GOLETA, Calif., Jan. 26, 2024 (GLOBE NEWSWIRE) -- Community West Bancshares ("Community West" or the "Company"), (NASDAQ:CWBC), parent company of Community West Bank (the "Bank"), today reported net income of $7.3 million, or $0.81 per diluted share, for the year ended December 31, 2023, compared to $13.4 million, or $1.51 per diluted share, for the year ended December 31, 2022.   For the quarter ended December 31, 2023, the Company reported $479,000, or $0.05 per diluted share compared to $2.3 million or $ ...

Financial Performance - Net interest income for Q3 2023 was $10.5 million, down from $11.9 million in Q3 2022[292] - Net interest margin decreased to 3.98% in Q3 2023 from 4.39% in Q3 2022[293] - Return on average assets was 0.83% for Q3 2023, compared to 1.25% for Q3 2022[295] - The Company reported a net income of $2.252 million for the three months ended September 30, 2023, a decrease of 35.2% from $3.478 million in the same period of 2022[301] - Basic earnings per share for the three months ended September 30, 2023, were $0.25, down from $0.40 in the prior year, representing a decline of 37.5%[301] - Net income for Q3 2023 was $2.3 million, or $0.25 per diluted share, down from $3.5 million, or $0.39 per diluted share in Q3 2022[318] Assets and Liabilities - Cash and cash equivalents increased by $75.9 million to $140.6 million as of September 30, 2023, from $64.7 million at December 31, 2022[296] - Total assets rose by $48.8 million to $1.14 billion at September 30, 2023, compared to $1.09 billion at December 31, 2022[297] - Loans held for investment remained stable at $934.2 million as of September 30, 2023, compared to $934.3 million at December 31, 2022[322] - Total contractual obligations amount to $346.8 million, including time deposits of $251.6 million and FHLB advances of $90 million[362] Income and Expenses - Non-interest income in-scope of ASC 606 was $506 thousand for Q3 2023, compared to $216 thousand for Q3 2022[285] - Total non-interest income for the nine months ended September 30, 2023, was $2.989 million, down from $3.214 million for the same period in 2022[285] - Total non-interest income increased by $209 thousand in Q3 2023, primarily due to a $278 thousand gain from the valuation of repossessed assets[336] - Total non-interest expenses increased by $3.4 million to $26.1 million for the nine months ended September 30, 2023, compared to $22.7 million for the same period in 2022[338] - Salaries and employee benefits rose by $1.1 million due to wage competition and increased benefit costs during the first nine months of 2023[338] - Professional services expenses increased by $755 thousand due to higher accounting and consulting costs related to internal control testing and strategic initiatives[338] Interest and Credit Losses - Interest income for the three months ended September 30, 2023, was $14.553 million, an increase of 15% from $12.654 million in the same period of 2022[301] - Total interest expense rose significantly to $4.034 million for the three months ended September 30, 2023, compared to $731 thousand in the same period of 2022, marking an increase of 451%[301] - The provision for credit losses was $43 thousand for the three months ended September 30, 2023, down from $298 thousand in the same period of 2022, indicating a decrease of 85.5%[309] - Provision for credit losses was $43 thousand in Q3 2023, significantly lower than $298 thousand in Q3 2022[319] Capital Ratios - The Tier 1 leverage ratio improved to 10.84% as of September 30, 2023, compared to 10.34% at December 31, 2022[320] - Return on average common equity decreased to 7.72% in Q3 2023 from 12.65% in Q3 2022[321] - CWB's total capital ratio as of September 30, 2023, is 13.27%, exceeding the minimum requirement of 8.00%[365] - The Tier 1 capital ratio stands at 12.09%, above the minimum requirement of 6.00%[365] - Common Equity Tier 1 capital ratio is also at 12.09%, surpassing the minimum requirement of 4.50%[365] - The leverage ratio is reported at 10.84%, exceeding the minimum requirement of 4.00%[365] Mergers and Acquisitions - The company announced a merger agreement with Central Valley Community Bancorp, expected to close in Q2 2024[287] - The Company is in the process of an all-stock merger with Central Valley Community Bancorp, pending regulatory and shareholder approvals[373] Regulatory and Market Environment - The Company anticipates continued market volatility due to inflation, rising interest rates, and geopolitical conflicts[370] - Future changes in laws and regulations may materially affect the Company's business and earnings[367] Internal Controls - The management has confirmed that there were no changes in internal control over financial reporting during the quarter ended September 30, 2023[372] - Disclosure controls and procedures are deemed effective as of the end of the reporting period[371]

PART I – FINANCIAL INFORMATION This section provides the unaudited consolidated financial information, including statements, notes, and management's discussion and analysis [Item 1 – Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) This section presents unaudited consolidated financial statements, notes on accounting policies, and key financial highlights [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, including assets, liabilities, and equity, at specific dates | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $130,555 | $64,690 | | Investment securities - AFS | $14,766 | $26,688 | | Total assets | $1,131,430 | $1,091,502 | | Total deposits | $911,724 | $875,084 | | Total liabilities | $1,017,489 | $978,852 | | Total stockholders' equity | $113,941 | $112,650 | [Consolidated Income Statements](index=4&type=section&id=Consolidated%20Income%20Statements) Details the company's revenues, expenses, and net income over specific reporting periods | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net income | $2,121 | $2,635 | $4,585 | $6,595 | | Basic earnings per share | $0.24 | $0.30 | $0.52 | $0.76 | | Diluted earnings per share | $0.24 | $0.30 | $0.51 | $0.74 | | Total interest and dividend income | $14,715 | $11,706 | $28,300 | $23,206 | | Total interest expense | $3,998 | $696 | $6,553 | $1,460 | | Net interest income | $10,717 | $11,010 | $21,747 | $21,746 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income items, reflecting total non-owner changes in equity | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net income | $2,121 | $2,635 | $4,585 | $6,595 | | Unrealized loss on AFS securities, net | $(427) | $(289) | $(909) | $(539) | | Comprehensive income | $1,694 | $2,346 | $3,676 | $6,056 | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Shows changes in equity accounts, including net income, dividends, and other comprehensive income | Metric | January 1, 2023 (in thousands) | June 30, 2023 (in thousands) | | :----------------------------------- | :----------------------------- | :--------------------------- | | Balance, January 1, 2023 | $112,650 | N/A | | Cumulative effect of ASC 326 adoption | $(1,573) | N/A | | Net income | N/A | $4,585 | | Dividends on common stock | N/A | $(1,411) | | Other comprehensive loss, net | N/A | $(909) | | Balance, June 30, 2023 | N/A | $113,941 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Reports cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $20,824 | $8,422 | | Net cash provided by (used in) investing activities | $9,533 | $(58,621) | | Net cash provided by (used in) financing activities | $35,508 | $(55,900) | | Net increase (decrease) in cash and cash equivalents | $65,865 | $(106,099) | | Cash and cash equivalents at end of period | $130,555 | $102,276 | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, estimates, and financial statement line items [1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Outlines the key accounting principles and methods used in preparing the financial statements - The Company adopted ASC 326 (CECL) on January 1, 2023, resulting in a net decrease of **$1.6 million** to retained earnings for the cumulative effect adjustment[84](index=84&type=chunk)[106](index=106&type=chunk) - The CECL model applies to credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and off-balance sheet credit exposures[82](index=82&type=chunk) - For available-for-sale securities, unrealized losses deemed non-credit related are recorded, net of tax, through accumulated other comprehensive income[33](index=33&type=chunk) [2. INVESTMENT SECURITIES](index=18&type=section&id=2.%20INVESTMENT%20SECURITIES) Details the composition, fair value, and credit quality of the company's investment portfolio | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total investment securities | $17,241 | $29,470 | | Securities available-for-sale | $14,766 | $26,688 | | Securities held-to-maturity | $2,188 | $2,557 | - Unrealized losses on available-for-sale and held-to-maturity securities were determined to be non-credit related, primarily due to changes in interest rates and market conditions[60](index=60&type=chunk)[108](index=108&type=chunk)[137](index=137&type=chunk) - No allowance for credit losses was recorded for investment securities as of June 30, 2023[137](index=137&type=chunk) [3. LOANS HELD FOR SALE AND LOANS SERVICED FOR OTHERS](index=23&type=section&id=3.%20LOANS%20HELD%20FOR%20SALE%20AND%20LOANS%20SERVICED%20FOR%20OTHERS) Provides information on loans intended for sale and those managed on behalf of other entities | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Loans held for sale | $19,126 | $21,033 | | SBA loans held for sale | $4,800 | $5,200 | | USDA loans held for sale | $14,400 | $15,900 | | Total loans serviced for others | $161,288 | $158,183 | [4. LOANS HELD FOR INVESTMENT](index=23&type=section&id=4.%20LOANS%20HELD%20FOR%20INVESTMENT) Details the portfolio of loans retained by the company for long-term investment purposes | Loan Type | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Gross loans held for investment | $938,025 | $935,123 | | Manufactured housing | $321,127 | $315,825 | | Commercial real estate | $559,677 | $545,317 | | Total past due loans | $4,314 | $2,880 | - Loan modifications for borrowers experiencing financial difficulty during the six months ended June 30, 2023, totaled **$3,651 thousand**, primarily consisting of term extensions[213](index=213&type=chunk) [5. OTHER ASSETS ACQUIRED THROUGH FORECLOSURE](index=30&type=section&id=5.%20OTHER%20ASSETS%20ACQUIRED%20THROUGH%20FORECLOSURE) Reports assets obtained through foreclosure, including their carrying value and disposition activities | Metric | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Balance, beginning of period | $2,250 | $2,518 | | Proceeds from dispositions | $(2,505) | $(372) | | Gain on sales, net | $255 | $104 | | Balance, end of period | $65 | $2,250 | [6. FAIR VALUE MEASUREMENT](index=30&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENT) Explains the methodologies and hierarchy used to determine the fair value of financial instruments - The Company uses a three-level valuation hierarchy for fair value measurements: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[216](index=216&type=chunk)[217](index=217&type=chunk) - Investment securities available-for-sale are classified as Level 2, while servicing assets and interest-only strips are classified as Level 3 due to significant unobservable inputs[207](index=207&type=chunk)[222](index=222&type=chunk)[247](index=247&type=chunk) - Other assets acquired through foreclosure are measured on a non-recurring basis, classified as Level 2 or Level 3 depending on the availability of current appraised values[250](index=250&type=chunk) [7. BORROWINGS](index=35&type=section&id=7.