Community West Bancshares Earns $2.3 Million in Fourth Quarter, Nonaccrual Loans Decrease 33% Compared to Prior Quarter End,

Community West Bancshares Earns $2.3 Million in Fourth Quarter, Nonaccrual
Loans Decrease 33% Compared to Prior Quarter End, Results Highlight Continued
Success of Turnaround Plan

GOLETA, Calif., Jan. 29, 2013 (GLOBE NEWSWIRE) -- Community West Bancshares
(Community West or the Company), (Nasdaq:CWBC), parent company of Community
West Bank (Bank), today reported it earned $2.3 million in the fourth quarter
of 2012 (4Q12) compared to net income of $613,000 in third quarter of 2012
(3Q12) and a net loss of $8.6 million in the fourth quarter a year ago (4Q11).
For the full year, Community West reported net income of $3.2 million compared
to a net loss of $10.5 million a year ago.

"Our team's success in executing our Strategic Plan on schedule allowed us to
end a highly successful year with three quarters of profitability behind us
and restore the Bank to stable footing," stated Martin E. Plourd, President
and Chief Executive Officer. "Our 2013 focus is on addressing growth in a
responsible manner that supports lending in the communities we serve and to
continue to work diligently to improve asset quality and reduce problem
assets."

The Company's $895,000 net reduction in the provision for loan losses in 4Q12
was primarily the result of two factors: net quarterly loan loss recoveries of
$304,000 and a $17.1 million decrease in total loans held for investment as
problem assets continue to be resolved. The ratio of the allowance for loan
losses to total loans held for investment remained basically unchanged – 3.66%
at December 31, 2012 compared to 3.65% as of September 30, 2012.

4Q12 Financial Highlights

  * Nonaccrual loans declined 32.7% to $22.4 million at December 31, 2012,
    compared to $33.3 million at September 30, 2012.
  * Net income of $2.3 million in 4Q12.
  * Earnings of $0.26 per diluted share in 4Q12.
  * Net interest margin continued to be strong and was 4.91% in 4Q12, compared
    to 4.65% in 3Q12 and 4.84% in 4Q11.
  * Net real estate owned (REO) and repossessed assets, after subtracting the
    SBA guarantee, decreased to $1.9 million at December 31, 2012 compared to
    $3.8 million three months earlier and $5.6 million a year earlier.
  * The total allowance for loan losses equaled 3.66% of total loans held for
    investment at December 31, 2012, compared to 3.65% at September 30, 2012
    and 3.24% a year ago.
  * Community West Bank's capital ratios continue to strengthen - Total
    risk-based capital ratio was 15.27% and Tier 1 leverage ratio was 10.69%
    at December 31, 2012, an increase compared to Total risk-based capital
    ratio of 13.89% and Tier 1 leverage ratio of 9.84% at September 30, 2012.
    The Bank's regulatory agreement requires that ratios of 12% and 9%,
    respectively, be maintained.

Including $263,000 of dividends and accretion on preferred stock, the net
income applicable to common stockholders in 4Q12 was $2.1 million, or $0.26
per diluted share, in 4Q12 compared to net income applicable to common
stockholders of $360,000, or $0.06 per diluted share, in 3Q12 and a net loss
applicable to common stockholders of $8.8 million, or $1.47 per diluted share,
in 4Q11. In 2012, including $1.0 million in preferred stock dividends, the net
income applicable to common stockholders was $2.1 million, or $0.31 per
diluted share, compared to a net loss applicable to common stockholders of
$11.5 million, or $1.93 per diluted share, in 2011. Book value per common
share was $6.29 at December 31, 2012, compared to $5.93 at September 30, 2012
and $5.94 at December 31, 2011.

Credit Quality

"We made exceptional progress in continuing to reduce problem assets during
the fourth quarter and our credit costs continued to decline and were
significantly below those of a year ago. As a result of this progress during
4Q12 and 2012 as a whole, all of our key credit quality metrics have improved
and Community West's reserve levels remain substantial," said Plourd.

