UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-31977 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-0539125 (I.R.S. Employer ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides an overview of the company's financial performance for Q3 2025, including key earnings metrics, management commentary, and significant financial highlights [Q3 2025 Earnings Overview](index=1&type=section&id=Q3%202025%20Earnings%20Overview) Community West Bancshares reported a significant increase in net income and diluted EPS for Q3 2025 compared to both the previous quarter and the same period in 2024, alongside a declared quarterly cash dividend | Metric | Q3 2025 | Q3 2024 | | :----------------------- | :---------- | :---------- | | Net Income | $10.873 million | $3.385 million | | Diluted EPS | $0.57 | $0.18 | - The Company declared a **$0.12 per common share cash dividend**, payable on November 14, 2025, to shareholders of record as of October 31, 2025[2](index=2&type=chunk) [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) The CEO highlighted the company's solid third-quarter results, reflecting team strength and client trust, with a continued focus on discipline, credit quality, deposit stability, and prudent liquidity. The CFO emphasized record income growth and increasing net interest margin over six consecutive quarters, positioning the company for long-term shareholder value - CEO James J. Kim noted the company's mission-driven approach as a community bank partner, maintaining focus on credit quality, deposit stability, and prudent liquidity management amidst evolving economic conditions[3](index=3&type=chunk) - CFO Shannon Livingston reported one of the strongest quarters in recent years, marked by **six consecutive quarters of increasing net interest margin** and record income growth, attributing success to synergies, discipline, and exceptional service culture[5](index=5&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The third quarter of 2025 saw significant improvements across key financial metrics, including increased net income, reduced provision for credit losses, growth in loans and deposits, improved net interest margin, and strong capital positions Q3 2025 Financial Highlights (vs. Q2 2025) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------------- | :----------- | :----------- | :----------- | | Net Income | $10.87 million | $7.83 million | +38.8% | | Diluted EPS | $0.57 | $0.41 | +39.0% | | Provision for Credit Losses | $0.667 million | $2.61 million | -74.4% | | Gross Loans Increase | $51.8 million| - | +2.16% | | Total Deposits Increase | $81.0 million| - | +2.70% | | Total Cost of Deposits | 1.39% | 1.43% | -0.04 pp | | Net Interest Margin | 4.20% | 4.10% | +0.10 pp | Capital Ratios as of September 30, 2025 | Capital Ratio | Percentage | | :------------------------ | :--------- | | Tier 1 Leverage Ratio | 9.53% | | Common Equity Tier 1 Ratio| 11.60% | | Tier 1 Risk-Based Capital | 11.78% | | Total Risk-Based Capital | 14.07% | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on consolidated income, net interest income, non-interest income, and non-interest expenses [Consolidated Income Statement Analysis](index=2&type=section&id=Consolidated%20Income%20Statement%20Analysis) The company's net income significantly increased in Q3 2025 compared to both the prior quarter and the same period last year, driven by higher net interest income, lower provision for credit losses, and increased non-interest income Consolidated Net Income (in millions) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :---------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Net Income | $10.873 | $7.832 | $3.385 | $26.998 | $0.771 | - Net income before income taxes for Q3 2025 was **$15.076 million**, a substantial increase from **$4.160 million** in Q3 2024[6](index=6&type=chunk) [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income before provision for credit losses increased significantly year-over-year, primarily due to organic loan growth, an increase in the yield on interest-earning assets, and a decrease in the cost of total deposits, leading to a higher net interest margin Net Interest Income and Margin Trends | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :----------------------------------------- | :------- | :------- | :------- | | Net Interest Margin (fully tax equivalent) | 4.20% | 4.10% | 3.69% | | Net Interest Income (before provision) | $34.944 million | $33.304 million | $30.214 million | | Yield on Interest Earning Assets | 5.62% | 5.65% | 5.52% | | Cost of Total Deposits | 1.39% | 1.43% | 1.69% | - Net interest income before provision for credit losses increased by **$4.730 million** or **15.65%** year-over-year for Q3 2025[13](index=13&type=chunk) - The decrease in the cost of deposits is primarily attributed to rate decreases in money market and time deposit portfolios from both acquired deposits (April 2024 merger) and the Company's existing base[13](index=13&type=chunk) [Non-Interest Income Analysis](index=4&type=section&id=Non-Interest%20Income%20Analysis) Total non-interest income increased significantly quarter-over-quarter and year-to-date, primarily driven by a net gain on death benefits and a substantial reduction in realized losses on investment securities, despite some offsets from lower interchange and loan placement fees year-to-date Non-Interest Income (in millions) | Metric | Q3 2025 | Q2 2025 | % Change (QoQ) | YTD 2025 | YTD 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | :------- | :------- | :------------- | | Total Non-Interest Income | $2.966 | $2.364 | 25.5% | $7.941 | $4.142 | 91.7% | | Gain on proceeds from death benefits | $0.198 | $0 | —% | $0.198 | $0 | —% | | Net realized losses on sales and calls of investment securities | $(0.026) | $(0.015) | 73.3% | $(0.041) | $(4.199) | (99.0)% | - The increase in total non-interest income for Q3 2025 compared to the trailing quarter was primarily driven by a net gain on proceeds from death benefits of **$0.198 million** and income from CRA investments of **$0.273 million**[15](index=15&type=chunk) - Year-to-date non-interest income growth was largely due to a significant reduction in realized losses on sales and calls of investment securities, decreasing from **$4.199 million** in 2024 to **$0.041 million** in 2025[17](index=17&type=chunk) [Non-Interest Expense Analysis](index=5&type=section&id=Non-Interest%20Expense%20Analysis) Total non-interest expenses decreased quarter-over-quarter and year-to-date, mainly due to reductions in professional services, data processing, and merger-related expenses, partially offset by increases in salary and employee benefits, occupancy, and information technology Non-Interest Expenses (in millions) | Metric | Q3 2025 | Q2 2025 | % Change (QoQ) | YTD 2025 | YTD 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | :------- | :------- | :------------- | | Total Non-Interest Expenses | $22.167 | $22.296 | (0.6)% | $67.934 | $71.513 | (5.0)% | | Professional services | $0.447 | $0.639 | (30.0)% | $1.950 | $2.187 | (10.8)% | | Data processing expense | $0.748 | $0.855 | (12.5)% | $2.403 | $3.010 | (20.2)% | | Merger and acquisition expense | - | - | - | $0.278 | $9.147 | (97.0)% | | Salaries and employee benefits | $12.525 | $12.260 | 2.2% | $37.744 | $35.800 | 5.4% | - The quarter-over-quarter decrease in non-interest expense was driven by lower professional services, data processing, and information technology costs, partially offset by increased accruals for incentive compensation[18](index=18&type=chunk) - The year-to-date decrease in non-interest expenses was primarily due to a significant reduction in non-recurring merger expenses[20](index=20&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides a reconciliation of GAAP and non-GAAP financial measures, offering supplemental information for investors to analyze core operating results and facilitate comparisons [Reconciliation of GAAP and Non-GAAP Financial Measures](index=2&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures to offer supplemental information for investors, facilitating analysis of core operating results and comparisons across reporting periods, and for internal budgeting and management Key GAAP vs. Non-GAAP Metrics (in millions, except percentages) | Metric | Q3 2025 (GAAP) | Q3 2025 (Non-GAAP) | Q3 2024 (GAAP) | Q3 2024 (Non-GAAP) | | :---------------------------------------- | :------------- | :----------------- | :------------- | :----------------- | | Net Income | $10.873 | - | $3.385 | - | | Net income before income tax and provision expense | - | $15.743 | - | $3.642 | | Return on average assets (Annualized) | 1.21% | 1.75% | 0.38% | 0.41% | | Return on average equity (Annualized) | 11.25% | 16.29% | 3.84% | 4.13% | | Tangible common equity | - | $292.232 | - | $257.618 | | Tangible common shareholders' equity per share | - | $15.27 | - | $13.60 | - Management uses non-GAAP financial measures to establish budgets and manage the Company's business, believing they provide useful supplemental information to investors[7](index=7&type=chunk) [Balance Sheet Summary](index=6&type=section&id=Balance%20Sheet%20Summary) This section provides an overview of the company's balance sheet, detailing asset, loan portfolio, deposit, and liquidity positions [Assets Overview](index=6&type=section&id=Assets%20Overview) Total assets and average assets showed growth, primarily driven by an increase in average gross loans, while average gross investment securities decreased due to sales, calls, and maturities Asset Trends (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | % Change (YTD) | | :-------------------------- | :----------- | :----------- | :------------- | | Total Assets | $3,612.264 | $3,521.771 | 2.57% | | Average Assets (Q3) | $3,595.359 | $3,541.444 | 1.52% (YoY) | | Average Gross Investment Securities (Q3) | $818.816 | $895.424 | (8.56)% (YoY) | | Total Average Gross Loans (Q3) | $2,410.272 | $2,278.313 | 6.01% (YoY) | - The decrease in average gross investment securities compared to the prior year was a result of sales, calls, and maturities of available-for-sale (AFS) and held-to-maturity (HTM) securities[22](index=22&type=chunk) [Loan Portfolio Composition](index=7&type=section&id=Loan%20Portfolio%20Composition) The loan portfolio continued to be dominated by real estate loans, which increased in both absolute terms and as a percentage of total loans, while consumer loans also saw a slight increase Loan Portfolio Composition (in millions) | Loan Type | Sep 30, 2025 Amount | Sep 30, 2025 % of Total | Dec 31, 2024 Amount | Dec 31, 2024 % of Total | | :-------------------------------------- | :------------------ | :---------------------- | :------------------ | :---------------------- | | Total Commercial | $180.795 | 7.3% | $180.745 | 7.7% | | Total Real Estate | $1,848.301 | 75.5% | $1,736.498 | 74.4% | | Total Consumer | $421.178 | 17.2% | $415.102 | 17.8% | | Total Gross Loans | $2,451.142 | 100.0% | $2,334.221 | 100.0% | - Commercial real estate - non-owner occupied loans represent the largest single category, accounting for **39.7%** of the total loan portfolio at September 30, 2025[24](index=24&type=chunk) [Deposit Composition](index=7&type=section&id=Deposit%20Composition) Total deposits increased significantly year-to-date and quarter-over-quarter, with non-interest bearing deposits growing to represent a larger portion of total deposits, indicating improved funding stability Deposit Composition (in millions) | Deposit Type | Sep 30, 2025 Amount | Sep 30, 2025 % of Total | Dec 31, 2024 Amount | Dec 31, 2024 % of Total | | :------------------------ | :------------------ | :---------------------- | :------------------ | :---------------------- |\ | Total Interest-Bearing | $1,984.114 | 64.5% | $1,929.953 | 66.3% | | Non-Interest Bearing | $1,091.817 | 35.5% | $980.824 | 33.7% | | Total Deposits | $3,075.931 | 100.0% | $2,910.777 | 100.0% | - Total average deposits increased by **$135.348 million** or **4.61%** year-over-year for Q3 2025[24](index=24&type=chunk) - The ratio of average non-interest bearing deposits to total deposits increased to **35.79%** for Q3 2025, up from **34.48%** in Q2 2025[24](index=24&type=chunk) [Liquidity Position](index=8&type=section&id=Liquidity%20Position) The company maintains significant liquidity, with an increase in total available liquidity sources year-to-date, driven by higher FHLB borrowing availability and excess pledged securities, despite a decrease in short-term borrowings Liquidity Sources (in millions) | Liquidity Source | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Cash and cash equivalents | $121.558 | $120.398 | | Unpledged investment securities | $350.057 | $403.669 | | FHLB borrowing availability | $737.720 | $576.556 | | Total Liquidity | $1,407.362 | $1,284.317 | - Short-term borrowings decreased significantly to **$20 million** at September 30, 2025, from **$133.442 million** at December 31, 2024[26](index=26&type=chunk) [Credit Quality](index=8&type=section&id=Credit%20Quality) This section assesses the company's credit quality, including loan loss provisions, allowance for credit losses, and loan risk ratings [Loan Loss Provision and Recoveries](index=8&type=section&id=Loan%20Loss%20Provision%20and%20Recoveries) The company recorded a provision for loan losses in Q3 2025, a shift from a credit in the prior year, while net loan recoveries decreased year-over-year Provision for Credit Losses and Net Recoveries (in millions) | Metric | Q3 2025 | Q3 2024 | | :---------------------------------------- | :------ | :------ | | Net loan recoveries | $0.075 | $0.162 | | Provision for loan losses | $0.793 | $(0.212) | | Credit to provision for HTM securities | $(0.062) | $(0.219) | | Credit to provision for unfunded commitments | $(0.064) | $(0.087) | - The net recovery ratio was **0.01%** for Q3 2025, compared to **0.03%** for Q3 2024[27](index=27&type=chunk) [Allowance for Credit Losses](index=8&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses for loans increased year-to-date, reflecting a provision for loan losses and net recoveries, with the company believing the allowance is adequate Allowance for Credit Losses (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :---------------------------------------- | :----------- | :----------- | | Allowance for credit losses for loans | $29.590 | $25.803 | | Allowance for credit losses as % of total loans | 1.21% | 1.11% | - The net increase in the allowance for credit losses for loans was **$3.787 million** year-to-date[28](index=28&type=chunk) [Loan Risk Ratings](index=8&type=section&id=Loan%20Risk%20Ratings) The majority of the loan portfolio remains in 'Pass' risk rating, though there was an increase in 'Substandard' loans and a slight increase in 'Special mention' loans quarter-over-quarter Loan Risk Rating Composition (in millions) | Loan Risk Rating | Sep 30, 2025 Amount | Sep 30, 2025 % of Total | Jun 30, 2025 Amount | Jun 30, 2025 % of Total | Sep 30, 2024 Amount | Sep 30, 2024 % of Total | | :--------------- | :------------------ | :---------------------- | :------------------ | :---------------------- | :------------------ | :---------------------- | | Pass | $2,359.148 | 96.3% | $2,320.608 | 96.7% | $2,228.707 | 97.0% | | Special mention | $24.925 | 1.0% | $19.706 | 0.8% | $28.799 | 1.3% | | Substandard | $67.069 | 2.7% | $59.073 | 2.5% | $39.637 | 1.7% | [Capital and Dividends](index=9&type=section&id=Capital%20and%20Dividends) This section reviews the company's capital adequacy through key ratios and details the latest cash dividend declaration [Capital Ratios](index=14&type=section&id=Capital%20Ratios) The company maintained strong capital positions, with all key capital ratios showing slight improvements or stability quarter-over-quarter, indicating continued financial strength Bancorp Capital Ratios | Capital Ratio | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :------------------------ | :----------- | :----------- | :----------- | | Tier 1 Leverage | 9.52% | 9.48% | 9.17% | | Common Equity Tier 1 | 11.60% | 11.42% | 11.15% | | Tier 1 Risk-Based Capital | 11.77% | 11.59% | 11.33% | | Total Risk-Based Capital | 14.07% | 13.89% | 13.58% | [Cash Dividend Declaration](index=9&type=section&id=Cash%20Dividend%20Declaration) The Board of Directors declared a regular quarterly cash dividend of $0.12 per share, reflecting the company's well-capitalized status and expectation to maintain adequate capital levels - A regular quarterly cash dividend of **$0.12 per share** on common stock was declared on October 15, 2025[30](index=30&type=chunk) - The dividend is payable on November 14, 2025, to shareholders of record as of October 31, 2025[30](index=30&type=chunk) - The Company continues to be well capitalized and expects to maintain adequate capital levels[30](index=30&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) This section provides essential information about Community West Bancshares, including its overview, board of directors, and contact details [Company Overview](index=9&type=section&id=Company%20Overview) Community West Bancshares, established in 1979, operates through its subsidiary Community West Bank, providing a range of banking services across Central California with a focus on supporting businesses and communities - Community West Bancshares (NASDAQ: CWBC) and its subsidiary, Community West Bank, are headquartered in Fresno, California[31](index=31&type=chunk) - The Bank operates full-service Banking Centers throughout Central California, offering Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking, and Cash Management[31](index=31&type=chunk) [Board of Directors](index=9&type=section&id=Board%20of%20Directors) The report lists the members of the Company and Bank Board of Directors, including key executive roles such as Chairman, Vice Chairman, CEO, and President - Key board members include Daniel J. Doyle (Chairman), Robert H. Bartlein (Vice Chairman), James J. Kim (CEO of the Company and President and CEO of the Bank), and Martin E. Plourd (President of the Company)[32](index=32&type=chunk) [Contact Information](index=16&type=section&id=Contact%20Information) Contact details for investor and media inquiries are provided, including the Executive Vice President, Chief Financial Officer, and Public Relations - Investor contact: Shannon Livingston, Executive Vice President, Chief Financial Officer, Community West Bancshares (916-235-4617)[51](index=51&type=chunk) - Media contact: Debbie Nalchajian-Cohen, Public Relations (559-222-1322)[51](index=51&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section includes a disclaimer regarding forward-looking statements, outlining the inherent risks and uncertainties that could cause actual results to differ materially from projections [Disclaimer on Forward-Looking Statements](index=10&type=section&id=Disclaimer%20on%20Forward-Looking%20Statements) The report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from projections, including economic conditions, interest rate changes, credit quality, and regulatory compliance. Readers are cautioned not to place undue reliance on these statements, which are valid only as of their making - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections[35](index=35&type=chunk) - Key risks include current and future business, economic and market conditions, inflationary pressures, changes in interest rates, geopolitical developments, credit quality, liquidity issues, and regulatory requirements[35](index=35&type=chunk) - The company does not undertake any obligation to update or review any forward-looking statement[36](index=36&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section presents the company's detailed financial statements, including consolidated balance sheets, income statements, and key financial ratios [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' equity at various reporting dates Consolidated Balance Sheet Highlights (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Total Assets | $3,612.264 | $3,521.771 | $3,531.298 | | Total Deposits | $3,075.931 | $2,910.777 | $2,921.695 | | Total Liabilities | $3,214.688 | $3,159.086 | $3,167.783 | | Total Shareholders' Equity | $397.576 | $362.685 | $363.515 | [Consolidated Statements of Income](index=12&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income present the company's financial performance over the three and nine months ended September 30, 2025 and 2024, detailing interest income, interest expense, non-interest income, non-interest expenses, and net income Consolidated Statements of Income Highlights (in millions) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :---------------------------------------- | :--------- | :--------- | :--------- | :--------- | | Total Interest Income | $46.888 | $45.285 | $138.052 | $114.909 | | Total Interest Expense | $11.944 | $15.071 | $37.621 | $36.566 | | Net Interest Income before provision | $34.944 | $30.214 | $100.431 | $78.343 | | Provision (credit) for credit losses | $0.667 | $(0.518) | $3.239 | $9.889 | | Total Non-Interest Income | $2.966 | $1.105 | $7.941 | $4.142 | | Total Non-Interest Expenses | $22.167 | $27.677 | $67.934 | $71.513 | | Net Income | $10.873 | $3.385 | $26.998 | $0.771 | | Diluted Earnings Per Common Share | $0.57 | $0.18 | $1.42 | $0.05 | [Condensed Consolidated Statements of Income (Quarterly)](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Quarterly)) This section provides a condensed view of the company's quarterly income statement, allowing for a quick comparison of performance across recent quarters Condensed Quarterly Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $34.944 | $33.304 | $32.182 | $32.024 | $30.214 | | Provision (credit) for credit losses | $0.667 | $2.613 | $(0.041) | $1.224 | $(0.518) | | Total non-interest income | $2.966 | $2.364 | $2.611 | $2.303 | $1.105 | | Total non-interest expense | $22.167 | $22.296 | $23.470 | $23.188 | $27.677 | | Net income | $10.873 | $7.832 | $8.293 | $6.895 | $3.385 | | Diluted earnings per common share | $0.57 | $0.41 | $0.44 | $0.36 | $0.18 | [Selected Ratios](index=14&type=section&id=Selected%20Ratios) This section provides key financial ratios, offering insights into the company's asset quality, profitability, efficiency, and capital adequacy over several quarters Key Financial Ratios | Ratio | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Allowance for credit losses to total loans| 1.21% | 1.20% | 1.11% | 1.11% | 1.08% | | Non-performing assets to total assets | 0.20% | 0.20% | 0.20% | 0.18% | 0.09% | | Net interest margin | 4.20% | 4.10% | 4.04% | 3.95% | 3.69% | | Return on average assets | 1.21% | 0.88% | 0.94% | 0.78% | 0.38% | | Return on average equity | 11.25% | 8.30% | 8.97% | 7.55% | 3.84% | | Efficiency ratio | 58.47% | 62.51% | 67.38% | 67.55% | 88.37% | | Tier 1 leverage - Bancorp | 9.52% | 9.48% | 9.36% | 9.17% | 9.38% | [Schedule of Average Balances and Average Yields and Rates (Quarterly)](index=15&type=section&id=Schedule%20of%20Average%20Balances%20and%20Average%20Yields%20and%20Rates%20(Quarterly)) This schedule details the average balances of interest-earning assets and interest-bearing liabilities, along with their corresponding interest income/expense and average rates for recent quarters, providing a comprehensive view of net interest margin drivers Average Balances and Yields/Rates (Q3 2025 vs Q3 2024) | Metric | Q3 2025 Average Balance (millions) | Q3 2025 Average Rate | Q3 2024 Average Balance (millions) | Q3 2024 Average Rate | | :---------------------------------------- | :---------------------- | :------------------- | :---------------------- | :------------------- | | Total Interest-Earning Assets | $3,333.432 | 5.62% | $3,292.643 | 5.52% | | Total Interest-Bearing Liabilities | $2,063.735 | 2.30% | $2,047.083 | 2.93% | | Net Interest Margin | - | 4.20% | - | 3.69% | - The average interest rate on total interest-bearing deposits decreased from **2.69%** in Q3 2024 to **2.17%** in Q3 2025[47](index=47&type=chunk) [Schedule of Average Balances and Average Yields and Rates (Year-to-Date)](index=16&type=section&id=Schedule%20of%20Average%20Balances%20and%20Average%20Yields%20and%20Rates%20(Year-to-Date)) This schedule provides year-to-date average balances, interest income/expense, and average rates for interest-earning assets and interest-bearing liabilities, facilitating a comparison of performance over longer periods Average Balances and Yields/Rates (YTD Sep 30, 2025 vs YTD Sep 30, 2024) | Metric | YTD 2025 Average Balance (millions) | YTD 2025 Average Rate | YTD 2024 Average Balance (millions) | YTD 2024 Average Rate | | :---------------------------------------- | :----------------------- | :-------------------- | :----------------------- | :-------------------- | | Total Interest-Earning Assets | $3,296.089 | 5.64% | $2,878.474 | 5.38% | | Total Interest-Bearing Liabilities | $2,095.945 | 2.40% | $1,722.415 | 2.83% | | Net Interest Margin | - | 4.12% | - | 3.69% | - Average loans increased significantly year-to-date, from **$1,869.985 million** in 2024 to **$2,367.824 million** in 2025, contributing to higher interest income[49](index=49&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-31977 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-0539125 (State or other jurisd ...

