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    HomeBusinessCommunity West Bancshares Earns $3.5 Million in the Third Quarter of 2022

    Community West Bancshares Earns $3.5 Million in the Third Quarter of 2022

    Community West Bancshares, parent company of Community West Bank, today [10/28/2022] reported net income of $3.5 million, or $0.39 per diluted share, for the third quarter of 2022, compared to $2.6 million, or $0.30 diluted share, for the preceding quarter, and $3.6 million, or $0.41 per diluted share, for the third quarter of 2021. For the first nine months of 2022, the Company reported net income of $10.1 million, or $1.13 per diluted share, compared to $10.2 million, or $1.17 per diluted share, for the first nine months of 2021.

    Earnings for the third quarter of 2022 were impacted by a one-time $132,000 recovery related to a prior OREO expense, and a $298,000 provision expense for loan losses. This compared to a $252,000 provision expense recorded during the preceding quarter.

    The Company’s Board of Directors declared a quarterly cash dividend of $0.075 per common share, payable November 30, 2022, to common shareholders of record on November 14, 2022.

    “Our third quarter operating results reflect strong growth in the loan portfolio and continued net interest margin expansion,” stated Martin E. Plourd, President & Chief Executive Officer of Community West Bancshares. “Loan growth has really started to materialize, with total loans increasing 3.6% during the quarter, or 14.5% annually, primarily reflecting increases in the C&I, commercial real estate and manufactured housing portfolios. Additionally, our net interest margin improved substantially on a linked quarter basis, improving 38 basis points to 4.39%, as we took advantage of interest rate increases enacted by the Federal Reserve and invested cash balances into higher yielding loans and securities. We remain well positioned for additional rising interest rates, which should allow us to maintain our strong net interest margin, and ample on-balance sheet liquidity to support loan demand and temper rising deposit costs.”

    Third Quarter 2022 Financial Highlights:

    • Net income was $3.5 million, or $0.39 per diluted share in the third quarter 2022, compared to $2.6 million, or $0.30 per diluted share in second quarter 2022, and $3.6 million, or $0.41 per diluted share in third quarter 2021.
    • Net interest income increased to $11.9 million for third quarter 2022, compared to $11.0 million in second quarter 2022 and $10.9 million in third quarter 2021.
    • Net interest margin improved to 4.39% for the third quarter 2022, compared to 4.01% in second quarter 2022, and 3.97% in third quarter 2021.
    • Return on average assets was 1.25% for the third quarter 2022, compared to 0.93% in second quarter 2022, and 1.28% in third quarter 2021.
    • Return on average equity was 12.65% for the third quarter 2022, compared to 9.92% in second quarter 2022, and 14.77% in third quarter 2021.
    • The Company recorded a provision for loan losses of $298,000 for third quarter 2022, compared to a provision of $252,000 for second quarter 2022, and a provision of $7,000 for third quarter 2021.
    • The Allowance for Loan Losses (“ALL”) was 1.20% of total loans held for investment at September 30, 2022, compared to 1.22% at June 30, 2022, and 1.19% at September 30, 2021.
    • Net non-accrual loans improved to $239,000 at September 30, 2022, compared to $379,000 at June 30, 2022, and $1.7 million at September 30, 2021.
    • Total loans increased by $33.0 million to $945.7 million at September 30, 2022, compared to $912.7 million, at June 30, 2022, and increased $55.1 million compared to $890.6 million, at September 30, 2021.
    • Stockholders’ equity increased $2.7 million to $109.8 million at September 30, 2022, compared to $107.1 million at June 30, 2022, and $98.8 million at September 30, 2021. During the quarter, the Company had a $307,000 increase in Accumulated Other Comprehensive Income (“AOCI”) related to an increase in the unrealized loss on available for sale securities reflecting the increase in market interest rates during the quarter.
    • Non-interest-bearing demand deposits increased $6.4 million to $243.1 million at September 30, 2022, compared to $236.7 million at June 30, 2022, and increased $23.3 million compared to $219.8 million at September 30, 2021.
    • Book value per common share increased to $12.54 at September 30, 2022, compared to $12.25 at June 30, 2022, and $11.46 at September 30, 2021.
    • The Bank’s Tier 1 leverage ratio was 9.83% at September 30, 2022, compared to 9.30% at June 30, 2022, and 8.59% at September 30, 2021.
    Press Release
    Press Release
    This is a press release sent to Goleta Voice for publication. Refer to the references in the article for more information.
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