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Community West Bancshares Earns $2.6 Million, or $0.31 Per Diluted Share, in 4Q20 and $8.2 Million, or $0.97 Per Diluted Share, for the Year; Increases Quarterly Cash Dividend by 20% to $0.06 Per Common Share

Nachrichtenquelle: globenewswire
01.02.2021, 15:00  |  101   |   |   

GOLETA, Calif., Feb. 01, 2021 (GLOBE NEWSWIRE) -- Community West Bancshares (Community West or the Company), (NASDAQ: CWBC), parent company of Community West Bank (the “Bank”), today reported net income of $2.6 million, or $0.31 per diluted share, for the fourth quarter of 2020 (4Q20), compared to $2.9 million, or $0.33 per diluted share, for the third quarter of 2020 (3Q20), and $2.7 million, or $0.32 per diluted share, for the fourth quarter of 2019 (4Q19). For the full year 2020, net income increased 3.5% to $8.2 million, or $0.97 per diluted share, compared to $8.0 million, or $0.93 per diluted share, in 2019.

Fourth Quarter & Year over Year 2020 Financial Highlights:

  • Net income of $2.6 million, or $0.31 per diluted share in 4Q20, compared to $2.9 million, or $0.33 per diluted share in 3Q20, and $2.7 million, or $0.32 per diluted share in 4Q19.
  • Net interest income was $9.8 million for the quarter, compared to $9.6 million for 3Q20 and $8.8 million in 4Q19.
  • A provision credit for loan losses of $44,000 for the quarter, compared to a provision for loan losses of $113,000 for 3Q20, and a provision credit for loan losses of $210,000 for 4Q19. Total provision for 2020 was $2.1 million compared to 2019 which was a provision credit of $165,000. The resulting allowance was 1.23% of total loans held for investment at December 31, 2020, and 1.35% of total loans held for investment excluding the $69.5 million of Paycheck Protection Program (“PPP”) loans at December 31, 2020, which are 100% guaranteed by the Small Business Administration (“SBA”).*
  • Net interest margin improved to 4.13% for 4Q20, compared to 3.76% for 3Q20, and 4.07% for 4Q19.
  • Total demand deposits increased $34.7 million to $579.9 million at December 31, 2020, compared to $545.2 million at September 30, 2020, and increased $154.8 million compared to $425.1 million at December 31, 2019. Total demand deposits represented 75.7% of total deposits at December 31, 2020, compared to 72.8% at September 30, 2020, and 56.6% at December 31, 2019.
  • Total loans were $857.6 million at December 31, 2020, compared to $854.5 million at September 30, 2020, and $775.6 million at December 31, 2019.
  • Book value per common share increased to $10.50 at December 31, 2020, compared to $10.23 at September 30, 2020, and $9.68 at December 31, 2019.
  • The Bank’s community bank leverage ratio (CBLR) improved to 9.29% at December 31, 2020, compared to 8.79% at September 30, 2020. The CBLR ratio was adopted on January 1, 2020 and did not apply at December 31, 2019.
  • Net non-accrual loans were $3.7 million at December 31, 2020 compared to $2.3 million at September 30, 2020, and $2.4 million at December 31, 2019.
  • Other assets acquired through foreclosure, net, was $2.6 million at December 31, 2020 compared to $2.7 million at September 30, 2020, and $2.5 million at December 31, 2019.

*Non GAAP

COVID-19 Pandemic Update
“Our fourth quarter and year end results reflect solid operating performance, with strong core deposit growth, improved operating efficiencies and an expanded net interest margin,” stated Martin E. Plourd, President and Chief Executive Officer. “Part of our success in 2020 included our participation in the SBA’s PPP program. During the year, we generated 521 SBA PPP loans totaling $76.6 million to our clients since the program’s inception in April to the conclusion of the original program. At December 31, 2020 we had 501 loans totaling $69.5 million. As of January 15, 2021, we had 26 loans for $9.3 million forgiven by the SBA. We have another 47 requests for forgiveness submitted to us for $17.9 million and plan to circulate the one-page forgiveness application to our remaining borrowers with loans of $150,000 or less by the end of the month. We have $1.6 million in net unrecognized fees related to the PPP that would be recognized as income once the loans are paid off or forgiven by the SBA. Our expectation is to see the first round of PPP funding forgiven by the end of the second quarter of 2021. As these loans are forgiven, we expect to use the liquidity to pursue new opportunities in our market, including strategies to improve loan growth, fund the second round of PPP loans and further reduce wholesale funding.”

