Press Release

Community West Bancshares Earnings Increase 206% to $3.6 Million, or $0.41 Per Diluted Share, in 2Q21 Compared to 2Q20; Declares Quarterly Cash Dividend of $0.07 Per Common Share

Company Release - 8/2/2021 9:00 AM ET

GOLETA, Calif., Aug. 02, 2021 (GLOBE NEWSWIRE) -- Community West Bancshares (Community West or the Company), (NASDAQ: CWBC), parent company of Community West Bank (the “Bank”), today reported net income increased 17.5% to $3.6 million, or $0.41 per diluted share, for the second quarter of 2021 (2Q21), compared to $3.0 million, or $0.35 per diluted share, for the first quarter of 2021 (1Q21), and increased 206.1% compared to $1.2 million, or $0.14 per diluted share, for the second quarter of 2020 (2Q20). For the first six months of 2021, the Company reported net income of $6.6 million, or $0.76 per diluted share, an increase of 138.3% compared to $2.8 million, or $0.32 per diluted share, for the first six months of 2020.

“We reported strong second quarter and year-to-date earnings, with focused revenue generation and balance sheet management, which resulted in net interest margin expansion,” stated Martin E. Plourd, President and Chief Executive Officer. “We are extremely proud of our entire team, who have stepped up to meet the challenges of the last 15 months. Overall, these factors contributed to an annualized return on average assets of 1.37% and an annualized return on average equity of 15.18% for the current quarter. Our focus for the second half of the year remains on deploying excess liquidity through increased lending activity, while maintaining our strong net interest margin and managing asset quality. As the vaccine rollout continues, and COVID-19 restrictions continue to lift in the markets which we serve, we remain optimistic for growth during the second half of 2021.”

Second Quarter 2021 Financial Highlights:

  • Net income was $3.6 million, or $0.41 per diluted share in 2Q21, compared to $3.0 million, or $0.35 per diluted share in 1Q21, and $1.2 million, or $0.14 per diluted share in 2Q20.
  • Net interest income increased to $10.7 million for 2Q21, compared to $10.0 million for 1Q21 and $8.8 million in 2Q20.
  • A provision credit for loan losses of $41,000 was booked for 2Q21, compared to a provision credit for loan losses of $173,000 for 1Q21, and a provision for loan losses of $762,000 for 2Q20. The resulting allowance was 1.18% of total loans held for investment at June 30, 2021, and 1.29% of total loans held for investment, excluding the $71.1 million of Paycheck Protection Program (“PPP”) loans at June 30, 2021, which are 100% guaranteed by the Small Business Administration (“SBA”).*
  • Net interest margin improved to 4.24% for 2Q21, compared to 4.19% for 1Q21, and 3.72% for 2Q20.
  • Total demand deposits increased $14.8 million to $651.9 million at June 30, 2021, compared to $637.1 million at March 31, 2021, and increased $147.9 million compared to $504.1 million at June 30, 2020.
  • Total loans increased $5.4 million to $893.3 million at June 30, 2021, compared to $887.8 million at March 31, 2021, and increased $37.2 million compared to $856.0 million at June 30, 2020.
  • Book value per common share increased to $11.11 at June 30, 2021, compared to $10.77 at March 31, 2021, and $9.93 at June 30, 2020.
  • The Bank’s community bank leverage ratio (CBLR) was 8.94% at June 30, 2021, compared to 8.97% at March 31, 2021, and 8.94% at June 30, 2020.
  • Net non-accrual loans were $1.8 million at June 30, 2021 and March 31, 2021, respectively, and $2.6 million at June 30, 2020.
  • Other assets acquired through foreclosure, net, was $2.6 million at June 30, 2021 and March 31, 2021, respectively, and $2.7 million at June 30, 2020.

