EX-99.1 2 ex99_1.htm EXHIBIT 99.1

Exhibit 99.1


November 13, 2018

To the Shareholders of Community West Bancshares:

We are happy to report that Community West Bancshares recently released its financial results for the third quarter of 2018. Among the highlights was net income of $2.4 million for the quarter ending on September 30, an increase of 52% from $1.6 million for the third quarter of last year, and net income of $6.1 million for the first nine months of 2018, compared to $4.5 million in the first nine months of 2017. Attached is an investor fact sheet for your review, providing information about growth in deposits, stockholders’ equity and other benchmarks.

The Board of Directors declared a quarterly cash dividend of $0.05 per common share, payable November 30, 2018 to common shareholders of record on November 15, 2018. The current annualized yield, based on the closing price of Community West Bancshares (CWBC) shares of $12.00 on September 30, 2018, was 1.7%.

A new Community West Bank branch office opened in downtown Paso Robles on October 15, replacing a loan production office opened last year in this growing community. It is our second branch office in San Luis Obispo County, and eighth full-service banking office overall. From Westlake Village in the south to Paso Robles in the north, Community West Bank is the largest publicly traded and only community bank headquartered and serving California’s vibrant Central Coast area of Ventura, Santa Barbara and San Luis Obispo counties.

We remain focused on growing the Community West Bank franchise while delivering improved operating results. And we are proud that Community West was awarded a “Premier” rating in April 2018, by The Findley Reports. For 50 years, Findley has recognized the financial performance of banking institutions in California and the western United States, focusing on four ratios: growth, return on beginning equity, net operating income as a percentage of average assets, and loan losses as a percentage of gross loans. It is an honor for Community West Bank to once again be recognized so favorably by The Findley Reports.

Community West Bank has a very bright future, and our long-term vision is to be the leading community bank serving families, businesses and non-profit organizations along the Central Coast of California. We appreciate the continued support from you, our shareholders, as we pursue our growth opportunities.

Sincerely,

William R. Peeples
Martin E. Plourd
Chairman of the Board
President and Chief Executive Officer


 NASDAQ: CWBC$11.04October 31, 2018  FACT SHEET          14.7%33.3%37.1%12.9%2.0%  Deposit Portfolio$720 Million at 9/30/18    Non-interest-bearing    Interest-bearing    Savings    CDs over 250K    CDs under 250K    THIRD QUARTER 2018 HIGHLIGHTS  EPS  Total  $ in millions except per share data* at end of period  ALL/loans held for  Net Interest  Nonaccrual loans, net/total  Period diluted assets* loans        investment  Margin  3Q18  $ 0.27  $ 855  0.50%  1.21%  4.02%  3Q17  $ 0.18  $ 829  0.25%  1.25%  4.27%  2017  $ 0.57  $ 833  0.61%  1.24%  4.34%  2016  $ 0.62  $ 711  0.38%  1.31%  4.60%  2015  $ 0.30  $ 621  0.92%  1.44%  4.80%  ABOUT COMMUNITY WEST BANCSHARESCommunity West Bancshares is a financial services company with headquarters in Go- leta, California. The Company is the holding company for Community West Bank, the largest publicly traded community bank serving California’s Central Coast area of Ventu- ra, Santa Barbara and San Luis Obispo counties. Community West Bank has eight full- service California branch banking offices, in Goleta, Santa Barbara, Santa Maria, Ventu- ra, Westlake Village, San Luis Obispo, Oxnard and Paso Robles. The principal business activities of the Company are Relationship business banking, Manufactured Housing lending and Government Guaranteed lending.    à Net income increased 52.4% to $2.4 million, or $0.27 per diluted share, in 3Q18, compared to $1.6 million, or $0.18 per diluted share in 3Q17.à Return on average common equity improved to 12.57%, up from 10.26% for 2Q18 and 8.88% for 3Q17.à Return on average assets increased to 1.08%, up from 0.90% for 2Q18 and 0.78% for 3Q17.à Total deposits increased to $719.9 million at 9/30/18, compared to $702.6 million at 6/30/18, and increased $22.8 million, or 3.3% compared to $697.2 million at 9/30/17.à Core deposits which include non-interest bearing checking, interest bearing checking, money market, savings and retail certificates of deposit increased to$508.0 million at 9/30/18, compared to $500.2 million at 6/30/18 and $476.2 million at 9/30/17.à Total loans were $753.7 million at 9/30/18, compared to $759.9 million at 6/30/18, and increased $31.1 million compared to $722.7 million at 9/30/17.à Net interest margin for 3Q18 was 4.02%, compared to 4.06% for 2Q18 and 4.27% for 3Q17.à Book value per common share increased to $9.13 at 9/30/18, compared to$8.90 at 6/30/18 and $8.54 at 9/30/17.à The Bank continues to be well-capitalized per banking regulations with its total capital ratio at 10.78%, its Tier 1 capital ratio at 9.63% and Tier 1 leverage ratio at 8.22% at 9/30/18.    FINANCIAL HIGHLIGHTS    46.9%  2.8%  31.8%  2.7%15.8%  Net Loan Portfolio$745 Million at 9/30/18          CommercialCommercial Real Estate SBA                      Manufactured housingOther 
 