The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020, providing additional COVID-19 stimulus relief, and it includes $284 billion for another round of PPP lending. The program offers new loans for companies that did not receive a PPP loan in 2020, and also “second draw” loans targeted at hard-hit businesses that have already spent their initial PPP proceeds. “We started offering this new round to our customers earlier this month with the same ‘client first’ strategy utilized in the first round. We took a conservative approach, putting our clients first, as opposed to opening the application process to both clients and non-clients. This allowed us to focus our resources on our clients and deliver an unparalleled experience during a very stressful time. Our Relationship Managers worked with each client through the entire process. This approach, and our client’s spreading the word to others, helped us to further build the Bank’s positive reputation. After assisting our clients, the Bank took applications from others who were not sufficiently assisted by their current bank. While we are still early in the second round, we anticipate successfully helping our customers as we did with the initial round of PPP funding,” said Plourd.

“Since the start of the pandemic, we have used conservative measures to keep our employees, clients, and communities safe,” said William F. Filippin, Chief Credit and Chief Administrative Officer. “We maintained all branch activity throughout the pandemic, while working with clients who are experiencing hardship. We remain focused on assessing the risks in our loan portfolio and working with our clients to minimize losses, and implemented an initial loan modification program to assist clients impacted by the pandemic with loan deferrals. The Bank initially granted 90-day or 180-day deferral requests in April of 2020. By late May, as our local markets began easing restrictions, we reverted to a standard 90-day payment deferral, with a longer term considered an exception, requiring additional approval. As a result, we have a mixture of payment deferral terms. 93% of deferred loans have now resumed payment.”

At the peak in July 2020, the Company had 269 loans on payment deferral for a total of $158.5 million. As of January 15, 2021, 9 loans remained on deferral for a total of $2.7 million. With the passage of The Economic Aid Act, the Company modified and extended its payment deferral program. The new program is for 90 days. To date, the Company has received very few requests for an additional payment deferral. The new requests have been from commercial or manufactured housing loan borrowers.

The table below shows the breakdown of deferrals by loan type:

  December 31, 2020   September 30, 2020   June 30, 2020
Loan segment Count Balance   Count Balance   Count Balance
    (in thousands)     (in thousands)     (in thousands)
Manufactured housing 8 $ 1,261   116 $ 15,984   142 $ 19,903
Commercial real estate 2   2,082   60   104,492   78   124,629
Commercial 3   1,767   24   8,520   36   10,825
SBA -   -   -   -   1   17
HELOC -   -   -   -   -   -
Single family real estate -   -   3   717   5   1,027
Consumer -   -   -   -   -   -
Total pandemic deferments 13 $ 5,111   203 $ 129,713   262 $ 156,401

“While the quantity of loan deferral requests has tapered off significantly since the onset of the pandemic, we continue to see clients experiencing financial hardship,” said Filippin. “New deferral requests are being granted based on stricter parameters including proof of financial hardship that can be validated, compared to earlier in the pandemic when they were offered with fewer restrictions in place. We continue to risk rate the deferred portfolio at ‘watch’ or worse status depending on the credit, and monitor frequently. The credit will remain in this risk rating after payments resume and until the borrower’s capacity to maintain payments has been validated.” The table below reflects the high-risk industry loans by type at December 31, 2020. The industries in our markets most heavily impacted include retail, healthcare, hospitality, schools and energy. The Company’s management team continues to evaluate the loans related to the affected industries, and at December 31, 2020, the Bank’s loans to these industries were $179.2 million, which is 20.9% of its $857.6 million loan portfolio.

