By Jorge Mercado Friday, February 3rd, 2023

Community West Bancshares reported a record net income of $13.4 million or $1.51 per share in fiscal year 2022, the firm said in its earnings announcement on Jan. 27.

The company’s board of directors also declared an increase of its quarterly cash dividend by 6.7% to $0.08 per common share, payable on Feb. 28 to common shareholders of record as of Feb. 10.

During the fourth quarter, Community West generated net income worth $3.4 million or $0.38 per diluted share.

This comes in slightly lower than the net income of $3.5 million or $0.39 per diluted share generated in the third quarter of 2022 but higher than the net income of $2.9 million or $0.33 per diluted share seen in the fourth quarter of 2021.

Community West Bancshares, the holding company for Community West Bank, is based in Goleta. CWBC is the largest publicly traded community bank serving California’s Central Coast. 

For the full year, Community West Bancshares reported

“We delivered excellent fourth-quarter results, a record full year 2022 earnings, highlighted by strong organic loan growth, steady loan production and continued net interest margin expansion,” said Martin E. Plourd, president and CEO of CWBC in a press release.

He credited the overall year’s movements on the deployment of excess liquidity through increased lending activity resulting in solid organic loan growth.

Non-interest-bearing demand deposits decreased by $26.6 million to $216.5 at the end of the fourth quarter as compared to $243.1 million at the end of the third quarter, but increased $6.6 million compared to $209.9 million for the fourth quarter of 2021.

Net interest margin improved by 4.58% for the fourth quarter of 2022 in comparison to 4.39% in the third quarter of 2022 and 3.77% in the fourth quarter of 2021.

“Our fourth quarter net interest margin continued to benefit from higher loan yields, as new loans that carry a higher interest rate are replacing lower rate PPP loans, and existing variable rate loans continue to reprice,” said Richard Pimentel, CFO of CWBC.

“Our outlook for 2023 remains cautious, as we anticipate a leaner loan pipeline, as recessionary concerns continue, and deposit pricing pressures persist.”