Community West Bancshares 10-Q for FY2023 Q3

Community West Bancshares (CWBC)

10-Q 2023-11-02 For: 2023-09-30

Added on April 09, 2026

About this 10-Q

Community West Bancshares filed this 10-Q on November 2, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $6.39M; up 0.1% from net income of $6.38M a year earlier
Diluted EPS: $0.54; down 1.8% from $0.55 a year earlier

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California						77-0539125
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


7100 N. Financial Dr., Suite 101, Fresno, California						93720
(Address of principal executive offices)						(Zip code)


PART 1	FINANCIAL INFORMATION	2

ITEM 1	FINANCIAL STATEMENTS (Unaudited)	3

ITEM 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	31

ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	47

ITEM 4	CONTROLS AND PROCEDURES	47

PART II	OTHER INFORMATION	48

ITEM 1	LEGAL PROCEEDINGS	48

ITEM 1A	RISK FACTORS	48

ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	51

ITEM 3	DEFAULTS UPON SENIOR SECURITIES	51

ITEM 4	MINE SAFETY DISCLOSURES	51

ITEM 5	OTHER INFORMATION	51

ITEM 6	EXHIBITS	52

SIGNATURES		53


(In thousands, except share amounts)	September 30, 2023		December 31, 2022

ASSETS
Cash and due from banks	$	27,558	$	25,485
Interest-earning deposits in other banks	47,017		5,685

Total cash and cash equivalents	74,575		31,170

Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0	593,430		648,825
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $281 at September 30, 2023 and $0 at December 31, 2022	303,451		305,107
Equity securities, at fair value	6,354		6,558
Loans, less allowance for credit losses of $15,534 at September 30, 2023 and $10,848 at December 31, 2022	1,259,877		1,245,456
Bank premises and equipment, net	9,703		7,987

Bank-owned life insurance	41,301		40,537
Federal Home Loan Bank stock	7,136		6,169
Goodwill	53,777		53,777

Accrued interest receivable and other assets	85,755		76,933
Total assets	$	2,435,359	$	2,422,519

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	990,508	$	1,056,567
Interest bearing	1,158,334		1,043,082
Total deposits	2,148,842		2,099,649

Short-term borrowings	—		46,000

Senior debt and subordinated debentures, less debt issuance costs of $447 at September 30, 2023 and $556 at December 31, 2022	69,708		69,599
Accrued interest payable and other liabilities	35,159		32,611
Total liabilities	2,253,709		2,247,859
Commitments and contingencies (Note 6)

Shareholders’ equity:

Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding	—		—
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,814,883 at September 30, 2023 and 11,735,291 at December 31, 2022	62,338		61,487

Retained earnings	206,073		194,400
Accumulated other comprehensive loss, net of tax	(86,761)		(81,227)
Total shareholders’ equity	181,650		174,660
Total liabilities and shareholders’ equity	$	2,435,359	$	2,422,519


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands, except share and per-share amounts)	2023		2022		2023		2022
INTEREST INCOME:
Interest and fees on loans	$	17,692	$	14,708	$	51,851	$	39,752
Interest on deposits in other banks	1,481		48		2,930		157

Interest and dividends on investment securities:
Taxable	5,900		4,411		17,612		14,586
Exempt from Federal income taxes	1,393		1,825		4,203		5,144
Total interest income	26,466		20,992		76,596		59,639
INTEREST EXPENSE:
Interest on deposits	5,015		231		10,890		714
Interest on short-term borrowings	—		411		661		1,168
Interest on senior debt and subordinated debentures	924		186		2,732		186
Total interest expense	5,939		828		14,283		2,068
Net interest income before provision for credit losses	20,527		20,164		62,313		57,571
PROVISION FOR CREDIT LOSSES	186		495		476		495
Net interest income after provision for credit losses	20,341		19,669		61,837		57,076
NON-INTEREST INCOME:
Service charges	376		475		1,132		1,558





Net realized losses on sales and calls of investment securities	(39)		(14)		(296)		(777)






Other income	1,246		1,019		3,916		3,303
Total non-interest income	1,583		1,480		4,752		4,084
NON-INTEREST EXPENSES:
Salaries and employee benefits	7,474		7,500		23,483		21,501
Occupancy and equipment	1,490		1,363		4,012		3,869













