Community West Bancshares Earnings Increase 27% to $3.6 Million, or $0.41 Per Diluted Share, in 3Q21 Compared to 3Q20; Declares Quarterly Cash Dividend of $0.07 Per Common Share

About this update from Community West Bancshares

GOLETA, Calif. , Nov. 01, 2021 (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 27.1% to $3.6 million , or $0.41 per diluted share, for the third quarter of 2021 (3Q21), compared to $2.9 million , or $0.33 per diluted share, for the third quarter of 2020 (3Q20), and remained unchanged compared to the second quarter of 2021 (2Q21). For the first nine months of 2021, the Company reported net income of $10.2 million , or $1.17 per diluted share, an increase of 81.7% compared to $5.6 million , or $0.66 per diluted share, for the first nine months of 2020. “Our third quarter and year-to-date earnings were strong, fueled by increased net interest income and an expanded balance sheet,” stated Martin E. Plourd , Chief Executive Officer. “Strong revenue generation along with 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 $62.4 million in 3Q21 to offset SBA PPP loan forgiveness of $35 million and deposit growth. We continue to focus on deploying excess liquidity through increased lending activity, while managing asset quality. With the continued improvement in our local economies, we remain optimistic for growth throughout the rest of the year.” Third Quarter 2021 Financial Highlights: Net income was $3.6 million , or $0.41 per diluted share in 3Q21 and in 2Q21, compared to $2.9 million , or $0.33 per diluted share in 3Q20. Net interest income increased to $10.9 million for 3Q21, compared to $10.7 million for 2Q21 and $9.6 million in 3Q20. A provision for loan losses of $7,000 was booked for 3Q21, compared to a credit for loan losses of $41,000 for 2Q21, and a provision for loan losses of $113,000 for 3Q20. The resulting allowance was 1.19% of total loans held for investment at September 30, 2021 , and 1.24% of total loans held for investment, excluding the $36.1 million of Paycheck Protection Program (“PPP”) loans at September 30, 2021 , which are 100% guaranteed by the Small Business Administration (“SBA”).* Net interest margin was 3.97% for 3Q21, compared to 4.24% for 2Q21, and 3.76% for 3Q20. Non-interest bearing demand deposits increased $17.5 million during the quarter to $219.8 million at September 30, 2021 and increased $29.7 million compared to $190.1 million at September 30, 2020 . Total demand deposits increased $75.9 million to $727.8 million at September 30, 2021 , compared to $651.9 million at June 30, 2021 , and increased $182.6 million compared to $545.2 million at September 30, 2020 . Total loans decreased $2.7 million to $890.6 million at September 30, 2021 , compared to $893.3 million at June 30, 2021 , and increased $36.1 million compared to $854.5 million at September 30, 2020 . Book value per common share increased to $11.46 at September 30, 2021 , compared to $11.11 at June 30, 2021 , and $10.23 at September 30, 2020 . The Bank’s community bank leverage ratio (CBLR) was 8.59% at September 30, 2021 , compared to 8.94% at June 30, 2021 , and 8.79% at September 30, 2020 . Net non-accrual loans were $1.7 million at September 30, 2021 , compared to $1.8 million at June 30, 2021 , and $2.3 million at September 30, 2020 . Other assets acquired through foreclosure, net, was $2.6 million at September 30, 2021 and June 30, 2021 , respectively, and $2.7 million at September 30, 2020 . *Non GAAP COVID-19 Pandemic and PPP loan Update “Contributing to our success in the first nine months of 2021, and previously in 2020, was our participation in the SBA’s PPP program,” said Plourd. “As of September 30, 2021 , we had 166 PPP loans totaling $36.1 million remaining on our balance sheet from both the first and second rounds of funding. During the third quarter of 2021, $35.0 million of the PPP loans were forgiven by the SBA. We recognized $1 million of income in net fees related to PPP loans during 3Q21, compared to $0.9 million of income in net fees during 2Q21, and have $1 million 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.” “During the third quarter of 2021 we remained focused on delivering an exceptional client experience throughout the PPP forgiveness process, and this approach, along with our client’s referrals to others, helped bring new clients into the Bank, as is evident from our strong demand deposit growth during the quarter,” said William F. Filippin , President, of Community West Bank . While the Company had no loans on deferral as of September 30, 2021 , it 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 September 30, 2021 , the Bank’s loans to these industries were $162.7 million , which is 18.3% of its $890.6 million loan portfolio. Of the selected industry loans, $1.3 million , or less than 1%, are on non-accrual at September 30, 2021 compared to $1.6 million at September 30, 2020 . Also, of the selected industry loans, the classified loans are $15.0 million , or 9.23% at September 30, 2021 compared to $17.1 million or 9.26% at September 30, 2020 . Additional detail by industry at September 30, 2021 is included in the table below. Sectors Under Focus (Excluding PPP Loans) As of 9/30/21 (in thousands) Loans Outstanding $ Non-accrual % Non-accrual $ Classified % Classified $ Deferrals % Deferral Healthcare $ 50,410 $ 0 0.00 % $ 2,084 4.13 % $ - 0.00 % Senior/Assted Living Facilities 23,487 0 0.00 % - 0.00 % - 0.00 % Medical Offices 17,970 0 0.00 % 253 1.41 % - 0.00 % General Healthcare 8,953 0 0.00 % 1,831 20.45 % - 0.00 % Hospitality 49,493 1,346 2.72 % 5,029 10.16 % - 0.00 % Lodging 39,481 1,345 3.41 % 2,437 6.17 % - 0.00 % Restaurants 10,012 1 0.01 % 2,592 25.89 % - 0.00 % Retail Commercial Real Estate 48,942 0 0.00 % 7,796 15.93 % 0.00 % Retail Services 12,637 0 0.00 % 17 0.13 % - 0.00 % Schools 1,137 0 0.00 % - 0.00 % - 0.00 % Energy 89 0 0.00 % 89 100.00 % - 0.00 % Total $ 162,706 $ 1,346 0.83 % $ 15,015 9.23 % $ - 0.00 % Income Statement Net interest income improved to $10.9 million in 3Q21, compared to $10.7 million in 2Q21, and $9.6 million in 3Q20. In the first nine months of 2021, net interest income increased 18.3% to $31.7 million , compared to $26.8 million in the first nine months of 2020. Net interest margin was 3.97% for 3Q21, a 27-basis point contraction compared to 2Q21, and a 21-basis point improvement compared to 3Q20. “PPP loan payoffs, and our continued focus on reducing our cost of funds rate contributed to the net interest margin expansion during 3Q21 compared to 3Q20. The decrease compared to the prior quarter was mostly due to lower yield on earning assets during 3Q21 compared to 2Q21,” said Susan C. Thompson Chief Financial Officer. The cost of funds for 3Q21 reduced by 5-basis points to 0.36%, compared to 0.41% for 2Q21, and improved by 30-basis points compared to 0.66% for 3Q20. PPP loans included fees accounting for 25 basis points of 3Q21 net interest margin, and 10 basis points of 2Q21 net interest margin. In the first nine months of 2021, the net interest margin expanded 32 basis points to 4.13%, compared to the first nine months of 2020. “Due to the change in loan mix in the third quarter and positive migration out of “Watch” or worse loan risk rating categories in the loan portfolio, as well as $36,000 of net loan recoveries, we recorded a provision for loan losses of $7,000 during 3Q21. This compares to a provision credit for loan losses of $41,000 in 2Q21 and a provision for loan losses of $113,000 in 3Q20. We feel that we are solidly positioned as we navigate through the recovery from the residual effects of the pandemic, with loan loss reserves, excluding PPP loans, of 1.24% at September 30 , 2021,” said Thompson. Non-interest income totaled $1.0 million in 3Q21, compared to $872,000 in 2Q21, and $1.4 million in 3Q20. Other loan fees were $383,000 for 3Q21, compared to $310,000 in 2Q21, and $539,000 in 3Q20. Gain on sale of loans was $118,000 in 3Q21, compared to $130,000 in 2Q21, and $424,000 in 3Q20. Non-interest income declined slightly to $2.8 million in the first nine months of 2021, compared to $2.9 million in the first nine months of 2020. Non-interest expense totaled $6.9 million in 3Q21, compared to $6.7 million in 2Q21 and in 3Q20. The Company’s efficiency ratio was 57.31% for 3Q21, compared to 57.70% for 2Q21 and 61.65% for 3Q20. In the first nine months of 2021, non-interest expense was $20.4 million , compared to $20.5 million in the first nine months of 2020. The Company continues to focus on expense control and gaining efficiencies through use of technology and process improvement. Balance Sheet Total assets increased $72.6 million , or 6.8%, to $1.14 billion at September 30, 2021 , compared to $1.06 billion at June 30, 2021 , and increased $93.5 million compared to $1.04 billion at September 30, 2020 . Total loans decreased by $2.7 million , to $890.6 million at September 30, 2021 , compared to $893.3 million at June 30, 2021 , and increased $36.1 million , or 4.2%, compared to $854.5 million at September 30, 2020 . Total loans, excluding PPP loans, increased $32.3 million during the quarter, or 3.9%, and increased $75.7 million , or 9.7%, compared to September 30, 2020 . “Loan growth, excluding PPP loans, was solid during the quarter, primarily from growth in commercial real estate and manufactured housing loan portfolios which offset the $35.0 million decline in PPP loan balances due to loan forgiveness,” said Thompson. Commercial real estate loans outstanding (which include SBA 504, construction and land) were up 20.0% from year ago levels to $473.3 million at September 30, 2021 , and comprise 53.1% of the total loan portfolio. Manufactured housing loans were up 6.2% from year ago levels to $292.5 million , and represent 32.8% of total loans. PPP loans were $36.1 million at September 30, 2021 , and represent 4.1% of total loans down from $71.1 million at June 30, 2021 and $75.7 million at September 30, 2020 . Commercial loans (which include agriculture loans) were down 20.7% from year ago levels to $66.7 million , and represent 7.5% of the total loan portfolio. The majority of this decrease was in the agriculture loan portfolio as the Bank continues to focus on off-balance sheet Farmer Mac lending. Total deposits increased $67.4 million , or 7.8%, to $931.9 million at September 30, 2021 , compared to $864.6 million at June 30, 2021 , and increased $182.8 million , or 24.4% compared to $749.2 million at September 30, 2020 . Non-interest-bearing demand deposits were $219.8 million at September 30, 2021 , a $17.5 million increase compared to $202.3 million at June 30, 2021 , and a $29.7 million increase compared to $190.1 million at September 30, 2020 . Interest-bearing demand deposits increased $58.4 million to $508.0 million at September 30, 2021 , compared to $449.6 million at June 30, 2021 , and increased $152.9 million compared to $355.1 million at September 30, 2020 . “Demand deposit balances remained at record levels with new relationships established from our business development efforts,” said Thompson. Certificates of deposit (CDs), which include brokered deposits, decreased $10.0 million during the quarter to $182.9 million at September 30, 2021 , compared to $192.9 million at June 30, 2021 , and decreased $2.5 million compared to $185.4 million at September 30, 2020 . The decrease in CD’s at September 30, 2021 compared to a year ago was due to divesting some high-priced municipal and brokered deposits to lower cost, core funding. Stockholders’ equity increased to $98.8 million at September 30, 2021 , compared to $95.5 million at June 30, 2021 , and $86.7 million at September 30, 2020 . Book value per common share increased to $11.46 at September 30, 2021 , compared to $11.11 at June 30, 2021 , and $10.23 at September 30, 2020 . The increase in capital will be utilized to support balance sheet growth and dividend payments. Credit Quality “Although our credit metrics remain strong, we continue to closely monitor our loan portfolio and asset quality metrics, and have elevated credit monitoring structures in place,” said Plourd. “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 September 30, 2021 , asset quality reflected improvement due to positive loan risk rating migrations during the third 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 for loan losses of $7,000 in 3Q21. This compared to a provision credit for loan losses of $41,000 in 2Q21, and a provision for loan losses of $113,000 in 3Q20. The allowance for credit losses, including the reserve for undisbursed loans, was $10.4 million , or 1.19% of total loans held for investment, at September 30, 2021 , and 1.24% of total loans held for investment excluding PPP loans. Net non-accrual loans, plus net other assets acquired through foreclosure, decreased to $4.3 million at September 30, 2021 , compared to $4.4 million at June 30, 2021 and decreased 14% compared to $5.0 million at September 30, 2020 . There was $1.7 million in net non-accrual loans as of September 30, 2021 , compared to $1.8 million at June 30, 2021 , and $2.3 million at September 30, 2020 . Of the $1.7 million of net non-accrual loans at September 30, 2021 , $1.3 million were SBA 504 loans, $96,000 were manufactured housing loans and $266,000 were single family real estate loans. There was $2.6 million in other assets acquired through foreclosure as of September 30, 2021 and June 30, 2021 , respectively, and $2.3 million at September 30, 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 November 30, 2021 to common shareholders of record on November 15, 2021 . 