Community West Bancshares Earns $3.5 Million, or $0.39 Per Diluted Share, in Third Quarter 2022; Declares Quarterly Cash Dividend of $0.075 Per Common Share

Community West Bancshares

GOLETA, Calif., Oct. 28, 2022 (GLOBE NEWSWIRE) -- Community West Bancshares (“Community West” or the “Company”), (NASDAQ: CWBC), parent company of Community West Bank (the “Bank”), today reported net income of $3.5 million, or $0.39 per diluted share, for the third quarter of 2022, compared to $2.6 million, or $0.30 diluted share, for the preceding quarter, and $3.6 million, or $0.41 per diluted share, for the third quarter of 2021. For the first nine months of 2022, the Company reported net income of $10.1 million, or $1.13 per diluted share, compared to $10.2 million, or $1.17 per diluted share, for the first nine months of 2021.

Earnings for the third quarter of 2022 were impacted by a one-time $132,000 recovery related to a prior OREO expense, and a $298,000 provision expense for loan losses. This compared to a $252,000 provision expense recorded during the preceding quarter.

The Company’s Board of Directors declared a quarterly cash dividend of $0.075 per common share, payable November 30, 2022, to common shareholders of record on November 14, 2022.

“Our third quarter operating results reflect strong growth in the loan portfolio and continued net interest margin expansion,” stated Martin E. Plourd, President & Chief Executive Officer of Community West Bancshares. “Loan growth has really started to materialize, with total loans increasing 3.6% during the quarter, or 14.5% annually, primarily reflecting increases in the C&I, commercial real estate and manufactured housing portfolios. Additionally, our net interest margin improved substantially on a linked quarter basis, improving 38 basis points to 4.39%, as we took advantage of interest rate increases enacted by the Federal Reserve and invested cash balances into higher yielding loans and securities. We remain well positioned for additional rising interest rates, which should allow us to maintain our strong net interest margin, and ample on-balance sheet liquidity to support loan demand and temper rising deposit costs.”

Third Quarter 2022 Financial Highlights:

• Net income was $3.5 million, or $0.39 per diluted share in the third quarter 2022, compared to $2.6 million, or $0.30 per diluted share in second quarter 2022, and $3.6 million, or $0.41 per diluted share in third quarter 2021.

• Net interest income increased to $11.9 million for third quarter 2022, compared to $11.0 million in second quarter 2022 and $10.9 million in third quarter 2021.

• Net interest margin improved to 4.39% for the third quarter 2022, compared to 4.01% in second quarter 2022, and 3.97% in third quarter 2021.

• Return on average assets was 1.25% for the third quarter 2022, compared to 0.93% in second quarter 2022, and 1.28% in third quarter 2021.

• Return on average equity was 12.65% for the third quarter 2022, compared to 9.92% in second quarter 2022, and 14.77% in third quarter 2021.

• The Company recorded a provision for loan losses of $298,000 for third quarter 2022, compared to a provision of $252,000 for second quarter 2022, and a provision of $7,000 for third quarter 2021.

• The Allowance for Loan Losses (“ALL”) was 1.20% of total loans held for investment at September 30, 2022, compared to 1.22% at June 30, 2022, and 1.19% at September 30, 2021.

• Net non-accrual loans improved to $239,000 at September 30, 2022, compared to $379,000 at June 30, 2022, and $1.7 million at September 30, 2021.

• Total loans increased by $33.0 million to $945.7 million at September 30, 2022, compared to $912.7 million, at June 30, 2022, and increased $55.1 million compared to $890.6 million, at September 30, 2021.

• Stockholders’ equity increased $2.7 million to $109.8 million at September 30, 2022, compared to $107.1 million at June 30, 2022, and $98.8 million at September 30, 2021. During the quarter, the Company had a $307,000 increase in Accumulated Other Comprehensive Income (“AOCI”) related to an increase in the unrealized loss on available for sale securities reflecting the increase in market interest rates during the quarter.

