| Over a month ago | ||||
On March 19, 2020,… On March 19, 2020, Governor Newsom of California issued a state-wide Shelter-in-Place order for all of its residents, resulting in the closing of non-essential businesses or a substantial reduction in business activity. Essential purpose entities such as food and agriculture businesses, medical professionals, transportation, and banks were exempted from the closures; unemployment rates are increasing in our local markets. The sectors that have been most heavily impacted include hospitality, restaurants, shops, salons and other business that are shut down by state and local order. The Company's management team has evaluated its exposure to loans related to this pandemic and at March 31, 2020, the Bank's exposure as a percent of the total loan portfolio to these industries was approximately 12%. The Company is actively monitoring the effects of the COVID-19 pandemic on our loan and deposit customers. We are focused on assessing the risks in our loan portfolio and working with our customers to minimize losses. We have implemented loan programs to allow our clients who were directly impacted by the pandemic to defer loan payments for up to 180 days. As of March 31, 2020, loan customer requests to defer payments on loans totaling approximately $76 million were received. Congress passed the Coronavirus Aid, Relief, and Economic Security Act providing economic relief for the country, including the $349 billion Small Business Administration Paycheck Protection Program to fund short-term loans for small businesses. As a preferred SBA lender, we have been actively taking loan applications under the PPP for our business clients. We will continue to respond with client-focused employees and assist our customers with their financial needs during this difficult time. The Company began taking loan applications from its eligible business clients immediately after the program was up and running. To date, the Company has received client applications of approximately $62 million, and is working diligently with the SBA to qualify clients to receive PPP loans, and as of April 17, 2020 had $44 million in approved SBA PPP loans. Management is closely monitoring credit metrics and performing stress testing on the Bank's loan portfolio. In addition, resources have been reallocated to credit administration to closely analyze higher risk segments within our portfolio, monitor and track loan payment deferrals and customer liquidity, and provide timely reporting to the board of directors and management. The management team continues to analyze economic conditions in the markets we serve. Based on the Company's capital levels, current economic climate, and underwriting policies management expects to be able to manage the economic risks and uncertainties associated with the COVID-19 pandemic and remain adequately capitalized. In an effort to be conservative, the Company drew down $10 million on its line of credit that can be down streamed to the Bank as additional capital if needed in the future. | ||||
The Company did not… The Company did not repurchase shares during the first quarter of 2020, leaving $1.4 million available under the previously announced repurchase program. The Company has suspended its repurchase program until further notice. | ||||
Book value per common… Book value per common share increased to $9.82 at March 31, 2020, compared to $9.68 at December 31, 2019, and $9.05 at March 31, 2019. Total risked based capital improved to 11.60% for the Bank at March 31, 2020 compared to 11.41% at December 31, 2019 and 10.76% at March 31, 2019. "What began as a quarter with good momentum, has been disrupted by a global health crisis that set off an economic crisis which is now our highest priority. Community West Bank put its pandemic plan into action in mid-March to adjust to the potential impact of the COVID-19 virus pandemic on our employees, customers and our communities. Notwithstanding the impact of COVID-19, our first quarter 2020 earnings were solid, supported by net interest income expansion compared to a year ago and improved operating efficiencies," stated Martin Plourd, President and CEO. "We began preparations for the COVID-19 pandemic in mid-February by putting together a Task Force, comprised of the executive team and department managers who are directing operations during the pandemic to protect the safety of customers and employees as much as possible. We have kept branch lobbies open, implementing new safety measures commensurate with World Health Organization, Centers for Disease Control, and government orders to protect our customers and employees and keep them safe. Currently approximately 45% of our employees are working remotely and it's been business as usual from an operational standpoint. Our lending teams have reached out to all borrowers to determine the impact of the decline in economic activity on their business, focusing specifically on customers that may have difficulty re-opening their businesses with sufficient cash flow. While our asset quality at quarter end remained strong, we are being proactive in our approach to the COVID-19 pandemic and its impact on Ventura, Santa Barbara and San Luis Obispo counties. We are here for our clients assisting them by maintaining service inside our branches and through digital and electronic channels all while adhering to State and Federal guidelines which are changing rapidly." | ||||