Community West Bancshares, (NASDAQ: ​CWBC), parent company of Community West Bank, reported Jan. 26, 2016, net income of $1.9 million in the fourth quarter of 2015 (4Q15) compared to net income of $1.6 million in the third quarter (3Q15) and $2.2 million in the fourth quarter a year ago (4Q14).

For the full year, Community West reported net income of $2.9 million compared to net income of $7 million a year ago. Excluding the $7.1 million net loan litigation settlement, Community West’s net income for the year would have been $7 million. 

“Loan and deposit growth, solid net interest margin and continuing credit quality improvement fueled profitability in the fourth quarter,” said Martin E. Plourd, president and CEO. “We are optimistic about the opportunities for growth in 2016, particularly expanding further into San Luis Obispo County.” 

4Q15 Financial Highlights 

» Nonaccrual loans, net, decreased 54.5 percent to $5.0 million at Dec. 31, 2015, compared to $11 million a year ago, representing the lowest level since 3Q07. 

» Net income available to common stockholders for 4Q15 was $1.8 million, or $0.21 per diluted share, compared to $2 million, or $0.24 per diluted share, for 4Q14. The 4Q15 results included a provision for loan losses of ($277,000) compared to ($1.6 million) in 4Q14. 

» Annualized return on average assets was 1.19 percent. 

» Annualized return on average common equity was 11.96 percent. 

» Net interest margin was 4.9 percent for 4Q15 compared to 4.52 percent for 4Q14. One large nonaccrual loan relationship was paid off during the quarter and back interest was recorded, increasing yield on earning assets by 47 basis points. 

» Net loans increased 10.1 percent to $536.5 million at Dec. 31, 2015, compared to $487.3 million a year earlier. 

» Total deposits increased 14.1 percent to $544.3 million at Dec. 31, 2015, compared to $477.1 million a year ago. 

» Non-interest bearing deposits increased 33.3 percent to $76.5 million at Dec. 31, 2015, compared to $57.4 million a year earlier. 

» Other assets acquired through foreclosure remained low at $198,000 at Dec. 31, 2015, compared to $137,000 a year earlier. 

» Book value per common share was $7.55 at Dec. 31, 2015, compared to $7.31 a year ago. 

» Community West Bank’s capital ratios continue to be strong with its total risk-based capital ratio at 13.70 percent and Tier 1 leverage ratio at 10.38 percent at Dec. 31, 2015. 

Including $44,000 of preferred stock dividends, the net income available to common stockholders was $1.8 million, or $0.21 per diluted share, in 4Q15 compared to net income available to common stockholders of $1.5 million, or $0.17 per diluted share, in 3Q15 and net income available to common stockholders of $2.0 million, or $0.24 per diluted share, in 4Q14.

— Sally Villaluz Ghormley represents Community West Bancshares.