COMMUNITY WEST BANCSHARES REPORTS EARNINGS RESULTS FOR THE QUARTER ENDED JUNE 30, 2025, QUARTERLY DIVIDEND, AND SHARE REPURCHASE PROGRAM (Form 8-K)

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 and $0.33 per diluted common share for the three months ended June 30, 2024. The Company declared a $0.12 per common share cash dividend, payable on August 15, 2025 to shareholders of record as of August 1, 2025.

The Board of Directors of the Company approved the adoption of a share repurchase program for up to 3% of the Company's outstanding common stock, which represents approximately 573,915 shares based on the total number of outstanding common shares as of July 16, 2025. The share repurchase program will begin on July 22, 2025. The Company will repurchase shares in open-market transactions through brokers, subject to availability, or in privately negotiated transactions. All repurchases will be made at management's discretion, subject to market conditions and other factors, and in compliance with regulatory requirements.

FINANCIAL HIGHLIGHTS

•Net income during the second quarter decreased to $7.8 million, or $0.41 per diluted common share, compared to net income of $8.3 million and $0.44, respectively, in the first quarter of 2025. The decrease in net income as compared to the trailing quarter was attributable to the increased provision for loan losses during the quarter.

•The Company recorded a provision for credit losses of $2.61 million during the quarter ended June 30, 2025, as compared to a credit to the provision for credit losses of $41,000 during the trailing quarter. The change is attributed to an increase in required reserves totaling $2.64 million on loans, an increase of $161,000 in reserves for unfunded commitments, partially offset by a credit to the provision for HTM securities of $188,000. The additional provision during the quarter was due to strong loan growth and deteriorating economic forecasts as compared to the prior quarter.

•Gross loans increased by $52.5 million or 2.20% for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025 and increased $65.2 million or 2.80% year-to-date.

•Totals deposits increased by $66.0 million or 2.30% compared to the quarter ended March 31, 2025 and $84.1 million or 2.90% year-to-date.

•Total cost of deposits decreased to 1.43% for the quarter ended June 30, 2025 compared to 1.45% and 1.49% for the quarters ended March 31, 2025 and December 31, 2024, respectively.

•Average non-interest bearing demand deposit accounts as a percentage of total average deposits totaled 34.48% and 34.30% for the quarters ended June 30, 2025 and March 31, 2025, respectively.

•Net interest margin increased to 4.10% for the quarter ended June 30, 2025, from 4.04% and 3.95% for the quarters ended March 31, 2025 and December 31, 2024, respectively.

•Capital positions remain strong at June 30, 2025 with a 9.48% Tier 1 Leverage Ratio; a 11.42% Common Equity Tier 1 Ratio; a 11.59% Tier 1 Risk-Based Capital Ratio; and a 13.89% Total Risk-Based Capital Ratio.

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Reflecting on the first half of 2025, James J. Kim, CEO of the Company, stated, "Midway through 2025, the economic environment and business climate remains uncertain. Key industries across our Central California territory feel the effects of persistent inflation, evolving federal policy including its impact on labor and ongoing trade tensions. Despite these headwinds, the Company remains well-positioned, supported by a strong deposit base, prudent credit management and robust levels of capital and liquidity."

"Our disciplined approach, combined with longstanding client relationships and a strong team culture focused on exceeding service expectations, continues to drive performance and stability - even amid the uncertainties in our environment."

"The second quarter 2025 results evidence the continued progress of our Company's 2024 merger, highlighting the strength of our expanded team, synergies on both the revenue and expense front, broader Central California footprint and well-capitalized balance sheet," said Shannon Livingston, Executive Vice President and Chief Financial Officer.

"We're proud of the Company's continued momentum, reflected in five consecutive quarters of increasing net interest margin. Importantly, the Company's cost of deposits declined compared to both the prior quarter and year-end 2024, underscoring the strength of our client relationships. Gross loans and total deposits increased during the second quarter and year-to-date. Overall, Company results reflect a positive trajectory and operational strength."

