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Community West Bancshares Reports Earnings Results for the Quarter Ended September 30, 2026, and Quarterly Dividend

By Business Wire | October 22, 2026, 4:00 PM

FRESNO, Calif.--(BUSINESS WIRE)--#cwbc--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 $8,066,000, and diluted earnings per share of $0.30 for the three months ended September 30, 2026, compared to net income of $10,873,000 and $0.57 per diluted common share for the three months ended September 30, 2025. The Company declared a $0.12 per common share cash dividend, payable on November 20, 2026 to shareholders of record as of November 6, 2026.



“The strength of our Company begins with the relationships our team builds every day,” said James J. Kim, CEO and President of the Company and Bank. “During the third quarter, that work translated into strong core deposit growth and a stronger liquidity position. Our bankers welcomed new clients throughout our Central California territory and deepened existing client relationships while continuing the work of a newly combined organization.”

“As we complete our second full quarter following the United Security Bancshares merger, I am encouraged by the commitment of our team and the confidence our clients place in us. Their consistent support provides a strong foundation as we focus on serving our communities and delivering long-term value for our shareholders.”

FINANCIAL HIGHLIGHTS

  • On April 1, 2026, the Company completed its previously announced merger (“Merger”) with 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 entity.
  • Net income during the third quarter increased to $8.07 million, or $0.30 per diluted common share, compared to net income of $2.70 million and $0.10 per diluted common share, respectively, in the second quarter of 2026.
  • The Company recorded a provision for credit losses of $578,000 during the quarter ended September 30, 2026, as compared to $5,635,000 during the trailing quarter. The current quarter provision is attributed to a provision for loan losses totaling $588,000 and a provision to the reserve for unfunded commitments of $89,000, partially offset by a credit to the reserve for held-to-maturity securities of $99,000.
  • Gross loans increased by $19.1 million or 0.54% for the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026 and increased $1.0 billion or 40.22% year-to-date. The fair value of loans acquired from USB was $877.8 million as of April 1, 2026.
  • Total deposits increased by $101.0 million or 2.45% for the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026 and $1.1 billion or 36.35% year-to-date. Total deposits acquired as a result of the Merger were $1.1 billion as of April 1, 2026. Brokered deposits decreased by $107.5 million or 24.53% for the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026 and decreased $112.8 million or 25.45% year-to-date. The decrease in brokered deposits was a result of the Company’s strengthened liquidity position from strong core deposit growth, which reduced the need for brokered deposit funding during the period. Excluding the quarter-to-date decrease of $107.5 million in brokered deposits, total deposits increased by $208.5 million or 5.66% relative to the quarter ended June 30, 2026.
  • Total cost of deposits decreased to 1.27% for the quarter ended September 30, 2026 compared to 1.31% for the quarter ended June 30, 2026, and decreased from 1.39% for the quarter ended December 31, 2025.
  • Average non-interest bearing demand deposits as a percentage of total average deposits totaled 34.82% and 34.14% for the quarters ended September 30, 2026 and June 30, 2026, respectively.
  • Net interest margin (calculated on a fully tax equivalent basis) increased to 4.65% for the quarter ended September 30, 2026, from 4.56% for the quarter ended June 30, 2026.
  • Return on average assets was 0.65% for the quarter ended September 30, 2026 as compared to 0.22% and 1.21% for the quarters ended June 30, 2026 and September 30, 2025, respectively. Return on average assets, excluding the non-core items of merger expenses, expense incurred as a result of a one-time legal settlement, and net loss on sales/calls of securities, was 1.41% for the quarter ended September 30, 2026 as compared to 1.00% and 1.21% for the quarters ended June 30, 2026 and September 30, 2025, respectively. See non-GAAP disclosures for more information.
  • Return on average equity was 5.27% for the quarter ended September 30, 2026 as compared to 1.77% and 11.25% for the quarters ended June 30, 2026 and September 30, 2025, respectively. Return on average equity, excluding the non-core items of merger expenses, expense incurred as a result of a one-time legal settlement, and net loss on sales/calls of securities, was 11.61% for the quarter ended September 30, 2026 as compared to 8.10% and 11.27% for the quarters ended June 30, 2026 and September 30, 2025, respectively. See non-GAAP disclosures for more information.
  • Capital positions remained strong at September 30, 2026 with a 9.69% Tier 1 Leverage Ratio; a 11.14% Common Equity Tier 1 Ratio; a 11.26% Tier 1 Risk-Based Capital Ratio; and a 13.28% Total Risk-Based Capital Ratio.

