Community West Bancshares (Community West or the Company), (NASDAQ:
CWBC), parent company of Community West Bank (Bank), today reported
net income of $1.2 million, or $0.14 per diluted share, for the
second quarter of 2020 (2Q20), compared to $1.6 million, or $0.19
per diluted share, for the first quarter of 2020 (1Q20), and $1.6
million, or $0.18 per diluted share, for the second quarter of 2019
(2Q19). For the first six months of 2020, Community West
reported net income of $2.8 million, or $0.32 per diluted share,
compared to $3.1 million, or $0.36 per diluted share, for the first
six months of 2019.
COVID-19 Pandemic Update
“Our second quarter earnings were affected by a
number of items, including the impact of the Coronavirus pandemic
on the economy, and the subsequent increase in our loan loss
reserve,” stated Martin E. Plourd, President and Chief Executive
Officer. “Highlighting the quarter was net interest income
growth and increased core deposits. Additionally, we
generated over 500 Small Business Administration (“SBA”) Paycheck
Protection Program (“PPP”) loans to our customers for $75.1 million
during the quarter which had a meaningful impact on loan and
related deposit growth. Gross PPP loan fees are estimated to
be $2.8 million based on current loan forgiveness
expectations. The PPP income will be recorded as loans are
repaid.”
“The effect of the pandemic on our employees,
customers and communities remains our primary concern and we
believe the full economic impact has yet to be realized” Plourd
continued. “Since the start of the pandemic, we have maintained all
branch activity, taking conservative measures to keep our
employees, customers, and communities safe. Currently,
approximately 40% of our employees are working remotely while
keeping our high level of customer service. We are intently
focused on assessing the risks in our loan portfolio and working
with our customers to minimize losses. We have implemented a loan
modification program, in line with regulatory guidance, allowing
impacted customers to defer loan payments.” As of June 30,
2020, requests to defer loan payments totaled approximately $156
million or 18% of the Bank’s total loan portfolio.
The industries most heavily impacted include
retail, healthcare, hospitality, schools and energy. The
Company’s management team has evaluated the loans related to the
affected industries and at June 30, 2020, the Bank’s loans to these
industries were $187.3 million which is 21.9% of our $856.0 million
loan portfolio.
Importantly, of the selected industry loans,
$1.7 million or 0.9% are on non-accrual. Also, of the
selected industries loans the classified loans are $12.1 Million or
6.5%. Lastly, the Bank has accommodated $81.8 million of
these loans with payment deferrals or 43.7% of the selected
industries. Additional detail by industry is included in the
table below.
| |
Sectors Under Focus (Excluding PPP Loans) |
|
| |
As of 6/30/20 (in thousands) |
Ventura/Los Angeles Counties |
Santa Barbara County |
San Luis Obispo County |
Other |
Loans Outstanding (includes $11 million of
guarantees) |
$ Non-accrual |
% Non-accrual |
$ Classified |
% Classified |
$ Deferrals |
% Deferral |
|
|
|
Healthcare |
$ |
9,135 |
$ |
9,695 |
$ |
27,205 |
$ |
2,431 |
$ |
48,466 |
$ |
1,657 |
3.42 |
% |
$ |
2,025 |
4.18 |
% |
$ |
14,232 |
29.36 |
% |
|
| |
Senior/Assted Living Facilities |
$ |
1,695 |
$ |
612 |
$ |
20,779 |
$ |
- |
$ |
23,086 |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
|
| |
Medical Offices |
$ |
5,332 |
$ |
6,609 |
$ |
5,806 |
$ |
1,240 |
$ |
18,987 |
$ |
- |
0.00 |
% |
$ |
290 |
1.53 |
% |
$ |
10,026 |
52.80 |
% |
|
| |
General Healthcare |
$ |
2,108 |
$ |
2,474 |
$ |
620 |
$ |
1,191 |
$ |
6,393 |
$ |
1,657 |
25.92 |
% |
$ |
1,735 |
27.14 |
% |
$ |
4,206 |
65.79 |
% |
|
| |
Hospitality |
$ |
9,011 |
$ |
16,446 |
$ |
27,941 |
$ |
