Community West Bancshares reported a net income of $11.5 million for the first quarter of 2026, translating to earnings per diluted share of $0.60, an increase from $8.3 million or $0.44 per share in the same period last year. The company’s total interest income rose to $47.9 million, up 6.1% from $45.1 million in the prior year, driven by a 9.1% increase in interest and fees on loans, which reached $41.9 million. The net interest margin improved to 4.30%, compared to 4.04% in the first quarter of 2025, reflecting a favorable shift in the interest rate environment.
In terms of operational metrics, total assets increased by $12.7 million, or 0.34%, to $3.7 billion as of March 31, 2026, while total deposits rose by 1.5% to $3.1 billion. The company’s loan portfolio also saw a modest increase, with gross loans totaling $2.55 billion, up 0.4% from the previous quarter. The allowance for credit losses on loans stood at $30.2 million, representing 1.18% of total loans, slightly higher than the $30.1 million recorded at the end of 2025.
A significant strategic development for Community West Bancshares was the completion of its merger with United Security Bancshares on April 1, 2026. This merger is expected to enhance the company’s footprint in Central California and diversify its commercial banking operations. The combined entity will report its financial results starting in the second quarter of 2026, with total assets projected to be approximately $5 billion post-merger.
The company’s non-performing assets increased to $23 million as of March 31, 2026, compared to $6.9 million at the end of 2025, primarily due to two loans that became non-accrual. The provision for credit losses for the quarter was $90,000, a decrease from $515,000 in the previous quarter, reflecting limited loan growth and improved loss rates in certain segments. The company continues to monitor its credit quality closely, particularly in light of its concentration in commercial real estate loans, which accounted for approximately 56.8% of total loans.
Looking ahead, Community West Bancshares remains optimistic about its growth prospects, bolstered by the recent merger and a stable economic environment. The company plans to leverage its expanded resources to enhance its service offerings and improve operational efficiencies. The board has also declared a cash dividend of $0.12 per share, payable on May 22, 2026, to shareholders of record as of May 8, 2026, reflecting its commitment to returning value to shareholders while pursuing growth initiatives.
About Community West Bancshares
Community West Bancshares is a California-based bank holding company operating through its subsidiary, Community West Bank. The bank provides commercial banking services including deposit accounts, commercial, real estate, agribusiness, and consumer loans, as well as private banking and cash management. Serving primarily Central and Northern California markets, it focuses on personalized service, local community engagement, and a diversified loan portfolio heavily secured by real estate.
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