Other	4,472		3,940		12,951		10,961
Total non-interest expenses	13,436		12,803		40,446		36,331
Income before provision for income taxes	8,488		8,346		26,143		24,829
Provision for income taxes	2,098		1,962		6,501		5,817


Net income	$	6,390	$	6,384	$	19,642	$	19,012
Earnings per common share:
Basic earnings per share	$	0.54	$	0.55	$	1.67	$	1.62
Weighted average common shares used in basic computation	11,742,334		11,678,532		11,723,233		11,723,790
Diluted earnings per share	$	0.54	$	0.55	$	1.67	$	1.62
Weighted average common shares used in diluted computation	11,755,758		11,689,323		11,745,606		11,748,693
Cash dividend per common share	$	0.12	$	0.12	$	0.36	$	0.36


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Net income	$	6,390	$	6,384	$	19,642	19,012
Other comprehensive loss:
Unrealized losses on securities:
Unrealized holding losses arising during the period	(16,107)		(24,378)		(9,955)		(141,308)
Reclassification of net losses included in net income	39		14		296		777


Amortization of net unrealized losses transferred	602		651		1,802		1,045
Other comprehensive loss, before tax	(15,466)		(23,713)		(7,857)		(139,486)
Tax effect	4,573		7,010		2,323		41,232
Total other comprehensive loss	(10,893)		(16,703)		(5,534)		(98,254)
Comprehensive (loss) income	$	(4,503)	$	(10,319)	$	14,108	$	(79,242)



	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss (Net of Taxes)	Total Shareholders’ Equity
(In thousands, except share amounts)						Shares		Amount
Balance, June 30, 2022			11,717,146	$	60,975	$	183,197	$	(73,919)	170,253
Net income			—	—		6,384		—		6,384
Other comprehensive loss			—	—		—		(16,703)		(16,703)

Stock issued under employee stock purchase plan			3,515	53		—		—		53



Stock-based compensation expense			—	143		—		—		143
Cash dividend			—	—		(1,407)		—		(1,407)

Stock options exercised			11,350	91				—		91
Balance, September 30, 2022			11,732,011	$	61,262	$	188,174	$	(90,622)	$	158,814

Balance, June 30, 2023			11,812,425	$	62,128	$	201,100	$	(75,868)	$	187,360
Net income			—	—		6,390		—		6,390
Other comprehensive loss			—	—		—		(10,893)		(10,893)


Stock issued under employee stock purchase plan			3,025	40		—		—		40
Restricted stock forfeitures			(567)	—		—		—		—

Stock-based compensation expense			—	170		—		—		170
Cash dividend			—	—		(1,417)		—		(1,417)


Balance, September 30, 2023			11,814,883	$	62,338	$	206,073	$	(86,761)	$	181,650



	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss) (Net of Taxes)	Total Shareholders’ Equity
(In thousands, except share amounts)						Shares		Amount
Balance, December 31, 2021			11,916,651	$	66,820	$	173,393	$	7,632	247,845
Net income			—	—		19,012		—		19,012
Other comprehensive loss			—	—		—		(98,254)		(98,254)

Stock issued under employee stock purchase plan			10,071	164		—		—		164
Stock awarded to employees			13,446	—		—		—		—
Restricted stock granted net of forfeitures			42,399	—		—		—		—

Stock-based compensation expense			—	603		—		—		603
Cash dividend			—	—		(4,231)		—		(4,231)
Repurchase and retirement of common stock			(300,761)	(6,814)		—		—		(6,814)
Stock options exercised			50,205	489		—		—		489
Balance, September 30, 2022			11,732,011	$	61,262	$	188,174	$	(90,622)	$	158,814

Balance, December 31, 2022			11,735,291	$	61,487	$	194,400	$	(81,227)	$	174,660
Implementation of ASU 2016-13, Current Expected Credit Loss (CECL) Day 1 Adjustment			—	—		(3,731)		—		(3,731)
Adjusted Balance, January 1, 2023			11,735,291	$	61,487	$	190,669	$	(81,227)	$	170,929
Net income			—	—		19,642		—		19,642
Other comprehensive loss			—	—		—		(5,534)		(5,534)