2,209 |
$ |
55,607 |
$ |
3 |
0.01 |
% |
$ |
1,673 |
3.01 |
% |
$ |
40,197 |
72.29 |
% |
|
| |
Lodging |
$ |
3,093 |
$ |
12,497 |
$ |
23,965 |
$ |
1,593 |
$ |
41,148 |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
$ |
33,229 |
80.75 |
% |
|
| |
Restaurants |
$ |
5,918 |
$ |
615 |
$ |
3,976 |
$ |
616 |
$ |
11,125 |
$ |
3 |
0.03 |
% |
$ |
1,673 |
15.04 |
% |
$ |
6,968 |
62.63 |
% |
|
| |
RV-Mobile Home Parks |
$ |
- |
$ |
3,334 |
$ |
- |
$ |
- |
$ |
3,334 |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
|
| |
Retail Commercial Real Estate |
$ |
23,590 |
$ |
16,991 |
$ |
9,980 |
$ |
8,275 |
$ |
58,836 |
$ |
25 |
0.04 |
% |
$ |
8,415 |
14.30 |
% |
$ |
24,405 |
41.48 |
% |
|
| |
Retail Services |
$ |
5,242 |
$ |
5,948 |
$ |
6,072 |
$ |
5,724 |
$ |
22,986 |
$ |
- |
0.00 |
% |
$ |
19 |
0.08 |
% |
$ |
2,844 |
12.37 |
% |
|
| |
Schools |
$ |
- |
$ |
50 |
$ |
1,088 |
$ |
107 |
$ |
1,245 |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
|
| |
Energy |
$ |
149 |
$ |
- |
$ |
- |
$ |
- |
$ |
149 |
$ |
- |
0.00 |
% |
$ |
- |
0.00 |
% |
$ |
149 |
100.00 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2020 Financial
Highlights:
- Net income was $1.2 million, or $0.14 per diluted share, in
2Q20, compared to $1.6 million, or $0.19 per diluted share in 1Q20,
and $1.6 million, or $0.18 per diluted share in 2Q19.
- Net interest income was $8.8 million for the quarter, compared
to $8.5 million for 1Q20, and $8.5 million for 2Q19.
- Provision for loan losses was $762,000 for the quarter,
compared to $392,000 for 1Q20, and $177,000 for 2Q19. The resulting
allowance was 1.34% of total loans held for investment at June 30,
2020 (excluding the $75.1 million of PPP loans which are 100%
guaranteed by the SBA).
- Net interest margin was 3.72% for 2Q20, compared to 3.97% for
1Q20, and 4.07% for 2Q19.
- Total demand deposits increased $96.0 million to $504.0 million
at June 30, 2020, compared to $408.0 million at March 31, 2020, and
increased $47.7 million compared to $456.3 million at June 30,
2019. Total demand deposits represented 67.2% of total
deposits at June 30, 2020.
- Non-interest-bearing demand deposits increased $71.5 million to
$192.8 million at June 30, 2020, compared to $121.3 million at
March 31, 2020 and increased $80.3 million compared to $112.5
million at June 30, 2019.
- Total loans increased $74.0 million during the quarter to
$856.0 million at June 30, 2020, compared to $782.0 million at
March 31, 2020, and increased $67.1 million from $788.9 million at
June 30, 2019.
- Book value per common share increased to $9.93 at June 30,
2020, compared to $9.82 at March 31, 2020, and $9.19 at June 30,
2019.
- Total risked-based capital improved to 11.63% for the Bank at
June 30, 2020, compared to 11.60% at March 31, 2020 and 10.67% at
June 30, 2019.
- Net non-accrual loans of $2.6 million at June 30, 2020 and at
March 31, 2020, compared to $3.0 million at June 30, 2019.
- Other assets acquired through foreclosure, net was $2.7 million
at June 30, 2020 and at March 31, 2020, compared to $1.1 million at
June 30, 2019.
Income Statement
Net interest income was $8.8 million in 2Q20
compared to $8.5 million in 1Q20 and $8.5 million in 2Q19,
primarily due to decreased deposit costs. In the first six
months of 2020, net interest income increased 3.1% to $17.2
million, compared to $16.7 million in the first six months of
2019.
Non-interest income was $640,000 in 2Q20,
compared to $950,000 in 1Q20, and $692,000 in 2Q19. Other
loan fees were $283,000 for 2Q20 a 17% decline compared to $341,000
for 1Q20, and a 5.2% increase compared to 2Q19. Gain on sale
of loans was $97,000 in 2Q20 compared to $190,000 in the preceding
quarter. There were no gains on sales of loans in 2Q19.
Non-interest income increased 22.7% to $1.6 million in the first
six months of 2020 compared to $1.3 million in the first six months
of 2019.