%20BORROWINGS) Details the company's debt obligations, including FHLB advances and other credit facilities | Borrowing Source | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | FHLB advances | $90,000 | $90,000 | - FHLB advances are collateralized by eligible loans and securities, with **$9.8 million** of securities and **$360.2 million** of loans pledged at June 30, 2023[181](index=181&type=chunk)[370](index=370&type=chunk) - Available FHLB borrowing capacity was **$77.4 million** and FRB borrowing capacity was **$94.7 million** as of June 30, 2023[181](index=181&type=chunk)[229](index=229&type=chunk)[370](index=370&type=chunk)[371](index=371&type=chunk) - The Company borrowed and subsequently repaid **$10.0 million** from its revolving line of credit during the first and second quarters of 2023[188](index=188&type=chunk)[372](index=372&type=chunk) [8. STOCKHOLDERS' EQUITY](index=36&type=section&id=8.%20STOCKHOLDERS%27%20EQUITY) Outlines the components of equity, including retained earnings and accumulated other comprehensive loss | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total stockholders' equity | $113,941 | $112,650 | | Retained earnings | $69,328 | $67,727 | | Accumulated other comprehensive loss, net | $(1,680) | $(771) | - The cumulative effect of ASC 326 adoption resulted in a **$1.6 million** decrease to retained earnings as of January 1, 2023[168](index=168&type=chunk) - Dividends declared per common share for the six months ended June 30, 2023, were **$0.160**, up from **$0.145** in the prior year[165](index=165&type=chunk) [9. CAPITAL REQUIREMENTS](index=36&type=section&id=9.%20CAPITAL%20REQUIREMENTS) Presents the company's regulatory capital ratios and compliance with well-capitalized requirements | Capital Ratio | June 30, 2023 | December 31, 2022 | Well-Capitalized Requirement | | :----------------------------------- | :------------ | :---------------- | :--------------------------- | | Total Capital (to Risk-Weighted Assets) | 13.09% | 12.56% | 10.00% | | Tier 1 Capital (to Risk-Weighted Assets) | 11.91% | 11.44% | 8.00% | | Common Equity Tier 1 (to Risk-Weighted Assets) | 11.91% | 11.44% | 6.50% | | Leverage Ratio/Tier 1 Capital (to Average Assets) | 10.38% | 10.34% | 5.00% | - The Company elected to phase in the full effect of CECL on regulatory capital over a three-year transition period, starting Q1 2023[257](index=257&type=chunk)[353](index=353&type=chunk) [10. REVENUE RECOGNITION](index=37&type=section&id=10.%20REVENUE%20RECOGNITION) Describes the company's policies for recognizing revenue from various sources, including service charges - The majority of the Company's revenue is from sources outside the scope of ASC 606[183](index=183&type=chunk) - Revenue from service charges and fees and interchange fees on credit and debit cards are within the scope of ASC 606 and are recognized when services are rendered or upon completion[183](index=183&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) | Non-Interest Income Category | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | In-scope of Topic 606 | $509 | $388 | | Out-of-scope of Topic 606 | $1,399 | $1,954 | [11. LEASES](index=39&type=section&id=11.%20LEASES) Provides details on the company's lease agreements, including right-of-use assets and lease liabilities | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Right-of-use assets | $4,800 | $5,200 | | Lease liabilities | $4,800 | $5,300 | | Year | Total Future Minimum Lease Payments (in thousands) | | :----------------------------------- | :----------------------------------------------- | | 2023 | $508 | | 2024 | $1,026 | | 2025 | $976 | | 2026 | $876 | | 2027 | $473 | | Thereafter | $1,538 | | **Total** | **$5,397** | - The weighted average remaining lease term for operating leases was **6.67 years** as of June 30, 2023[283](index=283&type=chunk) [12. SUBSEQUENT EVENTS](index=40&type=section&id=12.%20SUBSEQUENT%20EVENTS) Reports significant events that occurred after the balance sheet date but before the financial statements were issued - On July 28, 2023, the Board of Directors declared a quarterly cash dividend of **$0.08** per common share, payable on August 31, 2023[284](index=284&type=chunk)[349](index=349&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operations, liquidity, capital, and market risks, highlighting key performance [Forward Looking Statements](index=41&type=section&id=Forward%20Looking%20Statements) Highlights that the report contains statements about future events that involve risks and uncertainties - The report contains forward-looking statements that are not guarantees of future performance and involve significant risks, contingencies, and uncertainties[242](index=242&type=chunk) - Key risks include general economic conditions, liquidity, interest rate policies, inflation, natural disasters, and regulatory changes[243](index=243&type=chunk)[286](index=286&type=chunk) - The Company disclaims any obligation to update or alter such forward-looking statements, except as required by law[287](index=287&type=chunk) [Financial Overview and Highlights](index=42&type=section&id=Financial%20Overview%20and%20Highlights) Summarizes key financial performance metrics and significant changes in the company's financial position | Metric | Q2 2023 | Q2 2022 | | :----------------------------------- | :------ | :------ | | Net income | $2.1M | $2.6M | | Diluted EPS | $0.24 | $0.30 | | Net interest income | $10.7M | $11.0M | | Net interest margin | 3.99% | 4.01% | | Return on average assets | 0.77% | 0.93% | | Return on average stockholders' equity | 7.47% | 9.92% | - Cash and cash equivalents increased by **$65.9 million** to **$130.6 million** at June 30, 2023, reflecting management's efforts to increase on-balance sheet liquidity[288](index=288&type=chunk) - Nonaccrual loans increased to **$1.7 million** at June 30, 2023, from **$211 thousand** at December 31, 2022[288](index=288&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) Discusses accounting estimates requiring significant judgment, such as the allowance