cvcy-20240723
8-KCA000-3197777-05391257100 N. Financial Dr., Ste. 101FresnoCA93720559298-1775FALSE000112737100011273712024-07-232024-07-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: July 23, 2024
(Date of earliest event reported)
COMMUNITY WEST BANCSHARES
(Exact name of registrant as specified in its charter)
CA
(State or other jurisdiction
of incorporation)
000-31977
(Commission File Number)
77-0539125
(IRS Employer
Identification Number)
7100 N. Financial Dr., Ste. 101, Fresno, CA
(Address of principal executive offices)
93720
(Zip Code)
559-298-1775
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Common Stock, no par valueCWBCNASDAQ
(Title of Each Class)(Trading Symbol)(Name of Each Exchange on which Registered)
Not Applicable
(Former Name or Former Address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  o


Item 2.02. Results of Operations and Financial Condition

On July 23, 2024, Community West Bancshares issued a press release containing unaudited financial information and
accompanying discussion for the quarter ended June 30, 2024. On April 1, 2024, the Company, formerly named Central Valley Community Bancorp, completed its acquisition of Community West Bancshares and its wholly owned subsidiary, Community West Bank. Effective with the acquisition, the Company assumed the names Community West Bancshares and Community West Bank to reflect its expanded Central California territory. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 8.01. Other Events

The information in this Form 8-K filed on July 23, 2024 shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general
incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

(a) Financial statements:
            None
(b) Pro forma financial information:
            None
(c) Shell company transactions:
            None
(d) Exhibits
            99.1       Press Release of Community West Bancshares dated July 23, 2024




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated:
July 23, 2024
COMMUNITY WEST BANCSHARES

By:  /s/ Shannon Livingston                  
       Shannon Livingston
       Executive Vice President and Chief Financial Officer (Principal
          Accounting Officer)


Document

http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.79921575.0001628280-24-032604cwbclogoa.jpg.ashx
FOR IMMEDIATE RELEASE
COMMUNITY WEST BANCSHARES REPORTS EARNINGS RESULTS
FOR THE QUARTER ENDED JUNE 30, 2024

Notable Items for Second Quarter 2024
•On April 1, 2024, the Company, formerly named Central Valley Community Bancorp, completed its acquisition of Community West Bancshares and its wholly owned subsidiary, Community West Bank. Effective with the acquisition, the Company assumed the names Community West Bancshares and Community West Bank to reflect its expanded Central California territory.
•Gross organic loan growth for the quarter of $49 million or 8.89% annualized.
•Net interest margin increased to 3.65% for the quarter ended June 30, 2024, from 3.42% for the quarter ended March 31, 2024. Total net accretion of fair value marks contributed 12 basis points of the 23 basis point increase in net interest margin for the current quarter.

FRESNO, CALIFORNIA...July 23, 2024...The Board of Directors of Community West Bancshares (“Company”) (NASDAQ: CWBC), the parent company of Community West Bank (“Bank”), reported today an unaudited consolidated net loss of $6,290,000, and a fully diluted loss per common share of $0.33 for the three months ended June 30, 2024, compared to earnings of $6,282,000 and $0.54 per fully diluted common share for the three months ended June 30, 2023.
SECOND QUARTER FINANCIAL HIGHLIGHTS
•The Company incurred a loss during the second quarter of $6.3 million, or a loss of $0.33 per diluted common share, compared to net income of $3.7 million and $0.31, respectively, in the first quarter of 2024. The loss during the second quarter is attributable to merger-related expenses, including a provision for loan losses for the acquired loan portfolio. In addition, the Company realized a loss on sale of securities. See Non-GAAP financial measures below.
•Available-for-sale investment securities decreased $65.7 million or 11.0% at June 30, 2024 compared to December 31, 2023. During the second quarter, the Company received $26.0 million from the sale of available-for-sale investment securities and the remaining decline was due to normal pay downs and maturities, which the proceeds were used to fund loan growth as part of strategic repositioning of the balance sheet to improve future earnings.
•Total gross loans of $2.26 billion at June 30, 2024 increased by 74.82% or $965.8 million compared to December 31, 2023 largely due to the merger, which the fair value of the acquired loans totaled $920.9 million. Excluding the acquired loans, gross loans increased by $44.9 million or 3.48% during the year-to-date period.
•Total assets increased by $1.04 billion or 42.83% at June 30, 2024 compared to December 31, 2023 as a result of the merger.
•Total deposits of $2.87 billion at June 30, 2024 increased by 40.54% or $827.7 million compared to December 31, 2023, primarily due to the merger, which the fair value of the acquired deposits totaled $844.0 million. Excluding the merger, deposits decreased $16.35 million or 0.80%.
•Total cost of deposits increased to 1.71% for the quarter ended June 30, 2024 compared to 0.98% for the quarter ended March 31, 2024, largely due to acquired deposits from the merger including amortization from fair value marks on certificates of deposits.
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Community West Bancshares -- page 2
•Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 37.36% and 45.30% for the quarters ended June 30, 2024 and March 31, 2024, respectively.
•Net interest margin increased to 3.65% for the quarter ended June 30, 2024, from 3.42% for the quarter ended March 31, 2024.
•There were $2,805,000 non-performing assets for the quarter ended June 30, 2024 as the result of the acquired loans from the merger. Net loan charge-offs were $41,000 and loans delinquent more than 30 days were $8,316,000 for the quarter ended June 30, 2024.
•Capital positions remain strong at June 30, 2024 with a 9.14% Tier 1 Leverage Ratio; a 11.36% Common Equity Tier 1 Ratio; a 11.55% Tier 1 Risk-Based Capital Ratio; and a 13.87% Total Risk-Based Capital Ratio.
•The Company declared a $0.12 per common share cash dividend, payable on August 16, 2024 to shareholders of record as of August 2, 2024.