Of the selected industry loans, $3.0 million, or 1.66%, are on non-accrual. Also, of the selected industries loans, the classified loans are $16.9 million, or 9.43%. The Bank has accommodated $2.1 million, or 1.16%, of these loans with payment deferrals in the selected industries. Additional detail by industry at December 31, 2020 is included in the table below.

Sectors Under Focus (Excluding PPP Loans)
As of 12/31/20 (in thousands)     Loans Outstanding   $ Non-accrual % Non-accrual   $ Classified % Classified   $ Deferrals % Deferral
Healthcare   $ 51,532 $ 1,483 2.88 % $ 1,827 3.55 % $ 0 0.00 %
Senior/Assted Living Facilities   $ 23,306 $ 0 0.00 % $ 0 0.00 % $ 0 0.00 %
Medical Offices   $ 19,306 $ 0 0.00 % $ 277 1.43 % $ 0 0.00 %
General Healthcare   $ 8,920 $ 1,483 16.63 % $ 1,550 17.38 % $ 0 0.00 %
Hospitality   $ 51,458 $ 1,471 2.86 % $ 5,321 10.34 % $ 1,469 2.85 %
Lodging   $ 40,546 $ 1,469 3.62 % $ 2,593 6.39 % $ 1,469 3.62 %
Restaurants   $ 10,912 $ 2 0.02 % $ 2,729 25.00 % $ 0 0.00 %
Retail Commercial Real Estate   $ 56,692 $ 16 0.03 % $ 9,610 16.95 % $ 614 1.08 %
Retail Services   $ 17,628 $ 0 0.00 % $ 18 0.10 % $ 0 0.00 %
Schools   $ 1,182 $ 0 0.00 % $ 0 0.00 % $ 0 0.00 %
Energy   $ 680 $ 0 0.00 % $ 114 16.74 % $ 0 0.00 %
Total   $ 179,172 $ 2,969 1.66 % $ 17 0.01 % $ 2,082 1.16 %

Income Statement
Net interest income increased 2.5% to $9.8 million in 4Q20, compared to $9.6 million in 3Q20, and increased 10.8% compared to $8.8 million in 4Q19. For the year 2020, net interest income increased 6.5% to $36.6 million compared to $34.4 million in 2019.

Non-interest income decreased to $970,000 in 4Q20, compared to $1.4 million in 3Q20, and $1.7 million in 4Q19. Other loan fees were $383,000 for 4Q20, compared to $539,000 in 3Q20, and $500,000 in 4Q19. Gain on sale of loans was $209,000 in 4Q20, compared to $424,000 in 3Q20, and $765,000 in 4Q19. Non-interest income increased 8.5% to $3.9 million for the year, compared to $3.6 million for 2019 primarily from loan fees. Service charge fee income for 2020 declined 37.6%, compared to 2019, primarily due to the Company’s adherence with the Cares Act initiative to waive certain transaction fees. The Company is uncertain as to when these transaction fees will be reinstated.

Net interest margin was 4.13% for 4Q20, a 37-basis point improvement compared to 3Q20, and a 6-basis point improvement compared to 4Q19. “Our continued focus on reducing our cost of funds contributed to the net interest margin expansion during the fourth quarter,” said Susan C. Thompson, Executive Vice President and Chief Financial Officer. “During the third and fourth quarters of 2020, we aggressively repriced our higher priced funding and will continue to look for opportunities for further reduction while interest rates remain low. We anticipate our net interest margin will remain stabilized as we move forward into 2021.” The cost of funds for 4Q20 improved 14 basis points to 0.69%, compared to 3Q20, and improved by 95 basis points compared to 4Q19. For the year 2020, the net interest margin was 3.89%, compared to 4.06% in 2019. For both 4Q20 and the year of 2020 the net interest margin was impacted negatively by 6 basis points, respectively, due to the Company’s participation in PPP lending.