“The third quarter financial results reflect organic growth in loans and deposits, a lower cost of deposits, and our tenth consecutive quarter of net interest margin expansion,” said Shannon Livingston, Executive Vice President and Chief Financial Officer. “Strong core deposit growth has strengthened the Company’s funding profile, a direct result of our team’s work to retain and build client relationships.”

“While net income increased as compared with the prior quarter, we look forward to moving beyond merger-related expenses and entering a more normalized fourth quarter. We remain focused on disciplined balance sheet management and translating the earnings capacity of the Company into long-term performance.”

Results of Operations

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

(In thousands, except share and per-share amounts)

 

2026

 

2026

 

2025

 

2026

 

2025

Net interest income before provision for credit losses

 

$

53,344

 

$

50,912

 

 

$

34,944

 

$

140,260

 

$

100,431

Provision for credit losses

 

 

578

 

 

5,635

 

 

 

667

 

 

6,303

 

 

3,239

Net interest income after provision for credit losses

 

 

52,766

 

 

45,277

 

 

 

34,277

 

 

133,957

 

 

97,192

Total non-interest income

 

 

4,680

 

 

(1,970

)

 

 

2,966

 

 

5,497

 

 

7,941

Total non-interest expenses

 

 

46,168

 

 

39,143

 

 

 

22,167

 

 

108,298

 

 

67,934

Income before provision for income taxes

 

 

11,278

 

 

4,164

 

 

 

15,076

 

 

31,156

 

 

37,199

Provision for income taxes

 

 

3,212

 

 

1,469

 

 

 

4,203

 

 

8,906

 

 

10,201

Net income

 

$

8,066

 

$

2,695

 

 

$

10,873

 

$

22,250

 

$

26,998

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.

Reconciliation of GAAP and Non-GAAP Financial Measures

 

 

For the Three Months Ended

 

For the Nine Months Ended

(In thousands, except share and per-share amounts)

 

September 30,
2026

 

June 30,
2026

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ADJUSTED FOR NON-CORE ITEMS

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

8,066

 

 

$

2,695

 

 

$

10,873

 

 

$

22,250

 

 

$

26,998

 

Merger and conversion related costs:

 

 

 

 

 

 

 

 

 

 

Personnel and severance

 

 

1,825

 

 

 

4,824

 

 

 

—

 

 

 

6,650

 

 

 

—

 

Professional services

 

 

142

 

 

 

2,361

 

 

 

—

 

 

 

2,871

 

 

 

278

 

Data processing and technology

 

 

3,185

 

 

 

502

 

 

 

—

 

 

 

3,687

 

 

 

—

 

Other

 

 

2,014

 

 

 

60

 

 

 

—

 

 

 

1,994

 

 

 

—

 

Total merger and conversion related costs

 

 

7,166

 

 

 

7,747

 

 

 

—

 

 

 

15,202

 

 

 

278

 

Loss on sales/calls of investment securities

 

 

19

 

 

 

5,899

 

 

 

26

 

 

 

5,918

 

 

 

41

 

Legal settlement

 

 

6,615

 

 

 

—

 

 

 

—

 

 

 

6,615

 

 

 

—

 

Income tax impact of non-core items (1)

 

 

(4,079

)

 

 

(4,034

)

 

 

(8

)

 

 

(8,198

)

 

 

(94

)

Comparable net income (non-GAAP)

 

$

17,787

 

 

$

12,307

 

 

$

10,891

 

 

$

41,787

 

 

$

27,223

 

DILUTED EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares

 

 

27,144,648

 

 

 

27,108,920

 

 

 

19,093,544

 

 

 

24,493,822

 

 

 

19,051,291

 

Diluted earnings per share (GAAP)

 

$

0.30

 

 

$

0.10

 

 

$

0.57

 

 

$

0.91

 

 

$

1.42

 

