- Net interest margin was 4.78% in 2Q12, an increase of 6.7%, compared to 4.48% in 1Q12 and up from 4.58% in 2Q11.
- Nonaccrual loans were $32.8 million, or 6.7% of total loans at June 30, 2012, down 14.4% from $38.3 million, or 7.4% of total loans at March 31, 2012.
- Net real estate owned (REO), after subtracting the SBA guarantee, and repossessed assets decreased 58.2% to $2.1 million at June 30, 2012 compared to $4.9 million three months earlier and decreased 70.7% compared to $7.0 million a year earlier.
- The total allowance for loan losses equaled 3.59% of total loans held for investment at June 30, 2012, compared to 3.19% at March 31, 2012 and 3.09% a year ago.
- Community West Bank’s Total risk-based capital ratio was 13.41% and Tier 1 leverage ratio was 9.38% at June 30, 2012, an increase compared to the Bank’s Total risk-based capital ratio of 12.43% and Tier 1 leverage ratio of 8.52% at March 31, 2012. Under the Bank’s regulatory agreement, ratios of 12% and 9%, respectively, are required to be maintained.
Community West Bancshares (Community West or the Company), (NASDAQ: CWBC), parent company of Community West Bank (Bank), today reported a net loss of $591,000 in the second quarter of 2012 (2Q12) compared to net income of $819,000 in the first quarter of 2012 (1Q12) and a net loss of $221,000 in the second quarter a year ago (2Q11). In the first six months of 2012, Community West reported net income of $228,000 compared to net income of $375,000 in the first six months of 2011. This quarter’s loss included a $431,000 prepayment penalty resulting from paying off $17.0 million of borrowings from the Federal Home Loan Bank (FHLB) as part of the planned streamlining of the Company’s balance sheet. “Our second quarter was highlighted by a continued reduction in deposit costs which resulted in an expansion of our net interest margin during the second quarter of 2012 to 4.78%, an increase of 30 basis points compared to the preceding quarter and an increase of 20 basis points compared to the same quarter a year ago,” stated Martin E. Plourd, President and Chief Executive Officer. “Our efforts have been focused on improving our core banking strategy while orderly reducing the balance sheet and diligently working to improve asset quality. This operational plan is aimed at continued stability to the organization by strengthening the balance sheet and returning the Bank to sustainable profitability and we believe we have made meaningful progress in all of these areas during the quarter, with non-performing assets and related credit costs declining compared to the preceding quarter. The majority of the discretionary reductions of the balance sheet were performed in the first six months of 2012.” 2Q12 Financial Highlights