Community West Bancshares in Goleta, Calif., which has been hampered by loan securitization problems, reported Monday that it lost $1.65 million in 1999 and that it has revised its 1998 earnings downward 84%.The $325 million-asset company was on its way to record earnings in 1999. Then the Office of the Comptroller of the Currency found last fall that its lead subsidiary, Goleta National Bank, had miscalculated its Tier 1 capital in connection with two loan securitizations, completed in the fourth quarter of 1998 and the second quarter of last year. That left Community West "significantly undercapitalized," the OCC said.
Community West, the holding company of Palomar Community Bank in Escondido, Calif., initially reported that its 1998 earnings were a record $2.9 million. It now says it earned just $454,000.