FOR IMMEDIATE RELEASE COMMUNITY WEST BANCSHARES REPORTS EARNINGS RESULTS FOR THE QUARTER ENDED JUNE 30, 2025, QUARTERLY DIVIDEND, AND SHARE REPURCHASE PROGRAM FRESNO, CALIFORNIA...July 17, 2025...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 $7,832,000, and diluted earnings per share of $0.41 for the three months ended June 30, 2025, compared to a net loss of $6,290,000 a ...

Core Points - The Wonderful Company has launched its $1 million Wonderful Central Valley Community Grants application period, continuing its philanthropic efforts in the San Joaquin Valley [1][3] - Over the past decade, the company and its co-owners have awarded more than $8.5 million in grants to over 142 nonprofits and 165 schools in the region [1][7] - The grants support initiatives in health and wellness, education, recreation, community beautification, art, and social services [2][8] Funding and Application Details - Each year, The Wonderful Company invests over $35 million in community development, education, and health and wellness initiatives across the Central Valley [3][9] - Organizations can apply for grants of up to $50,000 for one year and up to $100,000 for two years [8] - Applications must be submitted by midnight PDT on August 31, with recipients announced in October 2025 [5][8] Community Impact - The Wonderful Community Grants program aims to support essential programs in rural communities facing financial uncertainty [4] - The program encourages applications from organizations serving specific communities in the Central Valley, including Avenal, Delano, and Wasco [4][8] - The Wonderful Company has invested over $2.5 billion in various initiatives, emphasizing its commitment to the Central Valley and beyond [9]

PART 1: FINANCIAL INFORMATION [Item 1: Financial Statements (Unaudited)](index=5&type=section&id=Item%201%3A%20Financial%20Statements%20%28Unaudited%29) This section presents Community West Bancshares' unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Income, Equity, and Cash Flows, with detailed accounting notes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached **$3.55 billion**, up from **$3.52 billion**, with liabilities at **$3.18 billion** and shareholders' equity at **$372.2 million** Consolidated Balance Sheet Highlights (USD in thousands) | Account | March 31, 2025 (USD in thousands) | December 31, 2024 (USD in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$3,553,086** | **$3,521,771** | | Total Cash and Cash Equivalents | $148,392 | $120,398 | | Loans, net | $2,320,802 | $2,308,418 | | Total Deposits | $2,928,678 | $2,910,777 | | **Total Liabilities** | **$3,180,889** | **$3,159,086** | | **Total Shareholders' Equity** | **$372,197** | **$362,685** | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2025, net income rose to **$8.3 million** (EPS **$0.44**) from **$3.7 million** (EPS **$0.31**) in Q1 2024, driven by a substantial increase in net interest income to **$32.2 million** Q1 2025 vs Q1 2024 Income Statement (USD in thousands, except per-share data) | Metric | Q1 2025 (USD in thousands) | Q1 2024 (USD in thousands) | | :--- | :--- | :--- | | Total Interest Income | $45,138 | $25,627 | | Net Interest Income | $32,182 | $19,073 | | **Net Income** | **$8,293** | **$3,676** | | **Diluted EPS** | **$0.44** | **$0.31** | | Cash Dividend per Share | $0.12 | $0.12 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash from operating activities was **$11.1 million**, investing provided **$0.8 million**, and financing **$16.1 million**, resulting in a **$28.0 million** net increase in cash and cash equivalents Cash Flow Summary for Three Months Ended March 31 (USD in thousands) | Cash Flow Activity | 2025 (USD in thousands) | 2024 (USD in thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $11,067 | $4,023 | | Net Cash from Investing Activities | $804 | $27,919 | | Net Cash from Financing Activities | $16,123 | $(24,711) | | **Net Increase in Cash** | **$27,994** | **$7,231** | | Cash at End of Period | $148,392 | $60,959 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial components, including the April 2024 merger that created **$43 million** in goodwill, and cover investment/loan portfolios, ACL, deposits, borrowings, and fair value measurements - Effective April 1, 2024, Central Valley Community Bancorp merged with Community West Bancshares, accounted for using the acquisition method, resulting in **$43.05 million** of goodwill[37](index=37&type=chunk)[41](index=41&type=chunk) - The company's loan portfolio is concentrated in commercial real estate, which constitutes the majority of its lending activities, and it operates as one reportable segment: banking operations[30](index=30&type=chunk) - On April 16, 2025, the Board of Directors declared a **$0.12** per share cash dividend[133](index=133&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=40&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20%28MD%26A%29) Management discusses Q1 2025 financial performance, highlighting **$8.3 million** net income and a **4.04%** net interest margin, covering the April 2024 merger's impact, net interest income, credit quality, non-interest items, and overall financial condition, with strong capital ratios [Financial Highlights](index=42&type=section&id=Financial%20Highlights) For Q1 2025, the company reported strong financial results, with net income of **$8.3 million** (EPS **$0.44**), a **4.04%** net interest margin, total assets of **$3.55 billion**, and robust capital ratios including a **9.36%** Tier 1 Leverage Ratio Key Performance Metrics - Q1 2025 (USD) | Metric | Value | | :--- | :--- | | Net Income | $8.3 million | | Diluted EPS | $0.44 | | Net Interest Margin | 4.04% | | Total Assets | $3.55 billion | | Total Gross Loans | $2.35 billion | | Total Deposits | $2.9 billion | | Tier 1 Leverage Ratio | 9.36% | | Total Risk-Based Capital Ratio | 13.82% | [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Net income for Q1 2025 was **$8.3 million**, up from **$3.7 million** in Q1 2024, primarily due to a **68.7%** increase in net interest income to **$32.2 million** post-merger, alongside rises in non-interest income and expenses Net Interest Income and Margin (Q1 2025 vs Q1 2024, USD in thousands) | Metric | Q1 2025 (USD in thousands) | Q1 2024 (USD in thousands) | | :--- | :--- | :--- | | Net Interest Income (tax-equivalent) | $32,530 | $19,445 | | Net Interest Margin (tax-equivalent) | 4.04% | 3.42% | | Yield on Earning Assets | 5.65% | 4.58% | | Cost of Interest-Bearing Liabilities | 2.48% | 2.11% | - The increase in net interest income was significantly impacted by the April 1, 2024 merger, which added a substantial volume of loans and deposits[155](index=155&type=chunk)[165](index=165&type=chunk) Non-Interest Income & Expense Changes (Q1 2025 vs Q1 2024, USD in thousands) | Category | Q1 2025 (USD in thousands) | Q1 2024 (USD in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Income | $2,611 | $1,636 | 59.6% | | Total Non-Interest Expense | $23,470 | $15,333 | 53.1% | [Financial Condition](index=49&type=section&id=Financial%20Condition) As of March 31, 2025, total assets were **$3.55 billion**, with gross loans at **$2.35 billion** (56.3% in commercial real estate) and deposits at **$2.93 billion**; nonperforming assets were **$6.9 million**, and shareholders' equity reached **$372.2 million**, indicating strong capital and liquidity - Total gross loans increased by **$12.7 million** (**0.54%**) during Q1 2025 to **$2.35 billion**[184](index=184&type=chunk) - A concentration exists in commercial real estate loans, representing **56.3%** of the total loan portfolio as of March 31, 2025[185](index=185&type=chunk) Capital Ratios (Company) | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tier 1 Leverage Ratio | 9.36% | 9.18% | | CET 1 Ratio | 11.39% | 12.78% | | Tier 1 Risk-Based Capital | 11.57% | 13.07% | | Total Risk-Based Capital | 13.82% | 16.08% | [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by ALCO to minimize exposure of net interest margin and equity to rate changes; as of March 31, 2025, risk was within policy, with a **100 bps** rate increase projected to raise net interest income by **2.46%** in year one, and a **100 bps** decrease lowering it by **2.26%** Interest Rate Sensitivity Analysis (Estimated Change in Net Interest Income) | Rate Shift (bps) | Year 1 Change | Year 2 Change | | :--- | :--- | :--- | | +400 | 2.93% | 4.33% | | +200 | 2.38% | 3.30% | | +100 | 2.46% | 3.31% | | -100 | (2.26)% | (3.46)% | | -200 | (3.71)% | (5.74)% | - The company manages interest rate risk by structuring assets and liabilities to correlate the effects of rate changes, with the ALCO and Board reviewing this exposure at least quarterly[213](index=213&type=chunk)[214](index=214&type=chunk) [Item 4: Controls and Procedures](index=56&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the quarter-end, ensuring timely information for SEC filings, with no material changes to internal controls over financial reporting during the period - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[216](index=216&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[217](index=217&type=chunk) PART II: OTHER INFORMATION [Item 1: Legal Proceedings](index=56&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings and claims, but management believes the ultimate liability will not materially affect its financial position or results - The company reports no material legal proceedings outside the ordinary course of business[107](index=107&type=chunk)[219](index=219&type=chunk) [Item 1A: Risk Factors](index=56&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes from the risk factors disclosed in the 2024 Form 10-K have been reported[220](index=220&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company had nothing to report under this item for the period - None to report[221](index=221&type=chunk) [Item 6: Exhibits](index=58&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications, XBRL data files, and incorporates by reference articles of incorporation and bylaws from previous filings - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL interactive data files[225](index=225&type=chunk)