Results of Operations

						Three months ended
						June 30,						March 31,						June 30,
(In thousands, except share and per-share amounts)						2025						2025						2024
Net interest income before provision (credit) for credit losses						$	33,304					$	32,182					$	29,057
Provision (credit) for credit losses						2,613						(41)						9,831
Net interest income after provision (credit) for credit losses						30,691						32,223						19,226
Total non-interest income						2,364						2,611						1,400
Total non-interest expenses						22,296						23,470						28,503
Income (loss) before provision for income taxes						10,759						11,364						(7,877)
Provision (benefit) for income taxes						2,927						3,071						(1,587)
Net income (loss)						$	7,832					$	8,293					$	(6,290)

Statement Regarding use of Non-GAAP Financial Measures

In this press release, Community West Bancshares's financial results are presented in accordance with GAAP and refer to certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and manage the Company's business. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.

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Reconciliation of GAAP and Non-GAAP Financial Measures

						Three months ended																		For the Six Months Ended
						June 30,						March 31,						June 30,						June 30,						June 30,
(Dollars in thousands)						2025						2025						2024						2025						2024
PRE-TAX PRE-PROVISION RETURN ON AVERAGE ASSETS OR EQUITY
Net income (loss) (GAAP)						$	7,832					$	8,293					$	(6,290)					$	16,125					$	(2,614)
Exclude provision (benefit) for income taxes						2,927						3,071						(1,587)						5,998						(463)
Exclude provision (credit) for credit losses						2,613						(41)						9,831						2,572						10,407
Net income before income tax and provision expense (Non-GAAP)						$	13,372					$	11,323					$	1,954					$	24,695					$	7,330
RETURN ON AVERAGE ASSETS (Annualized)
Average assets						$	3,553,327					$	3,528,337					$	3,468,433					$	3,540,901					$	2,944,622
Return on average assets (GAAP)						0.88		%				0.94		%				(0.73)		%				0.91		%				(0.18)		%
Pre-tax pre-provision return on average assets (Non-GAAP)						1.51		%				1.28		%				0.23		%				1.39		%				0.50		%
RETURN ON AVERAGE EQUITY (Annualized)
Average stockholders' equity						$	377,413					$	369,903					$	334,809					$	373,735					$	271,238
Return on average equity (GAAP)						8.30		%				8.97		%				(7.39)		%				8.63		%				(1.91)		%
Pre-tax pre-provision return on average equity (Non-GAAP)						14.17		%				12.24		%				2.33		%				13.22		%				5.40		%

						Three months ended
						June 30,						March 31,						December 31,						September 30,						June 30,
(Dollars in thousands)						2025						2025						2024						2024						2024
TANGIBLE COMMON EQUITY
Shareholders' equity (GAAP)						$	380,002					$	371,937					$	362,685					$	363,515					$	350,242
Exclude goodwill						96,828						96,828						96,828						96,379						96,379
Exclude other intangibles assets						8,767						9,017						9,268						9,518						9,769
Tangible common equity (Non-GAAP)						$	274,407					$	266,092					$	256,589					$	257,618					$	244,094
TANGIBLE COMMON EQUITY PER SHARE
Tangible shareholders' equity (Non-GAAP)						$	274,407					$	266,092					$	256,589					$	257,618					$	244,094
Common shares outstanding at end of period						19,130,508						19,061,009						18,974,674						18,945,988						18,939,531
Common shareholders' equity (book value) per share (GAAP)						$	19.86					$	19.53		$	19.19		$	19.11					$	19.19					$	18.49
Tangible common shareholders' equity (tangible book value) per share (Non-GAAP)						$	14.34					$	13.97					$	13.52					$	13.60					$	13.60

For the quarter ended June 30, 2025, the Company reported unaudited consolidated net income of $7,832,000 and diluted earnings per common share of $0.41, compared to consolidated net income of $8,293,000 and $0.44 per fully diluted share for the trailing quarter, and consolidated net loss of $6,290,000 and $0.33 per diluted share for the same period in 2024. The Company's earnings during the quarter benefited from an increase in net interest income before provision for credit losses and a decrease in non-interest expenses. However, this was offset by the current quarter's provision for credit losses on loans and a decrease in non-interest income.