In the fourth quarter of 2012, $895,000 was taken as a credit to the loan loss
provision. This compares to a $1.3 million provision in the preceding quarter
and a $5.9 million provision in 4Q11. The loan loss provision for the year was
$4.3 million compared to $14.6 million in 2011.

The allowance for loan losses totaled $14.5 million at December 31, 2012,
equal to 3.66% of total loans held for investment, compared to 3.65% at
September 30, 2012 and 3.24% a year ago.

Nonaccrual loans totaled $22.4 million, or 4.84% of total loans at December
31, 2012 compared to $33.3 million, or 7.0% of total loans, at September 30,
2012, and $28.7 million, or 5.23% of total loans, a year ago. 

Of the $22.4 million in nonaccrual loans, $11.1 million (49.6%) were
commercial real estate loans, $7.5 million, (33.6%) were manufactured housing
loans, $1.4 million (6.3%) were SBA loans, $1.9 million (8.6%) were commercial
loans, $269,000 (1.2%) were home equity line of credit loans and $123,000
(0.55%) were other installment loans.

REO and repossessed assets was $1.9 million at December 31, 2012 compared to
$3.8 million three months earlier and $5.6 million a year earlier.

Nonaccrual loans plus net REO and repossessed assets totaled $24.3 million, or
4.57% of total assets, at December 31, 2012 compared to $37.1 million, or 6.7%
of total assets, three months earlier and $34.3 million, or 5.4% of total
assets, a year ago. Net recoveries totaled $304,000 in 4Q12, compared to net
charge-offs of $1.7 million in 3Q12 and net charge-offs of $4.9 million in
4Q11.  

Statement of Operations

Fourth quarter net interest income was $6.2 million compared to $6.1 million
in 3Q12 and $7.3 million in 4Q11. In the year 2012, net interest income was
$25.4 million compared to $28.3 million in 2011. The fourth quarter net
interest margin improved 26 basis points to 4.91%, compared to 4.65% in 3Q12
and improved seven basis points compared to 4.84% in 4Q11. The net interest
margin for the year was 4.70% compared to 4.58% in 2011 as fewer loans
continue to be placed on nonaccrual in 2012. "Our net interest margin has held
up as deposit costs have come down faster than loan yields," said
Plourd. "However, it is possible that the margin will come under some pressure
in the next few quarters as loan yields decline."

Non-interest income was $761,000 in 4Q12 compared to $1.1 million in 3Q12 and
$790,000 in 4Q11. In 2012, non-interest income increased 34.2% to $4.2 million
compared to $3.1 million in of 2011. The non-interest income total for the
full year included $1.7 million in gains on sales of loans.

Fourth quarter operating or non-interest expenses totaled $5.5 million
compared to $5.3 million in 3Q12 and $5.3 million in 4Q11. In the full year,
non-interest expenses decreased 4.7% to $22.1 million compared to $23.2
million in 2011. The decrease in non-interest expenses for the full year is in
part due to the improved credit metrics, which resulted in the decline in
costs associated with real estate owned. Losses on sales of REO and foreclosed
assets declined 58.9% to $1.0 million in 2012, compared to $2.5 million in
2011. 

Balance Sheet

"We continue to let higher interest-bearing certificates of deposit run off as
we focus our efforts on growing lower-cost core deposits," said Charles G.
Baltuskonis, Executive Vice President and Chief Financial Officer. "This is
part of our ongoing effort to strengthen the Company and its core banking
strategy, on which we have been working throughout the year."

Net loans were $449.2 million at December 31, 2012 compared to $459.9 million
at September 30, 2012 and $532.7 million a year ago. Commercial real estate
loans outstanding were down 25.0% from year ago levels to $126.7 million at
December 31, 2012 and comprise 27.3% of the total loan portfolio. Manufactured
housing loans were down 6.3% from year ago levels to $177.4 million and
represent 38.3% of total loans. SBA loans decreased 23.1% from a year ago to
$86.0 million and represent 18.5% of the total loan portfolio and commercial
loans were down 11.4% from year ago levels to $37.3 million and represent 8.0%
of the total loan portfolio.