• Non-interest-bearing demand deposits increased $6.4 million to $243.1 million at September 30, 2022, compared to $236.7 million at June 30, 2022, and increased $23.3 million compared to $219.8 million at September 30, 2021.

• Book value per common share increased to $12.54 at September 30, 2022, compared to $12.25 at June 30, 2022, and $11.46 at September 30, 2021.

• The Bank’s Tier 1 leverage ratio was 9.83% at September 30, 2022, compared to 9.30% at June 30, 2022, and 8.59% at September 30, 2021.
  

Income Statement

Net interest income increased 8.3% to $11.9 million in the third quarter 2022, compared to $11.0 million in the preceding quarter and increased 9.1% compared to $10.9 million in third quarter 2021. Interest income from loans increased 6.6% or $738,000 compared to the prior quarter due to increased average balances and loan yields. Interest income from securities and interest-earning deposits increased 36.4% or $210,000 compared to the prior quarter primarily due to increased average security balances and higher earning-deposit yields because of increased market rates. Total interest expense for the quarter increased 5.00% or $35,000 compared to the prior quarter due to increased rates on interest-bearing demand deposits.

Net interest margin was 4.39% for third quarter 2022, a 38 basis point increase compared to second quarter 2022, and a 42 basis point increase compared to third quarter 2021. “Our net interest margin for the third quarter benefitted from strong net interest income generation, solid loan growth and rising interest rates. New loans that carry a higher interest rate are replacing lower rate PPP loans, which is helping our net interest margin,” said Richard Pimentel, Chief Financial Officer. The yield on loans for the third quarter 2022 increased 11 basis points to 5.03% compared to 4.92% for the second 2022 quarter because of increased loan rates on new originations and the impact of higher market rates. The yield on federal funds and interest-earning deposits increased 128 bps to 2.09% for the third quarter 2022 due to increases in rates earned for overnight deposits and rates money market deposits. The cost of funds for the third quarter increased 2 basis points to 0.30%, compared to 0.28% for the preceding quarter due to changes in portfolio mix.

Non-interest income for the third quarter 2022 decreased $179,000 to $872,000 compared to $1.1 million in second quarter 2022 as a result of lower loan fees and less gain-on-sale of loans. Other loan fees were $292,000 for the third quarter 2022 compared to $377,000 in second quarter 2022. Gain on sale of loans was $49,000 in the third quarter 2022 compared to $136,000 in the second quarter of 2022 as a result of less sales during the quarter. Non-interest income increased 14.4% to $3.2 million in the first nine months of 2022 compared to $2.8 million in the first nine months of 2021. The increase was primarily due to a $549,000 BOLI policy payout and a $992,000 recapture of expenses from a lawsuit settlement related to a foreclosed asset during the first quarter of 2022.

Non-interest expense decreased $502,000 to $7.6 million in third quarter 2022 compared to $8.1 million in the second quarter of 2022 primarily due to lower salaries and benefits and reductions in all other expense. Salaries and employee benefits decreased $158,000 compared to second quarter 2022 due to lower costs related to vacation, procurement, contract labor and employee relations expense. Other non-interest expense decreased $283,000 compared to the second quarter due to lower OREO expense.

Balance Sheet

Total assets decreased $18.6 million, or 1.7%, to $1.09 billion at September 30, 2022, compared to $1.11 billion, at June 30, 2022, and decreased $47.3 million, or 4.2%, compared to $1.14 billion, at September 30, 2021. Total interest-earning deposits in other financial institutions decreased $50.4 million to $49.5 million at September 30, 2022, compared to June 30, 2022, as excess cash balances were deployed into higher yielding loans. Total investment securities were $59.9 million at quarter end, compared to $60.5 million in the prior quarter. Total loans increased by $33.0 million, or 3.6%, to $945.7 million at September 30, 2022, compared to $912.7 million, at June 30, 2022, and increased $55.1 million, or 6.2%, compared to $890.6 million, at September 30, 2021. Total loans, excluding PPP loans, increased $34.1 million during the quarter and increased $89.4 million compared to September 30, 2021.

