Community West Bancshares, parent company of Community West Bank, this week reported a 21 percent increase in net income to $997,000, or $0.17 per share diluted, for the quarter ended March 31, compared with $826,000, or $0.14 per share diluted, a year ago.
Net interest income for the comparative quarter ended March 31 increased $416,000, primarily because the interest income related to the company’s net new business exceeded the decline in the net interest margin.
Total interest income for the comparative quarter ended March 31 increased $963,000. A $1.7 million increase is attributed to the strong comparative growth in interest-earning assets, primarily in the commercial lending, SBA and manufactured housing portfolios, and is partially offset by a $770,000 decrease attributed to lower interest rates.
Interest expense on deposits for the comparative three-month period increased $383,000. A $662,000 increase is attributed to interest-bearing deposit growth and is partially offset by a $279,000 decrease attributed to lower interest rates. Interest expense on borrowings increased $164,000, which represents a $233,000 increase related to volume offset by $69,000 attributed to lower interest rates.
Noninterest income increased $239,000 from 2007, primarily from an increase in gain on loan sales and higher net loan servicing fee income.
The company’s total assets increased $18.9 million to $628.8 million at March 31. Net loans increased $17.2 million and combined liquid assets and investment securities increased by a net of $1 million.
The board of directors announced a regular quarterly dividend of $0.06 per common share, payable May 16 to shareholders of record as of the close of business on May 2. At this quarterly rate, the annual dividend is equivalent to $0.24 per common share.
Lynda Nahra, president and chief executive officer, said: “Carrying over from 2007, we continue to experience numerous challenges in the banking industry with declining interest rates, sustained market turmoil related to several large financial services’ companies, real estate market struggles and economic instability extending down to the consumer.“
Community West Bancshares is a financial services company with headquarters in
Charles Baltuskonis is Community West Bancshares’ chief financial officer.