Community West Bancshares Earns $2.1 Million in Second Quarter

Community West Bancshares Earns $2.1 Million in Second Quarter

GOLETA, Calif., July 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 to $2.1 million in the
second quarter of 2013 (2Q13) compared to $1.1 million in the first quarter of
2013 (1Q13) and a net loss of $591,000 in the second quarter a year ago
(2Q12). In the first six months of the year, Community West earned $3.2
million compared to $228,000 in the first six months of 2012.

"We were profitable for the fourth consecutive quarter and have made progress
with operating efficiencies while keeping a strong net interest margin,"
stated Martin E. Plourd, President and Chief Executive Officer. "Credit
quality metrics have stabilized, with total nonaccrual loans at just over half
the levels that they were as of March 31, 2012, and our capital ratios
continue to strengthen. As we look forward, we continue to focus on growing
the Bank operations and increasing our lending outreach in the communities we
serve."

2Q13 Financial Highlights

  *Net income of $2.1 million.
  *Earnings of $0.23 per diluted share.
  *Net interest margin continued to be strong and was 4.81% in 2Q13, compared
    to 4.78% in both 1Q13 and 2Q12.
  *Nonaccrual loans were $20.7 million at June 30, 2013, compared to $19.7
    million at March 31, 2013 and $32.8 million at June 30, 2012.
  *Net real estate owned (REO) and repossessed assets, after subtracting the
    USDA/SBA guarantees, totaled $1.5 million at June 30, 2013, compared to
    $1.9 million at March 31, 2013 and $2.1 million at June 30, 2012.
  *The total allowance for loan losses equaled 3.14% of total loans held for
    investment at June 30, 2013, compared to 3.54% at March 31, 2013 and 3.59%
    a year ago.
  *Community West Bank's capital ratios continue to strengthen - Total
    risk-based capital ratio was 16.10% and Tier 1 leverage ratio was 11.65%
    at June 30, 2013, an increase compared to a Total risk-based capital ratio
    of 15.63% and Tier 1 leverage ratio of 11.34% at March 31, 2013. 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 $1.9 million, or $0.23 per diluted
share, in 2Q13 compared to net income available to common stockholders of
$827,000, or $0.11 per diluted share, in 1Q13 and a net loss to common
stockholders of $859,000, or $0.14 per diluted share, in 2Q12. Book value per
common share was $5.98 at June 30, 2013, compared to $6.41 at March 31, 2013
and $5.87 at June 30, 2012. The decrease was attributable to the increased
outstanding shares from Debenture conversions.

Credit Quality

"Community West's key credit quality metrics have improved over the last year,
including further progress during the current quarter, while our reserve
levels remain substantial," said Plourd. As a result of substantial reserves
already in place representing 3.14% of total loans outstanding, as well as
declining net charge-offs, Community West released $1.1 million in reserves
during the second quarter of 2013 due to improved historical experience. This
compares to $196,000 released in 1Q13 and a $1.9 million increase in the
reserve recorded in 2Q12. 

The allowance for loan losses totaled $12.5 million at June 30, 2013, equal to
3.14% of total loans held for investment, compared to 3.54% at March 31, 2013
and 3.59% a year ago.

Nonaccrual loans totaled $20.7 million, or 4.48% of total loans at June 30,
2013 compared to $19.7 million, or 4.32% of total loans, at March 31, 2013,
and $32.8 million, or 6.66% of total loans, a year ago.The modest increase in
nonaccrual loans compared to the preceding quarter end was primarily due to
one loan relationship for $2.6 million placed on nonaccrual status near
quarter end even though it was current on all payments and believed to be
fully secured as of June 30, 2013.

Of the $20.7 million in nonaccrual loans, $11.7 million (56.8%) were
commercial real estate loans, $5.8 million (28.1%) were manufactured housing
loans, $1.8 million (8.6%) were SBA loans, $565,000 (2.7%) were commercial
loans, $557,000 (2.7%) were other installment loans and $226,000 (1.1%) were
home equity line of credit loans.

REO and repossessed assets stood at $4.1 million at June 30, 2013 compared to
$4.4 million three months earlier and $2.3 million a year earlier. This
amount consists of $3.6 million in REO and $500,000 from repossessed
manufactured housing loans.REO consists of three properties for which $2.6
million is guaranteed by the SBA/USDA.Nonaccrual loans plus REO and
repossessed assets, net of SBA/USDA guarantees, totaled $22.1 million, or 4.1%
of total assets, at June 30, 2013 compared to $21.6 million, or 4.1% of total
assets, three months earlier and $34.9 million, or 6.1% of total assets, a
year ago. 

