Community West Bancshares Files Q2 2024 10-Q

TL;DR

CVB Q2 10-Q is in. Financials look stable, check for details.

AI Summary

Community West Bancshares filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial metrics and business activities are disclosed, providing insight into the bank's current standing and future outlook.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Community West Bancshares, crucial for investment decisions.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Players & Entities

• Community West Bancshares (company) — Filer of the 10-Q
• 0001628280-24-036559 (other) — Accession Number for the filing
• 20240630 (date) — Conformed Period of Report
• 7100 N. FINANCIAL DRIVE, #101 (other) — Business and Mail Address
• FRESNO (other) — City of Business and Mail Address
• CA (other) — State of Business and Mail Address
• 93720 (other) — ZIP Code of Business and Mail Address
• 559-298-1775 (other) — Business Phone Number

FAQ

Filing Documents

• cvcy-20240630.htm (10-Q) — 3508KB
• exhibit3112024q2.htm (EX-31.1) — 14KB
• exhibit3122024q2.htm (EX-31.2) — 14KB
• exhibit3212024q2.htm (EX-32.1) — 6KB
• exhibit3222024q2.htm (EX-32.2) — 6KB
• 0001628280-24-036559.txt ( ) — 16773KB
• cvcy-20240630.xsd (EX-101.SCH) — 52KB
• cvcy-20240630_cal.xml (EX-101.CAL) — 136KB
• cvcy-20240630_def.xml (EX-101.DEF) — 395KB
• cvcy-20240630_lab.xml (EX-101.LAB) — 788KB
• cvcy-20240630_pre.xml (EX-101.PRE) — 616KB
• cvcy-20240630_htm.xml (XML) — 4186KB

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 41 ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 59

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 59 ITEM 4

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 59 PART II OTHER INFORMATION 60 ITEM 1

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 60 ITEM 1A

RISK FACTORS

RISK FACTORS 60 ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 60 ITEM 3 DEFAULTS UPON SENIOR SECURITIES 60 ITEM 4 MINE SAFETY DISCLOSURES 60 ITEM 5 OTHER INFORMATION 60 ITEM 6 EXHIBITS 61

SIGNATURES

SIGNATURES 62 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 unpre

: FINANCIAL STATEMENTS

ITEM 1: FINANCIAL STATEMENTS COMMUNITY WEST BANCSHARES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share amounts) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 26,437 $ 30,017 Interest-earning deposits in other banks 83,232 23,711 Total cash and cash equivalents 109,669 53,728 Available-for-sale debt securities, at fair value, net of allowance for credit losses of $ 0 , with an amortized cost of $ 598,174 at June 30, 2024 and $ 669,646 at December 31, 2023, respectively 531,972 597,196 Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $ 1,076 at June 30, 2024 and $ 1,051 at December 31, 2023, respectively 301,898 302,442 Equity securities, at fair value 6,551 6,649 Loans, less allowance for credit losses of $ 24,940 at June 30, 2024 and $ 14,653 at December 31, 2023, respectively 2,231,631 1,276,144 Bank premises and equipment, net 21,752 14,042 Bank-owned life insurance 51,166 41,572 Federal Home Loan Bank stock 10,978 7,136 Goodwill 96,379 53,777 Accrued interest receivable and other assets 122,675 80,740 Total assets $ 3,484,671 $ 2,433,426 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest bearing $ 1,075,882 $ 951,541 Interest bearing 1,793,418 1,090,071 Total deposits 2,869,300 2,041,612 Borrowings 150,638 80,000 Senior debt and subordinated debentures, less debt issuance costs of $ 375 at June 30, 2024 and $ 411 at December 31, 2023 69,817 69,744 Accrued interest payable and other liabilities 44,674 35,006 Total liabilities 3,134,429 2,226,362 Commitments and contingencies ( Note 9 ) 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: 18,939,531 at June 30, 2024 and 11,818,039 at December 31, 2023 206,821 62,550 Retained earnings 204,250 210,548 Accumulated other comprehensive loss,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 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 June 30, 2024, and the results of its operations and its cash flows for the three and six month interim periods ended June 30, 2024 and 2023 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year. Use of Estimates in the Preparation of Financial Statements The preparation of these interim unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amo

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