Community West Bancshares (“Community West” or the “Company”),
(NASDAQ: CWBC), parent company of Community West Bank (the “Bank”),
today reported net income of $2.5 million, or $0.27 per diluted
share, for the first quarter of 2023, compared to $3.4 million, or
$0.38 per diluted share, for the preceding quarter, and $4.0
million, or $0.45 per diluted share, for the first quarter of 2022.
The Company’s Board of Directors declared a
quarterly cash dividend of $0.08 per common share, payable May 31,
2023, to common shareholders of record on May 12, 2023.
“Our first quarter 2023 results reflected a
strong balance sheet, net interest margin and stable credit quality
metrics” stated Martin E. Plourd, President & Chief Executive
Officer of Community West Bancshares. “With the destabilization of
our industry we quickly moved to secure liquidity to cover all
uninsured deposits. We benefited by previously having approximately
78% of our deposits fully insured or collateralized, which is the
direct result of our community-focused business model. We will
continue to focus on funding our balance sheet primarily through
core deposits. Our outlook over the next few quarters remains
cautious, as we anticipate a leaner loan pipeline, as recessionary
concerns continue, and deposit pricing pressures persist. While
recent developments in the banking industry have been unsettling in
the short term, we believe that with our resilient deposit
franchise, margin, sound capital levels and stable credit quality
we are well positioned to capitalize on new market
opportunities.”
First Quarter 2023 Financial
Highlights:
- Net income was
$2.5 million, or $0.27 per diluted share in the first quarter 2023,
compared to $3.4 million, or $0.38 per diluted share in fourth
quarter 2022, and $4.0 million, or $0.45 per diluted share in first
quarter 2022.
- Net interest
income decreased $1.1 million to $11.0 million for first quarter
2023, compared to $12.1 million in fourth quarter 2022, and
increased $294,000 compared to $10.7 million in first quarter
2022.
- Net interest
margin was 4.25% for the first quarter 2023, compared to 4.58% in
fourth quarter 2022, and 3.86% in first quarter 2022.
- Return on
average assets was 0.92% for the first quarter 2023, compared to
1.24% in fourth quarter 2022, and 1.39% in first quarter 2022.
- Return on
average common equity was 8.84% for the first quarter 2023,
compared to 11.98% in fourth quarter 2022, and 15.52% in first
quarter 2022.
- The Company
adopted and implemented Accounting Standard Update (ASU) 2016-13
(“CECL”) on January 1, 2023. The “Day 1” impact of the adoption was
a $1.8 million increase to the Allowance for Credit Losses (“ACL”)
and a $421,000 increase to the reserve for unfunded commitments
resulting in a $1.6 million decrease to retained earnings net of
tax.
- The Company
recorded a negative provision for credit loss expense of $607,000
for first quarter 2023, compared to a negative provision for loan
losses of $461,000 for fourth quarter 2022, and a negative
provision for loan losses of $284,000 for first quarter 2022.
- The ACL was
1.30% of total loans held for investment at March 31, 2023 compared
to 1.15% at December 31, 2022, and 1.22% at March 31, 2022.
- Net non-accrual loans increased to $1.6 million at March 31,
2023, compared to $211,000 at December 31, 2022, and $536,000 at
March 31, 2022.
- Total loans
decreased by $3.8 million to $951.5 million at March 31, 2023,
compared to $955.3 million at December 31, 2022, and increased
$61.2 million compared to $890.3 million at March 31, 2022.
- Total deposits
increased by $45.7 million during the quarter to $920.8 million at
March 31, 2023, compared to $875.1 million at December 31, 2022.
Non-interest-bearing demand deposits decreased $11.2 million, or
5%, to $205.3 million at March 31, 2023, compared to $216.5 million
at December 31, 2022.
- The Bank’s
uninsured or uncollateralized deposits totaled approximately 22% of
total deposits at March 31, 2023, compared to 25% at December 31,
2022.
- Available
borrowing capacity was $178 million at March 31, 2023.
- Stockholders’
equity increased $139,000 to $112.8 million at March 31, 2023,
compared to $112.7 million at December 31, 2022, and increased $7.9
million compared to $104.8 million at March 31, 2022.