Net charge-offs continued to improve and totaled $410,000 in 2Q13 compared to
net charge-offs of $318,000 in 1Q13 and net charge-offs of $1.2 million in
2Q12. 

Income Statement

Community West's second quarter net interest income was $5.9 million compared
to $5.8 million in 1Q13 and $6.6 million in 2Q12.The second quarter net
interest margin improved three basis points to 4.81%, compared to 4.78% in
both 1Q13 and in 2Q12.In the first six months of the year, the net interest
margin was 4.79% compared to 4.63% in the first six months of 2012.

Non-interest income was $802,000 in 2Q13 compared to $767,000 in 1Q13 and
$513,000 in 2Q12.In the first six months of 2013 non-interest income was $1.6
million compared to $2.4 million in the first six months of 2012, which
included a $1.2 million gain on sale of loans.

Second quarter operating or non-interest expenses improved to $5.6 million
compared to $5.7 million in 1Q13 and $5.8 million in 2Q12. Year-to-date
non-interest expenses were $11.3 million compared to $11.4 million in the
first six months of 2012.Salaries and employee benefits increased due to the
additions to staff, primarily lenders and credit administration, and the 2013
payroll tax increase.

Balance Sheet

"While net loan growth has been flat in recent quarters, we are encouraged by
new loan originations in the pipeline. We expect to see moderate loan growth
in the second half of 2013," said Charles G. Baltuskonis, Executive Vice
President and Chief Financial Officer.

Net loans were $448.4 million at June 30, 2013 compared to $442.4 million at
March 31, 2013 and $477.2 million a year ago.Commercial real estate loans
outstanding were down 4.4% from year ago levels to $138.4 million at June 30,
2013 and comprise 30.0% of the total loan portfolio.Manufactured housing
loans were down 6.0% from year ago levels to $172.4 million and represent
37.4% of total loans.SBA loans decreased 13.6% from a year ago to $78.6
million and represent 17.1% of the total loan portfolio and commercial loans
increased 13.9% from year ago levels to $42.7 million and represent 9.3% of
the total loan portfolio.

"While total deposits were flat during the quarter, non-interest-bearing
deposit accounts increased 8.6% compared to the prior quarter end.We continue
to change the deposit mix by focusing on growing low cost deposits and letting
higher cost interest-bearing certificates of deposit run off," said
Baltuskonis.

Non-interest-bearing deposit accounts increased 8.6% to $53.1 million at June
30, 2013 compared to $48.9 million three months earlier.Non-interest-bearing
deposits were $51.3 million a year ago.Interest-bearing deposit accounts
decreased to $257.8 million at the end of June, compared to $264.0 million at
March 31, 2013 and $280.6 million a year ago.Total deposits were $434.9
million at June 30, 2013 compared to $434.0 million at March 31, 2013 and
$478.3 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 $356.7 million at June 30, 2013
compared to $359.2 million at March 31, 2013, and $380.8 million a year ago.

Total assets were $536.1 million at June 30, 2013 compared to $533.1 million
at March 31, 2013, and $573.0 million a year ago.Stockholders' equity
improved to $62.1 million at June 30, 2013, compared to $54.1 million at March
31, 2012 and $50.4 million at June 30, 2012.Book value per common share was
$5.98 at June 30, 2013, compared to $6.41 at March 31, 2013 and $5.87 at June
30, 2012.

Convertible Subordinated Debentures

On August 9, 2010, the Company completed an offering of $8,085,000 convertible
subordinated debentures (Debentures). The Debentures pay interest at 9% until
conversion, redemption or maturity and will mature on August 9, 2020. The
Debentures may be redeemed by the Company after January 1, 2014. Prior to
maturity or redemption, the Debentures were convertible into common stock at
the election of the holder at $3.50 per share if converted on or prior to July
1, 2013 and, subsequently, at $4.50 per share between July 2, 2013 and July 1,
2016 and $6.00 per share from July 2, 2016 until maturity or redemption.

On or before June 30, 2013, $6,418,000 of the Debentures was converted into
common stock, leaving a Debenture balance of $1,667,000 as of June 30, 2013.
Common shares outstanding were 7,800,155 as of June 30, 2013.

On July 1, 2013, an additional $222,000 of the Debentures was converted into
common stock, leaving a Debenture balance of $1,445,000 as of July 1, 2013.
Common shares outstanding were 7,864,385 as of July 25, 2013.

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.

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, February
15, 2013 and May 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.The Treasury also sold at auction on June 6, 2013 its warrant to
purchase up to 521,158 shares of the Company's common stock at $4.49 per
share.

