CWBC Community West Bancshares New

Community West Bancshares (“Community West” or the “Company”), (NASDAQ: CWBC), parent company of Community West Bank (the “Bank”), today reported net income of $2.6 million, or $0.30 per diluted share, for the second quarter of 2022, compared to $3.6 million, or $0.41 diluted share, for the second quarter of 2021, and $4.0 million, or $0.45 per diluted share, for the first quarter of 2022. For the first six months of 2022, the Company reported net income of $6.6 million, or $0.74 per diluted share, compared to $6.6 million, or $0.76 per diluted share, for the first six months of 2021.

Earnings for the second quarter of 2022 were impacted by a $252,000 provision for loan losses as a result of quarterly loan growth. This compared to a $284,000 negative provision expense recorded during the preceding quarter. Preceding quarter results were also enhanced by a $549,000 tax exempt payout on a Bank Owned Life Insurance (“BOLI”) policy and collection and legal expense recovery of $992,000 as a result of a loan legal settlement.

Results for the second quarter of 2022 compared to the year ago quarter reflect lower interest and fees on Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, due to lower PPP loan forgiveness as the program nears its conclusion. The PPP interest and fees recognized in the second quarter of 2022 were $146,000 compared to $1.1 million in the second quarter of 2021.

The Company’s Board of Directors declared a quarterly cash dividend of $0.075 per common share, payable August 31, 2022 to common shareholders of record on August 12, 2022.

“Our earnings for the second quarter included strong loan growth and net interest income expansion, as we continue to broaden our presence throughout California’s Central Coast,” stated Martin E. Plourd, President & Chief Executive Officer of Community West Bancshares. “Total loans increased 2.5% during the quarter, or 10% annually, reflecting increases in the commercial real estate and manufactured housing loan portfolios. Additionally, our net interest margin improved substantially on a linked quarter basis improving 15 basis points to 4.01% as we took advantage of interest rate increases enacted by the Federal Reserve and invested cash balances into higher yielding securities. We remain well positioned to benefit further from any anticipated rate increases in the months ahead.”

Second Quarter 2022 Financial Highlights:

• Net income was $2.6 million, or $0.30 per diluted share in the second quarter, compared to $4.0 million, or $0.45 per diluted share in first quarter 2022, and $3.6 million, or $0.41 per diluted share in second quarter 2021.
• Net interest income was $11.0 million for second quarter 2022, and $10.7 million in first quarter 2022 and second quarter 2021.
• Net interest margin was 4.01% for the second quarter, compared to 3.86% in first quarter 2022, and 4.24% in second quarter 2021.
• Return on average assets was 0.92%, compared to 1.39% in first quarter 2022, and 1.37% in second quarter 2021.
• Return on average equity was 9.92%, compared to 15.52% in first quarter 2022, and 15.18% in second quarter 2021.
• The Company recorded a provision for loan losses of $252,000 for second quarter 2022, compared to a negative provision expense of $284,000 for first quarter 2022, and a negative provision expense of $41,000 in second quarter of 2021.
• The Allowance for Loan Losses (“ALL”) was 1.22% of total loans held for investment at June 30, 2022, and 1.23% of total loans held for investment, excluding the $2.9 million of SBA PPP loans which are 100% guaranteed by the SBA.*
• Non-interest-bearing demand deposits increased $10.6 million to $236.7 million at June 30, 2022, compared to $226.1 million at March 31, 2022, and increased $34.4 million compared to $202.3 million at June 30, 2021.
• Book value per common share increased to $12.32 at June 30, 2022, compared to $12.07 at March 31, 2022, and $11.11 at June 30, 2021.
• The Bank’s Tier 1 leverage ratio was 9.30% at June 30, 2022, compared to 8.88% at March 31, 2022, and 8.94% at June 30, 2021.
• Net non-accrual loans improved to $379,000 at June 30, 2022, compared to $536,000 at March 31, 2022, and $1.8 million at June 30, 2021.

