GlobeNewswire Inc | Jan 28, 2022 09:00AM EST

January 28, 2022

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 Banks 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 SBAs 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 Banks 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 Loans $ % Non- $ % $ %(in Outstanding Non-accrual accrual Classified Classified Deferrals Deferralthousands)Healthcare $ 50,126 $ - 0.00 % $ 1,995 3.98 % $ - 0.00 %Senior/Assted 23,505 - 0.00 % 0.00 % - 0.00 %LivingFacilitiesMedical 16,769 - 0.00 % 233 1.39 % - 0.00 %OfficesGeneral 9,852 - 0.00 % 1,762 17.88 % - 0.00 %HealthcareHospitality 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 %RetailCommercial 45,835 0 0.00 % 7,739 16.88 % 0.00 %Real EstateRetail 11,870 0 0.00 % 1 0.01 % - 0.00 %ServicesSchools 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 Companys 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 Companys 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 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

Community West was named to Piper Sandlers 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 BANCSHARESCONDENSEDCONSOLIDATED BALANCE SHEETS(unaudited) (in 000's, except per share data) December 31, September 30, December 31, 2021 2021 2020 Cash and cash $ 1,621 $ 2,129 $ 1,587 equivalentsInterest-earningdeposits in other 206,754 184,806 58,953 financialinstitutionsInvestment securities 22,773 23,608 22,043 Loans: Commercial 72,423 66,713 80,851 Commercial real 480,801 473,338 402,148 estateSBA 8,580 9,589 11,851 Paycheck Protection 21,317 36,109 69,542 Program (PPP)Manufactured housing 297,363 292,476 280,284 Single family real 8,663 8,659 10,358 estateHELOC 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 (10,404 ) (10,283 ) (10,194 ) loan lossesNet held for 858,271 855,912 816,154 investmentNET 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 $ 209,893 $ 219,826 $ 181,837 demandInterest-bearing 537,508 508,020 398,101 demandSavings 23,675 21,202 18,736 Certificates ofdeposit ($250,000 or 17,612 15,956 30,536 more)Other certificates of 161,443 166,938 136,975 depositTotal deposits 950,131 931,942 766,185 Other borrowings 90,000 90,000 105,000 Other liabilities 15,546 14,881 15,243 TOTAL 1,055,677 1,036,823 886,428 LIABILITIES Stockholders' equity 101,375 98,767 89,007 TOTAL LIABILITIES AND $ 1,157,052 $ 1,135,590 $ 975,435 STOCKHOLDERS' EQUITY Common shares 8,650 8,616 8,473 outstanding Book value per common $ 11.72 $ 11.46 $ 10.50 share (1) Includesconsumer, otherloans, securitized loans, and deferredfees

COMMUNITYWEST BANCSHARESCONDENSED CONSOLIDATED INCOME STATEMENTS(unaudited) (in 000's,except per share data) Three Months Ended December September June 30, March 31, December 31, 31, 30, 2021 2021 2021 2021 2020 Interest incomeLoans,including $ 11,258 $ 11,576 $ 11,433 $ 10,856 $ 10,790 feesInvestmentsecurities 279 259 218 199 196 and otherTotalinterest 11,537 11,835 11,651 11,055 10,986 income Deposits 614 708 771 742 815 Other 206 198 194 271 378 borrowingsTotalinterest 820 906 965 1,013 1,193 expenseNet interest 10,717 10,929 10,686 10,042 9,793 incomeProvision(credit) for 26 7 (41 ) (173 ) (44 ) loan lossesNet interestincome afterprovision 10,691 10,922 10,727 10,215 9,837 for loanlossesNon-interest incomeOther loan 343 383 310 313 383 feesGains fromloan sales, 109 118 130 118 209 netDocumentprocessing 123 145 138 106 129 feesService 84 77 74 67 83 chargesOther 285 317 220 293 166 Totalnon-interest 944 1,040 872 897 970 incomeNon-interest expensesSalaries andemployee 4,884 4,478 4,379 4,565 4,594 benefitsOccupancy, 893 802 780 779 751 netProfessional 441 434 430 340 399 servicesData 251 292 332 340 254 processingDepreciation 186 191 198 205 202 FDIC 146 127 121 91 165 assessmentAdvertisingand 198 189 164 183 110 marketingStock-based 129 63 58 68 68 compensationOther 478 284 207 289 526 Totalnon-interest 7,606 6,860 6,669 6,860 7,069 expensesIncomebeforeprovision 4,029 5,102 4,930 4,252 3,738 for incometaxesProvisionfor income 1,135 1,467 1,379 1,231 1,111 taxesNet 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 BANCSHARESCONDENSEDCONSOLIDATED 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 $ 11,258 $ 10,790 $ 45,123 $ 42,948 feesInvestmentsecurities and 279 196 955 906 otherTotal interest 11,537 10,986 46,078 43,854 income Deposits 614 815 2,835 5,483 Other borrowings 206 378 869 1,782 Total interest 820 1,193 3,704 7,265 expenseNet interest 10,717 9,793 42,374 36,589 incomeProvision (credit) 26 (44 ) (181 ) 1,223 for loan lossesNet interestincome after 10,691 9,837 42,555 35,366 provision for loanlossesNon-interest incomeOther loan fees 343 383 1,349 1,546 Gains from loan 109 209 475 920 sales, netDocument 123 129 512 513 processing feesService charges 84 83 302 354 Other 285 166 1,115 579 Total non-interest 944 970 3,753 3,912 incomeNon-interest expensesSalaries and 4,884 4,594 18,306 17,968 employee benefitsOccupancy, net 893 751 3,254 3,036 Professional 441 399 1,645 1,801 servicesData processing 251 254 1,215 1,055 Depreciation 186 202 780 821 FDIC assessment 146 165 485 565 Advertising and 198 110 734 673 marketingStock-based 129 68 318 319 compensationOther 478 526 1,258 1,285 Total non-interest 7,606 7,069 27,995 27,523 expensesIncome beforeprovision for 4,029 3,738 18,313 11,755 income taxesProvision for 1,135 1,111 5,212 3,510 income taxesNet 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