Stock issued under employee stock purchase plan			10,817	163		—		—		163
Stock awarded to employees			10,347	—		—		—		—
Restricted stock granted net of forfeitures			58,467	—		—		—		—


Stock-based compensation expense			—	689		—		—		689
Cash dividend			—	—		(4,238)		—		(4,238)

Repurchase and retirement of common stock			(39)	(1)		—		—		(1)
Balance, September 30, 2023			11,814,883	$	62,338	$	206,073	$	(86,761)	$	181,650


	September 30, 2023
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt securities:
U.S. Treasury securities	$	9,989	$	—	$	(1,373)	$	—	$	8,616
U.S. Government agencies	103		—		(11)		—		92
Obligations of states and political subdivisions	198,823		—		(32,698)		—		166,125
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	93,303		1		(7,358)		—		85,946
Private label mortgage and asset backed securities	392,514		7		(59,870)		—		332,651

Total available-for-sale	$	694,732	$	8	$	(101,310)	$	—	$	593,430

	September 30, 2023
Held-to-Maturity Securities	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions	$	192,056	$	75	$	(27,959)	$	164,172	$	15
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	10,675		—		(2,379)		8,296		—
Private label mortgage and asset backed securities	54,943		—		(8,103)		46,840		12
Corporate debt securities	46,058		—		(5,343)		40,715		254
Total held-to-maturity	$	303,732	$	75	$	(43,784)	$	260,023	$	281


	September 30, 2023
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Treasury securities	$	—	$	—	$	8,616	$	(1,373)	$	8,616	$	(1,373)
U.S. Government agencies	—		—		92		(11)		92		(11)
Obligations of states and political subdivisions	—		—		166,125		(32,698)		166,125		(32,698)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	546		(21)		85,400		(7,337)		85,946		(7,358)
Private label mortgage and asset backed securities	44		(2)		332,607		(59,868)		332,651		(59,870)

Total available-for-sale	$	590	$	(23)	$	592,840	$	(101,287)	$	593,430	$	(101,310)


	September 30, 2023
Debt Securities Held-to-Maturity	AAA/AA/A		BBB		Unrated
Obligations of states and political subdivisions	$	192,056	$	—	$	—

Private label mortgage and asset backed securities	46,411		—		8,532
Corporate debt securities	—		30,163		15,895
Total debt securities held-to-maturity	$	238,467	$	30,163	$	24,427


Loan Type (Dollars in thousands)	September 30, 2023		December 31, 2022
Commercial:
Commercial and industrial	$	106,061	$	141,197
Agricultural production	25,190		37,007
Total commercial	131,251		178,204
Real estate:
Construction & other land loans	81,264		109,175
Commercial real estate - owner occupied	197,228		194,663
Commercial real estate - non-owner occupied	525,835		464,809
Farmland	123,467		119,648
Multi-family residential	44,794		24,586
1-4 family - close-ended	95,573		93,510
1-4 family - revolving	28,251		30,071
Total real estate	1,096,412		1,036,462
Consumer	46,204		40,252
Total gross loans	1,273,867		1,254,918
Net deferred origination fees	1,544		1,386
Loans, net of deferred origination fees	1,275,411		1,256,304
Allowance for credit losses	(15,534)		(10,848)
Total loans, net	$	1,259,877	$	1,245,456


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, July 1, 2023	$	1,477	$	10,684	$	2,489	$	813	$	15,463


Provision (credit) for credit losses (1)	161		195		(71)		(20)		265
Charge-offs	(236)		—		—		(18)		(254)
Recoveries	38		—		2		20		60
Ending balance, September 30, 2023	$	1,440	$	10,879	$	2,420	$	795	$	15,534


	Commercial			Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance, July 1, 2022	$	1,973		$	6,994	$	769	$	137	$	9,873
Provision (credit) for credit losses (1)	118			418		(29)		(7)		500
Charge-offs	—		—	—		(20)		—		(20)
Recoveries	—			—		13		—		13
Ending balance, September 30, 2022	$	2,091		$	7,412	$	733	$	130	$	10,366


	Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Converted to Term		Total
Commercial and industrial
Pass/Watch	$	16,221	$	22,452	$	21,652	$	4,966	$	1,852	$	8,127	$	25,568	$	215	$	101,053
Special mention	—		294		151		188		703		276		3,500		—		5,112
Substandard	—		—		—		192		—		87		—		—		279
Total	$	16,221	$	22,746	$	21,803	$	5,346	$	2,555	$	8,490	$	29,068	$	215	$	106,444
Current period gross write-offs	$	241	$	—	$	323	$	—	$	—	$	—	$	—	$	—	$	564

Agricultural production
Pass/Watch	$	144	$	242	$	15	$	—	$	251	$	162	$	15,105	$	999	$	16,918
Special mention	—		—		—		—		—		—		6,940		—		6,940
Substandard	—		1,366		—		—		—		—		—		—		1,366
Total	$	144	$	1,608	$	15	$	—	$	251	$	162	$	22,045	$	999	$	25,224
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & other land loans
Pass/Watch	$	1,734	$	18,366	$	21,988	$	10,801	$	1,677	$	2,795	$	5,263	$	—	$	62,624
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		2,452		—		—		15,928		—		—		—		18,380
Total	$	1,734	$	20,818	$	21,988	$	10,801	$	17,605	$	2,795	$	5,263	$	—	$	81,004
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - owner occupied
Pass/Watch	$	13,216	$	23,104	$	20,962	$	28,148	$	22,170	$	82,973	$	2,887	$	—	$	193,460
Special mention	—		—		—		—		—		1,420		247		—		1,667
Substandard	—		—		—		—		—		2,126		—		—		2,126



Total loans outstanding (risk rating):
Pass/Watch	$	134,134	$	279,140	$	189,168	$	121,764	$	69,279	$	332,581	$	98,363	$	9,276	$	1,233,705
Special mention	—		894		151		2,401		703		2,130		10,687		—		16,966
Substandard	—		3,818		31		192		15,928		4,771		—		—		24,740
Grand Total	$	134,134	$	283,852	$	189,350	$	124,357	$	85,910	$	339,482	$	109,050	$	9,276	$	1,275,411
Current period total gross write-offs	$	261	$	—	$	323	$	—	$	27	$	—	$	—	$	—	$	611


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in thousands)	2023		2022		2023		2022
Regulatory assessments	$	358	$	224	$	924	$	640
Data processing expense	680		560		1,949		1,649
ATM/Debit card expenses	192		176		569		588
Internet banking	40		29		121		98
Advertising	133		138		382		416
Professional Services	842		613		2,076		1,451
Information technology	915		879		2,697		2,465
Directors’ expenses	150		91		464		184
Loan related expenses	106		156		393		349
Personnel other	51		57		373		219
Amortization of core deposit intangibles	—		139		68		419
Other	1,005		878		2,935		2,483
Total other non-interest expense	$	4,472	$	3,940	$	12,951	$	10,961


	Shares	Weighted Average Grant-Date Fair Value
Nonvested outstanding shares at December 31, 2022	46,706	$	17.28
Granted	69,692	$	15.86
Vested	(40,387)	$	17.90
Forfeited	(878)	$	15.19
Nonvested outstanding shares at September 30, 2023	75,133	$	15.83


	Pass		Special Mention		Substandard		Doubtful		Total
Commercial:
Commercial and industrial	$	131,300	$	8,707	$	1,655	$	—	$	141,662
Agricultural production	24,926		6,713		5,399		—		37,038
Real Estate:
Construction & other land loans	93,817		—		15,024		—		108,841
Commercial real estate - owner occupied	189,344		3,283		2,169		—		194,796
Commercial real estate - non-owner occupied	458,746		3,440		2,412		—		464,598
Farmland	109,898		8,879		824		—		119,601
Multi-family residential	24,636		—		—		—		24,636
1-4 family - close-ended	93,644		—		—		—		93,644
1-4 family - revolving	30,031		—		266		—		30,297
Consumer:	41,155		2		34		—		41,191
Total	$	1,197,497	$	31,024	$	27,783	$	—	$	1,256,304


