Community West Bancshares Reports $7.8 Million Net Income in Q2 2025

Community West Bancshares reported a net income of $7.8 million for the second quarter of 2025, translating to earnings of $0.41 per diluted share. This marks a significant recovery from a net loss of $6.3 million, or a loss of $0.33 per share, in the same quarter of the previous year. The company’s total revenue for the quarter reached $46 million, up from $44 million year-over-year, driven primarily by an increase in interest income from loans, which rose to $39.5 million compared to $36.2 million in the prior year. The net interest margin improved to 4.10%, up from 3.65% in the same quarter last year, reflecting a favorable shift in the interest rate environment.

In comparison to the previous fiscal period, Community West Bancshares experienced a 2.79% increase in gross loans, totaling $2.4 billion as of June 30, 2025, up from $2.3 billion at the end of 2024. The company also reported a total asset increase of 1.56%, reaching $3.58 billion, while total deposits grew by 2.89% to $3 billion. The increase in deposits was attributed to a rise in non-interest-bearing demand deposits, which accounted for 34.6% of total deposits, up from 33.7% at the end of 2024.

Strategically, the company has focused on enhancing its market presence following the merger with Central Valley Community Bancorp, which was completed in April 2024. This merger has allowed Community West to expand its footprint in Central California, diversifying its commercial banking services and improving operational efficiencies. The company has also launched a new Omnibus Incentive Plan, which aims to attract and retain talent through stock options and other equity awards.

Operationally, Community West Bancshares reported a total of 342 full-time equivalent employees as of June 30, 2025, reflecting an increase from 253 employees in the same period last year, primarily due to the merger. The company’s allowance for credit losses increased to $28.7 million, or 1.20% of total loans, compared to $25.8 million, or 1.11%, at the end of 2024. This increase is attributed to strong loan growth and a more cautious economic outlook. The company also noted a decrease in nonperforming assets, which totaled $6.8 million, indicating improved credit quality.

Looking ahead, Community West Bancshares remains optimistic about its growth trajectory, supported by a strong capital position with a Tier 1 Leverage Ratio of 9.48% and a Common Equity Tier 1 Ratio of 11.48%. The company declared a cash dividend of $0.12 per share, payable on August 15, 2025, reflecting its commitment to returning value to shareholders while maintaining a focus on sustainable growth and risk management in a changing economic landscape.