- Book value per
common share decreased to $12.77 at March 31, 2023, compared to
$12.80 at December 31, 2022, and $12.07 at March 31, 2022.
- The Bank’s Tier
1 leverage ratio* was 10.41% at March 31, 2023, compared to 10.34%
at December 31, 2022, and 8.88% at March 31, 2022.
* Capital Ratios are preliminary.
Income Statement
Total interest income increased $307,000 in the
first quarter to $13.6 million, compared to $13.3 million in the
preceding quarter, and increased by $2.1 million compared to the
first quarter of 2022. Interest income from loans remained
unchanged at $12.5 million compared to the prior quarter. Interest
income from securities and interest-earning deposits increased
$285,000 compared to the prior quarter, primarily due to increased
average interest-earning deposit balances and higher yields due to
increased market rates. Total interest expenses for the quarter
increased $1.4 million compared to the prior quarter due to
increased average balances and rates paid on interest-bearing
demand deposits and time deposits. The increase in deposit expense
was largely due to increased levels of wholesale funding as the
Bank utilized wholesale funding sources to increase on-balance
sheet liquidity. Net interest income decreased 9.2% to $11.0
million in the first quarter 2023, compared to $12.1 million in the
preceding quarter, and increased 2.7% compared to $10.7 million in
first quarter 2022.
Net interest margin was 4.25% for first quarter
2023, a 33-basis point decrease compared to fourth quarter 2022,
and a 39-basis point increase compared to first quarter 2022. The
yield on loans for the first quarter 2023 increased 11 basis points
to 5.32%, compared to 5.21% for the fourth quarter 2022, resulting
from increased loan rates on new originations and the impact of
higher market rates. The yield on federal funds and
interest-earning deposits increased 102 bps to 4.41% for the first
quarter 2023 due to increases in rates earned for overnight
deposits and money market deposits. The cost of funds for the first
quarter increased 62 basis points to 1.09%, compared to 0.47% for
the preceding quarter due to higher rates paid on deposit accounts
and changes in the portfolio mix. Non-interest income for the first
quarter 2023 remained relatively unchanged at $762,000 compared to
$764,000 in fourth quarter 2022. Other loan fees were $169,000 for
the first quarter 2023 compared to $246,000 in fourth quarter 2022.
Gain on sale of loans increased $18,000 to $30,000 in the first
quarter 2023 compared to $12,000 in the fourth quarter of 2022 as a
result of higher sales during the quarter.
Non-interest expenses increased $140,000 to $8.7
million in the first quarter 2023 compared to $8.6 million in
fourth quarter 2022. The increase is primarily due to an increase
in salaries and benefits of $381,000 due to annual merit increases,
seasonal increases in payroll taxes and increased benefit costs;
increased stock-based compensation of $214,000 primarily due to
annual stock awards; and increased FDIC assessments of $71,000
because of higher assessment rates. The increases were partially
offset by lower professional fees of $317,000 due to less
consulting expense during the quarter and lower other non-interest
expenses of $174,000.
Income tax expense decreased $195,000 to $1.2
million in the first quarter of 2023 compared to $1.4 million in
the fourth quarter of 2022. The $1.2 million included a one-time
deferred tax expense adjustment of $158,000. The effective tax rate
for the first quarter of 2023 was 33.0% compared to 29.5% in the
fourth quarter of 2022.
Balance Sheet
Total assets increased $76.1 million, or 7%, to
$1.17 billion at March 31, 2023, compared to $1.09 billion at
December 31, 2022, and increased $30.9 million, or 2.7%, compared
to $1.14 billion, at March 31, 2022. Total interest-earning
deposits in other financial institutions increased $103.0 million
to $166.3 million at March 31, 2023, compared to $63.3 million at
December 31, 2022, and decreased $24.8 million compared to March
31, 2022. Total investment securities were $18.2 million at quarter
end, compared to $29.5 million in the prior quarter.
