Community West Bancshares Earns $1.1 Million in First Quarter, Nonaccrual Loans Decrease 48% Compared to a Year Ago

Community West Bancshares Earns $1.1 Million in First Quarter, Nonaccrual
Loans Decrease 48% Compared to a Year Ago

GOLETA, Calif., April 25, 2013 (GLOBE NEWSWIRE) -- Community West Bancshares
(Community West or the Company), (Nasdaq:CWBC), parent company of Community
West Bank (Bank), today reported net income increased 33.0% to $1.1 million in
the first quarter of 2013 (1Q13) compared to $819,000 in the first quarter a
year ago (1Q12). Community West earned $2.3 million in fourth quarter of 2012
(4Q12).

"We were profitable for the third consecutive quarter and have worked
diligently, doing what we set out to do, to improve the overall health of the
Company," stated Martin E. Plourd, President and Chief Executive
Officer."Credit quality metrics improved substantially, with total nonaccrual
loans at nearly half the levels that they were a year ago, and our capital
ratios continue to improve.Now that profitability appears sustainable, we can
sharpen our focus on responsible balance sheet growth."

1Q13 Financial Highlights

  *Net income of $1.1 million.
  *Earnings of $0.11 per diluted share.
  *Net interest margin continued to be strong and was 4.78% in 1Q13, compared
    to 4.91% in 4Q12 and 4.48% in 1Q12.
  *Nonaccrual loans declined 12.0% to $19.7 million at March 31, 2013,
    compared to $22.4million at December 31, 2012 and $38.3 million at March
    31, 2012.
  *Net real estate owned (REO) and repossessed assets, after subtracting the
    USDA guarantee, totaled $1.9 million at March 31, 2013, the same as three
    months earlier.The net REO was $4.9 million at March 31, 2012.
  *The total allowance for loan losses equaled 3.54% of total loans held for
    investment at March 31, 2013, compared to 3.66% at December 31, 2012 and
    3.19% a year ago. The quantitative historical loss allocation portion of
    the allowance calculation showed some improvement during 1Q13.
  *Community West Bank's capital ratios continue to strengthen - Total
    risk-based capital ratio was 15.63% and Tier 1 leverage ratio was 11.34%
    at March 31, 2013, an increase compared to a Total risk-based capital
    ratio of 15.27% and Tier 1 leverage ratio of 10.69% at December 31, 2012.
    The Bank's regulatory agreement requires that ratios of 12% and 9%,
    respectively, be maintained.

Including $262,000 of dividends and accretion on preferred stock, the net
income available to common stockholders was $827,000, or $0.11 per diluted
share, in 1Q13 compared to net income available to common stockholders of $2.1
million, or $0.26 per diluted share, in 4Q12 and net income available to
common stockholders of $557,000, or $0.08 per diluted share, in 1Q12. Book
value per common share was $6.41 at March 31, 2013, compared to $6.29 at
December 31, 2012 and $6.01 at March 31, 2012.

Credit Quality

"Community West's credit costs continued to decline and were significantly
below those of a year ago.As a result of this progress all of our key credit
quality metrics have improved and our reserve levels remain substantial," said
Plourd.

In the first quarter of 2013, $196,000 was taken as a credit to the loan loss
provision.This compares to $895,000 taken as a credit to the loan loss
provision in 4Q12 and a $2.0 million provision recorded in 1Q12.

The allowance for loan losses totaled $14.0 million at March 31, 2013, equal
to 3.54% of total loans held for investment, compared to 3.66% at December 31,
2012 and 3.19% a year ago.

Nonaccrual loans totaled $19.7 million, or 4.32% of total loans at March 31,
2013 compared to $22.4 million, or 4.84% of total loans, at December 31, 2012,
and $38.3 million, or 7.37% of total loans, a year ago.Of the $19.7 million
in nonaccrual loans, $10.5 million (53.3%) were commercial real estate loans,
$6.6 million (33.7%) were manufactured housing loans, $1.8 million (9.4%) were
commercial loans, $348,000 (1.8%) were SBA loans, $228,000 (1.2%) were home
equity line of credit loans and $117,000 (0.6%) were other installment loans.

REO and repossessed assets stood at $4.4 million at March 31, 2013 compared to
$1.9 million three months earlier and $5.8 million a year earlier. This
amount consists of $3.5 million REO and $900,000 from repossessed manufactured
housing loans.REO consists of only one property for which $2.5 million is
guaranteed by the USDA.Nonaccrual loans plus REO and repossessed assets, net
of SBA/USDA guarantees, totaled $21.6 million, or 4.1% of total assets, at
March 31, 2013 compared to $24.3 million, or 4.6% of total assets, three
months earlier and $43.2 million, or 6.9% of total assets, a year ago. 

Net charge-offs totaled $318,000 in 1Q13 compared to net recoveries of
$304,000 in 4Q12 and net charge-offs of $2.5 million in 1Q12. 

Income Statement

Community West's first quarter net interest income was $5.8 million compared
to $6.2 million in 4Q12 and $6.5 million in 1Q12.The first quarter net
interest margin improved 30 basis points to 4.78%, compared to 4.48% in
1Q12.The net interest margin was 4.91% in 4Q12.The margin remains strong and
4Q12 was positively impacted by one large interest recovery.