“I am pleased to share that this quarter report represents the first quarter for the combined Company, following the merger that successfully closed on April 1, 2024. On behalf of our entire organization, we are excited for a bright future for our 44-year-old Bank, with our unique brand of relationship banking and experienced bankers now able to serve more communities in an expanded service area, powered by the strength of one of the largest banks headquartered in Central California,” said James J. Kim, President and CEO of the Bank and CEO of the Company.

“As a result of merger-related expenses, overall earnings were significantly reduced for the quarter ended June 30, 2024, compared to the previous quarter ended March 31, 2024. Still, the strength of the combined Company’s core earnings provides a solid base for sustained growth,” added Shannon Livingston, Executive Vice President and Chief Financial Officer. “The Company continues to reposition the balance sheet to optimize earnings through strong loan growth, utilizing proceeds from lower-earning investment securities. Additionally, while elevated non-interest expenses are expected to continue through the third quarter 2024 due to merger-related systems integration, operational efficiencies will commence in the fourth quarter.”

Results of Operations
Three months ended
June 30,
March 31,
June 30,
(In thousands, except share and per-share amounts) 202420242023
Net interest income before provision for credit losses$29,057 $19,073 $20,205 
Provision (credit) for credit losses9,831 575 (343)
Net interest income after provision (credit) for credit losses19,226 18,498 20,548 
Total non-interest income1,400 1,636 1,594 
Total non-interest expenses28,503 15,333 13,805 
(Loss) income before provision for income taxes(7,877)4,801 8,337 
(Benefit) provision for income taxes(1,587)1,125 2,055 
Net (loss) income$(6,290)$3,676 $6,282 

Statement Regarding use of Non-GAAP Financial Measures
In this press release, Community West Bancshares’s financial results are presented in accordance with GAAP and refer to certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results
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Community West Bancshares -- page 3
across reporting periods. Management also uses non-GAAP financial measures to establish budgets and manage the Company’s business. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.

Reconciliation of GAAP and Non-GAAP Financial Measures
For the Three Months EndedFor the Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
(In thousands, except share and per-share amounts)20242024202320242023
NET (LOSS) INCOME:
Net (loss) income (GAAP)$(6,290)$3,676 $6,282 $(2,614)$13,252 
Merger and conversion related costs:
Provision for credit losses on non-purchased credit deteriorated loans10,877 — — 10,877 — 
Personnel and severance2,985 — — 2,985 — 
Professional services1,713 301 177 2,014 215 
Data processing337 — — 337 — 
Other521 82 — 603 — 
Total merger and conversion related costs, net of taxes16,433 383 177 16,816 215 
Accretion of fair value marks, net(1,022)(41)(72)(1,063)(139)
Loss on sale of investment securities1,974 373 39 2,346 257 
Income tax benefit of non-core expenses(3,311)(90)(44)(2,531)(54)
Comparable net income (non-GAAP)$7,784 $4,301 $6,382 $12,954 $13,531 
DILUTED EARNINGS PER SHARE:
Weighted average diluted shares18,937,036 11,790,231 11,740,390 15,369,528 11,738,037 
Diluted earnings per share (GAAP)$(0.33)$0.31 $0.54 $(0.17)$1.13 
Comparable diluted earnings per share (non-GAAP)$0.41 $0.36 $0.54 $0.84 $1.15 
RETURN ON AVERAGE ASSETS
Average assets$3,468,433 $2,420,810 $2,501,524 $2,944,622 $2,460,742 
Return on average assets (GAAP)(0.73)%0.61 %1.00 %(0.18)%1.08 %
Comparable return on average assets (non-GAAP)0.90 %0.72 %1.02 %0.90 %1.10 %
RETURN ON AVERAGE EQUITY
Average stockholders' equity$334,809 $207,667 $184,787 $271,238 $183,490 
Return on average equity (GAAP)(7.39)%7.08 %13.60 %(1.91)%14.44 %
Comparable return on average equity (non-GAAP)9.30 %8.28 %13.81 %9.55 %14.75 %
EFFICIENCY RATIO
Non-interest expense (GAAP)$28,503 $15,333 $13,805 $43,836 $27,010 
Merger-related non-interest expenses(5,556)(383)(177)(5,939)(215)
Non-interest expense (non-GAAP)$22,947 $14,950 $13,628 $37,897 $26,795 
Net interest income$29,057 $19,073 $20,205 $48,129 $41,786 
Non-interest income$1,400 $1,636 $1,594 $3,037 $3,169 
Loss on sale of investment securities1,974 373 39 2,346 257 
Non-interest income (non-GAAP)$3,374 $2,009 $1,633 $5,383 $3,426 
Efficiency ratio (GAAP)93.58 %74.04 %63.33 %85.67 %60.08 %
Comparable efficiency ratio (non-GAAP)70.76 %70.91 %62.40 %70.82 %59.27 %
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Community West Bancshares -- page 4

For the quarter ended June 30, 2024, the Company reported an unaudited consolidated net loss of $6,290,000 and loss per diluted common share of $0.33, compared to consolidated net income of $6,282,000 and $0.54 per diluted share for the same period in 2023. The net loss for the period was impacted by an provision for credit losses $9,831,000 and an increase in total non-interest expenses of $14,698,000, partially offset by an increase in net interest income before provision for credit losses of $8,852,000. The increase in non-interest expense as compared to the prior year’s quarter was primarily due to merger and acquisition expenses and additional operating expenses of the merged Bank as of April 1, 2024.

