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

About this update from 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 AverageBalance Interest AverageYield/Cost AverageBalance Interest AverageYield/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 Source: Community West Bancshares

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