Total loans decreased $3.8 million, or 0.4%, to
$951.5 million at March 31, 2023, compared to $955.3 million at
December 31, 2022, and increased $61.2 million, or 6.9%, compared
to $890.3 million at March 31, 2022. Commercial real estate loans
outstanding (which include SBA 504, construction and land)
increased $10 million during the quarter to $555.3 million at March
31, 2023, compared to $545.3 million at December 31, 2022, and
increased $63.2 million compared to $492.2 million at March 31,
2022. Manufactured housing loans decreased $499,000 during the
quarter to $315.3 million at March 31, 2023, compared to $315.8
million at December 31, 2022, and increased $15.4 million compared
to $300 million at March 31, 2022. Commercial loans decreased $12.5
million during the quarter to $62.5 million at March 31, 2023,
compared to $75 million at December 31, 2022, and decreased $8
million compared to $70.5 million at March 31, 2022.
Total deposits increased $45.7 million, or 5.2%,
to $920.8 million at March 31, 2023, compared to $875.1 million at
December 31, 2022, and decreased $4.9 million, or 0.5%,
compared to $925.7 million at March 31, 2022. Non-interest-bearing
demand deposits were $205.3 million at March 31, 2023, a $11.2
million decrease compared to $216.5 million at December 31, 2022,
and a $20.7 million increase compared to $226.1 million at March
31, 2022. Interest-bearing demand deposits increased $9.6 million
to $437.8 million at March 31, 2023, compared to $428.2 million at
December 31, 2022, and decreased $66.4 million compared to $504.2
million at March 31, 2022. Certificates of deposit, which include
brokered deposits, increased $49.9 million during the quarter to
$256.8 million at March 31, 2023, compared to $206.9 million at
December 31, 2022, and increased $85.6 million compared to $171.2
million at March 31, 2022.
Total borrowings increased $25 million, or 28%,
to $115 million at March 31, 2023, compared to $90 million at
December 31, 2022, and March 31, 2022. The increase was due to $15
million in additional FHLB overnight advances and $10 million in
unsecured borrowing to support on-balance sheet liquidity.
Stockholders’ equity increased to $112.8 million
at March 31, 2023, compared to $112.7 million at December 31, 2022,
and $104.8 million at March 31, 2022. Book value per common
share decreased to $12.77 at March 31, 2023, compared to $12.80 at
December 31, 2022, and $12.07 at March 31, 2022.
Credit Quality
In accordance with changes in generally accepted
accounting principles, the Company adopted the new credit loss
accounting standard known as Current Expected Credit Loss (“CECL”)
on January 1, 2023. With the adoption, the allowance for credit
losses ("ACL") for loans increased by $1.8 million and the reserve
on unfunded commitments increased $420,000. Under CECL, the ACL is
based on expected credit losses rather than on incurred losses.
Adoption of CECL resulted in a cumulative effect after-tax
adjustment to stockholders’ equity as of January 1, 2023, of $1.6
million, which had no impact on earnings.
The Company recorded a negative provision for
loan loss expense of $607,000 in the first quarter 2023, compared
to a negative provision for loan loss expense of $461,000 in fourth
quarter 2022, and a negative provision expense of 284,000 in first
quarter 2022. The total allowance for credit losses was $12.1
million, or 1.30% of total loans held for investment, at March 31,
2023. Net non-accrual loans, plus net other assets acquired through
foreclosure, were $3.8 million at March 31, 2023, $2.5 million at
December 31, 2022, and $2.9 million at
March 31, 2022.
Net non-accrual loans were $1.6 million as of
March 31, 2023, compared to $211,000 at December 31, 2022, and
$536,000 at March 31, 2022. Of the $1.6 million of net
non-accrual loans at March 31, 2023, $817,000 were agriculture
loans, $628,000 were manufactured housing loans and $148,000 were
single family loans. The $817,000 in agriculture loans includes a
guaranteed balance of $735,000.
There was $2.3 million in other assets acquired
through foreclosure as of March 31, 2023 and on December 31, 2022.
This compared to $2.4 million at March 31, 2022. The OREO balance
relates to one property the Bank is currently marketing and expects
to sell this year.
Stock Repurchase Program
On August 27, 2021, the Company announced that
its Board of Directors had extended the stock repurchase plan until
August 31, 2023. The Company did not repurchase shares during the
first quarter of 2023, leaving $1.4 million available under the
previously announced 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.
Safe Harbor Disclosure
This release contains certain forward-looking
statements about the Company and the Bank that are intended to be
covered by the safe harbor for “forward-looking statements”
provided by the Private Securities Litigation Reform Act of 1995.