Non-interest income was $767,000 in 1Q13 compared to $761,000 in 4Q12 and $1.9
million in 1Q12.The non-interest income total for 1Q12 included $1.1 million
in gains on sales of loans.

First quarter operating or non-interest expenses totaled $5.7 million compared
to $5.5 million in 4Q12 and $5.6 million in 1Q12. Salaries and employee
benefits were higher due to the increase in staff, primarily lenders and
credit administration, and the payroll tax reinstatement.

Balance Sheet

Net loans were $442.4 million at March 31, 2013 compared to $449.2 million at
December 31, 2012 and $504.6 million a year ago.Commercial real estate loans
outstanding were down 19.7% from year ago levels to $132.0 million at March
31, 2013 and comprise 28.9% of the total loan portfolio.Manufactured housing
loans were down 5.7% from year ago levels to $174.9 million and represent
38.3% of total loans.SBA loans decreased 16.7% from a year ago to $80.1
million and represent 17.6% of the total loan portfolio and commercial loans
increased 1.0% from year ago levels to $40.3 million and represent 8.8% of the
total loan portfolio.

"On the liability side of the balance sheet, our total deposits declined
during the quarter as the Bank's balance sheet streamlining was managed and we
continue to change the deposit mix by letting higher cost interest-bearing
certificates of deposit run off," said Charles G. Baltuskonis, Executive Vice
President and Chief Financial Officer.

Non-interest-bearing deposit accounts were $48.9 million at March 31, 2013
compared to $53.6 million at December 31, 2012 and $55.0 million at March 31,
2012.Interest-bearing accounts decreased to $264.0 million at the end of
March, compared to $269.5 million at December 31, 2012 and $291.5 million a
year ago.Total deposits were $434.0 million at March 31, 2013 compared to
$434.2 million at December 31, 2012 and $510.8 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 $359.2 million at March 31, 2013 compared to $368.9 million at
December 31, 2012, and $402.8 million at March 31, 2012.

Total assets were $533.1 million at March 31, 2013 compared to $532.1 million
at December 31, 2012, and $623.2 million a year ago.Stockholders' equity
improved to $54.1 million at March 31, 2013, compared to $53.0 million at
December 31, 2012 and $51.1 million at March 31, 2012.

The Company is prohibited from paying dividends on its common or preferred
stock without the prior approval of the Federal Reserve Board (FRB).The FRB
denied the paying of the $195,000 dividend payments on the preferred shares
that were due on May 15, 2012, August 15, 2012, November 15, 2012 and February
15, 2013.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                                          
INCOME STATEMENTS                                                  
(unaudited)                                                        
(in 000's, except per share data)                                  
                                                                  
                                             Three Months Ended
                                             March 31, December 31, March 31,
                                             2013      2012         2012
                                                                  
Interest income                                                    
Loans                                         $6,794  $7,254     $8,082
Investment securities and other               170      188         239
Total interest income                        6,964    7,442       8,321
Interest expense                                                   
Deposits                                      759      843         1,265
Other borrowings and convertible debentures   407      433         528
Total interest expense                       1,166    1,276       1,793
Net interest income                           5,798    6,166       6,528
Provision for loan losses                     (196)    (895)       1,983
Net interest income after                                         
provision for loan losses                     5,994    7,061       4,545
Non-interest income                                                
Other loan fees                               230      277         250
Gain from loan sales, net                     161      139         1,097
Other                                         376      345         541
Total non-interest income                    767      761         1,888
Non-interest expenses                                              
Salaries and employee benefits                3,514    3,026       2,885
Occupancy and equipment expenses              455      464         495
FDIC assessment                               265      296         426
Professional services                         315      491         325
Loss on sale and write-down of foreclosed                          
real estate
and repossessed assets                       84       71          409
Other operating expenses                      1,039    1,142       1,074
Total non-interest expenses                  5,672    5,490       5,614
Income before income taxes                    1,089    2,332       819
Provision for income taxes                    --       --          --
                                                                  
NET INCOME                                   $1,089  $2,332     $819
                                                                  
Dividends and accretion on preferred stock   262      263         262
                                                                  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS  $827    $2,069    $557
                                                                  
Earnings per common share:                                         
Basic                                         $0.14   $0.35      $0.09
Diluted                                       $0.11   $0.26      $0.08

                                                                 
COMMUNITY WEST BANCSHARES                                         
CONDENSED CONSOLIDATED BALANCE SHEETS                             
(unaudited)                                                       
(in 000's, except per share data)                                 
                                                                 
                                           March 31,  December 31, March 31,
                                           2013       2012         2012
                                                                 
