Community West Bancshares Q3 2024 10-Q Filing

TL;DR

CVKY Q3 10-Q is in. Financials look solid, check the details.

AI Summary

Community West Bancshares filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details for the third quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with a detailed look at Community West Bancshares' financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Community West Bancshares is subject to inherent risks related to market fluctuations, interest rate changes, and regulatory compliance.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20241106 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Community West Bancshares (company) — Filer of the 10-Q
• 20240930 (date) — End of reporting period
• 20241106 (date) — Filing date
• 7100 N. FINANCIAL DRIVE, #101 (address) — Company business and mailing address
• FRESNO, CA (location) — Company headquarters

FAQ

Filing Documents

• cvcy-20240930.htm (10-Q) — 3501KB
• exhibit3112024q3.htm (EX-31.1) — 14KB
• exhibit3122024q3.htm (EX-31.2) — 14KB
• exhibit3212024q3.htm (EX-32.1) — 6KB
• exhibit3222024q3.htm (EX-32.2) — 6KB
• 0001628280-24-045661.txt ( ) — 16858KB
• cvcy-20240930.xsd (EX-101.SCH) — 51KB
• cvcy-20240930_cal.xml (EX-101.CAL) — 136KB
• cvcy-20240930_def.xml (EX-101.DEF) — 396KB
• cvcy-20240930_lab.xml (EX-101.LAB) — 789KB
• cvcy-20240930_pre.xml (EX-101.PRE) — 618KB
• cvcy-20240930_htm.xml (XML) — 4178KB

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 40 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 59 ITEM 1

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 59 ITEM 1A

RISK FACTORS

RISK FACTORS 59 ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 59 ITEM 3 DEFAULTS UPON SENIOR SECURITIES 59 ITEM 4 MINE SAFETY DISCLOSURES 59 ITEM 5 OTHER INFORMATION 59 ITEM 6 EXHIBITS 60

SIGNATURES

SIGNATURES 61 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) September 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 44,418 $ 30,017 Interest-earning deposits in other banks 104,595 23,711 Total cash and cash equivalents 149,013 53,728 Available-for-sale debt securities, at fair value, net of allowance for credit losses of $ 0 , with an amortized cost of $ 553,963 at September 30, 2024 and $ 669,646 at December 31, 2023, respectively 503,964 597,196 Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $ 857 at September 30, 2024 and $ 1,051 at December 31, 2023, respectively 301,920 302,442 Equity securities, at fair value 6,790 6,649 Loans, less allowance for credit losses of $ 24,891 at September 30, 2024 and $ 14,653 at December 31, 2023, respectively 2,272,252 1,276,144 Bank premises and equipment, net 23,524 14,042 Bank-owned life insurance 51,515 41,572 Federal Home Loan Bank stock 10,978 7,136 Goodwill 96,379 53,777 Accrued interest receivable and other assets 114,963 80,740 Total assets $ 3,531,298 $ 2,433,426 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest bearing $ 1,076,423 $ 951,541 Interest bearing 1,845,272 1,090,071 Total deposits 2,921,695 2,041,612 Borrowings 132,508 80,000 Senior debt and subordinated debentures, less debt issuance costs of $ 302 at September 30, 2024 and $ 411 at December 31, 2023 69,853 69,744 Accrued interest payable and other liabilities 43,727 35,006 Total liabilities 3,167,783 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: 18,945,593 at September 30, 2024 and 11,818,039 at December 31, 2023 207,164 62,550 Retained earnings 205,362 210,548 Accumulat

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 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 September 30, 2024, and the results of its operations and its cash flows for the three and nine month interim periods ended September 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

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