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

Rhea-AI Summary

Community West Bancshares (CWBC) reported a 10.2% increase in net income for Q4 2021, totaling $2.9 million or $0.33 per diluted share, compared to Q4 2020. Full year net income reached a record $13.1 million, up 58.9% year-over-year. The bank experienced strong organic loan growth, with new loan commitments of $41.6 million in Q4, offsetting $14.8 million in PPP loan forgiveness. The Bank's total assets increased 1.9% year-over-year to $1.16 billion. A quarterly cash dividend of $0.07 per share was declared. Credit quality metrics showed improvement with a decrease in non-accrual loans.

Positive

• Record net income of $13.1 million for full year 2021, a 58.9% increase.
• Strong organic loan growth with $41.6 million in new loan commitments in Q4 2021.
• Decrease in non-accrual loans to $565,000, down from $1.7 million in Q3 2021.

Negative

• Net income decreased from $3.6 million in Q3 to $2.9 million in Q4 2021.
• Net interest income decline to $10.7 million in Q4 from $10.9 million in Q3.
• Provision expense increased to $26,000 in Q4 from $7,000 in Q3 2021.

GOLETA, Calif., Jan. 28, 2022 (GLOBE NEWSWIRE) -- Community West Bancshares (“Community West” or the “Company”), (NASDAQ: CWBC), parent company of Community West Bank (the “Bank”), today reported net income increased 10.2% to $2.9 million, or $0.33 per diluted share, for the fourth quarter, compared to $2.6 million, or $0.31 diluted share, for the fourth quarter of 2020, and decreased compared to $3.6 million, or $0.41 per diluted share, for the third quarter of 2021. For the full year 2021, the Company reported record net income of $13.1 million, or $1.50 per diluted share, an increase of 58.9% compared to $8.2 million, or $0.97 per diluted share, for the full year 2020.

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

Fourth Quarter 2021 Financial Highlights:

• Net income was $2.9 million, or $0.33 per diluted share in the fourth quarter, compared to $3.6 million, or $0.41 per diluted share in third quarter, and $2.6 million, or $0.31 per diluted share in the fourth quarter of 2020.
• Net interest income for the quarter was $10.7 million compared to $10.9 million in the third quarter and $9.8 million in the fourth quarter of 2020.
• Provision expense for the fourth quarter was $26,000, compared to $7,000 in the prior quarter and a $44,000 negative provision in the fourth quarter of 2020.
• The allowance for loan losses (“ALL”) was 1.20% of total loans held for investment at December 31, 2021, and 1.23% of total loans held for investment, excluding the $21.3 million of Paycheck Protection Program (“PPP”) loans which are 100% guaranteed by the Small Business Administration (“SBA”).*
• Non-interest-bearing demand deposits were $209.9 million at December 31, 2021, compared to $219.8 million at September 30, 2021, and $181.8 million at December 31, 2020.
• Total loans increased $1.5 million to $892.1 million at December 31, 2021, compared to $890.6 million at September 30, 2021, and increased $34.5 million compared to $857.6 million at December 31, 2020.
• Book value per common share increased to $11.72 at December 31, 2021, compared to $11.46 at September 30, 2021, and $10.50 at December 31, 2020.
• The Bank’s Tier 1 leverage ratio was 8.56% at December 31, 2021, compared to 8.59% at September 30, 2021, and 9.29% at December 31, 2020.
• Net non-accrual loans improved to $565,000 at December 31, 2021, compared to $1.7 million at September 30, 2021, and $3.7 million at December 31, 2020.
  

*Non GAAP

COVID-19 Pandemic and PPP loan Update

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

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

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

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

Sectors Under Focus (Excluding PPP Loans)
As of 12/31/21 (in thousands)		Loans Outstanding		$ Non-accrual	% Non- accrual			$ Classified	% Classified			$ Deferrals	% Deferral
Healthcare	$	50,126	$	-	0.00	%	$	1,995	3.98	%	$	-	0.00	%
Senior/Assted Living Facilities		23,505		-	0.00	%			0.00	%		-	0.00	%
Medical Offices		16,769		-	0.00	%		233	1.39	%		-	0.00	%
General Healthcare		9,852		-	0.00	%		1,762	17.88	%		-	0.00	%
Hospitality		49,392		918	1.86	%		3,567	7.22	%		-	0.00	%
Lodging		40,936		-	0.00	%		2,486	6.07	%		-	0.00	%
Restaurants		8,456		918	10.86	%		1,081	12.78	%		-	0.00	%
Retail Commercial Real Estate		45,835		0	0.00	%		7,739	16.88	%			0.00	%
Retail Services		11,870		0	0.00	%		1	0.01	%		-	0.00	%
Schools		1,115		0	0.00	%		-	0.00	%		-	0.00	%
Energy		85		0	0.00	%		85	100.00	%		-	0.00	%
Total	$	158,423	$	918	0.58	%	$	13,387	8.45	%	$	-	0.00	%