Commercial real estate loans outstanding (which include SBA 504, construction and land) were up 15.0% from year ago levels to $544.4 million at September 30, 2022, and comprise 57.6% of the total loan portfolio. Manufactured housing loans were up 6.0% from year ago levels to $310.0 million and represent 32.8% of total loans. Commercial loans (which include agriculture loans) were up 6.1% from year ago levels to $70.8 million and represent 7.5% of the total loan portfolio. As of September 30, 2022, the Company had seven PPP loans totaling $1.8 million remaining on its balance sheet from both the first and second rounds of PPP funding. PPP loans of $1.8 million represent less than one percent of total loans at September 30, 2022, down from $2.9 million at June 30, 2022, and $36.1 million at September 30, 2021.

Total deposits decreased $42.5 million, or 4.7%, to $852.2 million at September 30, 2022, compared to $894.7 million at June 30, 2022, and decreased $79.8 million, or 8.6%, compared to $931.9 million at September 30, 2021. Non-interest-bearing demand deposits were $243.1 million at September 30, 2022, a $6.4 million increase compared to $236.7 million at June 30, 2022, and a $23.3 million increase compared to $219.8 million at September 30, 2021. Higher cost interest-bearing demand deposits decreased $36.4 million to $439.5 million at September 30, 2022, compared to $475.9 million at June 30, 2022, and decreased $68.6 million compared to $508.0 million at September 30, 2021. Certificates of deposit, which include brokered deposits, decreased $10.7 million during the quarter to $145.8 million at September 30, 2022, compared to $156.5 million at June 30, 2022, and decreased $37.1 million compared to $182.9 million at September 30, 2021.

Stockholders’ equity increased to $109.8 million at September 30, 2022, compared to $107.1 million at June 30, 2022, and $98.8 million at September 30, 2021. Book value per common share increased to $12.54 at September 30, 2022, compared to $12.25 at June 30, 2022, and $11.46 at September 30, 2021.

Credit Quality

“Credit quality metrics continue to improve, with a substantial decrease in net-nonaccrual loans compared to a year ago,” said William F. Filippin, Chief Credit Officer. At September 30, 2022, asset quality reflected improvement due to positive loan risk rating migrations during the third quarter. Total classified loans and net non-accrual loans decreased year-over-year due to improvements in the loan portfolio and payoffs in these categories. All loans rated “Watch” or worse are monitored monthly and proactive measures are taken when any signs of deterioration to the credit are discovered.

The Company recorded a provision expense of $298,000 in the third quarter 2022, compared to a provision expense of $252,000 in second quarter 2022, and a provision expense of $7,000 in third quarter 2021. The allowance for loan losses was $11.1 million, or 1.20% of total loans held for investment, at September 30, 2022. Net non-accrual loans, plus net other assets acquired through foreclosure, decreased 5.3% to $2.5 million at September 30, 2022, compared to $2.6 million at June 30, 2022, and decreased 42.3% compared to $4.3 million at September 30, 2021.

Net non-accrual loans improved substantially to $239,000 as of September 30, 2022, compared to $379,000 at June 30, 2022, and $1.7 million at September 30, 2021. Of the $239,000 of net non-accrual loans at September 30, 2022, $153,000 were single family loans and $85,000 were manufactured housing loans.

There was $2.3 million in other assets acquired through foreclosure as of September 30, 2022, and at June 30, 2022. This compared to $2.6 million at September 30, 2021. The OREO balance relates to one property in the net amount of $2.3 million.

Stock Repurchase Program

On August 27, 2021, the Company announced that its Board of Directors had extended the stock repurchase plan until August 31, 2023. The Company did not repurchase shares during the third quarter of 2022, leaving $1.4 million available under the previously announced repurchase program.