Statements that are not historical or current facts, including
statements about future financial and operational results,
expectations, or intentions are forward-looking statements. Such
statements 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 and
are subject to significant risks, contingencies, and uncertainties,
many of which are difficult to predict and are generally beyond our
control, which may cause actual results, performance, or
achievements to differ materially from those expressed in such
statements, including, but not limited to, risks from the COVID-19
pandemic, deterioration in the strength of the United States
economy in general and of the local economies in which we conduct
operations, the effect of, and changes in, trade, monetary and
fiscal policies and laws, including changes in the interest rate
policies of the Board of Governors of the Federal Reserve System,
continued high inflation,, disruptions in credit and capital
markets and government policies that could lead to a tightening of
credit and an increase in credit losses, our ability to attract and
retain deposits and other sources of funding and liquidity, the
impact of recent bank failures and other adverse developments to
financial institutions and the general reaction by bank customers
and by investors in the capital markets regarding the stability and
ability of banks to meet ongoing liquidity demands, risks from the
COVID-19 pandemic, weather, natural disasters, climate change,
increased unemployment, deterioration in credit quality of our loan
portfolio and/or the value of the collateral securing the repayment
of those loans, including those involving real estate, reduction in
the value of our investment securities, the costs and effects of
litigation and of adverse outcomes of such litigation, the cost and
ability to attract and retain key employees, a breach of our
operational or security systems, policies or procedures including
cyber-attacks on us or third party vendors or service providers,
regulatory or legal developments, United States tax policies,
including our effective income tax rate, and our ability to
implement and execute our business plan and strategy and expand our
operations as provided therein. Actual results may differ
materially from those set forth or implied in the forward-looking
statements as a result of a variety of factors including the risk
factors contained in documents filed by the Company with the
Securities and Exchange Commission and are available in the
“Investor Relations” section of our website,
https://www.communitywest.com/sec-filings/documents/default.aspx.
The Company is under no obligation (and expressly disclaims any
obligation) to update or alter such forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as required by law.
|
COMMUNITY WEST BANCSHARES |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
(in 000's, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,533 |
|
|
$ |
1,379 |
|
|
|
$ |
2,043 |
|
|
Interest-earning deposits in other financial institutions |
|
166,342 |
|
|
|
63,311 |
|
|
|
|
191,145 |
|
|
Investment securities |
