FOR IMMEDIATE RELEASE
COMMUNITY WEST BANCSHARES REPORTS EARNINGS RESULTS
FOR THE QUARTER ENDED JUNE 30, 2026,
AND QUARTERLY DIVIDEND
FRESNO, CALIFORNIA...July 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 $2,695,000, and diluted earnings per share of $0.10 for the three months ended June 30, 2026, compared to net income of $7,832,000 and $0.41 per diluted common share for the three months ended June 30, 2025. The Company declared a $0.12 per common share cash dividend, payable on August 21, 2026 to shareholders of record as of August 7, 2026.
"I am pleased to share that this quarter represents the first full quarter for the combined Company following the successful merger with United Security Bancshares and United Security Bank on April 1, 2026. Surpassing $5 billion in total assets marks an exciting milestone in Community West Bank's continued growth and reflects the strength of our expanded franchise," said James J. Kim, CEO and President of the Company and Bank.
"While the quarter included anticipated merger-related expenses associated with bringing our organizations together, the business combination is performing as expected, with early results exceeding our expectations in several key areas. The successful integration of our teams, clients, and operations, continues to reinforce the strength of our organization and our commitment to relationship banking. As we complete the final phase of integration, we remain focused on delivering an exceptional experience for our clients, supporting our communities, and creating 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, a wholly owned subsidiary of the Company, with the Bank continuing as the surviving entity.
- Net income during the second quarter decreased to $2.70 million, or $0.10 per diluted common share, compared to net income of $11.49 million and $0.60 per diluted common share, respectively, in the first quarter of 2026. The decrease in net income was due to an increase in non-recurring items: an increase in merger expenses of $7,458,000 and a net realized loss on sales and calls of investment securities of $5,899,000, in addition to an increase to the provision for credit losses of $5,545,000 as compared to the trailing quarter.
- The Company recorded a provision for credit losses of $5,635,000 during the quarter ended June 30, 2026, as compared to $90,000 during the trailing quarter. The current quarter provision is attributed to a provision for loan losses totaling $6,182,000, partially offset by a credit to the reserve for unfunded commitments of $492,000, and a credit to the reserve for held-to-maturity securities of $55,000. The provision for loan losses during the quarter ended June 30, 2026 was primarily due to an update of the Company’s peer group based on its larger asset size following the completion of the Merger and also from organic loan growth during the quarter.
- Gross loans increased by $992.7 million or 38.91% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and increased $1.0 billion or 39.47% year-to-date. The fair value of loans acquired from USB was $878.5 million as of April 1, 2026.
- Total deposits increased by $977.9 million or 31.13% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and $1.0 billion or 33.09% year-to-date. Total deposits acquired as a result of the Merger
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was $1.1 billion as of April 1, 2026. Brokered deposits decreased by $73.1 million or 14.30% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and decreased $80.5 million or 15.53% year-to-date.
- Total cost of deposits decreased to 1.31% for the quarter ended June 30, 2026 compared to 1.40% for the quarter ended March 31, 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 34.14% and 33.32% for the quarters ended June 30, 2026 and March 31, 2026, respectively.
- Net interest margin (calculated on a fully tax equivalent basis) increased to 4.56% for the quarter ended June 30, 2026, from 4.30% for the quarter ended March 31, 2026.
- Return on average assets was 0.22% for the quarter ended June 30, 2026 as compared to 1.24% and 0.88% for the quarters ended March 31, 2026 and June 30, 2025, respectively. Return on average assets, excluding the non-core items of merger expenses and net loss on sales/calls of securities, was 1.00% for the quarter ended June 30, 2026 as compared to 1.27% and 0.88% for the quarters ended March 31, 2026 and June 30, 2025, respectively. See non-GAAP disclosures for more information.
- Return on average equity was 1.77% for the quarter ended June 30, 2026 as compared to 10.99% and 8.30% for the quarters ended March 31, 2026 and June 30, 2025, respectively. Return on average equity, excluding the non-core items of merger expenses and net loss on sales/calls of securities, was 8.10% for the quarter ended June 30, 2026 as compared to 11.18% and 8.31% for the quarters ended March 31, 2026 and June 30, 2025, respectively. See non-GAAP disclosures for more information.
- Capital positions remained strong at June 30, 2026 with a 9.79% Tier 1 Leverage Ratio; a 11.41% Common Equity Tier 1 Ratio; a 11.53% Tier 1 Risk-Based Capital Ratio; and a 13.63% Total Risk-Based Capital Ratio.
"Second quarter 2026 results reflect several anticipated, non-recurring merger-related items, including integration expenses, the repositioning of a portion of the investment portfolio, and an increased provision for credit losses.
Importantly, the higher provision reflects the Company's larger balance sheet and reserve methodology associated with the expanded organization and peer group, rather than any broad trends of declining credit quality.” said Shannon Livingston, Executive Vice President and Chief Financial Officer.
“These strategic actions position the Company for stronger long-term performance. Excluding these anticipated one-time items, our core operating performance remained strong, demonstrating the strength and earnings capacity of the combined Company, while positioning the organization for future growth."
