Community West Bancshares (NASDAQ: CWBC), parent company of Community West Bank, today reported net income of $1.1 million in the second quarter of 2016 (2Q16) compared to net income of $1.3 million in the first quarter of 2016 (1Q16) and a net loss of $2.3 million in the second quarter of 2015 (2Q15).
In the first six months of the year, Community West reported net income of $2.4 million compared to a net loss of $572,000 in the first six months of 2015.
Excluding the net loan litigation settlement, Community West’s net income for the second quarter and the six-month period in 2015 would have been $1.9 million and $3.6 million, respectively.
“Our momentum during the first half of the year has been fueled by robust loan and deposit growth and continued improvements in credit quality,” stated Martin E. Plourd, president and CEO. “Our results reflect the investment in our future, with new branches in San Luis Obispo and Oxnard scheduled to open later this year, as well as the relocation of our Santa Maria branch. With the consolidation among banks in our market areas in recent years, we continue to offer responsive and flexible service from a locally-owned and operated bank.”
» Nonaccrual loans, net, decreased 49.4 percent to $4.0 million, or 0.70 percent of net loans at June 30, 2016, compared to $7.9 million, or 1.53 percent of net loans, a year ago, representing the lowest level since 3Q07.
» Net income available to common stockholders for 2Q16 was $1.1 million, or $0.13 per diluted share.
» Annualized return on average assets was 0.72 percent.
» Annualized return on average common equity was 7.15 percent.
» Net interest margin was 4.47 percent.
» Net loans increased 10.3 percent to $564.8 million at June 30, 2016, compared to $511.9 million a year ago.
» Non-interest-bearing deposits increased 15.5 percent to $83.5 million at June 30, 2016, compared to $72.3 million a year ago.
» Book value per common share was $7.81 at June 30, 2016, compared to $7.19 a year ago.
» The bank continues to be well-capitalized per banking regulations with its total risk-based capital ratio at 13.53 percent and Tier 1 leverage ratio at 10.53 percent at June 30, 2016.
» Received approval to open a full-service branch office in Oxnard.
Community West Bancshares is a financial services company with headquarters in Goleta. 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 and one loan production office in San Luis Obispo.
The principal business activities of the company are relationship business banking, manufactured housing lending and SBA lending.
— Sally Villaluz Ghormley is a publicist representing Community West Bancshares.