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Loans Past Due > 89 Days, Still Accruing		Non-accrual
Commercial:
Commercial and industrial	$	37	$	—	$	—	$	37	$	106,024	$	106,061	$	—	$	—
Agricultural production	—		—		—		—		25,190		25,190		—		—
Real estate:	—
Construction & other land loans	—		—		—		—		81,264		81,264		—		—
Commercial real estate - owner occupied	—		—		—		—		197,228		197,228		—		—
Commercial real estate - non-owner occupied	—		—		—		—		525,835		525,835		—		—
Farmland	—		—		—		—		123,467		123,467		—		—
Multi-family residential	—		—		—		—		44,794		44,794		—		—
1-4 family - close-ended	—		—		—		—		95,573		95,573		—		—
1-4 family - revolving	—		—		—		—		28,251		28,251		—		—

Consumer	199		—		—		199		46,005		46,204		—		—
Deferred fees	—		—		—		—		$	1,544	1,544		—		—
Total	$	236	$	—	$	—	$	236	$	1,275,175	$	1,275,411	$	—	$	—


Credit Lines (In thousands)	September 30, 2023		December 31, 2022
Unsecured Credit Lines
Credit limit	$	110,000	$	110,000
Balance outstanding	$	—	$	—
Federal Home Loan Bank
Credit limit	$	340,197	$	319,309
Balance outstanding	$	—	$	46,000
Collateral pledged	$	596,523	$	687,357
Fair value of collateral	$	497,968	$	565,869
Federal Reserve Bank Term Loan Funding Program
Credit limit	$	37,245	$	—
Balance outstanding	$	—	$	—
Collateral pledged	$	54,380	$	—
Fair value of collateral	$	46,281	$	—
Federal Reserve Bank
Credit limit	$	4,242	$	4,702
Balance outstanding	$	—	$	—
Collateral pledged	$	5,073	$	5,508
Fair value of collateral	$	4,306	$	4,893


	September 30, 2023
	Carrying Amount		Fair Value
(In thousands)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	27,558	$	27,558	$	—	$	—	$	27,558
Interest-earning deposits in other banks	47,017		47,017		—		—		47,017

Held-to-maturity investment securities	303,451		—		260,023		—		260,023
Loans, net	1,259,877		—		—		1,172,613		1,172,613
Financial liabilities:
Time deposits	163,246		—		161,758		—		161,758

Senior debt and subordinated debentures	69,708		—		—		58,848		58,848


	Fair Value Measurements Using
September 30, 2023	Fair Value		Level 1		Level 2		Level 3
Available-for-sale debt securities:
U.S. Treasury securities	$	8,616	$	—	$	8,616	$	—
U.S. Government agencies	92		—		92		—
Obligations of states and political subdivisions	166,125		—		166,125		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	85,946		—		85,946		—
Private label mortgage and asset backed securities	332,651		—		332,651		—

Equity securities	6,354		6,354		—		—
Total assets measured at fair value on a recurring basis	$	599,784	$	6,354	$	593,430	$	—


	For the Three Months Ended						For the Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
(In thousands, except share and per-share amounts)	2023		2023		2022		2023		2022
Net interest income before (credit) provision for credit losses	$	20,527	$	20,205	$	20,164	$	62,313	$	57,571
Provision (credit) for credit losses	186		(343)		495		476		495
Net interest income after (credit) provision for credit losses	20,341		20,548		19,669		61,837		57,076
Total non-interest income	1,583		1,594		1,480		4,752		4,084
Total non-interest expenses	13,436		13,805		12,803		40,446		36,331
Income before provision for income taxes	8,488		8,337		8,346		26,143		24,829
Provision for income taxes	2,098		2,055		1,962		6,501		5,817
Net income	$	6,390	$	6,282	$	6,384	$	19,642	$	19,012


	For the Three Months Ended September 30, 2023						For the Three Months Ended September 30, 2022
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Interest Rate		Average Balance		Interest Income/ Expense		Average Interest Rate
ASSETS
Interest-earning deposits in other banks	$	109,199	$	1,481	5.42	%	$	6,192	$	48	3.10	%
Securities
Taxable securities	755,630		5,900		3.12	%	819,649		4,411		2.15	%
Non-taxable securities (1)	255,788		1,764		2.76	%	276,125		2,311		3.35	%
Total investment securities	1,011,418		7,664		3.03	%	1,095,774		6,722		2.45	%