Company Overview

Community West Bancshares is a financial services company with headquarters in Goleta, California. The Company is the holding company for Community West Bank, the largest publicly traded community bank serving California’s Central Coast area of Ventura, Santa Barbara and San Luis Obispo counties. Community West Bank has seven full-service California branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard and Paso Robles. The principal business activities of the Company are Relationship Banking, Manufactured Housing lending and Government Guaranteed lending.

Industry Accolades

In May of 2022, Community West was ranked #125 on the American Banker Magazine’s list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity as of December 31, 2021.

Community West Bank was awarded a “Super Premier Performance” rating by The Findley Reports. For 52 years, The Findley Reports has been recognizing the financial performance of banking institutions in California and the Western United States. Community West Bank is rated 5-star Superior by Bauer Financial.

Safe Harbor Disclosure

This release contains certain forward-looking statements about the Company and the Bank that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements 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 and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, risks from the COVID-19 pandemic, the strength of the United States economy in general and of the local economies in which we conduct operations, the effect of, and changes in, trade, monetary and fiscal policies and laws, including changes in interest rate policies of the Board of Governors of the Federal Reserve System, inflation, weather, natural disasters, climate change, increased unemployment, deterioration in credit quality of our loan portfolio and/or the value of the collateral securing the repayment of those loans, reduction in the value of our investment securities, the costs and effects of litigation and of adverse outcomes of such litigation, the cost and ability to attract and retain key employees, a breach of our operational or security systems, policies or procedures including cyber-attacks on us or third party vendors or service providers, regulatory or legal developments, United States tax policies, including our effective income tax rate, and our ability to implement and execute our business plan and strategy and expand our operations as provided therein. Actual results may differ materially from those set forth or implied in the forward-looking statements as a result of a variety of factors including the risk factors contained in documents filed by the Company with the Securities and Exchange Commission and are available in the “Investor Relations” section of our website, https://www.communitywest.com/sec-filings/documents/default.aspx. The Company is under no obligation (and expressly disclaims any obligation) to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except per share data)
	September 30,				June 30,				March 31,				September 30,
	2022				2022				2022				2021
Cash and cash equivalents	$	1,806			$	2,361			$	2,043			$	2,129
Interest-earning deposits in other financial institutions		49,489				99,915				191,145				184,806
Investment securities		59,909				60,513				21,805				23,608
Loans:
Commercial		70,811				67,681				70,480				66,713
Commercial real estate		544,373				516,514				492,181				473,338
SBA		6,955				7,922				8,403				9,589
Paycheck Protection Program (PPP)		1,810				2,920				7,504				36,109
Manufactured housing		309,989				305,749				299,969				292,476
Single family real estate		8,943				9,038				8,824				8,659
HELOC		3,373				3,380				3,475				3,717
Other (1)		(560	)			(532	)			(528	)			(6	)
Total loans		945,694				912,672				890,308				890,595
Loans, net
Held for sale		22,096				23,124				24,193				24,400
Held for investment		923,598				889,548				866,115				866,195
Less: Allowance for loan losses		(11,113	)			(10,866	)			(10,547	)			(10,283	)
Net held for investment		912,485				878,682				855,568				855,912
NET LOANS		934,581				901,806				879,761				880,312
Other assets		42,493				42,233				41,849				44,735
TOTAL ASSETS	$	1,088,278			$	1,106,828			$	1,136,603			$	1,135,590
Deposits
Non-interest-bearing demand	$	243,100			$	236,696			$	226,073			$	219,826
Interest-bearing demand		439,455				475,869				504,209				508,020
Savings		23,865				25,626				24,239				21,202
Certificates of deposit ($250,000 or more)		9,909				8,688				13,197				15,956
Other certificates of deposit		135,860				147,785				158,022				166,938
Total deposits		852,189				894,664				925,740				931,942
Other borrowings		110,000				90,000				90,000				90,000
Other liabilities		16,268				15,022				16,035				14,881
TOTAL LIABILITIES		978,457				999,686				1,031,775				1,036,823
Stockholders' equity		109,821				107,142				104,828				98,767
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
	$	1,088,278			$	1,106,828			$	1,136,603			$	1,135,590
Common shares outstanding		8,755				8,744				8,682				8,616
Book value per common share	$	12.54			$	12.25			$	12.07			$	11.46
(1) Includes consumer, other loans, securitized loans, and deferred fees