The Company recorded a provision credit for loan losses of $44,000 in 4Q20. This compares to a provision for loan losses of $113,000 in 3Q20, and a provision credit for loan losses of $210,000 in 4Q19. For the year, the provision for loan losses totaled $1.2 million, compared to a provision credit for loan losses of $165,000 in 2019. The increase in the provision for the year was to reflect the estimated losses due to the current economic uncertainties resulting from the pandemic that may be currently masked by loan deferrals, PPP loans and other stimulus subsidies.

Non-interest expense totaled $7.1 million in 4Q20, compared to $6.7 million in 3Q20, and $6.8 million in 4Q19. For the year, non-interest expense was $27.5 million, compared to $26.8 million in 2019. The Company has implemented strategic initiatives focusing on expense control and improvement in operating efficiency, which will continue through 2021.

Balance Sheet
Total assets decreased to $975.4 million at December 31, 2020, compared to $1.04 billion, or 6.4%, at September 30, 2020, and increased $61.6 million, or 6.7%, compared to $913.9 million at December 31, 2019. Total loans increased modestly to $857.6 million at December 31, 2020, compared to $854.5 million, or 0.4%, at September 30, 2020, and increased $82.0 million, or 10.6%, compared to $775.6 million at December 31, 2019.

Commercial real estate loans outstanding (which include SBA 504, construction and land) were up 4.3% from year ago levels to $402.1 million at December 31, 2020, and comprise 46.9% of the total loan portfolio. Manufactured housing loans were up 9.0% from year ago levels to $280.3 million, and represent 32.7% of total loans. SBA PPP loans were $69.5 million at December 31, 2020, and represent 8.1% of total loans. Commercial loans (which include agriculture loans) were down 20.3% from year ago levels to $80.9 million, and represent 9.4% of the total loan portfolio. The majority of this decrease was in the agriculture portfolio as the Company switched its production focus from on-balance sheet to off-balance sheet Farmer Mac loans. In early 2020 when the Pandemic started, commercial lending in our markets materially slowed as “Shelter in Place” orders forced business closures. The slower commercial loan trend continued through most of 2020. During this time, the Company’s manufactured housing loan division continued with strong production levels and had a record year. During December and into the first part of 2021, loan production opportunities have increased as capital levels have improved, and as clients are taking advantage of historically low interest rates.

Total deposits were $766.2 million at December 31, 2020, compared to $749.2 million at September 30, 2020, and $750.9 million at December 31, 2019. Non-interest-bearing demand deposits were $181.8 million at December 31, 2020, a slight decrease compared to $190.1 million at September 30, 2020, and a $71.0 million increase compared to $110.8 million at December 31, 2019. Interest-bearing demand deposits increased $43.0 million to $398.1 million at December 31, 2020, compared to $355.1 million at September 30, 2020, and increased $83.8 million compared to $314.3 million at December 31, 2019. “Demand deposit growth has been strong, as consumers and businesses continue to build cash reserves, and federal programs such as the PPP also contributed to deposit growth,” said Thompson. “We have been effective at attracting new deposit clients to the Bank, resulting from our success with PPP lending and other relationship management focus.”

Certificates of deposit, which include brokered deposits, decreased $17.9 million during the quarter to $167.5 million at December 31, 2020, compared to $185.4 million at September 30, 2020, and decreased $142.6 million compared to $310.1 million at December 31, 2019. The reduction in these deposits was due to divesting some high-priced municipal and brokered deposits to lower cost, core funding.

Stockholders’ equity increased to $89.0 million at December 31, 2020, compared to $86.7 million at September 30, 2020, and $82.0 million at December 31, 2019. Book value per common share increased to $10.50 at December 31, 2020, compared to $10.23 at September 30, 2020, and $9.68 at December 31, 2019. The increase in capital will be utilized to grow the balance sheet and support dividends.

Credit Quality
At December 31, 2020, overall asset quality reflected some improvement due to positive loan risk rating migrations during 4Q20. Total classified loans increased for the year due to proactive risk rating of loans showing financial stress during the pandemic, while non-accrual loans increased due to one legacy loan of $1.5 million. Although criticized, classified and non-accrual loans increased during the year, the increase was determined not to be systemic or indicative of broader risk within the portfolio. All loans rated “Watch” or worse are monitored monthly and proactive measures are taken when any signs of deterioration to the credit are discovered.