Results of Operations
| (In thousands, except share and per-share amounts) | Three months endedJune 30, 2026 | Three months endedMarch 31, 2026 | Three months endedJune 30, 2025 | Six months endedJune 30, 2026 | Six months endedJune 30, 2025 |
|---|---|---|---|---|---|
| Net interest income before provision for credit losses | $50,912 | $36,003 | $33,304 | $86,916 | $65,486 |
| Provision for credit losses | 5,635 | 90 | 2,613 | 5,725 | 2,572 |
| Net interest income after provision for credit losses | 45,277 | 35,913 | 30,691 | 81,191 | 62,914 |
| Total non-interest income | (1,970) | 2,788 | 2,364 | 817 | 4,975 |
| Total non-interest expenses | 39,143 | 22,987 | 22,296 | 62,130 | 45,766 |
| Income before provision for income taxes | 4,164 | 15,714 | 10,759 | 19,878 | 22,123 |
| Provision for income taxes | 1,469 | 4,225 | 2,927 | 5,694 | 5,998 |
| Net income | $2,695 | $11,489 | $7,832 | $14,184 | $16,125 |
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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
| (In thousands, except share and per-share amounts) | For the Three Months EndedJune 30, 2026 | For the Three Months EndedMarch 31, 2026 | For the Three Months EndedJune 30, 2025 | For the Six Months EndedJune 30, 2026 | For the Six Months EndedJune 30, 2025 |
|---|---|---|---|---|---|
| NET INCOME ADJUSTED FOR NON-CORE ITEMS | |||||
| Net income (GAAP) | $2,695 | $11,489 | $7,832 | $14,184 | $16,125 |
| Merger and conversion related costs: | |||||
| Personnel and severance | 4,824 | — | — | 4,824 | — |
| Professional services | 2,361 | 289 | — | 2,650 | 278 |
| Data processing and technology | 502 | — | — | 502 | — |
| Other | 60 | — | — | 60 | — |
| Total merger and conversion related costs | 7,747 | 289 | — | 8,036 | 278 |
| Loss on sales/calls of investment securities | 5,899 | — | 15 | 5,899 | 15 |
| Income tax impact of non-core items | (4,034) | (85) | (4) | (4,119) | (87) |
| Comparable net income (non-GAAP) | $12,307 | $11,693 | $7,843 | $24,000 | $16,331 |
| DILUTED EARNINGS PER SHARE | |||||
| Weighted average diluted shares | 27,108,920 | 19,137,134 | 19,042,750 | 23,145,947 | 19,028,425 |
| Diluted earnings per share (GAAP) | $0.10 | $0.60 | $0.41 | $0.61 | $0.85 |
| Comparable diluted earnings per share (non-GAAP) | $0.45 | $0.61 | $0.41 | $1.04 | $0.86 |
| RETURN ON AVERAGE ASSETS | |||||
| Average assets | $4,927,741 | $3,695,982 | $3,553,327 | $4,315,265 | $3,540,901 |
| Return on average assets (GAAP) | 0.22% | 1.24% | 0.88% | 0.66% | 0.91% |
| Impact of non-core items | 0.78% | 0.03% | — | 0.45% | 0.01% |
| Comparable return on average assets (non-GAAP) | 1.00% | 1.27% | 0.88% | 1.11% | 0.92% |
| RETURN ON AVERAGE EQUITY | |||||
| Average stockholders' equity | $608,065 | $418,172 | $377,413 | $513,645 | $373,735 |
| Return on average equity (GAAP) | 1.77% | 10.99% | 8.30% | 5.52% | 8.63% |
| Impact of non-core items | 6.33% | 0.19% | 0.01% | 3.82% | 0.11% |
| Comparable return on average equity (non-GAAP) | 8.10% | 11.18% | 8.31% | 9.34% | 8.74% |
| EFFICIENCY RATIO | |||||
| Non-interest expense (GAAP) | $39,143 | $22,987 | $22,296 | $62,130 | $45,766 |
| Merger-related non-interest expenses | (7,747) | (289) | — | (8,036) | (278) |
| Comparable non-interest expense (non-GAAP) | 31,396 | 22,698 | 22,296 | 54,094 | 45,488 |
| Net interest income (GAAP) | 50,912 | 36,003 | 33,304 | 86,916 | 65,486 |
| Non-interest income (GAAP) | (1,970) | 2,788 | 2,364 | 817 | 4,975 |
| Loss on sales/calls of investment securities | 5,899 | — | 15 | 5,899 | 15 |
| Comparable non-interest income (non-GAAP) | $3,929 | $2,788 | $2,379 | $6,716 | $4,990 |
| Efficiency ratio (GAAP) | 79.98% | 59.26% | 62.51% | 70.82% | 64.95% |
| Comparable efficiency ratio (non-GAAP) | 57.25% | 58.51% | 62.48% | 57.77% | 64.54% |
| (Dollars in thousands) | Three months endedJune 30, 2026 | Three months endedMarch 31, 2026 | Three months endedJune 30, 2025 | Six months endedJune 30, 2026 | Six months endedJune 30, 2025 |
|---|---|---|---|---|---|
| PRE-TAX PRE-PROVISION RETURN ON AVERAGE ASSETS OR EQUITY | |||||
| Net income (GAAP) | $2,695 | $11,489 | $7,832 | $14,184 | $16,125 |
| Exclude provision for income taxes | 1,469 | 4,225 | 2,927 | 5,694 | 5,998 |
| Exclude provision for credit losses | 5,635 | 90 | 2,613 | 5,725 | 2,572 |
| Net income before income tax and provision expense (Non-GAAP) | $9,799 | $15,804 | $13,372 | $25,603 | $24,695 |
| Net income excluding non-core items (Non-GAAP) | 12,307 | 11,693 | 7,843 | 24,000 | 16,331 |
| Exclude provision for income taxes (Non-GAAP) (1) | 5,503 | 4,310 | 2,931 | 9,813 | 6,085 |
| Exclude provision for credit losses | 5,635 | 90 | 2,613 | 5,725 | 2,572 |
| Net income excluding non-core items before income tax and provision expense (Non-GAAP) | $23,445 | $16,093 | $13,387 | $39,538 | $24,988 |
| RETURN ON AVERAGE ASSETS (Annualized) | |||||
| Average assets | $4,927,741 | $3,695,982 | $3,553,327 | $4,315,265 | $3,540,901 |
| Return on average assets (GAAP) | 0.22% | 1.24% | 0.88% | 0.66% | 0.91% |
| Pre-tax pre-provision return on average assets (Non-GAAP) | 0.80% | 1.71% | 1.51% | 1.19% | 1.39% |
| Pre-tax pre-provision excluding non-core items return on average assets (Non-GAAP) | 1.90% | 1.74% | 1.51% | 1.83% | 1.41% |
| RETURN ON AVERAGE EQUITY (Annualized) | |||||
| Average stockholders' equity | $608,065 | $418,172 | $377,413 | $513,645 | $373,735 |
| Return on average equity (GAAP) | 1.77% | 10.99% | 8.30% | 5.52% | 8.63% |
| Pre-tax pre-provision return on average equity (Non-GAAP) | 6.45% | 15.12% | 14.17% | 4.98% | 13.22% |
| Pre-tax pre-provision excluding non-core items return on average equity (Non-GAAP) | 15.42% | 15.39% | 14.19% | 15.40% | 13.37% |
| (1) Calculated as GAAP provision for income taxes plus income tax impact of non-core items at statutory tax rate of 29.56%. |
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
|---|---|---|---|---|---|
| TANGIBLE COMMON EQUITY | |||||
| Shareholders’ equity (GAAP) | $607,820 | $419,203 | $409,588 | $397,576 | $380,002 |
| Exclude goodwill | 155,249 | 96,828 | 96,828 | 96,828 | 96,828 |
| Exclude other intangibles assets | 32,723 | 8,015 | 8,266 | 8,516 | 8,767 |
| Tangible common equity (Non-GAAP) | $419,848 | $314,360 | $304,494 | $292,232 | $274,407 |
| TANGIBLE COMMON EQUITY PER SHARE | |||||
| Tangible shareholders’ equity (Non-GAAP) | $419,848 | $314,360 | $304,494 | $292,232 | $274,407 |
| Common shares outstanding at end of period | 27,131,078 | 19,185,275 | 19,163,452 | 19,138,677 | 19,130,508 |
| Common shareholders’ equity (book value) per share (GAAP) | $22.40 | $21.85 | $21.37 | $20.77 | $19.86 |
| Tangible common shareholders’ equity (tangible book value) per share (Non-GAAP) | $15.47 | $16.39 | $15.89 | $15.27 | $14.34 |
For the quarter ended June 30, 2026, the Company reported unaudited consolidated net income of $2,695,000 and diluted earnings per common share of $0.10, compared to consolidated net income of $11,489,000 and $0.60 per fully diluted share for the trailing quarter, and consolidated net income of $7,832,000 and $0.41 per diluted share for the same period in 2025. The Company's earnings during the quarter were impacted from merger expenses, a loss on sale of securities, and a higher provision for loan losses as compared to the prior quarter.