for credit losses - Management's financial reporting relies on significant judgments, assumptions, and estimates, particularly for the allowance for credit losses (ACL) and the fair value of securities available-for-sale[192](index=192&type=chunk)[269](index=269&type=chunk) - Changes in these estimates and assumptions could result in adjustments to the ACL in future periods and impact reported financial performance[269](index=269&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including interest income, expenses, and net income trends [Comparison of interest income, interest expense, and net interest margin](index=44&type=section&id=Comparison%20of%20interest%20income%2C%20interest%20expense%2C%20and%20net%20interest%20margin) Compares interest income, interest expense, and net interest margin across different reporting periods | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Total interest income | $14,715 | $11,706 | $28,300 | $23,206 | | Total interest expense | $3,998 | $696 | $6,553 | $1,460 | | Net interest income | $10,717 | $11,010 | $21,747 | $21,746 | | Net interest margin | 3.99% | 4.01% | 4.12% | 3.93% | - Interest income increased due to higher rates earned on interest-earning assets and an increase in average outstanding loan balances[297](index=297&type=chunk) - Interest expense significantly increased, primarily due to higher rates paid on deposit accounts (cost of interest-bearing deposits rose from **0.29% to 2.21% YoY in Q2**) and other borrowings[275](index=275&type=chunk)[276](index=276&type=chunk) [Provision for credit losses](index=47&type=section&id=Provision%20for%20credit%20losses) Discusses the provision for credit losses, reflecting changes in the allowance for loan losses | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Provision (credit) for credit losses | $12 | $252 | $(710) | $(32) | | Net loan recoveries | $98 | $67 | $194 | $494 | - The provision for credit losses for the six months ended June 30, 2023, included a credit for loan losses of **$(622) thousand** and a provision for off-balance sheet commitments of **$(88) thousand**[278](index=278&type=chunk) [Non-Interest Income](index=47&type=section&id=Non-Interest%20Income) Analyzes revenue generated from sources other than interest, such as service charges and gains on sales | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Total non-interest income | $1,146 | $1,051 | $1,908 | $2,342 | | Gains from loan sales, net | $56 | $136 | $86 | $196 | | Other non-interest income | $535 | $323 | $866 | $1,119 | - The increase in Q2 2023 non-interest income was primarily due to a **$255 thousand** gain on the sale of other assets acquired through foreclosure[279](index=279&type=chunk) - The decrease in YTD 2023 non-interest income was mainly due to a **$0.5 million** non-taxable gain from a bank-owned life insurance policy in the prior year and lower Farmer Mac loan origination fees and loan sale volumes[322](index=322&type=chunk) [Non-Interest Expenses](index=48&type=section&id=Non-Interest%20Expenses) Examines operating expenses not directly related to interest, including salaries and professional services | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Total non-interest expenses | $8,854 | $8,112 | $17,688 | $15,083 | | Salaries and employee benefits | $5,302 | $4,981 | $10,750 | $9,919 | | Professional services | $851 | $635 | $1,770 | $1,034 | - Increases in salaries and employee benefits were due to merit increases and wage competition[303](index=303&type=chunk) - Professional services expenses rose due to increased accounting and consulting costs related to internal control testing and strategic/technology initiatives[303](index=303&type=chunk) [Income Taxes](index=48&type=section&id=Income%20Taxes) Reports the company's income tax provision and effective tax rates for the reporting periods | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax provision (in thousands) | $876 | $1,062 | $2,092 | $2,442 | | Effective income tax rate | 29.2% | 28.7% | 31.3% | 27.0% | - The lower effective tax rate for the year-to-date period in 2022 was due to non-taxable income from a bank-owned life insurance policy[325](index=325&type=chunk) - There was no valuation allowance on deferred tax assets at June 30, 2023, or December 31, 2022[326](index=326&type=chunk) [Balance Sheet Analysis](index=49&type=section&id=Balance%20Sheet%20Analysis) Analyzes significant changes in balance sheet accounts, including assets, liabilities, and equity [Selected Balance Sheet Accounts](index=49&type=section&id=Selected%20Balance%20Sheet%20Accounts) Provides a detailed comparison of key balance sheet accounts and their period-over-period changes | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | Increase (Decrease) (in thousands) | Percent Increase (Decrease) | | :----------------------------------- | :----------------------------- | :------------------------------- | :--------------------------------- | :-------------------------- | | Cash and cash equivalents | $130,555 | $64,690 | $65,865 | 101.8% | | Investment securities available-for-sale | $14,766 | $26,688 | $(11,922) | (44.7)% | | Loans held for investment, net | $924,976 | $923,544 | $1,432 | 0.2% | | Total assets | $1,131,430 | $1,091,502 | $39,928 | 3.7% | | Total deposits | $911,724 | $875,084 | $36,640 | 4.2% | - The increase in cash and cash equivalents was part of management's plans to solidify the Company's on-balance sheet liquidity position[328](index=328&type=chunk) [Loans Held for Sale](index=50&type=section&id=Loans%20Held%20for%20Sale) Details the composition and changes in loans designated for sale, including government-guaranteed portions | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Loans held for sale | $19,126 | $21,033 | | SBA loans held for sale | $4,800 | $5,200 | | Commercial agriculture FSA guaranteed loans | $14,400 | $15,900 | [Loans Held for