GlobeNewswire Inc | Aug 2, 2021 09:00AM EDT

August 02, 2021

GOLETA, Calif., Aug. 02, 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 17.5% to $3.6 million, or $0.41 per diluted share, for the second quarter of 2021 (2Q21), compared to $3.0 million, or $0.35 per diluted share, for the first quarter of 2021 (1Q21), and increased 206.1% compared to $1.2 million, or $0.14 per diluted share, for the second quarter of 2020 (2Q20). For the first six months of 2021, the Company reported net income of $6.6 million, or $0.76 per diluted share, an increase of 138.3% compared to $2.8 million, or $0.32 per diluted share, for the first six months of 2020.

We reported strong second quarter and year-to-date earnings, with focused revenue generation and balance sheet management, which resulted in net interest margin expansion, stated Martin E. Plourd, President and Chief Executive Officer. We are extremely proud of our entire team, who have stepped up to meet the challenges of the last 15 months. Overall, these factors contributed to an annualized return on average assets of 1.37% and an annualized return on average equity of 15.18% for the current quarter. Our focus for the second half of the year remains on deploying excess liquidity through increased lending activity, while maintaining our strong net interest margin and managing asset quality. As the vaccine rollout continues, and COVID-19 restrictions continue to lift in the markets which we serve, we remain optimistic for growth during the second half of 2021.

Second Quarter 2021 Financial Highlights:

-- Net income was $3.6 million, or $0.41 per diluted share in 2Q21, compared to $3.0 million, or $0.35 per diluted share in 1Q21, and $1.2 million, or $0.14 per diluted share in 2Q20. -- Net interest income increased to $10.7 million for 2Q21, compared to $10.0 million for 1Q21 and $8.8 million in 2Q20. -- A provision credit for loan losses of $41,000 was booked for 2Q21, compared to a provision credit for loan losses of $173,000 for 1Q21, and a provision for loan losses of $762,000 for 2Q20. The resulting allowance was 1.18% of total loans held for investment at June 30, 2021, and 1.29% of total loans held for investment, excluding the $71.1 million of Paycheck Protection Program (PPP) loans at June 30, 2021, which are 100% guaranteed by the Small Business Administration (SBA).* -- Net interest margin improved to 4.24% for 2Q21, compared to 4.19% for 1Q21, and 3.72% for 2Q20. -- Total demand deposits increased $14.8 million to $651.9 million at June 30, 2021, compared to $637.1 million at March 31, 2021, and increased $147.9 million compared to $504.1 million at June 30, 2020. -- Total loans increased $5.4 million to $893.3 million at June 30, 2021, compared to $887.8 million at March 31, 2021, and increased $37.2 million compared to $856.0 million at June 30, 2020. -- Book value per common share increased to $11.11 at June 30, 2021, compared to $10.77 at March 31, 2021, and $9.93 at June 30, 2020. -- The Banks community bank leverage ratio (CBLR) was 8.94% at June 30, 2021, compared to 8.97% at March 31, 2021, and 8.94% at June 30, 2020. -- Net non-accrual loans were $1.8 million at June 30, 2021 and March 31, 2021, respectively, and $2.6 million at June 30, 2020. -- Other assets acquired through foreclosure, net, was $2.6 million at June 30, 2021 and March 31, 2021, respectively, and $2.7 million at June 30, 2020.

*Non GAAP

COVID-19 Pandemic and PPP loan Update

Contributing to our success in the first half of 2021, and previously in 2020, was our participation in the SBAs PPP program, said Plourd. As of June 30, 2021, we had 450 PPP loans totaling $71.1 million remaining on our balance sheet from both the first and second rounds of funding. During the second quarter of 2021, $21.8 million of the PPP loans were forgiven by the SBA. We recognized $0.9 million of income in net fees related to PPP loans during 2Q21, compared to $0.8 million of income in net fees during 1Q21, and have $2.1 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 first and second quarters of 2021 we generated 433 second round PPP loans totaling $50 million to our clients. We remained focused on delivering an exceptional client experience throughout the PPP process, and this approach, along with our clients referrals to others, helped bring new clients into the Bank, said Plourd.