“We continue to closely monitor all credit quality metrics,” said Plourd. “Although the full impact of the COVID-19 pandemic is still uncertain, with our capital levels and focus on credit quality within our portfolio, we expect to manage the economic risks and remain well capitalized.”

The Company recorded a provision credit for loan losses of $44,000 in 4Q20. This compares to a provision for loan losses of $113,000 in 3Q20, and a provision credit for loan losses of $210,000 in 4Q19. The allowance for credit losses, including the reserve for undisbursed loans, was $10.3 million, or 1.24% of total loans held for investment, at December 31, 2020. Net non-accrual loans, plus net other assets acquired through foreclosure, were $6.3 million at December 31, 2020, compared to $5.0 million at September 30, 2020, and $4.9 million at December 31, 2019.

Net non-accrual loans totaled $3.7 million at December 31, 2020, compared to $2.3 million at September 30, 2020, and $2.4 million at December 31, 2019. Of the $3.7 million of net non-accrual loans at December 31, 2020, $1.5 million were commercial real estate loans, $1.4 million were commercial loans, $0.6 million were manufactured housing loans, $0.1 million were single family real estate loans and $0.1 million were SBA loans.

There was $2.6 million in other assets acquired through foreclosure as of December 31, 2020, compared to $2.7 million at September 30, 2020, and $2.5 million at December 31, 2019. The majority of this balance relates to one property in the amount of $2.4 million.

Cash Dividend Declared
The Company’s Board of Directors increased its quarterly cash dividend by 20%, to $0.06 per common share, payable February 26, 2021 to common shareholders of record on February 9, 2021.

Stock Repurchase Program
The Company has reinstated its previously suspended stock repurchase program.

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, the largest publicly traded community bank serving California’s Central Coast area of Ventura, Santa Barbara and San Luis Obispo counties. Community West Bank has seven full-service California branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard and Paso Robles. The principal business activities of the Company are Relationship Banking, Manufactured Housing lending and Government Guaranteed lending.

Industry Accolades
In April 2020, Community West Bank was awarded a “Premier” rating by The Findley Reports. For 51 years, The Findley Reports has been recognizing the financial performance of banking institutions in California and the Western United States. In making their selections, The Findley Reports focuses on these four ratios: growth, return on beginning equity, net operating income as a percentage of average assets, and loan losses as a percentage of gross loans. We are also rated 5 star Superior by Bauer Financial.

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   Twelve Months Ended
    December 31,   September 30,   December 31,   December 31,   December 31,
      2020       2020     2019       2020     2019  
                     
Interest income                    
Loans, including fees   $ 10,790     $ 10,909   $ 11,136     $ 42,948   $ 43,890  
Investment securities and other     196       207     492       906     1,849  
Total interest income     10,986       11,116     11,628       43,854     45,739  
                     
Deposits     815       1,046     2,413       5,483     10,055  
Other borrowings     378       518     377       1,782     1,327  
Total interest expense     1,193       1,564     2,790       7,265     11,382  
Net interest income     9,793       9,552     8,838       36,589     34,357  
Provision (credit) for loan losses     (44 )     113     (210 )     1,223     (165 )
Net interest income after provision for loan losses     9,837       9,439     9,048       35,366     34,522  
Non-interest income                    
Other loan fees     383       539     500       1,546     1,383  
Gains from loan sales, net     209       424     765       920     765  
Document processing fees     129       152     116       513     423  
Service charges     83       75     160       354     567  
Other     166       162     123       579     469  
Total non-interest income     970       1,352     1,664       3,912     3,607  
Non-interest expenses                    
Salaries and employee benefits     4,594       4,402     4,141       17,968     17,094  
Occupancy, net     751       751     750       3,036     3,088  
Professional services     399       460     552       1,801     1,679  
Data processing     254       258     236       1,055     876  
Depreciation     202       205     214       821     864  
FDIC assessment     165       123     118       565     427  
Advertising and marketing     110       145     228       673     774  
Stock-based compensation     68       71     100       319     382  
Other     526       307     475       1,285     1,571  
Total non-interest expenses     7,069       6,722     6,814       27,523     26,755  
Income before provision for income taxes     3,738       4,069     3,898       11,755     11,374  
Provision for income taxes     1,111       1,209     1,179       3,510     3,411  
Net income   $ 2,627     $ 2,860   $ 2,719     $ 8,245   $ 7,963  
Earnings per share:                    
Basic   $ 0.31     $ 0.34   $ 0.32     $ 0.97   $ 0.94  
Diluted   $ 0.31     $ 0.33   $ 0.32     $ 0.97   $ 0.93  



