Earnings climb at Community West Bancshares (NASDAQ: CWBC) in Q1 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Community West Bancshares reported strong first‑quarter 2026 results, with unaudited net income of $11.49 million and diluted EPS of $0.60, up from $8.29 million and $0.44 a year earlier. Profitability improved as net interest margin rose to 4.30%, net interest income grew to $36.0 million, and non‑interest income increased.
Loans and deposits expanded, with gross loans reaching $2.55 billion and total deposits $3.14 billion. Return on average assets was 1.24% and return on average equity 10.99%. The Board declared a quarterly cash dividend of $0.12 per share, payable May 22, 2026. Capital ratios remained strong, including a Tier 1 leverage ratio of 9.94% and total risk‑based capital ratio of 14.24%, though non‑performing assets rose to $22.997 million.
Positive
- Strong earnings growth and margin expansion: Net income increased to $11.49 million and diluted EPS to $0.60, with net interest income up 11.87% year over year and net interest margin improving to 4.30%, reflecting profitable loan growth and disciplined funding costs.
- Robust capital and continued shareholder returns: Capital ratios remained high, including a 9.94% Tier 1 leverage ratio and 14.24% total risk‑based capital ratio, while the Board declared a $0.12 per‑share quarterly cash dividend, indicating capacity to support growth and dividends.
Negative
- Sharp rise in non‑performing assets: Non‑performing assets increased to $22.997 million, or 0.62% of total assets, from $6.955 million, driven by two substandard loans reaching 90 days past due, signaling elevated credit risk despite modest net recoveries.
Insights
Q1 2026 shows stronger earnings, solid capital, but higher credit stress.
Community West Bancshares delivered higher profitability in Q1 2026, with net income rising to $11.49 million and diluted EPS to $0.60. Net interest income before provision grew 11.9% year over year to $36.00 million, and net interest margin expanded to 4.30%, helped by loan growth and slightly lower deposit costs.
Balance sheet metrics were generally constructive. Gross loans increased to $2.55 billion and total deposits to $3.14 billion. Capital remained robust, with Tier 1 leverage at 9.94% and total risk‑based capital at 14.24%. The quarterly dividend was maintained at $0.12 per share, signaling confidence in capital and earnings capacity.
Credit quality is the main area of pressure. Non‑performing assets rose to $22.997 million, or 0.62% of total assets, versus $6.955 million previously, driven by two substandard loans moving into non‑accrual. The allowance for credit losses edged up to $30.23 million, or 1.19% of total loans. Future filings will clarify performance of these problem credits and the integration of the recently completed United Security Bancshares merger into reported results from Q2 2026 onward.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $11.489M
Diluted EPS: $0.60
Net interest income: $36.003M
+5 more
8 metrics
Net income
$11.489M
Three months ended March 31, 2026
Diluted EPS
$0.60
Three months ended March 31, 2026
Net interest income
$36.003M
Q1 2026, before provision for credit losses
Net interest margin
4.30%
Quarter ended March 31, 2026, fully tax-equivalent basis
Return on average assets
1.24%
Annualized, quarter ended March 31, 2026
Return on average equity
10.99%
Annualized, quarter ended March 31, 2026
Non-performing assets
$22.997M
As of March 31, 2026; 0.62% of total assets
Quarterly dividend
$0.12/share
Cash dividend payable May 22, 2026
Key Terms
net interest margin, return on average assets, return on average equity, tangible common equity, +2 more
6 terms
net interest margin financial
"Net interest margin increased to 4.30% for the quarter ended March 31, 2026"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
return on average assets financial
"Return on average assets was 1.24% for the quarter ended March 31, 2026"
Return on average assets (ROAA) measures how efficiently a company turns its assets into profit by comparing profit after expenses to the average value of its assets over a period (usually the average of beginning and ending assets). It matters to investors because it shows how well management uses the company’s resources to generate returns—think of it as how much profit a baker earns from the oven space they actually used over time.
return on average equity financial
"Return on average equity was 10.99% for the quarter ended March 31, 2026"
Return on average equity (ROAE) measures how much profit a company generates for its shareholders’ invested capital over a period, calculated by dividing net profit by the average shareholder equity during that period. It matters to investors because it shows how efficiently management turns owners’ money into earnings—like how much bread a baker bakes from the same oven space—helping compare profitability across companies and track performance over time.
tangible common equity financial
"Tangible common equity (Non-GAAP) was $314,360 as of March 31, 2026"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
efficiency ratio financial
"Efficiency ratio (GAAP) was 59.26% for the quarter ended March 31, 2026"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
allowance for credit losses financial
"Allowance for credit losses as a percentage of total loans was 1.19% as of March 31, 2026"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Earnings Snapshot
Net income: $11.489M
Quarter ended March 31, 2026
Net income
$11.489M
Diluted EPS
$0.60
Net interest income before provision
$36.003M
up 11.87% year over year
Net interest margin
4.30%
Return on average assets
1.24%
Return on average equity
10.99%
| UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||
| Washington, D.C. 20549 | ||
FORM | ||
| CURRENT REPORT | ||
| Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||
Date of Report: April 23, 2026
(Date of earliest event reported)
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(Registrant’s telephone number, including area code) | ||||||||||||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| (Title of Each Class) | (Trading Symbol) | (Name of Each Exchange on which Registered) | ||||||||||||
Not Applicable (Former Name or Former Address, if changed since last report) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act o
Item 2.02. Results of Operations and Financial Condition
On April 23, 2026, Community West Bancshares issued a press release containing unaudited financial information and accompanying discussion for the quarter ended March 31, 2026. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 8.01. Other Events
On April 22, 2026, the Board of Directors of Community West Bancshares declared a $0.12 per share cash dividend payable on May 22, 2026 to shareholders of record as of May 8, 2026.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release of Community West Bancshares dated April 23, 2026
The information in this Form 8-K filed on April 23, 2026 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: | April 23, 2026 | COMMUNITY WEST BANCSHARES By: /s/ Shannon R. Livingston Shannon R. Livingston Executive Vice President and Chief Financial Officer (Principal Accounting Officer) | ||||||
FOR IMMEDIATE RELEASE
COMMUNITY WEST BANCSHARES REPORTS EARNINGS RESULTS
FOR THE QUARTER ENDED MARCH 31, 2026,
AND QUARTERLY DIVIDEND
FRESNO, CALIFORNIA...April 23, 2026...The Board of Directors of Community West Bancshares (“Company”) (NASDAQ: CWBC), the parent company of Community West Bank (“Bank”), reported today unaudited consolidated net income of $11,489,000, and diluted earnings per share of $0.60 for the three months ended March 31, 2026, compared to net income of $8,293,000 and $0.44 per diluted common share for the three months ended March 31, 2025. The Company declared a $0.12 per common share cash dividend, payable on May 22, 2026 to shareholders of record as of May 8, 2026.
“The first quarter of 2026 reflects a strong start to the year and underscores the consistency of our performance,” said James J. Kim, CEO and President of the Company. “On April 1, 2026, the Company completed its merger with United Security Bancshares and United Security Bank, marking a significant milestone for our organization. This combination enhances our ability to deliver expanded solutions to our clients and extend our reach into rural communities across Central California, while remaining true to our community banking foundation. Supported by an exceptional team, we are well positioned to build on this momentum and deliver long-term value.”