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2022			2021			2022			2021
Interest income
Loans, including fees	$	11,867		$	11,576		$	34,190		$	33,865
Investment securities and other		787			259			1,670			676
Total interest income		12,654			11,835			35,860			34,541
Deposits		528			708			1,598			2,221
Other borrowings		203			198			593			663
Total interest expense		731			906			2,191			2,884
Net interest income		11,923			10,929			33,669			31,657
Provision (credit) for loan losses		298			7			266			(207	)
Net interest income after provision (credit) for loan losses		11,625			10,922			33,403			31,864
Non-interest income
Other loan fees		292			383			915			1,006
Gains from loan sales, net		49			118			245			366
Document processing fees		114			145			337			389
Service charges		114			77			295			218
Other		303			317			1,422			830
Total non-interest income		872			1,040			3,214			2,809
Non-interest expenses
Salaries and employee benefits		4,752			4,478			14,527			13,422
Occupancy, net		1,046			802			3,064			2,361
Professional services		653			434			1,687			1,204
Data processing		302			292			919			964
Depreciation		173			191			535			594
FDIC assessment		131			127			466			339
Advertising and marketing		196			189			687			536
Stock-based compensation		71			63			257			189
Other		286			284			551			780
Total non-interest expenses		7,610			6,860			22,693			20,389
Income before provision for income taxes		4,887			5,102			13,924			14,284
Provision for income taxes		1,409			1,467			3,851			4,077
Net income	$	3,478		$	3,635		$	10,073		$	10,207
Earnings per share:
Basic	$	0.40		$	0.42		$	1.16		$	1.19
Diluted	$	0.39		$	0.41		$	1.13		$	1.17

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
	Three Months Ended
	September 30,			June 30,			March 31,				December 31,			September 30,
	2022			2022			2022				2021			2021
Interest income
Loans, including fees	$	11,867		$	11,129		$	11,194			$	11,258		$	11,576
Investment securities and other		787			577			306				279			259
Total interest income		12,654			11,706			11,500				11,537			11,835
Deposits		528			500			570				614			708
Other borrowings		203			196			194				206			198
Total interest expense		731			696			764				820			906
Net interest income		11,923			11,010			10,736				10,717			10,929
Provision (credit) for loan losses		298			252			(284	)			26			7
Net interest income after provision (credit) for loan losses		11,625			10,758			11,020				10,691			10,922
Non-interest income
Other loan fees		292			377			246				343			383
Gains from loan sales, net		49			136			60				109			118
Document processing fees		114			122			101				123			145
Service charges		114			93			88				84			77
Other		303			323			796				285			317
Total non-interest income		872			1,051			1,291				944			1,040
Non-interest expenses
Salaries and employee benefits		4,752			4,910			4,865				4,884			4,478
Occupancy, net		1,046			1,021			997				893			802
Professional services		653			635			399				441			434
Data processing		302			307			310				251			292
Depreciation		173			179			183				186			191
FDIC assessment		131			164			171				146			127
Advertising and marketing		196			233			258				198			189
Stock-based compensation		71			94			92				129			63
Other		286			569			(304	)			478			284
Total non-interest expenses		7,610			8,112			6,971				7,606			6,860
Income before provision for income taxes		4,887			3,697			5,340				4,029			5,102
Provision for income taxes		1,409			1,062			1,380				1,135			1,467
Net income	$	3,478		$	2,635		$	3,960			$	2,894		$	3,635
Earnings per share:
Basic	$	0.40		$	0.30		$	0.46			$	0.34		$	0.42
Diluted	$	0.39		$	0.30		$	0.45			$	0.33		$	0.41