COMMUNITY WEST BANCSHARES            
CONDENSED CONSOLIDATED BALANCE SHEETS            
(unaudited)            
(in 000's, except per share data)            
             
    December 31,   September 30,   December 31,
      2020       2020       2019  
             
Cash and cash equivalents   $ 1,587     $ 4,974     $ 2,539  
Interest-earning deposits in other financial institutions     58,953       124,590       80,122  
Investment securities     22,043       23,562       25,563  
Loans:            
Commercial     80,851       84,133       101,485  
Commercial real estate     402,148       394,547       385,642  
SBA     11,851       12,547       14,777  
Paycheck Protection Program (PPP)     69,542       75,683       -  
Manufactured housing     280,284       275,472       257,247  
Single family real estate     10,358       10,232       11,668  
HELOC     3,861       3,857       4,531  
Other (1)     (1,318 )     (2,001 )     213  
Total loans     857,577       854,470       775,563  
             
Loans, net            
Held for sale     31,229       32,562       42,046  
Held for investment     826,348       821,908       733,517  
Less: Allowance for loan losses     (10,194 )     (10,197 )     (8,717 )
Net held for investment     816,154       811,711       724,800  
NET LOANS     847,383       844,273       766,846  
             
Other assets     45,469       44,700       38,800  
             
TOTAL ASSETS   $ 975,435     $ 1,042,099     $ 913,870  
             
Deposits            
Non-interest-bearing demand   $ 181,837     $ 190,133     $ 110,843  
Interest-bearing demand     398,101       355,111       314,278  
Savings     18,736       18,555       15,689  
Certificates of deposit ($250,000 or more)     30,536       81,426       96,431  
Other certificates of deposit     136,975       103,955       213,693  
Total deposits     766,185       749,180       750,934  
Other borrowings     105,000       190,103       65,000  
Other liabilities     15,243       16,099       15,958  
TOTAL LIABILITIES     886,428       955,382       831,892  
             
Stockholders’ equity     89,007       86,717       81,978  
             
             
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 975,435     $ 1,042,099     $ 913,870  
             
Common shares outstanding     8,473       8,473       8,472  
             
Book value per common share   $ 10.50     $ 10.23     $ 9.68  
             
             
(1) Includes consumer, other loans, securitized loans, and deferred fees            



ADDITIONAL FINANCIAL INFORMATION                  
(Dollars in thousands except per share amounts)(Unaudited)                  
  Three Months Ended   Three Months Ended   Three Months Ended   Twelve Months Ended   Twelve Months Ended
PERFORMANCE MEASURES AND RATIOS December 31, 2020   September 30, 2020   December 31, 2019   December 31, 2020   December 31, 2019
Return on average common equity   11.85 %     13.33 %     13.35 %     9.70 %     10.15 %
Return on average assets   1.07 %     1.09 %     1.21 %     0.85 %     0.91 %
Efficiency ratio   65.68 %     61.65 %     64.88 %     67.96 %     70.47 %
Net interest margin   4.13 %     3.76 %     4.07 %     3.89 %     4.06 %
                   