We remain focused on assessing the risks in our loan portfolio and working with our clients who are experiencing financial hardship, said William F. Filippin, Chief Credit and Chief Administrative Officer. At our peak in July 2020, the Company had 269 loans on payment deferral for a total of $158.5 million. As of June 30, 2021, one loan remained on deferral for a total of $610,000.

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 June 30, 2021, the Banks loans to these industries were $166 million, which is 18.6% of its $893.3 million loan portfolio.

Of the selected industry loans, $1.4 million, or 0.84%, are on non-accrual. Also, of the selected industry loans, the classified loans are $15.2 million, or 9.18%. Additional detail by industry at June 30, 2021 is included in the table below.

Sectors Under Focus (Excluding PPP Loans)As of 6/30/21 Loans $ % $ % $ %(in Outstanding Non-accrual Non-accrual Classified Classified Deferrals Deferralthousands)Healthcare $ 51,031 $ 0 0.00 % $ 2,164 4.24 % $ - 0.00 %Senior/Assted 23,470 $ 0 0.00 % - 0.00 % $ - 0.00 %LivingFacilitiesMedical 18,779 $ 0 0.00 % 264 1.41 % $ - 0.00 %OfficesGeneral 8,782 $ 0 0.00 % 1,900 21.64 % $ - 0.00 %HealthcareHospitality 49,903 $ 1,388 2.78 % 5,103 10.23 % $ - 0.00 %Lodging 39,759 $ 1,386 3.49 % 2,491 6.27 % $ - 0.00 %Restaurants 10,144 $ 2 0.02 % 2,612 25.75 % $ - 0.00 %RetailCommercial 50,072 $ 0 0.00 % 7,865 15.71 % $ 610 1.22 %Real EstateRetail 13,151 $ 0 0.00 % 17 0.13 % $ - 0.00 %ServicesSchools 1,149 $ 0 0.00 % - 0.00 % $ - 0.00 %Energy 742 $ 0 0.00 % 93 12.53 % $ - 0.00 %Total $ 166,048 $ 1,388 0.84 % $ 15,242 9.18 % $ 610 0.37 %

Income Statement

Net interest income improved to $10.7 million in 2Q21, compared to $10.0 million in 1Q21, and $8.8 million in 2Q20. In the first six months of 2021, net interest income increased 20.2% to $20.7 million, compared to $17.2 million in the first six months of 2020.

Due to the change in loan mix in the second quarter and positive migration out of Watch or worse loan risk rating categories in the loan portfolio, as well as $48,000 of net loan recoveries, we recorded a provision credit for loan losses of $41,000 during 2Q21. This compares to a provision credit for loan losses of $173,000 in 1Q21 and a provision for loan losses of $762,000 in 2Q20. We feel that we are well positioned as we navigate through the recovery from the residual effects of the pandemic, with loan loss reserves, excluding PPP loans, of 1.29% at June 30, 2021, said Susan C. Thompson, Chief Financial Officer.

Non-interest income totaled $872,000 in 2Q21, compared to $897,000 in 1Q21, and $640,000 in 2Q20. Other loan fees were $310,000 for 2Q21, compared to $313,000 in 1Q21, and $283,000 in 2Q20. Gain on sale of loans was $130,000 in 2Q21, compared to $118,000 in 1Q21, and $97,000 in 2Q20. Service charge fee income for 2Q21 was $74,000, compared to $67,000 in 1Q21 and $62,000 in 2Q20. Non-interest income increased 11.3% to $1.8 million in the first six months of 2021, compared to $1.6 million in the first six months of 2020.

Net interest margin was 4.24% for 2Q21, a 5-basis point improvement compared to 1Q21, and a 52-basis point improvement compared to 2Q20. PPP loan payoffs, and our continued focus on reducing our cost of funds rate contributed to the net interest margin expansion during the second quarter, said Thompson. The cost of funds for 2Q21 also improved 5-basis points to 0.41%, compared to 0.46% for 1Q21, and improved by 50 basis points compared to 0.91% for 2Q20. PPP loans included fees accounting for 10 basis points of 2Q21 net interest margin, and 9 basis points of 1Q21 net interest margin. In the first six months of 2021, the net interest margin improved 38 basis points to 4.22%, compared to the first six months of 2020. We will continue to look for opportunities for further reduction in our cost of funds, said Thompson.