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2022								June 30, 2022								September 30, 2021
	Average Balance			Interest		Average Yield/Cost			Average Balance			Interest		Average Yield/Cost			Average Balance			Interest		Average Yield/Cost
Interest-Earning Assets
Federal funds sold and interest-earning deposits	$	76,265		$	401	2.09	%		$	149,710		$	302	0.81	%		$	182,182		$	73	0.16	%
Investment securities		65,148			386	2.35	%			45,243			275	2.44	%			27,552			186	2.68	%
Loans (1)		935,169			11,867	5.03	%			907,088			11,129	4.92	%			882,058			11,576	5.21	%
Total earnings assets		1,076,582			12,654	4.66	%			1,102,041			11,706	4.26	%			1,091,792			11,835	4.30	%
Nonearning Assets
Cash and due from banks		2,177								2,193								2,162
Allowance for loan losses		(11,031	)							(10,765	)							(10,174	)
Other assets		38,022								37,435								39,818
Total assets	$	1,105,750							$	1,130,904							$	1,123,598
Interest-Bearing Liabilities
Interest-bearing demand deposits	$	465,317		$	325	0.28	%		$	495,821		$	273	0.22	%		$	499,301		$	411	0.33	%
Savings deposits		25,133			14	0.22	%			25,402			16	0.25	%			21,335			18	0.33	%
Time deposits		151,130			189	0.50	%			164,687			211	0.51	%			188,512			279	0.59	%
Total interest-bearing deposits		641,580			528	0.33	%			685,910			500	0.29	%			709,148			708	0.40	%
Other borrowings		90,764			203	0.89	%			90,000			196	0.87	%			90,000			198	0.87	%
Total interest-bearing liabilities	$	732,344		$	731	0.40	%		$	775,910		$	696	0.36	%		$	799,148		$	906	0.45	%
Noninterest-Bearing Liabilities
Noninterest-bearing demand deposits		248,538								232,849								211,017
Other liabilities		15,789								15,646								15,797
Stockholders' equity		109,079								106,499								97,636
Total Liabilities and Stockholders' Equity	$	1,105,750							$	1,130,904								1,123,598
Net interest income and margin				$	11,923	4.39	%					$	11,010	4.01	%					$	10,929	3.97	%
Net interest spread						4.26	%							3.90	%							3.85	%
Cost of total deposits						0.24	%							0.22	%							0.31	%
Cost of funds						0.30	%							0.28	%							0.36	%

	Nine Months Ended								Nine Months Ended
	September 30, 2022								September 30, 2021
	Average Balance			Interest		Average Yield/Cost			Average Balance			Interest		Average Yield/Cost
Interest-Earning Assets
Federal funds sold and interest-earning deposits	$	143,455		$	812	0.76	%		$	115,265		$	146	0.17	%
Investment securities		45,903			858	2.50	%			26,792			530	2.64	%
Loans (1)		912,414			34,190	5.01	%			883,280			33,865	5.13	%
Total earnings assets		1,101,772			35,860	4.35	%			1,025,337			34,541	4.50	%
Nonearning Assets
Cash and due from banks		2,177								2,148
Allowance for loan losses		(10,805	)							(10,221	)
Other assets		38,195								39,904
Total assets	$	1,131,339							$	1,057,168
Interest-Bearing Liabilities
Interest-bearing demand deposits	$	493,332		$	917	0.25	%		$	449,019		$	1,359	0.40	%
Savings deposits		24,827			47	0.25	%			20,244			58	0.38	%
Time deposits		163,666			634	0.52	%			182,267			804	0.59	%
Total interest-bearing deposits		681,825			1,598	0.31	%			651,530			2,221	0.46	%
Other borrowings		90,257			593	0.88	%			95,806			663	0.93	%
Total interest-bearing liabilities	$	772,082		$	2,191	0.38	%		$	747,336		$	2,884	0.52	%
Noninterest-Bearing Liabilities
Noninterest-bearing demand deposits		236,531								199,861
Other liabilities		16,352								15,822
Stockholders' equity		106,374								94,149
Total Liabilities and Stockholders' Equity	$	1,131,339							$	1,057,168
Net interest income and margin				$	33,669	4.09	%					$	31,657	4.13	%
Net interest spread						3.97	%							3.98	%
Cost of total deposits						0.23	%							0.35	%
Cost of funds						0.29	%							0.41	%