Second quarter net interest margin was 3.72%,
compared to 3.97% in 1Q20, and 4.07% in 2Q19. “The 150-basis
point reduction in interest rates in March 2020 and the resulting
effect on yields on earning assets contributed to the net interest
margin decline during the quarter,” said Susan C. Thompson,
Executive Vice President and Chief Financial Officer. In the
first six months of 2020, the net interest margin was 3.84%,
compared to 4.03% in the prior year period.
“While our asset quality at quarter end remained
solid, we are being proactive in our approach to the COVID-19
pandemic and its impact on the local economy. Consequently,
we booked a $762,000 loan loss provision during the second quarter,
which is higher than the provisions booked over the past few
years,” said Thompson. The provision for loan losses was
$392,000 for 1Q20, and $177,000 for 2Q19. The increase in the
current quarter was primarily the result of management’s
qualitative adjustment to reflect the estimated losses due to the
current economic uncertainties and some growth in the loan
portfolio.
Non-interest expense totaled $7.0 million in
2Q20, compared to $6.7 million in the preceding quarter and $6.8
million in 2Q19. 2Q20 included some additional pandemic
related expenses. In the first six months of 2020,
non-interest expense was $13.7 million, compared to $13.5 million
in the first six months of 2019.
Balance Sheet
Total assets increased $135.6 million, or 14.7%,
to $1.06 billion at June 30, 2020, compared to $925.2 million at
March 31, 2020 and increased $155.3 million, or 17.1%, compared to
$905.6 million at June 30, 2019. Total loans increased $74.0
million, or 9.5%, to $856.0 million at June 30, 2020, compared to
$782.0 million at March 31, 2020, and increased $67.1 million, or
8.5% compared to $788.9 million at June 30, 2019.
Commercial real estate loans outstanding (which
include SBA 504, construction and land) were up modestly from year
ago levels to $392.8 million at June 30, 2020 and comprise 45.9% of
the total loan portfolio. Manufactured housing loans were up
5.6% from year ago levels to $267.3 million and represent 31.2% of
total loans. SBA PPP loans originated during the second
quarter were $75.1 million at June 30, 2020 and represent 8.8% of
total loans. Commercial loans (which include agriculture
loans) were down 12.4% from year ago levels to $95.1 million and
represent 11.1% of the total loan portfolio. The majority of
this decrease was in the commercial agriculture portfolio as the
Company has switched its production focus from on-balance sheet
Federal Service Agency loans with guarantees to off-balance sheet
Farmer Mac loans for which we receive servicing income for the life
of the loan.
Total deposits were $750.2 million at June 30,
2020, compared to $711.6 million at March 31, 2020, and $765.1
million at June 30, 2019. Non-interest-bearing demand
deposits increased $71.5 million, or 59.0%, during the quarter to
$192.8 million at June 30, 2020, compared to $121.3 million at
March 31, 2020, and increased $80.3 million, or 71.4%, compared to
$112.5 million at June 30, 2019. Interest-bearing demand
deposits increased $24.5 million to $311.3 million at June 30,
2020, compared to $286.7 million at March 31, 2020, and decreased
$32.6 million compared to $343.8 million at June 30, 2019.
Certificates of deposit, which include brokered deposits, decreased
$59.3 million during the quarter to $228.2 million at June 30,
2020, compared to $287.6 million at March 31, 2020 and decreased
$64.3 million compared to $292.5 million at June 30, 2019.
The reduction in deposits was due to divesting of some
high-priced municipal funding to lower cost non-deposit funding
sources.
Stockholders’ equity increased to $84.1 million
at June 30, 2020, compared to $83.2 million at March 31, 2020, and
$77.8 million at June 30, 2019. Book value per common share
increased to $9.93 at June 30, 2020, compared to $9.82 at March 31,
2020, and $9.19 at June 30, 2019. In an effort to be
conservative, the Company drew down $10 million on its line of
credit in 1Q20, which can be down streamed to the Bank as
additional capital if needed in the future.
Credit Quality
Management is closely monitoring credit metrics
and performing stress testing on the Bank’s loan portfolio.
In addition, resources have been reallocated to credit
administration to closely analyze higher risk segments within the
portfolio, monitoring and tracking loan payment deferrals and
customer liquidity, and provide timely reporting to management and
the Board of Directors. The management team continues to
analyze economic conditions in its markets. Based on the
Company’s resources, capital levels, current economic climate, and
underwriting policies, management expects to be able to manage the
economic risks and uncertainties associated with the COVID-19
pandemic and remain adequately capitalized.