For the six months ended June 30, 2024, the Company reported an unaudited consolidated net loss of $2,614,000 and loss per diluted common share of $0.17, compared to consolidated net income of $13,252,000 and $1.13 per diluted share for the same period in 2023. The net loss for the period was impacted by a provision for credit losses of $10,407,000, and an increase in total non-interest expense of $16,826,000, partially offset by an increase in net interest income before provision for credit losses of $6,343,000 and a decrease in the provision for income taxes of $4,866,000. Increases in non-interest expenses for the year-to-date period were impacted by merger and acquisition expenses and the additional operating expenses of the merged Bank as of April 1, 2024.

Annualized return on average equity (ROAE) for the six months ended June 30, 2024 was (1.91)%, compared to 14.44% for the same period of 2023. The decrease in ROAE is reflective of the net loss incurred during the second quarter due to merger and acquisition expenses, including a provision for loan losses for the acquired loan portfolio. Annualized return on average assets (ROAA) was (0.18)% for the six months ended June 30, 2024 compared to 1.08% for the same period in 2023.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.21% for the quarter ended June 30, 2024, compared to 3.18% for the quarter ended June 30, 2023 and 3.07% for the quarter ended March 31, 2024. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.14% for the six months ended June 30, 2024, compared to 3.07% for the six months ended June 30, 2023.

Total average loans increased by $970,479,000 to $2,228,463,000 for the quarter ended June 30, 2024, from $1,257,984,000 for the quarter ended June 30, 2023 and increased by $945,395,000 from $1,283,068,000 for the quarter ended March 31, 2024. The increase was primarily due to the merger, in which loans with a fair value of $920,900,000 were recorded on the balance sheet as of April 1, 2024. The effective yield on average loans was 6.54% for the quarter ended June 30, 2024, compared to 5.54% and 5.74% for the quarters ended June 30, 2023 and March 31, 2024, respectively. Total average loans increased by $496,691,000 to $1,755,766,000 for the six months ended June 30, 2024, from $1,259,075,000 for the six months ended June 30, 2023. The effective yield on average loans was 6.24% for the six months ended June 30, 2024, compared to 5.47% for the six months ended June 30, 2023.

The Company’s net interest margin (fully tax equivalent basis) was 3.65% for the quarter ended June 30, 2024, compared to 3.46% for the quarter ended June 30, 2023 and 3.42% for the quarter ended March 31, 2024. Net interest income, before provision for credit losses increased by $8,852,000 or 43.81%, to $29,057,000 for the second quarter of 2024, compared to $20,205,000 for the same period in 2023. Over the last year, the Company's yield on interest earning assets has increased from 4.43% for the quarter ended June 30, 2023 to 5.50% for the quarter ended June 30, 2024. Additionally, the Company has been impacted by higher costs on interest-bearing liabilities, in which the cost of total deposits increased to 1.71% from 0.88% when comparing the quarters ended June 30, 2024 and 2023. The increase in the cost of deposits is primarily attributed to volume and rate increases in the money market and time deposit portfolios from the both acquired deposits from the merger and the Company’s existing base.
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Community West Bancshares -- page 5
The Company’s net interest margin (fully tax equivalent basis) was 3.55% for the six months ended June 30, 2024, compared to 3.65% for the six months ended June 30, 2023. Net interest income, before provision for credit losses increased $6,343,000 or 15.18%, to $48,129,000 for the six months ended June 30, 2024, compared to $41,786,000 for the same period in 2023. The accretion on loan marks of acquired loans increased interest income by $3,209,000 and $139,000 during the six months ended June 30, 2024 and 2023, respectively. Net interest income during the six months ended June 30, 2024 and 2023 benefited by approximately $80,000 and $42,000, respectively, from prepayment penalties and payoff of loans.


Non-Interest Income - The following tables present the key components of non-interest income for the periods indicated:
Three months ended June 30,
(Dollars in thousands)20242023$ Change% Change
Service charges$480 $367 $113 30.8 %
Appreciation in cash surrender value of bank owned life insurance347 254 93 36.6 %
Interchange fees635 458 177 38.6 %
Loan placement fees244 172 72 41.9 %
Net realized losses on sales and calls of investment securities(1,974)(39)(1,935)4961.5 %
Federal Home Loan Bank dividends160 106 54 50.9 %
Other income1,508 276 1,232 446.4 %
Total non-interest income$1,400 $1,594 $(194)(12.2)%

Six months ended June 30,
(Dollars in thousands)20242023$ Change% Change
Service charges$864 $755 $109 14.4 %
Appreciation in cash surrender value of bank owned life insurance622 503 119 23.7 %
Interchange fees1,040 903 137 15.2 %
Loan placement fees410 296 114 38.5 %
Net realized losses on sales and calls of investment securities(2,346)(257)(2,089)812.8 %
Federal Home Loan Bank dividends317 215 102 47.4 %
Other income2,130 754 1,376 182.5 %
Total non-interest income$3,037 $3,169 $(132)(4.2)%

The increase in other income for the quarter ended June 30, 2024 and year-to-date was primarily due to income from other investments, net loan servicing income, and an increase in credit card merchant fees. Proceeds from sales of securities were used to fund loan growth as part of strategic repositioning of the balance sheet.