For the six months ended June 30, 2026, the Company reported unaudited consolidated net income of $14,184,000 and diluted earnings per common share of $0.61, compared to consolidated net income of $16,125,000 and $0.85 per diluted share for the same period in 2025. The net income for the period decreased as compared to the prior year due to net realized losses on sales and calls of investment securities of $5,899,000, an increase in the provision for credit losses of $3,153,000, and an increase in merger expenses of $7,746,000. The decrease in net income was partially offset by an increase in net interest income of $17,608,000 and a decrease in the provision for income taxes of $304,000.
Annualized return on average assets (ROAA) was 0.22% for the quarter ended June 30, 2026 compared to 0.88% for the same period in 2025. Annualized return on average equity (ROAE) for the quarter ended June 30, 2026 was 1.77%, compared to 8.30% for the same period of 2025. Annualized return on average assets (ROAA) (Non-GAAP) was 0.80% for the quarter ended June 30, 2026 compared to 1.51% for the same period in 2025. Annualized return on average equity (ROAE) (Non-GAAP) for the quarter ended June 30, 2026 was 6.45%, compared to 14.17% 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 3.05% for the quarter ended June 30, 2026, compared to 2.95% for the quarter ended June 30, 2025 and 2.83% for the quarter ended March 31, 2026. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.95% for the six months ended June 30, 2026, compared to 2.99% for the six months ended June 30, 2025.
Total average loans, including non-accrual loans, increased by $1,131,787,000 to $3,502,112,000 for the quarter ended June 30, 2026, from $2,370,325,000 for the quarter ended June 30, 2025 and increased by $958,458,000 from $2,543,654,000 for the quarter ended March 31, 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 6.76% for the quarter ended June 30, 2026, compared to 6.71% and 6.72% for the quarters ended June 30, 2025 and March 31, 2026, respectively. Total average loans increased by $662,010,000 to $3,008,254,000 for the six months ended June 30, 2026, from $2,346,244,000 for the six months ended June 30, 2025. The effective yield on average loans was 6.74% for the six months ended June 30, 2026, compared to 6.70% for the six months ended June 30, 2025.
The Company’s net interest margin (fully tax equivalent basis) was 4.56% for the quarter ended June 30, 2026, compared to 4.10% for the quarter ended June 30, 2025 and 4.30% for the quarter ended March 31, 2026. Net interest income, before provision for credit losses, increased by $17,608,000 or 52.87%, to $50,912,000 for the second quarter of 2026, compared to $33,304,000 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 5.65% for the quarter ended June 30, 2025 to 5.91% for the quarter ended June 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 1.31% from 1.43% when comparing the quarters ended June 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. Net interest margin during the three months ended June 30, 2026 and 2025 and March 31, 2026 benefited by approximately 44 basis points ($4,960,000), 31 basis points ($2,588,000), and 25 basis points ($2,098,000), respectively, from the net accretion of fair value marks.
The Company’s net interest margin (fully tax equivalent basis) was 4.45% for the six months ended June 30, 2026, compared to 4.07% for the six months ended June 30, 2025. Net interest income, before provision for credit losses, increased $21,430,000 or 32.72%, to $86,916,000 for the six months ended June 30, 2026, compared to $65,486,000 for the same period in 2025. The accretion on loan marks of acquired loans increased interest income by $7,416,000 and $6,326,000 during the six months ended June 30, 2026 and 2025, respectively. Net interest income during the six months ended June 30, 2026 and 2025 benefited by approximately 36 basis points ($7,058,000) and 39 basis points ($6,326,000), 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:
| (Dollars in thousands) | Three months endedJune 30, 2026 | Three months endedMarch 31, 2026 | $ Change | % Change |
|---|---|---|---|---|
| Service charges | $1,038 | $518 | $520 | 100.4% |
| Interchange fees | 836 | 464 | 372 | 80.2% |
| Appreciation in cash surrender value of bank owned life insurance | 522 | 377 | 145 | 38.5% |
| Loan placement fees | 299 | 146 | 153 | 104.8% |
| Federal Home Loan Bank dividends | 217 | 557 | (340) | (61.0)% |
| Net realized losses on sales and calls of investment securities | (5,899) | — | (5,899) | — |
| Other income | 1,017 | 726 | 291 | 40.1% |
| Total non-interest income | $(1,970) | $2,788 | $(4,758) | (170.7)% |
| (Dollars in thousands) | Three months endedJune 30, 2026 | Three months endedJune 30, 2025 | $ Change | % Change |
|---|---|---|---|---|
| Service charges | $1,038 | $505 | $533 | 105.5% |
| Interchange fees | 836 | 492 | 344 | 69.9% |
| Appreciation in cash surrender value of bank owned life insurance | 522 | 372 | 150 | 40.3% |
| Loan placement fees | 299 | 180 | 119 | 66.1% |
| Federal Home Loan Bank dividends | 217 | 237 | (20) | (8.4)% |
| Net realized losses on sales and calls of investment securities | (5,899) | (15) | (5,884) | 39226.7% |
| Other income | 1,017 | 593 | 424 | 71.5% |
| Total non-interest income | $(1,970) | $2,364 | $(4,334) | (183.3)% |
| (Dollars in thousands) | Six months ended June 30, 2026 | Six months ended June 30, 2025 | $ Change | % Change |
|---|---|---|---|---|
| Service charges | $1,556 | $1,007 | $549 | 54.5% |
| Interchange fees | 1,300 | 1,008 | 292 | 29.0% |
| Appreciation in cash surrender value of bank owned life insurance | 899 | 738 | 161 | 21.8% |
| Federal Home Loan Bank dividends | 773 | 478 | 295 | 61.7% |
| Loan placement fees | 445 | 567 | (122) | (21.5)% |
| Net realized losses on sales and calls of investment securities | (5,899) | (15) | (5,884) | 39226.7% |
| Other income | 1,743 | 1,192 | 551 | 46.2% |
| Total non-interest income | $817 | $4,975 | $(4,158) | (83.6)% |
The decreases in non-interest income quarter-to-date and year-to-date were primarily due to net realized losses on sales and calls of investment securities as part of the Company’s strategic repositioning of the balance sheet. The investment sales proceeds were reinvested into higher yielding investment securities and will be accretive to income in future quarters. Partially offsetting these losses were increases in service charges, interchange fees, loan placement fees, bank-owned life insurance income, and other income, all of which benefited from the expanded customer 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:
| (Dollars in thousands) | Three months endedJune 30, 2026 | Three months endedMarch 31, 2026 | $ Change | % Change |
|---|---|---|---|---|
| Salaries and employee benefits | $16,318 | $12,764 | $3,554 | 27.8% |
| Merger and acquisition expense | 7,746 | 289 | 7,457 | 2580.3% |
| Occupancy and equipment | 3,803 | 2,855 | 948 | 33.2% |
| Information technology | 2,658 | 1,713 | 945 | 55.2% |
| Amortization of core deposit intangibles | 1,873 | 251 | 1,622 | 646.2% |
| Data processing expense | 1,218 | 760 | 458 | 60.3% |
| Professional services | 840 | 622 | 218 | 35.0% |
| Regulatory assessments | 706 | 526 | 180 | 34.2% |
| ATM/Debit card expenses | 677 | 347 | 330 | 95.1% |
| Directors’ expenses | 261 | 236 | 25 | 10.6% |
| Loan related expenses | 208 | 185 | 23 | 12.4% |
| Advertising | 185 | 201 | (16) | (8.0)% |
| Personnel other | 25 | 38 | (13) | (34.2)% |
| Other expense | 2,625 | 2,200 | 425 | 19.3% |
| Total non-interest expenses | $39,143 | $22,987 | $16,156 | 70.3% |
| (Dollars in thousands) | Three months endedJune 30, 2026 | Three months endedJune 30, 2025 | $ Change | % Change |
|---|---|---|---|---|
| Salaries and employee benefits | $16,318 | $12,260 | $4,058 | 33.1% |
| Merger and acquisition expense | 7,746 | — | 7,746 | — |
| Occupancy and equipment | 3,803 | 2,794 | 1,009 | 36.1% |
| Information technology | 2,658 | 1,791 | 867 | 48.4% |
| Amortization of core deposit intangibles | 1,873 | 250 | 1,623 | 649.2% |
| Data processing expense | 1,218 | 855 | 363 | 42.5% |
| Professional services | 840 | 639 | 201 | 31.5% |
| Regulatory assessments | 706 | 498 | 208 | 41.8% |
| ATM/Debit card expenses | 677 | 397 | 280 | 70.5% |
| Directors’ expenses | 261 | 236 | 25 | 10.6% |
| Loan related expenses | 208 | 164 | 44 | 26.8% |
| Advertising | 185 | 241 | (56) | (23.2)% |
| Personnel other | 25 | 97 | (72) | (74.2)% |
| Other expense | 2,625 | 2,074 | 551 | 26.6% |
| Total non-interest expenses | $39,143 | $22,296 | $16,847 | 75.6% |
During the second quarter of 2026, total non-interest expense increased $16,156,000 and $16,847,000 compared to March 31, 2026 and June 30, 2025, respectively. The increases in both quarter-to-date and year-to-date non-interest expense categories was driven primarily by increases in merger expenses, salary and employee benefits, and amortization of core deposit intangibles as a result of the Merger.. The Company added 100 full-time equivalent employees as a result of the Merger, including temporary employees to assist with systems integrations.
| (Dollars in thousands) | Six months ended June 30, 2026 | Six months ended June 30, 2025 | $ Change | % Change |
|---|---|---|---|---|
| Salaries and employee benefits | $29,081 | $25,219 | $3,862 | 15.3% |
| Merger and acquisition expense | 8,036 | 278 | 7,758 | 2790.6% |
| Occupancy and equipment | 6,658 | 5,621 | 1,037 | 18.4% |
| Information technology | 4,371 | 3,693 | 678 | 18.4% |
| Amortization of core deposit intangibles | 2,124 | 501 | 1,623 | 324.0% |
| Data processing expense | 1,978 | 1,655 | 323 | 19.5% |
| Professional services | 1,462 | 1,503 | (41) | (2.7)% |
| Regulatory assessments | 1,232 | 989 | 243 | 24.6% |
| ATM/Debit card expenses | 1,023 | 790 | 233 | 29.5% |
| Directors’ expenses | 496 | 452 | 44 | 9.7% |
| Loan related expenses | 394 | 376 | 18 | 4.8% |
| Advertising | 386 | 502 | (116) | (23.1)% |
| Personnel other | 63 | 198 | (135) | (68.2)% |
| Other expense | 4,826 | 3,989 | 837 | 21.0% |
| Total non-interest expenses | $62,130 | $45,766 | $16,364 | 35.8% |
Balance Sheet Summary
The acquisition of USB has been accounted for using the acquisition method of accounting in accordance with ASC Topic 805. Assets acquired, liabilities assumed, intangibles recognized and consideration exchanged was recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. We recorded the fair values based on the valuations available as of reporting date. In accordance with business combination accounting guidance, we will continue to evaluate these fair values for up to one year following the Merger date of April 1, 2026. While management believes the information available and presented below provide a reasonable basis for estimating fair value, we may obtain additional information and evidence during the measurement period that could result in changes to the estimated fair value amounts. Valuation subject to change include, but not limited to, loans and leases, deposits, deferred tax items, and certain other assets and liabilities.
The following table summarizes the consideration paid for USB and the amounts of assets acquired and liabilities assumed that were recorded at the acquisition date (in thousands):
April 1, 2026
| Fair value of consideration transferred: | United Security Bancshares | United Security Bancshares |
|---|---|---|
| Fair value of shares issued | $184,586 | |
| Cash consideration | 86 | |
| Total merger consideration | $184,672 | |
| Assets acquired: | ||
| Cash and cash equivalents | $58,911 | |
| Available-for-sale debt securities | 136,565 | |
| Marketable equity securities | 3,407 | |
| Loans and leases | 878,527 | |
| Premises and equipment | 13,177 | |
| Cash value of life insurance | 21,387 | |
| Core deposit intangibles | 26,581 | |
| Other assets | 62,906 | |
| Total assets acquired | 1,201,461 | |
| Liabilities assumed: | ||
| Deposits | (1,058,485) | |
| Other liabilities | (16,760) | |
| Total liabilities assumed | (1,075,245) | |
| Total net assets acquired | 126,216 | |
| Goodwill created from transaction | $58,456 |
Total assets for the period ended June 30, 2026 increased $1,343,964,000 or 36.42%, compared to the period ended December 31, 2025. Total average assets for the quarter ended June 30, 2026 were $4,927,741,000 compared to $3,553,327,000 for the quarter ended June 30, 2025 and $3,695,982,000 for the quarter ended March 31, 2026, an increase of $1,374,414,000 or 38.68% and an increase of $1,231,759,000 or 33.33%, respectively.
For the quarter ended June 30, 2026, the Company’s average gross investment securities increased by $75,468,000, or 9.09%, compared to the quarter ended June 30, 2025, and increased by $103,054,000, or 12.84%, compared to the quarter ended March 31, 2026. This increase compared to the prior year was the result of the Merger with USB and calls and maturities of available-for-sale securities and held-to-maturity securities.
