U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.83 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.11 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.55%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.85
    -0.50 (-2.44%)
     
  • EUR/USD

    1.0426
    -0.0057 (-0.54%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • GBP/USD

    1.2103
    -0.0072 (-0.59%)
     
  • USD/JPY

    135.1750
    -0.5530 (-0.41%)
     
  • BTC-USD

    19,244.67
    -1,150.14 (-5.64%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.42 (-1.73%)
     

Community West Bancshares Reports Fourth Quarter Earnings of $2.9 Million, or $0.33 Per Diluted Share, and Record Net Income of $13.1 Million, or $1.50 Per Diluted Share, for the Year; Declares Quarterly Cash Dividend of $0.07 Per Common Share

  • Oops!
    Something went wrong.
    Please try again later.
·21 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

GOLETA, Calif., Jan. 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 increased 10.2% to $2.9 million, or $0.33 per diluted share, for the fourth quarter, compared to $2.6 million, or $0.31 diluted share, for the fourth quarter of 2020, and decreased compared to $3.6 million, or $0.41 per diluted share, for the third quarter of 2021. For the full year 2021, the Company reported record net income of $13.1 million, or $1.50 per diluted share, an increase of 58.9% compared to $8.2 million, or $0.97 per diluted share, for the full year 2020.

“We delivered excellent fourth quarter and full year 2021 financial results, highlighted by strong organic loan growth, record loan production, and solid revenue growth,” stated Martin E. Plourd, Chief Executive Officer. “The continued success of our outreach to new and existing clients during the quarter generated increased income and had a meaningful impact on loan generation with new loan commitments of $41.6 million in 4Q21 to offset SBA PPP loan forgiveness of $14.8 million. We continue to focus on deploying excess liquidity through increased lending activity, while closely monitoring our loan portfolio and asset quality metrics. As one of the last remaining community banks of scale along California's Central Coast, we believe we are operating from a position of strength as we enter 2022, and we will continue to work to create value for our shareholders, our clients and our communities.”

Fourth Quarter 2021 Financial Highlights:

  • Net income was $2.9 million, or $0.33 per diluted share in the fourth quarter, compared to $3.6 million, or $0.41 per diluted share in third quarter, and $2.6 million, or $0.31 per diluted share in the fourth quarter of 2020.

  • Net interest income for the quarter was $10.7 million compared to $10.9 million in the third quarter and $9.8 million in the fourth quarter of 2020.

  • Provision expense for the fourth quarter was $26,000, compared to $7,000 in the prior quarter and a $44,000 negative provision in the fourth quarter of 2020.

  • The allowance for loan losses (“ALL”) was 1.20% of total loans held for investment at December 31, 2021, and 1.23% of total loans held for investment, excluding the $21.3 million of Paycheck Protection Program (“PPP”) loans which are 100% guaranteed by the Small Business Administration (“SBA”).*

  • Non-interest-bearing demand deposits were $209.9 million at December 31, 2021, compared to $219.8 million at September 30, 2021, and $181.8 million at December 31, 2020.

  • Total loans increased $1.5 million to $892.1 million at December 31, 2021, compared to $890.6 million at September 30, 2021, and increased $34.5 million compared to $857.6 million at December 31, 2020.

  • Book value per common share increased to $11.72 at December 31, 2021, compared to $11.46 at September 30, 2021, and $10.50 at December 31, 2020.

  • The Bank’s Tier 1 leverage ratio was 8.56% at December 31, 2021, compared to 8.59% at September 30, 2021, and 9.29% at December 31, 2020.

  • Net non-accrual loans improved to $565,000 at December 31, 2021, compared to $1.7 million at September 30, 2021, and $3.7 million at December 31, 2020.

*Non GAAP

COVID-19 Pandemic and PPP loan Update

“Contributing to our success in 2021 was our continued participation in the SBA’s PPP program,” said Plourd. “As of December 31, 2021, we had 93 PPP loans totaling $21.3 million remaining on our balance sheet from both the first and second rounds of funding. During the fourth quarter of 2021, $14.8 million of the PPP loans were forgiven by the SBA. We recognized $483,000 of income in net fees related to PPP loans during the fourth quarter, compared to $1.0 million of income in net fees during the third quarter, and have $536,000 remaining in net unrecognized fees related to PPP loans that will be recognized as income through amortization or once the loans are paid off or forgiven by the SBA. As these loans are forgiven, we will use the liquidity to pursue new lending opportunities as well as focus on further reduction in funding costs.”