FINANCIAL HIGHLIGHTS
•On April 1, 2026, the Company completed its previously announced merger (“Merger”) of United Security Bancshares (“USB”) pursuant to which USB merged with and into the Company, with the Company continuing as the surviving entity. Following the Merger, United Security Bank, a wholly owned subsidiary of USB, merged with and into Community West Bank (the “Bank”), a wholly owned subsidiary of the Company, with the Bank continuing as the surviving bank. The financial condition and results of operation of the combined companies will begin to be reported in the 2026 second quarter results.
•Net income during the first quarter increased to $11.49 million, or $0.60 per diluted common share, compared to net income of $11.17 million and $0.58 per diluted common share, respectively, in the fourth quarter of 2025.
•The Company recorded a provision for credit losses of $90,000 during the quarter ended March 31, 2026, as compared to a provision for credit losses of $515,000 during the trailing quarter. The current quarter provision is attributed to a provision for loan losses totaling $122,000, a provision to the reserve for unfunded commitments of $1,000, partially offset by a credit to the reserve for held-to-maturity securities of $33,000.
•Gross loans increased by $10.2 million or 0.40% for the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025.
•Total deposits increased by $46.3 million or 1.50% for the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025.
•Total cost of deposits increased to 1.40% for the quarter ended March 31, 2026 compared to 1.39% for the quarter ended December 31, 2025.
•Average non-interest bearing demand deposit accounts as a percentage of total average deposits totaled 33.32% and 34.97% for the quarters ended March 31, 2026 and December 31, 2025, respectively.
•Net interest margin increased to 4.30% for the quarter ended March 31, 2026, from 4.24% for the quarter ended December 31, 2025.
•Return on average assets was 1.24% for the quarter ended March 31, 2026 as compared to 1.23% and 0.94% for the quarters ended December 31, 2025 and March 31, 2025, respectively. Return on average assets, excluding merger related expenses, was 1.27% for the quarter ended March 31, 2026 as compared to 1.27% and 0.96% for the
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Community West Bancshares -- page 2
quarters ended December 31, 2025 and March 31, 2025, respectively. See non-GAAP disclosures for more information.
•Return on average equity was 10.99% for the quarter ended March 31, 2026 as compared to 11.03% and 8.97% for the quarters ended December 31, 2025 and March 31, 2025, respectively. Return on average equity, excluding merger related expenses, was 11.18% for the quarter ended March 31, 2026 as compared to 11.39% and 9.19% for the quarters ended December 31, 2025 and March 31, 2025, respectively. See non-GAAP disclosures for more information.
•Capital positions remained strong at March 31, 2026 with a 9.94% Tier 1 Leverage Ratio; a 11.84% Common Equity Tier 1 Ratio; a 12.01% Tier 1 Risk-Based Capital Ratio; and a 14.24% Total Risk-Based Capital Ratio.
“First quarter 2026 results reflect continued strength across all key financial metrics, including organic growth in loans and deposits across our footprint compared to the prior quarter,” said Shannon Livingston, Executive Vice President and Chief Financial Officer. “This consistency is a direct result of disciplined execution and the strength of our team.”
Results of Operations
| Three months ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
| (In thousands, except share and per-share amounts) | 2026 | 2025 | 2025 | |||||||||||||||||
| Net interest income before provision for credit losses | $ | 36,003 | $ | 35,749 | $ | 32,182 | ||||||||||||||
| Provision (credit) for credit losses | 90 | 515 | (41) | |||||||||||||||||
| Net interest income after provision (credit) for credit losses | 35,913 | 35,234 | 32,223 | |||||||||||||||||
| Total non-interest income | 2,788 | 2,547 | 2,611 | |||||||||||||||||
| Total non-interest expenses | 22,987 | 22,452 | 23,470 | |||||||||||||||||
| Income before provision for income taxes | 15,714 | 15,329 | 11,364 | |||||||||||||||||
| Provision for income taxes | 4,225 | 4,159 | 3,071 | |||||||||||||||||
| Net income | $ | 11,489 | $ | 11,170 | $ | 8,293 | ||||||||||||||
Statement Regarding use of Non-GAAP Financial Measures
In this press release, Community West Bancshares’ financial results are presented in accordance with GAAP and refer to certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and manage the Company’s business. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.
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Community West Bancshares -- page 3
Reconciliation of GAAP and Non-GAAP Financial Measures
| Three months ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | 2025 | |||||||||||||||||
| PRE-TAX PRE-PROVISION RETURN ON AVERAGE ASSETS OR EQUITY | ||||||||||||||||||||
| Net income (GAAP) | $ | 11,489 | $ | 11,170 | $ | 8,293 | ||||||||||||||
| Exclude provision for income taxes | 4,225 | 4,159 | 3,071 | |||||||||||||||||
| Exclude provision (credit) for credit losses | 90 | 515 | (41) | |||||||||||||||||
| Net income before income tax and provision expense (Non-GAAP) | $ | 15,804 | $ | 15,844 | $ | 11,323 | ||||||||||||||
| RETURN ON AVERAGE ASSETS (Annualized) | ||||||||||||||||||||
| Average assets | $ | 3,695,982 | $ | 3,646,566 | $ | 3,528,337 | ||||||||||||||
| Return on average assets (GAAP) | 1.24 | % | 1.23 | % | 0.94 | % | ||||||||||||||
| Pre-tax pre-provision return on average assets (Non-GAAP) | 1.71 | % | 1.74 | % | 1.28 | % | ||||||||||||||
| RETURN ON AVERAGE EQUITY (Annualized) | ||||||||||||||||||||
| Average stockholders' equity | $ | 418,172 | $ | 404,975 | $ | 369,903 | ||||||||||||||
| Return on average equity (GAAP) | 10.99 | % | 11.03 | % | 8.97 | % | ||||||||||||||
| Pre-tax pre-provision return on average equity (Non-GAAP) | 15.12 | % | 15.65 | % | 12.24 | % | ||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| TANGIBLE COMMON EQUITY | ||||||||||||||||||||||||||||||||
| Shareholders’ equity (GAAP) | $ | 419,203 | $ | 409,588 | $ | 397,576 | $ | 380,002 | $ | 372,197 | ||||||||||||||||||||||
| Exclude goodwill | 96,828 | 96,828 | 96,828 | 96,828 | 96,828 | |||||||||||||||||||||||||||
| Exclude other intangibles assets | 8,015 | 8,266 | 8,516 | 8,767 | 9,017 | |||||||||||||||||||||||||||
