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

Rhea-AI Summary

Community West Bancshares (NASDAQ: CWBC) reported a 27.1% increase in net income to $3.6 million or $0.41 per diluted share for 3Q21, compared to the previous year. Year-to-date earnings reached $10.2 million, up 81.7% from 2020. Key factors included increased net interest income of $10.9 million and new loan commitments of $62.4 million. However, total loans decreased slightly by $2.7 million. The company declared a quarterly cash dividend of $0.07 per share, with stock performance recognized by industry accolades.

Positive

• Net income increased 27.1% to $3.6 million for 3Q21.
• Year-to-date net income rose 81.7% to $10.2 million.
• Net interest income increased to $10.9 million in 3Q21, a 18.3% rise year-over-year.
• Total deposits grew 7.8% to $931.9 million at September 30, 2021.
• Book value per common share rose to $11.46, up from $10.23 the previous year.

Negative

• Total loans decreased by $2.7 million to $890.6 million in 3Q21 compared to the previous quarter.
• Net interest margin contracted by 27 basis points from the prior quarter to 3.97%.

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

FAQ

What were Community West Bancshares' earnings for 3Q21?

Community West Bancshares reported net income of $3.6 million, or $0.41 per diluted share for 3Q21.

How much did the total deposits increase for Community West Bancshares?

Total deposits increased by 7.8% to $931.9 million at September 30, 2021.

What is the status of loan growth for Community West Bancshares?

Total loans decreased by $2.7 million to $890.6 million in 3Q21.

What was the book value per common share for Community West Bancshares?

The book value per common share increased to $11.46 at September 30, 2021.

Did Community West Bancshares declare a dividend in 2021?

Yes, the company declared a quarterly cash dividend of $0.07 per common share payable on November 30, 2021.