Community West Bancshares Reports Record 1998 Earnings.

GOLETA, Calif.--(BUSINESS WIRE)--Feb. 16, 1999--Lew Stone, President & CEO of Community West Bancshares (Nasdaq:CWBC), announced record 1998 earnings for the Company and its subsidiaries.

Net income for the year ended Dec. 31, 1998, was $2,881,000 or 34.0% above the $2,150,000 reported for 1997, after restating all years to give effect to the acquisition of Palomar Savings, which was accounted for as a pooling of interests. Basic and diluted earnings per share for 1998 were $.57 and $.55 versus $.49 and $.43 for 1997.

The 1998 EPS numbers include the additional shares issued upon the exercise of warrants for approximately 875,000 shares of stock. Those new shares, which were mostly issued during the second quarter of 1998, also added approximately $3,800,000 of new equity to the Company.

Stone said, "We are particularly pleased with the results because they include approximately $615,000, $.07 per diluted share, of one time expenses related to the acquisition of Palomar Savings and the opening of two new full service branches, one in Ventura, Calif., and one in Escondido, Calif. We also completed an $81 million loan securitization in December during what was the worst market in the history of the asset-backed security industry."

Stone continued, "During 1998 we also continued to prepare for the future. In addition to the two new full service branches, we expanded our Preferred SBA lending operations into Georgia, Florida, and Alabama, as well as Northern California in addition to our offices already in Nevada and Southern California. As previously discussed, we completed the acquisition of Palomar Savings of Escondido, Calif. in December.

"We began a pilot program with Thomas Cook Currency Services Inc. for the payment of wages to employees in the cruise line industry. In late December we announced a stock buyback plan under which we may repurchase up to $2,000,000 worth of Company stock. We also announced the declaration of the first of regular quarterly dividends to be paid by the Company. To say the least, 1998 was a busy year. The efforts in 1998 should help us continue our revenue growth during 1999."

Total assets of the Company increased 45.5% from $173,920,000 at Dec. 31, 1997, to $253,034,000 at Dec. 31, 1998. During the same period, loans and deposits increased 29.2% and 46.4%, respectively. The ratio of equity to assets was 9.70% at Dec. 31, 1998, as compared to 10.15% at Dec. 31, 1997.

Community West Bancshares is unique in that it has developed profit centers which generate significant noninterest income. The profit centers include SBA lending, first and second mortgage lending, accounts receivable financing, Electronic Paycheck, and other electronic banking products. During 1998, the Company originated over $585,000,000 in loans, most of which were sold in the secondary market or formed into a security.

Stone said, "We have diversified our income sources in order to help insulate the Company from changes in interest rates."

Community West Bancshares is a financial services company with headquarters in Goleta. Goleta National Bank, subsidiary of the Company, has two full service branches, one in Goleta and one in Ventura, and loan production offices located in Alabama, California, Florida, Georgia, and Nevada.

In addition, Goleta National Bank is majority owner of Electronic Paycheck, LLC. Palomar Savings & Loan Association, subsidiary of the Company, has two full service branches and a loan production office, all located in Escondido, Calif.

This release contains forward-looking statements which 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 purchase stock at prices it deems appropriate, continue to pay dividends, and economic events which may affect income. The Company's actual results may differ materially from those in the forward-looking statements as a result of various important factors, including general economic conditions and "Competition" as described in the Company's Form 10-K for the year ended Dec. 31, 1997. -0-

The following represents comparative information:

                                          Dec. 31,
                                   1998              1997

Total loans                    $165,893,000      $128,385,000
Total deposits                  223,545,000       152,691,000
Total equity                     24,553,000        17,655,000
Total assets                    253,034,000       173,920,000

Quarter ended:
 Net interest income,
   after provision                3,228,000         1,816,000
 Other income                     3,721,000         2,726,000
 Other expense                    5,845,000         3,584,000
 Income taxes                       545,000           366,000
 Net income                         559,000           592,000
 Basic EPS                             $.10              $.13
 Diluted EPS                           $.10              $.12
Shares outstanding 12/31          5,479,710         4,448,986
Weighted shares-basic             5,472,156         4,427,064
Weighted shares-diluted           5,613,492         5,124,388

Year ended:
 Net interest income,
   after provision               10,861,000         7,001,000
 Other income                    14,036,000         9,899,000
 Other expense                   20,074,000        13,434,000
 Income taxes                     1,942,000         1,316,000
 Net income                       2,881,000         2,150,000
 Basic EPS                             $.57              $.49
 Diluted EPS                           $.55              $.43
Shares outstanding 12/31          5,479,710         4,448,986
Weighted shares-basic             5,069,596         4,383,878
Weighted shares-diluted           5,243,738         4,956,148