|
18,225 |
|
|
|
29,470 |
|
|
|
|
21,805 |
|
|
Loans: |
|
|
|
|
|
|
|
Commercial |
|
62,477 |
|
|
|
74,929 |
|
|
|
|
70,480 |
|
|
Commercial real estate |
|
555,339 |
|
|
|
545,317 |
|
|
|
|
492,181 |
|
|
SBA |
|
6,418 |
|
|
|
6,855 |
|
|
|
|
8,403 |
|
|
Paycheck Protection Program (PPP) |
|
684 |
|
|
|
1,773 |
|
|
|
|
7,504 |
|
|
Manufactured housing |
|
315,326 |
|
|
|
315,825 |
|
|
|
|
299,969 |
|
|
Single family real estate |
|
9,582 |
|
|
|
8,678 |
|
|
|
|
8,824 |
|
|
HELOC |
|
2,557 |
|
|
|
2,613 |
|
|
|
|
3,475 |
|
|
Other (1) |
|
(890 |
) |
|
|
(648 |
) |
|
|
|
(528 |
) |
|
Total loans |
|
951,493 |
|
|
|
955,342 |
|
|
|
|
890,308 |
|
| |
|
|
|
|
|
|
|
Loans, net |
|
|
|
|
|
|
|
Held for sale |
|
21,045 |
|
|
|
21,033 |
|
|
|
|
24,193 |
|
|
Held for investment |
|
930,448 |
|
|
|
934,309 |
|
|
|
|
866,115 |
|
|
Less: Allowance for credit losses |
|
(12,065 |
) |
|
|
(10,765 |
) |
|
|
|
(10,547 |
) |
|
Net held for investment |
|
918,383 |
|
|
|
923,544 |
|
|
|
|
855,568 |
|
|
NET LOANS |
|
939,428 |
|
|
|
944,577 |
|
|
|
|
879,761 |
|
| |
|
|
|
|
|
|
|
Other assets |
|
42,055 |
|
|
|
52,765 |
|
|
|
|
41,849 |
|
| |
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,167,583 |
|
|
$ |
1,091,502 |
|
|
|
$ |
1,136,603 |
|
| |
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
Non-interest-bearing demand |
$ |
205,324 |
|
|
$ |
216,494 |
|
|
|
$ |
226,073 |
|
|
Interest-bearing demand |
|
437,770 |
|
|
|
428,173 |
|
|
|
|
504,209 |
|
|
Savings |
|
20,929 |
|
|
|
23,490 |
|
|
|
|
24,239 |
|
|
Certificates of deposit ($250,000 or more) |
|
6,268 |
|
|
|
6,693 |
|
|
|
|
13,197 |
|
|
Other certificates of deposit |
|
250,513 |
|
|
|
200,234 |
|
|
|
|
158,022 |
|
|
Total deposits |
|
920,804 |
|
|
|
875,084 |
|
|
|
|
925,740 |
|
|
Other borrowings |
|
115,000 |
|
|
|
90,000 |
|
|
|
|
90,000 |
|
|
Other liabilities |
|
18,990 |
|
|
|
13,768 |
|
|
|
|
16,035 |
|
|
TOTAL LIABILITIES |
|
1,054,794 |
|
|
|
978,852 |
|
|
|
|
1,031,775 |
|
| |
|
|
|
|
|
|
|
Stockholders' equity |
|
112,789 |
|
|
|
112,650 |
|
|
|
|
104,828 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
$ |
1,167,583 |
|
|
$ |
1,091,502 |
|
|
|
$ |
1,136,603 |
|
| |
|
|
|
|
|
|
|
Common shares outstanding |
|
8,835 |
|
|
|
8,798 |
|
|
|
|
8,682 |
|
| |
|
|
|
|
|
|
|
Book value per common share |
$ |
12.77 |
|
|
$ |
12.80 |
|
|
|
$ |
12.07 |
|
| |
|
|
|
|
|
|
|
(1) Includes consumer, other loans, securitized loans, and deferred
fees |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
COMMUNITY WEST BANCSHARES |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
(in 000's, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
March 31, |
|
December 31, |
September 30, |
June 30, |
|
March 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
12,489 |
|
|
$ |
12,467 |
|
|
$ |
11,867 |
|
$ |
11,129 |
|
$ |
11,194 |
|
|
Investment securities and other |
|
|
1,096 |
|
|
|
811 |
|
|
|
787 |
|
|
577 |
|
|
306 |
|
|
Total interest income |
|
|
13,585 |
|
|
|
13,278 |
|
|
|
12,654 |
|
|
11,706 |
|
|
11,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
2,277 |
|
|
|
913 |
|
|
|
528 |
