GOLETA, Calif., Oct. 21, 2010 (GLOBE NEWSWIRE) -- Community West Bancshares ("Community West"), (Nasdaq:CWBC), parent company of Community West Bank, today reported net income of $1.0 million in the third quarter of 2010 (3Q10), compared to net income of $69,000 in the third quarter a year ago (3Q09). The loan loss provision in 3Q10 was $1.5 million compared to $2.6 million in 3Q09. For the first nine months of the year, Community West reported net income of $1.0 million, compared to a net loss of $5.9 million for the first nine months of 2009. The loan loss provision for the first nine months of the year was $7.5 million compared to $15.9 million for the first nine months of 2009.
"We generated a solid quarterly profit primarily due to an improved net interest margin and a strong core business model," stated Lynda J. Nahra, President and Chief Executive Officer. "We have made steady progress in strengthening Community West with improved operating efficiencies and strong core deposit growth. These results were generated in spite of the current economic uncertainties."
Third Quarter 2010 Highlights
- Completed a successful public convertible debenture offering of $8.09 million.
- Net income to common stockholders was $784,000, or $0.12 per diluted common share.
- Community West Bank continues to exceed well capitalized levels with a Total risk-based capital ratio of 12.65%, Tier 1 risk-based capital ratio of 11.38% and Tier 1 leverage ratio of 9.09%.
- Net interest margin was 4.49%, a 37 basis point improvement compared to 3Q09.
- Core deposits increased by 41.0% compared to a year ago.
- Nonperforming loans were $15.1 million, or 2.51% of total loans.
- The efficiency ratio was 60.4%, a 7.8% improvement compared to 3Q09.