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 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 In September 2021 , 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 . In making their selections, Piper Sandler focused on growth, profitability, credit quality and capital strength. In April 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 . In making their selections, The Findley Reports focuses on these four ratios: growth, return on beginning equity, net operating income as a percentage of average assets, and loan losses as a percentage of gross loans. We are also rated 5 star Superior by Bauer Financial. Safe Harbor Disclosure This release contains forward-looking statements that 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 risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategy and expand its lending operations. 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 , 2021 2021 2021 2020 2020 Interest income Loans, including fees $ 11,576 $ 11,433 $ 10,856 $ 10,790 $ 10,909 Investment securities and other 259 218 199 196 207 Total interest income 11,835 11,651 11,055 10,986 11,116 Deposits 708 771 742 815 1,046 Other borrowings 198 194 271 378 518 Total interest expense 906 965 1,013 1,193 1,564 Net interest income 10,929 10,686 10,042 9,793 9,552 Provision (credit) for loan losses 7 (41 ) (173 ) (44 ) 113 Net interest income after provision for loan losses 10,922 10,727 10,215 9,837 9,439 Non-interest income Other loan fees 383 310 313 383 539 Gains from loan sales, net 118 130 118 209 424 Document processing fees 145 138 106 129 152 Service charges 77 74 67 83 75 Other 317 220 293 166 162 Total non-interest income 1,040 872 897 970 1,352 Non-interest expenses Salaries and employee benefits 4,478 4,379 4,565 4,594 4,402 Occupancy, net 802 780 779 751 751 Professional services 434 430 340 399 460 Data processing 292 332 340 254 258 Depreciation 191 198 205 202 205 FDIC assessment 127 121 91 165 123 Advertising and marketing 189 164 183 110 145 Stock-based compensation 63 58 68 68 71 Other 284 207 289 526 307 Total non-interest expenses 6,860 6,669 6,860 7,069 6,722 Income before provision for income taxes 5,102 4,930 4,252 3,738 4,069 Provision for income taxes 1,467 1,379 1,231 1,111 1,209 Net income $ 3,635 $ 3,551 $ 3,021 $ 2,627 $ 2,860 Earnings per share: Basic $ 0.42 $ 0.42 $ 0.36 $ 0.31 $ 0.34 Diluted $ 0.41 $ 0.41 $ 0.35 $ 0.31 $ 0.33 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 , 2021 2020 2021 2020 Interest income Loans, including fees $ 11,576 $ 10,909 $ 33,865 $ 32,158 Investment securities and other 259 207 676 710 Total interest income 11,835 11,116 34,541 32,868 Deposits 708 1,046 2,221 4,668 Other borrowings 198 518 663 1,404 Total interest expense 906 1,564 2,884 6,072 Net interest income 10,929 9,552 31,657 26,796 Provision (credit) for loan losses 7 113 (207 ) 1,267 Net interest income after provision for loan losses 10,922 9,439 31,864 25,529 Non-interest income Other loan fees 383 539 1,006 1,163 Gains from loan sales, net 118 424 366 711 Document processing fees 145 152 389 384 Service charges 77 75 218 271 Other 317 162 830 413 Total non-interest income 1,040 1,352 2,809 2,942 Non-interest expenses Salaries and employee benefits 4,478 4,402 13,422 13,374 Occupancy, net 802 751 2,361 2,285 Professional services 434 460 1,204 1,402 Data processing 292 258 964 801 Depreciation 191 205 594 619 FDIC assessment 127 123 339 400 Advertising and marketing 189 145 536 563 Stock-based compensation 63 71 189 251 Other 284 307 780 759 Total non-interest expenses 6,860 6,722 20,389 20,454 Income before provision for income taxes 5,102 4,069 14,284 8,017 Provision for income taxes 1,467 1,209 4,077 2,399 Net income $ 3,635 $ 2,860 $ 10,207 $ 5,618 Earnings per share: Basic $ 0.42 $ 0.34 $ 1.19 $ 0.66 Diluted $ 0.41 $ 0.33 $ 1.17 $ 0.66 COMMUNITY WEST BANCSHARES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in 000's, except per share data) September 30 , June 30 , December 31 , September 30 , 2021 2021 2020 2020 Cash and cash equivalents $ 2,129 $ 2,638 $ 1,587 $ 4,974 Interest-earning deposits in other financial institutions 184,806 109,642 58,953 124,590 Investment securities 23,608 23,247 22,043 23,562 Loans: Commercial 66,713 