Non-interest expense totaled $6.7 million in 2Q21, compared to $6.9 million in 1Q21, and $7.0 million in 2Q20. The Companys efficiency ratio was 57.70% for the second quarter of 2021, compared to 62.71% for the first quarter of 2021 and 74.33% for the second quarter of 2020. In the first six months of 2021, non-interest expense was $13.5 million, compared to $13.7 million in the first six months of 2020. The Company has continued to focus on expense control and gaining efficiencies through use of technology and process improvement.

Balance Sheet

Total assets increased $45.0 million, or 4.4%, to $1.06 billion at June 30, 2021, compared to $1.02 billion at March 31, 2021, and remained unchanged compared to June 30, 2020. Total loans increased $5.4 million, to $893.3 million at June 30, 2021, compared to $887.8 million at March 31, 2021, and increased $37.2 million, or 4.4%, compared to $856.0 million at June 30, 2020.

Loan growth was solid during the quarter, primarily from growth in commercial real estate and manufactured housing loan portfolios which outweighed the $21.8 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 13.1% from year ago levels to $444.1 million at June 30, 2021, and comprise 49.7% of the total loan portfolio. Manufactured housing loans were up 7.2% from year ago levels to $286.6 million, and represent 32.1% of total loans. PPP loans were $71.1 million at June 30, 2021, and represent 8.0% of total loans down from $94.5 million at March 31, 2021 and $75.1 million at June 30, 2020. Commercial loans (which include agriculture loans) were down 27.9% from year ago levels to $68.5 million, and represent 7.7% 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 $60.1 million, or 7.5%, to $864.6 million at June 30, 2021, compared to $804.5 million at March 31, 2021, and increased $114.4 million, or 15.3% compared to $750.2 million at June 30, 2020. Non-interest-bearing demand deposits were $202.3 million at June 30, 2021, a $5.7 million increase compared to $196.6 million at March 31, 2021, and a $9.5 million increase compared to $192.8 million at June 30, 2020. Interest-bearing demand deposits increased $9.1 million to $449.6 million at June 30, 2021, compared to $440.5 million at March 31, 2021, and increased $138.4 million compared to $311.3 million at June 30, 2020. Demand deposit balances remained at record levels, with a second round of PPP lending, federal stimulus payments and new relationships established from our business development efforts, said Thompson.

Certificates of deposit (CDs), which include brokered deposits, increased $45.4 million during the quarter to $192.9 million at June 30, 2021, compared to $147.5 million at March 31, 2021, and decreased $35.3 million compared to $228.2 million at June 30, 2020. The increase in CDs compared to the prior quarter-end was due to $50.8 million of new low cost broker deposits strategically structured to lengthen the Banks liabilities to match fund longer term fixed rate assets and protect the margin against potential future rising rates. The decrease in CDs at June 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 $95.5 million at June 30, 2021, compared to $91.8 million at March 31, 2021, and $84.1 million at June 30, 2020. Book value per common share increased to $11.11 at June 30, 2021, compared to $10.77 at March 31, 2021, and $9.93 at June 30, 2020. The increase in capital will be utilized to support balance sheet growth and support dividend payments.

Credit Quality

While all asset quality metrics improved or remained unchanged during the quarter, we continue to monitor our loan portfolio and asset quality metrics very closely, added Plourd. Our discipline of managing loans as soon as a problem is indicated has helped to keep us from incurring a loss. This strategy is testament to our loan grading system, and is reflective in our historic low loss ratio.

At June 30, 2021, asset quality reflected improvement due to positive loan risk rating migrations during the second quarter. Total classified loans increased year-over-year due to proactive risk rating of loans showing signs of financial stress during the pandemic, while net non-accrual loans decreased year over year. Although criticized and classified loans increased during the year, the increase was not systemic or indicative of broader risk within the portfolio. All loans rated Watch or worse are monitored monthly and proactive measures are taken when any signs of deterioration to the credit are discovered.