Investment](index=50&type=section&id=Loans%20Held%20for%20Investment) Provides a breakdown of the loan portfolio held for investment by type and changes over time | Loan Type | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Gross loans held for investment | $938,025 | $935,123 | | Manufactured housing | $321,127 | $315,825 | | Commercial real estate | $559,677 | $545,317 | [Concentrations of Lending Activities](index=50&type=section&id=Concentrations%20of%20Lending%20Activities) Identifies the geographic and industry concentrations within the company's loan portfolio - The Company's lending activities are concentrated in the Central Coast of California[309](index=309&type=chunk) - Manufactured housing loans comprised **34.2%** of gross loans held for investment at June 30, 2023[309](index=309&type=chunk) - Commercial real estate loans accounted for approximately **59.7%** of gross loans held for investment at June 30, 2023[309](index=309&type=chunk) [Asset Quality](index=50&type=section&id=Asset%20Quality) Assesses the quality of the loan portfolio, including nonaccrual loans and past due balances | Metric | June 30, 2023 | December 31, 2022 | | :----------------------------------- | :------------ | :---------------- | | Nonaccrual loans (net of government guaranteed portions) | $974k | $211k | | Nonaccrual loans (net of government guaranteed portions) to gross loans | 0.10% | 0.02% | | Allowance for credit losses to nonaccrual loans (net of government guaranteed portion) | 1,247% | 5,102% | | Total past due loans | $4,314k | $2,880k | - Nonaccrual loans increased by **$1.5 million** from December 31, 2022, to June 30, 2023, including **$735 thousand** of commercial loans guaranteed by a U.S. government agency[314](index=314&type=chunk) [Collateral Dependent Loans](index=51&type=section&id=Collateral%20Dependent%20Loans) Discusses loans for which repayment is expected primarily from the sale or operation of collateral - Collateral dependent loans are individually evaluated for an Allowance for Credit Losses (ACL) based on the estimated fair value of the underlying collateral, less estimated costs to sell[316](index=316&type=chunk) | Collateral Type | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Manufactured Homes | $1,141 | $574 | | Single Family Residence | $144 | $150 | | Land | $82 | $0 | | Machinery & Equipment | $1,205 | $1,297 | | **Total** | **$2,572** | **$2,021** | - There was no associated allowance for credit losses for collateral dependent loans as of June 30, 2023, or December 31, 2022[152](index=152&type=chunk) [Allowance For Credit Losses](index=52&type=section&id=Allowance%20For%20Credit%20Losses) Explains the methodology and changes in the allowance for credit losses on loans and off-balance sheet exposures - The Allowance for Credit Losses (ACL) on loans increased by **$1.4 million** from **$10.8 million** at December 31, 2022, to **$12.1 million** at June 30, 2023[122](index=122&type=chunk)[360](index=360&type=chunk) - The adoption of ASC 326 on January 1, 2023, resulted in a **$1.8 million** increase directly to retained earnings (net of tax)[122](index=122&type=chunk)[360](index=360&type=chunk) - The increase in ACL during Q2 2023 was primarily due to a **$107 thousand** increase in qualitative factors related to substandard loans, partially offset by a decrease in factors related to the California drought and historical losses[145](index=145&type=chunk)[315](index=315&type=chunk)[342](index=342&type=chunk) [Investment Securities](index=54&type=section&id=Investment%20Securities) Analyzes the company's investment securities portfolio, including available-for-sale and held-to-maturity | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total investment securities | $17,241 | $29,470 | | Securities available-for-sale | $14,766 | $26,688 | | Securities held-to-maturity | $2,188 | $2,557 | - No credit impairment was recorded for any investment securities for the three or six months ended June 30, 2023[364](index=364&type=chunk) [Other Assets Acquired Through Foreclosure](index=55&type=section&id=Other%20Assets%20Acquired%20Through%20Foreclosure) Discusses the balance and disposition of assets obtained through foreclosure, and related gains or losses | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Balance, end of period | $65 | $2,250 | - Other assets acquired through foreclosure decreased significantly due to dispositions, resulting in a net gain on sales of **$255 thousand** for the six months ended June 30, 2023[319](index=319&type=chunk) - These assets are reported at fair value at the time of foreclosure less estimated costs to sell, with no valuation allowances against them[345](index=345&type=chunk) [Deposits](index=55&type=section&id=Deposits) Analyzes the composition and changes in the company's deposit base, including interest-bearing and noninterest-bearing accounts | Deposit Type | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | Increase (Decrease) (in thousands) | Percent Increase (Decrease) | | :----------------------------------- | :----------------------------- | :------------------------------- | :--------------------------------- | :-------------------------- | | Total deposits | $911,724 | $875,084 | $36,640 | 4.2% | | Noninterest-bearing demand deposits | $195,612 | $216,494 | $(20,882) | (9.6)% | | Interest-bearing demand deposits | $460,597 | $428,173 | $32,424 | 7.6% | | Certificates of deposit | $237,000 | $206,927 | $30,073 | 14.5% | - The increase in total deposits was primarily driven by a rise in interest-bearing demand deposits and certificates of deposit, including a **$75.0 million** increase in brokered deposits[346](index=346&type=chunk) - CDARS and ICS deposits, providing FDIC insurance for large deposits, increased to **$177.8 million** at June 30, 2023, from **$120.3 million** at December 31, 2022[367](index=367&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) Evaluates the company's