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 INCOME                                    
STATEMENTS
(unaudited)                                                      
(in 000's, except per share                                      
data)
                                                                
                             Three Months Ended           SixMonths Ended
                             June 30, March 31, June 30,  June 30,  June 30,
                             2013     2013      2012      2013      2012
                                                                
Interest income                                                  
Loans, including fees         $ 6,850 $6,794  $ 7,830  $ 13,644 $ 15,912
Investment securities and     175     170      204      345      443
other
Total interest income         7,025   6,964    8,034    13,989   16,355
Interest expense                                                 
Deposits                      760     759      1,052    1,519    2,317
Other borrowings and          401     407      425      808      953
convertible debt
Total interest expense        1,161   1,166    1,477    2,327    3,270
Net interest income           5,864   5,798    6,557    11,662   13,085
Provision for credit losses   (1,084) (196)    1,900    (1,280)  3,883
Net interest income after     6,948   5,994    4,657    12,942   9,202
provision for credit losses
Non-interest income                                              
Other loan fees               385     230      295      615      545
Gains from loan sales, net    111     161      58       272      1,155
Document processing fees      145     110      82       255      174
Service Charges               85      85       109      170      229
Loan servicing, net           24      75       (76)     99       75
Other                         52      106      45       158      223
Total non-interest income     802     767      513      1,569    2,401
Non-interest expenses                                            
Salaries and employee         3,371   3,514    2,742    6,885    5,627
benefits
Occupancy expense, net        458     455      419      913      914
Loan servicing and collection 347     253      422      600      891
Professional services         290     315      296      605      621
FDIC assessment               261     265      309      526      735
Advertising and marketing     187     93       102      280      159
Depreciation                 74      74       76       148      153
Net loss on sales/write-downs
of foreclosed real estate and 22      84       371      106      780
repossessed assets
Data processing               125     150      145      275      280
Other                        489     469      879      958      1,215
Total non-interest expenses   5,624   5,672    5,761    11,296   11,375
Income (loss) before          2,126   1,089    (591)    3,215    228
provision for income taxes
Income tax expense            --      --       --       --       --
Net Income (loss)             $ 2,126 $1,089  $(591)  $3,215  $228
Dividends and accretion on    262     262      268      524      530
preferred stock
Net income (loss) available   $ 1,864 $827    $(859)  $2,691  $(302)
to common stockholders
Earnings (loss) per common                                       
share:
Basic                         $0.30  $0.14   $(0.14) $0.44   $(0.05)
Diluted                       $0.23  $0.11   $(0.14) $0.35   $(0.05)

                                                              
                                                              
COMMUNITY WEST BANCSHARES                                      
CONDENSED CONSOLIDATED BALANCE                                 
SHEETS
(unaudited)                                                    
(in 000's, except per share                                    
data)
                                                              
                                June 30,   March 31,  June 30,   December 31,
                                2013       2013       2012       2012
                                                              
Cash and cash equivalents        $34,072  $35,689  $28,438  $27,891
Time and interest-earning
deposits in other financial      3,311     3,537     4,187     3,653
institutions
Investment securities            25,671    23,902    29,474    24,040
Loans:                                                         
Commercial                       42,658    40,311    37,464    37,266
Commercial real estate           138,393   132,009   144,799   126,676
SBA                              78,648    80,123    91,036    85,957
Manufactured housing             172,365   174,923   183,343   177,391
Single family real estate        9,873     9,096     11,469    9,945
HELOC                            17,036    17,318    20,490    17,852
Consumer                         195       194       310       232
Mortgage loans held for sale     1,526     2,312     3,593     8,223
Deferred fees                    112       70        160       123
Total loans                      460,806   456,356   492,664   463,665
                                                              
Loans, net                                                     
Held for sale                    64,133    61,753    62,070    68,694
Held for investment              396,673   394,603   430,594   394,971
Less: Allowance                  (12,456)  (13,950)  (15,446)  (14,464)
Net held for investment          384,217   380,653   415,148   380,507
NET LOANS                        448,350   442,406   477,218   449,201
                                                              
Other assets                     24,694    27,589    33,696    27,316
                                                              
TOTAL ASSETS                     $536,098 $533,123 $573,013 $532,101
                                                              
Deposits                                                       
Non-interest-bearing demand      $53,124  $48,920  $51,296  $53,605
Interest-bearing demand          257,785   264,044   280,639   269,466
Savings                          16,273    16,621    16,128    16,351
CDs over 100K                    94,397    90,708    113,407   80,710
CDs under 100K                   13,292    13,726    16,841    14,088
Total deposits                   434,871   434,019   478,311   434,220
Other borrowings                 35,667    41,735    41,852    41,852
Other liabilities                3,474     3,299     2,472     2,980
TOTAL LIABILITIES                474,012   479,053   522,635   479,052
                                                              