Total securities and interest-earning deposits	1,120,617		9,145		3.26	%	1,101,966		6,770		2.46	%
Loans (2) (3)	1,266,296		17,692		5.54	%	1,189,762		14,708		4.90	%

Total interest-earning assets	2,386,913		$	26,837	4.46	%	2,291,728		$	21,478	3.72	%
Allowance for credit losses	(15,300)						(9,877)
Non-accrual loans	—						260

Cash and due from banks	28,680						32,144
Bank premises and equipment	11,461						7,984
Other assets	91,231						92,175
Total average assets	$	2,502,985					$	2,414,414
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Savings and NOW accounts	$	454,151	$	169	0.15	%	$	584,070	$	60	0.04	%
Money market accounts	576,866		2,846		1.96	%	443,301		142		0.13	%
Time certificates of deposit	195,155		2,000		4.07	%	78,563		29		0.15	%

Total interest-bearing deposits	1,226,172		5,015		1.62	%	1,105,934		231		0.08	%
Other borrowed funds	69,691		924		5.30	%	60,794		597		3.93	%
Total interest-bearing liabilities	1,295,863		$	5,939	1.82	%	1,166,728		$	828	0.28	%
Non-interest bearing demand deposits	984,912						1,041,698
Other liabilities	34,231						28,905
Shareholders’ equity	187,979						177,083
Total average liabilities and shareholders’ equity	$	2,502,985					$	2,414,414
Interest income and rate earned on average earning assets			$	26,837	4.46	%			$	21,478	3.72	%
Interest expense and interest cost related to average interest-bearing liabilities			5,939		1.82	%			828		0.28	%
Net interest income and net interest margin (4)			$	20,898	3.47	%			$	20,650	3.57	%


	For the Nine Months Ended September 30, 2023						For the Nine Months Ended September 30, 2022
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Interest Rate		Average Balance		Interest Income/ Expense		Average Interest Rate
ASSETS
Interest-earning deposits in other banks	$	74,780	$	2,930	5.22	%	$	55,925	$	157	0.37	%
Securities:
Taxable securities	768,187		17,612		3.06	%	881,860		14,586		2.21	%
Non-taxable securities (1)	256,615		5,321		2.76	%	269,054		6,512		3.23	%
Total investment securities	1,024,802		22,933		2.98	%	1,150,914		21,098		2.44	%

Total securities and interest-earning deposits	1,099,582		25,863		3.14	%	1,206,839		21,255		2.35	%
Loans (2) (3)	1,261,509		51,851		5.50	%	1,098,274		39,752		4.84	%
Total interest-earning assets	2,361,091		$	77,714	4.40	%	2,305,113		$	61,007	3.54	%
Allowance for credit losses	(13,852)						(9,860)
Nonaccrual loans	—						317

Cash and due from banks	27,577						39,152
Bank premises and equipment	9,654						8,139
Other assets	90,507						95,772
Total average assets	$	2,474,977					$	2,438,633
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Savings and NOW accounts	$	485,329	$	422	0.12	%	$	587,859	$	130	0.03	%
Money market accounts	531,226		6,105		1.54	%	501,700		488		0.13	%
Time certificates of deposit	163,611		4,363		3.57	%	84,994		96		0.15	%

Total interest-bearing deposits	1,180,166		10,890		1.23	%	1,174,553		714		0.08	%
Other borrowed funds	87,741		3,393		5.16	%	59,646		1,354		3.03	%
Total interest-bearing liabilities	1,267,907		$	14,283	1.51	%	1,234,199		$	2,068	0.22	%
Non-interest bearing demand deposits	988,620						977,164
Other liabilities	33,448						31,975
Shareholders’ equity	185,002						195,295
Total average liabilities and shareholders’ equity	$	2,474,977					$	2,438,633
Interest income and rate earned on average earning assets			$	77,714	4.40	%			$	61,007	3.54	%
Interest expense and interest cost related to average interest-bearing liabilities			14,283		1.51	%			2,068		0.22	%
Net interest income and net interest margin (4)			$	63,431	3.59	%			$	58,939	3.42	%