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Community West Bancshares -- page 6
Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:
Three months ended June 30,
(Dollars in thousands)20242023$ Change% Change
Salaries and employee benefits$13,451 $7,976 $5,475 68.6 %
Occupancy and equipment2,423 1,264 1,159 91.7 %
Information technology1,522 935 587 62.8 %
Regulatory assessments632 356 276 77.5 %
Data processing expense1,037 618 419 67.8 %
Professional services701 706 (5)(0.7)%
ATM/Debit card expenses418 193 225 116.6 %
Advertising289 124 165 133.1 %
Directors’ expenses189 151 38 25.2 %
Merger and acquisition expense5,556 177 5,379 3039.0 %
Loan related expenses 134 51 83 162.7 %
Personnel other50 63 (13)(20.6)%
Amortization of core deposit intangibles250 34 216 635.3 %
Other expense1,851 1,157 694 60.0 %
Total non-interest expenses$28,503 $13,805 $14,698 106.5 %

Six months ended June 30,
(Dollars in thousands)20242023$ Change% Change
Salaries and employee benefits$22,090 $16,010 $6,080 38.0 %
Occupancy and equipment3,966 2,521 1,445 57.3 %
Information technology2,544 1,782 762 42.8 %
Regulatory assessments954 566 388 68.6 %
Data processing expense1,722 1,269 453 35.7 %
Professional services1,326 1,020 306 30.0 %
ATM/Debit card expenses632 377 255 67.6 %
Advertising440 248 192 77.4 %
Directors’ expenses358 314 44 14.0 %
Merger and acquisition expense5,939 215 5,724 2662.3 %
Loan related expenses 226 198 28 14.1 %
Personnel other180 323 (143)(44.3)%
Amortization of core deposit intangibles250 68 182 267.6 %
Other expense3,209 2,099 1,110 52.9 %
Total non-interest expenses$43,836 $27,010 $16,826 62.3 %

The increase in both quarter-to-date and year-to-date non-interest expense categories was due to the merger that was completed on April 1, 2024 in which the Company added 131 full-time equivalent employees, including temporary employees to assist with systems integrations, and seven banking centers on the central coast of California.

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Community West Bancshares -- page 7

Balance Sheet Summary
Total assets for the period ended June 30, 2024 increased $1,042,338,000 or 42.83%, compared to the period ended December 31, 2023. Total average assets for the quarter ended June 30, 2024 were $3,468,433,000 compared to $2,501,524,000 for the quarter ended June 30, 2023 and $2,420,810,000 for the quarter ended March 31, 2024, an increase of $966,909,000 or 38.65% and an increase of $1,047,623,000 or 42.90%, respectively. As a result of the merger on April 1, the Company recorded goodwill of approximately $42.6 million and core deposit intangibles of $10 million.

For the quarter ended June 30, 2024, the Company’s average investment securities decreased by $86,727,000, or 8.49%, compared to the quarter ended June 30, 2023, and decreased by $33,067,000, or 3.42%, compared to the quarter ended March 31, 2024. This decrease was the result of sales and maturities of available for sale (AFS) securities, partially offset by improvements in the unrealized loss position of the remaining AFS securities.

In comparing the quarter ended June 30, 2024 to the quarters ended March 31, 2024 and June 30, 2023, total average gross loans increased by $945,395,000 or 73.68% and increased $970,479,000 or 77.15%, respectively.

The following table shows the Company’s outstanding loan portfolio composition as of June 30, 2024 and December 31, 2023:
June 30, 2024
December 31, 2023
Loan Type (dollars in thousands)Amount% of TotalAmount% of Total
Commercial:
Commercial and industrial$137,133 6.1 %$105,466 8.2 %
Agricultural production26,166 1.2 %33,556 2.6 %
Total commercial163,299 7.3 %139,022 10.8 %
Real estate:
Construction & other land loans64,275 2.8 %33,472 2.6 %
Commercial real estate - owner occupied308,462 13.7 %215,146 16.7 %
Commercial real estate - non-owner occupied889,987 39.4 %539,522 41.9 %
Farmland141,152 6.3 %120,674 9.3 %
Multi-family residential127,288 5.6 %61,307 4.7 %
1-4 family - close-ended116,485 5.2 %96,558 7.5 %
1-4 family - revolving34,747 1.5 %27,648 2.1 %
Total real estate1,682,396 74.5 %1,094,327 84.8 %
Consumer:
Manufactured housing327,564 14.5 %— — %
Other installment81,245 3.6 %55,606 4.3 %
Total consumer408,809 18.1 %55,606 4.3 %
Net deferred origination costs2,067 0.1 %1,842 0.1 %
Total gross loans2,256,571 100.0 %1,290,797 100.0 %
Allowance for credit losses(24,940)(14,653)
Total loans$2,231,631 $1,276,144 


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Community West Bancshares -- page 8
Total average deposits increased $671,276,000 or 30.34%, to $2,883,868,000 for the quarter ended June 30, 2024, compared to $2,212,592,000 for the quarter ended June 30, 2023, and increased $828,727,000, or 40.32%, compared to $2,055,141,000 for the quarter ended March 31, 2024. The Company’s ratio of average non-interest bearing deposits to total deposits was 37.36% for the quarter ended June 30, 2024, compared to 43.53% and 45.30% for the quarters ended June 30, 2023 and March 31, 2024, respectively.

