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EXHIBIT 99.1
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[GRAPHIC OMITTED]
COMMUNITY WEST
BANCSHARES
445 PINE AVENUE, GOLETA, CA 93117
FOR IMMEDIATE RELEASE
CONTACT: CHARLES G. BALTUSKONIS, EVP/CFO
PHONE: 805-692-4409
E-MAIL: CBALTUSKONIS@GOLETA.COM
URL: HTTP://WWW.COMMUNITYWEST.COM
SYMBOL: CWBC
COMMUNITY WEST BANCSHARES (CWBC) ANNOUNCES EARNINGS PER SHARE OF $.08 FOR FOURTH
QUARTER AND $.38 FOR YEAR TO DATE
Goleta, California, January 21, 2004 - Community West Bancshares (Company) today
announced operating results for year to date and the fourth quarter of 2003.
EARNINGS SUMMARY
For the year ended December 31, 2003, the Company recorded net income of
$2,183,000, or $.38 per share (basic and diluted), compared to net loss of
$(1,270,000), or $(.22) per share (basic and diluted), for the year ended
December 31, 2002. For the three months ended December 31, 2003 (2003 Q 4), the
Company recorded net income of $452,000, or $.08 per share (basic and diluted),
compared to net income of $979,000, or $.17 per share (basic and diluted), for
the three months ended December 31, 2002 (2002 Q 4).
YEAR ENDED DECEMBER 31, 2003 COMPARED TO YEAR ENDED DECEMBER 31, 2002
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Net interest income after provision for loan losses decreased to $9,372,000 for
the year ended December 31, 2003 from $11,611,000 for the year ended December
31, 2002. The provision for loan losses decreased to $1,669,000 for the year
ended December 31, 2003 from $4,899,000 for the year ended December 31, 2002.
The Company's non-interest expenses decreased to $16,736,000 for the year ended
December 31, 2003 from $24,931,000 for the year ended December 31, 2002. The
primary improvement reasons are the discontinuance of high loan-to-value (HLTV)
and subprime loans, discontinued in 2002 Q 2, and short-term consumer loans,
formally discontinued as of December 31, 2002. Also, the 2002 non-interest
expenses include a $1,788,000 writedown for impairment of SBA interest only
strips and servicing assets and a $1,381,000 lower of cost or market provision
on loans held for sale.
2003 Q 4 COMPARED TO 2002 Q 4
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Net interest income after provision for loan losses decreased to $2,223,000 for
2003 Q 4 from $3,941,000 for 2002 Q 4. Net interest income before provision for
loan losses decreased to $2,886,000 for 2003 Q 4 from $4,109,000 for 2002 Q 4.
There was a general decline in interest rates and a product mix change in the
quarterly comparison, which have narrowed the Company's net interest margin, but
the primary reason for the margin decrease is the termination of the high-yield,
short-term consumer lending business.
The provision for loan losses was $663,000 for 2003 Q 4 compared to $168,000 for
2002 Q 4. Comparatively, the provision for loan losses was lower in 2002 Q 4 as
there were certain loans where the provision was reduced due to a payoff or an
upgrade for an economic reason. Overall, the credit quality has continued to
improve, beginning in 2002, primarily due to the Company's tightened credit
underwriting standards and the discontinuance of certain aforementioned loan
products. In addition, the securitized loan portfolio continues to stabilize
and pay down.
The specific overhead elimination associated with short-term consumer loans,
along with an ongoing internal cost reduction emphasis, contributed to a
decrease in non-interest expenses to $4,014,000 in 2003 Q 4 from $4,547,000 in
2002 Q 4.
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Lynda Nahra, President and Chief Executive Officer of the Bank, noted: "The
results for 2003 Q 4 conclude a very successful year. Despite the continued
difficult interest rate environment for the banking industry, we have remained
focused on our business model and core competencies, and believe our Company is
well positioned to take advantage of our business prospects. 2003 Q 4 is the
Company's sixth consecutive profitable quarter."
CAPITAL
As of December 31, 2003, the Company had $34,331,000 in equity capital, or
11.28% of consolidated total assets, and book value per share was $6.02.
Additionally, the Bank had a very strong risk-based capital ratio of 14.34% as
of December 31, 2003.
COMPANY OVERVIEW
Community West Bancshares is a financial services company with headquarters in
Goleta, California. The Company is the holding company for Goleta National
Bank, which has two full service branches, one in Goleta and one in Ventura,
California. The principal business activities of the Company are Relationship
Banking, Mortgage Lending and Small Business Administration Lending. The Bank
is one of the nation's premier SBA lenders with loans originating in California,
Alabama, Colorado, Florida, Georgia, North Carolina, Oregon, South Carolina,
Tennessee and Washington.
SEE ENCLOSED FINANCIAL TABLES
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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 STATEMENT
(unaudited)
(in 000's, except share and per share data)
Three Months Ended December 31, Year Ended December 31,
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2003 2002 2003 2002
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Interest income $ 4,985 $ 7,098 $ 20,383 $ 29,976
Interest expense 2,099 2,989 9,342 13,466
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Net interest income 2,886 4,109 11,041 16,510
Provision for loan
losses 663 168 1,669 4,899
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Net interest income
after provision for loan
losses
2,223 3,941 9,372 11,611
Non-interest income 2,476 2,561 10,675 11,398
Non-interest expenses 4,014 4,547 16,736 24,931
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Income (loss) before
income taxes
685 1,955 3,311 (1,922)
Provision (benefit) for
income taxes
233 976 1,128 (652)
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NET INCOME (LOSS) $ 452 $ 979 $ 2,183 $ (1,270)
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Earnings per share:
Basic $ 0.08 $ 0.17 $ 0.38 $ (0.22)
Diluted 0.08 0.17 0.38 (0.22)
Weighted average shares:
Basic 5,701,932 5,690,224 5,693,807 5,690,224
Diluted 5,827,918 5,695,301 5,758,200 5,690,224
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in 000's, except share and per share data)
December 31
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2003 2002
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Cash and cash equivalents $ 22,056 $ 31,094
Interest bearing deposits in other financial institutions 792 2,277
Investments 21,280 6,824
Loans:
Held for sale 41,838 43,284
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Held for investment 169,726 142,327
Less: Allowance (2,652) (3,379)
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Net held for investment 167,074 138,948
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Securitized loans 37,386 66,195
Less: Allowance (2,024) (2,571)
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Net securitized loans 35,362 63,624
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NET LOANS 244,274 245,856
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Other assets 15,848 21,159
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TOTAL ASSETS $ 304,250 $ 307,210
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Deposits $ 224,855 $ 219,083
Bonds payable 26,100 50,473
Repurchase agreements 14,394 -
Other liabilities 4,570 5,567
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TOTAL LIABILITIES 269,919 275,123
Stockholders' equity 34,331 32,087
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 304,250 $ 307,210
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Shares outstanding 5,706,769 5,690,224
Book value per share $ 6.02 $ 5.64
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Nonaccrual loans $ 7,174 $ 13,965
SBA guaranteed portion (4,106) (8,143)
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Nonaccrual loans, net $ 3,068 $ 5,822
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