Income Statement

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

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

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

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

Balance Sheet

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

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

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

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

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

Credit Quality

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

At December 31, 2021, asset quality reflected improvement due to positive loan risk rating migrations during the fourth quarter. Total classified loans decreased year-over-year due to proactive risk rating of loans showing signs of financial stress during the pandemic, while net non-accrual loans also decreased year over year. All loans rated “Watch” or worse are monitored monthly and proactive measures are taken when any signs of deterioration to the credit are discovered.

The Company recorded a provision expense of $26,000 in the fourth quarter compared to a provision expense of $7,000 in third quarter and a negative provision expense of $44,000 in the fourth quarter of 2020. The allowance for credit losses, including the reserve for undisbursed loans, was $10.5 million, or 1.20% of total loans held for investment, at December 31, 2021, and 1.23% of total loans held for investment excluding PPP loans. Net non-accrual loans, plus net other assets acquired through foreclosure, decreased 28.5% to $3.1 million at December 31, 2021, compared to $4.3 million at September 30, 2021, and decreased 50.9% compared to $6.3 million at December 31, 2020.

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

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

Cash Dividend Declared

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

Stock Repurchase Program

On August 27, 2021, the Company announced that its Board of Directors had extended the stock repurchase plan until August 31, 2023. The Company did not repurchase shares during the fourth quarter of 2021, leaving $1.4 million available under the previously announced repurchase program.

Company Overview

Community West Bancshares is a financial services company with headquarters in Goleta, California. The Company is the holding company for Community West Bank, the largest publicly traded community bank serving California’s Central Coast area of Ventura, Santa Barbara and San Luis Obispo counties. Community West Bank has seven full-service California branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard and Paso Robles. The principal business activities of the Company are Relationship Banking, Manufactured Housing lending and Government Guaranteed lending.

Industry Accolades

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

Community West Bank was awarded a “Super Premier Performance” rating by The Findley Reports. For 52 years, The Findley Reports has been recognizing the financial performance of banking institutions in California and the Western United States. Community West Bank is rated 5-star Superior by Bauer Financial.

Safe Harbor Disclosure

This release contains certain forward-looking statements about the Company and the Bank that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements reflect management's current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, risks from the COVID-19 pandemic, the strength of the United States economy in general and of the local economies in which we conduct operations, the effect of, and changes in, trade, monetary and fiscal policies and laws, including changes in interest rate policies of the Board of Governors of the Federal Reserve System, inflation, weather, natural disasters, climate change, increased unemployment, deterioration in credit quality of our loan portfolio and/or the value of the collateral securing the repayment of those loans, reduction in the value of our investment securities, the costs and effects of litigation and of adverse outcomes of such litigation, the cost and ability to attract and retain key employees, a breach of our operational or security systems, policies or procedures including cyber-attacks on us or third party vendors or service providers, regulatory or legal developments, United States tax policies, including our effective income tax rate, and our ability to implement and execute our business plan and strategy and expand our operations as provided therein. Actual results may differ materially from those set forth or implied in the forward-looking statements as a result of a variety of factors including the risk factors contained in documents filed by the Company with the Securities and Exchange Commission and are available in the “Investor Relations” section of our website, https://www.communitywest.com/sec-filings/documents/default.aspx. The Company is under no obligation (and expressly disclaims any obligation) to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except per share data)
		December 31,				September 30,				December 31,
			2021				2021				2020
Cash and cash equivalents		$	1,621			$	2,129			$	1,587
Interest-earning deposits in other financial institutions			206,754				184,806				58,953
Investment securities			22,773				23,608				22,043
Loans:
Commercial			72,423				66,713				80,851
Commercial real estate			480,801				473,338				402,148
SBA			8,580				9,589				11,851
Paycheck Protection Program (PPP)			21,317				36,109				69,542
Manufactured housing			297,363				292,476				280,284
Single family real estate			8,663				8,659				10,358
HELOC			3,579				3,717				3,861
Other (1)			(643	)			(6	)			(1,318	)
Total loans			892,083				890,595				857,577
Loans, net
Held for sale			23,408				24,400				31,229
Held for investment			868,675				866,195				826,348
Less: Allowance for loan losses			(10,404	)			(10,283	)			(10,194	)
Net held for investment			858,271				855,912				816,154
NET LOANS			881,679				880,312				847,383
Other assets			44,225				44,735				45,469
TOTAL ASSETS		$	1,157,052			$	1,135,590			$	975,435
Deposits
Non-interest-bearing demand		$	209,893			$	219,826			$	181,837
Interest-bearing demand			537,508				508,020				398,101
Savings			23,675				21,202				18,736
Certificates of deposit ($250,000 or more)			17,612				15,956				30,536
Other certificates of deposit			161,443				166,938				136,975
Total deposits			950,131				931,942				766,185
Other borrowings			90,000				90,000				105,000
Other liabilities			15,546				14,881				15,243
TOTAL LIABILITIES			1,055,677				1,036,823				886,428
Stockholders' equity			101,375				98,767				89,007
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,157,052			$	1,135,590			$	975,435
Common shares outstanding			8,650				8,616				8,473
Book value per common share		$	11.72			$	11.46			$	10.50
(1) Includes consumer, other loans, securitized loans, and deferred fees