*Non GAAP

Income Statement

Net interest income totaled $11.0 million in second quarter 2022, compared to $10.7 million in both the preceding quarter and the second quarter of 2021. The Company recognized $146,000 of income in interest and net fees related to PPP loans during the second quarter, compared to $399,000 of income in interest and net fees during first quarter 2022, and $1.1 million for second quarter 2021. As of June 30, 2022, there was $17,000 remaining in net unrecognized fees related to PPP loans that will be recognized as income through amortization or once the loans are either paid off or forgiven by the SBA. In the first six months of 2022, net interest income increased 4.9% to $21.7 million, compared to $20.7 million in the first six months of 2021.

Net interest margin was 4.01% for second quarter 2022, a 15-basis point increase compared to first quarter 2022, and a 23-basis point contraction compared to second quarter 2021. “During the second quarter, we continued deploying excess cash into securities and higher yielding cash equivalents, which had a significant impact on net interest margin compared to the prior quarter,” said Richard Pimentel, Chief Financial Officer. Lower deposit rates also contributed to net interest margin expansion during the quarter, primarily due to the shifting deposit mix and outflows of higher costing deposits. The cost of funds for the second quarter decreased 2-basis points to 0.28%, compared to 0.30% for the preceding quarter, and improved by 13-basis points compared to 0.41% for the second quarter of 2021. PPP loans, including fees, accounted for 3-basis points of net interest margin for the second quarter compared to 10-basis points in first quarter 2022, and 10-basis points in second quarter 2021. In the first six months of 2022, the net interest margin was 3.93%, compared to 4.22% in the first six months of 2021.

Non-interest income totaled $1.1 million in second quarter 2022, compared to $1.3 million in first quarter 2022, and $872,000 in second quarter 2021. Other income was $323,000 in the second quarter 2022 compared to $796,000 in the first quarter 2022. The decline in other income was due to a $549,000 tax exempt payout on a BOLI policy that was paid in the first quarter partially offset by a $104,000 gain from the sale of a previously foreclosed asset. Other loan fees were $377,000 for the second quarter, compared to $246,000 in first quarter 2022 and $310,000 in second quarter 2021. Gain on sale of loans was $136,000 in the second quarter, compared to $60,000 in the first quarter of 2022 and $130,000 in second quarter 2021. Non-interest income increased 32.4% to $2.3 million in the first six months of 2022, compared to $1.8 million in the first six months of 2021. The increase was primarily due to the BOLI policy payout and gain on sale of a previously foreclosed asset during the first quarter discussed above partially offset by $52,000 in lower gain on sale and $22,000 less in loan and document processing fees.

Non-interest expense totaled $8.1 million in second quarter 2022, compared to $7.0 million in the first quarter of 2022, and $6.7 million in the second quarter of 2021. Non-interest expense for the prior quarter reflects a collection and legal expense recovery of $992,000 as a result of a legal settlement. Salaries and employee benefits, the Company’s largest component of non-interest expense, increased $45,000 compared to first quarter 2022, and increased $531,000 compared to second quarter 2021 due to increased pressure on wages and benefits as a result of increased inflation and low unemployment. The Company’s efficiency ratio was 67.26% for second quarter, compared to 57.97% for first quarter 2022, and 57.70% for second quarter 2021. In the first six months of 2022, non-interest expense was $15.1 million, compared to $13.5 million in the first six months of 2021.

Balance Sheet

Total assets decreased $29.8 million, or 2.6%, to $1.11 billion at June 30, 2022, compared to $1.14 billion, at March 31, 2022, and increased $43.8 million, or 4.1%, compared to $1.06 billion, at June 30, 2021. Total interest-earning deposits in other financial institutions decreased $91.2 million to $100 million at June 30, 2022 as excess cash balances were deployed into higher yielding securities and loans. Total investment securities increased $38.7 million to $60.5 million. Total loans increased by $22.4 million, to $912.7 million at June 30, 2022, compared to $890.3 million, at March 31, 2022, and increased $19.4 million compared to $893.3 million, at June 30, 2021. Total loans, excluding PPP loans, increased $26.9 million during the quarter and increased $87.6 million compared to June 30, 2021.

Commercial real estate loans outstanding (which include SBA 504, construction and land) were up 16.3% from year ago levels to $516.5 million at June 30, 2022, and comprise 56.6% of the total loan portfolio. Manufactured housing loans were up 6.7% from year ago levels to $305.7 million and represent 33.5% of total loans. Commercial loans (which include agriculture loans) were down 1.3% from year ago levels to $67.7 million and represent 7.4% of the total loan portfolio. As of June 30, 2022, the Company had ten PPP loans totaling $2.9 million remaining on its balance sheet from both the first and second rounds of PPP funding. PPP loans of $2.9 million represent less than one percent of total loans at June 30, 2022, down from $7.5 million at March 31, 2022, and $71.1 million at June 30, 2021.

