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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 POSTS 15% PROFIT INCREASE OF $1,289,000 FOR 2006 Q2
AND 22% INCREASE FOR 2006 SIX-MONTH PERIOD
Goleta, California, July 25, 2006 - Community West Bancshares (Company) (NASDAQ:
CWBC), parent company of Community West Bank, today reported net income of
$1,289,000, or $.21 per share diluted, for the quarter ended June 30, 2006 (2006
Q2), compared to $1,119,000, or $.19 per share diluted, for the quarter ended
June 30, 2005 (2005 Q2). For the six months ended June 30, 2006, the Company
reported net income of $2,548,000, or $.43 per share diluted, compared to
$2,097,000, or $.35 per share diluted, for the six months ended June 30, 2005.
NET INTEREST INCOME
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Net interest income for the comparative quarters ended June 30 increased by
$763,000.
Total interest income for the comparative quarters ended June 30 increased by
$2,260,000. $1,643,000 of the increase is attributed to the strong comparative
growth in interest-earning assets, primarily in the commercial lending, SBA and
manufactured housing portfolios, partially offset by the decrease in securitized
loans; and, $617,000 of the increase is attributed to higher interest rates.
Interest expense on deposits for the comparative three-month period increased by
$1,372,000. $808,000 of the increase is attributed to interest-bearing deposit
growth and $564,000 is attributed to higher interest rates. Interest expense on
borrowings increased $125,000, which is primarily rate-related.
PROVISION FOR LOAN LOSSES
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Overall, the general portfolio credit quality continues to be relatively stable
and the Company continues to benefit from the low amounts of classified loans
and net charge-offs.
NON-INTEREST INCOME AND NON-INTEREST EXPENSES
Non-interest income decreased by $282,000 from 2005 Q2 to 2006 Q2 as the Company
recorded declines in gains from loan sales and other loan fees.
The Company continues to manage non-interest expenses as there was only a
$281,000 increase in such expenses, which included a new branch location, for
the comparative quarterly periods.
BALANCE SHEET
The Company's total assets increased to $469.2 million, or $24.8 million, at
June 30, 2006 compared to $444.4 million at December 31, 2005. Net loans
increased by $27.3 million and combined liquid assets and investment securities
decreased by a net of $2.1 million.
On the funding side in 2006, deposits increased by $14.6 million while FHLB
advances have increased by $8.0 million.
CAPITAL
As of June 30, 2006, the Company had $44.3 million in total shareholders'
equity, or 9.45% of consolidated total assets, and book value per share was
$7.67.
DIVIDEND DECLARED
The Board of Directors announced that they have declared a regular quarterly
dividend of $.06 per common share, payable August 18, 2006 to shareholders of
record as of the close of business on August 4, 2006. At this quarterly rate,
the annual dividend is equivalent to $.24 per common share.
COMMENTS FROM PRESIDENT AND CHIEF EXECUTIVE OFFICER
Lynda J. Nahra, President and Chief Executive Officer, noted: "We are very
satisfied that we were able to maintain our earnings momentum in this
challenging interest rate and overall banking environment. Our consistency and
focus on our business plan to grow the Bank organically continues to be an
effective strategy. Accordingly, to better serve our expanding Ventura County
market, we have announced that we will open our fifth branch location in
Westlake Village in the fourth quarter 2006."
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 four full-service branch banking offices, in Goleta, Ventura, Santa
Maria and Santa Barbara, with a fifth planned for Westlake Village, estimated to
open in October 2006. 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 STATEMENTS
(unaudited)
(in 000's, except share and per share data)
Three Months Ended June 30, Six Months Ended June 30,
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2006 2005 2006 2005
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Interest income $ 9,377 $ 7,117 $ 18,426 $ 13,445
Interest expense 3,908 2,411 7,424 4,471
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Net interest income 5,469 4,706 11,002 8,974
Provision for loan losses 144 264 325 434
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Net interest income after
provision for loan losses 5,325 4,442 10,677 8,540
Non-interest income 1,579 1,861 2,906 3,685
Non-interest expenses 4,687 4,406 9,197 8,662
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Income before income taxes 2,217 1,897 4,386 3,563
Provision for income taxes 928 778 1,838 1,466
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NET INCOME $ 1,289 $ 1,119 $ 2,548 $ 2,097
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Earnings per share:
Basic $ 0.22 $ 0.19 $ 0.44 $ 0.37
Diluted 0.21 0.19 0.43 0.35
Weighted average shares:
Basic 5,780,664 5,745,014 5,773,729 5,743,154
Diluted 5,999,802 5,945,231 5,988,149 5,940,594
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Selected average balance sheet items
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Average assets $ 459,084 $ 380,600 $ 455,349 $ 370,287
Average gross loans 401,717 326,538 393,604 317,162
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
June 30, December 31,
2006 2005
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Cash and cash equivalents $ 11,833 $ 13,732
Interest-earning deposits in other financial institutions 534 532
Investment securities 31,140 31,296
Loans:
Held for sale 67,159 60,506
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Held for investment 345,634 324,965
Less: Allowance (3,997) (3,954)
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Net held for investment 341,637 321,011
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NET LOANS 408,796 381,517
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Other assets 16,880 17,277
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TOTAL ASSETS $ 469,183 $ 444,354
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Deposits $ 348,883 $ 334,238
FHLB advances 71,500 63,500
Other liablities 4,473 4,381
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TOTAL LIABILITIES 424,856 402,119
Stockholders' equity 44,327 42,235
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 469,183 $ 444,354
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Shares outstanding 5,781,653 5,751,313
Book value per share $ 7.67 $ 7.34
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Nonaccrual loans $ 4,550 $ 6,797
SBA guaranteed portion (2,425) (4,332)
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Nonaccrual loans, net $ 2,125 $ 2,465
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