Due to positive loan risk rating migrations and $48,000 of net loan recoveries, the Company recorded a provision credit for loan losses of $41,000 in 2Q21. This compared to a provision credit for loan losses of $173,000 in 1Q21, and a provision for loan losses of $762,000 in 2Q20. The allowance for credit losses, including the reserve for undisbursed loans, was $10.3 million, or 1.18% of total loans held for investment, at June 30, 2021, and 1.29% of total loans held for investment excluding PPP loans. Net non-accrual loans, plus net other assets acquired through foreclosure, was $4.4 million at June 30, 2021 and March 31, 2021, respectively, and decreased 18.3% compared to $5.3 million at June 30, 2020.

There was $1.8 million in net non-accrual loans as of June 30, 2021 and March 31, 2021, respectively compared to $2.6 million at June 30, 2020. Of the $1.8 million of net non-accrual loans at June 30, 2021, $1.4 million were SBA 504 loans, $0.1 million were manufactured housing loans and $0.3 million were single family real estate loans.

There was $2.6 million in other assets acquired through foreclosure as of June 30, 2021 and March 31, 2021, respectively, and $2.7 million at June 30, 2020. The majority of this balance relates to one property in the amount of $2.3 million.

Cash Dividend Declared

The Companys Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable August 31, 2021 to common shareholders of record on August 12, 2021.

Stock Repurchase Program

The Company has authorized $4.5 million under the repurchase program and has $1.4 million remaining for repurchases. The Company did not repurchase stock during the first six months of 2021.

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 Californias 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 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 managements 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 BANCSHARESCONDENSEDCONSOLIDATED INCOME STATEMENTS(unaudited) (in 000?s, except per share data) Three Months Ended June 30, March 31, December September June 30, 31, 30, 2021 2021 2020 2020 2020 Interest income Loans, including $ 11,433 $ 10,856 $ 10,790 $ 10,909 $ 10,585feesInvestmentsecurities and 218 199 196 207 192otherTotal interest 11,651 11,055 10,986 11,116 10,777income Deposits 771 742 815 1,046 1,500Other borrowings 194 271 378 518 496Total interest 965 1,013 1,193 1,564 1,996expenseNet interest 10,686 10,042 9,793 9,552 8,781incomeProvision(credit) for loan (41 ) (173 ) (44 ) 113 762lossesNet interestincome after 10,727 10,215 9,837 9,439 8,019provision forloan lossesNon-interest incomeOther loan fees 310 313 383 539 283Gains from loan 130 118 209 424 97sales, netDocument 138 106 129 152 108processing feesService charges 74 67 83 75 62Other 220 293 166 162 90Totalnon-interest 872 897 970 1,352 640incomeNon-interest expensesSalaries and 4,379 4,565 4,594 4,402 4,574employee benefitsOccupancy, net 780 779 751 751 776Professional 430 340 399 460 559servicesData processing 332 340 254 258 260Depreciation 198 205 202 205 206FDIC assessment 121 91 165 123 133Advertising and 164 183 110 145 265marketingStock-based 58 68 68 71 95compensationOther 207 289 526 307 135Totalnon-interest 6,669 6,860 7,069 6,722 7,003expensesIncome beforeprovision for 4,930 4,252 3,738 4,069 1,656income taxesProvision for 1,379 1,231 1,111 1,209 496income taxesNet income $ 3,551 $ 3,021 $ 2,627 $ 2,860 $ 1,160Earnings per share:Basic $ 0.42 $ 0.36 $ 0.31 $ 0.34 $ 0.14Diluted $ 0.41 $ 0.35 $ 0.31 $ 0.33 $ 0.14