| Tangible common equity (Non-GAAP) | $ | 314,360 | $ | 304,494 | $ | 292,232 | $ | 274,407 | $ | 266,352 | ||||||||||||||||||||||
| TANGIBLE COMMON EQUITY PER SHARE | ||||||||||||||||||||||||||||||||
| Tangible shareholders’ equity (Non-GAAP) | $ | 314,360 | $ | 304,494 | $ | 292,232 | $ | 274,407 | $ | 266,352 | ||||||||||||||||||||||
| Common shares outstanding at end of period | 19,185,275 | 19,163,452 | 19,138,677 | 19,130,508 | 19,061,009 | |||||||||||||||||||||||||||
| Common shareholders’ equity (book value) per share (GAAP) | $ | 21.85 | $ | 21.37 | $ | 19.19 | $ | 20.77 | $ | 19.86 | $ | 19.53 | ||||||||||||||||||||
| Tangible common shareholders’ equity (tangible book value) per share (Non-GAAP) | $ | 16.39 | $ | 15.89 | $ | 15.27 | $ | 14.34 | $ | 13.97 | ||||||||||||||||||||||
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Community West Bancshares -- page 4
| For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
| (In thousands, except share and per-share amounts) | 2026 | 2025 | 2025 | |||||||||||||||||
| NET INCOME ADJUSTED FOR NON-RECURRING ITEMS | ||||||||||||||||||||
| Net income (GAAP) | $ | 11,489 | $ | 11,170 | $ | 8,293 | ||||||||||||||
| Merger and conversion related costs: | ||||||||||||||||||||
| Personnel and severance | — | — | 198 | |||||||||||||||||
| Professional services | 289 | 520 | — | |||||||||||||||||
| Data processing and technology | — | — | 87 | |||||||||||||||||
| Total merger and conversion related costs | 289 | 520 | 285 | |||||||||||||||||
| Income tax impact of non-core items | (85) | (154) | (84) | |||||||||||||||||
| Comparable net income (non-GAAP) | $ | 11,693 | $ | 11,536 | $ | 8,494 | ||||||||||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||||||||||
| Weighted average diluted shares | 19,137,134 | 19,117,789 | 19,014,773 | |||||||||||||||||
| Diluted earnings per share (GAAP) | $ | 0.60 | $ | 0.58 | $ | 0.44 | ||||||||||||||
| Comparable diluted earnings per share (non-GAAP) | $ | 0.61 | $ | 0.60 | $ | 0.45 | ||||||||||||||
| RETURN ON AVERAGE ASSETS | ||||||||||||||||||||
| Average assets | $ | 3,695,982 | $ | 3,646,566 | $ | 3,528,337 | ||||||||||||||
| Return on average assets (GAAP) | 1.24 | % | 1.23 | % | 0.94 | % | ||||||||||||||
| Impact of non-core expenses | 0.03 | % | 0.04 | % | 0.02 | % | ||||||||||||||
| Comparable return on average assets (non-GAAP) | 1.27 | % | 1.27 | % | 0.96 | % | ||||||||||||||
| RETURN ON AVERAGE EQUITY | ||||||||||||||||||||
| Average stockholders' equity | $ | 418,172 | $ | 404,975 | $ | 369,903 | ||||||||||||||
| Return on average equity (GAAP) | 10.99 | % | 11.03 | % | 8.97 | % | ||||||||||||||
| Impact of non-core expenses | 0.19 | % | 0.36 | % | 0.22 | % | ||||||||||||||
| Comparable return on average equity (non-GAAP) | 11.18 | % | 11.39 | % | 9.19 | % | ||||||||||||||
| EFFICIENCY RATIO | ||||||||||||||||||||
| Non-interest expense (GAAP) | $ | 22,987 | $ | 22,452 | $ | 23,470 | ||||||||||||||
| Merger-related non-interest expenses | (289) | (520) | (285) | |||||||||||||||||
| Comparable non-interest expense (non-GAAP) | 22,698 | 21,932 | 23,185 | |||||||||||||||||
| Net interest income (GAAP) | 36,003 | 35,749 | 32,182 | |||||||||||||||||
| Non-interest income (GAAP) | 2,788 | 2,547 | 2,611 | |||||||||||||||||
| Comparable non-interest income (non-GAAP) | $ | 2,788 | $ | 2,547 | $ | 2,611 | ||||||||||||||
| Efficiency ratio (GAAP) | 59.26 | % | 58.63 | % | 67.46 | % | ||||||||||||||
| Comparable efficiency ratio (non-GAAP) | 58.51 | % | 57.27 | % | 66.64 | % | ||||||||||||||
For the quarter ended March 31, 2026, the Company reported unaudited consolidated net income of $11,489,000 and diluted earnings per common share of $0.60, compared to consolidated net income of $11,170,000 and $0.58 per fully diluted share for the trailing quarter, and consolidated net income of $8,293,000 and $0.44 per diluted share for the same period in 2025. The Company's earnings during the quarter benefited from an increase in net interest income before provision for credit losses, an increase in non-interest income, and a lower provision for credit losses, partially offset by an increase in non-interest expense, as compared to the prior quarter.
Annualized return on average equity (ROAE) for the quarter ended March 31, 2026 was 10.99%, compared to 8.97% for the same period of 2025. Annualized return on average assets (ROAA) was 1.24% for the quarter ended March 31, 2026 compared to 0.94% for the same period in 2025.
The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.83% for the quarter ended March 31, 2026, compared to 3.02% for the quarter ended March 31, 2025 and 2.87% for the quarter ended December 31, 2025.
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Community West Bancshares -- page 5
Total average loans, including non-accrual loans, increased by $209,657,000 to $2,543,654,000 for the quarter ended March 31, 2026, from $2,333,997,000 for the quarter ended March 31, 2025 and increased by $61,377,000 from $2,482,277,000 for the quarter ended December 31, 2025. The year over year increase was due to organic loan growth throughout the Company’s expanded footprint. The effective yield on average loans was 6.72% for the quarter ended March 31, 2026, compared to 6.69% and 6.66% for the quarters ended March 31, 2025 and December 31, 2025, respectively.
The Company’s net interest margin (fully tax equivalent basis) was 4.30% for the quarter ended March 31, 2026, compared to 4.04% for the quarter ended March 31, 2025 and 4.24% for the quarter ended December 31, 2025. Net interest income, before provision for credit losses, increased by $3,821,000 or 11.87%, to $36,003,000 for the first quarter of 2026, compared to $32,182,000 for the same period in 2025. In addition to the increase in average loans due to organic loan growth, the Company's yield on interest earning assets has increased from 5.65% for the quarter ended March 31, 2025 to 5.71% for the quarter ended March 31, 2026. Additionally, the Company benefited from a decrease in the costs on interest-bearing liabilities, in which the cost of total deposits decreased to 1.40% from 1.45% when comparing the quarters ended March 31, 2026 and 2025. The decrease in the cost of deposits is primarily attributed to rate decreases in both the money market and time deposit portfolios. Net interest margin during the three months ended March 31, 2026 and 2025 and December 31, 2025 benefited by approximately 25 basis points ($2,098,000), 25 basis points ($2,052,000), and 27 basis points ($2,349,000), respectively, from the net accretion of fair value marks.
