Community West Bancshares Earnings Up 88% to $3.0 Million, or $0.35 Per Diluted Share, in 1Q21 Compared to 1Q20; Increases Quarterly Cash Dividend by 17% to $0.07 Per Common Share
Community West Bancshares (NASDAQ: CWBC) reported a 15.4% increase in net income to $3.0 million, or $0.35 per diluted share, for 1Q21, compared to $2.6 million in 4Q20 and $1.6 million in 1Q20. The company saw a growth in net interest income to $10 million, driven by loan originations and core deposit growth. Demand deposits rose by $57.2 million to $637.1 million. The net interest margin improved to 4.19%, and net non-accrual loans decreased by 51.3%. The bank's participation in the PPP program contributed significantly to its performance, with $22.8 million of loans forgiven in 1Q21.
- Net income increased 15.4% to $3.0 million in 1Q21.
- Net interest income rose to $10 million, up from $9.8 million in 4Q20.
- Net interest margin improved to 4.19% from 4.13% in 4Q20.
- Total demand deposits increased $57.2 million to $637.1 million.
- Net non-accrual loans decreased by 51.3% to $1.8 million.
- None.
GOLETA, Calif., May 03, 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
“We started the year with solid operating performance, higher net interest income and an expanding net interest margin, fueled by loan originations and core deposit growth,” stated Martin E. Plourd, President and Chief Executive Officer. “We continue to generate profitable operations, which sustains our ability to increase dividends. We believe the increase was warranted as evidenced by our last three quarters performance. Our focus in 2021 remains on deploying excess liquidity through increased lending activity, while maintaining our strong net interest margin, lowering overall expenses and managing asset quality.”
First Quarter 2021 Financial Highlights:
- Net income was
$3.0 million , or$0.35 per diluted share in 1Q21, compared to$2.6 million , or$0.31 per diluted share in 4Q20, and$1.6 million , or$0.19 per diluted share in 1Q20. - Net interest income increased to
$10 million for the quarter, compared to$9.8 million for 4Q20 and$8.5 million in 1Q20. - A provision credit for loan losses of
$173,000 for the quarter, compared to a provision credit for loan losses of$44,000 for 4Q20, and a provision for loan losses of$392,000 for 1Q20. The resulting allowance was1.19% of total loans held for investment at March 31, 2021, and1.34% of total loans held for investment excluding the$94.5 million of Paycheck Protection Program (“PPP”) loans at March 31, 2021, which are100% guaranteed by the Small Business Administration (“SBA”).* - Net interest margin improved to
4.19% for 1Q21, compared to4.13% for 4Q20, and3.97% for 1Q20. - Total demand deposits increased
$57.2 million to$637.1 million at March 31, 2021, compared to$579.9 million at December 31, 2020, and increased$229.1 million compared to$408 million at March 31, 2020. Total demand deposits represented79.2% of total deposits at March 31, 2021, compared to75.7% at December 31, 2020, and57.3% at March 31, 2020. - Total loans increased
$30.2 million to$887.8 million at March 31, 2021, compared to$857.6 million at December 31, 2020, and increased$105.8 million compared to$782 million at March 31, 2020. - Book value per common share increased to
$10.77 at March 31, 2021, compared to$10.50 at December 31, 2020, and$9.82 at March 31, 2020. - The Bank’s community bank leverage ratio (CBLR) was
8.97% at March 31, 2021, compared to9.29% at December 31, 2020, and9.21% at March 31, 2020. - Net non-accrual loans decreased by
51.3% to$1.8 million at March 31, 2021, compared to$3.7 million at December 31, 2020, and$2.6 million at March 31, 2020. - Other assets acquired through foreclosure, net, was
$2.6 million at March 31, 2021 and December 31, 2020, respectively, and$2.7 million at March 31, 2020. - Awarded a “Super Premier Performance” rating by The Findley Reports.
*Non GAAP
COVID-19 Pandemic & PPP loan Update
“Part of our success in the first quarter of 2021, and also in 2020, included our participation in the SBA’s PPP program,” said Plourd. “In 2020, we generated 521 SBA PPP loans totaling
The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020, providing additional COVID-19 stimulus relief, and it includes
“Since January, we have originated an additional 393 PPP loans for
“From the onset of the pandemic, we maintained all branch activity, while working with clients who were experiencing hardship,” said William F. Filippin, Chief Credit and Chief Administrative Officer. “We remain focused on assessing the risks in our loan portfolio and working with our clients to minimize losses, and implemented an initial loan modification program to assist clients impacted by the pandemic with loan deferrals. The Bank initially granted 90-day or 180-day deferral requests beginning in April of 2020. By late May, as our local markets began easing restrictions, we reverted to a standard 90-day payment deferral, with a longer term considered an exception, requiring additional approval. As a result, we have a mixture of payment deferral terms.