|
|
500 |
|
|
570 |
|
|
Other borrowings |
|
|
278 |
|
|
|
224 |
|
|
|
203 |
|
|
196 |
|
|
194 |
|
|
Total interest expense |
|
|
2,555 |
|
|
|
1,137 |
|
|
|
731 |
|
|
696 |
|
|
764 |
|
|
Net interest income |
|
|
11,030 |
|
|
|
12,141 |
|
|
|
11,923 |
|
|
11,010 |
|
|
10,736 |
|
|
Provision (credit) for credit losses |
|
|
(607 |
) |
|
|
(461 |
) |
|
|
298 |
|
|
252 |
|
|
(284 |
) |
|
Net interest income after provision (credit) for credit losses |
|
|
11,637 |
|
|
|
12,602 |
|
|
|
11,625 |
|
|
10,758 |
|
|
11,020 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
Other loan fees |
|
|
169 |
|
|
|
246 |
|
|
|
292 |
|
|
377 |
|
|
246 |
|
|
Gains from loan sales, net |
|
|
30 |
|
|
|
12 |
|
|
|
49 |
|
|
136 |
|
|
60 |
|
|
Document processing fees |
|
|
78 |
|
|
|
85 |
|
|
|
114 |
|
|
122 |
|
|
101 |
|
|
Service charges |
|
|
154 |
|
|
|
143 |
|
|
|
114 |
|
|
93 |
|
|
88 |
|
|
Other |
|
|
331 |
|
|
|
278 |
|
|
|
303 |
|
|
323 |
|
|
796 |
|
|
Total non-interest income |
|
|
762 |
|
|
|
764 |
|
|
|
872 |
|
|
1,051 |
|
|
1,291 |
|
|
Non-interest expenses |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
5,202 |
|
|
|
4,821 |
|
|
|
4,752 |
|
|
4,910 |
|
|
4,865 |
|
|
Occupancy, net |
|
|
1,098 |
|
|
|
1,116 |
|
|
|
1,046 |
|
|
1,021 |
|
|
997 |
|
|
Professional services |
|
|
919 |
|
|
|
1,236 |
|
|
|
653 |
|
|
635 |
|
|
399 |
|
|
Data processing |
|
|
349 |
|
|
|
346 |
|
|
|
302 |
|
|
307 |
|
|
310 |
|
|
Depreciation |
|
|
180 |
|
|
|
176 |
|
|
|
173 |
|
|
179 |
|
|
183 |
|
|
FDIC assessment |
|
|
182 |
|
|
|
111 |
|
|
|
131 |
|
|
164 |
|
|
171 |
|
|
Advertising and marketing |
|
|
210 |
|
|
|
234 |
|
|
|
196 |
|
|
233 |
|
|
258 |
|
|
Stock-based compensation |
|
|
246 |
|
|
|
32 |
|
|
|
71 |
|
|
94 |
|
|
92 |
|
|
Other |
|
|
333 |
|
|
|
507 |
|
|
|
286 |
|
|
569 |
|
|
(304 |
) |
|
Total non-interest expenses |
|
|
8,719 |
|
|
|
8,579 |
|
|
|
7,610 |
|
|
8,112 |
|
|
6,971 |
|
|
Income before provision for income taxes |
|
|
3,680 |
|
|
|
4,787 |
|
|
|
4,887 |
|
|
3,697 |
|
|
5,340 |
|
|
Provision for income taxes |
|
|
1,216 |
|
|
|
1,411 |
|
|
|
1,409 |
|
|
1,062 |
|
|
1,380 |
|
|
Net income |
|
$ |
2,464 |
|
|
$ |
3,376 |
|
|
$ |
3,478 |
|
$ |
2,635 |
|
$ |
3,960 |
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.28 |
|
|
$ |
0.38 |
|
|
$ |
0.40 |
|
$ |
0.30 |
|
$ |
0.46 |
|
|
Diluted |
|
$ |
0.27 |
|
|
$ |
0.38 |
|
|
$ |
0.39 |
|
$ |
0.30 |
|
$ |
0.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
COMMUNITY WEST BANCSHARES |
|
|
|
|
|
|
|
|
|
Average Balance, Average Yield Earned, and Average Rate
Paid |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(in 000's) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
AverageBalance |
Interest |
AverageYield/Cost |
|
AverageBalance |
Interest |
AverageYield/Cost |
|
AverageBalance |
Interest |
AverageYield/Cost |
|
Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and interest-earning deposits |
$ |
73,179 |
|
$ |
795 |
4.41 |
% |
|
$ |
48,512 |
|
$ |
415 |
3.39 |
% |
|
$ |
205,815 |
|
$ |
109 |
0.21 |
% |
|
Investment securities |
|
27,213 |
|
|
301 |
4.49 |
% |
|
|
54,022 |
|
|
396 |
2.91 |