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
			Three Months Ended
			December 31,			September 30,			June 30,				March 31,				December 31,
			2021			2021			2021				2021				2020
Interest income
Loans, including fees			$	11,258		$	11,576		$	11,433			$	10,856			$	10,790
Investment securities and other				279			259			218				199				196
Total interest income				11,537			11,835			11,651				11,055				10,986
Deposits				614			708			771				742				815
Other borrowings				206			198			194				271				378
Total interest expense				820			906			965				1,013				1,193
Net interest income				10,717			10,929			10,686				10,042				9,793
Provision (credit) for loan losses				26			7			(41	)			(173	)			(44	)
Net interest income after provision for loan losses				10,691			10,922			10,727				10,215				9,837
Non-interest income
Other loan fees				343			383			310				313				383
Gains from loan sales, net				109			118			130				118				209
Document processing fees				123			145			138				106				129
Service charges				84			77			74				67				83
Other				285			317			220				293				166
Total non-interest income				944			1,040			872				897				970
Non-interest expenses
Salaries and employee benefits				4,884			4,478			4,379				4,565				4,594
Occupancy, net				893			802			780				779				751
Professional services				441			434			430				340				399
Data processing				251			292			332				340				254
Depreciation				186			191			198				205				202
FDIC assessment				146			127			121				91				165
Advertising and marketing				198			189			164				183				110
Stock-based compensation				129			63			58				68				68
Other				478			284			207				289				526
Total non-interest expenses				7,606			6,860			6,669				6,860				7,069
Income before provision for income taxes				4,029			5,102			4,930				4,252				3,738
Provision for income taxes				1,135			1,467			1,379				1,231				1,111
Net income			$	2,894		$	3,635		$	3,551			$	3,021			$	2,627
Earnings per share:
Basic			$	0.34		$	0.42		$	0.42			$	0.36			$	0.31
Diluted			$	0.33		$	0.41		$	0.41			$	0.35			$	0.31

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
		Three Months Ended							Twelve Months Ended
		December 31,			December 31,				December 31,				December 31,
		2021			2020				2021				2020
Interest income
Loans, including fees		$	11,258		$	10,790			$	45,123			$	42,948
Investment securities and other			279			196				955				906
Total interest income			11,537			10,986				46,078				43,854
Deposits			614			815				2,835				5,483
Other borrowings			206			378				869				1,782
Total interest expense			820			1,193				3,704				7,265
Net interest income			10,717			9,793				42,374				36,589
Provision (credit) for loan losses			26			(44	)			(181	)			1,223
Net interest income after provision for loan losses			10,691			9,837				42,555				35,366
Non-interest income
Other loan fees			343			383				1,349				1,546
Gains from loan sales, net			109			209				475				920
Document processing fees			123			129				512				513
Service charges			84			83				302				354
Other			285			166				1,115				579
Total non-interest income			944			970				3,753				3,912
Non-interest expenses
Salaries and employee benefits			4,884			4,594				18,306				17,968
Occupancy, net			893			751				3,254				3,036
Professional services			441			399				1,645				1,801
Data processing			251			254				1,215				1,055
Depreciation			186			202				780				821
FDIC assessment			146			165				485				565
Advertising and marketing			198			110				734				673
Stock-based compensation			129			68				318				319
Other			478			526				1,258				1,285
Total non-interest expenses			7,606			7,069				27,995				27,523
Income before provision for income taxes			4,029			3,738				18,313				11,755
Provision for income taxes			1,135			1,111				5,212				3,510
Net income		$	2,894		$	2,627			$	13,101			$	8,245
Earnings per share:
Basic		$	0.34		$	0.31			$	1.53			$	0.97
Diluted		$	0.33		$	0.31			$	1.50			$	0.97