“Our focus on delivering an exceptional client experience throughout the PPP process, from the initial loan origination to the forgiveness process, is helping bring in new clients. As of December 31, 2021, we had brought over 175 new clients to the Bank, and are already beginning to see success with developing full banking relationships with these new clients,” said William F. Filippin, President, of Community West Bank.

The Company continues to closely monitor high-risk industry loans. The industries most heavily impacted include retail, healthcare, hospitality, schools and energy. The Company continues to evaluate loans related to affected industries, and at December 31, 2021, the Bank’s loans to these industries were $158.4 million, which is 17.8% of its $892.1 million loan portfolio.

Of the selected industry loans, $918,000, or less than 1%, are on non-accrual at December 31, 2021, compared to $3.0 million at December 31, 2020. Also, of the selected industry loans, the classified loans are $13.4 million, or 8.5% at December 31, 2021, compared to $16.9 million or 9.4% at December 31, 2020. Additional detail by industry at December 31, 2021 is included in the table below.

Sectors Under Focus (Excluding PPP Loans)

As of 12/31/21
(in thousands)

Loans
Outstanding

$ Non-accrual

% Non-
accrual

$ Classified

%
Classified

$ Deferrals

%
Deferral

Healthcare

$

50,126

$

-

0.00

%

$

1,995

3.98

%

$

-

0.00

%

Senior/Assted Living Facilities

23,505

-

0.00

%

0.00

%

-

0.00

%

Medical Offices

16,769

-

0.00

%

233

1.39

%

-

0.00

%

General Healthcare

9,852

-

0.00

%

1,762

17.88

%

-

0.00

%

Hospitality

49,392

918

1.86

%

3,567

7.22

%

-

0.00

%

Lodging

40,936

-

0.00

%

2,486

6.07

%

-

0.00

%

Restaurants

8,456

918

10.86

%

1,081

12.78

%

-

0.00

%

Retail Commercial Real Estate

45,835

0

0.00

%

7,739

16.88

%

0.00

%

Retail Services

11,870

0

0.00

%

1

0.01

%

-

0.00

%

Schools

1,115

0

0.00

%

-

0.00

%

-

0.00

%

Energy

85

0

0.00

%

85

100.00

%

-

0.00

%

Total

$

158,423

$

918

0.58

%

$

13,387

8.45

%

$

-

0.00

%

Income Statement

Net interest income totaled $10.7 million in fourth quarter, compared to $10.9 million in third quarter, and $9.8 million in the fourth quarter of 2020. For the full year 2021, net interest income increased 15.8% to $42.4 million, compared to $36.6 million in 2020.

Net interest margin was 3.77% for fourth quarter, a 20-basis point contraction compared to the third quarter, and a 36-basis point contraction compared to fourth quarter of 2020. “Despite a 10-basis point benefit from PPP loan payoffs for the fourth quarter of 2021, net interest margin was negatively impacted by excess balance sheet liquidity,” said Richard Pimentel, Chief Financial Officer. The cost of funds for the fourth quarter decreased 5-basis points to 0.31%, compared to 0.36% for the third quarter, and improved by 23-basis points compared to 0.54% for the fourth quarter of 2020. PPP loans included fees accounted for 10 basis points of net interest margin for the fourth quarter compared to 25-basis points in the third quarter, and 6 basis points in the fourth quarter of 2020. For the year 2021, the net interest margin expanded 14-basis points to 4.03%, compared to 3.89% for 2020. Income from PPP loans contributed 13-basis points to the net interest margin in 2021 compared to 6-basis points in 2020.

Non-interest income totaled $944,000 in fourth quarter, compared to $1.0 million in third quarter, and $970,000 in fourth quarter of 2020. The decrease in the fourth quarter was primarily due to lower loan fees, servicing revenues and less revenue from loan sales. Other loan fees were $343,000 for the fourth quarter, compared to $383,000 in the third quarter and $383,000 in the fourth quarter of 2020. Gain on sale of loans was $109,000 in fourth quarter, compared to $118,000 in the third quarter and $209,000 in fourth quarter of 2020. Non-interest income was $3.8 million for the year 2021, compared to $3.9 million for the year 2020, with the decrease during the year largely due to a reduction in loan fees and lower gain on sale of loans partially offset by an increase in other income related to increases in serving revenue and fair value adjustments on investments held at fair value.

Non-interest expense totaled $7.6 million in fourth quarter, compared to $6.9 million in third quarter, and $7.1 million in fourth quarter of 2020. The Company’s efficiency ratio was 65.23% for fourth quarter, compared to 57.31% for third quarter, and 65.68% for the fourth quarter of 2020. For the full year 2021, non-interest expense was $28.0 million, compared to $27.5 million in 2020. The Company continues to focus on expense control and gaining efficiencies through use of technology and process improvement. The efficiency ratio for the full year 2021 was 60.69% compared to 67.96% for the full year 2020.