Non-Interest Income - The following tables present the key components of non-interest income for the periods indicated:
| Three months ended | ||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||||
| Federal Home Loan Bank dividends | $ | 557 | $ | 242 | $ | 315 | 130.2 | % | ||||||||||||||||||
| Service charges | 518 | 502 | 16 | 3.2 | % | |||||||||||||||||||||
| Interchange fees | 464 | 447 | 17 | 3.8 | % | |||||||||||||||||||||
| Appreciation in cash surrender value of bank owned life insurance | 377 | 380 | (3) | (0.8) | % | |||||||||||||||||||||
| Loan placement fees | 146 | 212 | (66) | (31.1) | % | |||||||||||||||||||||
| Other income | 726 | 764 | (38) | (5.0) | % | |||||||||||||||||||||
| Total non-interest income | $ | 2,788 | $ | 2,547 | $ | 241 | 9.5 | % | ||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||||
| Federal Home Loan Bank dividends | $ | 557 | $ | 241 | $ | 316 | 131.1 | % | ||||||||||||||||||
| Service charges | 518 | 502 | 16 | 3.2 | % | |||||||||||||||||||||
| Interchange fees | 464 | 516 | (52) | (10.1) | % | |||||||||||||||||||||
| Appreciation in cash surrender value of bank owned life insurance | 377 | 366 | 11 | 3.0 | % | |||||||||||||||||||||
| Loan placement fees | 146 | 171 | (25) | (14.6) | % | |||||||||||||||||||||
| Other income | 726 | 815 | (89) | (10.9) | % | |||||||||||||||||||||
| Total non-interest income | $ | 2,788 | $ | 2,611 | $ | 177 | 6.8 | % | ||||||||||||||||||
The increase in total non-interest income for the quarter ended March 31, 2026 as compared to the trailing quarter was primarily driven by an increase in FHLB dividends, interchange fees, and service charges.
The increase in total non-interest income as compared to the prior year quarter was primarily driven by higher FHLB dividends, partially offset by a decrease in loan placement fees.
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Community West Bancshares -- page 6
Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:
| Three months ended | ||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||||
| Salaries and employee benefits | $ | 12,764 | $ | 12,097 | $ | 667 | 5.5 | % | ||||||||||||||||||
| Occupancy and equipment | 2,855 | 2,876 | (21) | (0.7) | % | |||||||||||||||||||||
| Information technology | 1,713 | 1,733 | (20) | (1.2) | % | |||||||||||||||||||||
| Data processing expense | 760 | 757 | 3 | 0.4 | % | |||||||||||||||||||||
| Professional services | 622 | 440 | 182 | 41.4 | % | |||||||||||||||||||||
| Regulatory assessments | 526 | 515 | 11 | 2.1 | % | |||||||||||||||||||||
| ATM/Debit card expenses | 347 | 440 | (93) | (21.1) | % | |||||||||||||||||||||
| Merger and acquisition expense | 289 | 520 | (231) | (44.4) | % | |||||||||||||||||||||
| Amortization of core deposit intangibles | 251 | 251 | — | — | % | |||||||||||||||||||||
| Directors’ expenses | 236 | 226 | 10 | 4.4 | % | |||||||||||||||||||||
| Advertising | 201 | 242 | (41) | (16.9) | % | |||||||||||||||||||||
| Loan related expenses | 185 | 211 | (26) | (12.3) | % | |||||||||||||||||||||
| Personnel other | 38 | 96 | (58) | (60.4) | % | |||||||||||||||||||||
| Other expense | 2,200 | 2,048 | 152 | 7.4 | % | |||||||||||||||||||||
| Total non-interest expenses | $ | 22,987 | $ | 22,452 | $ | 535 | 2.4 | % | ||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||||
| Salaries and employee benefits | $ | 12,764 | $ | 12,959 | $ | (195) | (1.5) | % | ||||||||||||||||||
| Occupancy and equipment | 2,855 | 2,827 | 28 | 1.0 | % | |||||||||||||||||||||
| Information technology | 1,713 | 1,902 | (189) | (9.9) | % | |||||||||||||||||||||
| Data processing expense | 760 | 800 | (40) | (5.0) | % | |||||||||||||||||||||
| Professional services | 622 | 864 | (242) | (28.0) | % | |||||||||||||||||||||
| Regulatory assessments | 526 | 491 | 35 | 7.1 | % | |||||||||||||||||||||
| ATM/Debit card expenses | 347 | 393 | (46) | (11.7) | % | |||||||||||||||||||||
| Merger and acquisition expense | 289 | 276 | 13 | 4.7 | % | |||||||||||||||||||||
| Amortization of core deposit intangibles | 251 | 251 | — | — | % | |||||||||||||||||||||
| Directors’ expenses | 236 | 216 | 20 | 9.3 | % | |||||||||||||||||||||
| Advertising | 201 | 261 | (60) | (23.0) | % | |||||||||||||||||||||
| Loan related expenses | 185 | 212 | (27) | (12.7) | % | |||||||||||||||||||||
| Personnel other | 38 | 101 | (63) | (62.4) | % | |||||||||||||||||||||
| Other expense | 2,200 | 1,917 | 283 | 14.8 | % | |||||||||||||||||||||
| Total non-interest expenses | $ | 22,987 | $ | 23,470 | $ | (483) | (2.1) | % | ||||||||||||||||||
During the first quarter of 2026, total non-interest expense increased $535,000 as compared to the trailing quarter. The increase was driven primarily by increases in salary and employee benefits. The increase in salary and employee benefits was due to annual increases in payroll taxes and other compensation and benefits during the first quarter. Professional services expense increased due to increased audit and consulting fees.
The decrease in total non-interest expenses as compared to the prior year quarter was driven by a decrease in salaries and employee benefits due to a lower FTE count and decreases in professional services and information technology expenses.
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Community West Bancshares -- page 7
Balance Sheet Summary
Total assets for the period ended March 31, 2026 increased $12,666,000 or 0.34%, compared to the period ended December 31, 2025. Total average assets for the quarter ended March 31, 2026 were $3,695,982,000 compared to $3,528,337,000 for the quarter ended March 31, 2025 and $3,646,566,000 for the quarter ended December 31, 2025, an increase of $167,645,000 or 4.75% and an increase of $49,416,000 or 1.36%, respectively.
For the quarter ended March 31, 2026, the Company’s average gross investment securities decreased by $40,032,000, or 4.75%, compared to the quarter ended March 31, 2025, and decreased by $5,590,000, or 0.69%, compared to the quarter ended December 31, 2025. This decrease compared to the prior year was the result of calls and maturities of available-for-sale securities and held-to-maturity securities.
In comparing the quarter ended March 31, 2026 to the quarters ended March 31, 2025 and December 31, 2025, total average gross loans increased $209,657,000 or 8.98%, and increased by $61,377,000 or 2.47%, respectively.
