CWBC · Community West Bancshares

Community West Bancshares delivered a strong first quarter, with net income surging 38.5% year-over-year to $11.5 million, or $0.60 per diluted share. The improvement was broad-based, driven by higher net interest income, lower non-interest expenses, and a modest increase in non-interest income.

Net Interest Margin Expansion

The decrease in cost of deposits was due to reduction of rates paid for money market and time deposit accounts over the two time periods. Volume variances are equal to the increase or decrease in the average balance times the prior period rate, and rate variances are equal to the increase or decrease in the average rate times the prior period average balance. Variances attributable to both rate and volume changes are equal to the change in rate times the change in average balance and are included in the average volume column.

Non-Interest Income and Expense Trends

Credit Quality and Provision

The Current Expected Credit Loss (CECL) approach requires an estimate of the credit losses expected over the life of a financial asset carried at amortized cost. Historical loss experience is generally the starting point for estimating expected credit losses.

Cash Flow and Capital

Outlook

The company continues to focus on managing net interest margin, controlling expenses, and maintaining strong capital and liquidity positions.