% |
|
|
26,897 |
|
|
197 |
2.97 |
% |
|
Loans (1) |
|
952,192 |
|
|
12,489 |
5.32 |
% |
|
|
949,007 |
|
|
12,467 |
5.21 |
% |
|
|
894,539 |
|
|
11,194 |
5.08 |
% |
|
Total earnings assets |
|
1,052,584 |
|
|
13,585 |
5.23 |
% |
|
|
1,051,541 |
|
|
13,278 |
5.01 |
% |
|
|
1,127,251 |
|
|
11,500 |
4.14 |
% |
|
Nonearning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
1,976 |
|
|
|
|
|
2,145 |
|
|
|
|
|
2,161 |
|
|
|
|
Allowance for credit losses |
|
(12,479 |
) |
|
|
|
|
(11,204 |
) |
|
|
|
|
(10,615 |
) |
|
|
|
Other assets |
|
38,716 |
|
|
|
|
|
36,432 |
|
|
|
|
|
39,138 |
|
|
|
|
Total
assets |
$ |
1,080,797 |
|
|
|
|
$ |
1,078,914 |
|
|
|
|
$ |
1,157,935 |
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
$ |
417,662 |
|
$ |
1,298 |
1.26 |
% |
|
$ |
442,313 |
|
$ |
591 |
0.53 |
% |
|
$ |
519,454 |
|
$ |
319 |
0.25 |
% |
|
Savings deposits |
|
23,230 |
|
|
12 |
0.21 |
% |
|
|
22,801 |
|
|
13 |
0.23 |
% |
|
|
23,931 |
|
|
16 |
0.27 |
% |
|
Time deposits |
|
200,875 |
|
|
967 |
1.95 |
% |
|
|
152,249 |
|
|
309 |
0.81 |
% |
|
|
175,448 |
|
|
235 |
0.54 |
% |
|
Total interest-bearing deposits |
|
641,767 |
|
|
2,277 |
1.44 |
% |
|
|
617,363 |
|
|
913 |
0.59 |
% |
|
|
718,833 |
|
|
570 |
0.32 |
% |
|
Other borrowings |
|
96,333 |
|
|
278 |
1.17 |
% |
|
|
92,391 |
|
|
224 |
0.96 |
% |
|
|
90,000 |
|
|
194 |
0.87 |
% |
|
Total interest-bearing liabilities |
$ |
738,100 |
|
$ |
2,555 |
1.40 |
% |
|
$ |
709,754 |
|
$ |
1,137 |
0.64 |
% |
|
$ |
808,833 |
|
$ |
764 |
0.38 |
% |
|
Noninterest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
211,940 |
|
|
|
|
|
241,759 |
|
|
|
|
|
227,980 |
|
|
|
|
Other liabilities |
|
17,766 |
|
|
|
|
|
15,555 |
|
|
|
|
|
17,640 |
|
|
|
|
Stockholders' equity |
|
112,991 |
|
|
|
|
|
111,846 |
|
|
|
|
|
103,482 |
|
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
1,080,797 |
|
|
|
|
$ |
1,078,914 |
|
|
|
|
$ |
1,157,935 |
|
|
|
|
Net interest income and margin |
|
$ |
11,030 |
4.25 |
% |
|
|
$ |
12,141 |
4.58 |
% |
|
|
$ |
10,736 |
3.86 |
% |
|
Net interest spread |
|
|
3.83 |
% |
|
|
|
4.37 |
% |
|
|
|
3.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of total deposits |
|
|
1.08 |
% |
|
|
|
0.42 |
% |
|
|
|
0.24 |
% |
|
Cost of funds |
|
|
1.09 |
% |
|
|
|
0.47 |
% |
|
|
|
0.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
(Dollars and shares in thousands except per share
amounts)(Unaudited) |
|
|
|
|
|
| |
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
PERFORMANCE MEASURES AND RATIOS |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
Return on average common equity |
|
8.84% |
|
|
|
11.98% |
|
|
|
15.52% |
|
|
Return on average assets |
|
0.92% |
|
|
|
1.24% |
|
|
|
1.39% |
|
|
Efficiency ratio |
|
73.94% |
|
|
|
66.48% |
|
|
|
57.97% |
|
|
Net interest margin |
|
4.25% |
|
|
|
4.58% |
|
|
|
3.86% |
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
AVERAGE BALANCES |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
Average assets |
$ |
1,080,797 |
|
|
$ |
1,078,914 |
|
|
$ |
1,157,935 |
|
|
Average earning assets |
|
1,052,584 |
|
|
|
1,051,541 |
|
|
|
1,127,251 |
|
|
Average total loans |