In comparing the quarter ended June 30, 2026 to the quarters ended June 30, 2025 and March 31, 2026, total average gross loans increased $1,131,787,000 or 47.75%, and increased by $958,458,000 or 37.68%, respectively. The fair value of loans acquired from USB was $878.5 million as of April 1, 2026. Included in the fair value of loans was an interest rate discount of $36.4 million.
The following table shows the Company’s outstanding loan portfolio composition as of June 30, 2026 and December 31, 2025:
| Loan Type (dollars in thousands) | June 30, 2026Amount | June 30, 2026% of Total | December 31, 2025Amount | December 31, 2025% of Total |
|---|---|---|---|---|
| Commercial: | ||||
| Commercial and industrial | $259,483 | 7.3% | $156,744 | 6.2% |
| Agricultural production | 74,117 | 2.1% | 34,152 | 1.3% |
| Total commercial | 333,600 | 9.4% | 190,896 | 7.5% |
| Real estate: | ||||
| Construction & other land loans | 224,359 | 6.3% | 80,452 | 3.2% |
| Commercial real estate - owner occupied | 531,684 | 15.0% | 368,604 | 14.5% |
| Commercial real estate - non-owner occupied | 1,259,331 | 35.6% | 992,486 | 39.1% |
| Farmland | 162,830 | 4.6% | 142,100 | 5.6% |
| Multi-family residential | 230,387 | 6.5% | 199,123 | 7.8% |
| 1-4 family - close-ended | 309,032 | 8.7% | 111,741 | 4.4% |
| 1-4 family - revolving | 43,768 | 1.2% | 39,818 | 1.6% |
| Total real estate | 2,761,391 | 77.9% | 1,934,324 | 76.2% |
| Consumer: | ||||
| Manufactured housing | 323,384 | 9.1% | 322,761 | 12.7% |
| Other installment | 124,898 | 3.5% | 92,589 | 3.6% |
| Total consumer | 448,282 | 12.6% | 415,350 | 16.3% |
| Net deferred origination costs | 510 | 0.1% | 287 | — |
| Total gross loans | 3,543,783 | 100.0% | 2,540,857 | 100.0% |
| Allowance for credit losses | (50,345) | (30,071) | ||
| Total loans | $3,493,438 | $2,510,786 |
The composition of deposits at June 30, 2026 and December 31, 2025 is summarized in the table below:
| (Dollars in thousands) | June 30, 2026Amount | June 30, 2026% of Total | December 31, 2025Amount | December 31, 2025% of Total |
|---|---|---|---|---|
| Savings and NOW accounts | $976,176 | 23.7% | $674,704 | 21.8% |
| MMA accounts | 1,151,159 | 27.9% | 858,354 | 27.7% |
| Time deposits | 541,119 | 13.1% | 503,451 | 16.3% |
| Total interest-bearing | 2,668,454 | 64.8% | 2,036,509 | 65.8% |
| Non-interest bearing | 1,451,008 | 35.2% | 1,058,765 | 34.2% |
| Total deposits | $4,119,462 | 100.0% | $3,095,274 | 100.0% |
Total average deposits increased $1,221,603,000 or 41.23%, to $4,184,435,000 for the quarter ended June 30, 2026, compared to $2,962,832,000 for the quarter ended June 30, 2025, and increased $1,036,271,000, or 32.92%, compared to $3,148,164,000 for the quarter ended March 31, 2026. The increase in average deposits was due to the completion of the Merger with USB and organic growth throughout the Company’s footprint. The Company’s ratio of average non-interest bearing deposits to total deposits was 34.14% for the quarter ended June 30, 2026, compared to 34.48% and 33.32% for the quarters ended June 30, 2025 and March 31, 2026, 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 $87,853,000 to $206,837,000 compared to $118,984,000 at December 31, 2025. The Company had $175,000,000 in short-term borrowings at June 30, 2026 compared to $73,000,000 at December 31, 2025.
At June 30, 2026 and December 31, 2025, the Company had the following sources of primary and secondary liquidity:
| Liquidity Sources (in thousands) | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $206,837 | $118,984 |
| Unpledged investment securities | 357,740 | 338,235 |
| Excess pledged securities | 53,534 | 85,961 |
| FHLB borrowing remaining availability | 703,907 | 709,391 |
| Unsecured lines of credit availability | 150,000 | 110,000 |
| Funds available through FRB discount window | 3,101 | 3,411 |
| Total | $1,475,119 | $1,365,982 |
Credit Quality
During the second quarter of 2026, the Company recorded net loan charge-offs of $5,498,000 compared to $13,000 for the same period in 2025. The primary reason for the increase in loan charge-offs during the quarter was due to $2.6 million in charge-offs within an acquired student loan portfolio from the Merger, in which the Company recorded a Day 1 allowance of $9.5 million in anticipation of future charge-offs in this portfolio segment. Additionally, the Company charged off one commercial real estate loan that was individually evaluated and had a specific reserve in prior quarters. The net charge-off ratio reflects annualized net charge-offs to average loans of 0.63% for the quarter ended June 30, 2026, compared to annualized net charge-offs of 0.00% for the quarter ended June 30, 2025. During the quarter ended June 30, 2026, non-accrual loans decreased $3,240,000 to $19,757,000 compared to $22,997,000 at March 31, 2026 and increased $12,802,000 year-to-date to $19,757,000 compared to $6,955,000 at December 31, 2025. The quarter-to-date increase in substandard loans is attributable primarily to the Merger with USB, which contributed $30 million in substandard loan balances. While total dollar balances of substandard loans increased relative to the prior quarter, the ratio of substandard loans to total loans remained consistent with the trailing quarter.
During the quarter ended June 30, 2026, the Company recorded a $6,182,000 provision for loan losses, compared to $2,640,000 for the same period in 2025. The provision for loan losses during the quarter ended June 30, 2026 was primarily due to an update of the Company’s peer group based on its larger asset size following the completion of the Merger and also from organic loan growth during the quarter. In addition to the provision for credit losses on loans for the quarter ended June 30, 2026, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $55,000 as compared to $188,000 in the prior year quarter. The Company recorded a credit to the provision for unfunded loan commitments totaling $492,000 for the quarter ended June 30, 2026 compared to a provision for unfunded loan commitments of $161,000 in the prior year quarter.
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) | June 30, 2026 | % of Total | March 31, 2026 | % of Total | June 30, 2025 | % of Total |
|---|---|---|---|---|---|---|
| Pass | $3,377,926 | 95.3% | $2,424,756 | 95.1% | $2,320,608 | 96.7% |
| Special mention | 55,617 | 1.6% | 49,500 | 1.9% | 19,706 | 0.8% |
| Substandard | 110,240 | 3.1% | 76,802 | 3.0% | 59,073 | 2.5% |
| Doubtful | — | — | — | |||
| Total | $3,543,783 | 100.0% | $2,551,058 | 100.0% | $2,399,387 | 100.0% |
At June 30, 2026, the allowance for credit losses for loans was $50,345,000, compared to $30,071,000 at December 31, 2025, a net increase of $20,274,000 reflecting a provision for loan losses of $6,304,000 and net charge-offs during the period. The primary driver of this increase was the acquisition of USB, which contributed $19.4 million in Day 1 allowance balances across all portfolio segments. As a result of the Company's early adoption of ASU 2025-08, a Day 1 allowance for credit losses was established for acquired loans at the Merger date. Excluding the impact of the Day 1 allowance, the allowance grew modestly, reflecting a provision for credit losses of $6.2 million, partially offset by net charge-offs of $5.5 million during the quarter. The allowance for credit losses as a percentage of total loans was 1.42% as of June 30, 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 June 30, 2026.
