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
“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,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
| ||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
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,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
| ||||||||||
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 | % |
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
| Oct-22 | |
| Oct-22 | |
| Jul-23 | |
| Jul-23 | |
| Apr-23 | |
| Apr-23 | |
| Mar-16 | |
| Mar-16 | |
| Mar-03 | |
| Feb-20 | |
| Feb-20 | |
| Feb-17 | |
| Feb-03 | |
| Jan-29 | |
| Jan-28 |
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