Community West Bancshares Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Community West Bancshares filed its Q1 2024 10-Q report, detailing financial positions and performance for the quarter ending March 31, 2024.</b>

AI Summary

Community West Bancshares (CWBC) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Total assets stood at $11.83 billion as of March 31, 2024. Total debt was $11.82 billion as of March 31, 2024. The company reported $14.66 billion in revenue for the quarter ending March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. Community West Bancshares was formerly known as Central Valley Community Bancorp.

Why It Matters

For investors and stakeholders tracking Community West Bancshares, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Community West Bancshares' financial health and operational performance, crucial for assessing investment value and risk. The detailed financial data, including asset and debt levels, allows for a comparison against previous periods and industry benchmarks, informing strategic investment decisions.

Risk Assessment

Risk Level: medium — Community West Bancshares shows moderate risk based on this filing. The company's total assets and total debt are nearly identical ($11.83 billion vs $11.82 billion), indicating a highly leveraged financial structure which could pose risks in a changing economic environment.

Analyst Insight

Investors should closely monitor the company's debt-to-equity ratio and interest coverage in future filings to assess financial stability.

Financial Highlights

revenue

14,658,000,000

total Assets

11,831,994,000

total Debt

11,818,039,000

revenue Growth

0.0034%

Key Numbers

• 11,831,994,000 — Total Assets (As of March 31, 2024)
• 11,818,039,000 — Total Debt (As of March 31, 2024)
• 14,658,000,000 — Revenue (For the quarter ending March 31, 2024)
• 14,653,000,000 — Revenue (For the quarter ending March 31, 2023)

Key Players & Entities

• Community West Bancshares (company) — Filer name
• Central Valley Community Bancorp (company) — Former company name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-14 (date) — Filed as of date
• 7100 N. FINANCIAL DRIVE, #101 (address) — Business address
• FRESNO (location) — Business address city
• CA (location) — Business address state
• 6022 (sic_code) — Standard Industrial Classification

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — Reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q report was submitted to the SEC.

Key Financial Figures

• $0 — , net of allowance for credit losses of $0, with an amortized cost of $643,525 at
• $643,525 — losses of $0, with an amortized cost of $643,525 at March 31, 2024 and $669,646 at Decem
• $669,646 — cost of $643,525 at March 31, 2024 and $669,646 at December 31, 2023 573,534 597,196 H
• $894 — ost less allowance for credit losses of $894 at March 31, 2024 and $1,051 at Decembe
• $1,051 — it losses of $894 at March 31, 2024 and $1,051 at December 31, 2023 302,512 302,442 E
• $14,658 — ns, less allowance for credit losses of $14,658 at March 31, 2024 and $14,653 at Decemb
• $14,653 — losses of $14,658 at March 31, 2024 and $14,653 at December 31, 2023 1,271,951 1,276,14
• $375 — debentures, less debt issuance costs of $375 at March 31, 2024 and $411 at December
• $411 — nce costs of $375 at March 31, 2024 and $411 at December 31, 2023 69,780 69,744 Acc
• $3.5 billion — pany, had total assets of approximately $3.5 billion. Immediately prior to the merger on Mar
• $973 m — mmunity West had loans of approximately $973 million, deposits of approximately $848 m
• $848 m — $973 million, deposits of approximately $848 million, borrowings from the Federal Home
• $90 m — me Loan Bank of San Francisco (FHLB) of $90 million, and total assets of approximatel
• $1.1 billion — lion, and total assets of approximately $1.1 billion. These amounts are subject to change as
• $383,000 — acquisition. Merger-related expenses of $383,000, are reflected in non-interest expense

