Community West Bancshares 8-KResults of Operations and Financial Condition

“The Company’s 44-year track record of sustained performance and its strong capital position created opportunity for franchise growth in 2023, while strengthened commercial management and exceptional client service enhanced lending performance in Q4. Add the announced acquisition of Community West Bancshares, and it is clear 2023 was an eventful year – as well as a year of industry challenges, continued deposit compression, inflationary impacts and some interest rate stabilization,” said James J. Kim, President and CEO.

“The Company is pleased to report that the merger with Community West Bancshares and Community West Bank has received all customary regulatory approvals and final preparations for an April 1, 2024 closing are underway. We look forward to welcoming the Community West team of professional bankers and blending our complementary service cultures to support clients and communities throughout this expanded Central Coast territory. All of which we expect to bring further shareholder value in a stabilizing 2024 economy.”

“Lastly, I want to thank our team whose unwavering attention to client success has been the backbone of our Company’s strength for over four decades. I am deeply grateful for their consistent performance as they uphold the highest standards of true community bankers.”

Return on average equity (ROAE) for the year ended December 31, 2023 was 13.81%, compared to 14.25% for the same period of 2022. The decrease in ROAE reflects a decrease in net income and a modest increase in average total shareholders’ equity compared to the prior year. The modest increase in average shareholders’ equity during 2023 was primarily driven by the retention of earnings, partially offset by dividends paid and an increase in the average accumulated other comprehensive losses. Return on average assets (ROAA) was 1.04% for the year ended December 31, 2023 compared to 1.09% for the same period in 2022.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.18% for the quarter ended December 31, 2023, compared to 2.76% for the quarter ended December 31, 2022 and 3.26% for the quarter ended September 30, 2023. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.15% for the year ended December 31, 2023, compared to 2.45% for the year ended December 31, 2022.

Total average loans increased by $29,570,000 to $1,268,322,000 for the quarter ended December 31, 2023, from $1,238,752,000 for the quarter ended December 31, 2022 and increased by $2,026,000 from $1,266,296,000 for the quarter ended September 30, 2023. The effective yield on average loans was 5.62% for the quarter ended December 31, 2023, compared to 5.17% and 5.54% for the quarters ended December 31, 2022 and September 30, 2023, respectively. Total average loans increased by $129,307,000 to $1,263,226,000 for the year ended December 31, 2023, from $1,133,919,000 for the year ended December 31, 2022. The effective yield on average loans was 5.53% for the year ended December 31, 2023, compared to 4.93% for the year ended December 31, 2022.

The Company’s net interest margin (fully tax equivalent basis) was 3.52% for the quarter ended December 31, 2023, compared to 3.80% for the quarter ended December 31, 2022 and 3.47% for the quarter ended September 30, 2023. Net interest income, before provision for credit losses, decreased $1,878,000, or 8.54%, to $20,115,000 for the fourth quarter of 2023, compared to $21,993,000 for the same period in 2022. The net interest margin period-to-period comparisons were impacted by the Federal Open Market Committee's rate hikes since the first quarter of 2022, in which the upper bound of the Fed Funds target rate have increased by 525 basis points, from 0.25% to 5.50%. Over the last year, the Company's yield on interest earning assets has increased from 4.03% for the quarter ended December 31, 2022 to 4.51% for the quarter ended December 31, 2023. Additionally, the Company has been impacted by higher costs on interest-bearing liabilities, in which the cost of total deposits increased to 0.87% from 0.09% when comparing the quarters ended December 31, 2023 and 2022. The increase in the cost of deposits is primarily attributed to volume and rate increases in the money market and time deposit portfolios.