The following table shows the Company’s outstanding loan portfolio composition as of March 31, 2026 and December 31, 2025:
March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Loan Type (dollars in thousands) | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||
| Commercial and industrial | $ | 176,653 | 6.9 | % | $ | 156,744 | 6.2 | % | ||||||||||||||||||
| Agricultural production | 26,054 | 1.0 | % | 34,152 | 1.3 | % | ||||||||||||||||||||
| Total commercial | 202,707 | 7.9 | % | 190,896 | 7.5 | % | ||||||||||||||||||||
| Real estate: | ||||||||||||||||||||||||||
| Construction & other land loans | 88,550 | 3.5 | % | 80,452 | 3.2 | % | ||||||||||||||||||||
| Commercial real estate - owner occupied | 392,349 | 15.4 | % | 368,604 | 14.5 | % | ||||||||||||||||||||
| Commercial real estate - non-owner occupied | 969,158 | 38.0 | % | 992,486 | 39.1 | % | ||||||||||||||||||||
| Farmland | 143,427 | 5.6 | % | 142,100 | 5.6 | % | ||||||||||||||||||||
| Multi-family residential | 180,612 | 7.1 | % | 199,123 | 7.8 | % | ||||||||||||||||||||
| 1-4 family - close-ended | 113,278 | 4.4 | % | 111,741 | 4.4 | % | ||||||||||||||||||||
| 1-4 family - revolving | 42,128 | 1.7 | % | 39,818 | 1.6 | % | ||||||||||||||||||||
| Total real estate | 1,929,502 | 75.7 | % | 1,934,324 | 76.2 | % | ||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||
| Manufactured housing | 323,241 | 12.7 | % | 322,761 | 12.7 | % | ||||||||||||||||||||
| Other installment | 95,073 | 3.7 | % | 92,589 | 3.6 | % | ||||||||||||||||||||
| Total consumer | 418,314 | 16.4 | % | 415,350 | 16.3 | % | ||||||||||||||||||||
| Net deferred origination costs | 535 | — | % | 287 | — | % | ||||||||||||||||||||
| Total gross loans | 2,551,058 | 100.0 | % | 2,540,857 | 100.0 | % | ||||||||||||||||||||
| Allowance for credit losses | (30,230) | (30,071) | ||||||||||||||||||||||||
| Total loans | $ | 2,520,828 | $ | 2,510,786 | ||||||||||||||||||||||
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Community West Bancshares -- page 8
The composition of deposits at March 31, 2026 and December 31, 2025 is summarized in the table below:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| (Dollars in thousands) | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
| Savings and NOW accounts | $ | 654,153 | 20.8 | % | $ | 674,704 | 21.8 | % | ||||||||||||||||||
| MMA accounts | 896,762 | 28.5 | % | 858,354 | 27.7 | % | ||||||||||||||||||||
| Time deposits | 543,037 | 17.3 | % | 503,451 | 16.3 | % | ||||||||||||||||||||
| Total interest-bearing | 2,093,952 | 66.7 | % | 2,036,509 | 65.8 | % | ||||||||||||||||||||
| Non-interest bearing | 1,047,641 | 33.3 | % | 1,058,765 | 34.2 | % | ||||||||||||||||||||
| Total deposits | $ | 3,141,593 | 100.0 | % | $ | 3,095,274 | 100.0 | % | ||||||||||||||||||
Total average deposits increased $241,687,000 or 8.32%, to $3,148,164,000 for the quarter ended March 31, 2026, compared to $2,906,477,000 for the quarter ended March 31, 2025, and increased $33,634,000, or 1.08%, compared to $3,114,530,000 for the quarter ended December 31, 2025. The increase in average deposits was due to organic growth through the Company’s footprint. The Company’s ratio of average non-interest bearing deposits to total deposits was 33.32% for the quarter ended March 31, 2026, compared to 34.30% and 34.97% for the quarters ended March 31, 2025 and December 31, 2025, respectively.
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 $11,342,000 to $130,326,000 compared to $118,984,000 at December 31, 2025. The Company had $34,000,000 in short-term borrowings at March 31, 2026 compared to $73,000,000 at December 31, 2025.
At March 31, 2026 and December 31, 2025, the Company had the following sources of primary and secondary liquidity:
| Liquidity Sources (in thousands) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Cash and cash equivalents | $ | 130,326 | $ | 118,984 | ||||||||||
| Unpledged investment securities | 333,985 | 338,235 | ||||||||||||
| Excess pledged securities | 76,109 | 85,961 | ||||||||||||
| FHLB borrowing availability | 811,119 | 709,391 | ||||||||||||
| Unsecured lines of credit availability | 110,000 | 110,000 | ||||||||||||
| Funds available through FRB discount window | 3,286 | 3,411 | ||||||||||||
| Total | $ | 1,464,825 | $ | 1,365,982 | ||||||||||
Credit Quality
During the first quarter of 2026, the Company recorded net loan recoveries of $37,000 compared to $125,000 for the same period in 2025. The net recovery ratio reflects annualized net recoveries to average loans of 0.01% for the quarter ended March 31, 2026, compared to annualized net recoveries of 0.02% for the quarter ended March 31, 2025. During the quarter ended March 31, 2026, non-accrual loans increased $16,042,000 to $22,997,000 compared to $6,955,000 at December 31, 2025. The increase in non-accrual loans during the quarter was due to two substandard loans that reached 90 days past due subsequent to quarter-end. Both loans are considered collateral dependent and individually evaluated for impairment. During the quarter ended March 31, 2026, the Company recorded a $122,000 provision for loan losses, compared to $168,000 for the same period in 2025. In addition to the provision for credit losses on loans for the quarter ended March 31, 2026, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $33,000 as compared to $182,000 in the prior year quarter. The Company recorded a provision for unfunded loan commitments totaling $1,000 for the quarter ended March 31, 2026 compared to a credit to the provision of $27,000 in the prior year quarter.
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Community West Bancshares -- page 9
The following table shows the Company’s loan portfolio, net of deferred costs, allocated by management’s internal risk ratings:
| Loan Risk Rating (In thousands) | March 31, 2026 | % of Total | December 31, 2025 | % of Total | March 31, 2025 | % of Total | ||||||||||||||||||||||||||||||||
| Pass | $ | 2,424,756 | 95.0 | % | $ | 2,407,906 | 94.8 | % | $ | 2,282,083 | 97.3 | % | ||||||||||||||||||||||||||
| Special mention | 49,500 | 2.0 | % | 54,155 | 2.1 | % | 17,209 | 0.7 | % | |||||||||||||||||||||||||||||
| Substandard | 76,802 | 3.0 | % | 78,796 | 3.1 | % | 47,605 | 2.0 | % | |||||||||||||||||||||||||||||
| Doubtful | — | — | — | |||||||||||||||||||||||||||||||||||
| Total | $ | 2,551,058 | 100.0 | % | $ | 2,540,857 | 100.0 | % | $ | 2,346,897 | 100.0 | % | ||||||||||||||||||||||||||
At March 31, 2026, the allowance for credit losses for loans was $30,230,000, compared to $30,071,000 at December 31, 2025, a net increase of $159,000 reflecting a provision for loan losses of $122,000 and net recoveries during the period. The allowance for credit losses as a percentage of total loans was 1.19% as of March 31, 2026 compared to 1.18% at December 31, 2025. The Company believes the allowance for credit losses is adequate to provide for expected credit losses within the loan portfolio at March 31, 2026.
Cash Dividend Declared
On April 22, 2026, 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 May 22, 2026 to shareholders of record as of May 8, 2026. The Company continues to be well capitalized and expects to maintain adequate capital levels.