*Non GAAP

COVID-19 Pandemic and PPP loan Update

“Contributing to our success in the first half of 2021, and previously in 2020, was our participation in the SBA’s PPP program,” said Plourd. “As of June 30, 2021, we had 450 PPP loans totaling $71.1 million remaining on our balance sheet from both the first and second rounds of funding. During the second quarter of 2021, $21.8 million of the PPP loans were forgiven by the SBA. We recognized $0.9 million of income in net fees related to PPP loans during 2Q21, compared to $0.8 million of income in net fees during 1Q21, and have $2.1 million remaining in net unrecognized fees related to PPP loans that will be recognized as income through amortization or once the loans are paid off or forgiven by the SBA. As these loans are forgiven, we will use the liquidity to pursue new lending opportunities as well as focus on further reduction in funding costs.”

“During the first and second quarters of 2021 we generated 433 second round PPP loans totaling $50 million to our clients. We remained focused on delivering an exceptional client experience throughout the PPP process, and this approach, along with our client’s referrals to others, helped bring new clients into the Bank,” said Plourd.

“We remain focused on assessing the risks in our loan portfolio and working with our clients who are experiencing financial hardship,” said William F. Filippin, Chief Credit and Chief Administrative Officer. At our peak in July 2020, the Company had 269 loans on payment deferral for a total of $158.5 million. As of June 30, 2021, one loan remained on deferral for a total of $610,000.

The Company continues to closely monitor high-risk industry loans. The industries most heavily impacted include retail, healthcare, hospitality, schools and energy. The Company continues to evaluate loans related to affected industries, and at June 30, 2021, the Bank’s loans to these industries were $166 million, which is 18.6% of its $893.3 million loan portfolio.

Of the selected industry loans, $1.4 million, or 0.84%, are on non-accrual. Also, of the selected industry loans, the classified loans are $15.2 million, or 9.18%. Additional detail by industry at June 30, 2021 is included in the table below.

Sectors Under Focus (Excluding PPP Loans)
As of 6/30/21
(in thousands)
  Loans
Outstanding
  $ Non-accrual %
Non-accrual
  $ Classified %
Classified
  $ Deferrals %
Deferral
Healthcare $ 51,031 $ 0 0.00 % $ 2,164 4.24 % $ - 0.00 %
Senior/Assted Living Facilities   23,470 $ 0 0.00 %   - 0.00 % $ - 0.00 %
Medical Offices   18,779 $ 0 0.00 %   264 1.41 % $ - 0.00 %
General Healthcare   8,782 $ 0 0.00 %   1,900 21.64 % $ - 0.00 %
Hospitality   49,903 $ 1,388 2.78 %   5,103 10.23 % $ - 0.00 %
Lodging   39,759 $ 1,386 3.49 %   2,491 6.27 % $ - 0.00 %
Restaurants   10,144 $ 2 0.02 %   2,612 25.75 % $ - 0.00 %
Retail Commercial Real Estate   50,072 $ 0 0.00 %   7,865 15.71 % $ 610 1.22 %
Retail Services   13,151 $ 0 0.00 %   17 0.13 % $ - 0.00 %
Schools   1,149 $ 0 0.00 %   - 0.00 % $ - 0.00 %
Energy   742 $ 0 0.00 %   93 12.53 % $ - 0.00 %
Total $ 166,048 $ 1,388 0.84 % $ 15,242 9.18 % $ 610 0.37 %

Income Statement

Net interest income improved to $10.7 million in 2Q21, compared to $10.0 million in 1Q21, and $8.8 million in 2Q20. In the first six months of 2021, net interest income increased 20.2% to $20.7 million, compared to $17.2 million in the first six months of 2020.

“Due to the change in loan mix in the second quarter and positive migration out of “Watch” or worse loan risk rating categories in the loan portfolio, as well as $48,000 of net loan recoveries, we recorded a provision credit for loan losses of $41,000 during 2Q21. This compares to a provision credit for loan losses of $173,000 in 1Q21 and a provision for loan losses of $762,000 in 2Q20. We feel that we are well positioned as we navigate through the recovery from the residual effects of the pandemic, with loan loss reserves, excluding PPP loans, of 1.29% at June 30, 2021,” said Susan C. Thompson, Chief Financial Officer.