Comparable diluted earnings per share (non-GAAP)

 

$

0.66

 

 

$

0.45

 

 

$

0.57

 

 

$

1.71

 

 

$

1.43

 

RETURN ON AVERAGE ASSETS (Annualized)

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

5,051,226

 

 

$

4,927,433

 

 

$

3,595,359

 

 

$

4,563,179

 

 

$

3,559,252

 

Return on average assets (GAAP)

 

 

0.65

%

 

 

0.22

%

 

 

1.21

%

 

 

0.65

%

 

 

1.01

%

Impact of non-core items

 

 

0.76

%

 

 

0.78

%

 

 

—

%

 

 

0.57

%

 

 

0.01

%

Comparable return on average assets (non-GAAP)

 

 

1.41

%

 

 

1.00

%

 

 

1.21

%

 

 

1.22

%

 

 

1.02

%

RETURN ON AVERAGE EQUITY (Annualized)

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

 

$

612,710

 

 

$

607,758

 

 

$

386,500

 

 

$

546,927

 

 

$

378,037

 

Return on average equity (GAAP)

 

 

5.27

%

 

 

1.77

%

 

 

11.25

%

 

 

5.42

%

 

 

9.52

%

Impact of non-core items

 

 

6.34

%

 

 

6.33

%

 

 

0.02

%

 

 

4.76

%

 

 

0.08

%

Comparable return on average equity (non-GAAP)

 

 

11.61

%

 

 

8.10

%

 

 

11.27

%

 

 

10.18

%

 

 

9.60

%

EFFICIENCY RATIO

 

 

 

 

 

 

 

 

 

 

Non-interest expense (GAAP)

 

$

46,168

 

 

$

39,143

 

 

$

22,167

 

 

$

108,298

 

 

$

67,934

 

Non-core expenses

 

 

(13,781

)

 

 

(7,747

)

 

 

—

 

 

 

(21,817

)

 

 

(278

)

Comparable non-interest expense (non-GAAP)

 

 

32,387

 

 

 

31,396

 

 

 

22,167

 

 

 

86,481

 

 

 

67,656

 

Net interest income (GAAP)

 

 

53,344

 

 

 

50,912

 

 

 

34,944

 

 

 

140,260

 

 

 

100,431

 

Non-interest income (GAAP)

 

 

4,680

 

 

 

(1,970

)

 

 

2,966

 

 

 

5,497

 

 

 

7,941

 

Loss on sales/calls of investment securities

 

 

19

 

 

 

5,899

 

 

 

26

 

 

 

5,918

 

 

 

41

 

Comparable non-interest income (non-GAAP)

 

$

4,699

 

 

$

3,929

 

 

$

2,992

 

 

$

11,415

 

 

$

7,982

 

Efficiency ratio (GAAP)

 

 

79.57

%

 

 

79.98

%

 

 

58.47

%

 

 

74.30

%

 

 

62.69

%

Comparable efficiency ratio (non-GAAP)

 

 

55.80

%

 

 

57.25

%

 

 

58.43

%

 

 

57.02

%

 

 

62.41

%

(1) 

 

Calculated at statutory tax rate of 29.56%.

 

 

Three months ended

 

Nine months ended

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

PRE-TAX PRE-PROVISION RETURN ON AVERAGE ASSETS OR EQUITY

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

8,066

 

 

$

2,695

 

 

$

10,873

 

 

$

22,250

 

 

$

26,998

 

Exclude provision for income taxes

 

 

3,212

 

 

 

1,469

 

 

 

4,203

 

 

 

8,906

 

 

 

10,201

 

Exclude provision for credit losses

 

 

578

 

 

 

5,635

 

 

 

667

 

 

 

6,303

 

 

 

3,239

 

Net income before income tax and provision expense (Non-GAAP)

 

$

11,856

 

 

$

9,799

 

 

$

15,743

 

 

$

37,459

 

 

$

40,438

 

 

 

 

 

 

 

 

 

 

 

 

Net income excluding non-core items (Non-GAAP)

 

 

17,787

 

 

 

12,307

 

 

 

10,891

 

 

 

41,787

 

 

 

27,223

 

Exclude provision for income taxes (Non-GAAP) (1)

 

