Community West reports earnings decline as PPP loans wind down
Goleta-based Community West Bank reported a drop in net income in its most recent quarter, as the federal Paycheck Protection Program wound down.
Community West Bancshares, the bank’s holding company, released its earnings report for the second quarter of 2022 before the markets opened July 29. Its net income for the quarter was $2.6 million, or 30 cents per diluted share, down from $3.6 million, or 41 cents per diluted share, for the second quarter of 2021. Net income was also down from the previous quarter, when it was $4 million, or 45 cents per diluted share.
For the first half of 2022, the bank reported net income of $6.6 million, or 74 cents per share, the same as its income in the first half of 2021.
“Results for the second quarter of 2022 compared to the year-ago quarter reflect lower interest rates and fees on Small Business Administration Paycheck Protection Program loans, due to lower PPP loan forgiveness as the program nears its conclusion,” the bank said in a news release.
In the most recent quarter, the bank had $146,000 in PPP interest and fees, compared to $1.1 million in the same quarter of 2021.
Community West reported total assets of $1.11 billion as of June 30, up 4.1% from a year earlier but down 2.6% from the end of the first quarter on March 31.
Community West Bank is one of four banks based in the tri-county region. With seven branches from Ventura to Paso Robles, it is the second largest of those banks.