Balance Sheet

Total assets increased $21.5 million, or 1.9%, to $1.16 billion at December 31, 2021, compared to $1.14 billion, at September 30, 2021, and increased $181.6 million, or 18.6%, compared to $975.4 million, at December 31, 2020. Total loans increased by $1.5 million, to $892.1 million at December 31, 2021, compared to $890.6 million, at September 30, 2021, and increased $34.5 million, or 4.0%, compared to $857.6 million, at December 31, 2020. Total loans, excluding PPP loans, increased $16.3 million during the quarter, or 1.9%, and increased $82.7 million, or 10.5%, compared to December 31, 2020.

Commercial real estate loans outstanding (which include SBA 504, construction and land) were up 19.6% from year ago levels to $480.8 million at December 31, 2021, and comprise 53.9% of the total loan portfolio. Manufactured housing loans were up 6.1% from year ago levels to $297.4 million and represent 33.3% of total loans. PPP loans were $21.3 million at December 31, 2021, and represent 2.4% of total loans, down from $36.1 million at September 30, 2021, and $69.5 million at December 31, 2020. Commercial loans (which include agriculture loans) were down 10.4% from year ago levels to $72.4 million and represent 8.1% of the total loan portfolio.

Total deposits increased $18.2 million, or 2.0%, to $950.1 million at December 31, 2021, compared to $931.9 million at September 30, 2021, and increased $183.9 million, or 24.0%, compared to $766.2 million at December 31, 2020. Non-interest-bearing demand deposits were $209.9 million at December 31, 2021, a $9.9 million decrease compared to $219.8 million at September 30, 2021, and a $28.1 million increase compared to $181.8 million at December 31, 2020. Interest-bearing demand deposits increased $29.5 million to $537.5 million at December 31, 2021, compared to $508.0 million at September 30, 2021, and increased $139.4 million compared to $398.1 million at December 31, 2020.

Certificates of deposit, which include brokered deposits, decreased $3.8 million during the quarter to $179.1 million at December 31, 2021, compared to $182.9 million at September 30, 2021, and increased $11.5 million compared to $167.5 million at December 31, 2020.

Stockholders’ equity increased to $101.4 million at December 31, 2021, compared to $98.8 million at September 30, 2021, and $89.0 million at December 31, 2020. Book value per common share increased to $11.72 at December 31, 2021, compared to $11.46 at September 30, 2021, and $10.50 at December 31, 2020.

Credit Quality

“Credit quality metrics improved during the quarter, with a substantial decrease in net-nonaccrual loans,” said Plourd. “We continue to closely monitor our loan portfolio and have elevated credit monitoring structures in place. Our disciplined approach of managing potential problem loans early has helped to keep us from incurring losses. This conservative loan grading system is a strategy that we put in place years ago and is reflective in our historic low loss ratio.”

At December 31, 2021, asset quality reflected improvement due to positive loan risk rating migrations during the fourth quarter. Total classified loans decreased year-over-year due to proactive risk rating of loans showing signs of financial stress during the pandemic, while net non-accrual loans also decreased year over year. 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 $26,000 in the fourth quarter compared to a provision expense of $7,000 in third quarter and a negative provision expense of $44,000 in the fourth quarter of 2020. The allowance for credit losses, including the reserve for undisbursed loans, was $10.5 million, or 1.20% of total loans held for investment, at December 31, 2021, and 1.23% of total loans held for investment excluding PPP loans. Net non-accrual loans, plus net other assets acquired through foreclosure, decreased 28.5% to $3.1 million at December 31, 2021, compared to $4.3 million at September 30, 2021, and decreased 50.9% compared to $6.3 million at December 31, 2020.

There was $565,000 in net non-accrual loans as of December 31, 2021, compared to $1.7 million at September 30, 2021, and $3.7 million at December 31, 2020. Of the $565,000 of net non-accrual loans at December 31, 2021, $1,000 were SBA 504 loans, $306,000 were manufactured housing loans, and $258,000 were single family real estate loans.

There was $2.5 million in other assets acquired through foreclosure as of December 31, 2021, compared to $2.6 million at September 30, 2021, and at December 31, 2020. The majority of this balance relates to one property in the amount of $2.3 million.

Cash Dividend Declared

The Company’s Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable February 28, 2022 to common shareholders of record on February 11, 2022.