The composition of deposits at June 30, 2024 and December 31, 2023 is summarized in the table below:
June 30, 2024
December 31, 2023
(Dollars in thousands)Amount% of TotalAmount% of Total
NOW accounts$314,217 11.0 %$251,334 12.3 %
MMA accounts826,460 28.8 %497,043 24.4 %
Time deposits476,896 16.6 %162,085 7.9 %
Savings deposits175,845 6.1 %179,609 8.8 %
Total interest-bearing1,793,418 62.5 %1,090,071 53.4 %
Non-interest bearing1,075,882 37.5 %951,541 46.6 %
Total deposits$2,869,300 100.0 %$2,041,612 100.0 %

The Company has significant liquidity, both on and off-balance sheet, to meet customer demand. During the year-to-date period, the Company’s cash and cash equivalents increased $55,995,000 to $109,723,000 compared to $53,728,000 at December 31, 2023. The Company had $150,638,000 in short-term borrowings at June 30, 2024 compared to $80,000,000 at December 31, 2023.

At June 30, 2024 and December 31, 2023, the Company had the following sources of primary and secondary liquidity:

Liquidity Sources (in thousands)
June 30, 2024
December 31, 2023
Cash and cash equivalents$109,723 $53,728 
Unpledged investment securities519,693 574,633 
Excess pledged securities107,684 116,740 
FHLB borrowing availability253,850 307,483 
FRB Bank Term Funding Program (BTFP) availability (1)— 1,174 
Unsecured lines of credit availability110,000 110,000 
Funds available through FRB discount window3,933 4,448 
Total$1,104,883 $1,168,206 
(1) The BFTP was discontinued by the FRB as of March 2024. No further advances are available under this program.

Credit Quality
During the second quarter of 2024, the Company recorded net loan charge-offs of $41,000 compared to $22,000 in net charge-offs for the same period in 2023. The net charge-off ratio reflects annualized net charge-offs to average loans was 0.01% for the quarter ended June 30, 2024, compared to annualized net recoveries of 0.01% for the quarter ended June 30, 2023. During the quarter ended June 30, 2024, the Company recorded a provision of $9,502,000 for credit losses on loans, compared to a $184,000 provision for the quarter ended June 30, 2023. In addition to the provision of credit losses on loans, for the quarter ended June 30, 2024, the Company recorded a provision for credit losses on held-to-maturity securities and a provision for unfunded loan commitments totaling $329,000 as of the quarter ended June 30, 2024. The provision for credit losses on held-to-maturity securities was due to changes in the economic scenarios as they relate to specific corporate bonds.

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Community West Bancshares -- page 9
The following table shows the Company’s loan portfolio allocated by management’s internal risk ratings:
Loan Risk Rating (In thousands)June 30, 2024March 31, 2024June 30, 2023
Pass$2,191,348 $1,262,046 $1,212,129 
Special mention25,576 5,595 18,094 
Substandard39,647 18,968 25,435 
Doubtful— — — 
Total$2,256,571 $1,286,609 $1,255,658 
The increase in special mention and substandard loans during the quarter were due to the merger that was completed on April 1, 2024. At June 30, 2024, the allowance for credit losses for loans was $24,940,000, compared to $14,653,000 at December 31, 2023, a net increase of $10,287,000 reflecting a provision for loan losses of $10,033,000, less net charge-offs during the period. The allowance for credit losses as a percentage of total loans was 1.11% and 1.14% as of June 30, 2024 and December 31, 2023, respectively. The Company believes the allowance for credit losses is adequate to provide for expected credit losses within the loan portfolio at June 30, 2024.
Cash Dividend Declared
On July 17, 2024, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on August 16, 2024 to shareholders of record as of August 2, 2024. The Company continues to be well capitalized and expects to maintain adequate capital levels.
Company Overview
Effective on April 1, 2024, Central Valley Community Bancorp completed its merger transaction with Community West Bancshares. Shortly thereafter Community West Bank, a wholly owned subsidiary of Community West Bancshares, merged with and into Central Valley Community Bank, a wholly-owned subsidiary of Central Valley Community Bancorp, with Central Valley Community Bank being the surviving banking institution. Effective with these mergers, the corporate names of Central Valley Community Bancorp and Central Valley Community Bank were changed to Community West Bancshares and Community West Bank, respectively.

Community West Bancshares (“Company”) (NASDAQ: CWBC) and its wholly owned subsidiary, Community West Bank (“Bank”), are headquartered in Fresno, California. The Company was established in 1979 with the vision to help businesses and communities by exceeding expectations at every opportunity, and opened its first Banking Center on January 10, 1980. Today, the Bank operates full-service Banking Centers in California from Greater Sacramento in the north, throughout the San Joaquin Valley and west to the Central Coast. The Bank also maintains Commercial, Real Estate and Agribusiness Lending, as well as Private Banking and Cash Management Departments.

Members of the Company and Bank Board of Directors are: Daniel J. Doyle (Chairman), Robert H. Bartlein (Vice Chairman), James J. Kim (CEO of the Company and President and CEO of the Bank), Martin E. Plourd (President of the Company and Director of the Bank), Suzanne M. Chadwick, Daniel N. Cunningham, Tom L. Dobyns, F.T. “Tommy” Elliott IV, Robert J. Flautt, James W. Lokey, Andriana D. Majarian, Steven D. McDonald, Dorothea D. Silva, William S. Smittcamp and Kirk B. Stovesand. Louis C. McMurray is Director Emeritus.

More information about Community West Bancshares and Community West Bank can be found at www.cvcb.com. Also, follow the Company on LinkedIn, X and Facebook.