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
	Three Months Ended				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
PERFORMANCE MEASURES AND RATIOS	September 30, 2022				June 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Return on average common equity		12.65	%			9.92	%			14.77	%			12.66	%			14.49	%
Return on average assets		1.25	%			0.93	%			1.28	%			1.19	%			1.29	%
Efficiency ratio		59.48	%			67.26	%			57.31	%			61.53	%			59.16	%
Net interest margin		4.39	%			4.01	%			3.97	%			4.09	%			4.13	%
	Three Months Ended				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
AVERAGE BALANCES	September 30, 2022				June 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Average assets	$	1,105,750			$	1,130,904			$	1,123,598			$	1,131,339			$	1,057,168
Average earning assets		1,076,582				1,102,041				1,091,792				1,101,772				1,025,337
Average total loans		935,169				907,088				882,058				912,414				883,280
Average deposits		890,118				918,759				920,165				918,356				851,391
Average common equity		109,079				106,499				97,636				106,374				94,149
EQUITY ANALYSIS	September 30, 2022				June 30, 2022				September 30, 2021
Total common equity	$	109,821			$	107,142			$	98,767
Common stock outstanding		8,755				8,744				8,616
Book value per common share	$	12.54			$	12.25			$	11.46
ASSET QUALITY	September 30, 2022				June 30, 2022				September 30, 2021
Nonaccrual loans, net	$	239			$	379			$	1,742
Nonaccrual loans, net/total loans		0.03	%			0.04	%			0.20	%
Other assets acquired through foreclosure, net	$	2,250			$	2,250			$	2,572
Nonaccrual loans plus other assets acquired through foreclosure, net	$	2,489			$	2,629			$	4,314
Nonaccrual loans plus other assets acquired through foreclosure, net/total assets		0.23	%			0.24	%			0.38	%
Net loan (recoveries)/charge-offs in the quarter	$	51			$	(66	)		$	(36	)
Net (recoveries)/charge-offs in the quarter/total loans		0.01	%			(0.01	%)			(0.00	%)
Allowance for loan losses	$	11,113			$	10,866			$	10,283
Plus: Reserve for undisbursed loan commitments		96				94				106
Total allowance for credit losses	$	11,209			$	10,960			$	10,389
Allowance for loan losses/total loans held for investment		1.20	%			1.22	%			1.19	%
Allowance for loan losses/total loans held for investment excluding PPP loans		1.21	%			1.23	%			1.24	%
Allowance for loan losses/nonaccrual loans, net		4649.79	%			2867.02	%			590.34	%
Community West Bank *
Community bank leverage ratio	N/A				N/A					8.59	%
Tier 1 leverage ratio		9.83	%			9.30	%			8.59	%
Tier 1 capital ratio		11.30	%			11.07	%			10.93	%
Total capital ratio		12.46	%			12.22	%			12.11	%
INTEREST SPREAD ANALYSIS	September 30, 2022				June 30, 2022				September 30, 2021
Yield on total loans		5.03	%			4.92	%			5.21	%
Yield on investments		2.35	%			2.44	%			2.68	%
Yield on interest earning deposits		2.09	%			0.81	%			0.16	%
Yield on earning assets		4.66	%			4.26	%			4.30	%
Cost of interest-bearing deposits		0.33	%			0.29	%			0.40	%
Cost of total deposits		0.24	%			0.22	%			0.31	%
Cost of borrowings		0.89	%			0.87	%			0.87	%
Cost of interest-bearing liabilities		0.40	%			0.36	%			0.45	%
Cost of funds		0.30	%			0.28	%			0.36	%
* Capital ratios are preliminary until the Call Report is filed.

Contact:	Richard Pimentel, EVP & CFO
	805.692.4410
	www.communitywestbank.com