Non-interest-bearing deposit accounts increased 7.4% to $53.6 million at
December 31, 2012 compared to $49.9 million at December 31,
2011. Interest-bearing accounts decreased to $269.5 million at the end of
December, compared to $289.8 million a year ago. Total deposits were $434.2
million at December 31, 2012 compared to $511.3 million a year ago. Core
deposits, defined as non-interest-bearing checking, interest-bearing checking,
money market accounts, savings accounts and retail certificates of deposit
totaled $368.9 million at December 31, 2012 compared to $396.6 million at
December 31, 2011.

Total assets were $532.1 million at December 31, 2012 compared to $556.8
million at September 30, 2012, and $633.3 million a year ago. Stockholders'
equity improved to $53.0 million at December 31, 2012, compared to $50.8
million at September 30, 2012 and $50.6 million at December 31, 2011. 

The Company is not allowed to pay any dividends on its common or preferred
stock without prior Federal Reserve Board (FRB) approval. The FRB has denied
approving payment of the dividends on the preferred shares and no approval for
payment of common dividends has been requested. On May 15, 2012, August 15,
2012 and November 15, 2012 the $195,000 dividend payments were due on the
preferred shares. Such amounts continue to be accrued as incurred and deducted
from capital.

On December 11, 2012, the U.S. Treasury sold its shares of the Company's
perpetual preferred stock in a non-public offering as part of a modified Dutch
auction. Such shares were all purchased by third parties unaffiliated with the
Company. The Treasury continues to hold a warrant to purchase up to 521,158
shares of the Company's common stock at $4.49 per share. 

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, which has five full-service California branch banking offices, in
Goleta, Santa Barbara, Santa Maria, Ventura and Westlake Village. The
principal business activities of the Company are Relationship banking,
Mortgage lending and SBA lending.

Safe Harbor Disclosure

This release contains forward-looking statements that reflect management's
current views of future events and operations. These forward-looking
statements are based on information currently available to the Company as of
the date of this release. It is important to note that these forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, including, but not limited to, the ability of the Company to
implement its strategy and expand its lending operations.

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in 000's, except per share data)
                                                                   
                        Three Months Ended              Twelve Months Ended 
                        December September December 31, December  December 31,
                        31,      30,       2011         31,       2011
                        2012     2012                   2012
                                                                   
Interest income                                                    
Loans                    $ 7,254  $ 7,324   $ 9,026      $ 30,490  $ 35,435
Investment securities    188      188       252          819       1,077
and other
Total interest income    7,442    7,512     9,278        31,309    36,512
Interest expense                                                   
Deposits                 842      970       1,395        4,130     5,951
Other borrowings and     434      433       555          1,819     2,299
convertible debentures
Total interest expense   1,276    1,403     1,950        5,949     8,250
Net interest income      6,166    6,109     7,328        25,360    28,262
Provision for loan       (895)    1,293     5,940        4,281     14,591
losses
Net interest income
after provision for      7,061    4,816     1,388        21,079    13,671
loan losses
Non-interest income                                                
Other loan fees          277      302       394          1,124     1,380
Gain on loan sales       139      366       99           1,660     370
Other                    345      389       297          1,435     1,394
Total non-interest       761      1,057     790          4,219     3,144
income
Non-interest expenses                                              
Salaries and employee    3,026    2,899     2,921        11,552    11,816
benefits
Occupancy and equipment  464      451       483          1,829     1,969
expenses
FDIC assessment          296      311       216          1,342     957
Professional services    491      372       301          1,484     1,058
Loss on sale and
write-down of            71       189       514          1,040     2,533
foreclosed real estate
and repossessed assets
Other operating          1,142    1,038     879          4,878     4,890
expenses
Total non-interest       5,490    5,260     5,314        22,125    23,223
expenses
Income (loss) before     2,332    613       (3,136)      3,173     (6,408)
income taxes
Provision for income     --       --        5,417        --        4,077
taxes
                                                                   