 Income Statement  30-Sep-18  30-Sep-17  $  11,201 $2,573  10,401 $2,090  9,6951,319  8,628(197)  8,311117  8,376159  8,825641 6,4023,064695  8,194688 6,2572,625758  8,217716 6,3872,546992  Interest income Interest expense Net interest incomebefore provision for loan losses Provision for loan lossesNet interest incomeafter provision for loan losses Non-interest incomeNon-interest expenses Income before income taxesProvision for income taxes Net income  2,369  1,867  1,554  Earnings per common share:  Three Months Ended 30-Jun-18                                                                      Issued: October 31, 2018  Recent Price Shares Outstanding Estimated Float  $11.04 8.3M6.6M  52-Week Range $10.25-$12.97 Net Interest Margin* 4.02%*most recent quarter  $91.4M  Market Cap Book Value perCommon Share Price/Book Institutional Ownership Insider Ownership  $9.13 1.21x21.0%20.9%  Community West Bank 445 Pine Avenue Goleta, CA 93117 Phone (805) 692-5821www.communitywestbank.com  CORPORATE HEADQUARTERS  TOP INSTITUTIONALSHAREHOLDERS *  First Securities America Stieven CapitalSiena Capital Cutler Capital Dimensional Fund AllianceBernstein M3FContext BH CapitalMaltese Capital Mgmt. Bridgeway Capital  6.89%6.15%3.73%1.72%1.64%1.37%1.27%0.85%0.67%0.53%    Basic  $ 0.29  $ 0.23    $ 0.19        Diluted  $ 0.27  $ 0.21    $ 0.18    Vanguard  0.53%              Wedbush Asset Mgmt.  0.49%  Balance Sheet 30-Sep-18 30-Jun-18 30-Sep-17 *information from SNL as of 6/30/18                Total assets  $ 854,709    $ 865,127    $ 829,150      Total stockholders' equity  $ 75,557    $ 73,448    $ 69,766  MANAGEMENT TEAM    Total deposits  $ 719,942    $ 702,603    $ 697,154      Net loans  $ 745,222    $ 751,268    $ 714,383      Martin E. PlourdAsset Quality 30-Sep-18 30-Jun-18 30-Sep-17 President & Chief Executive Officer                Nonaccrual loans, net  $ 3,755    $ 3,704    $ 1,837  Susan C. Thompson    Nonaccrual loans, net/total loans  0.50%    0.49%    0.25%  EVP & Chief Financial Officer    Nonaccrual loans plus other assets            T. Joseph Stronks    acquired through foreclosure, net  $ 3,755    $ 3,917    $ 2,323  EVP , Chief Operating Officer    Nonaccrual loans plus other assetsacquired through foreclosure, net/total assets  0.44%    0.45%    0.28%  William F. FilippinEVP & Chief Banking Officer    Net loan (recoveries) charge-offs in the quarter  $ (94)  $ (47)    $ (159) Paul S. Ulrich        Net loan (recoveries) charge-offs                in the quarter/total loans  (0.01%)  (0.01%)    (0.02%) EVP & Chief Credit Officer        CWBC October 31, 2018  FINANCIAL HIGHLIGHTS(in thousands, except per share)    The company described in this report is a client of The IR Group, Inc., a securities industry relations firm. This report was prepared using information obtained from management and from publications available to the public. This report does not purport to be a complete statement of all material facts and is not to be construed as a recommendation or solicitation to buy or sell securities of the company described herein. Upon receiving a written request sent to its website www.theIRgroup.com. The IR Group will provide a package of detailed information on the client company. The IR Group is compensated by the client company for services rendered on a continuing basis and consequently, the amount of such compensation related to the preparation and distribution of this report is not separately determinable. The IR Group and/or its employees and/or members of their families, may have a long position in the securities of the company described herein.