ability to meet financial obligations and maintain adequate capital levels [Liquidity](index=57&type=section&id=Liquidity) Assesses the company's short-term cash flow management and access to funding sources - The Company's liquidity ratio increased to **14.5%** at June 30, 2023, from **10.4%** at December 31, 2022[374](index=374&type=chunk) - Available borrowing capacity from FHLB was **$77.4 million** and from FRB was **$94.7 million** as of June 30, 2023[370](index=370&type=chunk)[371](index=371&type=chunk) - The Company utilized and repaid a **$10.0 million** revolving line of credit during the first and second quarters of 2023[372](index=372&type=chunk) [Capital Resources](index=58&type=section&id=Capital%20Resources) Details the company's capital structure, regulatory capital ratios, and compliance status | Capital Ratio | June 30, 2023 | December 31, 2022 | Well-Capitalized Requirement | | :----------------------------------- | :------------ | :---------------- | :--------------------------- | | Total Capital (to Risk-Weighted Assets) | 13.09% | 12.56% | 10.00% | | Tier 1 Capital (to Risk-Weighted Assets) | 11.91% | 11.44% | 8.00% | | Common Equity Tier 1 (to Risk-Weighted Assets) | 11.91% | 11.44% | 6.50% | | Leverage Ratio/Tier 1 Capital (to Average Assets) | 10.38% | 10.34% | 5.00% | - The Company elected to phase in the **$1.6 million** reduction to stockholders' equity from the adoption of CECL over a three-year period for regulatory capital purposes[353](index=353&type=chunk) - The Company has **60,000,000** total shares of common stock authorized, with **8,849,112** shares issued at June 30, 2023[377](index=377&type=chunk) [Supervision and Regulation](index=59&type=section&id=Supervision%20and%20Regulation) Describes the regulatory environment and oversight bodies governing the company's banking operations - The Company operates in a complex, highly regulated banking industry, subject to various federal and state laws and regulatory agencies (e.g., Federal Reserve System, OCC, FDIC)[354](index=354&type=chunk)[393](index=393&type=chunk) - Regulatory changes can significantly affect the Company's business and earnings by increasing costs, limiting activities, or changing the competitive landscape[381](index=381&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Company's Annual Report on Form 10-K for detailed market risk disclosures, stating that there have been no material changes since the previous report - There has been no material change in market risk disclosures as previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022[382](index=382&type=chunk) [Item 4 – Controls and Procedures](index=61&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2023. Furthermore, no material changes in internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were effective as of the end of the period covered by this report (June 30, 2023)[176](index=176&type=chunk) - No change in internal control over financial reporting occurred during the quarter ended June 30, 2023, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting[396](index=396&type=chunk) Part II. Other Information This section provides additional information not covered in the financial statements, including legal, risk, and equity matters [Item 1 – Legal Proceedings](index=62&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The Company is involved in various routine litigation matters, but management, in consultation with legal counsel, does not expect their resolution to have a material impact on the Company's financial position or results of operations - The resolution of routine litigation matters is not expected to have a material impact on the Company's financial position or results of operations[177](index=177&type=chunk) [Item 1A – Risk Factors](index=62&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) This section refers to the Company's Annual Report on Form 10-K for a comprehensive discussion of risk factors, indicating that there has been no material change in these factors since the previous report - There has been no material change in the Company's risk factors as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[397](index=397&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company reported no unregistered sales of equity securities or use of proceeds for the period - None[178](index=178&type=chunk) [Item 3 – Defaults Upon Senior Securities](index=62&type=section&id=Item%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities for the period - None[178](index=178&type=chunk) [Item 4 – Mine Safety Disclosures](index=62&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This item is not applicable to the Company's operations - Not applicable[178](index=178&type=chunk) [Item 5 – Other Information](index=62&type=section&id=Item%205%20%E2%80%93%20Other%20Information) The Company reported no other information for the period - None[178](index=178&type=chunk) [Item 6 – Exhibits](index=63&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists the exhibits filed with the quarterly report, including certifications from the Chief Executive Officer and Chief Financial Officer, and various Inline XBRL documents - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer (31.1, 31.2, 32.1)[179](index=179&type=chunk) - Various Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104) are filed[179](index=179&type=chunk) [Signatures](index=64&type=section&id=Signatures) The report is duly signed on behalf of the registrant by the Executive Vice President and Chief Financial Officer - The report is signed by Richard Pimentel, Executive Vice President and Chief Financial Officer, on behalf of Community West Bancshares[180](index=180&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 March 31, 2023 or ☐ 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: 000-23575 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) (State or other juri ...