NET INCOME (LOSS)        $ 2,332  $ 613     $ (8,553)    $ 3,173   $ (10,485)
                                                                   
Dividends and accretion  263      253       262          1,046     1,047
on preferred stock 
                                                                   
NET INCOME (LOSS)
APPLICABLE TO COMMON                                               
STOCKHOLDERS
                         $ 2,069  $ 360     $ (8,815)    $ 2,127   $ (11,532)
                                                                   
                                                                   
Earnings (loss) per                                                
common share:
Basic                    $ 0.35   $ 0.06    $ (1.47)     $ 0.36    $ (1.93)
Diluted                  $ 0.26   $ 0.06    $ (1.47)     $ 0.31    $ (1.93)

 
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000's, except per share data)
 
                                       December 31, September 30, December 31,
                                       2012         2012          2011
                                                                   
Cash and cash equivalents               $ 27,891     $ 32,306      $ 22,572
Interest-earning deposits in other      3,653        3,890        347
financial institutions
Investment securities                   24,040       24,823        38,923
Loans:                                                             
Commercial                              37,266       34,291        42,058
Commercial real estate                  126,676      137,230       168,812
SBA                                     85,957       88,257        111,786
Manufactured housing                    177,391      180,105       189,331
Single family real estate               9,945        9,953         11,789
HELOC                                   17,852       19,018        20,719
Consumer                                355          406           312
Mortgage loans held for sale            8,223        5,733         3,179
Total loans                             463,665      474,993       547,986
                                                                   
Loans, net                                                         
Held for sale                           68,694       62,894        77,303
Held for investment                     394,971      412,099       470,683
Less: Allowance                         (14,464)     (15,055)      (15,270)
Net held for investment                 380,507      397,044       455,413
NET LOANS                               449,201      459,938       532,716
                                                                   
Other assets                            27,316       35,839        38,790
                                                                   
TOTAL ASSETS                            $ 532,101    $ 556,796     $ 633,348
                                                                   
Deposits                                                           
Non-interest-bearing                    $ 53,605     $ 54,466      $ 49,894
Interest-bearing                        269,466      274,894       289,796
Savings                                 16,351       16,443        19,429
CDs over 100K                           80,710       98,362        128,254
CDs under 100K                          14,088       15,801        23,889
Total Deposits                          434,220      459,966       511,262
Other borrowings                        41,852       41,852        68,852
Other liabilities                       2,980        4,165         2,608
TOTAL LIABILITIES                       479,052      505,983       582,722
                                                                   
Stockholders' equity                    53,049       50,813        50,626
                                                                   
TOTAL LIABILITIES AND STOCKHOLDERS'     $ 532,101    $ 556,796     $ 633,348
EQUITY
                                                                   
Shares outstanding                      5,995        5,990         5,990
                                                                   
Book value per common share             $ 6.29       $ 5.93        $ 5.94

 
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)
                        Quarter    Quarter    Quarter    Twelve Months Ended
                        Ended      Ended      Ended
PERFORMANCE MEASURES    Dec. 31,   Sep. 30,   Dec. 31,   Dec. 31,   Dec. 31,
AND RATIOS              2012       2012       2011       2012       2011
Return on average       25.52%     6.89%      -77.06%    8.85%      -22.39%
common equity 
Return on average       1.71%      0.43%      -5.36%     0.55%      -1.60%
assets 
Efficiency ratio        79.26%     73.40%     65.46%     74.80%     73.94%
Net interest margin     4.91%      4.65%      4.84%      4.70%      4.58%
                                                                     
