Income grows at Community West Bank as PPP loans phase out
Net income for Goleta-based Community West Bancshares increased more than 31% for the quarter ended March 31, to $4 million, or 45 cents per diluted share, the company announced April 29.
The holding company for Community West Bank reported net income of $3 million, or 35 cents per diluted share, for the same period last year.
The company attributed the increase in earnings during the first quarter of 2022 to a $549,000 tax-exempt payout on a bank-owned life insurance policy and collection and legal expense recovery of $992,000 as a result of a legal settlement, the company said in its earnings release.
Results for the first quarter of 2022 reflect lower interest and fees on Small Business Administration Paycheck Protection Program loans compared to the previous quarter and the previous year, due to slowing PPP loan forgiveness as the program nears its conclusion, the earnings release said.
Non-interest-bearing demand deposits rose to $226.1 million, compared to $196.6 million a year before.
Community West “generated solid earnings for the first quarter, highlighted by top-and bottom-line revenue growth, steady year-over-year deposit growth and improved operating efficiencies,” President and CEO Martin Plourd said in a statement. “Return on average assets, return on average common equity and our efficiency ratio all improved as we continue to deepen our presence throughout California’s Central Coast.”
Net interest margin was 3.86% for the first quarter, compared with 4.19% in the first quarter a year earlier. Net interest margin “improved on a linked quarter basis, primarily due to higher yields on interest earning assets,” Plourd said.
Community West’s board of directors also declared a quarterly cash dividend of 7.5 cents per common share, payable May 31 to common shareholders of record on May 13.