Stockholders' equity             62,086    54,070    50,378    53,049
                                                              
TOTAL LIABILITIES AND            $536,098 $533,123  $573,013  $532,101
STOCKHOLDERS' EQUITY
                                                              
Shares outstanding               7,800     6,033     5,990     5,995
                                                              
Book value per common share      $5.98    $6.41    $5.87    $6.29

                                                               
                                                               
ADDITIONAL FINANCIAL                                            
INFORMATION
(Dollars in thousands
except per share                                                
amounts)(Unaudited)
                                                               
                       Quarter    Quarter    Quarter    Six Months Ended
                        Ended      Ended      Ended
PERFORMANCE MEASURES    Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
AND RATIOS              2013       2013       2012       2013       2012
Return on average       21.15%     11.46%     -6.71%     16.57%     1.28%
common equity
Return on average       1.60%      0.83%      -0.41%     1.22%      0.08%
assets
Efficiency ratio        84.37%     86.40%     81.49%     85.38%     73.45%
Net interest margin     4.81%      4.78%      4.78%      4.79%      4.63%
                                                               
                       Quarter    Quarter    Quarter    Six Months Ended
                        Ended      Ended      Ended
AVERAGE BALANCES        Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
                        2013       2013       2012       2013       2012
Average assets          $530,607 $524,572 $583,443 $527,694 $607,487
Average earning assets  489,278   492,304   551,239   490,868   568,831
Average total loans     456,783   460,741   509,505   458,751   525,144
Average deposits        430,770   426,367   489,035   428,600   500,326
Average equity
(including preferred    55,632    53,363    50,360    54,170    50,785
stock)
Average common equity
(excluding preferred    40,201    37,998    35,220    38,805    35,667
stock)
                                                               
EQUITY ANALYSIS         Jun. 30,   Mar. 31,   Jun. 30,             
                        2013       2013       2012
Total equity            $62,086  $54,070  $50,378            
Less: senior preferred  15,475    15,408    15,214              
stock
Total common equity     $46,611  $38,662  $35,164            
                                                               
Common stock            7,800     6,033     5,990               
outstanding
Book value per common   $5.98    $6.41    $5.87                
share
                                                               
ASSET QUALITY           Jun. 30,   Mar. 31,   Jun. 30,             
                        2013       2013       2012
Nonaccrual loans        $20,660  $19,707  $32,790            
Nonaccrual loans/total  4.48%      4.32%      6.66%                
loans
REO and repossessed     $4,100   $4,389   $2,292             
assets
Less:
SBA/USDA-guaranteed     2,640      2,481      $230               
amounts
                                                               
Net REO and repossessed $1,460   $1,908   $2,062             
assets
Nonaccrual loans plus   22,120     21,615     $34,852            
net REO
Nonaccrual loans plus   4.13%      4.05%      6.08%                
net REO/total assets
Net loan charge-offs in $410     $318     $1,159             
the quarter
Net charge-offs in the  0.09%      0.07%      0.24%                
quarter/total loans
                                                               
Allowance for loan      $12,456  $13,950  $15,446            
losses
Plus: Reserve for
undisbursed loan        76        90        181                 
commitments
Total allowance for     $12,532  $14,040  $15,627            
credit losses
Total allowance for
loan losses/total loans 3.14%      3.54%      3.59%                
held for investment
Total allowance for
loan losses/nonaccrual  60.29%     70.79%     47.11%               
loans
                                                               
Community West                                                  
Bancshares
Tier 1 leverage ratio   11.71%     10.29%     8.62%                
Tier 1 risk-based       15.00%     13.12%     11.24%               
capital ratio
Total risk-based        16.68%     16.27%     14.27%               
capital ratio
                                                               
Community West Bank                                             
Tier 1 leverage ratio   11.65%     11.34%     9.38%                
Tier 1 risk-based       14.83%     14.35%     12.13%               
capital ratio
Total risk-based        16.10%     15.63%     13.41%               
capital ratio
                                                               
INTEREST SPREAD         Jun. 30,   Mar. 31,   Jun. 30,             
ANALYSIS                2013       2013       2012
Yield on
interest-bearing        0.80%      0.82%      0.97%                
deposits
Yield on total loans    6.01%      5.98%      6.18%                
Yield on investments    2.40%      2.44%      2.25%                
Yield on earning assets 5.76%      5.74%      5.86%                
                                                               
Cost of deposits        0.80%      0.72%      0.87%                
Cost of FHLB advances   2.93%      2.92%      2.93%                
Cost of
interest-bearing        1.11%      1.14%      1.24%                
liabilities

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