 

7,291

 

 

 

5,503

 

 

 

4,211

 

 

 

17,104

 

 

 

10,295

 

Exclude provision for credit losses

 

 

578

 

 

 

5,635

 

 

 

667

 

 

 

6,303

 

 

 

3,239

 

Net income excluding non-core items before income tax and provision expense (Non-GAAP)

 

$

25,656

 

 

$

23,445

 

 

$

15,769

 

 

$

65,194

 

 

$

40,757

 

 

 

 

 

 

 

 

 

 

 

 

RETURN ON AVERAGE ASSETS (Annualized)

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

5,051,226

 

 

$

4,927,433

 

 

$

3,595,359

 

 

$

4,563,179

 

 

$

3,559,252

 

Return on average assets (GAAP)

 

 

0.65

%

 

 

0.22

%

 

 

1.21

%

 

 

0.65

%

 

 

1.01

%

Pre-tax pre-provision return on average assets (Non-GAAP)

 

 

0.94

%

 

 

0.80

%

 

 

1.75

%

 

 

1.09

%

 

 

1.51

%

Pre-tax pre-provision excluding non-core items return on average assets (Non-GAAP)

 

 

2.03

%

 

 

1.90

%

 

 

1.75

%

 

 

1.90

%

 

 

1.53

%

 

 

 

 

 

 

 

 

 

 

 

RETURN ON AVERAGE EQUITY (Annualized)

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

 

$

612,710

 

 

$

607,758

 

 

$

386,500

 

 

$

546,927

 

 

$

378,037

 

Return on average equity (GAAP)

 

 

5.27

%

 

 

1.77

%

 

 

11.25

%

 

 

5.42

%

 

 

9.52

%

Pre-tax pre-provision return on average equity (Non-GAAP)

 

 

7.74

%

 

 

6.45

%

 

 

16.29

%

 

 

9.13

%

 

 

14.26

%

Pre-tax pre-provision excluding non-core items return on average equity (Non-GAAP)

 

 

16.75

%

 

 

15.43

%

 

 

16.32

%

 

 

15.89

%

 

 

14.37

%

(1) 

 

Calculated as GAAP provision for income taxes plus income tax impact of non-core items at statutory tax rate of 29.56%.

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

(Dollars in thousands)

 

2026

 

2026

 

2026

 

2025

 

2025

TANGIBLE COMMON EQUITY

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity (GAAP)

 

$

602,186

 

$

607,820

 

$

419,203

 

$

409,588

 

$

397,576

Exclude goodwill

 

 

155,088

 

 

154,600

 

 

96,828

 

 

96,828

 

 

96,828

Exclude other intangibles assets

 

 

30,849

 

 

32,723

 

 

8,015

 

 

8,266

 

 

8,516

Tangible common equity (Non-GAAP)

 

$

416,249

 

$

420,497

 

$

314,360

 

$

304,494

 

$

292,232

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE COMMON EQUITY PER SHARE

 

 

 

 

 

 

 

 

 

 

Tangible shareholders’ equity (Non-GAAP)

 

$

416,249

 

$

420,497

 

$

314,360

 

$

304,494

 

$

292,232

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

 

27,134,636

 

 

27,131,078

 

 

19,185,275

 

 

19,163,452

 

 

19,138,677

 

 

 

 

 

 

 

 

 

 

 

Common shareholders’ equity (book value) per share (GAAP)

 

$

22.19

 

$

22.40

 

$

21.85

 

$

21.37

 

$

20.77

Tangible common shareholders’ equity (tangible book value) per share (Non-GAAP)

 

$

15.34

 

$

15.50

 

$

16.39

 

$

15.89

 

$

15.27

For the quarter ended September 30, 2026, the Company reported unaudited consolidated net income of $8,066,000 and diluted earnings per common share of $0.30, compared to consolidated net income of $2,695,000 and $0.10 per fully diluted share for the trailing quarter, and consolidated net income of $10,873,000 and $0.57 per diluted share for the same period in 2025. The Company's earnings during the quarter were impacted from merger expenses and an expense incurred as a result of a one-time legal settlement as compared to the prior quarter, partially offset by a lower loan loss provision as compared to the quarter.

