Community West Bancshares Reports $8.3 Million Net Income in Q1 2025

Community West Bancshares reported significant financial growth in its latest quarterly filing, with net income for the first quarter of 2025 reaching $8.3 million, or $0.44 per diluted share, compared to $3.7 million, or $0.31 per diluted share, in the same period last year. This marks a substantial increase in profitability, driven by a 76% rise in total interest income, which amounted to $45.1 million, up from $25.6 million a year earlier. The company’s net interest income after provision for credit losses was $32.2 million, reflecting a notable increase from $18.5 million in the prior year.

The company’s total assets increased to $3.55 billion as of March 31, 2025, up from $3.52 billion at the end of 2024. This growth was primarily attributed to a $12.7 million increase in gross loans, which totaled $2.35 billion, and a $27.9 million rise in cash and cash equivalents. Total deposits also saw a modest increase of $17.9 million, reaching $2.93 billion. The company’s loan-to-deposit ratio remained stable at 80.14%, indicating effective management of its funding sources.

Strategically, Community West Bancshares completed its merger with Central Valley Community Bancorp on April 1, 2024, which has significantly enhanced its market presence in Central California. The merger has allowed the company to diversify its commercial banking operations and improve its loan-to-deposit ratio. The integration of operations has also led to an increase in full-time equivalent employees, which rose to 342 from 253 year-over-year, contributing to higher salaries and employee benefits, which increased by 50% to $12.96 million.

Operationally, the company reported a decrease in non-performing assets to $6.9 million, down from $6.5 million at the end of 2024. The allowance for credit losses on loans was $26.1 million, or 1.11% of total loans, reflecting a stable credit quality environment. The company’s capital ratios remained strong, with a Tier 1 leverage ratio of 9.36% and a total risk-based capital ratio of 13.82%, indicating a solid capital position to support future growth.

Looking ahead, Community West Bancshares anticipates continued growth driven by its expanded footprint and enhanced product offerings post-merger. The company declared a cash dividend of $0.12 per share, payable on May 16, 2025, signaling confidence in its financial stability and commitment to returning value to shareholders. The management remains focused on maintaining strong asset quality and managing interest rate risk as it navigates the evolving economic landscape.