At the peak in July 2020, the Company had 269 loans on payment deferral for a total of
The table below shows the breakdown of deferrals by loan type:
| Pandemic Deferments | |||||||||||||||
| March 31, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||
| Loan segment | Count | Balance | Count | Balance | Count | Balance | |||||||||
| (in thousands) | (in thousands) | (in thousands) | |||||||||||||
| Manufactured housing | 2 | $ | 207 | 8 | $ | 1,261 | 116 | $ | 15,984 | ||||||
| Commercial real estate | 1 | 1,094 | 2 | 2,082 | 60 | 104,492 | |||||||||
| Commercial | 2 | 84 | 3 | 1,767 | 24 | 8,520 | |||||||||
| SBA | - | - | - | - | - | - | |||||||||
| HELOC | - | - | - | - | - | - | |||||||||
| Single family real estate | - | - | - | - | 3 | 717 | |||||||||
| Consumer | - | - | - | - | - | - | |||||||||
| Total pandemic deferments | 5 | $ | 1,385 | 13 | $ | 5,111 | 203 | $ | 129,713 | ||||||
| Issued in year 2021 loan count 3 balance | |||||||||||||||
“While the quantity of loan deferral requests has tapered off significantly since the onset of the pandemic, we continue to see clients experiencing some level of financial hardship,” said Filippin. “New deferral requests are being granted based on stricter parameters, including proof of financial hardship that can be validated, compared to earlier in the pandemic when they were offered with fewer restrictions in place. We continue to risk rate the deferred portfolio at “Watch” or worse status depending on the credit, and monitor frequently. The credit will remain in this risk rating after payments resume and until the borrower’s capacity to maintain payments has been validated.” The table below reflects the high-risk industry loans by type at March 31, 2021. The industries in our markets most heavily impacted include retail, healthcare, hospitality, schools and energy. The Company’s management team continues to evaluate the loans related to the affected industries, and at March 31, 2021, the Bank’s loans to these industries were
Of the selected industry loans,
| Sectors Under Focus (Excluding PPP Loans) | |||||||||||||||||
| As of 03/31/21 (in thousands) | Loans Outstanding | $ Non-accrual | % Non-accrual | $ Classified | % Classified | $ Deferrals | % Deferral | ||||||||||
| Healthcare | $ | 51,586 | $ | - | 0.00 | % | $ | 2,240 | 4.34 | % | $ | 50 | 0.10 | % | |||
| Senior/Assted Living Facilities | 23,420 | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | |||||||
| Medical Offices | 19,137 | - | 0.00 | % | 270 | 1.41 | % | - | 0.00 | % | |||||||
| General Healthcare | 9,029 | - | 0.00 | % | 1,970 | 21.82 | % | 50 | 0.55 | % | |||||||
| Hospitality | 50,699 | 1,429 | 2.82 | % | 5,243 | 10.34 | % | 1,094 | 2.16 | % | |||||||
| Lodging | 40,425 | 1,427 | 3.53 | % | 2,542 | 6.29 | % | - | 0.00 | % | |||||||
| Restaurants | 10,274 | 2 | 0.02 | % | 2,701 | 26.29 | % | 1,094 | 10.65 | % | |||||||
| Retail Commercial Real Estate | 54,394 | 7,362 | 13.53 | % | 7,498 | 13.78 | % | - | 0.00 | % | |||||||
| Retail Services | 13,783 | - | 0.00 | % | 18 | 0.13 |
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Community West Bancshares Earnings Up 88% to $3.0 Million, or $0.35 Per Diluted Share, in 1Q21 Compared to 1Q20; Increases Quarterly Cash Dividend by 17% to $0.07 Per Common Share FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were Community West Bancshares' earnings for 1Q21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Community West Bancshares reported a net income of $3.0 million, or $0.35 per diluted share, for 1Q21."
}
},
{
"@type": "Question",
"name": "How did net interest income change for CWBC in 1Q21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Net interest income increased to $10 million in 1Q21, compared to $9.8 million in 4Q20."
}
},
{
"@type": "Question",
"name": "What is the net interest margin for CWBC in 1Q21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The net interest margin for Community West Bancshares improved to 4.19% in 1Q21."
}
},
{
"@type": "Question",
"name": "What were the total demand deposits for CWBC as of March 31, 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total demand deposits increased to $637.1 million as of March 31, 2021."
}
},
{
"@type": "Question",
"name": "How much of the PPP loans were forgiven in 1Q21 for CWBC?",
"acceptedAnswer": {
"@type": "Answer",
"text": "In 1Q21, $22.8 million of PPP loans were forgiven."
}
}
]
}
FAQ
What were Community West Bancshares' earnings for 1Q21?
Community West Bancshares reported a net income of $3.0 million, or $0.35 per diluted share, for 1Q21.
How did net interest income change for CWBC in 1Q21?
Net interest income increased to $10 million in 1Q21, compared to $9.8 million in 4Q20.
What is the net interest margin for CWBC in 1Q21?
The net interest margin for Community West Bancshares improved to 4.19% in 1Q21.
What were the total demand deposits for CWBC as of March 31, 2021?
Total demand deposits increased to $637.1 million as of March 31, 2021.
How much of the PPP loans were forgiven in 1Q21 for CWBC?
In 1Q21, $22.8 million of PPP loans were forgiven.
Community West Bancshares
NASDAQ:CWBCCWBC RankingsCWBC Latest NewsCWBC Stock Data
417.56M
16.34M
13.61%
49.57%
1.2%
Banks - Regional
State Commercial Banks
United States of America
FRESNO
| ||||||||||