For the nine months ended September 30, 2026, the Company reported unaudited consolidated net income of $22,250,000 and diluted earnings per common share of $0.91, compared to consolidated net income of $26,998,000 and $1.42 per diluted share for the same period in 2025. The net income for the period decreased as compared to the prior year due to an increase in net realized losses on sales and calls of investment securities of $5,877,000, expense incurred as a result of a one-time legal settlement of $6,615,000, an increase in the provision for credit losses of $3,064,000, and an increase in merger expenses of $14,924,000.

Annualized return on average assets (ROAA) was 0.65% for the quarter ended September 30, 2026 compared to 1.21% for the same period in 2025. Annualized return on average equity (ROAE) for the quarter ended September 30, 2026 was 5.27%, compared to 11.25% for the same period of 2025. Annualized return on average assets (ROAA) excluding non-core items (Non-GAAP) was 1.41% for the quarter ended September 30, 2026 compared to 1.21% for the same period in 2025. Annualized return on average equity (ROAE) excluding non-core items (Non-GAAP) for the quarter ended September 30, 2026 was 11.61%, compared to 11.27% for the same period of 2025.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.25% for the quarter ended September 30, 2026, compared to 2.96% for the quarter ended September 30, 2025 and 3.05% for the quarter ended June 30, 2026. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.05% for the nine months ended September 30, 2026, compared to 2.98% for the nine months ended September 30, 2025.

Total average loans, including non-accrual loans, increased by $1,158,515,000 to $3,575,670,000 for the quarter ended September 30, 2026, from $2,417,155,000 for the quarter ended September 30, 2025 and increased by $73,558,000 from $3,502,112,000 for the quarter ended June 30, 2026. The year over year increase was due to the completed Merger as of April 1, 2026 combined with organic loan growth throughout the Company’s footprint. The effective yield on average loans was 6.73% for the quarter ended September 30, 2026, compared to 6.65% and 6.76% for the quarters ended September 30, 2025 and June 30, 2026, respectively. Total average loans increased by $822,314,000 to $3,190,138,000 for the nine months ended September 30, 2026, from $2,367,824,000 for the nine months ended September 30, 2025. The effective yield on average loans was 6.73% for the nine months ended September 30, 2026, compared to 6.68% for the nine months ended September 30, 2025.

The Company’s net interest margin (fully tax equivalent basis) was 4.65% for the quarter ended September 30, 2026, compared to 4.20% for the quarter ended September 30, 2025 and 4.56% for the quarter ended June 30, 2026. Net interest income, before provision for credit losses, increased by $18,400,000 or 52.66%, to $53,344,000 for the third quarter of 2026, compared to $34,944,000 for the same period in 2025. In addition to the increase in average loans due to the Merger with USB and organic loan growth, the Company's yield on interest earning assets has increased from 5.62% for the quarter ended September 30, 2025 to 5.94% for the quarter ended September 30, 2026. Additionally, the Company benefited from a decrease in the cost on interest-bearing liabilities, in which the cost of total deposits decreased to 1.27% from 1.39% when comparing the quarters ended September 30, 2026 and 2025. The decrease in the cost of deposits is primarily attributed to the addition of the USB deposit portfolio which carried an overall lower interest cost. This decrease was further driven by strong organic deposit growth that allowed the maturation and payoff of brokered deposits during the quarter. Net interest margin during the three months ended September 30, 2026 and 2025 and June 30, 2026 benefited by approximately 38 basis points ($4,391,000), 28 basis points ($2,328,000), and 44 basis points ($4,960,000), respectively, from the net accretion of fair value marks.

The Company’s net interest margin (fully tax equivalent basis) was 4.53% for the nine months ended September 30, 2026, compared to 4.12% for the nine months ended September 30, 2025. Net interest income, before provision for credit losses, increased $39,829,000 or 39.66%, to $140,260,000 for the nine months ended September 30, 2026, compared to $100,431,000 for the same period in 2025. The accretion on loan marks of acquired loans increased interest income by $11,914,000 and $8,866,000 during the nine months ended September 30, 2026 and 2025, respectively. Net interest margin during the nine months ended September 30, 2026 and 2025 benefited by approximately 37 basis points ($11,604,000) and 26 basis points ($6,443,000), respectively, from the net accretion of the fair value marks.

