Community West Bancshares has reported its earnings results for the third quarter of 2026, revealing a decline in net income compared to the previous year. The company, which is based in Fresno, California, is navigating the complexities following its recent merger with United Security Bancshares.
On October 22, 2026, the bank announced an unaudited net income of $8.07 million, or $0.30 per diluted share, for the quarter ending September 30, 2026. This marks a drop from the $10.87 million and $0.57 per diluted share reported for the same quarter in 2025. Despite the decline in year-over-year earnings, the bank declared a cash dividend of $0.12 per share, payable on November 20, 2026, to shareholders of record as of November 6, 2026.
Community West Bancshares operates in the state commercial banking sector, as classified under the SIC code 6022. The recent earnings report highlights the bank's ongoing adjustments following its merger with United Security Bancshares, completed on April 1, 2026. This merger has significantly impacted the bank's financial landscape, as it integrates operations and seeks to enhance its market position.
According to the filing, the bank's CEO, James J. Kim, emphasized the importance of client relationships in driving growth. He stated, "The strength of our Company begins with the relationships our team builds every day. During the third quarter, that work translated into strong core deposit growth and a stronger liquidity position." This sentiment reflects the bank's focus on maintaining customer loyalty while expanding its client base across Central California.
The earnings report also indicated a provision for credit losses of $578,000 for the quarter, a significant decrease from the $5.64 million recorded in the previous quarter. This reduction suggests improved asset quality and a more stable financial environment post-merger.
In terms of loan and deposit growth, Community West Bancshares reported gross loans increased by $19.1 million, or 0.54%, compared to the prior quarter. Year-to-date, loans have surged by $1 billion, reflecting a 40.22% increase. Total deposits rose by $101 million, or 2.45%, for the quarter, with a year-to-date increase of $1.1 billion, or 36.35%.
Despite the challenges faced, the bank's management remains optimistic about future growth. Shannon Livingston, Executive Vice President and Chief Financial Officer, noted, "While net income increased as compared with the prior quarter, we look forward to moving beyond merger-related expenses and entering a more normalized fourth quarter. We remain focused on disciplined balance sheet management and translating the earnings capacity of the Company into long-term performance." This statement reflects the bank's commitment to navigating the post-merger landscape effectively.
The filing does not specify what happens next for Community West Bancshares, but the bank's ongoing efforts to strengthen its financial position and customer relationships will be critical in the coming quarters. As the state commercial banking industry continues to evolve, other banks may face similar challenges in integrating operations and maintaining profitability.