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
	Three Months Ended												Twelve Months Ended
PERFORMANCE MEASURES AND RATIOS	Dec 31, 2021				Sep 30, 2021				Dec 31, 2020				Dec 31, 2021				Dec 31, 2020
Return on average common equity		11.42	%			14.77	%			11.85	%			13.68	%			9.70	%
Return on average assets		0.99	%			1.28	%			1.07	%			1.21	%			0.85	%
Efficiency ratio		65.23	%			57.31	%			65.68	%			60.69	%			67.96	%
Net interest margin		3.77	%			3.97	%			4.13	%			4.03	%			3.89	%
	Three Months Ended												Twelve Months Ended
AVERAGE BALANCES	Dec 31, 2021				Sep 30, 2021				Dec 31, 2020				Dec 31, 2021				Dec 31, 2020
Average assets	$	1,157,909			$	1,123,598			$	977,736			$	1,082,560			$	972,019
Average earning assets		1,126,473				1,091,792				944,073				1,050,829				940,993
Average total loans		888,519				882,058				845,620				884,601				831,863
Average deposits		950,601				920,165				726,223				876,397				730,884
Average common equity		100,579				97,636				88,171				95,770				85,027
EQUITY ANALYSIS	Dec 31, 2021				Sep 30, 2021				Dec 31, 2020
Total common equity	$	101,375			$	98,767			$	89,007
Common stock outstanding		8,650				8,616				8,473
Book value per common share	$	11.72			$	11.46			$	10.50
ASSET QUALITY	Dec 31, 2021				Sep 30, 2021				Dec 31, 2020
Nonaccrual loans, net	$	565			$	1,742			$	3,665
Nonaccrual loans, net/total loans		0.06%				0.20%				0.43%
Other assets acquired through foreclosure, net	$	2,518			$	2,572			$	2,614
Nonaccrual loans plus other assets acquired through foreclosure, net	$	3,083			$	4,314			$	6,279
Nonaccrual loans plus other assets acquired through foreclosure, net/total assets		0.27%				0.38%				0.64%
Net loan (recoveries)/charge-offs in the quarter	$	(96)			$	(36)			$	(41)
Net (recoveries)/charge-offs in the quarter/total loans		(0.01%)				(0.00%)				(0.00%)
Allowance for loan losses	$	10,404			$	10,283			$	10,194
Plus: Reserve for undisbursed loan commitments		94				106				92
Total allowance for credit losses	$	10,498			$	10,389			$	10,286
Allowance for loan losses/total loans held for investment		1.20%				1.19%				1.23%
Allowance for loan losses/total loans held for investment excluding PPP loans		1.23%				1.24%				1.35%
Allowance for loan losses/nonaccrual loans, net		1842.50%				590.34%				278.14%
Community West Bank *
Community bank leverage ratio	N/A					8.59%				9.29%
Tier 1 leverage ratio		8.56%				8.59%				9.29%
Tier 1 capital ratio		11.02%				10.93%				11.02%
Total capital ratio		12.19%				12.11%				12.27%
INTEREST SPREAD ANALYSIS	Dec 31, 2021				Sep 30, 2021				Dec 31, 2020
Yield on total loans		5.03%				5.21%				5.08%
Yield on investments		2.78%				2.68%				2.46%
Yield on interest earning deposits		0.16%				0.16%				0.15%
Yield on earning assets		4.06%				4.30%				4.63%
Cost of interest-bearing deposits		0.34%				0.40%				0.60%
Cost of total deposits		0.26%				0.31%				0.45%
Cost of borrowings		0.91%				0.87%				1.03%
Cost of interest-bearing liabilities		0.40%				0.45%				0.69%
Cost of funds		0.31%				0.36%				0.54%
* Capital ratios are preliminary until the Call Report is filed.

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

FAQ

What is the net income for Community West Bancshares in Q4 2021?

Community West Bancshares reported a net income of $2.9 million for Q4 2021.

How did the net income for 2021 compare to 2020?

The net income for 2021 was $13.1 million, a 58.9% increase compared to $8.2 million in 2020.

What was the cash dividend declared by Community West Bancshares?

The company's Board of Directors declared a cash dividend of $0.07 per common share.

What impact did PPP loans have on Community West Bancshares in Q4 2021?

The company had $14.8 million in PPP loans forgiven, impacting its loan generation strategy.

What was the status of non-accrual loans for Community West Bancshares?

Non-accrual loans improved to $565,000 at the end of Q4 2021, down from $1.7 million in Q3 2021.