 GOLETA, Calif., July 24, 2020 GLOBE NEWSWIRE -- Community West Bancshares Community West or the Company, NASDAQ: CWBC, parent company of Community West Bank Bank, today reported net income of 1.2 million, or 0.14 per diluted share, for the second quarter of 2020 2Q20, compared to 1.6 million, or 0.19 per diluted share, for the first quarter of 2020 1Q20, and 1.6 million, or 0.18 per diluted share, for the second quarter of 2019 2Q19. For the first six months of 2020, Community West reported net income of 2.8 million, or 0.32 per diluted share, compared to 3.1 million, or 0.36 per diluted share, for the first six months of 2019. COVID-19 Pandemic UpdateOur second quarter earnings were affected by a number of items, including the impact of the Coronavirus pandemic on the economy, and the subsequent increase in our loan loss reserve, stated Martin E. Plourd, President and Chief Executive Officer. Highlighting the quarter was net interest income growth and increased core deposits. Additionally, we generated over 500 Small Business Administration SBA Paycheck Protection Program PPP loans to our customers for 75.1 million during the quarter which had a meaningful impact on loan and related deposit growth. Gross PPP loan fees are estimated to be 2.8 million based on current loan forgiveness expectations. The PPP income will be recorded as loans are repaid. The effect of the pandemic on our employees, customers and communities remains our primary concern and we believe the full economic impact has yet to be realized Plourd continued. Since the start of the pandemic, we have maintained all branch activity, taking conservative measures to keep our employees, customers, and communities safe. Currently, approximately 40 of our employees are working remotely while keeping our high level of customer service. We are intently focused on assessing the risks in our loan portfolio and working with our customers to minimize losses. We have implemented a loan modification program, in line with regulatory guidance, allowing impacted customers to defer loan payments. As of June 30, 2020, requests to defer loan payments totaled approximately 156 million or 18 of the Banks total loan portfolio. The industries most heavily impacted include retail, healthcare, hospitality, schools and energy. The Companys management team has evaluated the loans related to the affected industries and at June 30, 2020, the Banks loans to these industries were 187.3 million which is 21.9 of our 856.0 million loan portfolio.Importantly, of the selected industry loans, 1.7 million or 0.9 are on non-accrual. Also, of the selected industries loans the classified loans are 12.1 Million or 6.5. Lastly, the Bank has accommodated 81.8 million of these loans with payment deferrals or 43.7 of the selected industries. Additional detail by industry is included in the table below. Sectors Under Focus Excluding PPP Loans As of 63020 in thousandsVenturaLos Angeles CountiesSanta Barbara CountySan Luis Obispo CountyOtherLoans Outstanding includes 11 million of guarantees Non- accrual Non- accrual Classified Classified Deferrals Deferral Healthcare 9,135 9,695 27,205 2,431 48,466 1,657 3.42 2,025 4.18 14,232 29.36 SeniorAssted Living Facilities1,69561220,779-23,086-0.00-0.00-0.00 Medical Offices5,3326,6095,8061,24018,987-0.002901.5310,02652.80 General Healthcare2,1082,4746201,1916,3931,65725.921,73527.144,20665.79 Hospitality 9,011 16,446 27,941 2,209 55,607 3 0.01 1,673 3.01 40,197 72.29 Lodging3,09312,49723,9651,59341,148-0.00-0.0033,22980.75 Restaurants5,9186153,97661611,12530.031,67315.046,96862.63 RV-Mobile Home Parks-3,334--3,334-0.00-0.00-0.00 Retail Commercial Real Estate 23,590 16,991 9,980 8,275 58,836 25 0.04 8,415 14.30 24,405 41.48 Retail Services 5,242 5,948 6,072 5,724 22,986 - 0.00 19 0.08 2,844 12.37 Schools - 50 1,088 107 1,245 - 0.00 - 0.00 - 0.00 Energy 149 - - - 149 - 0.00 - 0.00 149 100.00 Second Quarter 2020 Financial Highlights: Net income was 1.2 million, or 0.14 per diluted share, in 2Q20, compared to 1.6 million, or 0.19 per diluted share in 1Q20, and 1.6 million, or 0.18 per diluted share in 2Q19. Net interest income was 8.8 million for the quarter, compared to 8.5 million for 1Q20, and 8.5 million for 2Q19. Provision for loan losses was 762,000 for the quarter, compared to 392,000 for 1Q20, and 177,000 for 2Q19. The resulting allowance was 1.34 of total loans held for investment at June 30, 2020 excluding the 75.1 million of PPP loans which are 100 guaranteed by the SBA. Net interest margin was 3.72 for 2Q20, compared to 3.97 for 1Q20, and 4.07 for 2Q19. Total demand deposits increased 96.0 million to 504.0 million at