The following table shows the summary of activities for the allowance for credit losses three months ended June 30, 2026 by portfolio segment (in thousands):
| Commercial | Commercial Real Estate | 1-4 Family Real Estate | Consumer | Total | |
| Allowance for credit losses: | |||||
| Beginning balance, March 31, 2026 | $3,065 | $20,449 | $2,342 | $4,374 | $30,230 |
| Merger Day 1 ACL | 1,859 | 6,838 | 1,204 | 9,530 | 19,431 |
| Provision for credit losses (1) | 1,989 | 3,361 | 662 | 170 | 6,182 |
| Charge-offs | (816) | (2,355) | — | (2,642) | (5,813) |
| Recoveries | 47 | 194 | 6 | 68 | 315 |
| Ending balance, June 30, 2026 | $6,144 | $28,487 | $4,214 | $11,500 | $50,345 |
(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $5,635 includes a $(55) credit for held-to-maturity securities and a $(492) credit to the provision for unfunded loan commitments.
Cash Dividend Declared
On July 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 August 21, 2026 to shareholders of record as of August 7, 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, 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 and Daniel N. Cunningham are Directors Emeriti.
More information about Community West Bancshares and Community West Bank can be found at www.communitywestbank.com.
CONSOLIDATED BALANCE SHEETS
Unaudited
| (In thousands, except share amounts) | June 30, 2026 | March 31, 2026 | June 30, 2025 |
|---|---|---|---|
| ASSETS | |||
| Cash and due from banks | $73,334 | $37,925 | $48,158 |
| Interest-earning deposits in other banks | 133,503 | 92,401 | 86,215 |
| Total cash and cash equivalents | 206,837 | 130,326 | 134,373 |
| Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $605,239 at June 30, 2026, $508,605 at March 31, 2026, and $523,679 at June 30, 2025 | 570,088 | 467,871 | 469,354 |
| Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $353 at June 30, 2026, $407 at March 31, 2026, and $786 at June 30, 2025 | 276,061 | 281,078 | 291,405 |
| Equity securities, at fair value | 10,119 | 6,755 | 6,705 |
| Loans, less allowance for credit losses of $50,345 at June 30, 2026, $30,230 at March 31, 2026, and $28,722 at June 30, 2025 | 3,493,438 | 2,520,828 | 2,370,665 |
| Bank premises and equipment, net | 39,286 | 25,387 | 23,974 |
| Bank owned life insurance | 76,449 | 54,540 | 54,057 |
| Federal Home Loan Bank stock | 17,250 | 10,978 | 10,978 |
| Goodwill | 155,249 | 96,828 | 96,828 |
| Core deposit intangibles | 32,723 | 8,015 | 8,767 |
| Accrued interest receivable and other assets | 156,781 | 100,377 | 109,705 |
| Total assets | $5,034,281 | $3,702,983 | $3,576,811 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| Deposits: | |||
| Non-interest bearing | $1,451,008 | $1,047,641 | $1,035,371 |
| Interest bearing | 2,668,454 | 2,093,952 | 1,959,550 |
| Total deposits | 4,119,462 | 3,141,593 | 2,994,921 |
| Borrowings | 175,000 | 34,000 | 86,000 |
| Senior debt and subordinated debentures | 75,291 | 69,176 | 69,962 |
| Accrued interest payable and other liabilities | 56,708 | 39,011 | 45,926 |
| Total liabilities | 4,426,461 | 3,283,780 | 3,196,809 |
| 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: 27,131,078 at June 30, 2026, 19,185,275 at March 31, 2026, and 19,130,508 at June 30, 2025 | 395,699 | 210,858 | 209,268 |
| Retained earnings | 247,619 | 248,180 | 221,542 |
| Accumulated other comprehensive loss, net of tax | (35,498) | (39,835) | (50,808) |
| Total shareholders’ equity | 607,820 | 419,203 | 380,002 |
| Total liabilities and shareholders’ equity | $5,034,281 | $3,702,983 | $3,576,811 |
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
| (In thousands, except share and per-share amounts) | For the Three Months EndedJune 30, 2026 | For the Three Months EndedMarch 31, 2026 | For the Three Months EndedJune 30, 2025 | For the Six Months EndedJune 30, 2026 | For the Six Months EndedJune 30, 2025 |
|---|---|---|---|---|---|
| INTEREST INCOME: | |||||
| Interest and fees on loans | $58,630 | $41,905 | $39,537 | $100,535 | $77,962 |
| Interest on deposits in other banks | 1,099 | 850 | 1,054 | 1,949 | 2,110 |
| Interest and dividends on investment securities: | |||||
| Taxable | 5,126 | 3,872 | 4,127 | 8,998 | 8,477 |
| Exempt from Federal income taxes | 1,264 | 1,265 | 1,307 | 2,530 | 2,614 |
| Total interest income | 66,119 | 47,892 | 46,025 | 114,012 | 91,163 |
| INTEREST EXPENSE: | |||||
| Interest on deposits | 13,732 | 10,835 | 10,538 | 24,567 | 20,926 |
| Interest on borrowings | 539 | 212 | 1,281 | 751 | 2,954 |
| Interest on senior debt and subordinated debentures | 936 | 842 | 902 | 1,778 | 1,797 |
| Total interest expense | 15,207 | 11,889 | 12,721 | 27,096 | 25,677 |
| Net interest income before provision for credit losses | 50,912 | 36,003 | 33,304 | 86,916 | 65,486 |
| PROVISION FOR CREDIT LOSSES | 5,635 | 90 | 2,613 | 5,725 | 2,572 |
| Net interest income after provision for credit losses | 45,277 | 35,913 | 30,691 | 81,191 | 62,914 |
| NON-INTEREST INCOME: | |||||
