Community West Bancshares said third quarter net income was $1.5 million, up from $1.1 million in the second quarter and on pace with year-earlier earnings.
For the nine months ended Sept. 30, the bank reported net income of $3.9 million versus $1 million for the prior year; loans grew 12.9 percent to $601.9 million on Sept. 30 versus $533 million a year earlier.
“Community West’s third quarter results were fueled by robust loan growth, continued improvements in credit quality and a healthy net interest margin,” said Community West President and CEO Marty Plourd in a statement.
The Goleta-based parent of Community West Bank is mounting a bit of an expansion in the Central Coast with a new branch in San Luis Obispo later this year and the relocation of its Santa Maria branch in early 2017. Earnings per share were 18 cents for the quarter unchanged from Q3 results from 2015.
The 2015 nine-month results were impacted by a litigation settlement; without the settlement net income would have been $5.2 million. In the 2016 period, the bank benefited from a 42.8 percent decline in nonaccrual loans, which are at the lowest level since 2007.
Community West has declared a dividend of 3.5 cents per share payable Nov. 30 to shareholders of record on Nov. 14 and has authorized the repurchase of up to $3 million of its common stock. The bank was named one of Sandler O’Neill & Partners small capitalization bank “All Stars” for 2016.
• Contact Henry Dubroff at [email protected]