Cash and cash equivalents                   $35,689  $27,891    $43,145
Time and interest-earning deposits in other 3,537     3,653       5,403
financial institutions
Investment securities                       23,902    24,040      32,146
Loans:                                                            
Commercial                                 40,311    37,266      39,906
Commercial real estate                     132,009   126,676     164,437
SBA                                        80,123    85,957      96,239
Manufactured housing                       174,923   177,391     185,539
Single family real estate                  9,096     9,945       11,518
HELOC                                      17,318    17,852      20,527
Consumer                                   264       355         362
Mortgage loans held for sale               2,312     8,223       818
Total loans                                 456,356   463,665     519,346
                                                                 
Loans, net                                                        
Held for sale                              61,753    68,694      58,460
Held for investment                        394,603   394,971     460,886
Less: Allowance                            (13,950)  (14,464)    (14,705)
Net held for investment                    380,653   380,507     446,181
NET LOANS                                  442,406   449,201     504,641
                                                                 
Other assets                                27,589    27,316      37,890
                                                                 
TOTAL ASSETS                               $533,123 $532,101   $623,225
                                                                 
Deposits                                                          
Non-interest-bearing demand                $48,920  $53,605    $54,986
Interest-bearing demand                    264,044   269,466     291,529
Savings                                    16,621    16,351      19,579
CDs over 100K                              90,708    80,710      121,993
CDs under 100K                             13,726    14,088      22,712
Total Deposits                              434,019   434,220     510,799
Other borrowings                            41,735    41,852      58,852
Other liabilities                           3,299     2,980       2,464
TOTAL LIABILITIES                          479,053   479,052     572,115
                                                                 
Stockholders' equity                        54,070    53,049      51,110
                                                                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $533,123  $532,101    $623,225
                                                                 
Shares outstanding                          6,033     5,995       5,990
                                                                 
Book value per common share                 $6.41    $6.29      $6.01
                                                                 

                                                              
ADDITIONAL FINANCIAL INFORMATION                               
(Dollars in thousands except per                               
share amounts)(Unaudited)
                                    Quarter Ended Quarter Ended Quarter Ended
PERFORMANCE MEASURES AND RATIOS      Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Return on average common equity     11.46%        25.52%        9.07%
Return on average assets            0.83%         1.71%         0.52%
Efficiency ratio                     86.40%        79.26%        66.71%
Net interest margin                  4.78%         4.91%         4.48%
                                                              
                                    Quarter Ended Quarter Ended Quarter Ended
AVERAGE BALANCES                     Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Average assets                       $524,572    $544,847    $631,547
Average earning assets               492,304      499,855      586,399
Average total loans                  460,741      466,401      540,763
Average deposits                     426,367      447,827      511,634
Average equity (including preferred  53,363       51,844       51,209
stock)
Average common equity (excluding     37,998       36,545       36,112
preferred stock)
                                                              
EQUITY ANALYSIS                      Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Total equity                         $54,070     $53,049     $51,110
Less: senior preferred stock         15,408       15,341       15,141
Total common equity                  $38,662     $37,708     $35,969
                                                              
Common stock outstanding             6,033        5,995        5,990
Book value per common share          $6.41       $6.29       $6.01
                                                              
ASSET QUALITY                        Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Nonaccrual loans                     $19,707     $22,425     $38,290
Nonaccrual loans/total loans         4.32%         4.84%         7.37%
REO and repossessed assets           $4,389      $1,889      $5,776
Less: SBA/USDA-guaranteed amounts    2,481         0             $844
                                                              
Net REO and repossessed assets       $1,908      $1,889      $4,932
Nonaccrual loans plus net REO        21,615        24,314        $43,222
Nonaccrual loans plus net REO/total  4.05%         4.57%         6.94%
assets
Net loan charge-offs in the quarter  $318        $(304)      $2,548
Net charge-offs in the quarter/total 0.07%         -0.07%        0.49%
loans
                                                              
Allowance for loan losses            $13,950     $14,464     $14,705
Plus: Reserve for undisbursed loan   90           102          206
commitments
Total allowance for credit losses    $14,040     $14,566     $14,911
Total allowance for loan
losses/total loans held for          3.54%         3.66%         3.19%
investment
Total allowance for loan             70.79%        64.50%        38.40%
losses/nonaccrual loans
                                                              
Community West Bancshares                                      
Tier 1 leverage ratio                10.29%        9.72%         8.08%
Tier 1 risk-based capital ratio      13.12%        12.81%        10.61%
Total risk-based capital ratio       16.27%        15.98%        13.52%
                                                              
Community West Bank                                            
Tier 1 leverage ratio                11.34%        10.69%        8.52%
Tier 1 risk-based capital ratio      14.35%        13.99%        11.15%
Total risk-based capital ratio       15.63%        15.27%        12.43%
                                                              
INTEREST SPREAD ANALYSIS             Mar. 31, 2013 Dec. 31, 2012 Mar. 31, 2012
Yield on interest-bearing deposits   0.82%         0.85%         1.10%
Yield on total loans                 5.98%         6.19%         6.01%
Yield on investments                 2.44%         2.55%         2.23%
Yield on earning assets              5.74%         5.92%         5.71%
                                                              
Cost of deposits                     0.72%         0.75%         0.99%
Cost of FHLB advances                2.92%         2.94%         2.43%
Cost of interest-bearing liabilities 1.14%         1.17%         1.37%

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