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 fourth quarter of 2021, 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

Community West was named to Piper Sandler’s Bank and Thrift Sm-All Stars – Class of 2021. This award recognized Community West as one of the top 35 best performing small capitalization institutions from a list of publicly traded banks and thrifts in the U.S. with market capitalizations less than $2.5 billion.

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)

December 31,

September 30,

December 31,

2021

2021

2020

Cash and cash equivalents

$

1,621

$

2,129

$

1,587

Interest-earning deposits in other financial institutions

206,754

184,806

58,953

Investment securities

22,773

23,608

22,043

Loans:

Commercial

72,423

66,713

80,851

Commercial real estate

480,801

473,338

402,148

SBA

8,580

9,589

11,851

Paycheck Protection Program (PPP)

21,317

36,109

69,542

Manufactured housing

297,363

292,476

280,284

Single family real estate

8,663

8,659

10,358

HELOC

3,579

3,717

3,861

Other (1)

(643

)

(6

)

(1,318

)

Total loans

892,083

890,595

857,577

Loans, net

Held for sale

23,408

24,400

31,229

Held for investment

868,675

866,195

826,348

Less: Allowance for loan losses

(10,404

)

(10,283

)

(10,194

)

Net held for investment

858,271

855,912

816,154

NET LOANS

881,679

880,312

847,383

Other assets

44,225

44,735

45,469

TOTAL ASSETS

$

1,157,052

$

1,135,590

$

975,435

Deposits

Non-interest-bearing demand

$

209,893

$

219,826

$

181,837

Interest-bearing demand

537,508

508,020

398,101

Savings

23,675

21,202

18,736

Certificates of deposit ($250,000 or more)

17,612

15,956

30,536

Other certificates of deposit

161,443

166,938

136,975

Total deposits

950,131

931,942

766,185

Other borrowings

90,000

90,000

105,000

Other liabilities

15,546

14,881

15,243

TOTAL LIABILITIES

1,055,677

1,036,823

886,428

Stockholders' equity

101,375

98,767

89,007

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,157,052

$

1,135,590

$

975,435

Common shares outstanding

8,650

8,616

8,473

Book value per common share

$

11.72

$

11.46

$

10.50

(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

December 31,

September 30,

June 30,

March 31,

December 31,

2021

2021

2021

2021

2020

Interest income

Loans, including fees

$

11,258

$

11,576

$

11,433

$

10,856

$

10,790

Investment securities and other

279

259

218

199

196

Total interest income

11,537

11,835

11,651

11,055

10,986

Deposits

614

708

771

742

815

Other borrowings

206

198

194

271

378

Total interest expense

820

906

965

1,013

1,193

Net interest income

10,717

10,929

10,686

10,042

9,793

Provision (credit) for loan losses

26

7

(41

)

(173

)

(44

)

Net interest income after provision for loan losses

10,691

10,922

10,727

10,215

9,837

Non-interest income

Other loan fees

343

383

310

313

383

Gains from loan sales, net

109

118

130

118

209

Document processing fees

123

145

138

106

129

Service charges

84

77

74

67

83

Other

285

317

220

293

166

Total non-interest income

944

1,040

872

897

970

Non-interest expenses

Salaries and employee benefits

4,884

4,478

4,379

4,565

4,594

Occupancy, net

893

802

780

779

751

Professional services

441

434

430

340

399

Data processing

251

292

332

340

254

Depreciation

186

191

198

205

202

FDIC assessment

146

127

121

91

165

Advertising and marketing

198

189

164

183

110

Stock-based compensation

129

63

58

68

68

Other

478

284

207

289

526

Total non-interest expenses

7,606

6,860

6,669

6,860

7,069

Income before provision for income taxes

4,029

5,102

4,930

4,252

3,738

Provision for income taxes

1,135

1,467

1,379

1,231

1,111

Net income

$

2,894

$

3,635

$

3,551

$

3,021

$

2,627

Earnings per share:

Basic

$

0.34

$

0.42

$

0.42

$

0.36

$

0.31

Diluted

$

0.33

$

0.41

$

0.41

$

0.35

$

0.31



COMMUNITY WEST BANCSHARES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(unaudited)

(in 000's, except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2021

2020

2021

2020

Interest income

Loans, including fees

$

11,258

$

10,790

$

45,123

$

42,948

Investment securities and other

279

196

955

906

Total interest income

11,537

10,986

46,078

43,854

Deposits

614

815

2,835

5,483

Other borrowings

206

378

869

1,782

Total interest expense

820

1,193

3,704

7,265

Net interest income

10,717

9,793

42,374

36,589

Provision (credit) for loan losses

26

(44

)

(181

)

