Incomes Rise in West Bank Community as PPP Loans End
Monday, May 2, 2022
Goleta-based Community West Bancshares’ net profit rose more than 31% for the quarter ended March 31 to $4 million, or 45 cents per diluted share, the company said April 29.
Community West Bank‘s holding company reported net income of $3 million, or 35 cents per diluted share, for the same period last year.
The company attributed the increase in profits in the first quarter of 2022 to a tax-exempt payment of $549,000 on a bank-owned life insurance policy and the collection and recovery of legal fees from $992,000 following a legal settlement, the company said in its results. Release.
First-quarter 2022 results reflect lower interest and fees on Small Business Administration Paycheck Protection Program loans from the prior quarter and the prior year, due to a slowdown in the economy. cancellation of PPP loans as program draws to a close, according to press release.
Non-interest bearing demand deposits reached $226.1 million, compared to $196.6 million a year earlier.
Community West “produced strong first quarter earnings, highlighted by revenue growth in top line and net income, consistent year-over-year growth in deposits and improved operational efficiency,” President and CEO Martin Plourd said in a statement. “Return on average assets, return on average equity and our efficiency ratio have all improved as we continue to deepen our presence in California’s central coast.”
The net interest margin was 3.86% in the first quarter, compared to 4.19% in the first quarter of the previous year. Net interest margin “improved on a linked quarterly basis, primarily due to higher yields on interest-bearing 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 May 13.