About Community West Bank and Bancshares
Effective on April 1, 2026, Community West Bancshares completed its merger with United Security Bancshares, with Community West Bancshares continuing as the surviving entity. Shortly thereafter United Security Bank, a wholly owned subsidiary of United Security Bancshares, merged with and into Community West Bank, a wholly-owned subsidiary of Community West Bancshares, with Community West Bank continuing as the surviving banking institution. Pursuant to the terms of the merger agreement, each share of United Security Bancshares common stock was converted into the right to receive 0.4520 shares of Community West Bancshares common stock, with cash to be paid in lieu of any fractional shares.
Community West Bancshares (NASDAQ: CWBC) and its wholly owned subsidiary, Community West Bank, are headquartered in Fresno, California. The Company was established in 1979 with the vision to help businesses and communities by exceeding expectations at every opportunity, and opened its first Banking Center on January 10, 1980. Today, Community West Bank operates full-service Banking Centers throughout Central California and maintains a variety of departments supporting Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking, and Treasury Management Services.
Members of the Company and Bank Board of Directors are: Daniel J. Doyle (Chairman), Jagroop “Jay” Gill (Vice Chairman), James J. Kim (CEO and President), Andriana D. Majarian (Lead Independent Director), Robert H. Bartlein, Daniel N. Cunningham, F.T. “Tommy” Elliott IV, Robert J. Flautt, James W. Lokey, Steven D. McDonald, Martin E. Plourd, Dorothea D. Silva, Kirk B. Stovesand, and Dora Westerlund. Louis C. McMurray is Director Emeritus.
More information about Community West Bancshares and Community West Bank can be found at www.communitywestbank.com.
###
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Community West Bancshares -- page 10
Forward-looking Statements - Certain matters set forth herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: risks relating to our recently completed acquisition of United Security Bancshares; current and future business, economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values and overall slowdowns in economic growth should these events occur; inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in the portfolio or in the secondary market; effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board; geopolitical and domestic political developments including the imposition of tariffs and the ongoing war in Iran, that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, and increase the volatility of financial markets; changes in the level of nonperforming assets and charge offs and other credit quality measures, and their impact on the adequacy of our allowance for credit losses and our provision for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, and the success of construction projects that we finance; our ability to achieve loan growth and attract deposits in our market area, the impact of the cost of deposits and our ability to retain deposits; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies; challenges arising from attempts to expand into new geographic markets, products, or services; restraints on the ability of Community West Bank to pay dividends to us, which could limit our liquidity; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; changes in our management personnel or our inability to retain, motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; natural disasters, such as earthquakes, wildfires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; compliance with governmental and regulatory requirements, relating to banking, consumer protection, securities and tax matters; and our ability to the manage the foregoing.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward looking statements in this report. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
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Community West Bancshares -- page 11
COMMUNITY WEST BANCSHARES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, | December 31, | March 31, | ||||||||||||||||||
| (In thousands, except share amounts) | 2026 | 2025 | 2025 | |||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 37,925 | $ | 27,627 | $ | 35,710 | ||||||||||||||
| Interest-earning deposits in other banks | 92,401 | 91,357 | 112,682 | |||||||||||||||||
| Total cash and cash equivalents | 130,326 | 118,984 | 148,392 | |||||||||||||||||
Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $508,605 at March 31, 2026, $509,083 at December 31, 2025, and $525,499 at March 31, 2025 | 467,871 | 469,410 | 469,033 | |||||||||||||||||
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $407 at March 31, 2026, $440 at December 31, 2025, and $974 at March 31, 2025 | 281,078 | 287,117 | 301,160 | |||||||||||||||||
| Equity securities, at fair value | 6,755 | 6,797 | 6,684 | |||||||||||||||||
Loans, less allowance for credit losses of $30,230 at March 31, 2026, $30,071 at December 31, 2025, and $26,095 at March 31, 2025 | 2,520,828 | 2,510,786 | 2,320,802 | |||||||||||||||||
| Bank premises and equipment, net | 25,387 | 23,545 | 23,828 | |||||||||||||||||
| Bank owned life insurance | 54,540 | 54,163 | 53,685 | |||||||||||||||||
| Federal Home Loan Bank stock | 10,978 | 10,978 | 10,978 | |||||||||||||||||
| Goodwill | 96,828 | 96,828 | 96,828 | |||||||||||||||||
| Core deposit intangibles | 8,015 | 8,266 | 9,017 | |||||||||||||||||
| Accrued interest receivable and other assets | 100,377 | 103,443 | 112,679 | |||||||||||||||||
| Total assets | $ | 3,702,983 | $ | 3,690,317 | $ | 3,553,086 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing | $ | 1,047,641 | $ | 1,058,765 | $ | 1,012,288 | ||||||||||||||
| Interest bearing | 2,093,952 | 2,036,509 | 1,916,390 | |||||||||||||||||
| Total deposits | 3,141,593 | 3,095,274 | 2,928,678 | |||||||||||||||||
| Borrowings | 34,000 | 73,000 | 134,377 | |||||||||||||||||
| Senior debt and subordinated debentures | 69,176 | 69,526 | 69,925 | |||||||||||||||||
| Accrued interest payable and other liabilities | 39,011 | 42,929 | 47,909 | |||||||||||||||||
| Total liabilities | 3,283,780 | 3,280,729 | 3,180,889 | |||||||||||||||||
| Shareholders’ equity: | ||||||||||||||||||||
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding | — | — | — | |||||||||||||||||
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 19,185,275 at March 31, 2026, 19,163,452 at December 31, 2025, and 19,061,009 at March 31, 2025 | 210,858 | 210,222 | 208,958 | |||||||||||||||||
| Retained earnings | 248,180 | 238,990 | 215,999 | |||||||||||||||||
| Accumulated other comprehensive loss, net of tax | (39,835) | (39,624) | (52,760) | |||||||||||||||||
| Total shareholders’ equity | 419,203 | 409,588 | 372,197 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,702,983 | $ | 3,690,317 | $ | 3,553,086 | ||||||||||||||
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Community West Bancshares -- page 12
COMMUNITY WEST BANCSHARES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| For the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||
| (In thousands, except share and per-share amounts) | 2026 | 2025 | 2025 | |||||||||||||||||
| INTEREST INCOME: | ||||||||||||||||||||
| Interest and fees on loans | $ | 41,905 | $ | 41,543 | $ | 38,425 | ||||||||||||||