Regulatory Environment - The Company is subject to extensive regulation by the Board of Governors of the Federal Reserve System (FRB) and the Office of the Comptroller of the Currency (OCC) which impacts its operations and financial performance[216]. - Under Basel III, the minimum capital ratios required are 4.5% CET1 to risk-weighted assets, 6.0% Tier 1 capital, and 8.0% Total capital[227]. - The Company must maintain an additional capital conservation buffer of 2.5% of CET1, resulting in effective minimum ratios of 7% CET1, 8.5% Tier 1 capital, and 10.5% total capital to risk-weighted assets[227]. - The Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA) modified certain financial reform rules, particularly for institutions with assets under $10 billion[223]. - The Dodd-Frank Act requires publicly traded companies to provide stockholders with a non-binding vote on executive compensation at least every three years[222]. - The Company is required to file periodic reports with the SEC, including annual reports on Form 10-K and quarterly reports on Form 10-Q[41]. - The Federal Deposit Insurance Corporation (FDIC) insures the Bank's deposits up to certain prescribed limits, which affects the Company's operations[216]. - The Company is subject to limitations on loans to affiliates, which are capped at 10% of capital for any one affiliate and 20% for all affiliates combined[232]. - The current administration's commitment to enforce Dodd-Frank provisions may impact the Company's operations and financial condition[225]. - CWB's capital levels are subject to regulatory scrutiny, with higher capital levels required for significant growth or risk exposure[241]. - The FRB's capital guidelines require banks to maintain capital ratios above minimum levels based on their risk profiles[241]. - The Dodd-Frank Act mandates the FDIC to maintain a reserve ratio of 1.35% by 2028, with recent amendments to the assessment plan[259]. Capital and Financial Performance - CWB's total risk-based capital ratio is 12.62%, exceeding the minimum requirement of 8.00% for being "well capitalized"[250]. - The Tier 1 risk-based capital ratio for CWB is 11.46%, above the minimum requirement of 6.00%[250]. - CWB's Common Equity Tier 1 capital ratio stands at 11.46%, surpassing the minimum of 4.50%[250]. - CWB is classified as "well capitalized," allowing it to accept brokered deposits without restrictions[257]. - The allowance for loan losses was $10.8 million as of December 31, 2022, consisting of $0.2 million for specific reserves and $10.6 million for general reserves[303]. - The company’s general reserves for loan losses are based on historical experience and qualitative factors, which require significant management judgment[304]. - The projected change in economic value of equity under a 500 basis point increase scenario was $191,302 thousand as of December 31, 2022, compared to $168,442 thousand for the same scenario in 2021, indicating a 13.5% increase[294][295]. - The company reported a provision for loan losses of $(195,000) in 2022, compared to $(181,000) in 2021, indicating a slight increase in credit quality[319]. - The total recorded investment in past due loans was $2.88 million, with $2.78 million classified as past due and $102 thousand over 90 days past due[406]. - The company reported recoveries of $738 thousand in 2022, compared to $392 thousand in 2021, showing an increase in recoveries[410]. Interest Rate Risk Management - The Company actively manages interest rate risk through asset and liability management, with internal policy limits to minimize risk from rising interest rates[288]. - A simulation model forecasts the impact of interest rate changes on net interest income (NII) and economic value of equity (EVE), with results indicating potential dollar and percentage impacts[289]. - The Company does not currently use derivative instruments for interest rate risk management but may consider them in the future if necessary[288]. - As of December 31, 2022, net interest income was projected to be $42,545 thousand under a 500 basis point increase scenario, reflecting a 10.0% decrease from the base case[291]. - Interest income under a base case scenario was $55,852 thousand as of December 31, 2022, with a projected interest expense of $8,600 thousand, resulting in net interest income of $47,252 thousand[291]. Loan Portfolio and Credit Quality - The company’s commercial real estate loans accounted for approximately 57.1% of total loans as of December 31, 2022, up from 53.9% in 2021[323]. - The average loan-to-value ratio for secured loans was 50.4% as of December 31, 2022, compared to 53.7% in 2021, indicating improved collateral coverage[323]. - The Company maintains an Allowance for Loan Losses (ALL) based on estimates intended to cover probable losses inherent in the loan portfolio, utilizing migration analysis and historical loss rates[341]. - Impaired loans are classified based on the likelihood of collecting scheduled payments, with management considering factors such as payment status and collateral value[339]. - Troubled Debt Restructurings (TDR) involve concessions granted to borrowers due to financial difficulties, primarily through term extensions and rate reductions[340]. - The Company evaluates and assesses impairment on loans classified as substandard or doubtful, establishing specific reserves based on individual loan characteristics[353]. - Charge-offs for commercial, CRE, and SBA loans occur as soon as any portion of the loan balance is deemed uncollectible, with unsecured loans delinquent over 90 days charged off in full[350]. - Consumer loans, excluding real estate mortgages, are charged off or charged down to net recoverable value before becoming 120 days or five payments delinquent[352]. - The ALL calculation incorporates qualitative factors related to non-impaired loans, adjusting based on migration analysis and risk ratings[356]. Financial Results - Total assets decreased to $1,091,502, down 5.67% from $1,157,052 in 2021[310]. - Net interest income increased to $45,810, up 10.76% from $42,374 in 2021[312]. - Net income for 2022 was $13,449, representing a 2.66% increase from $13,101 in 2021[312]. - Total deposits decreased to $875,084, down 7.89% from $950,131 in 2021[310]. - Loans held for investment increased to $934,309, up 7.56% from $868,675 in 2021[310]. - Non-interest expenses rose to $31,272, an increase of 11.00% from $27,995 in 2021[312]. - Basic earnings per share increased to $1.54, up from $1.53 in 2021[312]. - Dividends declared per common share increased to $0.295, up from $0.270 in 2021[312]. - Total stockholders' equity increased to $112,650, up 11.23% from $101,375 in 2021[310]. - Comprehensive income for 2022 was $12,586, a decrease from $13,158 in 2021[314]. Investment Securities - As of December 31, 2022, the total fair value of investment securities was $26,688,000, down from $27,790,000 in 2021[398]. - The Company had no sales of investment securities in 2022, 2021, or 2020[399]. - The Company pledged $21.1 million of securities at carrying value to the Federal Home Loan Bank as collateral for current and future advances as of December 31, 2022[398]. - The amortized cost of U.S. Treasury securities was $9,984,000 with a fair value of $9,970,000 as of December 31, 2022[398]. - The Company is evaluating the impact of reference rate reform on financial reporting, with $4.2 million of securities tied to LIBOR as of December 31, 2021[394]. - The adoption of ASU 2022-02 is not expected to have a material effect on the Company's consolidated operating results or financial condition[396]. - The company reported unrealized losses of $1,128,000 on securities available for sale as of December 31, 2022, with 37 securities in an unrealized loss position[402]. - The total fair value of securities held to maturity was $2,557,000 as of December 31, 2022, compared to $2,815,000 in 2021[400]. Compliance and Governance - CWB has incurred substantial costs due to compliance with the Sarbanes-Oxley Act, impacting financial reporting and audit quality[246]. - The Anti-Money Laundering Act of 2020 represents significant revisions to AML laws, enhancing government oversight and compliance obligations for financial institutions[265]. - FinCEN identified eight priorities for AML compliance, including corruption, cybercrime, and drug trafficking, to be integrated into banks' risk-based BSA compliance programs[266]. - The AML Act expands the applicability of federal AML laws to industries such as cryptocurrency and antiquities, increasing the regulatory burden on these sectors[267]. - The Corporate Transparency Act requires reporting companies to disclose beneficial ownership information to a confidential database by January 1, 2025[272]. - The Company is subject to various federal and state consumer compliance laws, which are increasingly enforced by regulators[281].