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Community West Bancshares -- page 10

Forward-looking Statements- Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: current and future business, economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values and overall slowdowns in economic growth should these events occur; inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in the portfolio or in the secondary market; effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board; geopolitical and domestic political developments that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, and increase the volatility of financial markets; changes in the level of nonperforming assets and charge offs and other credit quality measures, and their impact on the adequacy of our allowance for credit losses and our provision for credit losses;factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, and the success of construction projects that we finance; our ability to achieve loan growth and attract deposits in our market area, the impact of the cost of deposits and our ability to retain deposits; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; restraints on the ability of Central Valley Community Bank to pay dividends to us, which could limit our liquidity; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; changes in our management personnel or our inability to retain, motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to the merger, including, among others, the expected business expansion may be less successful as projected; the integration of each party’s management, personnel and operations may not be successfully achieved or may be materially delayed or may be more costly or difficult than expected, deposit attrition, customer or employee loss and/or revenue loss as a result of the merger, and expenses related to the proposed merger may be greater than expected; natural disasters, such as earthquakes, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; compliance with governmental and regulatory requirements, relating to banking, consumer protection, securities and tax matters; and our ability to the manage the foregoing.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward looking statements in this report. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Community West Bancshares -- page 11
COMMUNITY WEST BANCSHARES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
December 31,
June 30,
(In thousands, except share amounts)202420232023
ASSETS
Cash and due from banks$26,491 $30,017 $28,325 
Interest-earning deposits in other banks83,232 23,711 100,333 
Total cash and cash equivalents109,723 53,728 128,658 
Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $597,706 at June 30, 2024 and $669,646 at December 31, 2023, respectively531,504 597,196 619,759 
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $1,076 at June 30, 2024 and $1,051 at December 31, 2023, respectively302,366 302,442 303,876 
Equity securities6,551 6,649 6,558 
Loans, less allowance for credit losses of $24,940, $14,653, and $15,463 at June 30, 2024 December 31, 2023, and June 30, 2023, respectively 2,231,631 1,276,144 1,240,195 
Bank premises and equipment, net21,752 14,042 10,939 
Bank owned life insurance51,166 41,572 41,041 
Federal Home Loan Bank stock10,978 7,136 7,136 
Goodwill96,379 53,777 53,777 
Core deposit intangibles9,769 — — 
Accrued interest receivable and other assets103,945 80,740 77,868 
Total assets$3,475,764 $2,433,426 $2,489,807 
LIABILITIES AND SHAREHOLDERS’ EQUITY 
Deposits:
Non-interest bearing$1,075,882 $951,541 $957,088 
Interest bearing1,793,418 1,090,071 1,243,206 
Total deposits2,869,300 2,041,612 2,200,294 
Short-term borrowings150,638 80,000 — 
Senior debt and subordinated debentures69,817 69,744 69,671 
Accrued interest payable and other liabilities35,767 35,006 32,482 
Total liabilities3,125,522 2,226,362 2,302,447 
Shareholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding
— — — 
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 18,939,531, 11,818,039, and 11,812,425 at June 30, 2024, December 31, 2023 and June 30, 2023, respectively 206,821 62,550 62,128 
Retained earnings204,250 210,548 201,100 
Accumulated other comprehensive loss, net of tax(60,829)(66,034)(75,868)
Total shareholders’ equity350,242 207,064 187,360 
Total liabilities and shareholders’ equity$3,475,764 $2,433,426 $2,489,807 

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Community West Bancshares -- page 12
COMMUNITY WEST BANCSHARES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)    
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
(In thousands, except share and per-share amounts)20242024202320242023
INTEREST INCOME:
Interest and fees on loans$36,197 $18,299 $17,382 $54,497 $34,159 
Interest on deposits in other banks1,076 432 1,374 1,507 1,449 
Interest and dividends on investment securities:
Taxable5,328 5,500 5,826 10,828 11,712 
Exempt from Federal income taxes1,396 1,396 1,405 2,792 2,810 
Total interest income43,997 25,627 25,987 69,624 50,130 
INTEREST EXPENSE:
Interest on deposits12,266 5,018 4,871 17,285 5,876 
Interest on short-term borrowings1,758 621 — 2,379 661 
Interest on senior debt and subordinated debentures916 915 911 1,831 1,807 
Total interest expense14,940 6,554 5,782 21,495 8,344 
Net interest income before provision (credit) for credit losses29,057 19,073 20,205 48,129 41,786 
PROVISION (CREDIT) FOR CREDIT LOSSES9,831 575 (343)10,407 290 
Net interest income after provision (credit) for credit losses19,226 18,498 20,548 37,722 41,496 
NON-INTEREST INCOME: 
Service charges480 384 367 864 755 
Net realized losses on sales and calls of investment securities(1,974)(373)(39)(2,346)(257)
Other income2,894 1,625 1,266 4,519 2,671 
Total non-interest income1,400 1,636 1,594 3,037 3,169 
NON-INTEREST EXPENSES:
Salaries and employee benefits13,451 8,638 7,976 22,090 16,010 
Occupancy and equipment2,423 1,543 1,264 3,966 2,521 
Other expense12,629 5,152 4,565 17,780 8,479 
Total non-interest expenses28,503 15,333 13,805 43,836 27,010 
(Loss) income before provision for income taxes(7,877)4,801 8,337 (3,077)17,655 
(BENEFIT) PROVISION FOR INCOME TAXES(1,587)1,125 2,055 (463)4,403 
Net (loss) income$(6,290)$3,676 $6,282 $(2,614)$13,252 
Net (loss) income per common share:
Basic (loss) earnings per common share$(0.33)$0.31 $0.54 $(0.17)$1.13 
Weighted average common shares used in basic computation18,814,020 11,750,528 11,723,127 15,282,274 11,713,524 
Diluted (loss) earnings per common share$(0.33)$0.31 $0.54 $(0.17)$1.13 
Weighted average common shares used in diluted computation18,937,036 11,790,231 11,740,390 15,369,528 11,738,037 
Cash dividends per common share$0.12 $0.12 $0.12 $0.24 $0.24 
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Community West Bancshares -- page 13
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Jun. 30,Mar. 31,Dec. 31,Sep. 30,Jun. 30,
For the three months ended20242024202320232023
(In thousands, except share and per share amounts)
Net interest income$29,057 $19,073 $20,115 $20,527 $20,205 
Provision (credit) for credit losses9,831 575 (168)186 (343)
Net interest income after provision (credit) for credit losses19,226 18,498 20,283 20,341 20,548 
Total non-interest income1,400 1,636 2,267 1,583 1,594 
Total non-interest expense28,503 15,333 14,854 13,436 13,805 
(Benefit) provision for income taxes(1,587)1,125 1,803 2,098 2,055 
Net (loss) income$(6,290)$3,676 $5,893 $6,390 $6,282 
Basic (loss) earnings per common share$(0.33)$0.31 $0.50 $0.54 $0.54 
Weighted average common shares used in basic computation18,814,020 11,750,528 11,745,548 11,742,334 11,723,127 
Diluted (loss) earnings per common share$(0.33)$0.31 $0.50 $0.54 $0.54 
Weighted average common shares used in diluted computation18,937,036 11,790,231 11,774,085 11,755,758 11,740,390 

