Corrected: Community West Bancshares Q3 net income rises sequentially on merger costs decline

Community West Bancshares

22/10/2026 21:11

Corrects provision for loan losses figure to $588,000 from $578,000 in Key Details table

Overview
California bank's Q3 net income and EPS fell yr/yr due to merger and legal costs
Net income and EPS rose from prior quarter as merger costs declined
Company completed United Security Bancshares merger, driving loan and deposit growth

Outlook
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
CORE DEPOSIT GROWTH - Co said strong core deposit growth improved funding profile and liquidity position
ORGANIC LOAN GROWTH - Co said organic loan growth and expanded client base contributed to higher average loans
LOWER COST OF DEPOSITS - Co attributed decrease in deposit costs to USB deposit portfolio and organic deposit growth

Company press release: ID:nBw1lljRQa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.30
 
Q3 Net Income
 
$8.07 mln
 
Q3 Net Interest Income
 
$53.34 mln
 
Q3 Net Interest Margin
 
4.65%
 
Q3 Provision for Loan Losses
 
$588,000
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Community West Bancshares is $30.00, about 17.3% above its October 21 closing price of $25.58
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Oct 21 - First Community's Q3 net income rises 55% after Signature Bank of Georgia acquisition
Oct 20 - Bank First Q3 net income boosted by Centre acquisition
Oct 21 - FS Bancorp Q3 net income drops on acquisition costs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)