Total deposits decreased $31.1 million, or 3.4%, to $894.7 million at June 30, 2022, compared to $925.7 million at March 31, 2022, and increased $30.1 million, or 3.5%, compared to $864.6 million at June 30, 2021. Non-interest-bearing demand deposits were $236.7 million at June 30, 2022, a $10.6 million increase compared to $226.1 million at March 31, 2022, and a $34.4 million increase compared to $202.3 million at June 30, 2021. Higher cost interest-bearing demand deposits decreased $28.3 million to $475.9 million at June 30, 2022, compared to $504.2 million at March 31, 2022, and increased $26.2 million compared to $449.6 million at June 30, 2021. Certificates of deposit, which include brokered deposits, decreased $14.7 million during the quarter to $156.5 million at June 30, 2022, compared to $171.2 million at March 31, 2022, and decreased $36.5 million compared to $192.9 million at June 30, 2021.

Stockholders’ equity increased to $107.1 million at June 30, 2022, compared to $104.8 million at March 31, 2022, and $95.5 million at June 30, 2021. Book value per common share increased to $12.32 at June 30, 2022, compared to $12.07 at March 31, 2022, and $11.11 at June 30, 2021.

Credit Quality

“Credit quality metrics continue to improve, with a substantial decrease in net-nonaccrual loans compared to a year ago,” said Plourd. “We continue to closely monitor our loan portfolio and have conservative credit monitoring structures in place during all credit cycles.”

At June 30, 2022, asset quality reflected improvement due to positive loan risk rating migrations during the second 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. Net loan recoveries totaled $66,000 during the second quarter of 2022, compared to net loan recoveries of $427,000 in the preceding quarter and net loan recoveries of $48,000 in second quarter 2021.

The Company recorded a provision expense of $252,000 in the second quarter, compared to a negative provision expense of $284,000 in first quarter 2022, and a negative provision expense of $41,000 in second quarter 2021. The allowance for loan losses was $10.9 million, or 1.22% of total loans held for investment, at June 30, 2022, and 1.23% of total loans held for investment excluding PPP loans. Net non-accrual loans, plus net other assets acquired through foreclosure, decreased 10.1% to $2.7 million at June 30, 2022, compared to $2.9 million at March 31, 2022, and decreased 39.8% compared to $4.4 million at June 30, 2021.

There was $379,000 in net non-accrual loans as of June 30, 2022, compared to $536,000 at March 31, 2022, and $1.8 million at June  30, 2021. Of the $379,000 of net non-accrual loans at June 30, 2022, $138,000 were manufactured housing loans, and $241,000 were single family real estate loans.