Financial Performance - Total interest and dividend income for the three months ended September 30, 2022, was $12,654 thousand, an increase from $11,835 thousand in the same period of 2021, representing a growth of 6.9%[8] - Net income for the nine months ended September 30, 2022, was $10,073 thousand, compared to $10,207 thousand for the same period in 2021, reflecting a decrease of 1.3%[8] - Earnings per share (EPS) for the three months ended September 30, 2022, was $0.39 diluted, down from $0.41 diluted in the same period of 2021, a decline of 4.9%[8] - Net income for the three months ended September 30, 2022, was $3,478,000, a decrease of 4.3% compared to $3,635,000 for the same period in 2021[10] - Comprehensive income for the three months ended September 30, 2022, was $3,171,000, down from $3,623,000 in the prior year, reflecting a decline of 12.5%[10] - For the nine months ended September 30, 2022, net income totaled $10,073,000, a slight decrease of 1.3% from $10,207,000 in the same period of 2021[10] Expenses and Income Tax - Total non-interest expenses for the nine months ended September 30, 2022, were $22,693 thousand, an increase of 11.3% compared to $20,389 thousand for the same period in 2021[8] - The provision for income taxes for the nine months ended September 30, 2022, was $3,851 thousand, down from $4,077 thousand in the same period of 2021, a decrease of 5.6%[8] Assets and Liabilities - Total assets as of September 30, 2022, were $1,088,278 thousand, a decrease from $1,157,052 thousand as of December 31, 2021, representing a decline of 5.9%[6] - Total liabilities as of September 30, 2022, were $852,189 thousand, down from $950,131 thousand as of December 31, 2021, a decrease of 10.3%[6] - Total stockholders' equity increased to $109,821,000 as of September 30, 2022, up from $98,767,000 a year earlier, representing an increase of 11.2%[12] Dividends - The company declared dividends of $0.075 per common share for the three months ended September 30, 2022, compared to $0.070 per common share in the same period of 2021, an increase of 7.1%[8] - The company reported a cash dividend of $1,916,000 paid on common stock for the nine months ended September 30, 2022, compared to $1,709,000 in the previous year, reflecting an increase of 12.1%[22] Loan Performance - The provision for loan losses was $266,000 for the nine months ended September 30, 2022, compared to a credit of $207,000 in the same period of 2021[22] - The total loans held for investment reached $923,598,000 as of September 30, 2022, compared to $868,675,000 as of December 31, 2021, indicating an increase of about 6.3%[83] - The allowance for loan losses was $11,113,000 as of September 30, 2022, compared to $10,404,000 as of December 31, 2021, reflecting an increase of approximately 6.8%[83] - The total recorded investment in past due held for investment loans is $924,549 thousand, with $1,644 thousand over 90 days and accruing[89] - The total amount of corporate debt securities was $9,250,000, with gross unrealized losses of $880,000[72] Investment Securities - As of September 30, 2022, the total amortized cost of investment securities was $58,192,000, with a fair value of $57,115,000, reflecting gross unrealized losses of $1,116,000[72] - The fair value of U.S. Treasury securities was $39,795,000 as of September 30, 2022, with gross unrealized losses of $135,000[78] - The total gross unrealized losses for securities available-for-sale were $946,000 as of September 30, 2022, with a fair value of $49,943,000[78] Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of $14,456,000 for the nine months ended September 30, 2022, compared to $17,008,000 for the same period in 2021, indicating a decrease of 15%[22] - Cash and cash equivalents at the end of the period were $51,295,000, down from $186,935,000 at the end of the previous year, reflecting a decrease of 72.6%[22] Regulatory Ratios - CWB's actual regulatory ratios as of September 30, 2022, included Total Capital to Risk-Weighted Assets at 12.46%, Tier 1 Capital at 11.30%, and Leverage Ratio at 9.83%, all exceeding minimum capital requirements[148] Non-Interest Income - Non-interest income in-scope of ASC 606 for the three months ended September 30, 2022, was $216 thousand, compared to $184 thousand for the same period in 2021, reflecting a growth of 17.39%[154] - Service charges on deposit accounts for the three months ended September 30, 2022, were $87 thousand, an increase from $59 thousand in the same period of 2021, representing a growth of 47.46%[154] - Non-interest income decreased to $872 for the three months ended September 30, 2022, down by $168 from $1,040 in 2021, a decline of approximately 16.2%[178]

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, 2022 or ☐ 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: 000-23575 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-0446957 ...

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 March 31, 2022 or ☐ 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: 000-23575 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-044695 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 Commission File Number: 000-23575 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-0446957 (State or other ...

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, 2021 or ☐ 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: 000-23575 COMMUNITY WEST BANCSHARES (Exact name of registrant as specified in its charter) California 77-04 ...