Filing Documents

• cvcy-20240331.htm (10-Q) — 2609KB
• exhibit3112024q1.htm (EX-31.1) — 14KB
• exhibit3122024q1.htm (EX-31.2) — 14KB
• exhibit3212024q1.htm (EX-32.1) — 6KB
• exhibit3222024q1.htm (EX-32.2) — 6KB
• 0001628280-24-023222.txt (&nbsp;) — 12664KB
• cvcy-20240331.xsd (EX-101.SCH) — 40KB
• cvcy-20240331_cal.xml (EX-101.CAL) — 99KB
• cvcy-20240331_def.xml (EX-101.DEF) — 303KB
• cvcy-20240331_lab.xml (EX-101.LAB) — 605KB
• cvcy-20240331_pre.xml (EX-101.PRE) — 464KB
• cvcy-20240331_htm.xml (XML) — 3133KB

FINANCIAL STATEMENTS (Unaudited)

FINANCIAL STATEMENTS (Unaudited) 5 ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 32 ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 45

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 45 ITEM 4

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 45 PART II OTHER INFORMATION 45 ITEM 1

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 46 ITEM 1A

RISK FACTORS

RISK FACTORS 46 ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 46 ITEM 3 DEFAULTS UPON SENIOR SECURITIES 46 ITEM 4 MINE SAFETY DISCLOSURES 46 ITEM 5 OTHER INFORMATION 46 ITEM 6 EXHIBITS 47

SIGNATURES

SIGNATURES 48 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain matters set forth herein (including any exhibits hereto) constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as "likely result in," "expects," "anticipates," "estimates," "forecasts," "projects," "intends to," or may include other similar words or phrases, such as "believes," "plans," "trend," "objective," "continues," "remains," or similar expressions, or future or conditional verbs, such as "will," "would," "should," "could," "may," "might," "can," or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: current and future business, economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values and overall slowdowns in economic growth should these events occur; inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in the portfolio or in the secondary market; effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board; geopolitical and domestic political developments that can increase levels of political and economic unpr

: FINANCIAL STATEMENTS

ITEM 1: FINANCIAL STATEMENTS COMMUNITY WEST BANCSHARES AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share amounts) March 31, 2024 December 31, 2023 ASSETS Cash and due from banks $ 25,068 $ 30,017 Interest-earning deposits in other banks 35,891 23,711 Total cash and cash equivalents 60,959 53,728 Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $643,525 at March 31, 2024 and $669,646 at December 31, 2023 573,534 597,196 Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $894 at March 31, 2024 and $1,051 at December 31, 2023 302,512 302,442 Equity securities, at fair value 6,579 6,649 Loans, less allowance for credit losses of $14,658 at March 31, 2024 and $14,653 at December 31, 2023 1,271,951 1,276,144 Bank premises and equipment, net 14,102 14,042 Bank-owned life insurance 41,848 41,572 Federal Home Loan Bank stock 7,136 7,136 Goodwill 53,777 53,777 Accrued interest receivable and other assets 83,226 80,740 Total assets $ 2,415,624 $ 2,433,426 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest bearing $ 911,176 $ 951,541 Interest bearing 1,120,073 1,090,071 Total deposits 2,031,249 2,041,612 Short-term borrowings 67,000 80,000 Senior debt and subordinated debentures, less debt issuance costs of $375 at March 31, 2024 and $411 at December 31, 2023 69,780 69,744 Accrued interest payable and other liabilities 35,878 35,006 Total liabilities 2,203,907 2,226,362 Commitments and contingencies ( Note 8 ) Shareholders' equity: Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding — — Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,831,994 at March 31, 2024 and 11,818,039 at December 31, 2023 62,801 62,550 Retained earnings 212,805 210,548 Accumulated other comprehensive loss, net of tax ( 63,889 ) ( 66,034 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) Note 1. Description of Business and Basis of Presentation The interim unaudited condensed consolidated financial statements of Community West Bancshares and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim condensed consolidated financial statements include the accounts of Community West Bancshares and its wholly owned subsidiary Community West Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's 2023 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company's financial position at March 31, 2024, and the results of its operations and its cash flows for the three month interim periods ended March 31, 2024 and 2023 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 855, "Subsequent Events," the Company's management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements. On April 1, 2024, the Compan

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