017, Community West’s net interest margin was 4.36 percent compared to 4.58 percent in the first nine months of 2016.

Re: balance sheet growth, Plourd said, “Balance sheet growth reflects the solid demographics in our home markets, which are generating population growth and household incomes above both the state and national averages.”

“Commercial real estate and manufactured housing loans continue to generate the majority of loan growth in both the quarter and year-to-date periods," he said.

“Asset quality continues to improve on every metric, reflecting the strong economy in our market. We continue to increase
reserves to provide for the strong growth in the loan portfolio,” Plourd said.

The company’s Board of Directors declared a quarterly cash dividend of $0.04 per common share, payable Nov. 30 to common shareholders of record on Nov. 14, 2017. The current annualized yield, based on the closing price of CWBC shares of $10.40 on Sept. 30 was 1.54 percent.

On Aug. 24, the Board of Directors extended the common stock repurchase program of up to $3.0 million for two additional years. As of Sept. 30, 187,569 shares had been cumulatively repurchased at an average price of $7.25 per share, the company reports.

Community West Bancshares is a financial services company headquartered in Goleta. It is the holding company for Community West Bank, the largest publicly traded community bank serving the Central Coast.

— Susan C. Thompson for Community West Bancshares.

 

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