Non-interest income totaled $872,000 in 2Q21, compared to $897,000 in 1Q21, and $640,000 in 2Q20. Other loan fees were $310,000 for 2Q21, compared to $313,000 in 1Q21, and $283,000 in 2Q20. Gain on sale of loans was $130,000 in 2Q21, compared to $118,000 in 1Q21, and $97,000 in 2Q20. Service charge fee income for 2Q21 was $74,000, compared to $67,000 in 1Q21 and $62,000 in 2Q20. Non-interest income increased 11.3% to $1.8 million in the first six months of 2021, compared to $1.6 million in the first six months of 2020.

Net interest margin was 4.24% for 2Q21, a 5-basis point improvement compared to 1Q21, and a 52-basis point improvement compared to 2Q20. “PPP loan payoffs, and our continued focus on reducing our cost of funds rate contributed to the net interest margin expansion during the second quarter,” said Thompson. The cost of funds for 2Q21 also improved 5-basis points to 0.41%, compared to 0.46% for 1Q21, and improved by 50 basis points compared to 0.91% for 2Q20. PPP loans included fees accounting for 10 basis points of 2Q21 net interest margin, and 9 basis points of 1Q21 net interest margin. In the first six months of 2021, the net interest margin improved 38 basis points to 4.22%, compared to the first six months of 2020. “We will continue to look for opportunities for further reduction in our cost of funds,” said Thompson.

Non-interest expense totaled $6.7 million in 2Q21, compared to $6.9 million in 1Q21, and $7.0 million in 2Q20. The Company’s efficiency ratio was 57.70% for the second quarter of 2021, compared to 62.71% for the first quarter of 2021 and 74.33% for the second quarter of 2020. In the first six months of 2021, non-interest expense was $13.5 million, compared to $13.7 million in the first six months of 2020. The Company has continued to focus on expense control and gaining efficiencies through use of technology and process improvement.

Balance Sheet

Total assets increased $45.0 million, or 4.4%, to $1.06 billion at June 30, 2021, compared to $1.02 billion at March 31, 2021, and remained unchanged compared to June 30, 2020. Total loans increased $5.4 million, to $893.3 million at June 30, 2021, compared to $887.8 million at March 31, 2021, and increased $37.2 million, or 4.4%, compared to $856.0 million at June 30, 2020.

“Loan growth was solid during the quarter, primarily from growth in commercial real estate and manufactured housing loan portfolios which outweighed the $21.8 million decline in PPP loan balances due to loan forgiveness,” said Thompson. Commercial real estate loans outstanding (which include SBA 504, construction and land) were up 13.1% from year ago levels to $444.1 million at June 30, 2021, and comprise 49.7% of the total loan portfolio. Manufactured housing loans were up 7.2% from year ago levels to $286.6 million, and represent 32.1% of total loans. PPP loans were $71.1 million at June 30, 2021, and represent 8.0% of total loans down from $94.5 million at March 31, 2021 and $75.1 million at June 30, 2020. Commercial loans (which include agriculture loans) were down 27.9% from year ago levels to $68.5 million, and represent 7.7% of the total loan portfolio. The majority of this decrease was in the agriculture loan portfolio as the Bank continues to focus on off-balance sheet Farmer Mac lending.

Total deposits increased $60.1 million, or 7.5%, to $864.6 million at June 30, 2021, compared to $804.5 million at March 31, 2021, and increased $114.4 million, or 15.3% compared to $750.2 million at June 30, 2020. Non-interest-bearing demand deposits were $202.3 million at June 30, 2021, a $5.7 million increase compared to $196.6 million at March 31, 2021, and a $9.5 million increase compared to $192.8 million at June 30, 2020. Interest-bearing demand deposits increased $9.1 million to $449.6 million at June 30, 2021, compared to $440.5 million at March 31, 2021, and increased $138.4 million compared to $311.3 million at June 30, 2020. “Demand deposit balances remained at record levels, with a second round of PPP lending, federal stimulus payments and new relationships established from our business development efforts,” said Thompson.