Changes in Volume/Rate	For the Three Months Ended September 30, 2023 and 2022						For the Nine Months Ended September 30, 2023 and 2022
(In thousands)	Volume		Rate		Net		Volume		Rate		Net
Increase (decrease) due to changes in:
Interest income:
Interest-earning deposits in other banks	$	798	$	634	$	1,432	$	52	$	2,721	$	2,773
Investment securities:
Taxable	(344)		1,834		1,490		(1,880)		4,906		3,026
Non-taxable (1)	(170)		(377)		(547)		(301)		(890)		(1,191)
Total investment securities	(514)		1,457		943		(2,181)		4,016		1,835

Loans	947		2,037		2,984		5,908		6,191		12,099

Total earning assets (1)	1,231		4,128		5,359		3,779		12,928		16,707
Interest expense:
Deposits:
Savings, NOW and MMA	29		2,783		2,812		6		5,903		5,909
Time certificate of deposits	43		1,928		1,971		88		4,179		4,267

Total interest-bearing deposits	72		4,711		4,783		94		10,082		10,176
Other borrowed funds	87		241		328		635		1,404		2,039
Total interest-bearing liabilities	159		4,952		5,111		729		11,486		12,215
Net interest income (1)	$	1,072	$	(824)	$	248	$	3,050	$	1,442	$	4,492


	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
(Dollars in thousands)	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Appreciation in cash surrender value of bank owned life insurance	$	260	$	249	$	11	4.4	%	$	763	$	736	$	27	3.7	%
Loan placement fees	119		155		(36)		(23.2)	%	415		722		(307)		(42.5)	%
Interchange fees	450		432		18		4.2	%	1,353		1,352		1		0.1	%
Federal Home Loan Bank dividends	134		91		43		47.3	%	349		258		91		35.3	%
Other	283		92		191		207.6	%	1,036		235		801		340.9	%
Total other non-interest income	$	1,246	$	1,019	$	227	22.3	%	$	3,916	$	3,303	$	613	18.6	%


Loan Type (Dollars in thousands)	September 30, 2023		% of Total Loans		December 31, 2022		% of Total Loans
Commercial:
Commercial and industrial	$	106,061	8.3	%	$	141,197	11.2	%
Agricultural production	25,190		2.0	%	37,007		2.9	%
Total commercial	131,251		10.3	%	178,204		14.1	%
Real estate:
Construction & other land loans	81,264		6.4	%	109,175		8.7	%
Commercial real estate - owner occupied	197,228		15.5	%	194,663		15.5	%
Commercial real estate - non-owner occupied	525,835		41.3	%	464,809		37.2	%
Farmland	123,467		9.7	%	119,648		9.5	%
Multi-family residential	44,794		3.5	%	24,586		2.0	%
1-4 family - close-ended	95,573		7.5	%	93,510		7.4	%
1-4 family - revolving	28,251		2.2	%	30,071		2.4	%
Total real estate	1,096,412		86.1	%	1,036,462		82.7	%
Consumer:	46,204		3.6	%	40,252		3.2	%
Total gross loans	1,273,867		100.0	%	1,254,918		100.0	%
Net deferred origination fees	1,544				1,386
Loan, net of deferred origination fees	1,275,411				1,256,304
Allowance for credit losses	(15,534)				(10,848)
Total loans	$	1,259,877			$	1,245,456


Loan Type	September 30, 2023		December 31, 2022
Commercial:
Commercial and industrial	$	915	$	1,583
Agricultural production	525		229
Total commercial	1,440		1,812
Real estate:
Construction & other land loans	2,411		1,678
Commercial real estate - owner occupied	1,799		814
Commercial real estate - non-owner occupied	5,548		4,388
Farmland	1,299		863
Multi-family residential	384		60
1-4 family - revolving	1,338		465
1-4 family - revolving	520		142
Total real estate	13,299		8,410