There was $2.3 million in other assets acquired through foreclosure as of June 30, 2022, compared to $2.4 million at March 31, 2022, and $2.6 million at June 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 second 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)
		June 30,				March 31,				December 31,				June 30,
			2022				2022				2021				2021
Cash and cash equivalents		$	2,361			$	2,043			$	1,621			$	2,638
Interest-earning deposits in other financial institutions			99,915				191,145				206,754				109,642
Investment securities			60,513				21,805				22,774				23,247
Loans:
Commercial			67,681				70,480				72,423				68,537
Commercial real estate			516,514				492,181				480,801				444,127
SBA			7,922				8,403				8,580				10,732
Paycheck Protection Program (PPP)			2,920				7,504				21,317				71,106
Manufactured housing			305,749				299,969				297,363				286,552
Single family real estate			9,038				8,824				8,663				10,513
HELOC			3,380				3,475				3,579				3,685
Other (1)			(532	)			(528	)			(643	)			(1,983	)
Total loans			912,672				890,308				892,083				893,269
Loans, net
Held for sale			23,124				24,193				23,408				27,252
Held for investment			889,548				866,115				868,675				866,017
Less: Allowance for loan losses			(10,866	)			(10,547	)			(10,404	)			(10,240	)
Net held for investment			878,682				855,568				858,271				855,777
NET LOANS			901,806				879,761				881,679				883,029
Other assets			42,233				41,849				44,224				44,472
TOTAL ASSETS		$	1,106,828			$	1,136,603			$	1,157,052			$	1,063,028
Deposits
Non-interest-bearing demand		$	236,696			$	226,073			$	209,893			$	202,293
Interest-bearing demand			475,869				504,209				537,508				449,649
Savings			25,626				24,239				23,675				19,700
Certificates of deposit ($250,000 or more)			8,688				13,197				17,612				19,791
Other certificates of deposit			147,785				158,022				161,443				173,145
Total deposits			894,664				925,740				950,131				864,578
Other borrowings			90,000				90,000				90,000				90,000
Other liabilities			15,022				16,035				15,546				12,993
TOTAL LIABILITIES			999,686				1,031,775				1,055,677				967,571
Stockholders' equity			107,142				104,828				101,375				95,457
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,106,828			$	1,136,603			$	1,157,052			$	1,063,028
Common shares outstanding			8,695				8,682				8,650				8,589
Book value per common share		$	12.32			$	12.07			$	11.72			$	11.11
(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							Six Months Ended
		June 30,			June 30,				June 30,				June 30,
		2022				2021				2022				2021
Interest income
Loans, including fees		$	11,129		$	11,433			$	22,323			$	22,289
Investment securities and other			577			218				883				417
Total interest income			11,706			11,651				23,206				22,706
Deposits			500			771				1,070				1,513
Other borrowings			196			194				390				465
Total interest expense			696			965				1,460				1,978
Net interest income			11,010			10,686				21,746				20,728
Provision (credit) for loan losses			252			(41	)			(32	)			(214	)
Net interest income after provision for loan losses			10,758			10,727				21,778				20,942
Non-interest income
Other loan fees			377			310				623				623
Gains from loan sales, net			136			130				196				248
Document processing fees			122			138				223				244
Service charges			93			74				181				141
Other			323			220				1,119				513
Total non-interest income			1,051			872				2,342				1,769
Non-interest expenses
Salaries and employee benefits			4,910			4,379				9,775				8,944
Occupancy, net			1,021			780				2,018				1,559
Professional services			635			430				1,034				770
Data processing			307			332				617				672
Depreciation			179			198				362				403
FDIC assessment			164			121				335				212
Advertising and marketing			233			164				491				347
Stock-based compensation			94			58				186				126
Other			569			207				265				496
Total non-interest expenses			8,112			6,669				15,083				13,529
Income before provision for income taxes			3,697			4,930				9,037				9,182
Provision for income taxes			1,062			1,379				2,442				2,610
Net income		$	2,635		$	3,551			$	6,595			$	6,572
Earnings per share:
Basic		$	0.30		$	0.42			$	0.76			$	0.77
Diluted		$	0.30		$	0.41			$	0.74			$	0.76

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
		Three Months Ended
		June 30,			March 31,				December 31,			September 30,			June 30,
		2022				2022				2021			2021			2021
Interest income
Loans, including fees		$	11,129		$	11,194			$	11,258		$	11,576		$	11,433
Investment securities and other			577			306				279			259			218
Total interest income			11,706			11,500				11,537			11,835			11,651
Deposits			500			570				614			708			771
Other borrowings			196			194				206			198			194
Total interest expense			696			764				820			906			965
Net interest income			11,010			10,736				10,717			10,929			10,686
Provision (credit) for loan losses			252			(284	)			26			7			(41	)
Net interest income after provision for loan losses			10,758			11,020				10,691			10,922			10,727
Non-interest income
Other loan fees			377			246				343			383			310
Gains from loan sales, net			136			60				109			118			130
Document processing fees			122			101				123			145			138
Service charges			93			88				84			77			74
Other			323			796				285			317			220
Total non-interest income			1,051			1,291				944			1,040			872
Non-interest expenses
Salaries and employee benefits			4,910			4,865				4,884			4,478			4,379
Occupancy, net			1,021			997				893			802			780
Professional services			635			399				441			434			430
Data processing			307			310				251			292			332
Depreciation			179			183				186			191			198
FDIC assessment			164			171				146			127			121
Advertising and marketing			233			258				198			189			164
Stock-based compensation			94			92				129			63			58
Other			569			(304	)			478			284			207
Total non-interest expenses			8,112			6,971				7,606			6,860			6,669
Income before provision for income taxes			3,697			5,340				4,029			5,102			4,930
Provision for income taxes			1,062			1,380				1,135			1,467			1,379
Net income		$	2,635		$	3,960			$	2,894		$	3,635		$	3,551
Earnings per share:
Basic		$	0.30		$	0.46			$	0.34		$	0.42		$	0.42
Diluted		$	0.30		$	0.45			$	0.33		$	0.41		$	0.41