Non-Interest Income - The following tables present the key components of non-interest income for the periods indicated:

 

 

Three months ended

 

 

 

 

 

 

September 30,

 

June 30,

 

 

 

 

(Dollars in thousands)

 

2026

 

2026

 

 

$ Change

 

% Change

Gain on sale of loans

 

$

1,677

 

 

$

182

 

 

$

1,495

 

 

821.4

%

Interchange fees

 

 

785

 

 

 

836

 

 

 

(51

)

 

(6.1

)%

Service charges

 

 

673

 

 

 

1,038

 

 

 

(365

)

 

(35.2

)%

Appreciation in cash surrender value of bank owned life insurance

 

 

530

 

 

 

522

 

 

 

8

 

 

1.5

%

Federal Home Loan Bank dividends

 

 

478

 

 

 

217

 

 

 

261

 

 

120.3

%

Loan placement fees

 

 

191

 

 

 

299

 

 

 

(108

)

 

(36.1

)%

Net realized losses on sales and calls of investment securities

 

 

(19

)

 

 

(5,899

)

 

 

5,880

 

 

(99.7

)%

Other income

 

 

365

 

 

 

835

 

 

 

(470

)

 

(56.3

)%

Total non-interest income

 

$

4,680

 

 

$

(1,970

)

 

$

6,650

 

 

(337.6

)%

 

 

Three months ended

 

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

(Dollars in thousands)

 

2026

 

2025

 

$ Change

 

% Change

Gain on sale of loans

 

$

1,677

 

 

$

107

 

 

$

1,570

 

 

1467.3

%

Interchange fees

 

 

785

 

 

 

493

 

 

 

292

 

 

59.2

%

Service charges

 

 

673

 

 

 

519

 

 

 

154

 

 

29.7

%

Appreciation in cash surrender value of bank owned life insurance

 

 

530

 

 

 

379

 

 

 

151

 

 

39.8

%

Federal Home Loan Bank dividends

 

 

478

 

 

 

240

 

 

 

238

 

 

99.2

%

Loan placement fees

 

 

191

 

 

 

215

 

 

 

(24

)

 

(11.2

)%

Gain on proceeds from death benefits

 

 

—

 

 

 

198

 

 

 

(198

)

 

(100.0

)%

Net realized losses on sales and calls of investment securities

 

 

(19

)

 

 

(26

)

 

 

7

 

 

(26.9

)%

Other income

 

 

365

 

 

 

841

 

 

 

(476

)

 

(56.6

)%

Total non-interest income

 

$

4,680

 

 

$

2,966

 

 

$

1,714

 

 

57.8

%

 

 

Nine months ended

 

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

(Dollars in thousands)

 

2026

 

2025

 

$ Change

 

% Change

Service charges

 

$

2,229

 

 

$

1,526

 

 

$

703

 

 

46.1

%

Interchange fees

 

 

2,085

 

 

 

1,501

 

 

 

584

 

 

38.9

%

Gain on sale of loans

 

 

1,891

 

 

 

343

 

 

 

1,548

 

 

451.3

%

Appreciation in cash surrender value of bank owned life insurance

 

 

1,430

 

 

 

1,117

 

 

 

313

 

 

28.0

%

Federal Home Loan Bank dividends

 

 

1,251

 

 

 

718

 

 

 

533

 

 

74.2

%

Loan placement fees

 

 

636

 

 

 

632

 

 

 

4

 

 

0.6

%

Gain on proceeds from death benefits

 

 

—

 

 

 

198

 

 

 

(198

)

 

(100.0

)%

Net realized losses on sales and calls of investment securities

 

 

(5,918

)

 

 

(41

)

 

 

(5,877

)

 

14334.1

%

Other income

 

 

1,893

 

 

 

1,947

 

 

 

(54

)

 

(2.8

)%

Total non-interest income

 

$

5,497

 

 

$

7,941

 

 

$

(2,444

)

 

(30.8

)%

The increase in non-interest income quarter-to-date was primarily due to an increase in gain on sale of loans and minimal realized losses in the investment portfolio. The decrease in non-interest income year-to-date as compared to the prior year-to-date period was due to the net realized losses on sales within the investment portfolio. The investment sales proceeds were reinvested into higher yielding investment securities during the end of the second quarter 2026 and are accretive to income beginning in the third quarter. Partially offsetting these losses for the year-to-date period were increases in service charges, interchange fees, gain on sale of loans, bank-owned life insurance, and FHLB dividends, all of which benefited from the expanded client and asset base resulting from the Merger with USB completed on April 1, 2026.

Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:

 

 

Three months ended

 

 

 

 

 

 

September 30,

 

June 30,

 

 

 

 

(Dollars in thousands)

 

2026

 

2026

 

$ Change

 

% Change

Salaries and employee benefits

 

$

16,667

 

$

16,318

 

$

349

 

 

2.1

%

Merger and acquisition expense

 

 

7,167

 

 

7,746

 

 

(579

)

 

(7.5

)%

Legal settlement

 

 

6,615

 

 

—

 

 

6,615

 

 

—

%

Occupancy and equipment

 

 

3,958

 

 

3,803

 

 

155

 

 

4.1

%

Information technology

 

 

2,675

 

 

2,658

 

 

17

 

 

0.6

%

Amortization of core deposit intangibles

 

 

1,873

 

 

1,873

 

 

—

 

 

—

%

Data processing expense

 

 

1,128

 

 

1,218

 

 

(90

)

 

(7.4

)%

Professional services

 

 

714

 

 

840

 

 

(126

)

 

(15.0

)%

Regulatory assessments

 

 

708

 

 

706

 

 

2

 

 

0.3

%

ATM/Debit card expenses

 

 

635

 

 

677

 

 

(42

)

 

(6.2

)%

Loan related expenses

 

 

310

 

 

208

 

 

102

 

 

49.0

%

Directors’ expenses

 

 

231

 

 

261

 

 

(30

)

 

(11.5

)%

Advertising

 

 

218

 

 

185

 

 

33

 

 

17.8

%

Personnel other

 

 

64

 

 

25

 

 

39

 

 

156.0

%

Other expense

 

 

3,205

 

 

2,625

 

 

580

 

 

22.1

%

Total non-interest expenses

 

$

46,168

 

$

39,143

 

$

7,025

 

 

17.9

%

 

 

Three months ended

 

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

(Dollars in thousands)

 

2026

 

2025

 

$ Change

 

% Change

Salaries and employee benefits

 

$

16,667

 

$

12,525

 

$

4,142

 

 

33.1

%

Merger and acquisition expense

 

 

7,167

 

 

—

 

 

7,167

 

 

—

%

Legal settlement

 

 

6,615

 

 

—

 

 

6,615

 

 

—

%

Occupancy and equipment

 

 

3,958

 

 

2,933

 

 

1,025

 

 

34.9

%

Information technology

 

 

2,675

 

 

1,711

 

 

964

 

 

56.3

%

Amortization of core deposit intangibles

 

 

1,873

 

 

250

 

 

1,623

 

 

649.2

%

Data processing expense

 

 

1,128

 

 

748

 

 

380

 

 

50.8

%

Professional services

 

 

714

 

 

447

 

 

267

 

 

59.7

%

Regulatory assessments

 

 

708

 

 

490

 

 

218

 

 

44.5

%

ATM/Debit card expenses

 

 

635

 

 

359

 

 

276

 

 

76.9

%

Loan related expenses

 

 

310

 

 

252

 

 

58

 

 

23.0

%

Directors’ expenses

 

 

231

 

 

234

 

 

(3

)

 

(1.3

)%

Advertising

 

 

218

 

 

185

 

 

33

 

 

17.8

%

Personnel other

 

 

64

 

 

19

 

 

45

 

 

236.8

%

Other expense

 

 

3,205

 

 

2,014

 

 

1,191

 

 

59.1

%

Total non-interest expenses

 

$

46,168

 

$

22,167

 

$

24,001

 

 

108.3

%


Contacts

Investor Contact:
Shannon Livingston
Executive Vice President, Chief Financial Officer
Community West Bancshares
916-235-4617

Media Contact:
Debbie Nalchajian-Cohen
Public Relations
559-222-1322


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