68,537 80,851 84,133 Commercial real estate 473,338 444,127 402,148 394,547 SBA 9,589 10,732 11,851 12,547 Paycheck Protection Program (PPP) 36,109 71,106 69,542 75,683 Manufactured housing 292,476 286,552 280,284 275,472 Single family real estate 8,659 10,513 10,358 10,232 HELOC 3,717 3,685 3,861 3,857 Other (1) (6 ) (1,983 ) (1,318 ) (2,001 ) Total loans 890,595 893,269 857,577 854,470 Loans, net Held for sale 24,400 27,252 31,229 32,562 Held for investment 866,195 866,017 826,348 821,908 Less: Allowance for loan losses (10,283 ) (10,240 ) (10,194 ) (10,197 ) Net held for investment 855,912 855,777 816,154 811,711 NET LOANS 880,312 883,029 847,383 844,273 Other assets 44,735 44,472 45,469 44,700 TOTAL ASSETS $ 1,135,590 $ 1,063,028 $ 975,435 $ 1,042,099 Deposits Non-interest-bearing demand $ 219,826 $ 202,293 $ 181,837 $ 190,133 Interest-bearing demand 508,020 449,649 398,101 355,111 Savings 21,202 19,700 18,736 18,555 Certificates of deposit ( $250,000 or more) 15,956 19,791 30,536 81,426 Other certificates of deposit 166,938 173,145 136,975 103,955 Total deposits 931,942 864,578 766,185 749,180 Other borrowings 90,000 90,000 105,000 190,103 Other liabilities 14,881 12,993 15,243 16,099 TOTAL LIABILITIES 1,036,823 967,571 886,428 955,382 Stockholders' equity 98,767 95,457 89,007 86,717 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,135,590 $ 1,063,028 $ 975,435 $ 1,042,099 Common shares outstanding 8,616 8,589 8,473 8,473 Book value per common share $ 11.46 $ 11.11 $ 10.50 $ 10.23 (1) Includes consumer, other loans, securitized loans, and deferred fees 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, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Return on average common equity 14.77% 15.18% 13.33% 14.49% 13.45% Return on average assets 1.28% 1.37% 1.09% 1.29% 1.16% Efficiency ratio 57.31% 57.70% 61.65% 59.16% 68.78% Net interest margin 3.97% 4.24% 3.76% 4.13% 3.81% Three Months Ended Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended AVERAGE BALANCES September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Average assets $ 1,123,598 $ 1,041,986 $ 1,044,807 $ 1,057,168 $ 970,099 Average earning assets 1,091,792 1,009,968 1,011,765 1,025,337 939,959 Average total loans 882,058 891,948 854,273 883,280 827,244 Average deposits 920,165 840,104 733,486 851,391 732,449 Average common equity 97,636 93,851 85,328 94,149 83,972 EQUITY ANALYSIS September 30, 2021 June 30, 2021 September 30, 2020 Total common equity $ 98,767 $ 95,457 $ 86,717 Common stock outstanding 8,616 8,589 8,473 Book value per common share $ 11.46 $ 11.11 $ 10.23 ASSET QUALITY September 30, 2021 June 30, 2021 September 30, 2020 Nonaccrual loans, net $ 1,742 $ 1,797 $ 2,258 Nonaccrual loans, net/total loans 0.20% 0.20% 0.26% Other assets acquired through foreclosure, net $ 2,572 $ 2,572 $ 2,707 Nonaccrual loans plus other assets acquired through foreclosure, net $ 4,314 $ 4,369 $ 4,965 Nonaccrual loans plus other assets acquired through foreclosure, net/total assets 0.38% 0.41% 0.48% Net loan (recoveries)/charge-offs in the quarter $ (36) $ (48) $ (76) Net (recoveries)/charge-offs in the quarter/total loans (0.00%) (0.01%) (0.01%) Allowance for loan losses $ 10,283 $ 10,240 $ 10,197 Plus: Reserve for undisbursed loan commitments 106 78 92 Total allowance for credit losses $ 10,389 $ 10,318 $ 10,289 Allowance for loan losses/total loans held for investment 1.19% 1.18% 1.24% Allowance for loan losses/total loans held for investment excluding PPP loans 1.24% 1.29% 1.37% Allowance for loan losses/nonaccrual loans, net 590.34% 569.84% 451.59% Community West Bank * Community bank leverage ratio 8.59% 8.94% 8.79% Tier 1 leverage ratio 8.59% 8.94% 8.79% Tier 1 capital ratio 10.93% 11.21% 10.96% Total capital ratio 12.11% 12.46% 12.21% INTEREST SPREAD ANALYSIS September 30, 2021 June 30, 2021 September 30, 2020 Yield on total loans 5.21% 5.14% 5.08% Yield on investments 2.68% 2.76% 1.89% Yield on interest earning deposits 0.16% 0.15% 0.23% Yield on earning assets 4.30% 4.63% 4.37% Cost of interest-bearing deposits 0.40% 0.48% 0.77% Cost of total deposits 0.31% 0.37% 0.57% Cost of borrowings 0.87% 0.84% 0.98% Cost of interest-bearing liabilities 0.45% 0.53% 0.83% Cost of funds 0.36% 0.41% 0.66% * Capital ratios are preliminary until the Call Report is filed. Contact: Susan C. Thompson , EVP & CFO 805.692.5821 www.communitywestbank.com Source: Community West Bancshares

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