		Three Months Ended								Three Months Ended								Three Months Ended
		June 30, 2022								March 31, 2022								June 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		$	149,710		$	302	0.81	%		$	205,815		$	109	0.21	%		$	91,106		$	33	0.15	%
Investment securities			45,243			275	2.44	%			26,897			197	2.97	%			26,914			185	2.76	%
Loans (1)			907,088			11,129	4.92	%			894,539			11,194	5.08	%			891,948			11,433	5.14	%
Total earnings assets			1,102,041			11,706	4.26	%			1,127,251			11,500	4.14	%			1,009,968			11,651	4.63	%
Nonearning Assets
Cash and due from banks			2,193								2,161								2,204
Allowance for loan losses			(10,765	)							(10,615	)							(10,261	)
Other assets			37,435								39,138								40,075
Total assets		$	1,130,904							$	1,157,935							$	1,041,986
Interest-Bearing Liabilities
Interest-bearing demand deposits		$	495,821		$	273	0.22	%		$	519,454		$	319	0.25	%		$	436,167		$	466	0.43	%
Savings deposits			25,402			16	0.25	%			23,931			16	0.27	%			20,047			19	0.38	%
Time deposits			164,687			211	0.51	%			175,448			235	0.54	%			184,584			286	0.62	%
Total interest-bearing deposits			685,910			500	0.29	%			718,833			570	0.32	%			640,798			771	0.48	%
Other borrowings			90,000			196	0.87	%			90,000			194	0.87	%			92,582			194	0.84	%
Total interest-bearing liabilities		$	775,910		$	696	0.36	%		$	808,833		$	764	0.38	%		$	733,380		$	965	0.53	%
Noninterest-Bearing Liabilities
Noninterest-bearing demand deposits			232,849								227,980								199,306
Other liabilities			15,646								17,640								15,449
Stockholders' equity			106,499								103,482								93,851
Total Liabilities and Stockholders' Equity		$	1,130,904							$	1,157,935								1,041,986
Net interest income and margin					$	11,010	4.01	%					$	10,736	3.86	%					$	10,686	4.24	%
Net interest spread							3.90	%							3.76	%							4.10	%
Cost of total deposits							0.22	%							0.24	%							0.37	%
Cost of funds							0.28	%							0.30	%							0.41	%

		Six Months Ended								Six Months Ended
		June 30, 2022								June 30, 2021
		Average Balance			Interest		Average Yield/Cost			Average Balance			Interest		Average Yield/Cost
Interest-Earning Assets
Federal funds sold and interest-earning deposits		$	177,607		$	411	0.47	%		$	81,251		$	72	0.18	%
Investment securities			36,121			472	2.64	%			26,406			345	2.63	%
Loans (1)			900,849			22,323	5.00	%			883,902			22,289	5.09	%
Total earnings assets			1,114,577			23,206	4.20	%			991,559			22,706	4.62	%
Nonearning Assets
Cash and due from banks			2,177								2,140
Allowance for loan losses			(10,691	)							(10,245	)
Other assets			38,282								39,948
Total assets		$	1,144,345							$	1,023,402
Interest-Bearing Liabilities
Interest-bearing demand deposits		$	507,572		$	592	0.24	%		$	423,461		$	947	0.45	%
Savings deposits			24,670			33	0.27	%			19,689			40	0.41	%
Time deposits			170,038			445	0.53	%			179,093			526	0.59	%
Total interest-bearing deposits			702,280			1,070	0.31	%			622,243			1,513	0.49	%
Other borrowings			90,000			390	0.87	%			98,757			465	0.95	%
Total interest-bearing liabilities		$	792,280		$	1,460	0.37	%		$	721,000		$	1,978	0.55	%
Noninterest-Bearing Liabilities
Noninterest-bearing demand deposits			230,428								194,191
Other liabilities			16,638								15,824
Stockholders' equity			104,999								92,387
Total Liabilities and Stockholders' Equity		$	1,144,345							$	1,023,402
Net interest income and margin					$	21,746	3.93	%					$	20,728	4.22	%
Net interest spread							3.83	%							4.07	%
Cost of total deposits							0.23	%							0.37	%
Cost of funds							0.29	%							0.44	%