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Annualized return on average equity (ROAE) for the quarter ended June 30, 2025 was 8.30%, compared to (7.39)% for the same period of 2024. Annualized return on average assets (ROAA) was 0.88% for the quarter ended June 30, 2025 compared to (0.73)% for the same period in 2024.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.95% for the quarter ended June 30, 2025, compared to 3.21% for the quarter ended June 30, 2024 and 3.02% for the quarter ended March 31, 2025.

Total average loans increased by $141,862,000 to $2,370,325,000 for the quarter ended June 30, 2025, from $2,228,463,000 for the quarter ended June 30, 2024 and increased by $36,328,000 from $2,333,997,000 for the quarter ended March 31, 2025. The year over year increase was due to organic loan growth throughout the Company's expanded footprint. The effective yield on average loans was 6.71% for the quarter ended June 30, 2025, compared to 6.54% and 6.69% for the quarters ended June 30, 2024 and March 31, 2025, respectively.

The Company's net interest margin (fully tax equivalent basis) was 4.10% for the quarter ended June 30, 2025, compared to 3.65% for the quarter ended June 30, 2024 and 4.04% for the quarter ended March 31, 2025. Net interest income, before provision for credit losses, increased by $4,247,000 or 14.62%, to $33,304,000 for the second quarter of 2025, compared to $29,057,000 for the same period in 2024. In addition to the increase in average loans due to the merger and organic loan growth, the Company's yield on interest earning assets has increased from 5.50% for the quarter ended June 30, 2024 to 5.65% for the quarter ended June 30, 2025. Additionally, the Company benefited from a decrease in the costs on interest-bearing liabilities, in which the cost of total deposits decreased to 1.43% from 1.71% when comparing the quarters ended June 30, 2025 and 2024. The decrease in the cost of deposits is primarily attributed to rate decreases in the money market and time deposit portfolios from both acquired deposits from the merger and the Company's existing base. Net interest income during the three months ended June 30, 2025 and 2024 and March 31, 2025 benefited by approximately 31 basis points ($2,588,000), one basis point ($41,000), and 24 basis points ($2,052,000), respectively, from the net accretion of fair value marks.

Non-Interest Income - The following tables present the key components of non-interest income for the periods indicated:

						Three months ended
						June 30,						March 31,
(Dollars in thousands)						2025						2025						$ Change						% Change
Service charges						$	505					$	502					$	3					0.6		%
Interchange fees						492						516						(24)						(4.7)		%
Appreciation in cash surrender value of bank owned life insurance						372						366						6						1.6		%
Federal Home Loan Bank dividends						237						241						(4)						(1.7)		%
Loan placement fees						180						237						(57)						(24.1)		%
Net realized losses on sales and calls of investment securities						(15)						-						(15)						-		%
Other income						593						749						(156)						(20.8)		%
Total non-interest income						$	2,364					$	2,611					$	(247)					(9.5)		%

The decrease in total non-interest income for the quarter ended June 30, 2025 as compared to the trailing quarter was primarily driven by a decrease in loan servicing income and fair value adjustments of equity securities.

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						Six months ended June 30,
(Dollars in thousands)						2025						2024						$ Change						% Change
Service charges						$	1,007					$	864					$	143					16.6		%
Interchange fees						1,008						1,040						(32)						(3.1)		%
Appreciation in cash surrender value of bank owned life insurance						738						622						116						18.6		%
Federal Home Loan Bank dividends						478						317						161						50.8		%
Loan placement fees						417						592						(175)						(29.6)		%
Net realized losses on sales and calls of investment securities						(15)						(2,346)						2,331						(99.4)		%
Other income						1,342						1,948						(606)						(31.1)		%
Total non-interest income						$	4,975					$	3,037					$	1,938					63.8		%

Increases in non-interest income as compared to the prior year quarter are attributed to increased volume from the consummation of the merger as of April 1, 2024 and reduction in realized losses on sales and calls of investments securities. Realized losses on sales and calls of investment securities decreased to $15,000 for the six months ended June 30, 2025 compared to a loss of $2,346,000 for the six months ended June 30, 2024. The increase was partially offset by lower loan placement fees and other investment income year-to-date through June 30, 2025.

Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:

						Three months ended
						June 30,						March 31,
(Dollars in thousands)						2025						2025						$ Change						% Change
Salaries and employee benefits						$	12,260					$	12,959					$	(699)					(5.4)		%
Occupancy and equipment						2,794						2,827						(33)						(1.2)		%
Information technology						1,791						1,902						(111)						(5.8)		%
Data processing expense						855						800						55						6.9		%
Professional services						639						864						(225)						(26.0)		%
Regulatory assessments						498						491						7						1.4		%
ATM/Debit card expenses						397						393						4						1.0		%
Amortization of core deposit intangibles						251						250						1						0.4		%
Advertising						241						261						(20)						(7.7)		%
Directors' expenses						236						216						20						9.3		%
Loan related expenses						164						212						(48)						(22.6)		%
Personnel other						97						101						(4)						(4.0)		%
Merger and acquisition expense						-						276						(276)						(100.0)		%
Other expense						2,073						1,918						155						8.1		%
Total non-interest expenses						$	22,296					$	23,470					$	(1,174)					(5.0)		%

During the second quarter of 2025, total non-interest expense decreased $1,174,000 as compared to the trailing quarter. The decrease was driven primarily by decreases in salary and employee benefits, professional services, and information technology. The decrease in salary and employee benefits was due to a reduction in payroll taxes. Professional services decreased due to lower legal fees and lower estimates for audit fees.

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						Six months ended June 30,
(Dollars in thousands)						2025						2024						$ Change						% Change
Salaries and employee benefits						$	25,219					$	22,090					$	3,129					14.2		%
Occupancy and equipment						5,621						3,966						1,655						41.7		%
Information technology						3,693						2,544						1,149						45.2		%
Data processing expense						1,655						1,722						(67)						(3.9)		%
Professional services						1,503						1,326						177						13.3		%
Regulatory assessments						989						954						35						3.7		%
ATM/Debit card expenses						790						632						158						25.0		%
Advertising						502						440						62						14.1		%
Amortization of core deposit intangibles						501						250						251						100.4		%
Directors' expenses						452						358						94						26.3		%
Loan related expenses						376						226						150						66.4		%
Merger and acquisition expense						278						5,939						(5,661)						(95.3)		%
Personnel other						198						180						18						10.0		%
Other expense						3,989						3,209						780						24.3		%
Total non-interest expenses						$	45,766					$	43,836					$	1,930					4.4		%

Increases in non-interest expenses as compared to the prior year-to-date period was due to the consummation of the merger as of April 1, 2024, partially offset by a reduction in non-recurring merger expenses.

Balance Sheet Summary

Total assets for the period ended June 30, 2025 increased $55,040,000 or 1.6%, compared to the period ended December 31, 2024. Total average assets for the quarter ended June 30, 2025 were $3,553,327,000 compared to $3,468,433,000 for the quarter ended June 30, 2024 and $3,528,337,000 for the quarter ended March 31, 2025, an increase of $84,894,000 or 2.40% and an increase of $24,989,000 or 0.70%, respectively. As a result of the merger on April 1, 2024, the Company recorded goodwill of approximately $43 million and core deposit intangibles of $10 million.

For the quarter ended June 30, 2025, the Company's average gross investment securities decreased by $105,213,000, or 11.30%, compared to the quarter ended June 30, 2024, and decreased by $12,446,000, or 1.50%, compared to the quarter ended March 31, 2025. This decrease compared to the prior year was the result of sales and maturities of available for sale (AFS) securities.