The Company recorded a provision for loan losses
of $762,000 in 2Q20. This compares to a provision for loan
losses of $392,000 in 1Q20, and $177,000 in 2Q19. The
allowance for loan losses, including the reserve for undisbursed
loans, was $10.1 million, or 1.22% of total loans held for
investment, at June 30, 2020. The allowance for loan losses
was 1.34% of total loans held for investment at June 30, 2020 when
excluding the $75.1 million of PPP loans, which are 100% guaranteed
by the SBA. Net non-accrual loans plus net other assets
acquired through foreclosure were $5.3 million at June 30, 2020,
which was unchanged from March 31, 2020. Net non-accrual
loans plus net other assets acquired through foreclosure were $4.1
million at June 30, 2019.
Net non-accrual loans totaled $2.6 million at
June 30, 2020, which was unchanged from March 31, 2020. Net
non-accrual loans were $3.0 million a year ago. Of the $2.6
million of net non-accrual loans at June 30, 2020, $1.5 million
were commercial loans, $0.9 million were manufactured housing
loans, $0.1 million were SBA loans, and $0.1 million were
commercial real estate loans.
There was $2.7 million in other assets acquired
through foreclosure as of June 30, 2020 and at March 31,
2020. This compares to $1.1 million of other assets acquired
through foreclosure at June 30, 2019. The majority of this
balance relates to one property of $2.5 million.
Cash Dividend Declared
The Company’s Board of Directors declared a cash
dividend of $0.045 per common share, payable August 31, 2020 to
common shareholders of record on August 14, 2020.
Stock Repurchase Program
The Company did not repurchase shares during the
second quarter of 2020, leaving $1.4 million available under the
previously announced repurchase program. The Company has
suspended its repurchase program until further notice.
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 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 |
|
Six Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
| |
|
|
|
|
|
|
|
|
|
|
| Interest
income |
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
10,585 |
|
$ |
10,664 |
|
$ |
10,907 |
|
$ |
21,249 |
|
$ |
21,448 |
|
Investment securities and other |
|
|
192 |
|
|
311 |
|
|
460 |
|
|
503 |
|
|
944 |
|
Total interest income |
|
|
10,777 |
|
|
10,975 |
|
|
11,367 |
|
|
21,752 |
|
|
22,392 |
| |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,500 |
|
|
2,122 |
|
|
2,583 |
|
|
3,622 |
|
|
5,027 |
|
Other borrowings |
|
|
496 |
|
|
390 |
|
|
286 |
|
|
886 |
|
|
644 |
|
Total interest expense |
|
|
1,996 |
|
|
2,512 |
|
|
2,869 |
|
|
4,508 |
|
|
5,671 |
| Net interest
income |
|
|
8,781 |
|
|
8,463 |
|
|
8,498 |
|
|
17,244 |
|
|
16,721 |
| Provision (credit) for loan
losses |
|
|
762 |
|
|
392 |
|
|
177 |
|
|
1,154 |
|
|
120 |
|
Net interest income after provision for loan losses |
|
|
8,019 |
|
|
8,071 |
|
|
8,321 |
|
|
16,090 |
|
|
16,601 |
| Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
Other loan fees |
|
|
283 |
|
|
341 |
|
|
269 |
|
|
624 |
|
|
476 |
|
Gains from loan sales, net |
|
|
97 |
|
|
190 |
|
|
- |
|
|
287 |
|
|
- |
|
Document processing fees |
|
|
108 |
|
|
124 |
|
|
124 |
|
|
232 |
