-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IUDyALFhMflgPzbxsdPHNXxMDrH0K4vyOkz9+JQ0IskymRDcuL7b8/euZMpc+hVX W9HSlT03vO0G6lNd0/tCPA== 0001140361-06-014798.txt : 20061024 0001140361-06-014798.hdr.sgml : 20061024 20061024090919 ACCESSION NUMBER: 0001140361-06-014798 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061024 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061024 DATE AS OF CHANGE: 20061024 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNITY WEST BANCSHARES / CENTRAL INDEX KEY: 0001051343 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 770446957 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23575 FILM NUMBER: 061159005 BUSINESS ADDRESS: STREET 1: 445 PINE AVE CITY: GOLETA STATE: CA ZIP: 93117 BUSINESS PHONE: 8056921862 MAIL ADDRESS: STREET 1: 445 PINE AVE CITY: GOLETA STATE: CA ZIP: 93117 8-K 1 form8-k.txt COMMUNITY WEST BANCSHARES 8-K 10-24-2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 24, 2006 Commission File Number: 000-23575 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-0446957 (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 445 Pine Avenue, Goleta, California 93117 (Address of principal executive offices) (Zip code) (805) 692-5821 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General instruction A.2.below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 24, 2006 the Company issued a press release announcing financial results for the quarter ended September 30, 2006 and a $0.06 per share dividend. The dividend will be paid on November 17, 2006 to shareholders of record at the close of business November 3, 2006. A copy of the press release is attached as Exhibit 99.1 to this current Report on Form 8-K. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial statements. - not applicable (b) Pro forma financial statements. - not applicable (c) The following exhibit is being furnished herewith: 99.1 Press release dated October 24, 2006, entitled "Community West Bancshares Posts 21% Pretax Profit Increase for 2006 Q3 and 22% Increase for 2006 Nine-Month Period" SIGNATURES Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 24, 2006 COMMUNITY WEST BANCSHARES By: /s/Charles G. Baltuskonis ------------------------- Charles G. Baltuskonis Executive Vice President and Chief Financial Officer EX-99.1 2 ex99_1.txt EXHIBIT 99.1 ------------------ EXHIBIT 99.1 ------------------ 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 - --------------------- 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 - ---------------------------- 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 ----------------- ------------------ ---------------- ----------------- 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 ----------------- ------------------ ---------------- ----------------- 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 *************************************************************************************** Selected average balance sheet items - ------------------------------------ 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 --------------- -------------- 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 --------------- -------------- Held for investment 365,400 324,965 Less: Allowance (3,898) (3,954) --------------- -------------- Net held for investment 361,502 321,011 --------------- -------------- NET LOANS 427,131 381,517 --------------- -------------- Other assets 18,089 17,277 --------------- -------------- TOTAL ASSETS $ 498,129 $ 444,354 =============== ============== Deposits $ 361,769 $ 334,238 FHLB advances 85,000 63,500 Other liablities 5,762 4,381 --------------- -------------- TOTAL LIABILITIES 452,531 402,119 Stockholders' equity 45,598 42,235 --------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 498,129 $ 444,354 =============== ============== Shares outstanding 5,792,818 5,751,313 Book value per share $ 7.87 $ 7.34 ****************************************************************************************** Nonaccrual loans $ 5,683 $ 6,797 SBA guaranteed portion (3,365) (4,332) --------------- -------------- Nonaccrual loans, net $ 2,318 $ 2,465 =============== ==============
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