In comparing the quarter ended June 30, 2025 to the quarters ended June 30, 2024 and March 31, 2025, total average gross loans increased $141,862,000 or 6.40%, and increased by $36,328,000 or 1.60%, respectively.

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The following table shows the Company's outstanding loan portfolio composition as of June 30, 2025 and December 31, 2024:

						June 30, 2025												December 31, 2024
Loan Type (dollars in thousands)						Amount						% of Total						Amount						% of Total
Commercial:
Commercial and industrial						$	159,055					6.5		%				$	143,422					6.1		%
Agricultural production						27,597						1.2		%				37,323						1.6		%
Total commercial						186,652						7.7		%				180,745						7.7		%
Real estate:
Construction & other land loans						82,983						3.5		%				67,869						2.9		%
Commercial real estate - owner occupied						335,612						14.0		%				323,188						13.9		%
Commercial real estate - non-owner occupied						938,865						39.0		%				913,165						39.1		%
Farmland						136,587						5.7		%				139,815						6.0		%
Multi-family residential						143,007						6.0		%				133,595						5.7		%
1-4 family - close-ended						111,491						4.6		%				123,445						5.3		%
1-4 family - revolving						35,454						1.5		%				35,421						1.5		%
Total real estate						1,783,999						74.3		%				1,736,498						74.4		%
Consumer:
Manufactured housing						326,463						13.6		%				322,263						13.8		%
Other installment						100,759						4.2		%				92,839						4.0		%
Total consumer						427,222						17.8		%				415,102						17.8		%
Net deferred origination costs						1,514						0.1		%				1,876						0.1		%
Total gross loans						2,399,387						100.0		%				2,334,221						100.0		%
Allowance for credit losses						(28,722)												(25,803)
Total loans						$	2,370,665											$	2,308,418

The composition of deposits at June 30, 2025 and December 31, 2024 is summarized in the table below:

						June 30, 2025												December 31, 2024
(Dollars in thousands)						Amount						% of Total						Amount						% of Total
NOW accounts						$	451,739					15.1		%				$	470,548					16.2		%
MMA accounts						861,088						28.8		%				843,145						29.0		%
Time deposits						478,835						16.0		%				443,284						15.2		%
Savings deposits						167,888						5.6		%				172,976						5.9		%
Total interest-bearing						1,959,550						65.5		%				1,929,953						66.3		%
Non-interest bearing						1,035,371						34.5		%				980,824						33.7		%
Total deposits						$	2,994,921					100.0		%				$	2,910,777					100.0		%

Total average deposits increased $78,964,000 or 2.70%, to $2,962,832,000 for the quarter ended June 30, 2025, compared to $2,883,868,000 for the quarter ended June 30, 2024, and increased $56,355,000, or 1.90%, compared to $2,906,477,000 for the quarter ended March 31, 2025. The Company's ratio of average non-interest bearing deposits to total deposits was 34.48% for the quarter ended June 30, 2025, compared to 37.36% and 34.30% for the quarters ended June 30, 2024 and March 31, 2025, respectively.

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The Company has significant liquidity, both on and off-balance sheet, to meet customer demand. During the year-to-date period, the Company's cash and cash equivalents increased $13,975,000 to $134,373,000 compared to $120,398,000 at December 31, 2024. The Company had $86,000,000 in short-term borrowings at June 30, 2025 compared to $133,442,000 at December 31, 2024.