|
|
211 |
|
Service charges |
|
|
62 |
|
|
134 |
|
|
139 |
|
|
196 |
|
|
278 |
|
Other |
|
|
90 |
|
|
161 |
|
|
160 |
|
|
251 |
|
|
331 |
|
Total non-interest income |
|
|
640 |
|
|
950 |
|
|
692 |
|
|
1,590 |
|
|
1,296 |
| Non-interest
expenses |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
4,574 |
|
|
4,398 |
|
|
4,318 |
|
|
8,972 |
|
|
8,699 |
|
Occupancy, net |
|
|
776 |
|
|
758 |
|
|
768 |
|
|
1,534 |
|
|
1,550 |
|
Professional services |
|
|
559 |
|
|
383 |
|
|
405 |
|
|
942 |
|
|
786 |
|
Data processing |
|
|
260 |
|
|
283 |
|
|
201 |
|
|
543 |
|
|
425 |
|
Depreciation |
|
|
206 |
|
|
208 |
|
|
218 |
|
|
414 |
|
|
431 |
|
FDIC assessment |
|
|
133 |
|
|
144 |
|
|
154 |
|
|
277 |
|
|
324 |
|
Advertising and marketing |
|
|
265 |
|
|
153 |
|
|
230 |
|
|
418 |
|
|
359 |
|
Stock-based compensation |
|
|
95 |
|
|
85 |
|
|
97 |
|
|
180 |
|
|
192 |
|
Other |
|
|
135 |
|
|
317 |
|
|
369 |
|
|
452 |
|
|
711 |
|
Total non-interest expenses |
|
|
7,003 |
|
|
6,729 |
|
|
6,760 |
|
|
13,732 |
|
|
13,477 |
| Income before provision for
income taxes |
|
|
1,656 |
|
|
2,292 |
|
|
2,253 |
|
|
3,948 |
|
|
4,420 |
| Provision for income
taxes |
|
|
496 |
|
|
694 |
|
|
673 |
|
|
1,190 |
|
|
1,330 |
| Net
income |
|
$ |
1,160 |
|
$ |
1,598 |
|
$ |
1,580 |
|
$ |
2,758 |
|
$ |
3,090 |
| Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.14 |
|
$ |
0.19 |
|
$ |
0.19 |
|
$ |
0.33 |
|
$ |
0.37 |
|
Diluted |
|
$ |
0.14 |
|
$ |
0.19 |
|
$ |
0.18 |
|
$ |
0.32 |
|
$ |
0.36 |
| COMMUNITY WEST
BANCSHARES |
|
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
|
| (in 000's, except per share
data) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
|
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
4,679 |
|
|
$ |
3,002 |
|
|
$ |
2,539 |
|
|
$ |
2,038 |
|
| Interest-earning deposits in
other financial institutions |
|
|
142,823 |
|
|
|
86,663 |
|
|
|
80,122 |
|
|
|
55,143 |
|
| Investment securities |
|
|
24,221 |
|
|
|
23,909 |
|
|
|
25,563 |
|
|
|
30,414 |
|
| Loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
|
95,114 |
|
|
|
98,365 |
|
|
|
101,485 |
|
|
|
108,599 |
|
|
Commercial real estate |
|
|
392,789 |
|
|
|
391,207 |
|
|
|
385,642 |
|
|
|
391,293 |
|
|
SBA |
|
|
13,013 |
|
|
|
13,330 |
|
|
|
14,777 |
|
|
|
17,560 |
|
|
Paycheck Protection Program (PPP) |
|
|
75,149 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Manufactured housing |
|
|
267,343 |
|
|
|
263,484 |
|
|
|
257,247 |
|
|
|
253,250 |
|
|
Single family real estate |
|
|
11,078 |
|
|
|
11,191 |
|
|
|
11,668 |
|
|
|
11,351 |
|
|
HELOC |
|
|
3,918 |
|
|
|
4,196 |
|
|
|
4,531 |
|
|
|
6,696 |
|
|
Other (1) |
|
|
(2,375 |
) |
|
|
223 |
|
|
|
213 |
|
|
|
159 |
|
| Total loans |
|
|
856,029 |
|
|
|
781,996 |
|
|
|
775,563 |
|
|
|
788,908 |
|
| |
|
|
|
|
|
|
|
|
| Loans, net |
|
|
|
|
|
|
|
|
|
Held for sale |
|
|
35,090 |
|
|
|
39,458 |
|
|
|
42,046 |
|
|
|
45,447 |
|
|
Held for investment |
|
|
820,939 |
|
|
|
742,538 |
|
|
|
733,517 |
|
|
|
743,461 |
|
|
Less: Allowance for loan losses |
|
|
(10,008 |
) |
|
|
(9,167 |
) |
|
|
(8,717 |
) |
|
|
(8,887 |
) |
|
Net held for investment |
|
|
810,931 |
|
|
|
733,371 |
|
|
|
724,800 |
|
|
|
734,574 |
|
|
NET LOANS |
