CWBC
5.5 mm shs/2.80 mm shs float
18% net profit margins
15% ROE
34 million MCAP
This is a small bank with a big emphasis on
i-net related services for fee income
vs an emphasis on interest income .. very
unusual business plan for a small bank ..
I think they can pull it off ..
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Monday April 12, 9:36 am Eastern Time
Company Press Release
First-Quarter Earnings Increase 90.6
Percent at Community West
Bancshares
GOLETA, Calif.--(BUSINESS WIRE)--April 12, 1999--Lew
Stone, president and chief executive officer of Community West Bancshares, announced record
first-quarter 1999 earnings for the company and its subsidiaries.
Net income for the quarter ended March 31, 1999, was $1,056,000, or 90.6 percent above the
$554,000 reported for 1998, after restating all periods to give effect to the acquisition of Palomar
Savings, which was accounted for as a pooling of interests. Diluted earnings per share for the 1999
first quarter were $0.19 vs. $0.09 for the same period of 1998, an increase of 111 percent.
Stone said, ''As everyone knows, we had record earnings for the year ended Dec. 31, 1998. But
last year we also invested heavily in the development of products and services, and establishing
offices in new geographic locations. Those investments are just now beginning to pay off, and should
continue to do so for the foreseeable future.''
Stone continued: ''In the e-commerce arena, the company continues to expand. Our subsidiary,
Electronic Paycheck, expanded its proprietary software capabilities so that its pay card may be used
in multiple industries around the world. Community West will also introduce its AccessWest Internet
banking solution during the second quarter of this year.
''All of our offices nationwide are tied together using Web-based technology. Our cash-management
system has been migrated to a Windows-based platform. Our commitment to technology
improvements will continue.''
Community West Bancshares, as both a technology and financial services company, is unique in that
it has developed profit centers that generate significant noninterest income. The profit centers include
SBA lending, first and second mortgage lending, accounts receivable financing, Electronic Paycheck
and other electronic banking products.
During the first quarter of 1999, the company originated more than $235 million in loans, most of
which were sold in the secondary market or were slated to be formed into a security. Stone said,
''We have diversified our income sources in order to help insulate the company from changes in
interest rates.''
Total assets of the company increased 44.1 percent from $217,288,000 at March 31, 1998, to
$313,041,000 at March 31, 1999. During the same period, loans and deposits increased 63.2
percent and 51.3 percent, respectively.
The company has an ongoing stock repurchase plan. As of March 31, 1999, the company had
repurchased approximately 130,000 shares of its stock. In addition, the company previously
announced a $0.04 per share quarterly cash dividend to be paid on April 26, 1999, to shareholders
of record on April 12, 1999.
Community West Bancshares is a technology and financial services company with headquarters in
Goleta. Goleta National Bank, subsidiary of the company, has two full-service branches, one in
Goleta and one in Ventura, Calif., and loan production offices located in Alabama, California,
Florida, Georgia and Nevada.
In addition, Goleta National Bank is majority owner of Electronic Paycheck LLC. Palomar Savings
& Loan Association, subsidiary of the company, has two full-service branches and a loan production
office, all located in Escondido, Calif.
This release contains forward-looking statements that reflect management's current views of future
events and operations. These forward-looking statements are based on information currently
available to the company as of the date of this release. It is important to note that these
forward-looking statements are not guarantees of future performance and involve risks and
uncertainties, including but not limited to, the ability of the company to implement its technology
strategy, originate loans for sale and securitization, continue to pay dividends, and economic events
that may affect income. The company's actual results may differ materially from those in the
forward-looking statements as a result of various important factors, including general economic
conditions and ''Competition'' as described in the company's Form 10-K for the year ended Dec.
31, 1998.