The Company’s net interest margin (fully tax equivalent basis) was 3.58% for the year ended December 31, 2023, compared to 3.52% for the year ended December 31, 2022. Net interest income, before provision for credit losses, increased $2,863,000, or 3.60%, to $82,429,000 for the year ended December 31, 2023, compared to $79,566,000 for the same period in 2022. Net interest income during the year ended December 31, 2023 and 2022 benefited by approximately $165,000 and $649,000, respectively, from prepayment penalties associated with the payoff of loans. The net interest margin period-to-period comparisons were impacted by the increase in the yield on total interest-earning assets and interest-bearing liabilities. Over the same periods, total interest-earning assets experienced a yield increase to 4.43% from 3.66%, and the cost of total deposits increased to 0.72% from 0.06%. The increase in the cost of deposits is primarily attributed to volume and rate increases in the money market and time deposit portfolios.

The increase in other income for the year ended December 31, 2023 was primarily due to the change in equity investment gain (loss), which was a $91,000 gain for the year ended December 31, 2023 compared to a ($858,000) loss for the year ended December 31, 2022. The decrease in service charges was the result of a reduction in the fees charged for non-sufficient funds.

The increase in salaries and benefits and director expenses was primarily due to credits of $550,000 in post-retirement costs recorded in the prior year, a result of changes in the discount rate, compared to expense of $910,000 recorded in the current year. Additionally, increases in salaries and benefits were a reflection of salary adjustments due to market conditions. The increase in professional services was due to non-recurring legal and professional fees, including $1,191,000 related to the announced merger.

Total assets for the period ended December 31, 2023 increased $10,907,000 or 0.45% compared to the period ended December 31, 2022, and decreased $56,381,000 or 2.33% compared to the third quarter of 2023. Asset growth during the year ended December 31, 2023 was driven by increases in loans, cash, and bank premises, partially offset by decreases in the investment security portfolio. Total average assets for the quarter ended December 31, 2023 were $2,416,929,000 compared to $2,441,652,000 for the quarter ended December 31, 2022 and $2,502,985,000 for the quarter ended September 30, 2023, a decrease of $24,723,000 or 1.01% and a decrease of $86,056,000 or 3.52%, respectively.

For the quarter ended December 31, 2023, the Company’s average investment securities decreased by $85,032,000, or 7.90%, compared to the quarter ended December 31, 2022, and decreased by $20,205,000, or 2.00%, compared to the quarter ended September 30, 2023. For the year ended December 31, 2023, the Company’s average investment securities, decreased by $115,757,000, or 10.23%, compared to the year ended December 31, 2022. These decreases for both periods were the result of sales, maturities, and the change in the unrealized loss position on available for sale securities.

Total average deposits decreased $54,033,000, or 2.49%, to $2,115,042,000 for the quarter ended December 31, 2023, compared to $2,169,075,000 for the quarter ended December 31, 2022, and decreased $96,042,000, or 4.34%, compared to $2,211,084,000 for the quarter ended September 30, 2023. The Company’s ratio of average non-interest bearing deposits to total deposits was 46.61% for the quarter ended December 31, 2023, compared to 50.42% and 44.54% for the quarters ended December 31, 2022 and September 30, 2023, respectively.

Total average deposits decreased $851,000, or 0.04%, to $2,155,241,000 for the year ended December 31, 2023, compared to $2,156,092,000 for the year ended December 31, 2022. The Company’s ratio of average non-interest bearing deposits to total deposits decreased to 45.84% for the year ended December 31, 2023 compared to 46.68% for the year ended December 31, 2022.

The Company has significant liquidity, both on and off-balance sheet, to meet customer demand. During the year-to-date period, the Company’s cash and cash equivalents increased $22,558,000 to $53,728,000 compared to $31,170,000 at December 31, 2022. The Company had $80,000,000 in short-term borrowings at December 31, 2023 compared to $46,000,000 at December 31, 2022.

During the fourth quarter of 2023, the Company recorded net loan recoveries of $170,000 compared to $18,000 in net charge-offs for the same period in 2022. The net charge-off ratio, which reflects annualized net charge-offs to average loans, was (0.05)% for the quarter ended December 31, 2023 compared to 0.01% for the quarter ended December 31, 2022. During the quarter ended December 31, 2023, the Company recorded a credit of $1,051,000 to the provision for credit losses on loans, compared to a $500,000 provision for the quarter ended December 31, 2022. The credit to the provision for loan losses, as of quarter ended December 31, 2023, was due to improvements in the risk profile of a substandard loan that was partially paid down during the quarter. Offsetting the credit to the provision of credit losses on loans, for the quarter ended December 31, 2023, was a provision for credit losses on held-to-maturity securities and unfunded loan commitments totaling $883,000 as of the quarter

ended December 31, 2023. The provision for credit losses on held-to-maturity securities was due to changes in the economic scenarios as they relate to specific corporate bonds.