|
|
846,021 |
|
|
|
772,829 |
|
|
|
766,846 |
|
|
|
780,021 |
|
| |
|
|
|
|
|
|
|
|
| Other assets |
|
|
43,103 |
|
|
|
38,805 |
|
|
|
38,800 |
|
|
|
37,951 |
|
| |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,060,847 |
|
|
$ |
925,208 |
|
|
$ |
913,870 |
|
|
$ |
905,567 |
|
| |
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
$ |
192,806 |
|
|
$ |
121,293 |
|
|
|
110,843 |
|
|
$ |
112,463 |
|
|
Interest-bearing demand |
|
|
311,266 |
|
|
|
286,736 |
|
|
|
314,278 |
|
|
|
343,841 |
|
|
Savings |
|
|
17,862 |
|
|
|
16,016 |
|
|
|
15,689 |
|
|
|
16,264 |
|
|
Certificates of deposit ($250,000 or more) |
|
|
86,046 |
|
|
|
93,615 |
|
|
|
96,431 |
|
|
|
90,170 |
|
|
Other certificates of deposit |
|
|
142,178 |
|
|
|
193,939 |
|
|
|
213,693 |
|
|
|
202,373 |
|
| Total deposits |
|
|
750,158 |
|
|
|
711,599 |
|
|
|
750,934 |
|
|
|
765,111 |
|
| Other borrowings |
|
|
210,103 |
|
|
|
115,000 |
|
|
|
65,000 |
|
|
|
46,000 |
|
| Other liabilities |
|
|
16,493 |
|
|
|
15,448 |
|
|
|
15,958 |
|
|
|
16,627 |
|
|
TOTAL LIABILITIES |
|
|
976,754 |
|
|
|
842,047 |
|
|
|
831892 |
|
|
|
827,738 |
|
| |
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
84,093 |
|
|
|
83,161 |
|
|
|
81,978 |
|
|
|
77,829 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
1,060,847 |
|
|
$ |
925,208 |
|
|
$ |
913,870 |
|
|
$ |
905,567 |
|
| |
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
|
8,472 |
|
|
|
8,472 |
|
|
|
8,472 |
|
|
|
8,465 |
|
| |
|
|
|
|
|
|
|
|
| Book value per common
share |
|
$ |
9.93 |
|
|
$ |
9.82 |
|
|
$ |
9.68 |
|
|
$ |
9.19 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (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 |
|
Six Months Ended |
|
Six Months Ended |
|
| PERFORMANCE MEASURES
AND RATIOS |
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
Return on average common equity |
|
5.57 |
% |
|
|
7.76 |
% |
|
|
8.18 |
% |
|
|
6.66 |
% |
|
|
8.09 |
% |
|
| Return on average assets |
|
0.48 |
% |
|
|
0.73 |
% |
|
|
0.73 |
% |
|
|
0.59 |
% |
|
|
0.72 |
% |
|
| Efficiency ratio |
|
74.33 |
% |
|
|
71.49 |
% |
|
|
73.56 |
% |
|
|
72.91 |
% |
|
|
74.80 |
% |
|
| Net interest margin |
|
3.72 |
% |
|
|
3.97 |
% |
|
|
4.07 |
% |
|
|
3.84 |
% |
|
|
4.03 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
Six Months Ended |
|
| AVERAGE
BALANCES |
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
| Average assets |
$ |
978,250 |
|
|
$ |
886,418 |
|
|
$ |
864,583 |
|
|
$ |
932,334 |
|
|
$ |
862,146 |
|
|
| Average earning assets |
|
949,149 |
|
|
|
858,064 |
|
|
|
838,104 |
|
|
|
903,661 |
|
|
|
836,533 |
|
|
| Average total loans |
|
839,625 |
|
|
|
787,537 |
|
|
|
777,828 |
|
|
|
813,581 |
|
|
|
773,067 |
|
|
| Average deposits |
|
745,644 |
|
|
|
718,205 |
|
|
|
726,366 |
|
|
|
731,925 |
|
|
|
721,685 |
|
|
| Average common equity |
|
83,757 |
|
|
|
82,815 |
|
|
|
77,432 |
|
|
|
83,286 |
|
|
|
77,059 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| EQUITY
ANALYSIS |
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
|
|
|
|
| Total common equity |
$ |
84,093 |
|
|
$ |
83,161 |
|
|
$ |
77,829 |
|
|
|
|
|
|
| Common stock outstanding |
|
8,472 |
|
|
|
8,472 |
|
|
|
