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

Rhea-AI Summary

Community West Bancshares (CWBC) reported a 17.5% increase in net income for 2Q21, totaling $3.6 million or $0.41 per diluted share, compared to $3.0 million in 1Q21 and $1.2 million in 2Q20. Year-to-date net income rose 138.3% to $6.6 million. Net interest income grew to $10.7 million, with a net interest margin of 4.24%. Total loans reached $893.3 million, with demand deposits at $651.9 million. The company declared a cash dividend of $0.07 per share, reflecting a positive outlook amid controlled asset quality.

Positive

• Net income rose 17.5% to $3.6 million in 2Q21 and 138.3% year-to-date.
• Net interest income increased to $10.7 million in 2Q21.
• Net interest margin improved to 4.24% in 2Q21.
• Total demand deposits increased by $14.8 million to $651.9 million.

Negative

• None.

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

 

FAQ

What were Community West Bancshares' earnings for 2Q21?

Community West Bancshares reported net income of $3.6 million, or $0.41 per diluted share, for 2Q21.

How much did total loans increase for CWBC in 2Q21?

Total loans increased by $5.4 million to $893.3 million at June 30, 2021.

What is the net interest margin for Community West Bancshares in 2Q21?

The net interest margin improved to 4.24% for the second quarter of 2021.

What dividend did CWBC declare in August 2021?

Community West Bancshares declared a quarterly cash dividend of $0.07 per common share.