|
952,192 |
|
|
|
949,007 |
|
|
|
894,539 |
|
|
Average deposits |
|
853,707 |
|
|
|
859,122 |
|
|
|
946,813 |
|
|
Average common equity |
|
112,991 |
|
|
|
111,846 |
|
|
|
103,482 |
|
| |
|
|
|
|
|
|
EQUITY ANALYSIS |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
Total common equity |
$ |
112,789 |
|
|
$ |
112,650 |
|
|
$ |
104,828 |
|
|
Common stock outstanding |
|
8,835 |
|
|
|
8,798 |
|
|
|
8,682 |
|
| |
|
|
|
|
|
|
Book value per common share |
$ |
12.77 |
|
|
$ |
12.80 |
|
|
$ |
12.07 |
|
| |
|
|
|
|
|
|
ASSET QUALITY |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
Nonaccrual loans, net |
$ |
1,592 |
|
|
$ |
211 |
|
|
$ |
536 |
|
|
Nonaccrual loans, net/total loans |
|
0.17% |
|
|
|
0.02% |
|
|
|
0.06% |
|
|
Other assets acquired through foreclosure, net |
$ |
2,250 |
|
|
$ |
2,250 |
|
|
$ |
2,389 |
|
| |
|
|
|
|
|
|
Nonaccrual loans plus other assets acquired through foreclosure,
net |
$ |
3,842 |
|
|
$ |
2,461 |
|
|
$ |
2,925 |
|
|
Nonaccrual loans plus other assets acquired through foreclosure,
net/total assets |
|
0.33% |
|
|
|
0.23% |
|
|
|
0.26% |
|
|
Net loan (recoveries)/charge-offs in the quarter |
$ |
(96) |
|
|
$ |
(113) |
|
|
$ |
(427) |
|
|
Net (recoveries)/charge-offs in the quarter/total loans |
|
(0.01%) |
|
|
|
(0.01%) |
|
|
|
(0.05%) |
|
| |
|
|
|
|
|
|
Allowance for credit losses |
$ |
12,065 |
|
|
$ |
10,765 |
|
|
$ |
10,547 |
|
|
Plus: Reserve for undisbursed loan commitments |
|
400 |
|
|
|
94 |
|
|
|
90 |
|
|
Total allowance for credit losses |
$ |
12,465 |
|
|
$ |
10,859 |
|
|
$ |
10,637 |
|
|
Allowance for credit losses/total loans held for investment |
|
1.30% |
|
|
|
1.15% |
|
|
|
1.22% |
|
|
Allowance for credit losses/nonaccrual loans, net |
|
757.85% |
|
|
|
5101.90% |
|
|
|
1966.82% |
|
| |
|
|
|
|
|
|
Community West Bank * |
|
|
|
|
|
|
Tier 1 leverage ratio |
|
10.41% |
|
|
|
10.34% |
|
|
|
8.88% |
|
|
Tier 1 capital ratio |
|
11.76% |
|
|
|
11.44% |
|
|
|
11.33% |
|
|
Total capital ratio |
|
12.89% |
|
|
|
12.56% |
|
|
|
12.50% |
|
|
|
|
|
|
|
|
|
INTEREST SPREAD ANALYSIS |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
Yield on total loans |
|
5.32% |
|
|
|
5.21% |
|
|
|
5.08% |
|
|
Yield on investments |
|
4.49% |
|
|
|
2.91% |
|
|
|
2.97% |
|
|
Yield on interest earning deposits |
|
4.41% |
|
|
|
3.39% |
|
|
|
0.21% |
|
|
Yield on earning assets |
|
5.23% |
|
|
|
5.01% |
|
|
|
4.14% |
|
| |
|
|
|
|
|
|
Cost of interest-bearing deposits |
|
1.44% |
|
|
|
0.59% |
|
|
|
0.32% |
|
|
Cost of total deposits |
|
1.08% |
|
|
|
0.42% |
|
|
|
0.24% |
|
|
Cost of borrowings |
|
1.17% |
|
|
|
0.96% |
|
|
|
0.87% |
|
|
Cost of interest-bearing liabilities |
|
1.40% |
|
|
|
0.64% |
|
|
|
0.38% |
|
|
Cost of funds |
|
1.09% |
|
|
|
0.47% |
|
|
|
0.30% |
|
| |
|
|
|
|
|
|
* Capital ratios are preliminary until the Call Report is
filed. |
|
|
|
|
|
| |
|
|
|
|
|
Contact:
Richard Pimentel, EVP &
CFO805.692.4410www.communitywestbank.com
Community West Bancshares (NASDAQ:CWBC)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Community West Bancshares (NASDAQ:CWBC)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