| Service charges | 1,038 | 518 | 505 | 1,556 | 1,007 |
| Net realized losses on sales and calls of investment securities | (5,899) | — | (15) | (5,899) | (15) |
| Other income | 2,891 | 2,270 | 1,874 | 5,160 | 3,983 |
| Total non-interest income | (1,970) | 2,788 | 2,364 | 817 | 4,975 |
| NON-INTEREST EXPENSES: | |||||
| Salaries and employee benefits | 16,318 | 12,764 | 12,260 | 29,081 | 25,219 |
| Occupancy and equipment | 3,803 | 2,855 | 2,794 | 6,658 | 5,621 |
| Other expense | 19,022 | 7,368 | 7,242 | 26,391 | 14,926 |
| Total non-interest expenses | 39,143 | 22,987 | 22,296 | 62,130 | 45,766 |
| Income before provision for income taxes | 4,164 | 15,714 | 10,759 | 19,878 | 22,123 |
| PROVISION FOR INCOME TAXES | 1,469 | 4,225 | 2,927 | 5,694 | 5,998 |
| Net income | $2,695 | $11,489 | $7,832 | $14,184 | $16,125 |
| Net income per common share: | |||||
| Basic earnings per common share | $0.10 | $0.60 | $0.41 | $0.61 | $0.85 |
| Weighted average common shares used in basic computation | 27,051,374 | 19,060,177 | 18,987,217 | 23,077,851 | 18,960,670 |
| Diluted earnings per common share | $0.10 | $0.60 | $0.41 | $0.61 | $0.85 |
| Weighted average common shares used in diluted computation | 27,108,920 | 19,137,134 | 19,042,750 | 23,145,947 | 19,028,425 |
| Cash dividends per common share | $0.12 | $0.12 | $0.12 | $0.24 | $0.24 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
| For the three months ended | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sept. 30, 2025 | Jun. 30, 2025 |
|---|---|---|---|---|---|
| (In thousands, except share and per share amounts) | |||||
| Net interest income | $50,912 | $36,003 | $35,749 | $34,944 | $33,304 |
| Provision for credit losses | 5,635 | 90 | 515 | 667 | 2,613 |
| Net interest income after provision for credit losses | 45,277 | 35,913 | 35,234 | 34,277 | 30,691 |
| Total non-interest income | (1,970) | 2,788 | 2,547 | 2,966 | 2,364 |
| Total non-interest expense | 39,143 | 22,987 | 22,452 | 22,167 | 22,296 |
| Provision for income taxes | 1,469 | 4,225 | 4,159 | 4,203 | 2,927 |
| Net income | $2,695 | $11,489 | $11,170 | $10,873 | $7,832 |
| Basic earnings per common share | $0.10 | $0.60 | $0.59 | $0.57 | $0.41 |
| Weighted average common shares used in basic computation | 27,051,374 | 19,060,177 | 19,044,351 | 19,019,990 | 18,987,217 |
| Diluted earnings per common share | $0.10 | $0.60 | $0.58 | $0.57 | $0.41 |
| Weighted average common shares used in diluted computation | 27,108,920 | 19,137,134 | 19,117,789 | 19,093,544 | 19,042,750 |
SELECTED RATIOS
Unaudited
| As of and for the three months ended | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sept. 30, 2025 | Jun. 30, 2025 |
|---|---|---|---|---|---|
| (Dollars in thousands, except per share amounts) | |||||
| Allowance for credit losses to total loans | 1.42% | 1.19% | 1.18% | 1.21% | 1.20% |
| Non-performing assets to total assets | 0.56% | 0.62% | 0.19% | 0.20% | 0.20% |
| Total non-performing assets | $27,942 | $22,997 | $6,955 | $7,072 | $6,769 |
| Total nonaccrual loans | $19,757 | $22,997 | $6,955 | $7,072 | $6,769 |
| Total substandard loans | $110,240 | $76,802 | $78,796 | $67,069 | $59,073 |
| Total special mention loans | $55,617 | $49,500 | $54,155 | $24,925 | $19,706 |
| Net loan charge-offs (recoveries) | $5,498 | $(37) | $118 | $(75) | $13 |
| Net charge-offs (recoveries) to average loans (annualized) | 0.63% | (0.01)% | 0.02% | (0.01)% | — |
| Book value per share | $22.40 | $21.85 | $21.37 | $20.77 | $19.86 |
| Tangible book value per share (1) | $15.47 | $16.39 | $15.89 | $15.27 | $14.34 |
| Total equity | $607,820 | $419,203 | $409,588 | $397,576 | $380,002 |
| Tangible common equity (1) | $419,848 | $314,360 | $304,494 | $292,232 | $274,407 |
| Cost of total deposits | 1.31% | 1.40% | 1.39% | 1.39% | 1.43% |
| Interest and dividends on investment securities exempt from Federal income taxes | $1,264 | $1,265 | $1,275 | $1,273 | $1,307 |
| Net interest margin (calculated on a fully tax equivalent basis) (2) | 4.56% | 4.30% | 4.24% | 4.20% | 4.10% |
| Return on average assets (3) | 0.22% | 1.24% | 1.23% | 1.21% | 0.88% |
| Return on average equity (3) | 1.77% | 10.99% | 11.03% | 11.25% | 8.30% |
| Loan to deposit ratio | 86.03% | 81.15% | 82.04% | 79.66% | 80.12% |
| Efficiency ratio | 79.98% | 59.26% | 58.63% | 58.47% | 62.51% |
| Tier 1 leverage - Bancorp | 9.79% | 9.94% | 9.80% | 9.52% | 9.48% |
| Tier 1 leverage - Bank | 10.97% | 11.43% | 11.44% | 11.24% | 11.25% |
| Common equity tier 1 - Bancorp | 11.41% | 11.84% | 11.56% | 11.60% | 11.42% |
| Common equity tier 1 - Bank | 12.93% | 13.81% | 13.70% | 13.90% | 13.76% |
| Tier 1 risk-based capital - Bancorp | 11.53% | 12.01% | 11.73% | 11.77% | 11.59% |
| Tier 1 risk-based capital - Bank | 12.93% | 13.81% | 13.70% | 13.90% | 13.76% |
| Total risk-based capital - Bancorp | 13.63% | 14.24% | 13.97% | 14.07% | 13.89% |
| Total risk based capital - Bank | 14.18% | 14.88% | 14.77% | 14.99% | 14.84% |
(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.