COMMUNITY WEST BANCSHARES CONDENSED CONSOLIDATED INCOME STATEMENTS(unaudited) (in 000?s, except per share data) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Interest income Loans, including fees $ 11,433 $ 10,585 $ 22,289 $ 21,249Investment securities and other 218 192 417 503Total interest income 11,651 10,777 22,706 21,752 Deposits 771 1,500 1,513 3,622Other borrowings 194 496 465 886Total interest expense 965 1,996 1,978 4,508Net interest income 10,686 8,781 20,728 17,244Provision (credit) for loan (41 ) 762 (214 ) 1,154lossesNet interest income after 10,727 8,019 20,942 16,090provision for loan lossesNon-interest income Other loan fees 310 283 623 624Gains from loan sales, net 130 97 248 287Document processing fees 138 108 244 232Service charges 74 62 141 196Other 220 90 513 251Total non-interest income 872 640 1,769 1,590Non-interest expenses Salaries and employee benefits 4,379 4,574 8,944 8,972Occupancy, net 780 776 1,559 1,534Professional services 430 559 770 942Data processing 332 260 672 543Depreciation 198 206 403 414FDIC assessment 121 133 212 277Advertising and marketing 164 265 347 418Stock-based compensation 58 95 126 180Other 207 135 496 452Total non-interest expenses 6,669 7,003 13,529 13,732Income before provision for 4,930 1,656 9,182 3,948income taxesProvision for income taxes 1,379 496 2,610 1,190Net income $ 3,551 $ 1,160 $ 6,572 $ 2,758Earnings per share: Basic $ 0.42 $ 0.14 $ 0.77 $ 0.33Diluted $ 0.41 $ 0.14 $ 0.76 $ 0.32



COMMUNITY WEST BANCSHARESCONDENSEDCONSOLIDATED BALANCE SHEETS(unaudited) (in 000?s, except per share data) June 30, March 31, December June 30, 31, 2021 2021 2020 2020 Cash and cash $ 2,638 $ 2,607 $ 1,587 $ 4,679 equivalentsInterest-earningdeposits in other 109,642 71,128 58,953 142,823 financialinstitutionsInvestment 23,247 21,570 22,043 24,221 securitiesLoans: Commercial 68,537 77,579 80,851 95,114 Commercial real 444,127 407,336 402,148 392,789 estateSBA 10,732 11,566 11,851 13,013 Paycheck Protection 71,106 94,507 69,542 75,149 Program (PPP)Manufactured housing 286,552 284,583 280,284 267,343 Single family real 10,513 10,845 10,358 11,078 estateHELOC 3,685 3,846 3,861 3,918 Other (1) (1,983 ) (2,414 ) (1,318 ) (2,375 )Total loans 893,269 887,848 857,577 856,029 Loans, net Held for sale 27,252 29,767 31,229 35,090 Held for investment 866,017 858,081 826,348 820,939 Less: Allowance for (10,240 ) (10,233 ) (10,194 ) (10,008 )loan lossesNet held for 855,777 847,848 816,154 810,931 investmentNET LOANS 883,029 877,615 847,383 846,021 Other assets 44,472 45,102 45,469 43,103 TOTAL ASSETS $ 1,063,028 $ 1,018,022 $ 975,435 $ 1,060,847 Deposits Non-interest-bearing $ 202,293 $ 196,617 $ 181,837 $ 192,806 demandInterest-bearing 449,649 440,502 398,101 311,266 demandSavings 19,700 19,858 18,736 17,862 Certificates ofdeposit ($250,000 or 19,791 20,072 30,536 86,046 more)Other certificates 173,145 127,472 136,975 142,178 of depositTotal deposits 864,578 804,521 766,185 750,158 Other borrowings 90,000 105,000 105,000 210,103 Other liabilities 12,993 16,710 15,243 16,493 TOTAL LIABILITIES 967,571 926,231 886,428 976,754 Stockholders? equity 95,457 91,791 89,007 84,093 TOTAL LIABILITIES AND STOCKHOLDERS?EQUITY $ 1,063,028 $ 1,018,022 $ 975,435 $ 1,060,847

Common shares 8,589 8,524 8,473 8,472 outstanding Book value per $ 11.11 $ 10.77 $ 10.50 $ 9.93 common share (1) Includesconsumer, otherloans, securitized loans, and deferredfees