[Financial Highlights and Overview](index=1&type=section&id=Financial%20Highlights%20and%20Overview) Community West Bancshares reported strong Q1 2025 financial results, demonstrating significant growth in profitability and maintaining robust capital positions [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Community West Bancshares reported strong Q1 2025 results, showcasing significant year-over-year and sequential growth in net income and EPS, alongside an increased net interest margin, loan growth, and robust capital Q1 2025 Key Financial Results (in millions) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $8.3 | $6.9 | $3.7 | | Diluted EPS | $0.44 | $0.36 | $0.31 | | Net Interest Margin | 4.04% | 3.95% | 3.42% | | Gross Loans (QoQ Growth) | $12.7 | - | - | - The cost of deposits decreased to **1.45%** for Q1 2025 from **1.49%** in Q4 2024[5](index=5&type=chunk) - Capital ratios remain strong with a **Tier 1 Leverage Ratio of 9.36%** and a **Total Risk-Based Capital Ratio of 13.82%** as of March 31, 2025[5](index=5&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.12 per common share**, payable on May 16, 2025[5](index=5&type=chunk) - Management attributes the strong performance to the team's focus on client success, conservative business practices, and sequential improvements in earnings and net interest margin, building on the momentum from the largest merger in the company's history one year ago[4](index=4&type=chunk) [Results of Operations](index=2&type=section&id=Results%20of%20Operations) This section details the company's operational performance, including net interest income, non-interest income, and non-interest expenses, highlighting key drivers of profitability [Overview of Operations and Profitability](index=2&type=section&id=Overview%20of%20Operations%20and%20Profitability) The company's Q1 2025 net income significantly increased to **$8.3 million**, driven by higher net interest income, a credit provision for credit losses, and increased non-interest income, leading to substantial year-over-year improvements in ROAE and ROAA Profitability Metrics (in thousands) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $8,293 | $6,895 | $3,676 | | Diluted EPS | $0.44 | $0.36 | $0.31 | | Return on Average Equity (ROAE) | 8.97% | 7.55% | 7.08% | | Return on Average Assets (ROAA) | 0.94% | 0.78% | 0.61% | - The company provides non-GAAP measures to exclude merger and conversion-related costs, which management believes provides a better analysis of core operating results. For Q1 2025, comparable non-GAAP net income was **$8.5 million**, or **$0.45 per diluted share**[7](index=7&type=chunk)[8](index=8&type=chunk) [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income grew **68.7%** year-over-year to **$32.2 million** in Q1 2025, driven by loan growth and an expanded net interest margin of **4.04%**, with merger-related fair value accretion contributing **25 basis points** to NIM Net Interest Margin and Components (in thousands) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $32,182 | $32,024 | $19,073 | | Net Interest Margin (FTE) | 4.04% | 3.95% | 3.42% | | Yield on Interest Earning Assets | 5.65% | 5.59% | 4.58% | | Cost of Total Deposits | 1.45% | 1.49% | 0.98% | - The year-over-year increase in average loans was primarily due to the merger consummated on April 1, 2024[12](index=12&type=chunk) - Net interest income in Q1 2025 benefited by approximately **$2.05 million** (**25 basis points**) from the net accretion of fair value marks related to the merger[13](index=13&type=chunk) [Non-Interest Income](index=4&type=section&id=Non-Interest%20Income) Total non-interest income reached **$2.6 million** in Q1 2025, increasing **59.6%** year-over-year due to the merger and absence of security sale losses, with sequential growth driven by favorable fair value adjustments Non-Interest Income Components (in thousands) | Component | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Service charges | $502 | $456 | $384 | | Interchange fees | $516 | $436 | $405 | | Other income | $815 | $584 | $622 | | **Total Non-Interest Income** | **$2,611** | **$2,303** | **$1,636** | [Non-Interest Expense](index=5&type=section&id=Non-Interest%20Expense) Non-interest expense totaled **$23.5 million** in Q1 2025, increasing **53.1%** year-over-year primarily due to the merger, with a slight sequential rise driven by higher salaries, professional services, and IT investments Non-Interest Expense Components (in thousands) | Component | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $12,959 | $12,670 | $8,638 | | Occupancy and equipment | $2,827 | $2,826 | $1,543 | | Information technology | $1,902 | $1,712 | $1,021 | | Merger and acquisition expense | $276 | $467 | $383 | | **Total Non-Interest Expenses** | **$23,470** | **$23,188** | **$15,333** | - The quarter-over-quarter increase was driven by annual resets in payroll taxes, one-time severance payments, increased audit/consulting fees, and investments to enhance digital products[18](index=18&type=chunk) [Balance Sheet and Liquidity Analysis](index=6&type=section&id=Balance%20Sheet%20and%20Liquidity%20Analysis) This section provides an overview of the company's balance sheet, including asset and liability composition, loan and deposit trends, and its robust liquidity position [Balance Sheet Summary](index=6&type=section&id=Balance%20Sheet%20Summary) As of March 31, 2025, total assets reached **$3.55 billion**, reflecting a slight increase from year-end 2024 and significant year-over-year growth primarily due to the April 2024 merger Key Balance Sheet Items (in thousands) | Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,553,086 | $3,521,771 | | Gross Loans | $2,346,897 | $2,334,221 | | Total Deposits | $2,928,938 | $2,910,777 | | Total Shareholders' Equity | $371,937 | $362,685 | [Loan and Deposit Composition](index=7&type=section&id=Loan%20and%20Deposit%20Composition) At Q1 2025, the loan portfolio was predominantly real estate loans (**74.8%**), while total deposits increased slightly, with non-interest-bearing deposits decreasing to **34.6%** of the total, indicating a shift in deposit mix Loan Portfolio Composition as of March 31, 2025 (in thousands) | Loan Type | Amount | % of Total | | :--- | :--- | :--- | | Commercial | $174,781 | 7.4% | | Real estate | $1,755,841 | 74.8% | | Consumer | $414,391 | 17.7% | | **Total Gross Loans** | **$2,346,897** | **100.0%** | Deposit Composition as of March 31, 2025 (in thousands) | Deposit Type | Amount | % of Total | | :--- | :--- | :--- | | Non-interest bearing | $1,012,548 | 34.6% | | Interest-bearing | $1,916,390 | 65.4% | | **Total Deposits** | **$2,928,938** | **100.0%** | [Liquidity](index=8&type=section&id=Liquidity) The company maintains a strong liquidity position with total available sources of **$1.28 billion** as of March 31, 2025, comprising cash, unpledged securities, and significant borrowing availability to meet customer demand Liquidity Sources (in thousands) | Source | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $148,392 | $120,398 | | Unpledged investment securities | $361,254 | $403,669 | | FHLB borrowing availability | $589,261 | $576,556 | | Unsecured lines of credit availability | $110,000 | $110,000 | | **Total** | **$1,282,983** | **$1,284,317** | [Credit Quality](index=8&type=section&id=Credit%20Quality) This section analyzes the company's credit quality, including loan loss allowances, net charge-offs/recoveries, and the distribution of loan risk ratings [Credit Quality Analysis](index=8&type=section&id=Credit%20Quality%20Analysis) Credit quality remained stable in Q1 2025, marked by net loan recoveries of **$125,000** and an unchanged allowance for credit losses at **1.11%** of total loans, despite a slight increase in substandard loans - The allowance for credit losses (ACL) as a percentage of total loans was **1.11%** at both March 31, 2025, and December 31, 2024[28](index=28&type=chunk) - The company recorded net loan recoveries of **$125,000** in Q1 2025, compared to net charge-offs of **$525,000** in Q1 2024[27](index=27&type=chunk) Loan Risk Rating (% of Total) | Rating | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Pass | 97.3% | 97.4% | 98.1% | | Special mention | 0.7% | 0.7% | 0.4% | | Substandard | 2.0% | 1.9% | 1.6% | [Shareholder and Company Information](index=9&type=section&id=Shareholder%20and%20Company%20Information) This section covers the company's recent cash dividend declaration and provides an overview of its corporate structure following the recent merger [Cash Dividend and Company Overview](index=9&type=section&id=Cash%20Dividend%20and%20Company%20Overview) The company declared a quarterly cash dividend of **$0.12 per share** and provided an overview of its corporate structure following the April 1, 2024 merger with Central Valley Community Bancorp - On April 16, 2025, the Board of Directors declared a regular quarterly cash dividend of **$0.12 per share**, payable on May 16, 2025, to shareholders of record as of May 2, 2025[29](index=29&type=chunk) - Effective April 1, 2024, Central Valley Community Bancorp merged with Community West Bancshares. The surviving entities were renamed Community West Bancshares and Community West Bank[30](index=30&type=chunk) [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements, including balance sheets, income statements, selected ratios, and average balance schedules [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) The unaudited consolidated balance sheet as of March 31, 2025, reports total assets of **$3.55 billion**, total liabilities of **$3.18 billion**, and total shareholders' equity of **$371.9 million**, with key assets including **$2.32 billion** in net loans Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total cash and cash equivalents | $148,392 | $120,398 | | Loans, net | $2,320,802 | $2,308,418 | | Total assets | $3,553,086 | $3,521,771 | | Total deposits | $2,928,938 | $2,910,777 | | Total liabilities | $3,181,149 | $3,159,086 | | Total shareholders' equity | $371,937 | $362,685 | [Consolidated Statements of Income](index=12&type=section&id=Consolidated%20Statements%20of%20Income) The unaudited consolidated income statement for Q1 2025 shows a net income of **$8.29 million**, derived from **$45.1 million** in total interest income and **$13.0 million** in total interest expense, yielding **$32.2 million** in net interest income Consolidated Income Statement Highlights (in thousands) | Account | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $32,182 | $32,024 | $19,073 | | (Credit) Provision for credit losses | ($41) | $1,224 | $575 | | Total non-interest income | $2,611 | $2,303 | $1,636 | | Total non-interest expenses | $23,470 | $23,188 | $15,333 | | Net income | $8,293 | $6,895 | $3,676 | [Selected Ratios and Quarterly Data](index=13&type=section&id=Selected%20Ratios%20and%20Quarterly%20Data) This section presents key performance and financial ratios over the last five quarters, highlighting trends in profitability, credit quality, capital adequacy, and operational efficiency, demonstrating a strong recovery since mid-2024 Five-Quarter Selected Ratios | Ratio | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Allowance for credit losses to total loans | 1.11% | 1.11% | 1.14% | | Net interest margin (FTE) | 4.04% | 3.95% | 3.42% | | Return on average assets (ROAA) | 0.94% | 0.78% | 0.61% | | Return on average equity (ROAE) | 8.97% | 7.55% | 7.08% | | Efficiency ratio | 67.38% | 67.55% | 74.04% | | Tier 1 leverage - Bancorp | 9.36% | 9.17% | 9.34% | [Schedule of Average Balances and Yields](index=14&type=section&id=Schedule%20of%20Average%20Balances%20and%20Yields) This schedule details average asset and liability balances for Q1 2025 and prior quarters, showing an average loan yield of **6.69%** and an average cost of interest-bearing liabilities of **2.48%**, contributing to a net interest margin of **4.04%** Average Balances, Yields, and Rates (Q1 2025) (in thousands) | Category | Average Balance | Average Rate | | :--- | :--- | :--- | | Total interest-earning assets | $3,263,483 | 5.65% | | Loans | $2,327,832 | 6.69% | | Total interest-bearing liabilities | $2,115,718 | 2.48% | | Total interest-bearing deposits | $1,909,556 | 2.21% | | Net interest margin | - | 4.04% |

