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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: 805-692-5821
E-MAIL: CBALTUSKONIS@COMMUNITYWESTBANK.COM
URL: HTTP://WWW.COMMUNITYWESTBANK.COM
SYMBOL: CWBC (NASDAQ)
COMMUNITY WEST BANCSHARES ANNOUNCES OPERATING EARNINGS OF $978,000 FOR 2005 Q 1,
AN INCREASE OF 12%
QUARTERLY DIVIDEND INCREASED BY 25% TO $.05 PER SHARE
Goleta, California, April 25, 2005 - Community West Bancshares (Company) today
announced operating results for the first quarter of calendar 2005.
EARNINGS SUMMARY
For the quarter ended March 31, 2005 (2005 Q 1), the Company recorded net income
of $978,000, or $.17 per share (basic, and $.16 per share diluted), compared to
net income of $874,000, or $.15 per share (basic and diluted), for the quarter
ended March 31, 2004 (2004 Q 1), a 12% comparative increase.
NET INTEREST INCOME
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Net interest income for the comparative three-month period increased by
$1,104,000.
Total interest income for the comparative three-month period increased by
$1,225,000. $890,000 of the increase is attributed to the growth in
interest-earning assets, primarily in the commercial lending and manufactured
housing portfolios, partially offset by the continued decrease in securitized
loans; and, $335,000 of the increase is attributed to increased interest rates.
Interest expense on deposits for the comparative three-month period increased by
$355,000. $221,000 of the increase is attributed to interest-bearing deposit
growth and $134,000 is attributed to increased interest rates. Interest expense
on borrowings decreased $234,000, substantially all of which was volume-related.
The Company continues to benefit from the paydowns of the relatively high-rate,
securitized bonds, thus serving to reduce the Company's cost of funds.
PROVISION FOR LOAN LOSSES
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Overall, the general portfolio credit quality continues to be relatively stable
and, in addition, the securitized loan portfolio continues to stabilize and pay
down.
NON-INTEREST INCOME AND NON-INTEREST EXPENSES
Non-interest income decreased from $2.5 million for 2004 Q 1 to $1.8 million for
2005 Q 1. The Company experienced declines in gains from loan sales, certain
fee income categories and had lower loan servicing fees, primarily due to fewer
SBA loan sales compared to last year, which would add to the servicing asset,
and increased loan prepayment rates, which serve to decrease the servicing
asset.
The Company continues to control non-interest expenses and there was only a
modest increase in the comparative periods.
BALANCE SHEET
The Company's total assets increased to $371.0 million, or $5.8 million, at
March 31, 2005 compared to $365.2 million at December 31, 2004. Net loans
increased by $18.8 million and combined liquid assets and investment securities
decreased by a net of $13.2 million.
On the funding side in 2005, deposits have decreased by $9.9 million while other
borrowings have increased by $13.8 million in total.
CAPITAL
As of March 31, 2005, the Company had $38.4 million in equity capital, or 10.36%
of consolidated total assets, and book value per share was $6.69.
DIVIDEND INCREASED
The Board of Directors announced that they have declared a quarterly dividend of
$.05 per common share, payable May 19, 2005 to shareholders of record as of the
close of business on May 5, 2005. At this quarterly rate, the annual dividend
is equivalent to $.20 per common share and represents a 25% increase in the
payout rate.
COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER
Lynda J. Nahra, President and Chief Executive Officer, noted: "We started the
2005 year off with solid results and we are extremely pleased with the overall
execution of our strategic initiatives. We will continue to be focused on our
business model and core competencies, and in providing the highest quality
service to our diverse client base. On April 1, 2005, we relocated our Santa
Maria mortgage and commercial lending office to our new location and will open
the full-service branch on May 2, 2005."
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,
which has two full-service branch offices, in Goleta and Ventura, with a third
location, in Santa Maria, California, scheduled to open on May 2, 2005. The
principal business activities of the Company are Relationship banking, Mortgage
lending and SBA lending, with loans originating in
California, Alabama, Colorado, Florida, Georgia, North Carolina, Oregon, South
Carolina, Tennessee and Washington.
SEE ENCLOSED FINANCIAL TABLES
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)
Quarter Ended March 31,
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2005 2004
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Interest income $ 6,328 $ 5,103
Interest expense 2,060 1,939
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Net interest income 4,268 3,164
Provision for loan losses 170 95
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Net interest income after provision for loan losses 4,098 3,069
Non-interest income 1,825 2,492
Non-interest expenses 4,257 4,076
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Income before income taxes 1,666 1,485
Provision for income taxes 688 611
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NET INCOME $ 978 $ 874
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Earnings per share:
Basic $ 0.17 $ 0.15
Diluted 0.16 0.15
Weighted average shares:
Basic 5,741,274 5,707,415
Diluted 5,955,102 5,834,439
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Selected average balance sheet items
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Average assets $ 359,886 $ 310,156
Average gross loans 307,659 253,970
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
March 31, December 31,
2005 2004
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Cash and cash equivalents $ 15,274 $ 30,205
Interest-earning deposits in other financial institutions 639 647
Investment securities 30,119 28,352
Loans:
Held for sale 42,608 45,988
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Held for investment 249,404 224,938
Less: Allowance (2,964) (2,785)
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Net held for investment 246,440 222,153
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Securitized loans 21,406 23,474
Less: Allowance (1,122) (1,109)
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Net securitized loans 20,284 22,365
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NET LOANS 309,332 290,506
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Other assets 15,614 15,493
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TOTAL ASSETS $ 370,978 $ 365,203
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Deposits $ 274,659 $ 284,568
Repurchase agreements 10,629 13,672
FHLB advances 28,500 10,500
Bonds payable 12,726 13,910
Other liablities 6,044 4,984
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TOTAL LIABILITIES 332,558 327,634
Stockholders' equity 38,420 37,569
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 370,978 $ 365,203
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Shares outstanding 5,745,014 5,729,869
Book value per share $ 6.69 $ 6.56
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Nonaccrual loans $ 8,461 $ 8,350
SBA guaranteed portion (5,867) (5,287)
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Nonaccrual loans, net $ 2,594 $ 3,063
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