Community West Bancshares Reports Earnings Results for the Quarter Ended September 30, 2024, and Quarterly Dividend

Rhea-AI Summary

Community West Bancshares (NASDAQ: CWBC) reported unaudited consolidated net income of $3,385,000 and diluted earnings per common share of $0.18 for Q3 2024, compared to $6,390,000 and $0.54 per diluted share in Q3 2023. The company completed its merger with Central Valley Community Bancorp on April 1, 2024, with Central Valley Community Bank merging into Community West Bank. The combined entity, headquartered in Fresno, California, operates full-service Banking Centers throughout Central California, offering various services including Commercial Lending, Agribusiness, SBA, and Mortgage services.

Positive

• Maintains profitability with $3.4M quarterly net income
• Successfully completed strategic merger with Central Valley Community Bancorp

Negative

• 47% decrease in net income from $6.4M in Q3 2023 to $3.4M in Q3 2024
• 66.7% decline in diluted EPS from $0.54 to $0.18 year-over-year

Insights

Financial Analyst

The Q3 2024 earnings report shows concerning performance with $3.385 million in net income, marking a significant 47% decline from $6.39 million in Q3 2023. Diluted EPS dropped to $0.18 from $0.54, representing a substantial deterioration in profitability. This decline comes after the April 2024 merger between Central Valley Community Bancorp and Community West Bancshares, suggesting potential integration challenges or market pressures affecting the combined entity's performance. The substantial earnings decline warrants careful monitoring of future quarters to determine if this is a temporary post-merger adjustment or indicates deeper operational issues.

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 $3,385,000, and diluted earnings per common share of $0.18 for the three months ended September 30, 2024, compared to $6,390,000 and $0.54 per diluted common share for the three months ended September 30, 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 and Director of the Bank), 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/20241024657395/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 Community West Bancshares (CWBC) earnings per share in Q3 2024?

Community West Bancshares reported diluted earnings per share of $0.18 for Q3 2024.

When did Community West Bancshares complete its merger with Central Valley Community Bancorp?

The merger was completed on April 1, 2024.

How much net income did CWBC report for Q3 2024?

Community West Bancshares reported unaudited consolidated net income of $3,385,000 for Q3 2024.

What was the year-over-year change in CWBC's Q3 net income?

Net income decreased from $6,390,000 in Q3 2023 to $3,385,000 in Q3 2024.