Certificates of deposit (CDs), which include brokered deposits, increased $45.4 million during the quarter to $192.9 million at June 30, 2021, compared to $147.5 million at March 31, 2021, and decreased $35.3 million compared to $228.2 million at June 30, 2020. The increase in CDs compared to the prior quarter-end was due to $50.8 million of new low cost broker deposits strategically structured to lengthen the Bank’s liabilities to match fund longer term fixed rate assets and protect the margin against potential future rising rates. The decrease in CD’s at June 30, 2021 compared to a year ago was due to divesting some high-priced municipal and brokered deposits to lower cost, core funding.

Stockholders’ equity increased to $95.5 million at June 30, 2021, compared to $91.8 million at March 31, 2021, and $84.1 million at June 30, 2020. Book value per common share increased to $11.11 at June 30, 2021, compared to $10.77 at March 31, 2021, and $9.93 at June 30, 2020. The increase in capital will be utilized to support balance sheet growth and support dividend payments.

Credit Quality

“While all asset quality metrics improved or remained unchanged during the quarter, we continue to monitor our loan portfolio and asset quality metrics very closely,” added Plourd. “Our discipline of managing loans as soon as a problem is indicated has helped to keep us from incurring a loss. This strategy is testament to our loan grading system, and is reflective in our historic low loss ratio.”

At June 30, 2021, asset quality reflected improvement due to positive loan risk rating migrations during the second quarter. Total classified loans increased year-over-year due to proactive risk rating of loans showing signs of financial stress during the pandemic, while net non-accrual loans decreased year over year. Although criticized and classified loans increased during the year, the increase was not systemic or indicative of broader risk within the portfolio. All loans rated “Watch” or worse are monitored monthly and proactive measures are taken when any signs of deterioration to the credit are discovered.

Due to positive loan risk rating migrations and $48,000 of net loan recoveries, the Company recorded a provision credit for loan losses of $41,000 in 2Q21. This compared to a provision credit for loan losses of $173,000 in 1Q21, and a provision for loan losses of $762,000 in 2Q20. The allowance for credit losses, including the reserve for undisbursed loans, was $10.3 million, or 1.18% of total loans held for investment, at June 30, 2021, and 1.29% of total loans held for investment excluding PPP loans. Net non-accrual loans, plus net other assets acquired through foreclosure, was $4.4 million at June 30, 2021 and March 31, 2021, respectively, and decreased 18.3% compared to $5.3 million at June 30, 2020.

There was $1.8 million in net non-accrual loans as of June 30, 2021 and March 31, 2021, respectively compared to $2.6 million at June 30, 2020. Of the $1.8 million of net non-accrual loans at June 30, 2021, $1.4 million were SBA 504 loans, $0.1 million were manufactured housing loans and $0.3 million were single family real estate loans.

There was $2.6 million in other assets acquired through foreclosure as of June 30, 2021 and March 31, 2021, respectively, and $2.7 million at June 30, 2020. The majority of this balance relates to one property in the amount of $2.3 million.

Cash Dividend Declared

The Company’s Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable August 31, 2021 to common shareholders of record on August 12, 2021.

Stock Repurchase Program

The Company has authorized $4.5 million under the repurchase program and has $1.4 million remaining for repurchases.
The Company did not repurchase stock during the first six months of 2021.

Company Overview

Community West Bancshares is a financial services company with headquarters in Goleta, California. The Company is the holding company for Community West Bank, the largest publicly traded community bank serving California’s Central Coast area of Ventura, Santa Barbara and San Luis Obispo counties. Community West Bank has seven full-service California branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard and Paso Robles. The principal business activities of the Company are Relationship Banking, Manufactured Housing lending and Government Guaranteed lending.