Part I [ITEM 1 - DESCRIPTION OF BUSINESS](index=5&type=section&id=ITEM%201%20-%20DESCRIPTION%20OF%20BUSINESS) Community West Bancshares, a bank holding company, expanded its Central California footprint via a 2024 merger, offering diverse commercial banking services with a real estate-heavy loan portfolio, operating under extensive federal and state regulations [General Overview](index=5&type=section&id=General) Central Valley Community Bancorp merged with Community West Bancshares on April 1, 2024, adopting its name and operating as a bank holding company with **$3.52 billion** in total assets - Central Valley Community Bancorp completed its merger with Community West Bancshares on April 1, 2024, and changed its name to Community West Bancshares[15](index=15&type=chunk) - The company is a registered bank holding company for its wholly-owned subsidiary, Community West Bank[16](index=16&type=chunk) Company Snapshot (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Consolidated Total Assets | ~$3.52 billion | | Full-time Equivalent Employees (as of Mar 1, 2025) | 346 | [The Bank's Operations](index=5&type=section&id=The%20Bank) Community West Bank operates 26 California offices, offering diverse commercial banking services, with its **$2.33 billion** loan portfolio heavily concentrated (**74.3%**) in real estate as of December 31, 2024 - The Bank operates 26 full-service banking offices in California, offering commercial banking, real estate, agribusiness, and SBA lending services[21](index=21&type=chunk) Loan Portfolio Composition (as of Dec 31, 2024) | Loan Category | Amount (in thousands) | | :--- | :--- | | Total Loans | $2,334,221 | | Commercial and Industrial | $143,422 | | Agricultural Land and Production | $37,323 | | Real Estate | $1,736,498 | | Consumer | $415,102 | - The loan portfolio is heavily concentrated in real estate, with loans secured by real estate comprising approximately **74.3% of the total portfolio** held for investment at year-end 2024[24](index=24&type=chunk) - The bank's business is primarily concentrated in Fresno, Kern, Madera, Merced, Placer, Sacramento, San Joaquin, San Luis Obispo, Santa Barbara, Stanislaus, Tulare, and Ventura Counties in California, making its performance dependent on the local economy and real estate markets[24](index=24&type=chunk) [Competition](index=6&type=section&id=Competition) Operating in a highly competitive California banking market, the company competes with large national banks and non-bank entities through personalized service, holding a relatively small market share - The banking business in California is highly competitive, dominated by a few major banks with significant advantages in advertising and asset allocation[25](index=25&type=chunk) Deposit Market Share (2024) | County Group | Market Share | | :--- | :--- | | Fresno, Madera, San Joaquin, Tulare | 4.10% | | San Luis Obispo, Santa Barbara, Ventura | 1.61% | | Other Counties (Kern, Merced, Placer, etc.) | < 1.00% | - Competition has intensified due to technological innovation, allowing non-depository institutions to offer traditional banking products, and legislative changes permitting interstate banking[29](index=29&type=chunk)[30](index=30&type=chunk) [Human Capital Resources](index=7&type=section&id=Human%20Capital%20Resources) As of December 31, 2024, the company employed 346 full-time staff (**72% female**, **4.58 years** average tenure), fostering teamwork and offering competitive benefits to attract and retain talent Workforce Demographics (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Total Employees | 356 | | Full-time Employees | 346 | | Female Workforce | 72% | | Male Workforce | 28% | | Average Tenure | 4.58 years | - The company offers a comprehensive benefits package, including an Employee Stock Ownership Plan, a matched 401(k) Plan, healthcare benefits, paid time off, and an education reimbursement program to attract and retain employees[34](index=34&type=chunk) [Supervision and Regulation](index=7&type=section&id=Supervision%20and%20Regulation) The company and its bank subsidiary operate under extensive federal and state regulations, primarily for depositor protection, covering capital, lending, dividends, and consumer privacy - The Company is regulated by the Federal Reserve, while the Bank is regulated by the California Department of Financial Protection and Innovation (DFPI) and the FDIC[18](index=18&type=chunk)[37](index=37&type=chunk) - Federal and state banking laws impose a comprehensive system of supervision intended primarily for the protection of the FDIC's Deposit Insurance Fund and bank customers, not shareholders[38](index=38&type=chunk) - The regulatory framework subjects the company to regular examinations that assess compliance, capital levels, asset quality, management, earnings, and liquidity[39](index=39&type=chunk) [ITEM 1A - RISK FACTORS](index=17&type=section&id=ITEM%201A%20-%20RISK%20FACTORS) The company faces diverse risks including economic downturns in its agriculture-dependent Central California markets, interest rate fluctuations, credit risks from real estate and agribusiness lending, cybersecurity threats, and intense competition [General Economic, Market, Investment Risks](index=17&type=section&id=General%20Economic%2C%20Market%2C%20Investment%20Risks) The company's performance is highly dependent on Central California's agriculture-reliant economy, facing risks from inflation, Federal Reserve policy changes, heightened liquidity scrutiny, and unrealized losses in its securities portfolio - The company's banking operations are principally in Central California, a region largely dependent on agriculture. A downturn in the agricultural economy could have a material adverse effect on the business[112](index=112&type=chunk) - Recent bank failures have led to increased focus on liquidity management, the composition of deposits (especially uninsured amounts), and interest rate risk. An inability to manage these factors could materially harm financial condition[116](index=116&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - As of December 31, 2024, the company had a net unrealized loss of **$59,221,000** on its available-for-sale investment securities portfolio, which totaled **$785,058,000**, or **22.3% of total assets**[122](index=122&type=chunk) [Risks Related to Lending Activities](index=19&type=section&id=Risks%20Related%20to%20our%20Lending%20Activities) Lending risks include agribusiness (**1.6% of portfolio**) and a significant concentration (**74.3%**) in California real estate loans, alongside higher-risk commercial loans (**6.1%**) and dependence on the SBA program - At December 31, 2024, **74.3% of the total loan portfolio** (**$1.74 billion**) consisted of real estate related loans concentrated in California, exposing the company to risks from local economic conditions and real estate value fluctuations[127](index=127&type=chunk) - Agribusiness loans, totaling **$37.3 million** (**1.6% of the portfolio**), present unique risks related to commodity prices, weather, and government regulations[126](index=126&type=chunk) - The SBA lending program is an important part of the business and is dependent on the U.S. federal government. Loss of SBA Preferred Lender status or changes to the program could materially harm financial results[130](index=130&type=chunk) [Credit Risks](index=21&type=section&id=Credit%20Risks) The company faces inherent credit risk, with its **1.11%** allowance for credit losses potentially insufficient, and increased non-performing assets (**0.18% of total assets**) posing a threat to net income - The allowance for credit losses on loans was **1.11% of total loans** at December 31, 2024. This allowance is an estimate and may be insufficient to cover actual future losses, which could materially affect financial results[134](index=134&type=chunk) Non-Performing Assets (NPA) Trend | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Non-performing loans to total loans | 0.28% | 0.00% | | Non-performing assets to total assets | 0.18% | 0.00% | - Lending to small and mid-sized businesses may increase credit risk, as these borrowers are often more vulnerable to adverse economic conditions[139](index=139&type=chunk) [Strategic Risks](index=23&type=section&id=Strategic%20Risks) Strategic risks include inability to sustain growth, integration challenges and dilution from acquisitions, potential goodwill impairment, and uncertainties associated with branch expansion and new business lines - The company may not be able to sustain its historical rate of asset growth due to economic conditions, competition, or an inability to find suitable acquisition candidates[145](index=145&type=chunk) - Future acquisitions involve significant risks, including integration challenges, loss of key employees, and unforeseen liabilities that could negatively affect the organization[146](index=146&type=chunk)[147](index=147&type=chunk) - Goodwill from past acquisitions is reviewed for impairment annually. A future impairment charge could have a material adverse effect on financial condition and results of operations[150](index=150&type=chunk) [ITEM 1C - CYBERSECURITY](index=31&type=section&id=ITEM%201C%20-%20CYBERSECURITY) The company manages cybersecurity risks through a formal Information Security Program and Incident Response Plan, overseen by the ISO and Board, with ongoing third-party assessments and increasing regulatory scrutiny - The company manages cybersecurity risk through a formal Information Security Program, which includes a dedicated Cybersecurity Incident Response Plan (CIRP)[194](index=194&type=chunk) - The Information Security Officer (ISO) oversees the program, reporting to the Senior Risk Officer and providing annual reports to the Board of Directors. The Board has ultimate oversight of cybersecurity-related risk[198](index=198&type=chunk)[201](index=201&type=chunk) - The company is subject to new SEC rules requiring disclosure of material cybersecurity incidents within four business days of determination[204](index=204&type=chunk) - To date, risks from cybersecurity threats have not materially affected the company, though it has experienced incidents in the past[203](index=203&type=chunk) Part II [ITEM 5 - MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=33&type=section&id=ITEM%205%20-%20MARKET%20FOR%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on Nasdaq (**CWBC**), paid **$0.48** dividends in 2024, with future dividends subject to regulatory policy, and utilizes equity compensation plans - The company's common stock is listed on the Nasdaq Capital Market under the ticker symbol **CWBC**[213](index=213&type=chunk) Dividend Information | Year | Cash Dividend per Share | | :--- | :--- | | 2024 | $0.48 | | 2023 | $0.48 | - The company's ability to pay dividends is influenced by Federal Reserve policy, which requires that holding companies act as a source of strength to their banking subsidiaries and generally pay dividends only out of recent income[214](index=214&type=chunk) - No shares were repurchased under publicly announced plans during the fourth quarter of 2024[218](index=218&type=chunk)[219](index=219&type=chunk) [ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=36&type=section&id=ITEM%207-%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The 2024 merger significantly increased assets and loans but sharply reduced net income to **$7.7 million** due to **$20.5 million** in merger-related expenses, while net interest margin improved and capital ratios remained strong [Overview](index=36&type=section&id=Overview) The 2024 merger significantly boosted assets and loans but reduced net income to **$7.7 million** due to one-time expenses, while net interest margin improved and capital ratios remained strong Key Financial Highlights (2024 vs. 2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Income | $7,666,000 | $25,536,000 | | Diluted EPS | $0.45 | $2.17 | | Total Assets | $3.52 billion | $2.43 billion | | Net