GOLETA, Calif., April 24, 2014 (GLOBE NEWSWIRE) -- Community West Bancshares (Community West or the Company), (Nasdaq:CWBC), parent company of Community West Bank (Bank), today reported net income increased 32.4% to $1.4 million in the first quarter of 2014 (1Q14) compared to $1.1 million in the first quarter a year ago (1Q13). Community West's net income in the fourth quarter of 2013 (4Q13) was $3.1 million, which included a $2.8 million tax benefit as a result of the reversal of its deferred tax asset valuation allowance.
"Our first quarter profits were fueled by ongoing improvement in credit quality and solid loan growth, as we continue to focus on expanding our banking franchise in the coastal communities of central California," stated Martin E. Plourd, President and Chief Executive Officer. "The loan portfolio increased 7% compared to a year ago. We continue to strengthen our capital and improve credit quality metrics, while maintaining a strong net interest margin. We will continue to increase and refine our marketing outreach in the communities we serve while focusing on increasing shareholder value."
1Q14 Financial Highlights
- Net income increased 32.4% to $1.4 million from a year ago.
- Earnings increased 36.4% to $0.15 per diluted share from $0.11 per diluted share a year ago.
- Net interest margin improved 25 basis points to 4.65% in 1Q14, compared to 4.40% in 4Q13. The net interest margin was 4.57% in 1Q13.
- Net loans increased 6.9% to $473.1 million, compared to $442.4 million a year earlier.
- Nonaccrual loans were $15.7 million at March 31, 2014, compared to $16.8 million at December 31, 2013 and $19.7 million at March 31, 2013.
- The total allowance for loan losses equaled 2.71% of total loans held for investment at March 31, 2014, compared to 2.98% at December 31, 2013 and 3.54% a year ago.
- Community West Bank's capital ratios continue to be strong - Total risk-based capital ratio was 16.52% and Tier 1 leverage ratio was 12.36% at March 31, 2014.