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
		Three Months Ended				Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
PERFORMANCE MEASURES AND RATIOS		June 30, 2022				March 31, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Return on average common equity			9.92	%			15.52	%			15.18	%			12.67	%			14.35	%
Return on average assets			0.93	%			1.39	%			1.37	%			1.16	%			1.29	%
Efficiency ratio			67.26	%			57.97	%			57.70	%			62.62	%			60.14	%
Net interest margin			4.01	%			3.86	%			4.24	%			3.93	%			4.22	%
		Three Months Ended				Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
AVERAGE BALANCES		June 30, 2022				March 31, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Average assets		$	1,130,904			$	1,157,935			$	1,041,986			$	1,144,345			$	1,023,402
Average earning assets			1,102,041				1,127,251				1,009,968				1,114,577				991,559
Average total loans			907,088				894,539				891,948				900,849				883,902
Average deposits			918,759				946,813				840,104				932,708				816,434
Average common equity			106,499				103,482				93,851				104,999				92,387
EQUITY ANALYSIS		June 30, 2022				March 31, 2022				June 30, 2021
Total common equity		$	107,142			$	104,828			$	95,457
Common stock outstanding			8,695				8,682				8,589
Book value per common share		$	12.32			$	12.07			$	11.11
ASSET QUALITY		June 30, 2022				March 31, 2022				June 30, 2021
Nonaccrual loans, net		$	379			$	536			$	1,797
Nonaccrual loans, net/total loans			0.04	%			0.06	%			0.20	%
Other assets acquired through foreclosure, net		$	2,250			$	2,389			$	2,572
Nonaccrual loans plus other assets acquired through foreclosure, net		$	2,629			$	2,925			$	4,369
Nonaccrual loans plus other assets acquired through foreclosure, net/total assets			0.24	%			0.26	%			0.41	%
Net loan (recoveries)/charge-offs in the quarter		$	(66	)		$	(427	)		$	(48	)
Net (recoveries)/charge-offs in the quarter/total loans			(0.01	%)			(0.05	%)			(0.01	%)
Allowance for loan losses		$	10,866			$	10,547			$	10,240
Plus: Reserve for undisbursed loan commitments			94				90				78
Total allowance for credit losses		$	10,960			$	10,637			$	10,318
Allowance for loan losses/total loans held for investment			1.22	%			1.22	%			1.18	%
Allowance for loan losses/total loans held for investment excluding PPP loans			1.23	%			1.23	%			1.29	%
Allowance for loan losses/nonaccrual loans, net			2867.02	%			1966.82	%			569.84	%
Community West Bank *
Community bank leverage ratio			N/A				N/A				8.94	%
Tier 1 leverage ratio			9.30	%			8.88	%			8.94	%
Tier 1 capital ratio			11.07	%			11.32	%			11.21	%
Total capital ratio			12.22	%			12.49	%			12.46	%
INTEREST SPREAD ANALYSIS		June 30, 2022				March 31, 2022				June 30, 2021
Yield on total loans			4.92	%			5.08	%			5.14	%
Yield on investments			2.44	%			2.97	%			2.76	%
Yield on interest earning deposits			0.81	%			0.21	%			0.15	%
Yield on earning assets			4.26	%			4.14	%			4.63	%
Cost of interest-bearing deposits			0.29	%			0.32	%			0.48	%
Cost of total deposits			0.22	%			0.24	%			0.37	%
Cost of borrowings			0.87	%			0.87	%			0.84	%
Cost of interest-bearing liabilities			0.36	%			0.38	%			0.53	%
Cost of funds			0.28	%			0.30	%			0.41	%
* Capital ratios are preliminary until the Call Report is filed.

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