Community West Bancshares Reports Earnings Results for the Quarter Ended December 31, 2024, and Quarterly Dividend

Rhea-AI Summary

Community West Bancshares (NASDAQ: CWBC) reported unaudited consolidated net income of $6,895,000 and diluted earnings per common share of $0.36 for Q4 2024. This compares to $5,893,000 and $0.50 per diluted share in Q4 2023.

The company completed a significant merger on April 1, 2024, when Central Valley Community Bancorp merged with Community West Bancshares. Subsequently, Community West Bank merged with Central Valley Community Bank, with the latter being the surviving institution. Following these mergers, both entities adopted the Community West name.

Headquartered in Fresno, California, Community West Bank operates throughout Central California, offering services including Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking and Cash Management.

Positive

• Net income increased to $6.89M in Q4 2024 from $5.89M in Q4 2023
• Successful completion of merger with Central Valley Community Bancorp

Negative

• Diluted EPS decreased to $0.36 in Q4 2024 from $0.50 in Q4 2023

Insights

Financial Analyst

The Q4 2024 results from Community West Bancshares reveal a complex financial picture that requires careful analysis. The 17% year-over-year increase in net income to $6.895 million demonstrates solid fundamental growth, but the decline in EPS from $0.50 to $0.36 reflects the dilutive impact of the April 2024 merger with Central Valley Community Bancorp.

The merger has transformed the bank's operational landscape, particularly in Central California. The consolidation has created a stronger regional banking presence, enhancing the bank's competitive position in key markets including commercial lending, agribusiness and SBA lending. This diversification of revenue streams and expanded geographical footprint provides better risk distribution and growth opportunities.

The higher absolute earnings suggest successful post-merger integration and potential cost synergies being realized. However, investors should note that the 28% decline in EPS despite higher net income indicates significant share dilution from the merger. This dilution is a common short-term effect of merger transactions and the focus should be on whether the combined entity can leverage its larger scale to drive future earnings growth that could eventually offset this dilution.

The bank's strategic focus on diverse lending segments, including commercial, agribusiness and SBA lending, positions it well in the current banking environment. The expansion of private banking and cash management services also suggests a push toward fee-based income streams, which could help stabilize earnings in different rate environments.

Looking forward, key metrics to monitor will include:

• Cost synergy realization from the merger
• Loan portfolio quality across the expanded footprint
• Integration success of different banking platforms
• Market share gains in key segments
• Deposit cost management in the current rate environment

FRESNO, Calif.--(BUSINESS WIRE)-- 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 $6,895,000, and diluted earnings per common share of $0.36 for the three months ended December 31, 2024, compared to $5,893,000 and $0.50 per diluted common share for the three months ended December 31, 2023. For the full release, please visit one of the following: Community West Bank Newsroom https://www.communitywestbank.com/about/newsroom or CWBC Investor Relations https://ir.cvcb.com/news-market-information/press-releases/default.aspx.

Company Overview

Effective on April 1, 2024, Central Valley Community Bancorp completed its merger transaction with Community West Bancshares. Shortly thereafter Community West Bank, a wholly owned subsidiary of Community West Bancshares, merged with and into Central Valley Community Bank, a wholly-owned subsidiary of Central Valley Community Bancorp, with Central Valley Community Bank being the surviving banking institution. Effective with these mergers, the corporate names of Central Valley Community Bancorp and Central Valley Community Bank were changed to Community West Bancshares and Community West Bank, respectively.

Community West Bancshares (“Company”) (NASDAQ: CWBC) and its wholly owned subsidiary, Community West Bank (“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, the 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 Cash Management.

Members of the Company and Bank Board of Directors are: Daniel J. Doyle (Chairman), Robert H. Bartlein (Vice Chairman), James J. Kim (CEO of the Company and President and CEO of the Bank), Martin E. Plourd (President of the Company), Suzanne M. Chadwick, Daniel N. Cunningham, Tom L. Dobyns, F.T. “Tommy” Elliott IV, Robert J. Flautt, James W. Lokey, Andriana D. Majarian, Steven D. McDonald, Dorothea D. Silva, William S. Smittcamp and Kirk B. Stovesand. Louis C. McMurray is Director Emeritus.

More information about Community West Bancshares and Community West Bank can be found at www.communitywestbank.com. Also, follow the Company on LinkedIn, X and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123899367/en/

Investor Contact:

Shannon Livingston

Executive Vice President, Chief Financial Officer

Community West Bancshares

916-235-4617

Media Contact:

Debbie Nalchajian-Cohen

Public Relations

Community West Bancshares

559-222-1322

Source: Community West Bancshares

FAQ

What was CWBC's net income for Q4 2024?

Community West Bancshares reported unaudited consolidated net income of $6,895,000 for Q4 2024.

How did CWBC's Q4 2024 earnings compare to Q4 2023?

While net income increased from $5,893,000 to $6,895,000, diluted EPS decreased from $0.50 to $0.36 per share.

When did the merger between Central Valley Community Bancorp and CWBC complete?

The merger was completed on April 1, 2024.

What banking services does Community West Bank (CWBC) offer?

Community West Bank offers Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking and Cash Management services.