SCHEDULE OF AVERAGE BALANCES AND AVERAGE YIELDS AND RATES
Unaudited
| (Dollars in thousands) | For the Three Months Ended June 30, 2026Average Balance | For the Three Months Ended June 30, 2026Interest Income/ Expense | For the Three Months Ended June 30, 2026Average Interest Rate | For the Three Months Ended March 31, 2026Average Balance | For the Three Months Ended March 31, 2026Interest Income/ Expense | For the Three Months Ended March 31, 2026Average Interest Rate | For the Three Months Ended June 30, 2025Average Balance | For the Three Months Ended June 30, 2025Interest Income/ Expense | For the Three Months Ended June 30, 2025Average Interest Rate |
|---|---|---|---|---|---|---|---|---|---|
| ASSETS | |||||||||
| Interest-earning deposits in other banks | $121,366 | $1,099 | 3.62% | $90,720 | $850 | 3.75% | $96,136 | $1,054 | 4.39% |
| Securities | |||||||||
| Taxable securities | 669,406 | 5,126 | 3.06% | 565,745 | 3,872 | 2.74% | 590,791 | 4,127 | 2.79% |
| Non-taxable securities (1) | 236,050 | 1,601 | 2.71% | 236,657 | 1,601 | 2.71% | 239,197 | 1,654 | 2.77% |
| Total investment securities | 905,456 | 6,727 | 2.97% | 802,402 | 5,473 | 2.73% | 829,988 | 5,781 | 2.79% |
| Total securities and interest-earning deposits | 1,026,822 | 7,826 | 3.05% | 893,122 | 6,323 | 2.83% | 926,124 | 6,835 | 2.95% |
| Loans (2) (3) | 3,480,401 | 58,630 | 6.76% | 2,530,812 | 41,905 | 6.72% | 2,364,456 | 39,537 | 6.71% |
| Total interest-earning assets | 4,507,223 | $66,456 | 5.91% | 3,423,934 | $48,228 | 5.71% | 3,290,580 | $46,372 | 5.65% |
| Allowance for credit losses | (46,961) | (30,094) | (26,151) | ||||||
| Non-accrual loans | 21,711 | 12,842 | 5,869 | ||||||
| Cash and due from banks | 46,239 | 33,687 | 35,607 | ||||||
| Bank premises and equipment | 30,551 | 23,866 | 23,939 | ||||||
| Other assets | 368,978 | 231,747 | 223,483 | ||||||
| Total average assets | $4,927,741 | $3,695,982 | $3,553,327 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Interest-bearing liabilities: | |||||||||
| Savings and NOW accounts | $1,057,005 | $1,641 | 0.62% | $694,497 | $1,168 | 0.68% | $601,559 | $1,034 | 0.69% |
| Money market accounts | 1,129,539 | 7,244 | 2.57% | 869,143 | 5,084 | 2.37% | 876,609 | 5,070 | 2.32% |
| Time certificates of deposit | 569,449 | 4,847 | 3.41% | 535,479 | 4,583 | 3.47% | 463,151 | 4,434 | 3.84% |
| Total interest-bearing deposits | 2,755,993 | 13,732 | 2.00% | 2,099,119 | 10,835 | 2.09% | 1,941,319 | 10,538 | 2.18% |
| Other borrowed funds | 129,945 | 1,475 | 4.54% | 91,317 | 1,054 | 4.62% | 167,636 | 2,183 | 5.15% |
| Total interest-bearing liabilities | 2,885,938 | $15,207 | 2.11% | 2,190,436 | $11,889 | 2.20% | 2,108,955 | $12,721 | 2.42% |
| Non-interest bearing demand deposits | 1,428,442 | 1,049,045 | 1,021,513 | ||||||
| Other liabilities | 5,296 | 38,329 | 45,446 | ||||||
| Shareholders’ equity | 608,065 | 418,172 | 377,413 | ||||||
| Total average liabilities and shareholders’ equity | $4,927,741 | $3,695,982 | $3,553,327 | ||||||
| Interest income and rate earned on average earning assets | $66,456 | 5.91% | $48,228 | 5.71% | $46,372 | 5.65% | |||
| Interest expense and interest cost related to average interest-bearing liabilities | 15,207 | 2.11% | 11,889 | 2.20% | 12,721 | 2.42% | |||
| Net interest income and net interest margin (4) | $51,249 | 4.56% | $36,339 | 4.30% | $33,651 | 4.10% |
(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $336, $336, and $347 at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
(2) Loan interest income includes net loan (costs) fees of $4,883, $589, and $217 at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Loan interest income includes an accretion on loan marks of $5,163,000, $2,253,000, and $2,987,000 at June 30, 2026, March 31, 2026, and June 30, 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.
| (Dollars in thousands) | For the Six Months Ended June 30, 2026Average Balance | For the Six Months Ended June 30, 2026Interest Income/ Expense | For the Six Months Ended June 30, 2026Average Interest Rate | For the Six Months Ended June 30, 2025Average Balance | For the Six Months Ended June 30, 2025Interest Income/ Expense | For the Six Months Ended June 30, 2025Average Interest Rate |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Interest-earning deposits in other banks | $106,128 | $1,949 | 3.67% | $94,684 | $2,110 | 4.46% |
| Securities | ||||||
| Taxable securities | 617,862 | 8,998 | 2.91% | 596,577 | 8,477 | 2.84% |
| Non-taxable securities (1) | 236,352 | 3,203 | 2.71% | 239,600 | 3,309 | 2.76% |
| Total investment securities | 854,214 | 12,201 | 2.86% | 836,177 | 11,786 | 2.82% |
| Total securities and interest-earning deposits | 960,342 | 14,150 | 2.95% | 930,861 | 13,896 | 2.99% |
| Loans (2) (3) | 3,008,254 | 100,535 | 6.74% | 2,346,244 | 77,962 | 6.70% |
| Total interest-earning assets | 3,968,596 | $114,685 | 5.83% | 3,277,105 | $91,858 | 5.65% |
| Allowance for credit losses | (38,574) | (26,005) | ||||
| Non-accrual loans | 17,277 | 6,017 | ||||
| Cash and due from banks | 39,997 | 35,762 | ||||
| Bank premises and equipment | 27,227 | 24,131 | ||||
| Other assets | 300,742 | 223,891 | ||||
| Total average assets | $4,315,265 | $3,540,901 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Interest-bearing liabilities: | ||||||
| Savings and NOW accounts | $876,752 | $2,809 | 0.65% | $594,170 | $1,893 | 0.64% |
| Money market accounts | 1,000,060 | 12,328 | 2.49% | 874,763 | 10,170 | 2.34% |
| Time certificates of deposit | 552,558 | 9,430 | 3.44% | 456,593 | 8,863 | 3.91% |
| Total interest-bearing deposits | 2,429,370 | 24,567 | 2.04% | 1,925,526 | 20,926 | 2.19% |
| Other borrowed funds | 110,738 | 2,529 | 4.57% | 186,792 | 4,751 | 5.09% |
| Total interest-bearing liabilities | 2,540,108 | $27,096 | 2.15% | 2,112,318 | $25,677 | 2.45% |
| Non-interest bearing demand deposits | 1,239,637 | 1,009,228 | ||||
| Other liabilities | 21,875 | 45,619 | ||||
| Shareholders’ equity | 513,645 | 373,735 | ||||
| Total average liabilities and shareholders’ equity | $4,315,265 | $3,540,900 | ||||
| Interest income and rate earned on average earning assets | $114,685 | 5.83% | $91,858 | 5.65% | ||
| Interest expense and interest cost related to average interest-bearing liabilities | 27,096 | 2.15% | 25,677 | 2.45% | ||
| Net interest income and net interest margin (4) | $87,589 | 4.45% | $66,181 | 4.07% |
(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $673 and $695 at June 30, 2026 and June 30, 2025, respectively.
(2) Loan interest income includes net loan fees (costs) of $5,472 and $316 at June 30, 2026 and June 30, 2025, respectively. Loan interest income includes an accretion on loan marks of $7,416,000 and $6,326,000 at June 30, 2026 and June 30, 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