| Interest on deposits in other banks | 850 | 919 | 1,056 | |||||||||||||||||
| Interest and dividends on investment securities: | ||||||||||||||||||||
| Taxable | 3,872 | 3,921 | 4,350 | |||||||||||||||||
| Exempt from Federal income taxes | 1,265 | 1,275 | 1,307 | |||||||||||||||||
| Total interest income | 47,892 | 47,658 | 45,138 | |||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||
| Interest on deposits | 10,835 | 10,920 | 10,388 | |||||||||||||||||
| Interest on borrowings | 212 | 103 | 895 | |||||||||||||||||
| Interest on senior debt and subordinated debentures | 842 | 886 | 1,673 | |||||||||||||||||
| Total interest expense | 11,889 | 11,909 | 12,956 | |||||||||||||||||
| Net interest income before provision for credit losses | 36,003 | 35,749 | 32,182 | |||||||||||||||||
| PROVISION (CREDIT) FOR CREDIT LOSSES | 90 | 515 | (41) | |||||||||||||||||
| Net interest income after provision (credit) for credit losses | 35,913 | 35,234 | 32,223 | |||||||||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||||||
| Service charges | 518 | 502 | 502 | |||||||||||||||||
| Other income | 2,270 | 2,045 | 2,109 | |||||||||||||||||
| Total non-interest income | 2,788 | 2,547 | 2,611 | |||||||||||||||||
| NON-INTEREST EXPENSES: | ||||||||||||||||||||
| Salaries and employee benefits | 12,764 | 12,097 | 12,959 | |||||||||||||||||
| Occupancy and equipment | 2,855 | 2,876 | 2,827 | |||||||||||||||||
| Other expense | 7,368 | 7,479 | 7,684 | |||||||||||||||||
| Total non-interest expenses | 22,987 | 22,452 | 23,470 | |||||||||||||||||
| Income before provision for income taxes | 15,714 | 15,329 | 11,364 | |||||||||||||||||
| PROVISION FOR INCOME TAXES | 4,225 | 4,159 | 3,071 | |||||||||||||||||
| Net income | $ | 11,489 | $ | 11,170 | $ | 8,293 | ||||||||||||||
| Net income per common share: | ||||||||||||||||||||
| Basic earnings per common share | $ | 0.60 | $ | 0.59 | $ | 0.44 | ||||||||||||||
| Weighted average common shares used in basic computation | 19,060,177 | 19,044,351 | 18,933,830 | |||||||||||||||||
| Diluted earnings per common share | $ | 0.60 | $ | 0.58 | $ | 0.44 | ||||||||||||||
| Weighted average common shares used in diluted computation | 19,137,134 | 19,117,789 | 19,014,773 | |||||||||||||||||
| Cash dividends per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | ||||||||||||||
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Community West Bancshares -- page 13
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Mar. 31, | Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||||||||||||||
| For the three months ended | 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 36,003 | $ | 35,749 | $ | 34,944 | $ | 33,304 | $ | 32,182 | ||||||||||||||||||||||
| Provision (credit) for credit losses | 90 | 515 | 667 | 2,613 | (41) | |||||||||||||||||||||||||||
| Net interest income after provision (credit) for credit losses | 35,913 | 35,234 | 34,277 | 30,691 | 32,223 | |||||||||||||||||||||||||||
| Total non-interest income | 2,788 | 2,547 | 2,966 | 2,364 | 2,611 | |||||||||||||||||||||||||||
| Total non-interest expense | 22,987 | 22,452 | 22,167 | 22,296 | 23,470 | |||||||||||||||||||||||||||
| Provision for income taxes | 4,225 | 4,159 | 4,203 | 2,927 | 3,071 | |||||||||||||||||||||||||||
| Net income | $ | 11,489 | $ | 11,170 | $ | 10,873 | $ | 7,832 | $ | 8,293 | ||||||||||||||||||||||
| Basic earnings per common share | $ | 0.60 | $ | 0.59 | $ | 0.57 | $ | 0.41 | $ | 0.44 | ||||||||||||||||||||||
| Weighted average common shares used in basic computation | 19,060,177 | 19,044,351 | 19,019,990 | 18,987,217 | 18,933,830 | |||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.60 | $ | 0.58 | $ | 0.57 | $ | 0.41 | $ | 0.44 | ||||||||||||||||||||||
| Weighted average common shares used in diluted computation | 19,137,134 | 19,117,789 | 19,093,544 | 19,042,750 | 19,014,773 | |||||||||||||||||||||||||||
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Community West Bancshares -- page 14
COMMUNITY WEST BANCSHARES
SELECTED RATIOS
(Unaudited)
| Mar. 31, | Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||||||||||||||
| As of and for the three months ended | 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| Allowance for credit losses to total loans | 1.19 | % | 1.18 | % | 1.21 | % | 1.20 | % | 1.11 | % | ||||||||||||||||||||||
| Non-performing assets to total assets | 0.62 | % | 0.19 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||||||||||||
| Total non-performing assets | $ | 22,997 | $ | 6,955 | $ | 7,072 | $ | 6,769 | $ | 6,936 | ||||||||||||||||||||||
| Total nonaccrual loans | $ | 22,997 | $ | 6,955 | $ | 7,072 | $ | 6,769 | $ | 6,936 | ||||||||||||||||||||||
| Total substandard loans | $ | 76,802 | $ | 78,796 | $ | 67,069 | $ | 59,073 | $ | 47,605 | ||||||||||||||||||||||
| Total special mention loans | $ | 49,500 | $ | 54,155 | $ | 24,925 | $ | 19,706 | $ | 17,209 | ||||||||||||||||||||||
| Net loan charge-offs (recoveries) | $ | (37) | $ | 118 | $ | (75) | $ | 13 | $ | (125) | ||||||||||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | (0.01) | % | 0.02 | % | (0.01) | % | — | % | (0.02) | % | ||||||||||||||||||||||
| Book value per share | $ | 21.85 | $ | 21.37 | $ | 20.77 | $ | 19.86 | $ | 19.53 | ||||||||||||||||||||||
| Tangible book value per share (1) | $ | 16.39 | $ | 15.89 | $ | 15.27 | $ | 14.34 | $ | 13.97 | ||||||||||||||||||||||
| Total equity | $ | 419,203 | $ | 409,588 | $ | 397,576 | $ | 380,002 | $ | 372,197 | ||||||||||||||||||||||
| Tangible common equity (1) | $ | 314,360 | $ | 304,494 | $ | 292,232 | $ | 274,407 | $ | 266,352 | ||||||||||||||||||||||
| Cost of total deposits | 1.40 | % | 1.39 | % | 1.39 | % | 1.43 | % | 1.45 | % | ||||||||||||||||||||||
| Interest and dividends on investment securities exempt from Federal income taxes | $ | 1,265 | $ | 1,275 | $ | 1,273 | $ | 1,307 | $ | 1,307 | ||||||||||||||||||||||
| Net interest margin (calculated on a fully tax equivalent basis) (2) | 4.30 | % | 4.24 | % | 4.20 | % | 4.10 | % | 4.04 | % | ||||||||||||||||||||||
| Return on average assets (3) | 1.24 | % | 1.23 | % | 1.21 | % | 0.88 | % | 0.94 | % | ||||||||||||||||||||||
| Return on average equity (3) | 10.99 | % | 11.03 | % | 11.25 | % | 8.30 | % | 8.97 | % | ||||||||||||||||||||||
| Loan to deposit ratio | 81.15 | % | 82.04 | % | 79.66 | % | 80.12 | % | 80.13 | % | ||||||||||||||||||||||
| Efficiency ratio | 59.26 | % | 58.63 | % | 58.47 | % | 62.51 | % | 67.38 | % | ||||||||||||||||||||||
| Tier 1 leverage - Bancorp | 9.94 | % | 9.80 | % | 9.52 | % | 9.48 | % | 9.36 | % | ||||||||||||||||||||||
| Tier 1 leverage - Bank | 11.43 | % | 11.44 | % | 11.24 | % | 11.25 | % | 11.12 | % | ||||||||||||||||||||||
| Common equity tier 1 - Bancorp | 11.84 | % | 11.56 | % | 11.60 | % | 11.42 | % | 11.39 | % | ||||||||||||||||||||||
| Common equity tier 1 - Bank | 13.81 | % | 13.70 | % | 13.90 | % | 13.76 | % | 13.75 | % | ||||||||||||||||||||||
| Tier 1 risk-based capital - Bancorp | 12.01 | % | 11.73 | % | 11.77 | % | 11.59 | % | 11.57 | % | ||||||||||||||||||||||
| Tier 1 risk-based capital - Bank | 13.81 | % | 13.70 | % | 13.90 | % | 13.76 | % | 13.75 | % | ||||||||||||||||||||||
| Total risk-based capital - Bancorp | 14.24 | % | 13.97 | % | 14.07 | % | 13.89 | % | 13.82 | % | ||||||||||||||||||||||
| Total risk based capital - Bank | 14.88 | % | 14.77 | % | 14.99 | % | 14.84 | % | 14.75 | % | ||||||||||||||||||||||
(1) Non-GAAP measure. See reconciliation of GAAP and Non-GAAP Financial Measures.