ADDITIONALFINANCIAL INFORMATION(Dollars andshares inthousands except per shareamounts)(Unaudited) Three Months Ended Twelve Months Ended PERFORMANCEMEASURES AND Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 RATIOSReturn onaverage common 11.42 % 14.77 % 11.85 % 13.68 % 9.70 % equityReturn on 0.99 % 1.28 % 1.07 % 1.21 % 0.85 % average assetsEfficiency ratio 65.23 % 57.31 % 65.68 % 60.69 % 67.96 % Net interest 3.77 % 3.97 % 4.13 % 4.03 % 3.89 % margin 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 1,126,473 1,091,792 944,073 1,050,829 940,993 assetsAverage total 888,519 882,058 845,620 884,601 831,863 loansAverage deposits 950,601 920,165 726,223 876,397 730,884 Average common 100,579 97,636 88,171 95,770 85,027 equity EQUITY ANALYSIS Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 Total common $ 101,375 $ 98,767 $ 89,007 equityCommon stock 8,650 8,616 8,473 outstanding Book value per $ 11.72 $ 11.46 $ 10.50 common share ASSET QUALITY Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 Nonaccrual $ 565 $ 1,742 $ 3,665 loans, netNonaccrualloans, net/total 0.06% 0.20% 0.43% loansOther assetsacquired through $ 2,518 $ 2,572 $ 2,614 foreclosure, net Nonaccrual loansplus otherassets acquired $ 3,083 $ 4,314 $ 6,279 throughforeclosure, netNonaccrual loansplus otherassets acquired 0.27% 0.38% 0.64% throughforeclosure, net/total assetsNet loan(recoveries)/ $ (96) $ (36) $ (41) charge-offs inthe quarterNet (recoveries)/charge-offs in (0.01%) (0.00%) (0.00%) the quarter/total loans Allowance for $ 10,404 $ 10,283 $ 10,194 loan lossesPlus: Reservefor undisbursed 94 106 92 loan commitmentsTotal allowancefor credit $ 10,498 $ 10,389 $ 10,286 lossesAllowance forloan losses/ 1.20% 1.19% 1.23% total loans heldfor investmentAllowance forloan losses/total loans held 1.23% 1.24% 1.35% for investmentexcluding PPPloansAllowance forloan losses/ 1842.50% 590.34% 278.14% nonaccrualloans, net Community West Bank *Community bank N/A 8.59% 9.29% leverage ratioTier 1 leverage 8.56% 8.59% 9.29% ratioTier 1 capital 11.02% 10.93% 11.02% ratioTotal capital 12.19% 12.11% 12.27% ratio INTEREST SPREAD Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 ANALYSISYield on total 5.03% 5.21% 5.08% loansYield on 2.78% 2.68% 2.46% investmentsYield oninterest earning 0.16% 0.16% 0.15% depositsYield on earning 4.06% 4.30% 4.63% assets Cost ofinterest-bearing 0.34% 0.40% 0.60% depositsCost of total 0.26% 0.31% 0.45% depositsCost of 0.91% 0.87% 1.03% borrowingsCost ofinterest-bearing 0.40% 0.45% 0.69% liabilitiesCost of funds 0.31% 0.36% 0.54% * Capital ratiosare preliminary until the CallReport is filed.

Contact:Richard Pimentel, EVP & CFO805.692.4410www.communitywestbank.com