COMMUNITY WEST BANCSHARES
SELECTED RATIOS
(Unaudited)
Jun. 30,Mar. 31,Dec. 31,Sep. 30,Jun. 30,
As of and for the three months ended20242024202320232023
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans1.11 %1.14 %1.14 %1.22 %1.23 %
Non-performing assets to total assets0.08 %— %— %— %— %
Total non-performing assets$2,805 $— $— $— $— 
Total nonaccrual loans$2,805 $— $— $— $— 
Total substandard loans$39,647 $18,968 $20,301 $24,740 $25,435 
Total special mention loans$25,576 $5,595 $9,000 $16,966 $18,094 
Net loan charge-offs (recoveries)$41 $525 $(170)$194 $(22)
Net charge-offs (recoveries) to average loans (annualized)0.01 %0.16 %(0.05)%0.06 %(0.01)%
Book value per share$18.49 $17.89 $17.52 $15.37 $15.86 
Tangible book value per share (1)$12.89 $13.35 $12.97 $10.82 $11.31 
Total equity$350,242 $211,717 $207,064 $181,650 $187,360 
Tangible common equity (1)$244,044 $157,935 $153,287 $127,872 $133,583 
Cost of total deposits1.71 %0.98 %0.87 %0.90 %0.88 %
Interest and dividends on investment securities exempt from Federal income taxes$1,396 $1,396 $1,398 $1,393 $1,405 
Net interest margin (calculated on a fully tax equivalent basis) (2)3.65 %3.42 %3.52 %3.47 %3.46 %
Return on average assets (3)(0.73)%0.61 %0.98 %1.02 %1.00 %
Return on average equity (3)(7.39)%7.08 %12.78 %13.60 %13.60 %
Loan to deposit ratio78.65 %63.34 %63.33 %59.35 %57.07 %
Efficiency ratio93.58 %74.04 %66.37 %60.77 %65.24 %
Tier 1 leverage - Bancorp9.14 %9.34 %9.18 %8.70 %8.51 %
Tier 1 leverage - Bank11.03 %11.95 %11.75 %11.21 %11.04 %
Common equity tier 1 - Bancorp11.36 %12.94 %12.78 %12.51 %12.41 %
Common equity tier 1 - Bank13.94 %16.94 %16.76 %16.50 %16.49 %
Tier 1 risk-based capital - Bancorp11.55 %13.24 %13.07 %12.81 %12.71 %
Tier 1 risk-based capital - Bank13.94 %16.94 %16.76 %16.50 %16.49 %
Total risk-based capital - Bancorp13.87 %16.25 %16.08 %15.81 %15.76 %
Total risk based capital - Bank14.96 %17.92 %17.74 %17.47 %17.48 %
(1) Non-GAAP measure. Tangible common equity equals totals shareholder’s equity ($350,242) minus goodwill and core deposit intangible ($106,148). Tangible common equity per share equals tangible common equity total ($244,044) divided by shares outstanding 18,939,531.
(2) Net Interest Margin is computed by dividing annualized quarterly net interest income by quarterly average interest-bearing assets.
(3) Computed by annualizing quarterly net income.
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Community West Bancshares -- page 14
COMMUNITY WEST BANCSHARES
SCHEDULE OF AVERAGE BALANCES AND AVERAGE YIELDS AND RATES
(Unaudited)