(2) Net Interest Margin is computed by dividing annualized quarterly net interest income by quarterly average interest-bearing assets.
(3) Computed by annualizing quarterly net income.
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Community West Bancshares -- page 15
COMMUNITY WEST BANCSHARES
SCHEDULE OF AVERAGE BALANCES AND AVERAGE YIELDS AND RATES
(Unaudited)
For the Three Months Ended March 31, 2026 | For the Three Months Ended December 31, 2025 | For the Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income/ Expense | Average Interest Rate | Average Balance | Interest Income/ Expense | Average Interest Rate | Average Balance | Interest Income/ Expense | Average Interest Rate | |||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning deposits in other banks | $ | 90,720 | $ | 850 | 3.75 | % | $ | 92,489 | $ | 919 | 3.97 | % | $ | 93,217 | $ | 1,056 | 4.53 | % | ||||||||||||||||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable securities | 565,745 | 3,872 | 2.74 | % | 570,478 | 3,921 | 2.75 | % | 602,427 | 4,350 | 2.89 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Non-taxable securities (1) | 236,657 | 1,601 | 2.71 | % | 237,514 | 1,613 | 2.72 | % | 240,007 | 1,655 | 2.76 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total investment securities | 802,402 | 5,473 | 2.73 | % | 807,992 | 5,534 | 2.74 | % | 842,434 | 6,005 | 2.85 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total securities and interest-earning deposits | 893,122 | 6,323 | 2.83 | % | 900,481 | 6,453 | 2.87 | % | 935,651 | 7,061 | 3.02 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Loans (2) (3) | 2,530,812 | 41,905 | 6.72 | % | 2,475,184 | 41,543 | 6.66 | % | 2,327,832 | 38,425 | 6.69 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 3,423,934 | $ | 48,228 | 5.71 | % | 3,375,665 | $ | 47,996 | 5.64 | % | 3,263,483 | $ | 45,486 | 5.65 | % | |||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (30,094) | (29,627) | (25,858) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-accrual loans | 12,842 | 7,093 | 6,165 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 33,687 | 33,766 | 35,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bank premises and equipment | 23,866 | 23,742 | 24,326 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 231,747 | 235,927 | 224,303 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total average assets | $ | 3,695,982 | $ | 3,646,566 | $ | 3,528,337 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings and NOW accounts | $ | 694,497 | $ | 1,168 | 0.68 | % | $ | 660,200 | $ | 1,395 | 0.84 | % | $ | 586,698 | $ | 859 | 0.59 | % | ||||||||||||||||||||||||||||||||||||||
| Money market accounts | 869,143 | 5,084 | 2.37 | % | 864,615 | 4,925 | 2.26 | % | 872,896 | 5,100 | 2.37 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Time certificates of deposit | 535,479 | 4,583 | 3.47 | % | 500,605 | 4,600 | 3.65 | % | 449,962 | 4,429 | 3.99 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 2,099,119 | 10,835 | 2.09 | % | 2,025,420 | 10,920 | 2.14 | % | 1,909,556 | 10,388 | 2.21 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Other borrowed funds | 91,317 | 1,054 | 4.62 | % | 79,612 | 989 | 4.86 | % | 206,162 | 2,568 | 4.98 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,190,436 | $ | 11,889 | 2.20 | % | 2,105,032 | $ | 11,909 | 2.24 | % | 2,115,718 | $ | 12,956 | 2.48 | % | |||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing demand deposits | 1,049,045 | 1,089,110 | 996,921 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 38,329 | 47,449 | 45,795 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 418,172 | 404,975 | 369,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total average liabilities and shareholders’ equity | $ | 3,695,982 | $ | 3,646,566 | $ | 3,528,337 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income and rate earned on average earning assets | $ | 48,228 | 5.71 | % | $ | 47,996 | 5.64 | % | $ | 45,486 | 5.65 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense and interest cost related to average interest-bearing liabilities | 11,889 | 2.20 | % | 11,909 | 2.24 | % | 12,956 | 2.48 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income and net interest margin (4) | $ | 36,339 | 4.30 | % | $ | 36,087 | 4.24 | % | $ | 32,530 | 4.04 | % | ||||||||||||||||||||||||||||||||||||||||||||
(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $336, $339, and $348 at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
(2) Loan interest income includes net loan (costs) fees of $589, $29, and $99 at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Loan interest income includes an accretion on loan marks of $2,253,000, $2,587,000, and $3,339,000 at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
(3) Average loans do not include non-accrual loans but do include interest income recovered from previously charged off loans.
(4) Net interest margin is computed by dividing net interest income by total average interest-earning assets.
CONTACTS: Investor Contact: Media Contact:
Shannon Livingston Debbie Nalchajian-Cohen
Executive Vice President, Chief Financial Officer Public Relations
Community West Bancshares 559-222-1322
916-235-4617
FAQ
What were the key profitability ratios for CWBC in the quarter ended March 31, 2026?
For Q1 2026, Community West Bancshares reported a return on average assets of 1.24% and a return on average equity of 10.99%. On a pre-tax, pre-provision non-GAAP basis, ROAA was 1.71% and ROAE was 15.12%, indicating solid underlying profitability.
What are CWBC’s capital ratios and balance sheet strength as of March 31, 2026?
As of March 31, 2026, Community West Bancshares reported a Tier 1 leverage ratio of 9.94%, Common Equity Tier 1 of 11.84%, and total risk-based capital of 14.24%. Tangible common equity was $314.36 million, with tangible book value per share of $16.39.
How did credit quality and non-performing assets look for CWBC in Q1 2026?
The allowance for credit losses on loans was $30.23 million, or 1.19% of total loans, with net recoveries of $37,000. However, non-performing assets increased to $22.997 million (0.62% of assets), mainly from two collateral-dependent loans moving into non-accrual status.