Industry Accolades

In April 2021, Community West Bank was awarded a “Super Premier Performance” rating by The Findley Reports. For 52 years, The Findley Reports has been recognizing the financial performance of banking institutions in California and the Western United States. In making their selections, The Findley Reports focuses on these four ratios: growth, return on beginning equity, net operating income as a percentage of average assets, and loan losses as a percentage of gross loans. We are also rated 5 star Superior by Bauer Financial.

Safe Harbor Disclosure

This release contains forward-looking statements that reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategy and expand its lending operations.

 

COMMUNITY WEST BANCSHARES                    
CONDENSED CONSOLIDATED INCOME STATEMENTS                    
(unaudited)                    
(in 000’s, except per share data)                    
                     
    Three Months Ended
    June 30,   March 31,   December 31,   September 30,   June 30,
    2021   2021   2020   2020   2020
                     
Interest income                    
Loans, including fees   $ 11,433     $ 10,856     $ 10,790     $ 10,909   $ 10,585
Investment securities and other     218       199       196       207     192
Total interest income     11,651       11,055       10,986       11,116     10,777
                     
Deposits     771       742       815       1,046     1,500
Other borrowings     194       271       378       518     496
Total interest expense     965       1,013       1,193       1,564     1,996
Net interest income     10,686       10,042       9,793       9,552     8,781
Provision (credit) for loan losses     (41 )     (173 )     (44 )     113     762
Net interest income after provision for loan losses     10,727       10,215       9,837       9,439     8,019
Non-interest income                    
Other loan fees     310       313       383       539     283
Gains from loan sales, net     130       118       209       424     97
Document processing fees     138       106       129       152     108
Service charges     74       67       83       75     62
Other     220       293       166       162     90
Total non-interest income     872       897       970       1,352     640
Non-interest expenses                    
Salaries and employee benefits     4,379       4,565       4,594       4,402     4,574
Occupancy, net     780       779       751       751     776
Professional services     430       340       399       460     559
Data processing     332       340       254       258     260
Depreciation     198       205       202       205     206
FDIC assessment     121       91       165       123     133
Advertising and marketing     164       183       110       145     265
Stock-based compensation     58       68       68       71     95
Other     207       289       526       307     135
Total non-interest expenses     6,669       6,860       7,069       6,722     7,003
Income before provision for income taxes     4,930       4,252       3,738       4,069     1,656
Provision for income taxes     1,379       1,231       1,111       1,209     496
Net income   $ 3,551     $ 3,021     $ 2,627     $ 2,860   $ 1,160
Earnings per share:                    
Basic   $ 0.42     $ 0.36     $ 0.31     $ 0.34   $ 0.14
Diluted   $ 0.41     $ 0.35     $ 0.31     $ 0.33   $ 0.14
                     

 

 

COMMUNITY WEST BANCSHARES                
CONDENSED CONSOLIDATED INCOME STATEMENTS                
(unaudited)                
(in 000’s, except per share data)                
                 
    Three Months Ended   Six Months Ended
    June 30,   June 30,   June 30,   June 30,
    2021   2020   2021   2020
                 
Interest income                
Loans, including fees   $ 11,433     $ 10,585   $ 22,289     $ 21,249
Investment securities and other     218       192     417       503
Total interest income     11,651       10,777     22,706       21,752
                 
Deposits     771       1,500     1,513       3,622
Other borrowings     194       496     465       886
Total interest expense     965       1,996     1,978       4,508
Net interest income     10,686       8,781     20,728       17,244
Provision (credit) for loan losses     (41 )     762     (214 )     1,154
Net interest income after provision for loan losses     10,727       8,019     20,942       16,090
Non-interest income                
Other loan fees     310       283     623       624
Gains from loan sales, net     130       97     248       287
Document processing fees     138       108     244       232
Service charges     74       62     141       196
Other     220       90     513       251
Total non-interest income     872       640     1,769       1,590
Non-interest expenses                
Salaries and employee benefits     4,379       4,574     8,944       8,972
Occupancy, net     780       776     1,559       1,534
Professional services     430       559     770       942
Data processing     332       260     672       543
Depreciation     198       206     403       414
FDIC assessment     121       133     212       277
Advertising and marketing     164       265     347       418
Stock-based compensation     58       95     126       180
Other     207       135     496       452
Total non-interest expenses     6,669       7,003     13,529       13,732
Income before provision for income taxes     4,930       1,656     9,182       3,948
Provision for income taxes     1,379       496     2,610       1,190
Net income   $ 3,551     $ 1,160   $ 6,572     $ 2,758
Earnings per share:                
Basic   $ 0.42     $ 0.14   $ 0.77     $ 0.33
Diluted   $ 0.41     $ 0.14   $ 0.76     $ 0.32
                 

