Community West Bancshares (CWBC, Financial) filed Quarterly Report for the period ended 2010-06-30.
Community West Bancshares has a market cap of $15.6 million; its shares were traded at around $2.64 with and P/S ratio of 0.3.
On May 4, 2010, the Company announced its intention to offer $8.0 million, and up to $8.8 million with oversubscription privileges, of convertible subordinated debentures. The offering closed on August 9, 2010 with subscriptions of $8.1 million. The debentures pay interest at 9% until conversion, redemption or maturity and will mature on August 9, 2020. The debentures may be redeemed by the Company after January 1, 2014. Prior to maturity or redemption, the debentures can be converted into common stock at $3.50 per share if converted prior to July 1, 2013, $4.50 per share between July 2, 2013 and July 1, 2016 and $6.00 per share from July 2, 2016 until maturity or redemption.
Net interest income increased by $997,000 for 2Q10 compared to 2Q09. Total interest income declined by $497,000. Average interest earning assets experienced a moderate decline of $13.0 million for 2Q10 compared to 2Q09 along with a lower yield of 6.0% compared to 6.18% for 2Q09. The decline in interest income was offset by a reduction in interest expense of $1.5 million from $4.0 million for 2Q09 to $2.5 million for 2Q10. Rates paid on interest bearing liabilities dropped from 2.77% for 2Q09 to 1.73% for 2Q10, a reduction of 1.04%.
Loans past due over 30 days net of the SBA Guaranteed Portion decreased from $11.6 million at December 31, 2009 to $3.5 million at June 30, 2010. Improvement was noted in the banks level of past dues in the SBA and Manufactured Housing Portfolios.
Included in the Company s held-for-investment portfolio is the category “Other installment” which consists primarily of home equity lines of credit (HELOC) loans. Guidance issued by the SEC characterized these types of loans as higher-risk. The HELOC portfolio of $20.7 million consists of credits secured by residential real estate in Santa Barbara and Ventura counties. In 2Q10, there were $88,000 net charge-offs in this portfolio. As of June 30, 2010, 0.5% of the portfolio is past due and 0.2% is on non-accrual status. The allowance for loan losses for this portfolio is $497,000, or 2.4%. The Company believes that, overall, this portfolio is adequately supported by real estate collateral.
Non-interest expenses remained even at $5.4 million for 2Q10 and 2Q09. Non-interest expenses declined in almost all areas, most significantly in the FDIC assessment, which was higher in 2Q09 due to a special assessment charged by the FDIC. These declines were offset by an increase of $407,000 in losses and write-downs of foreclosed real estate and repossessed assets.
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Community West Bancshares has a market cap of $15.6 million; its shares were traded at around $2.64 with and P/S ratio of 0.3.
Highlight of Business Operations:
For 2Q10, net loss was $62,000 compared to net income of $800,000 for 2Q09.On May 4, 2010, the Company announced its intention to offer $8.0 million, and up to $8.8 million with oversubscription privileges, of convertible subordinated debentures. The offering closed on August 9, 2010 with subscriptions of $8.1 million. The debentures pay interest at 9% until conversion, redemption or maturity and will mature on August 9, 2020. The debentures may be redeemed by the Company after January 1, 2014. Prior to maturity or redemption, the debentures can be converted into common stock at $3.50 per share if converted prior to July 1, 2013, $4.50 per share between July 2, 2013 and July 1, 2016 and $6.00 per share from July 2, 2016 until maturity or redemption.
Net interest income increased by $997,000 for 2Q10 compared to 2Q09. Total interest income declined by $497,000. Average interest earning assets experienced a moderate decline of $13.0 million for 2Q10 compared to 2Q09 along with a lower yield of 6.0% compared to 6.18% for 2Q09. The decline in interest income was offset by a reduction in interest expense of $1.5 million from $4.0 million for 2Q09 to $2.5 million for 2Q10. Rates paid on interest bearing liabilities dropped from 2.77% for 2Q09 to 1.73% for 2Q10, a reduction of 1.04%.
Loans past due over 30 days net of the SBA Guaranteed Portion decreased from $11.6 million at December 31, 2009 to $3.5 million at June 30, 2010. Improvement was noted in the banks level of past dues in the SBA and Manufactured Housing Portfolios.
Included in the Company s held-for-investment portfolio is the category “Other installment” which consists primarily of home equity lines of credit (HELOC) loans. Guidance issued by the SEC characterized these types of loans as higher-risk. The HELOC portfolio of $20.7 million consists of credits secured by residential real estate in Santa Barbara and Ventura counties. In 2Q10, there were $88,000 net charge-offs in this portfolio. As of June 30, 2010, 0.5% of the portfolio is past due and 0.2% is on non-accrual status. The allowance for loan losses for this portfolio is $497,000, or 2.4%. The Company believes that, overall, this portfolio is adequately supported by real estate collateral.
Non-interest expenses remained even at $5.4 million for 2Q10 and 2Q09. Non-interest expenses declined in almost all areas, most significantly in the FDIC assessment, which was higher in 2Q09 due to a special assessment charged by the FDIC. These declines were offset by an increase of $407,000 in losses and write-downs of foreclosed real estate and repossessed assets.
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