On January 17, 2024, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on February 16, 2024 to shareholders of record as of February 2, 2024. The Company continues to be well capitalized and expects to maintain adequate capital levels.

On October 10, 2023, the Company announced that it had entered into an Agreement and Plan of Reorganization and Merger, dated as of October 10, 2023 (the “Merger Agreement”), with Community West Bancshares, a California corporation (“Community West”). Pursuant to the terms of the Merger Agreement, Community West will be merged with and into the Company, with the Company as the surviving institution, promptly followed by the merger of Community West’s wholly-owned bank subsidiary, Community West Bank, N.A., a national banking association, with and into Central Valley Community Bank, a California state-chartered bank and wholly-owned bank subsidiary of Central Valley (“CVCB”), with CVCB as the surviving banking institution (the “Bank Merger”).

The Company has received all regulatory approvals without adverse regulatory conditions required to complete the merger with Community West and the Bank Merger. The proposed transaction is subject to the approval of the shareholders of the Company and Community West at their respective special shareholder meetings to be held on

February 8, 2024. The transaction is expected to be completed on April 1, 2024 pending shareholder approval and the satisfaction of other customary closing conditions.

Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank (CVCB), headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. CVCB operates full-service Banking Centers throughout California’s San Joaquin Valley and Greater Sacramento region, in addition to CVCB maintaining Commercial, Real Estate, and Agribusiness Lending, as well as Private Business Banking and Cash Management Departments.

Members of Central Valley Community Bancorp’s and CVCB’s Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), F. T. “Tommy” Elliott, IV, Robert J. Flautt, Gary D. Gall, James J. Kim, Andriana D. Majarian, Steven D. McDonald, Louis C. McMurray, Karen A. Musson, Dorothea D. Silva and William S. Smittcamp.

More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Also, visit Central Valley Community Bank on Twitter, Facebook and LinkedIn.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger transaction, the Company has filed a registration statement on Form S-4 (the "Registration Statement") with the SEC. The Registration Statement was declared by the SEC to be effective on December 27, 2023, and a joint proxy statement/prospectus was distributed to the shareholders of Community West and the Company in connection with their vote on the proposed merger on or about January 5, 2024.

SHAREHOLDERS OF THE COMPANY AND COMMUNITY WEST ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,

AS WELL AS SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.

Investors and security holders are urged to carefully review and consider each of the Company and Community West public filings with the SEC, including but not limited to the joint proxy/prospectus and their respective Annual Reports on Form 10-K, its Proxy Statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. Central Valley’s documents filed with the SEC may be obtained free of charge at the Company’s website at www.cvcb.com or at the SEC’s website at www.sec.gov. The Company’s documents may also be obtained free of charge from the Company by requesting them in writing to Central Valley Community Bancorp, 7100 N. Financial Drive, Suite 101, Fresno, California 93720; Attention: Corporate Secretary, or by telephone at (559) 298-1775. Community West documents filed with the SEC may be obtained free of charge at Community West’s website at www.communitywestbank.com or at the SEC’s website at www.sec.gov. Community West documents may also be obtained free of charge from Community West by requesting them in writing to Community West Bancshares, 445 Pine Avenue, Goleta, California 93117, or by telephone at (805) 692-5821; Attention Corporate Secretary.

This communication shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

The directors, executive officers and certain other members of management and employees at Community West and the Company may be deemed participants in the solicitation of proxies in favor of the merger from their respective shareholders. Information about the directors and executive officers of Community West is included in the proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the SEC on April 17, 2023. Information about the directors and executive officers of the Company is included in the proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the SEC on March 31, 2023.