ADDITIONALFINANCIAL INFORMATION(Dollars andshares inthousands except per shareamounts)(Unaudited) Three Months Three Months Three Months Six Months Six Months Ended Ended Ended Ended EndedPERFORMANCEMEASURES AND June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020RATIOSReturn onaverage common 15.18 % 13.48 % 5.57 % 14.35 % 6.66 %equityReturn on 1.37 % 1.22 % 0.48 % 1.29 % 0.59 %average assetsEfficiency ratio 57.70 % 62.71 % 74.33 % 60.14 % 72.91 %Net interest 4.24 % 4.19 % 3.72 % 4.22 % 3.84 %margin Three Months Three Months Three Months Six Months Ended Six Months Ended Ended Ended EndedAVERAGE BALANCES June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020Average assets $ 1,041,986 $ 1,004,611 $ 978,250 $ 1,023,402 $ 932,334 Average earning 1,009,968 972,945 949,149 991,559 903,661 assetsAverage total 891,948 875,766 839,625 883,902 813,581 loansAverage deposits 840,104 792,502 745,644 816,434 731,925 Average common 93,851 90,906 83,757 92,387 83,286 equity EQUITY ANALYSIS June 30, 2021 March 31, 2021 June 30, 2020 Total common $ 95,457 $ 91,791 $ 84,093 equityCommon stock 8,589 8,524 8,472 outstanding Book value per $ 11.11 $ 10.77 $ 9.93 common share ASSET QUALITY June 30, 2021 March 31, 2021 June 30, 2020 Nonaccrual $ 1,797 $ 1,825 $ 2,640 loans, netNonaccrualloans, net/total 0.20 % 0.21 % 0.31 % loansOther assetsacquired through $ 2,572 $ 2,572 $ 2,707 foreclosure, net Nonaccrual loansplus otherassets acquired $ 4,369 $ 4,397 $ 5,347 throughforeclosure, netNonaccrual loansplus otherassets acquired 0.41 % 0.43 % 0.50 % throughforeclosure, net/total assetsNet loan(recoveries)/ $ (48 ) $ (212 ) $ (79 ) charge-offs inthe quarterNet (recoveries)/charge-offs in (0.01 %) (0.02 %) (0.01 %) the quarter/total loans Allowance for $ 10,240 $ 10,233 $ 10,008 loan lossesPlus: Reservefor undisbursed 78 82 91 loan commitmentsTotal allowancefor credit $ 10,318 $ 10,315 $ 10,099 lossesAllowance forloan losses/ 1.18 % 1.19 % 1.22 % total loans heldfor investmentAllowance forloan losses/total loans held 1.29 % 1.34 % 1.34 % for investmentexcluding PPPloansAllowance forloan losses/ 569.84 % 560.71 % 379.09 % nonaccrualloans, net Community West Bank *Community bank 8.94 % 8.97 % 8.94 % leverage ratioTier 1 leverage 8.94 % 8.97 % 8.94 % ratioTier 1 capital 11.21 % 11.28 % 10.38 % ratioTotal capital 12.46 % 12.53 % 11.63 % ratio INTEREST SPREAD June 30, 2021 March 31, 2021 June 30, 2020 ANALYSISYield on total 5.14 % 5.03 % 5.07 % loansYield on 2.76 % 2.51 % 1.88 % investmentsYield oninterest earning 0.15 % 0.22 % 0.29 % depositsYield on earning 4.63 % 4.61 % 4.57 % assets Cost ofinterest-bearing 0.48 % 0.50 % 1.06 % depositsCost of total 0.37 % 0.38 % 0.81 % depositsCost of 0.84 % 1.05 % 1.50 % borrowingsCost ofinterest-bearing 0.53 % 0.58 % 1.14 % liabilitiesCost of funds 0.41 % 0.46 % 0.91 % * Capital ratiosare preliminary until the CallReport is filed.



Contact: Susan C. Thompson, EVP & CFO 805.692.5821 www.communitywestbank.com