 
For the Three Months Ended
June 30, 2024
For the Three Months Ended
March 31, 2024
For the Three Months Ended
June 30, 2023
(Dollars in thousands)Average
Balance		Interest
Income/
Expense		Average
Interest
Rate		Average
Balance		Interest
Income/
Expense		Average
Interest
Rate		Average
Balance		Interest
Income/
Expense		Average
Interest
Rate
ASSETS      
Interest-earning deposits in other banks$84,395 $1,076 5.10 %$34,200 $432 5.05 %$107,134 $1,374 5.13 %
Securities
Taxable securities681,934 5,328 3.13 %714,160 5,500 3.08 %765,304 5,826 3.05 %
Non-taxable securities (1)253,267 1,767 2.79 %254,108 1,768 2.78 %256,624 1,779 2.77 %
Total investment securities935,201 7,095 3.03 %968,268 7,268 3.00 %1,021,928 7,605 2.98 %
Total securities and interest-earning deposits1,019,596 8,171 3.21 %1,002,468 7,700 3.07 %1,129,062 8,979 3.18 %
Loans (2) (3)2,226,858 36,197 6.54 %1,283,068 18,299 5.74 %1,257,984 17,382 5.54 %
Total interest-earning assets3,246,454 $44,368 5.50 %2,285,536 $25,999 4.58 %2,387,046 $26,361 4.43 %
Allowance for credit losses(26,194)  (14,348)(15,317)  
Non-accrual loans1,605   — —   
Cash and due from banks26,624   26,772 26,467   
Bank premises and equipment21,074   14,177 9,392   
Other assets198,870   108,673 93,936   
Total average assets$3,468,433   $2,420,810 $2,501,524   
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Interest-bearing liabilities:      
Savings and NOW accounts$502,333 $239 0.19 %$421,412 $255 0.24 %$476,398 $158 0.13 %
Money market accounts816,224 5,696 2.81 %514,909 2,843 2.22 %547,452 2,423 1.78 %
Time certificates of deposit487,779 6,331 5.22 %187,775 1,920 4.11 %225,638 2,290 4.07 %
Total interest-bearing deposits1,806,336 12,266 2.73 %1,124,096 5,018 1.80 %1,249,488 4,871 1.56 %
Other borrowed funds207,108 2,674 5.16 %122,419 1,536 5.02 %69,653 911 5.23 %
Total interest-bearing liabilities2,013,444 $14,940 2.98 %1,246,515 $6,554 2.11 %1,319,141 $5,782 1.76 %
Non-interest bearing demand deposits1,077,532   931,045 963,104   
Other liabilities42,648   35,583 34,492   
Shareholders’ equity334,809   207,667 184,787   
Total average liabilities and shareholders’ equity$3,468,433   $2,420,810 $2,501,524   
Interest income and rate earned on average earning assets $44,368 5.50 %$25,999 4.58 % $26,361 4.43 %
Interest expense and interest cost related to average interest-bearing liabilities 14,940 2.98 %6,554 2.11 % 5,782 1.76 %
Net interest income and net interest margin (4) $29,428 3.65 %$19,445 3.42 % $20,579 3.46 %

(1)    Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $371, $371, and $374 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively.
(2)    Loan interest income includes loan (costs) fees of $(22), $(139), and $26 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively.
(3)    Average loans do not include non-accrual loans but do include interest income recovered from previously charged off loans.
(4)    Net interest margin is computed by dividing net interest income by total average interest-earning assets.
















Community West Bancshares -- page 15
 For the Six Months Ended
June 30, 2024		For the Six Months Ended
June 30, 2023
(Dollars in thousands)Average
Balance		Interest
Income/
Expense		Average
Interest
Rate		Average
Balance		Interest
Income/
Expense		Average
Interest
Rate
ASSETS      
Interest-earning deposits in other banks$59,297 $1,507 5.08 %$57,285 $1,449 5.06 %
Securities
Taxable securities698,046 10,828 3.10 %774,569 11,712 3.02 %
Non-taxable securities (1)253,688 3,536 2.79 %257,036 3,557 2.77 %
Total investment securities951,734 14,364 3.02 %1,031,605 15,269 2.96 %
Total securities and interest-earning deposits1,011,031 15,871 3.14 %1,088,890 16,718 3.07 %
Loans (2) (3)1,754,964 54,497 6.24 %1,259,075 34,159 5.47 %
Total interest-earning assets2,765,995 $70,368 5.12 %2,347,965 $50,877 4.37 %
Allowance for credit losses(20,271)  (13,117)
Non-accrual loans802   — 
Cash and due from banks26,699  27,017 
Bank premises and equipment17,626  8,735 
Other assets153,771  90,142 
Total average assets$2,944,622   $2,460,742 
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Interest-bearing liabilities:   
Savings and NOW accounts$461,872 $466 0.20 %$501,177 $252 0.10 %
Money market accounts665,566 8,568 2.59 %508,028 3,259 1.29 %
Time certificates of deposit337,777 8,251 4.91 %147,577 2,365 3.23 %
Total interest-bearing deposits1,465,215 17,285 2.37 %1,156,782 5,876 1.02 %
Other borrowed funds164,763 4,210 5.11 %96,915 2,468 5.09 %
Total interest-bearing liabilities1,629,978 $21,495 2.64 %1,253,697 $8,344 1.34 %
Non-interest bearing demand deposits1,004,289   990,505 
Other liabilities39,117   33,050 
Shareholders’ equity271,238   183,490 
Total average liabilities and shareholders’ equity$2,944,622   $2,460,742 
Interest income and rate earned on average earning assets $70,368 5.12 %$50,877 4.37 %
Interest expense and interest cost related to average interest-bearing liabilities 21,495 2.64 %8,344 1.34 %
Net interest income and net interest margin (4) $48,873 3.55 %$42,533 3.65 %

(1)    Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $743 and $747 at June 30, 2024 and June 30, 2023, respectively.
(2)    Loan interest income includes loan (costs) fees of $(120) and $36 at June 30, 2024 and June 30, 2023, respectively.
(3)    Average loans do not include non-accrual loans but do include interest income recovered from previously charged off loans.
(4)    Net interest margin is computed by dividing net interest income by total average interest-earning assets.


CONTACTS: Investor Contact:                     Media Contact:
Shannon Livingston                    Debbie Nalchajian-Cohen
Executive Vice President, Chief Financial Officer        Public Relations
Community West Bancshares                Community West Bancshares
916-235-4617                    559-222-1322