Community West Bancshares Reports Record Three-Months and Six-Months Earnings.

GOLETA, Calif.--(BUSINESS WIRE)--July 16, 1998--Lew Stone, president and chief executive officer of Community West Bancshares (Nasdaq:CWBC), announced that the company produced record earnings for the three and six months ended June 30, 1998.

Net income for the three months ended June 30, 1998, was $699,000, or 73 percent above the $404,000 for the same period of 1997. Net income for the first six months of 1998 was $1,068,000, vs. $713,000 for the six months ended June 30, 1997, an increase of 49.8 percent.

Earnings per share on a diluted basis for the three and six months ended June 30, 1998, was 19 cents and 30 cents, vs. 11 cents and 20 cents for the respective periods in 1997. Book value per share at June 30, 1998, was $4.31, vs. $3.65 at June 30, 1997.

Stone said: "These record numbers are particularly gratifying given the number of significant projects we have announced so far this year. We are working on our first loan securitization, expanded our SBA lending into Georgia and Florida, signed a definitive agreement to acquire Palomar Savings, announced plans for a branch office in Ventura, Calif., and began a pilot program with Thomas Cook Currency Services Inc. to provide our Electronic Paycheck card as a delivery vehicle for the payment of wages to employees in the cruise-line industry. Obviously, the second half of 1998 will be a very busy time for the company."

Total assets of the company increased from $86 million at June 30, 1997, to $151 million at the end of the second quarter of 1998. Loans and deposits increased 105 percent and 80 percent, respectively, over the prior year. The ratio of equity to total assets was 11.36 percent at June 30, 1998, as compared with 12.88 percent at June 30, 1997.

The company, through its profit centers, originates loans that it retains in its portfolio, sells servicing released, or sells servicing retained. During the first six months of 1998, the company has originated $290 million in loans, vs. $125 million for the same period of 1997.

At June 30, 1998, approximately $50 million of those loans had been set aside for inclusion in a loan securitization. A positive byproduct of holding the loans for the securitization is that the weighted average coupon on those loans is 13.25 percent, adding significantly to interest income.

As a result of the expenses associated with the previously discussed projects begun in the first half of the year, the company's ratio of noninterest income to noninterest expense dropped slightly from 79.6 percent for the first six months of 1997 to 79.1 percent for the same period of 1998.

Stone said: "We look forward to the remainder of this year. We are excited about the inclusion of Palomar Savings into the Community West family. Also, the current benign interest-rate environment bodes well for continued loan growth."

Community West Bancshares is a financial-services company with headquarters in Goleta. Goleta National Bank, subsidiary of the company, has loan-production offices located in California, Nevada, Georgia and Florida.

The company has previously announced the signing of a definitive agreement to acquire Palomar Savings of Escondido, Calif. In addition, the bank is majority owner of Electronic Paycheck LLC.

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 successful completion of the pilot program and regulatory approval of its applications. 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:

                       Community West Bancshares
                         Financial Highlights

                                June 30, 1998          June 30, 1997

Total loans                     $ 127,225,000          $  62,186,000
Total deposits                    132,533,000             73,514,000
Total equity                       17,177,000             11,058,000
Total assets                      151,182,000             85,854,000

Quarter ended:
 Net interest income, after
   provision                        2,205,000              1,260,000
 Other income                       3,311,000              2,432,000
 Other expense                      4,346,000              2,995,000
 Income taxes                         471,000                293,000
 Net income                           699,000                404,000
 Basic EPS                           20 cents               13 cents
 Diluted EPS                         19 cents               11 cents
Shares outstanding, June 30         3,984,500              3,031,438
Weighted shares -- basic            3,465,003              3,012,660
Weighted shares -- diluted          3,677,822              3,591,664

Six months ended:
 Net interest income,
   after provision                  3,471,000              2,341,000
 Other income                       6,233,000              4,323,000
 Other expense                      7,883,000              5,434,000
 Income taxes                         753,000                517,000
 Net income                         1,068,000                713,000
 Basic EPS                           32 cents               24 cents
 Diluted EPS                         30 cents               20 cents
Shares outstanding, June 30         3,984,500              3,031,438
Weighted shares -- basic            3,327,128              2,982,376
Weighted shares -- diluted          3,539,947              3,556,494


    CONTACT: Community West Bancshares, Goleta
              Randy Shaffer, 805/692-1862
                             805/692-8902 (fax)
                             http://www.communitywest.com