Loans | $2.33 billion | $1.29 billion | | Total Deposits | $2.91 billion | $2.04 billion | | Net Interest Margin | 3.76% | 3.58% | | Return on Average Assets (ROA) | 0.24% | 1.04% | | Return on Average Equity (ROE) | 2.42% | 13.81% | - The decrease in 2024 net income was primarily due to merger-related expenses of **$20,491,000**, which included a one-time provision of **$10,877,000** for expected credit losses on the acquired loan portfolio[236](index=236&type=chunk) - Capital ratios remain strong, with a Tier 1 Leverage Ratio of **9.17%** and a Total Risk-Based Capital Ratio of **13.58%** at December 31, 2024[237](index=237&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Net income for 2024 decreased to **$7.7 million** due to a **$39.4 million** surge in non-interest expenses and an **$11.1 million** provision for credit losses, despite a **33.9%** increase in net interest income Consolidated Results of Operations (in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Interest Income | $110,367 | $82,429 | $79,566 | | Provision for Credit Losses | $11,113 | $309 | $995 | | Total Non-interest Income | $6,445 | $7,020 | $5,054 | | Total Non-interest Expenses | $94,701 | $55,300 | $48,484 | | Net Income | $7,666 | $25,536 | $26,645 | - Non-interest expenses increased by **$39.4 million** (**71.25%**) in 2024, driven by the merger. Key increases were in salaries and benefits (**+$17.1M**), merger-related expenses (**+$8.4M**), and occupancy (**+$3.8M**)[241](index=241&type=chunk)[285](index=285&type=chunk) - Net interest income before provision for credit losses increased by **$27.9 million** (**33.9%**) in 2024, primarily due to increased loan volume and rates from the merger. This includes **$9.8 million** from the accretion of loan marks on acquired loans[239](index=239&type=chunk)[276](index=276&type=chunk) - The company's efficiency ratio deteriorated to **81.07%** in 2024 from **61.82%** in 2023, primarily due to the surge in merger-related operating expenses[252](index=252&type=chunk) [Financial Condition](index=47&type=section&id=FINANCIAL%20CONDITION) As of December 31, 2024, total assets grew **44.7%** to **$3.52 billion** due to the merger, with strong capital ratios and robust liquidity despite a decrease in the investment portfolio Balance Sheet Summary (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Total cash and cash equivalents | $120,398 | $53,728 | | Total loans, net | $2,308,418 | $1,276,144 | | Goodwill | $96,828 | $53,777 | | **Total Assets** | **$3,521,771** | **$2,433,426** | | **Liabilities & Equity** | | | | Total deposits | $2,910,777 | $2,041,612 | | Borrowings | $133,442 | $80,000 | | **Total Liabilities** | **$3,159,086** | **$2,226,362** | | **Total Shareholders' Equity** | **$362,685** | **$207,064** | - The loan to deposit ratio increased to **80.19%** at year-end 2024 from **63.22%** at year-end 2023[249](index=249&type=chunk) - The allowance for credit losses (ACL) increased to **$25.8 million** (**1.11% of loans**) from **$14.7 million** (**1.14% of loans**) in 2023, primarily due to a one-time provision of **$10.9 million** for acquired non-PCD loans[338](index=338&type=chunk)[340](index=340&type=chunk) - The company's liquidity position is strong, with liquid assets of **$604.1 million** and available borrowing capacity of approximately **$576.6 million** from the FHLB and **$110 million** from correspondent banks[254](index=254&type=chunk)[375](index=375&type=chunk) [ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=62&type=section&id=ITEM%207A-%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate volatility, managed by ALCO, with **58.09%** of loans adjustable-rate; simulation models show NII is relatively neutral to rate changes within policy limits - The company's primary market risk is interest rate volatility, which impacts net interest income. This risk is managed by the Asset/Liability Committee (ALCO)[387](index=387&type=chunk)[390](index=390&type=chunk) - As of December 31, 2024, approximately **58.09%** of the loan portfolio consisted of adjustable-rate loans[388](index=388&type=chunk)[403](index=403&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2024) | Hypothetical Rate Change | Estimated Change in NII (Year 1) | Estimated Change in MVE | | :--- | :--- | :--- | | Up 200 bps | +2.11% | -2.80% | | Up 100 bps | +2.37% | +0.20% | | Down 100 bps | -2.14% | -1.90% | | Down 200 bps | -3.38% | -3.40% | [ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=66&type=section&id=ITEM%208%20-%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements for 2024 and 2023, including balance sheets, income statements, and comprehensive notes detailing accounting policies, the 2024 merger, and key financial components [Consolidated Financial Statements](index=70&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets at **$3.52 billion** (up from **$2.43 billion** in 2023) and net income of **$7.7 million** (down from **$25.5 million**) for 2024, reflecting merger impacts Consolidated Balance Sheet Highlights (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Total cash and cash equivalents | $120,398 | $53,728 | | Total loans, net | $2,308,418 | $1,276,144 | | Goodwill | $96,828 | $53,777 | | **Total Assets** | **$3,521,771** | **$2,433,426** | | **Liabilities & Equity** | | | | Total deposits | $2,910,777 | $2,041,612 | | Borrowings | $133,442 | $80,000 | | **Total Liabilities** | **$3,159,086** | **$2,226,362** | | **Total Shareholders' Equity** | **$362,685** | **$207,064** | Consolidated Income Statement Highlights (in thousands) | | 2024 | 2023 | | :--- | :--- | :--- | | Net Interest Income | $110,367 | $82,429 | | Provision for Credit Losses | $11,113 | $309 | | Non-interest Income | $6,445 | $7,020 | | Non-interest Expenses | $94,701 | $55,300 | | **Net Income** | **$7,666** | **$25,536** | [Notes to Consolidated Financial Statements](index=76&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 2024 merger (**$43.1 million** goodwill), loan portfolio analysis (non-accrual loans at **$6.46 million**), and confirm the company's well-capitalized status - The company adopted the CECL methodology for credit losses on January 1, 2023, resulting in a **$3.7 million** decrease to retained earnings[470](index=470&type=chunk)[471](index=471&type=chunk) - The merger with Community West Bancshares on April 1, 2024, involved total consideration of **$143.7 million** and resulted in the creation of **$43.1 million** in goodwill[531](index=531&type=chunk)[532](index=532&type=chunk)[535](index=535&type=chunk) - Nonaccrual loans increased to **$6.46 million** as of December 31, 2024, from zero at the end of 2023[562](index=562&type=chunk)[563](index=563&type=chunk) Company Regulatory Capital Ratios (Dec 31, 2024) | Ratio | Actual | Minimum Requirement | | :--- | :--- | :--- | | Tier 1 Leverage | 9.17% | 4.00% | | Common Equity Tier 1 | 11.15% | 4.50% | | Tier 1 Risk-Based Capital | 11.33% | 6.00% | | Total Risk-Based Capital | 13.58% | 8.00% | [ITEM 9A - CONTROLS AND PROCEDURES](index=122&type=section&id=ITEM%209A%20-%20CONTROLS%20AND%20PROCEDURES) Management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes reported - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[686](index=686&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2024[688](index=688&type=chunk) - The independent auditor, Moss Adams LLP, issued an unqualified report on the effectiveness of the company's internal control over financial reporting[689](index=689&type=chunk) Part III [ITEMS 10-14](index=124&type=section&id=ITEMS%2010-14) Information for Items 10-14, covering directors, executive compensation, security ownership, and related transactions, is incorporated by reference from the forthcoming 2025 Proxy Statement - Information regarding directors, executive officers, corporate governance, executive compensation, security ownership, related transactions, and principal accounting fees is incorporated by reference from the forthcoming 2025 Proxy Statement[695](index=695&type=chunk)[698](index=698&type=chunk)[699](index=699&type=chunk) Part IV [ITEM 15 - EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=124&type=section&id=ITEM%2015%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists financial statements, schedules, and exhibits filed with the 10-K, including merger agreements, corporate documents, and various certifications - The financial statements are located in Part II, Item 8 of this report[703](index=703&type=chunk) - A comprehensive list of exhibits is provided, including the Agreement and Plan of Reorganization and Merger with Community West Bancshares, various employment agreements, and certifications required by the Sarbanes-Oxley Act[705](index=705&type=chunk)

[Financial Highlights](index=1&type=section&id=FINANCIAL%20HIGHLIGHTS) Community West Bancshares reported a transformative year in 2024, marked by a significant merger, with Q4 2024 net income rising to $6.9 million driven by an improved net interest margin of 3.95% and lower deposit costs - President and CEO James J. Kim described 2024 as a "**transformative chapter**" due to a merger that enhanced the company's team, expertise, territory, and technology offerings[3](index=3&type=chunk) Q4 2024 Key Performance Indicators | Metric | Value | Change vs. Q3 2024 | | :--- | :--- | :--- | | Net Income | $6.9 million | Increased from $3.4 million | | Diluted EPS | $0.36 | Increased from $0.18 | | Gross Loans | +$37.1 million | 6.46% annualized growth | | Cost of Deposits | 1.49% | Decreased from 1.69% | | Net Interest Margin | 3.95% | Increased from 3.69% | Capital Ratios as of December 31, 2024 | Ratio | Value | | :--- | :--- | | Tier 1 Leverage Ratio | 9.17% | | Common Equity Tier 1 Ratio | 11.15% | | Tier 1 Risk-Based Capital Ratio | 11.33% | | Total Risk-Based Capital Ratio | 13.58% | - A cash dividend of **$0.12 per common share** was declared, payable on February 21, 2025, to shareholders of record as of February 7, 2025[4](index=4&type=chunk) [Results of Operations](index=2&type=section&id=Results%20of%20Operations) The company's financial performance in Q4 2024 showed significant improvement over the prior quarter, driven by higher net interest income and reduced merger-related expenses, though full-year 2024 net income was substantially lower than 2023 due to a large provision for credit losses and merger-related non-interest expenses [Net Income and Earnings Per Share (EPS)](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) For Q4 2024, consolidated net income was $6.9 million ($0.36 diluted EPS), compared to $3.4 million ($0.18 diluted EPS) in Q3 2024, with full-year 2024 net income of $7.7 million ($0.45 diluted EPS) representing a steep decline from $25.5 million ($2.17 diluted EPS) in 2023 due to a large provision for credit losses and increased non-interest expenses from the merger Net Income and Diluted EPS Comparison | Period | Net Income (in thousands) | Diluted EPS | | :--- | :--- | :--- | | Q4 2024 | $6,895 | $0.36 | | Q3 2024 | $3,385 | $0.18 | | Q4 2023 | $5,893 | $0.50 | Full Year Net Income and Diluted EPS | Period | Net Income (in thousands) | Diluted EPS | | :--- | :--- | :--- | | FY 2024 | $7,666 | $0.45 | | FY 2023 | $25,536 | $2.17 | - The decrease in full-year 2024 earnings was primarily driven by a provision for credit losses of **$11.1 million** and a **$39.4 million** increase in non-interest expenses, largely from merger and acquisition activities[10](index=10&type=chunk) [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest margin (NIM) on a fully tax equivalent basis improved to 3.95% in Q4 2024, driven by a higher yield on interest-earning assets (5.59%) and a decrease in the cost of deposits to 1.49%, resulting in Q4 2024 net interest income of $32.0 million Net Interest Margin (NIM) Trend | Period | Net Interest Margin (FTE) | | :--- | :--- | | Q4 2024 | 3.95% | | Q3 2024 | 3.69% | | Q4 2023 | 3.52% | - The yield on interest-earning assets increased to **5.59%** in Q4 2024 from **4.51%** in Q4 2023, while the cost of total deposits increased to **1.49%** from **0.87%** over the same period[15](index=15&type=chunk) - Net interest income in Q4 2024 was positively impacted by approximately **24 basis points** (**$1.9 million**) from the net accretion of fair value marks on acquired loans[15](index=15&type=chunk) [Non-Interest Income](index=5&type=section&id=Non-Interest%20Income) Total non-interest income for Q4 2024 was $2.3 million, a significant increase from $1.1 million in Q3 2024 due to the absence of losses on sales of securities, though full-year non-interest income decreased to $6.4 million from $7.0 million in 2023 primarily due to higher net realized losses on investment securities sales Non-Interest Income Comparison (in thousands) | Period | Total Non-Interest Income | Net Realized Losses on Securities | | :--- | :--- | :--- | | Q4 2024 | $2,303 | $0 | | Q3 2024 | $1,105 | $(1,853) | | Q4 2023 | $2,267 | $(424) | - The increase in non-interest income in Q4 2024 compared to the trailing quarter was due to the absence of losses on security sales[18](index=18&type=chunk) - For the full year 2024, net realized losses on sales of investment securities increased by **363.0%** to **$4.2 million**, which was the primary driver for the **8.2%** decline in total annual non-interest income[18](index=18&type=chunk) [Non-Interest Expense](index=7&type=section&id=Non-Interest%20Expense) Total non-interest expense decreased to $23.2 million in Q4 2024 from $27.7 million in Q3 2024, reflecting the materialization of cost savings after systems integration, while full-year 2024 non-interest expenses surged 71.2% to $94.7 million, driven by $9.6 million in direct merger expenses and higher operating costs Non-Interest Expense Comparison (in thousands) | Period | Total Non-Interest Expense | Merger & Acquisition Expense | | :--- | :--- | :--- | | Q4 2024 | $23,188 | $467 | | Q3 2024 | $27,677 | $3,208 | | Q4 2023 | $14,854 | $581 | - Cost savings began to materialize in Q4 2024 in salaries, IT, data processing, and professional services following the completion of systems integration and re-branding[21](index=21&type=chunk) - For the full year 2024, merger and acquisition expenses were **$9.6 million**, a **707.2%** increase from **$1.2 million** in 2023[21](index=21&type=chunk) [GAAP to Non-GAAP Reconciliation](index=3&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures) The company provided non-GAAP metrics to exclude merger-related costs and security sale losses, offering a view of core performance, with Q4 2024 comparable non-GAAP net income at $7.2 million ($0.38 per share) and an efficiency ratio of 66.19% Q4 2024 GAAP vs. Non-GAAP (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Net Income | $6,895 | $330 | $7,225 | | Diluted EPS | $0.36 | $0.02 | $0.38 | Full Year 2024 GAAP vs. Non-GAAP (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Net Income | $7,666 | $17,392 | $25,058 | | Diluted EPS | $0.45 | $1.01 | $1.46 | [Financial Position](index=8&type=section&id=Financial%20Position) As of December 31, 2024, total assets stood at $3.52 billion, a 45% increase from year-end 2023 primarily due to the merger, with gross loans growing to $2.33 billion and total deposits increasing to $2.91 billion, while maintaining significant liquidity of $1.28 billion [Balance Sheet Summary](index=8&type=section&id=Balance%20Sheet%20Summary) Total assets increased by $1.09 billion (45%) to $3.52 billion at December 31, 2024, compared to the prior year-end, largely as a result of the merger on April 1, 2024, which added approximately $43 million in goodwill and $10.0 million in core deposit intangibles Total Assets Comparison (in thousands) | Date | Total Assets | | :--- | :--- | | Dec 31, 2024 | $3,521,771 | | Sep 30, 2024 | $3,531,298 | | Dec 31, 2023 | $2,433,426 | - The merger on April 1, 2024, resulted in the recording of approximately **$43 million** in goodwill and **$10.0 million** in core deposit intangibles[22](index=22&type=chunk) [Loan Portfolio](index=9&type=section&id=Loan%20Portfolio) Total gross loans reached $2.33 billion at December 31, 2024, an 81% increase from $1.29 billion a year prior, with the growth fueled by the merger and a significant shift in the loan mix towards consumer loans, which now represent 17.8% of the portfolio Loan Portfolio Composition (in thousands) | Loan Type | Dec 31, 2024 | % of Total | Dec 31, 2023 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Commercial | $180,745 | 7.7% | $139,022 | 10.8% | | Real Estate | $1,736,498 | 74.3% | $1,094,327 | 84.8% | | Consumer | $415,102 | 17.8% | $55,606 | 4.3% | | **Total Gross Loans** | **$2,334,221** | **99.9%** | **$1,290,797** | **100.0%** | [Deposit Composition](index=9&type=section&id=Deposit%20Composition) Total deposits grew to $2.91 billion at December 31, 2024, from $2.04 billion at the end of 2023, with the composition shifting as non-interest-bearing deposits decreased to 33.7% of total deposits from 46.6% a year ago, while interest-bearing deposits increased proportionally Deposit Composition (in thousands) | Deposit Type | Dec 31, 2024 | % of Total | Dec 31, 2023 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Non-interest bearing | $980,824 | 33.7% | $951,541 | 46.6% | | Interest-bearing | $1,929,953 | 66.3% | $1,090,071 | 53.4% | | **Total Deposits** | **$2,910,777** | **100.0%** | **$2,041,612** | **100.0%** | - The ratio of average non-interest bearing deposits to total average deposits was **36.02%** for Q4 2024, down from **46.61%** in Q4 2023[25](index=25&type=chunk) [Liquidity and Capital](index=10&type=section&id=Liquidity%20and%20Capital) The company maintained a strong liquidity position with total available sources of $1.28 billion as of December 31, 2024, an increase from $1.17 billion at year-end 2023, with capital ratios remaining well above regulatory requirements Primary and Secondary Liquidity Sources (in thousands) | Source | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $120,398 | $53,728 | | Unpledged investment securities | $403,669 | $574,633 | | FHLB borrowing availability | $576,556 | $307,483 | | Unsecured lines of credit | $110,000 | $110,000 | | **Total** | **$1,284,317** | **$1,168,206** | [Credit Quality](index=10&type=section&id=Credit%20Quality) Credit quality remains stable, with net loan charge-offs of only $59,000 in Q4 2024, while the allowance for credit losses (ACL) increased to $25.8 million from $14.7 million a year ago, primarily due to the provision for loans acquired in the merger Allowance for Credit Losses (ACL) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | ACL for Loans (in thousands) | $25,803 | $14,653 | | ACL as % of Total Loans | 1.11% | 1.14% | - The year-to-date provision for loan losses of **$10.8 million** was primarily due to the acquisition of loans from the merger as of April 1, 2024[30](index=30&type=chunk) - Substandard loans increased to **$44.3 million** (**1.9%** of total) at year-end 2024, up from **$20.3 million** (**1.7%** of total) at year-end 2023[30](index=30&type=chunk) [Shareholder Information](index=11&type=section&id=Shareholder%20Information) The Board of Directors declared a quarterly cash dividend, demonstrating confidence in the company's capital position and ongoing financial stability [Dividend Declaration](index=11&type=section&id=Cash%20Dividend%20Declared) On January 22, 2025, the Board of Directors declared a regular quarterly cash dividend of $0.12 per share on the company's common stock, payable on February 21, 2025, to shareholders of record as of February 7, 2025, affirming the company remains well capitalized - A regular quarterly cash dividend of **$0.12 per share** was declared[32](index=32&type=chunk) Dividend Schedule | Event | Date | | :--- | :--- | | Declaration Date | January 22, 2025 | | Record Date | February 7, 2025 | | Payment Date | February 21, 2025 | [Company Overview](index=11&type=section&id=Company%20Overview) Effective April 1, 2024, Central Valley Community Bancorp merged with Community West Bancshares, with the combined entity adopting the Community West Bancshares and Community West Bank names, operating full-service centers throughout Central California and offering a range of commercial, agricultural, and retail banking services - On April 1, 2024, Central Valley Community Bancorp completed its merger with Community West Bancshares, with the surviving entities being renamed Community West Bancshares and Community West Bank[33](index=33&type=chunk) - The company is headquartered in Fresno, California and operates full-service Banking Centers throughout Central California, specializing in Commercial Lending, Agribusiness, SBA, and various mortgage services[34](index=34&type=chunk) [Financial Statements and Schedules](index=12&type=section&id=Financial%20Statements%20and%20Schedules) This section contains the detailed, unaudited consolidated financial statements and supporting schedules for Community West Bancshares, including the Balance Sheets, Statements of Income, Selected Ratios, and Average Balances and Yields for the periods ended December 31, 2024 [Forward-looking Statements](index=12&type=section&id=Forward-looking%20Statements) This section outlines potential risks and uncertainties that could cause actual results to differ from forward-looking statements, including economic conditions, interest rate changes, credit quality, competition, merger integration challenges, and regulatory changes - The report contains forward-looking statements subject to risks including economic conditions, interest rate fluctuations, credit quality, competition, and risks related to the successful integration of the recent merger[37](index=37&type=chunk) [Consolidated Balance Sheets](index=13&type=section&id=COMMUNITY%20WEST%20BANCSHARES%20CONSOLIDATED%20BALANCE%20SHEETS) The consolidated balance sheet as of December 31, 2024, shows total assets of $3.52 billion, total liabilities of $3.16 billion, and total shareholders' equity of $362.7 million, compared to total assets of $2.43 billion and shareholders' equity of $207.1 million at year-end 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $3,521,771 | $2,433,426 | | Total Loans, net | $2,308,418 | $1,276,144 | | Total Deposits | $2,910,777 | $2,041,612 | | Total Liabilities | $3,159,086 | $2,226,362 | | Total Shareholders' Equity | $362,685 | $207,064 | [Consolidated Statements of Income](index=14&type=section&id=COMMUNITY%20WEST%20BANCSHARES%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated income statement for Q4 2024 details revenues and expenses leading to a net income of $6.9 million, while for the full twelve months ended December 31, 2024, net interest income was $110.4 million and net income was $7.7 million Full Year Income Statement Highlights (in thousands) | Account | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net Interest Income | $110,367 | $82,429 | | Provision for Credit Losses | $11,113 | $309 | | Non-Interest Income | $6,445 | $7,020 | | Non-Interest Expenses | $94,701 | $55,300 | | **Net Income** | **$7,666** | **$25,536** | [Selected Ratios](index=15&type=section&id=COMMUNITY%20WEST%20BANCSHARES%20SELECTED%20RATIOS) This schedule presents key performance and capital ratios on a quarterly basis, with Q4 2024 showing a return on average assets (ROAA) of 0.78%, return on average equity (ROAE) of 7.55%, an efficiency ratio of 67.55%, and a Bancorp Tier 1 leverage ratio of 9.17% Key Ratios for Q4 2024 | Ratio | Value | | :--- | :--- | | Return on Average Assets (ROAA) | 0.78% | | Return on Average Equity (ROAE) | 7.55% | | Efficiency Ratio | 67.55% | | Book Value Per Share | $19.11 | | Tier 1 Leverage - Bancorp | 9.17% | [Schedule of Average Balances and Yields](index=16&type=section&id=COMMUNITY%20WEST%20BANCSHARES%20SCHEDULE%20OF%20AVERAGE%20BALANCES%20AND%20AVERAGE%20YIELDS%20AND%20RATES) This schedule provides a detailed breakdown of average asset and liability balances and their corresponding yields and costs, with Q4 2024 showing an average yield on total interest-earning assets of 5.59% and an average cost of total interest-bearing liabilities of 2.59%, resulting in a net interest margin of 3.95% Q4 2024 Average Yields and Costs | Item | Average Rate | | :--- | :--- | | Yield on Interest-Earning Assets | 5.59% | | Yield on Loans | 6.61% | | Cost of Interest-Bearing Deposits | 2.33% | | Cost of Total Interest-Bearing Liabilities | 2.59% | | **Net Interest Margin** | **3.95%** |