1,223

Net interest income after provision for loan losses

10,691

9,837

42,555

35,366

Non-interest income

Other loan fees

343

383

1,349

1,546

Gains from loan sales, net

109

209

475

920

Document processing fees

123

129

512

513

Service charges

84

83

302

354

Other

285

166

1,115

579

Total non-interest income

944

970

3,753

3,912

Non-interest expenses

Salaries and employee benefits

4,884

4,594

18,306

17,968

Occupancy, net

893

751

3,254

3,036

Professional services

441

399

1,645

1,801

Data processing

251

254

1,215

1,055

Depreciation

186

202

780

821

FDIC assessment

146

165

485

565

Advertising and marketing

198

110

734

673

Stock-based compensation

129

68

318

319

Other

478

526

1,258

1,285

Total non-interest expenses

7,606

7,069

27,995

27,523

Income before provision for income taxes

4,029

3,738

18,313

11,755

Provision for income taxes

1,135

1,111

5,212

3,510

Net income

$

2,894

$

2,627

$

13,101

$

8,245

Earnings per share:

Basic

$

0.34

$

0.31

$

1.53

$

0.97

Diluted

$

0.33

$

0.31

$

1.50

$

0.97



ADDITIONAL FINANCIAL INFORMATION

(Dollars and shares in thousands except per share amounts)(Unaudited)

Three Months Ended

Twelve Months Ended

PERFORMANCE MEASURES AND RATIOS

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

Return on average common equity

11.42

%

14.77

%

11.85

%

13.68

%

9.70

%

Return on average assets

0.99

%

1.28

%

1.07

%

1.21

%

0.85

%

Efficiency ratio

65.23

%

57.31

%

65.68

%

60.69

%

67.96

%

Net interest margin

3.77

%

3.97

%

4.13

%

4.03

%

3.89

%

Three Months Ended

Twelve Months Ended

AVERAGE BALANCES

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

Average assets

$

1,157,909

$

1,123,598

$

977,736

$

1,082,560

$

972,019

Average earning assets

1,126,473

1,091,792

944,073

1,050,829

940,993

Average total loans

888,519

882,058

845,620

884,601

831,863

Average deposits

950,601

920,165

726,223

876,397

730,884

Average common equity

100,579

97,636

88,171

95,770

85,027

EQUITY ANALYSIS

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Total common equity

$

101,375

$

98,767

$

89,007

Common stock outstanding

8,650

8,616

8,473

Book value per common share

$

11.72

$

11.46

$

10.50

ASSET QUALITY

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Nonaccrual loans, net

$

565

$

1,742

$

3,665

Nonaccrual loans, net/total loans

0.06%

0.20%

0.43%

Other assets acquired through foreclosure, net

$

2,518

$

2,572

$

2,614

Nonaccrual loans plus other assets acquired through foreclosure, net

$

3,083

$

4,314

$

6,279

Nonaccrual loans plus other assets acquired through foreclosure, net/total assets

0.27%

0.38%

0.64%

Net loan (recoveries)/charge-offs in the quarter

$

(96)

$

(36)

$

(41)

Net (recoveries)/charge-offs in the quarter/total loans

(0.01%)

(0.00%)

(0.00%)

Allowance for loan losses

$

10,404

$

10,283

$

10,194

Plus: Reserve for undisbursed loan commitments

94

106

92

Total allowance for credit losses

$

10,498

$

10,389

$

10,286

Allowance for loan losses/total loans held for investment

1.20%

1.19%

1.23%

Allowance for loan losses/total loans held for investment excluding PPP loans

1.23%

1.24%

1.35%

Allowance for loan losses/nonaccrual loans, net

1842.50%

590.34%

278.14%

Community West Bank *

Community bank leverage ratio

N/A

8.59%

9.29%

Tier 1 leverage ratio

8.56%

8.59%

9.29%

Tier 1 capital ratio

11.02%

10.93%

11.02%

Total capital ratio

12.19%

12.11%

12.27%

INTEREST SPREAD ANALYSIS

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

Yield on total loans

5.03%

5.21%

5.08%

Yield on investments

2.78%

2.68%

2.46%

Yield on interest earning deposits

0.16%

0.16%

0.15%

Yield on earning assets

4.06%

4.30%

4.63%

Cost of interest-bearing deposits

0.34%

0.40%

0.60%

Cost of total deposits

0.26%

0.31%

0.45%

Cost of borrowings

0.91%

0.87%

1.03%

Cost of interest-bearing liabilities

0.40%

0.45%

0.69%

Cost of funds

0.31%

0.36%

0.54%

* Capital ratios are preliminary until the Call Report is filed.

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