 

 

COMMUNITY WEST BANCSHARES                
CONDENSED CONSOLIDATED BALANCE SHEETS                
(unaudited)                
(in 000’s, except per share data)                
                 
    June 30,   March 31,   December 31,   June 30,
      2021       2021       2020       2020  
                 
Cash and cash equivalents   $ 2,638     $ 2,607     $ 1,587     $ 4,679  
Interest-earning deposits in other financial institutions     109,642       71,128       58,953       142,823  
Investment securities     23,247       21,570       22,043       24,221  
Loans:                
Commercial     68,537       77,579       80,851       95,114  
Commercial real estate     444,127       407,336       402,148       392,789  
SBA     10,732       11,566       11,851       13,013  
Paycheck Protection Program (PPP)     71,106       94,507       69,542       75,149  
Manufactured housing     286,552       284,583       280,284       267,343  
Single family real estate     10,513       10,845       10,358       11,078  
HELOC     3,685       3,846       3,861       3,918  
Other (1)     (1,983 )     (2,414 )     (1,318 )     (2,375 )
Total loans     893,269       887,848       857,577       856,029  
                 
Loans, net                
Held for sale     27,252       29,767       31,229       35,090  
Held for investment     866,017       858,081       826,348       820,939  
Less: Allowance for loan losses     (10,240 )     (10,233 )     (10,194 )     (10,008 )
Net held for investment     855,777       847,848       816,154       810,931  
NET LOANS     883,029       877,615       847,383       846,021  
                 
Other assets     44,472       45,102       45,469       43,103  
                 
TOTAL ASSETS   $ 1,063,028     $ 1,018,022     $ 975,435     $ 1,060,847  
                 
Deposits                
Non-interest-bearing demand   $ 202,293     $ 196,617     $ 181,837     $ 192,806  
Interest-bearing demand     449,649       440,502       398,101       311,266  
Savings     19,700       19,858       18,736       17,862  
Certificates of deposit ($250,000 or more)     19,791       20,072       30,536       86,046  
Other certificates of deposit     173,145       127,472       136,975       142,178  
Total deposits     864,578       804,521       766,185       750,158  
Other borrowings     90,000       105,000       105,000       210,103  
Other liabilities     12,993       16,710       15,243       16,493  
TOTAL LIABILITIES     967,571       926,231       886,428       976,754  
                 
Stockholders’ equity     95,457       91,791       89,007       84,093  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
               
  $ 1,063,028     $ 1,018,022     $ 975,435     $ 1,060,847  
                 
Common shares outstanding     8,589       8,524       8,473       8,472  
                 
Book value per common share   $ 11.11     $ 10.77     $ 10.50     $ 9.93  
                 
(1) Includes consumer, other loans, securitized loans, and deferred fees                
                 

 

 

ADDITIONAL FINANCIAL INFORMATION                  
(Dollars and shares in thousands except per share amounts)(Unaudited)                  
  Three Months Ended   Three Months Ended   Three Months Ended   Six Months Ended   Six Months Ended
PERFORMANCE MEASURES AND RATIOS June 30, 2021   March 31, 2021   June 30, 2020   June 30, 2021   June 30, 2020
Return on average common equity   15.18 %     13.48 %     5.57 %     14.35 %     6.66 %
Return on average assets   1.37 %     1.22 %     0.48 %     1.29 %     0.59 %
Efficiency ratio   57.70 %     62.71 %     74.33 %     60.14 %     72.91 %
Net interest margin   4.24 %     4.19 %     3.72 %     4.22 %     3.84 %
                   