8,465 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
9.93 |
|
|
$ |
9.82 |
|
|
$ |
9.19 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| ASSET
QUALITY |
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
|
|
|
|
| Nonaccrual loans, net |
$ |
2,640 |
|
|
$ |
2,644 |
|
|
$ |
3,016 |
|
|
|
|
|
|
| Nonaccrual loans, net/total
loans |
|
0.31 |
% |
|
|
0.34 |
% |
|
|
0.38 |
% |
|
|
|
|
|
| Other assets acquired through
foreclosure, net |
$ |
2,707 |
|
|
$ |
2,707 |
|
|
$ |
1,074 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Nonaccrual loans plus other
assets acquired through foreclosure, net |
$ |
5,347 |
|
|
$ |
5,351 |
|
|
$ |
4,090 |
|
|
|
|
|
|
| Nonaccrual loans plus other
assets acquired through foreclosure, net/total assets |
|
0.50 |
% |
|
|
0.58 |
% |
|
|
0.45 |
% |
|
|
|
|
|
| Net loan
(recoveries)/charge-offs in the quarter |
$ |
(79 |
) |
|
$ |
(58 |
) |
|
$ |
(62 |
) |
|
|
|
|
|
| Net (recoveries)/charge-offs
in the quarter/total loans |
|
(0.01 |
%) |
|
|
(0.01 |
%) |
|
|
(0.01 |
%) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
$ |
10,008 |
|
|
$ |
9,167 |
|
|
$ |
8,887 |
|
|
|
|
|
|
| Plus: Reserve for undisbursed
loan commitments |
|
91 |
|
|
|
76 |
|
|
|
81 |
|
|
|
|
|
|
| Total allowance for credit
losses |
$ |
10,099 |
|
|
$ |
9,243 |
|
|
$ |
8,968 |
|
|
|
|
|
|
| Allowance for loan
losses/total loans held for investment |
|
1.22 |
% |
|
|
1.23 |
% |
|
|
1.20 |
% |
|
|
|
|
|
| Allowance for loan
losses/total loans held for investment excluding PPP loans |
|
1.34 |
% |
|
|
1.23 |
% |
|
|
1.20 |
% |
|
|
|
|
|
| Allowance for loan
losses/nonaccrual loans, net |
|
379.09 |
% |
|
|
346.71 |
% |
|
|
294.66 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Community West Bank
* |
|
|
|
|
|
|
|
|
|
|
| Community bank leverage
ratio |
|
8.94 |
% |
|
|
9.21 |
% |
|
N/A |
|
|
|
|
|
|
| Tier 1 leverage ratio |
|
8.94 |
% |
|
|
9.21 |
% |
|
|
8.66 |
% |
|
|
|
|
|
| Tier 1 capital ratio |
|
10.38 |
% |
|
|
10.42 |
% |
|
|
9.53 |
% |
|
|
|
|
|
| Total capital ratio |
|
11.63 |
% |
|
|
11.60 |
% |
|
|
10.67 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| INTEREST SPREAD
ANALYSIS |
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
|
|
|
|
| Yield on total loans |
|
5.07 |
% |
|
|
5.45 |
% |
|
|
5.62 |
% |
|
|
|
|
|
| Yield on investments |
|
1.88 |
% |
|
|
2.56 |
% |
|
|
3.89 |
% |
|
|
|
|
|
| Yield on interest earning
deposits |
|
0.29 |
% |
|
|
1.22 |
% |
|
|
1.89 |
% |
|
|
|
|
|
| Yield on earning assets |
|
4.57 |
% |
|
|
5.14 |
% |
|
|
5.44 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Cost of interest-bearing
deposits |
|
1.06 |
% |
|
|
1.42 |
% |
|
|
1.70 |
% |
|
|
|
|
|
| Cost of total deposits |
|
0.81 |
% |
|
|
1.19 |
% |
|
|
1.43 |
% |
|
|
|
|
|
| Cost of borrowings |
|
1.50 |
% |
|
|
2.29 |
% |
|
|
2.64 |
% |
|
|
|
|
|
| Cost of interest-bearing
liabilities |
|
1.14 |
% |
|
|
1.51 |
% |
|
|
1.76 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| * Capital ratios are
preliminary until the Call Report is filed. |
|
|
|
|
|
|
|
|
|
|
Contact: Susan C. Thompson, EVP &
CFO805.692.5821www.communitywestbank.com
Community West Bancshares (NASDAQ:CWBC)
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