  Three Months Ended   Three Months Ended   Three Months Ended   Twelve Months Ended Twelve Months Ended
AVERAGE BALANCES December 31, 2020   September 30, 2020   December 31, 2019   December 31, 2020   December 31, 2019
Average assets $ 977,736     $ 1,044,807     $ 887,902     $ 972,019     $ 872,509  
Average earning assets   944,073       1,011,765       862,350       940,993       846,673  
Average total loans   845,620       854,273       779,698       831,863       778,745  
Average deposits   726,223       733,486       725,029       730,884       726,022  
Average common equity   88,171       85,328       80,825       85,027       78,437  
                   
EQUITY ANALYSIS December 31, 2020   September 30, 2020   December 31, 2019        
Total common equity $ 89,007     $ 86,717     $ 81,978          
Common stock outstanding   8,473       8,473       8,472          
                   
Book value per common share $ 10.50     $ 10.23     $ 9.68          
                   
ASSET QUALITY December 31, 2020   September 30, 2020   December 31, 2019        
Nonaccrual loans, net $ 3,665     $ 2,258     $ 2,389          
Nonaccrual loans, net/total loans   0.43 %     0.26 %     0.31 %        
Other assets acquired through foreclosure, net $ 2,614     $ 2,707     $ 2,524          
                   
Nonaccrual loans plus other assets acquired through foreclosure, net $ 6,279     $ 4,965     $ 4,913          
Nonaccrual loans plus other assets acquired through foreclosure, net/total assets   0.64 %     0.48 %     0.54 %        
Net loan (recoveries)/charge-offs in the quarter $ (41 )   $ (76 )   $ (58 )        
Net (recoveries)/charge-offs in the quarter/total loans   (0.00 %)     (0.01 %)     (0.01 %)        
                   
Allowance for loan losses $ 10,194     $ 10,197     $ 8,717          
Plus: Reserve for undisbursed loan commitments   92       92       85          
Total allowance for credit losses $ 10,286     $ 10,289     $ 8,802          
Allowance for loan losses/total loans held for investment   1.23 %     1.24 %     1.19 %        
Allowance for loan losses/total loans held for investment excluding PPP loans   1.35 %     1.37 %     1.19 %        
Allowance for loan losses/nonaccrual loans, net   278.14 %     451.59 %     364.88 %        
                   
                   
Community West Bank *                  
Community bank leverage ratio   9.29 %     8.79 %   N/A          
Tier 1 leverage ratio   9.29 %     8.79 %     9.06 %        
Tier 1 capital ratio   11.02 %     10.96 %     10.28 %        
Total capital ratio   12.27 %     12.21 %     11.41 %        
                   
INTEREST SPREAD ANALYSIS December 31, 2020   September 30, 2020   December 31, 2019        
Yield on total loans   5.08 %     5.08 %     5.67 %        
Yield on investments   2.46 %     1.89 %     3.47 %        
Yield on interest earning deposits   0.15 %     0.23 %     1.66 %        
Yield on earning assets   4.63 %     4.37 %     5.35 %        
                   
Cost of interest-bearing deposits   0.60 %     0.77 %     1.57 %        
Cost of total deposits   0.45 %     0.57 %     1.32 %        
Cost of borrowings   1.03 %     0.98 %     2.31 %        
Cost of interest-bearing liabilities   0.69 %     0.83 %     1.64 %        
                   
* Capital ratios are preliminary until the Call Report is filed.                  


Transmitted on Globe Newswire on February 1, 2021 at 6:00 a.m. PST.


Contact: Susan C. Thompson, EVP & CFO
  805.692.5821
  www.communitywestbank.com 

Community West Bancshares Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de





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Community West Bancshares Earns $2.6 Million, or $0.31 Per Diluted Share, in 4Q20 and $8.2 Million, or $0.97 Per Diluted Share, for the Year; Increases Quarterly Cash Dividend by 20% to $0.06 Per Common Share GOLETA, Calif., Feb. 01, 2021 (GLOBE NEWSWIRE) - Community West Bancshares (Community West or the Company), (NASDAQ: CWBC), parent company of Community West Bank (the “Bank”), today reported net income of $2.6 million, or $0.31 per diluted share, …

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