-0-
The following represents comparative information:
March 31, 1999 Dec. 31, 1998
Total loans $266,702,000 $165,893,000
Total deposits 283,498,000 223,545,000
Total equity 24,339,000 24,553,000
Total assets 313,041,000 253,034,000
Quarter ended: March 31, 1999 March 31, 1998
Net interest income,
after provision 2,897,000 1,818,000
Other income 5,061,000 3,093,000
Other expense 6,149,000 4,040,000
Income taxes 753,000 317,000
Net income 1,056,000 554,000
Basic EPS $0.20 $0.10
Diluted EPS $0.19 $0.09
Weighted shares -- basic 5,394,833 5,255,391
Weighted shares -- diluted 5,544,933 5,936,283
Contact:
Community West Bancshares, Goleta
Randy Shaffer, 805/692-1862, 805/692-8902 (fax)
communitywest.com
EOM ---------------------------------------------------------------
Jim in CT ..
Also check this subsidiary out ....
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Monday March 29, 9:08 am Eastern Time
Company Press Release
Community West Bancshares
Electronic Subsidiary Expands Product
Line
GOLETA, Calif.--(BUSINESS WIRE)--March 29, 1999--Lew
Stone, president & chief executive officer of Community West Bancshares, announced the
expansion of products by its subsidiary, Electronic Paycheck, LLC.
Electronic Paycheck, purchased by the company in late 1997, developed proprietary software,
known as Oktopus and based on internet protocol, which allowed employers to pay their employees
electronically by way of the Electronic Paycheck Card, even if the employees didn't have bank
accounts. In this way, employees without bank accounts could have access to their pay at ATMs
and point-of-sale terminals around the world. The card also gives people who currently do not have
banking relationships an inexpensive way to move away from the all-cash environment. The card is
currently being used to pay employees in the agricultural, manufacturing, and cruise line industries.
Stone said, ''We originally envisioned the card only as a way to address the needs of the unbanked
across the country. However, as the software has been developed, many other uses have arisen.''
In addition to payroll, the card may be used by companies as an alternative to cash travel advances,
or to pay commissions or other payments to agents in industries such as network marketing, or
companies that have representatives traveling internationally.
Check cashing stations around the country now have the option of issuing cash cards to their
customers instead of cash. Their customers who traditionally do not have bank accounts, have the
added security of not having to carry cash with them at all times. And people needing money transfer
services can obtain a second card which they can send to their family or friends to be used for
withdrawals at ATMs worldwide. These easy and secure transactions result in dramatic savings to
the card user in wire transfer fees and potential foreign exchange costs. Companies which provide
short term payday loans are now using the cards to fund loans with electronic funds rather than by
check. This saves the costs associated with paper checks.
The various card uses also allow companies to issue their own branded card. This feature is of
particular interest to larger companies which have the potential of issuing thousands of cards.
As part of the payroll card development for the cruise line industry, Electronic Paycheck has
developed a first-of-its-kind kiosk to be used on-board ships which allow onboard deposits,
integrated money transfers, and the printing of remote statements. This kiosk was recently premiered
to cruise line executives at the Sea Trade 99 Show in Miami.
The company earns revenues at the time the card is issued, as cash is added to the card, and
whenever the card is used. Stone said, ''The development of the concept has been slow, because of
the necessity of building the required security and reliability into the system. However, as evidenced
by the interest in the many card uses, we believe the potential growth in cards issued and used can
be explosive, and we are uniquely positioned to capture a significant share of the market as it
develops.''
Community West Bancshares is a financial services company with headquarters in Goleta. The
company has three subsidiaries, Goleta National Bank, Palomar Savings, and Electronic Paycheck,
LLC.
This release contains forward-looking statements which reflect management's current views of future
events and operations. These forward-looking statements are based on information currently
available to the company as of the date of this release. It is important to note that these
forward-looking statements are not guarantees of future performance and involve risks and
uncertainties, including, but not limited to, the successful marketing of the Electronic Paycheck
concept and the acceptance of its use by cardholders. In addition, as competition develops, fees
collected for issuance and usage may be less than currently expected. The company's actual results
may differ materially from those in the forward-looking statements as a result of various important
factors, including general economic conditions and ''Competition'' as described in the company's
Form 10-K for the year ended Dec. 31, 1997.
Contact:
Community West Bancshares, Goleta
Randy Shaffer, 805/692-1862
fax, 805/692-8902
communitywest.com
EOM----------------------------------------------------------------
Jim in CT ..
In CWBC and FSFH
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