June 30, 2020, compared to 408.0 million at March 31, 2020, and increased 47.7 million compared to 456.3 million at June 30, 2019. Total demand deposits represented 67.2 of total deposits at June 30, 2020. Non-interest-bearing demand deposits increased 71.5 million to 192.8 million at June 30, 2020, compared to 121.3 million at March 31, 2020 and increased 80.3 million compared to 112.5 million at June 30, 2019. Total loans increased 74.0 million during the quarter to 856.0 million at June 30, 2020, compared to 782.0 million at March 31, 2020, and increased 67.1 million from 788.9 million at June 30, 2019. Book value per common share increased to 9.93 at June 30, 2020, compared to 9.82 at March 31, 2020, and 9.19 at June 30, 2019. Total risked-based capital improved to 11.63 for the Bank at June 30, 2020, compared to 11.60 at March 31, 2020 and 10.67 at June 30, 2019. Net non-accrual loans of 2.6 million at June 30, 2020 and at March 31, 2020, compared to 3.0 million at June 30, 2019. Other assets acquired through foreclosure, net was 2.7 million at June 30, 2020 and at March 31, 2020, compared to 1.1 million at June 30, 2019.Income Statement Net interest income was 8.8 million in 2Q20 compared to 8.5 million in 1Q20 and 8.5 million in 2Q19, primarily due to decreased deposit costs. In the first six months of 2020, net interest income increased 3.1 to 17.2 million, compared to 16.7 million in the first six months of 2019. Non-interest income was 640,000 in 2Q20, compared to 950,000 in 1Q20, and 692,000 in 2Q19. Other loan fees were 283,000 for 2Q20 a 17 decline compared to 341,000 for 1Q20, and a 5.2 increase compared to 2Q19. Gain on sale of loans was 97,000 in 2Q20 compared to 190,000 in the preceding quarter. There were no gains on sales of loans in 2Q19. Non-interest income increased 22.7 to 1.6 million in the first six months of 2020 compared to 1.3 million in the first six months of 2019.Second quarter net interest margin was 3.72, compared to 3.97 in 1Q20, and 4.07 in 2Q19. The 150-basis point reduction in interest rates in March 2020 and the resulting effect on yields on earning assets contributed to the net interest margin decline during the quarter, said Susan C. Thompson, Executive Vice President and Chief Financial Officer. In the first six months of 2020, the net interest margin was 3.84, compared to 4.03 in the prior year period.While our asset quality at quarter end remained solid, we are being proactive in our approach to the COVID-19 pandemic and its impact on the local economy. Consequently, we booked a 762,000 loan loss provision during the second quarter, which is higher than the provisions booked over the past few years, said Thompson. The provision for loan losses was 392,000 for 1Q20, and 177,000 for 2Q19. The increase in the current quarter was primarily the result of managements qualitative adjustment to reflect the estimated losses due to the current economic uncertainties and some growth in the loan portfolio.Non-interest expense totaled 7.0 million in 2Q20, compared to 6.7 million in the preceding quarter and 6.8 million in 2Q19. 2Q20 included some additional pandemic related expenses. In the first six months of 2020, non-interest expense was 13.7 million, compared to 13.5 million in the first six months of 2019. Balance SheetTotal assets increased 135.6 million, or 14.7, to 1.06 billion at June 30, 2020, compared to 925.2 million at March 31, 2020 and increased 155.3 million, or 17.1, compared to 905.6 million at June 30, 2019. Total loans increased 74.0 million, or 9.5, to 856.0 million at June 30, 2020, compared to 782.0 million at March 31, 2020, and increased 67.1 million, or 8.5 compared to 788.9 million at June 30, 2019. Commercial real estate loans outstanding which include SBA 504, construction and land were up modestly from year ago levels to 392.8 million at June 30, 2020 and comprise 45.9 of the total loan portfolio. Manufactured housing loans were up 5.6 from year ago levels to 267.3 million and represent 31.2 of total loans. SBA PPP loans originated during the second quarter were 75.1 million at June 30, 2020 and represent 8.8 of total loans. Commercial loans which include agriculture loans were down 12.4 from year ago levels to 95.1 million and represent 11.1 of the total loan portfolio. The majority of this decrease was in the commercial agriculture portfolio as the Company has switched its production focus from on-balance sheet Federal Service Agency loans with guarantees to off-balance sheet Farmer Mac loans for which we receive servicing income for the life of the loan.Total deposits were 750.2 million at June 30, 2020, compared to 711. 