Consumer:	795		286
Total consumer	795		286
Unallocated reserves	—		340
Total allowance for credit losses	$	15,534	$	10,848


	September 30, 2023			December 31, 2022			September 30, 2022
(Dollars in thousands)	Balance	% to Total Loans		Balance	% to Total Loans		Balance	% to Total Loans

Past due loans greater than 30 days	236	0.02	%	5,895	0.47	%	207	0.02	%
Nonaccrual loans	—	—	%	—	—	%	271	0.02	%


(Dollars in thousands)	September 30, 2023		% of Total Deposits		Average Interest Rate		December 31, 2022		% of Total Deposits		Average Interest Rate
NOW accounts	$	257,267	12.0	%	0.13	%	$	324,089	15.4	%	0.06	%
MMA accounts	548,767		25.5	%	1.54	%	435,783		20.8	%	0.17	%
Time deposits	163,245		7.6	%	3.57	%	67,923		3.2	%	0.14	%
Savings deposits	189,055		8.8	%	0.01	%	215,287		10.3	%	0.01	%
Total interest-bearing	1,158,334		53.9	%	1.23	%	1,043,082		49.7	%	0.10	%
Non-interest bearing	990,508		46.1	%			1,056,567		50.3	%
Total deposits	$	2,148,842	100.0	%			$	2,099,649	100.0	%


(Dollars in thousands)	Actual Ratio				Minimum regulatory requirement (1)				Minimum requirement for “Well-Capitalized” Institution
September 30, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Leverage Ratio	$	280,627	11.21	%	$	100,095	4.00	%	$	125,119	5.00	%
Common Equity Tier 1 Ratio (CET 1)	$	280,627	16.50	%	$	76,540	7.00	%	$	110,558	6.50	%
Tier 1 Risk-Based Capital Ratio	$	280,627	16.50	%	$	102,054	8.50	%	$	136,072	8.00	%
Total Risk-Based Capital Ratio	$	297,167	17.47	%	$	136,072	10.50	%	$	170,090	10.00	%

December 31, 2022	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Leverage Ratio	$	266,373	10.86	%	$	98,075	4.00	%	$	122,594	5.00	%
Common Equity Tier 1 Ratio (CET 1)	$	266,373	15.87	%	$	75,516	7.00	%	$	109,079	6.50	%
Tier 1 Risk-Based Capital Ratio	$	266,373	15.87	%	$	100,688	8.50	%	$	134,251	8.00	%
Total Risk-Based Capital Ratio	$	277,331	16.53	%	$	134,251	10.50	%	$	167,814	10.00	%
(1) The minimum regulatory requirement threshold includes the capital conservation buffer of 2.50%.



3.1						Amended and Restated Articles of Incorporation of Central Valley Community Bancorp (incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q filed with the Commission on August 16, 2010).

3.2						Bylaws of the Company as amended (incorporated by reference to the Registrant’s Form 10-K filed with the Commission on March 9, 2023).

31.1						Certification of Principal Executive Officer Pursuant to Rule 13a-14(d) / 15d-14(a) of the Securities Exchange Act of 1934.

31.2						Certification of Principal Financial Officer Pursuant to Rule 13a-14(d) / 15d-14(a) of the Securities Exchange Act of 1934.

32.1						Certification of Principal Executive Officer Pursuant to Rule 13a-14(b) / 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

32.2						Certification of Principal Financial Officer Pursuant to Rule 13a-14(b) / 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

101.INS						XBRL Instance Document

101.SCH						XBRL Taxonomy Extension Schema Document

101.CAL						XBRL Taxonomy Extension Calculation document

101.DEF						XBRL Taxonomy Extension Definition Linkbase

101.LAB						XBRL Taxonomy Extension labels Linkbase Document

101.PRE						XBRL Taxonomy Extension Presentation Link Document


Central Valley Community Bancorp

Date: November 2, 2023			/s/ James J. Kim
			James J. Kim
			President and Chief Executive Officer

Date: November 2, 2023			/s/ Shannon Livingston
			Shannon Livingston
			Executive Vice President and Chief Financial Officer


			/s/ Shannon Avrett
			SHANNON AVRETT
			Executive Vice President and Chief Financial Officer