At June 30, 2025 and December 31, 2024, the Company had the following sources of primary and secondary liquidity:

Liquidity Sources (in thousands)						June 30, 2025						December 31, 2024
Cash and cash equivalents						$	134,373					$	120,398
Unpledged investment securities						352,438						403,669
Excess pledged securities						89,188						69,866
FHLB borrowing availability						625,413						576,556
Unsecured lines of credit availability						110,000						110,000
Funds available through FRB discount window						3,539						3,828
Total						$	1,314,951					$	1,284,317

Credit Quality

During the second quarter of 2025, the Company recorded net recoveries of $13,000 compared to $41,000 in net charge-offs for the same period in 2024. The net charge-off ratio reflects annualized net recoveries to average loans of 0.00% for the quarter ended June 30, 2025, compared to annualized net charge-offs of 0.01% for the quarter ended June 30, 2024. During the quarter ended June 30, 2025, the Company recorded a provision of $2,640,000 for losses on loans, compared to a $9,502,000 provision for loan losses for the quarter ended June 30, 2024. In addition to the provision for credit losses on loans for the quarter ended June 30, 2025, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $188,000 as compared to a provision of $182,000 in the prior year quarter. The Company recorded a provision for unfunded loan commitments totaling $161,000 for the quarter ended June 30, 2025 compared to a provision of $147,000 in the prior year quarter.

The following table shows the Company's loan portfolio, net of deferred costs, allocated by management's internal risk ratings:

Loan Risk Rating (In thousands)						June 30, 2025						% of Total						March 31, 2025						% of Total						June 30, 2024						% of Total
Pass						$	2,320,608					96.8		%				$	2,282,083					97.2		%				$	2,191,348					97.1		%
Special mention						19,706						0.8		%				17,209						0.7		%				25,576						1.1		%
Substandard						59,073						2.5		%				47,605						2.0		%				39,647						1.9		%
Doubtful						-												-												-
Total						$	2,399,387					100.0		%				$	2,346,897					100.0		%				$	2,256,571					100.0		%

At June 30, 2025, the allowance for credit losses for loans was $28,722,000, compared to $25,803,000 at December 31, 2024, a net increase of $2,919,000 reflecting a provision for loan losses of $2,808,000 and net recoveries during the period. The allowance for credit losses as a percentage of total loans was 1.20% as of June 30, 2025 compared to 1.11% at December 31, 2024. The Company believes the allowance for credit losses is adequate to provide for expected credit losses within the loan portfolio at June 30, 2025.

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Cash Dividend Declared

On July 16, 2025, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.12 per share on the Company's common stock. The dividend is payable on August 15, 2025 to shareholders of record as of August 1, 2025. The Company continues to be well capitalized and expects to maintain adequate capital levels.

Company Overview

Effective on April 1, 2024, Central Valley Community Bancorp completed its merger transaction with Community West Bancshares. Shortly thereafter Community West Bank, a wholly owned subsidiary of Community West Bancshares, merged with and into Central Valley Community Bank, a wholly-owned subsidiary of Central Valley Community Bancorp, with Central Valley Community Bank being the surviving banking institution. Effective with these mergers, the corporate names of Central Valley Community Bancorp and Central Valley Community Bank were changed to Community West Bancshares and Community West Bank, respectively.

Community West Bancshares ("Company") (NASDAQ: CWBC) and its wholly owned subsidiary, Community West Bank ("Bank"), are headquartered in Fresno, California. The Company was established in 1979 with the vision to help businesses and communities by exceeding expectations at every opportunity, and opened its first Banking Center on January 10, 1980. Today, the Bank operates full-service Banking Centers throughout Central California and maintains a variety of departments supporting Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking and Cash Management.

Members of the Company and Bank Board of Directors are: Daniel J. Doyle (Chairman), Robert H. Bartlein (Vice Chairman), James J. Kim (CEO of the Company and President and CEO of the Bank), Martin E. Plourd (President of the Company), Suzanne M. Chadwick, Daniel N. Cunningham, Tom L. Dobyns, F.T. "Tommy" Elliott IV, Robert J. Flautt, James W. Lokey, Andriana D. Majarian, Steven D. McDonald, Dorothea D. Silva, William S. Smittcamp and Kirk B. Stovesand. Louis C. McMurray is Director Emeritus.

More information about Community West Bancshares and Community West Bank can be found at www.communitywestbank.com. Also, follow the Company on LinkedIn, X and Facebook.

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