Community West Bancshares Announces Second Quarter Results, Reports Stabilized Loan Quality
GOLETA, Calif., July 20, 2010 (GLOBE NEWSWIRE) -- Community West Bancshares ("Community West") (Nasdaq:CWBC), parent company of Community West Bank, today reported a net loss of $62,000 in the second quarter of 2010 (2Q10), compared to net income of $800,000 in the second quarter of 2009 (2Q09). The loan loss provision in 2Q10 was $2.9 million compared to $743,000 in 2Q09. For the first half of the year, Community West reported a net loss of $11,000, compared to a net loss of $5.9 million for the fist half of 2009. The loan loss provision for the first half of the year was $5.9 million compared to $13.3 million for the first half of 2009.
"Our operating performance in the second quarter produced solid results," stated Lynda J. Nahra, President and Chief Executive Officer. "We have seen improvements across all areas of the Bank during the quarter and continue to benefit from a healthy net interest margin and improved credit quality metrics. The ongoing margin improvement, along with controlled operating costs, continued to enhance our operating results. Although the higher than normal loan loss provision hampered our profitability, non-performing loans declined during the quarter and remain at a manageable level."
Second Quarter 2010 Highlights
- Announced $8.0 million offering for 9% convertible subordinated debentures.
- Community West continues to exceed the well capitalized levels with a Total risk-based capital ratio of 12.30%, Tier 1 risk-based capital ratio of 11.03% and Tier 1 leverage ratio of 8.84%.
- Net interest margin was 4.47%, a 69 basis point improvement compared to 2Q09.
- Total deposits increased by 10.8% compared to a year ago with core deposits up 70.0%.
- Nonperforming loans decreased $2.4 million compared to the preceding quarter to $15.3 million, or 2.53% of total loans.
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