GOLETA, Calif., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Community West Bancshares (Community West or the Company), (Nasdaq:CWBC), parent company of Community West Bank (Bank), today reported net income increased to $2.6 million in the third quarter of 2013 (3Q13) compared to $2.1 million in the second quarter of 2013 (2Q13) and $613,000 in the third quarter a year ago (3Q12). In the first nine months of the year, Community West earned $5.9 million compared to $841,000 in the first nine months of 2012.
"Our third quarter results marked our fifth consecutive quarter of profitability, and showed meaningful progress with credit quality improvements, and continued net interest margin expansion," stated Martin E. Plourd, President and Chief Executive Officer. "Nonaccrual loans were down 26% compared to three months earlier, and our capital ratios continue to strengthen. As we look forward, we continue to focus on growing lending, strengthening operations and increasing our marketing outreach in the communities we serve."
3Q13 Financial Highlights
- Net income of $2.6 million.
- Earnings of $0.29 per diluted share.
- Net interest margin expanded to 4.89% in 3Q13, an eight basis point improvement compared to 4.81% in 2Q13 and a 24 basis point improvement compared to 4.65% in 3Q12.
- Nonaccrual loans declined 26.1% to $15.3 million at September 30, 2013, compared to $20.7 million at June 30, 2013 and decreased 54.2% compared to $33.3 million at September 30, 2012.
- Net real estate owned (REO) and repossessed assets, excluding USDA/SBA guarantees, totaled $1.7 million at September 30, 2013, compared to $1.5 million three months earlier and $3.8 million a year earlier.
- The total allowance for loan losses equaled 3.01% of total loans held for investment at September 30, 2013, compared to 3.14% at June 30, 2013 and 3.65% a year ago.
- Community West Bank's capital ratios continue to strengthen - Total risk-based capital ratio was 17.16% and Tier 1 leverage ratio was 12.06% at September 30, 2013. Both ratios are well above the minimum levels of 12% and 9%, respectively, called for in the Bank's regulatory agreement.