  Three Months Ended   Three Months Ended   Three Months Ended   Six Months Ended Six Months Ended
AVERAGE BALANCES June 30, 2021   March 31, 2021   June 30, 2020   June 30, 2021   June 30, 2020
Average assets $ 1,041,986     $ 1,004,611     $ 978,250     $ 1,023,402     $ 932,334  
Average earning assets   1,009,968       972,945       949,149       991,559       903,661  
Average total loans   891,948       875,766       839,625       883,902       813,581  
Average deposits   840,104       792,502       745,644       816,434       731,925  
Average common equity   93,851       90,906       83,757       92,387       83,286  
                   
EQUITY ANALYSIS June 30, 2021   March 31, 2021   June 30, 2020        
Total common equity $ 95,457     $ 91,791     $ 84,093          
Common stock outstanding   8,589       8,524       8,472          
                   
Book value per common share $ 11.11     $ 10.77     $ 9.93          
                   
ASSET QUALITY June 30, 2021   March 31, 2021   June 30, 2020        
Nonaccrual loans, net $ 1,797     $ 1,825     $ 2,640          
Nonaccrual loans, net/total loans   0.20 %     0.21 %     0.31 %        
Other assets acquired through foreclosure, net $ 2,572     $ 2,572     $ 2,707          
                   
Nonaccrual loans plus other assets acquired through foreclosure, net $ 4,369     $ 4,397     $ 5,347          
Nonaccrual loans plus other assets acquired through foreclosure, net/total assets   0.41 %     0.43 %     0.50 %        
Net loan (recoveries)/charge-offs in the quarter $ (48 )   $ (212 )   $ (79 )        
Net (recoveries)/charge-offs in the quarter/total loans   (0.01 %)     (0.02 %)     (0.01 %)        
                   
Allowance for loan losses $ 10,240     $ 10,233     $ 10,008          
Plus: Reserve for undisbursed loan commitments   78       82       91          
Total allowance for credit losses $ 10,318     $ 10,315     $ 10,099          
Allowance for loan losses/total loans held for investment   1.18 %     1.19 %     1.22 %        
Allowance for loan losses/total loans held for investment excluding PPP loans   1.29 %     1.34 %     1.34 %        
Allowance for loan losses/nonaccrual loans, net   569.84 %     560.71 %     379.09 %        
                   
                   
Community West Bank *                  
Community bank leverage ratio   8.94 %     8.97 %     8.94 %        
Tier 1 leverage ratio   8.94 %     8.97 %     8.94 %        
Tier 1 capital ratio   11.21 %     11.28 %     10.38 %        
Total capital ratio   12.46 %     12.53 %     11.63 %        
                   
INTEREST SPREAD ANALYSIS June 30, 2021   March 31, 2021   June 30, 2020        
Yield on total loans   5.14 %     5.03 %     5.07 %        
Yield on investments   2.76 %     2.51 %     1.88 %        
Yield on interest earning deposits   0.15 %     0.22 %     0.29 %        
Yield on earning assets   4.63 %     4.61 %     4.57 %        
                   
Cost of interest-bearing deposits   0.48 %     0.50 %     1.06 %        
Cost of total deposits   0.37 %     0.38 %     0.81 %        
Cost of borrowings   0.84 %     1.05 %     1.50 %        
Cost of interest-bearing liabilities   0.53 %     0.58 %     1.14 %        
Cost of funds   0.41 %     0.46 %     0.91 %        
                   
* Capital ratios are preliminary until the Call Report is filed.                  
                   

 

 

Contact: Susan C. Thompson, EVP & CFO
  805.692.5821
  www.communitywestbank.com 

 


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Source: Community West Bancshares