PART 1: FINANCIAL INFORMATION [ITEM 1: FINANCIAL STATEMENTS (Unaudited)](index=5&type=section&id=ITEM%201%3A%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited consolidated financial statements of Community West Bancshares for the periods ended September 30, 2024, reflecting the significant impact of the April 1, 2024 merger [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in total assets to $3.53 billion as of September 30, 2024, primarily driven by the merger which expanded loans, goodwill, and deposits Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$3,531,298** | **$2,433,426** | | Total cash and cash equivalents | $149,013 | $53,728 | | Loans, net | $2,272,252 | $1,276,144 | | Goodwill | $96,379 | $53,777 | | **Total Liabilities** | **$3,167,783** | **$2,226,362** | | Total deposits | $2,921,695 | $2,041,612 | | **Total Shareholders' Equity** | **$363,515** | **$207,064** | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For the third quarter of 2024, net income decreased to $3.4 million, or $0.18 per diluted share, primarily due to increased provision for credit losses and non-interest expenses related to the merger Income Statement Summary (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $30,214 | $20,527 | $78,343 | $62,313 | | (Credit) Provision for Credit Losses | ($518) | $186 | $9,889 | $476 | | Non-Interest Income | $1,105 | $1,583 | $4,142 | $4,752 | | Non-Interest Expenses | $27,677 | $13,436 | $71,513 | $40,446 | | **Net Income** | **$3,385** | **$6,390** | **$771** | **$19,642** | | **Diluted EPS** | **$0.18** | **$0.54** | **$0.05** | **$1.67** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities was $21.3 million, with a $95.3 million increase in cash and cash equivalents, bringing the total to $149.0 million Cash Flow Summary for Nine Months Ended Sept 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | | Net cash provided by operating activities | $21,278 | $23,437 | | Net cash provided by investing activities | $78,634 | $20,851 | | Net cash used in financing activities | ($4,627) | ($883) | | **Increase in cash and cash equivalents** | **$95,285** | **$43,405** | | **Cash and cash equivalents at end of period** | **$149,013** | **$74,575** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial statement components, including the April 1, 2024 merger, loan portfolios, and allowance for credit losses - Effective April 1, 2024, Central Valley Community Bancorp merged with Community West Bancshares, with the combined entity renamed Community West Bancshares, accounted for as an acquisition adding significant assets and liabilities[31](index=31&type=chunk) Merger Consideration and Net Assets Acquired (in thousands) | Item | Amount | | :--- | :--- | | Total merger consideration | $143,714 | | Total assets acquired | $1,041,385 | | Total liabilities assumed | ($940,276) | | Total net assets acquired | $101,109 | | **Goodwill created from transaction** | **$42,605** | - The allowance for credit losses on loans was **$24.9 million** as of September 30, 2024, up from **$14.7 million** at year-end 2023, primarily due to loan growth and provisions related to the acquired loan portfolio[64](index=64&type=chunk) - On October 23, 2024, the Board of Directors declared a quarterly cash dividend of **$0.12 per share**[149](index=149&type=chunk) [ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=41&type=section&id=ITEM%202%3A%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance and condition, emphasizing the transformative impact of the April 1, 2024 merger, which significantly affected earnings due to related expenses and credit loss provisions [Financial Highlights](index=42&type=section&id=Financial%20Highlights) The company's financial highlights for the period ending September 30, 2024, are dominated by the merger's effects, including a significant increase in total assets and gross loans, and strong capital ratios despite suppressed net income - Total assets increased by **$1.1 billion (45.12%)** and total gross loans increased by **$1.0 billion (77.96%)** compared to December 31, 2023, largely due to the merger[162](index=162&type=chunk) - Net interest margin improved to **3.69%** for Q3 2024 from **3.65%** in Q2 2024[163](index=163&type=chunk) - Q3 2024 net income was **$3.4 million**, or **$0.18 per diluted share**, impacted by merger-related expenses and a loss on the sale of securities[162](index=162&type=chunk) - Capital positions remain strong with a Tier 1 Leverage Ratio of **9.38%** and a Total Risk-Based Capital Ratio of **13.55%**[163](index=163&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) The company's operating results for Q3 and the first nine months of 2024 were heavily influenced by the merger, leading to increased net interest income but also a significant rise in non-interest expenses and credit loss provisions GAAP to Non-GAAP Net Income Reconciliation (Q3 2024, in thousands) | Description | Amount | | :--- | :--- | | Net income (GAAP) | $3,385 | | Merger and conversion related costs | $3,208 | | Loss on sale of investment securities | $1,853 | | Income tax benefit of non-core expenses | ($1,496) | | **Comparable net income (non-GAAP)** | **$6,950** | Net Interest Margin Analysis | Period | Net Interest Margin (FTE) | | :--- | :--- | | Q3 2024 | 3.69% | | Q3 2023 | 3.47% | | Nine Months 2024 | 3.69% | | Nine Months 2023 | 3.59% | - Non-interest expenses for Q3 2024 increased **106%** year-over-year to **$27.7 million**, driven by higher salaries, occupancy costs, and **$3.2 million** in merger and acquisition expenses[209](index=209&type=chunk)[212](index=212&type=chunk) [Financial Condition](index=53&type=section&id=Financial%20Condition) As of September 30, 2024, the company's financial condition was robust, with total assets at $3.53 billion, gross loans at $2.3 billion, and a low nonperforming asset ratio, bolstered by the merger Loan Portfolio Composition (in thousands) | Loan Type | September 30, 2024 | % of Total | | :--- | :--- | :--- | | Commercial | $160,816 | 7.0% | | Real estate | $1,726,444 | 75.1% | | Consumer | $407,919 | 17.8% | | **Total Gross Loans** | **$2,297,143** | **100.0%** | - The loan-to-deposit ratio increased to **78.62%** at September 30, 2024, compared to **63.22%** at December 31, 2023, reflecting a more optimized balance sheet post-merger[218](index=218&type=chunk) - Nonperforming assets were **$3.25 million**, or **0.14%** of total loans, as of September 30, 2024, compared to zero at the end of 2023[224](index=224&type=chunk)[228](index=228&type=chunk) [Capital and Liquidity](index=56&type=section&id=Capital%20and%20Liquidity) The company maintained strong capital and liquidity positions, with all regulatory capital ratios well above 'well-capitalized' thresholds and ample available borrowing capacity Regulatory Capital Ratios (Company) | Ratio | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Tier 1 Leverage Ratio | 9.38% | 9.18% | | Common Equity Tier 1 Ratio | 11.12% | 12.78% | | Tier 1 Risk-Based Capital Ratio | 11.30% | 13.07% | | Total Risk-Based Capital Ratio | 13.55% | 16.08% | Available Liquidity Sources (in thousands) | Source | Available Capacity | | :--- | :--- | | Unsecured Credit Lines | $110,000 | | Unused FHLB Advances | $565,283 | | Federal Reserve Bank Line | $3,958 | | **Total Available** | **$679,241** | [ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=59&type=section&id=ITEM%203%3A%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's management of interest rate risk, with simulation models used to monitor exposure of net interest income and equity to rate fluctuations, showing asset-sensitivity within policy limits Interest Rate Sensitivity Analysis (Estimated Change in Net Interest Income) | Rate Shock (bps) | Year 1 Change | Year 2 Change | | :--- | :--- | :--- | | +400 | 3.91% | 3.97% | | +200 | 2.38% | 2.48% | | +100 | 1.99% | 2.34% | | -100 | (3.86)% | (5.06)% | | -200 | (6.00)% | (8.01)% | - The company actively manages its asset and liability structure to correlate the effects of interest rate changes on its assets and liabilities, aiming to minimize exposure to net interest margin and capital[247](index=247&type=chunk)[248](index=248&type=chunk) [ITEM 4: CONTROLS AND PROCEDURES](index=60&type=section&id=ITEM%204%3A%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[252](index=252&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[253](index=253&type=chunk) PART II: OTHER INFORMATION [ITEM 1: LEGAL PROCEEDINGS](index=60&type=section&id=ITEM%201%3A%20LEGAL%20PROCEEDINGS) The company reported no material legal proceedings during the period - There are no legal proceedings to report for the period[254](index=254&type=chunk) [ITEM 1A: RISK FACTORS](index=60&type=section&id=ITEM%201A%3A%20RISK%20FACTORS) This section refers readers to the detailed discussion of risk factors in the company's 2023 Annual Report on Form 10-K, which could cause actual results to differ materially from expectations - The company directs stakeholders to its 2023 Annual Report on Form 10-K for a comprehensive discussion of risk factors[255](index=255&type=chunk) [Other Part II Items](index=60&type=section&id=Other%20Part%20II%20Items) The company reported no unregistered sales of equity securities, no defaults upon senior securities, no mine safety disclosures, and no other information requiring disclosure under Item 5 for the period - There were no reportable events under Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), or Item 5 (Other Information)[256](index=256&type=chunk) [ITEM 6: EXHIBITS](index=61&type=section&id=ITEM%206%3A%20EXHIBITS) This section lists the exhibits filed with the quarterly report, including certifications by the CEO and CFO, and XBRL data files - The filing includes required certifications from the Principal Executive Officer and Principal Financial Officer pursuant to SEC rules[258](index=258&type=chunk) - Interactive Data Files (XBRL) are included as exhibits to the report[258](index=258&type=chunk)