                        Quarter    Quarter    Quarter    Twelve Months Ended
                        Ended      Ended      Ended
AVERAGE BALANCES        Dec. 31,   Sep. 30,   Dec. 31,   Dec. 31,   Dec. 31,
                        2012       2012       2011       2012       2011
Average assets           $ 544,847  $ 564,609  $ 637,790  $ 580,964  $ 653,822
Average earning assets   499,855    522,819    600,180    539,927    617,042
Average total loans      466,401    484,944    554,759    500,273    570,684
Average deposits         447,827    469,236    512,661    479,315    519,772
Average equity
(including preferred     51,844     50,796     59,428     51,054     61,759
stock)
Average common equity
(excluding preferred     36,545     35,564     44,397     35,861     46,828
stock)
                                                                     
EQUITY ANALYSIS         Dec. 31,   Sep. 30,   Dec. 31,               
                        2012       2012       2011
Total equity             $ 53,049   $ 50,813   $ 50,626              
Less: senior preferred   15,341     15,275     15,074                
stock
Total common equity      $ 37,708   $ 35,538   $ 35,552              
                                                                     
Common stock             5,995      5,990      5,990                 
outstanding
Book value per common    $ 6.29     $ 5.93     $ 5.94                
share
                                                                     
ASSET QUALITY           Dec. 31,   Sep. 30,   Dec. 31,               
                        2012       2012       2011
Nonaccrual loans         $ 22,425   $ 33,320   $ 28,670              
Nonaccrual loans/total  4.84%      7.01%      5.23%                  
loans
REO and repossessed      $ 1,889    $ 3,761    $ 6,701               
assets
Less: SBA-guaranteed    0          0           $ 1,099               
amounts
                                                                     
Net REO and repossessed  $ 1,889    $ 3,761    $ 5,602               
assets
Nonaccrual loans plus   24,314     37,081      $ 34,272              
net REO
Nonaccrual loans plus   4.57%      6.66%      5.41%                  
net REO/total assets
Net loan charge-offs in  $ (304)    $ 1,684    $ 4,919               
the quarter
Net charge-offs in the  -0.07%     0.35%      0.90%                  
quarter/total loans 
                                                                     
Allowance for loan       $ 14,464   $ 15,055   $ 15,270              
losses
Plus: Reserve for
undisbursed loan         102        127        356                   
commitments
Total allowance for      $ 14,566   $ 15,182   $ 15,626              
credit losses
Total allowance for
loan losses/total loans 3.66%      3.65%      3.24%                  
held for investment
Total allowance for
loan losses/nonaccrual  64.50%     45.18%     53.26%                 
loans
                                                                     
Community West                                                       
Bancshares
Tier 1 leverage ratio   9.72%      8.98%      7.91%                  
Tier 1 risk-based       12.81%     11.59%     10.08%                 
capital ratio
Total risk-based        15.98%     14.66%     12.92%                 
capital ratio
                                                                     
Community West Bank                                                  
Tier 1 leverage ratio   10.69%     9.84%      8.26%                  
Tier 1 risk-based       13.99%     12.62%     10.53%                 
capital ratio
Total risk-based        15.27%     13.89%     11.80%                 
capital ratio
                                                                     
INTEREST SPREAD         Dec. 31,   Sep. 30,   Dec. 31,               
ANALYSIS                2012       2012       2011
Yield on
interest-bearing        0.85%      0.93%      1.20%                  
deposits
Yield on total loans    6.19%      6.01%      6.45%                  
Yield on investments    2.55%      2.22%      2.24%                  
Yield on earning assets 5.92%      5.72%      6.13%                  
                                                                     
Cost of deposits        0.75%      0.82%      1.08%                  
Cost of FHLB advances   2.94%      2.93%      2.39%                  
Cost of
interest-bearing        1.17%      1.22%      1.46%                  
liabilities

CONTACT: Charles G. Baltuskonis, EVP & CFO
         805.692.5821
         www.communitywestbank.com