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EXHIBIT 99.1
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COMMUNITY WEST BANCSHARES
[GRAPHIC OMITED]
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 21% PRETAX PROFIT INCREASE FOR 2006 Q3 AND 22%
INCREASE FOR 2006 NINE-MONTH PERIOD
NET INCOME FOR 2006 Q3 IS $1,491,000, OR $.25 PER SHARE DILUTED, COMPARED TO
$2,151,000, OR $.36 PER SHARE DILUTED FOR 2005 Q3; 2005 Q3 INCLUDED AN INCOME
TAX CREDIT OF $914,000, OR $.15 PER SHARE DILUTED
Goleta, California, October 24, 2006 - Community West Bancshares (Company)
(NASDAQ: CWBC), parent company of Community West Bank, today reported net income
of $1,491,000, or $.25 per share diluted, for the quarter ended September 30,
2006 (2006 Q3), compared to $2,151,000, or $.36 per share diluted, for the
quarter ended September 30, 2005 (2005 Q3). For the nine months ended September
30, 2006, the Company reported net income of $4,039,000, or $.67 per share
diluted, compared to $4,248,000, or $.72 per share diluted, for the nine months
ended September 30, 2005. The results for both the 2005 Q3 and nine months
ended September 30, 2005 included an income tax credit related to resolution of
potential tax issues of $914,000, or $.15 per share diluted.
NET INTEREST INCOME
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Net interest income for the comparative quarter ended September 30, 2006
increased by $922,000.
Total interest income for the comparative quarter ended September 30, 2006
increased by $2,625,000. $1,717,000 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, $908,000 of the increase is attributed to
higher interest rates.
Interest expense on deposits for the comparative three-month period increased by
$1,472,000. $838,000 of the increase is attributed to interest-bearing deposit
growth and $634,000 is attributed to higher interest rates. Interest expense on
borrowings increased $231,000, 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 $543,000 from 2005 Q3 to 2006 Q3 as the Company
recorded declines in gains from loan sales and other loan fees.
The Company continues to efficiently manage non-interest expenses as there was a
$105,000 decrease in such expenses, which included a new branch location and
pre-opening expenses for another, for the comparative quarterly periods.
BALANCE SHEET
The Company's total assets increased $53.7 million to $498.1 million at
September 30, 2006 compared to $444.4 million at December 31, 2005. Net loans
increased by $45.6 million and combined liquid assets and investment securities
increased by a net of $7.3 million.
On the funding side in 2006, deposits have increased by $27.5 million while FHLB
advances have increased by $21.5 million.
CAPITAL
As of September 30, 2006, the Company had $45.6 million in total shareholders'
equity, or 9.15% of consolidated total assets, and book value per share was
$7.87.
DIVIDEND DECLARED
The Board of Directors announced that they have declared a regular quarterly
dividend of $.06 per common share, payable November 17, 2006 to shareholders of
record as of the close of business on November 3, 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: "Despite a third
quarter that was challenging from an economic and competitive perspective, our
focus on core competencies allowed us to continue to grow earnings. In October
2006, to better serve our expanding Ventura County market, we opened our fifth
branch location in Westlake Village."
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 five full-service California branch banking offices, in Goleta,
Ventura, Santa Maria, Santa Barbara and Westlake Village. 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 September 30, Nine Months Ended September 30,
------------------------------------- -----------------------------------
2006 2005 2006 2005
----------------- ------------------ ---------------- -----------------
Interest income $ 10,276 $ 7,651 $ 28,702 $ 21,096
Interest expense 4,489 2,786 11,913 7,256
----------------- ------------------ ---------------- -----------------
Net interest income 5,787 4,865 16,789 13,840
Provision for loan losses 12 (39) 337 396
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Net interest income after
provision for loan losses 5,775 4,904 16,452 13,444
Non-interest income 1,453 1,996 4,359 5,681
Non-interest expenses 4,694 4,799 13,891 13,461
----------------- ------------------ ---------------- -----------------
Income before income taxes 2,534 2,101 6,920 5,664
Provision for income taxes 1,043 (50) 2,881 1,416
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NET INCOME $ 1,491 $ 2,151 $ 4,039 $ 4,248
================= ================== ================ =================
Earnings per share:
Basic $ 0.26 $ 0.37 $ 0.70 $ 0.74
Diluted 0.25 0.36 0.67 0.72
Weighted average shares:
Basic 5,787,097 5,745,150 5,778,234 5,743,827
Diluted 6,007,513 5,930,565 5,994,992 5,924,866
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Selected average balance sheet items
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Average assets $ 482,633 $ 405,545 $ 464,508 $ 382,143
Average gross loans 421,512 347,398 403,015 327,324
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except share and per share data)
September 30, December 31,
2006 2005
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Cash and cash equivalents $ 19,973 $ 13,732
Interest-earning deposits in other financial institutions 630 532
Investment securities 32,306 31,296
Loans:
Held for sale 65,629 60,506
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Held for investment 365,400 324,965
Less: Allowance (3,898) (3,954)
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Net held for investment 361,502 321,011
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NET LOANS 427,131 381,517
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Other assets 18,089 17,277
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TOTAL ASSETS $ 498,129 $ 444,354
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Deposits $ 361,769 $ 334,238
FHLB advances 85,000 63,500
Other liablities 5,762 4,381
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TOTAL LIABILITIES 452,531 402,119
Stockholders' equity 45,598 42,235
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 498,129 $ 444,354
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Shares outstanding 5,792,818 5,751,313
Book value per share $ 7.87 $ 7.34
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Nonaccrual loans $ 5,683 $ 6,797
SBA guaranteed portion (3,365) (4,332)
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Nonaccrual loans, net $ 2,318 $ 2,465
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