Community West Bancshares 10-Q for FY2023 Q2

Community West Bancshares (CWBC)

10-Q 2023-08-03 For: 2023-06-30

Added on April 09, 2026

About this 10-Q

Community West Bancshares filed this 10-Q on August 3, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

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

Net income: $6.28M; down 4.0% from net income of $6.54M a year earlier
Diluted EPS: $0.54; down 3.6% from $0.56 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


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	29

ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	45

ITEM 4	CONTROLS AND PROCEDURES	45

PART II	OTHER INFORMATION	46

ITEM 1	LEGAL PROCEEDINGS	46

ITEM 1A	RISK FACTORS	46

ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	47

ITEM 3	DEFAULTS UPON SENIOR SECURITIES	47

ITEM 4	MINE SAFETY DISCLOSURES	47

ITEM 5	OTHER INFORMATION	47

ITEM 6	EXHIBITS	48

SIGNATURES		49


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

ASSETS
Cash and due from banks	$	28,325	$	25,485
Interest-earning deposits in other banks	100,333		5,685

Total cash and cash equivalents	128,658		31,170

Available-for-sale debt securities, at fair value	619,759		648,825
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $456 at June 30, 2023 and $- at December 31, 2022	303,876		305,107
Equity securities, at fair value	6,558		6,558
Loans, less allowance for credit losses of $15,463 at June 30, 2023 and $10,848 at December 31, 2022	1,240,195		1,245,456
Bank premises and equipment, net	10,939		7,987

Bank-owned life insurance	41,041		40,537
Federal Home Loan Bank stock	7,136		6,169
Goodwill	53,777		53,777

Accrued interest receivable and other assets	77,868		76,933
Total assets	$	2,489,807	$	2,422,519

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	957,088	$	1,056,567
Interest bearing	1,243,206		1,043,082
Total deposits	2,200,294		2,099,649

Short-term borrowings	—		46,000

Senior debt and subordinated debentures, less debt issuance costs of $484 at June 30, 2023 and $556 at December 31, 2022	69,671		69,599
Accrued interest payable and other liabilities	32,482		32,611
Total liabilities	2,302,447		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: 11,812,425 at June 30, 2023 and 11,735,291 at December 31, 2022	62,128		61,487

Retained earnings	201,100		194,400
Accumulated other comprehensive loss, net of tax	(75,868)		(81,227)
Total shareholders’ equity	187,360		174,660
Total liabilities and shareholders’ equity	$	2,489,807	$	2,422,519


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In thousands, except share and per-share amounts)	2023		2022		2023		2022
INTEREST INCOME:
Interest and fees on loans	$	17,382	$	12,883	$	34,159	$	25,044
Interest on deposits in other banks	1,374		52		1,449		109

Interest and dividends on investment securities:
Taxable	5,826		5,651		11,712		10,175
Exempt from Federal income taxes	1,405		1,879		2,810		3,319
Total interest income	25,987		20,465		50,130		38,647
INTEREST EXPENSE:
Interest on deposits	4,871		231		5,876		483
Interest on short-term borrowings	—		91		661		91
Interest on senior debt and subordinated debentures	911		333		1,807		666
Total interest expense	5,782		655		8,344		1,240
Net interest income before (credit) provision for credit losses	20,205		19,810		41,786		37,407
(CREDIT) PROVISION FOR CREDIT LOSSES	(343)		—		290		—
Net interest income after (credit) provision for credit losses	20,548		19,810		41,496		37,407
NON-INTEREST INCOME:
Service charges	367		544		755		1,083





Net realized losses on sales and calls of investment securities	(39)		(969)		(257)		(763)






Other income	1,266		1,195		2,671		2,284
Total non-interest income	1,594		770		3,169		2,604
NON-INTEREST EXPENSES:
Salaries and employee benefits	7,976		7,057		16,010		14,001
Occupancy and equipment	1,264		1,344		2,521		2,506













Other	4,565		3,682		8,479		7,021
Total non-interest expenses	13,805		12,083		27,010		23,528
Income before provision for income taxes	8,337		8,497		17,655		16,483
Provision for income taxes	2,055		1,955		4,403		3,855


Net income	$	6,282	$	6,542	$	13,252	$	12,628
Earnings per common share:
Basic earnings per share	$	0.54	$	0.56	$	1.13	$	1.08
Weighted average common shares used in basic computation	11,723,127		11,665,074		11,713,524		11,746,795
Diluted earnings per share	$	0.54	$	0.56	$	1.13	$	1.07
Weighted average common shares used in diluted computation	11,740,390		11,685,850		11,738,037		11,778,127
Cash dividend per common share	$	0.12	$	0.12	$	0.24	$	0.24


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In thousands)	2023		2022		2023		2022
Net income	$	6,282	$	6,542	$	13,252	12,628
Other comprehensive income (loss):
Unrealized gains (losses) on securities:
Unrealized holding (losses) gains arising during the period	(282)		(36,332)		6,152		(116,931)
Reclassification of net losses included in net income	39		969		257		763


Amortization of net unrealized losses transferred	573		394		1,200		394
Other comprehensive income (loss), before tax	330		(34,969)		7,609		(115,774)
Tax effect	(97)		10,337		(2,250)		34,223
Total other comprehensive income (loss)	233		(24,632)		5,359		(81,551)
Comprehensive income (loss)	$	6,515	$	(18,090)	$	18,611	$	(68,923)



	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss) (Net of Taxes)	Total Shareholders’ Equity
(In thousands, except share amounts)						Shares		Amount
Balance, March 31, 2022			11,752,623	$	62,893	$	178,054	$	(49,287)	191,660
Net income			—	—		6,542		—		6,542
Other comprehensive loss			—	—		—		(24,632)		(24,632)

Stock issued under employee stock purchase plan			3,550	54		—		—		54
Stock awarded to employees			300	—		—		—		—
Restricted stock granted net of forfeitures			37,781	—		—		—		—

Stock-based compensation expense			—	90		—		—		90
Cash dividend			—	—		(1,399)		—		(1,399)
Repurchase and retirement of common stock			(104,888)	(2,328)		—		—		(2,328)
Stock options exercised			27,780	266				—		266
Balance, June 30, 2022			11,717,146	$	60,975	$	183,197	$	(73,919)	$	170,253

Balance, March 31, 2023			11,754,938	$	61,924	$	196,229	$	(76,101)	$	182,052
Net income			—	—		6,282		—		6,282
Other comprehensive income			—	—		—		233		233


Stock issued under employee stock purchase plan			3,649	47		—		—		47
Restricted stock granted net of forfeitures			53,877	—		—		—		—

Stock-based compensation expense			—	158		—		—		158
Cash dividend			—	—		(1,411)		—		(1,411)

Repurchase and retirement of common stock			(39)	(1)		—		—		(1)
Balance, June 30, 2023			11,812,425	$	62,128	$	201,100	$	(75,868)	$	187,360


	June 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	$	—	$	(1,209)	$	—	$	8,780
U.S. Government agencies	105		—		(9)		—		96
Obligations of states and political subdivisions	199,818		—		(22,392)		—		177,426
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	96,072		2		(6,857)		—		89,217
Private label mortgage and asset backed securities	399,009		10		(54,779)		—		344,240

Total available-for-sale	$	704,993	$	12	$	(85,246)	$	—	$	619,759

	June 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	$	192,034	$	76	$	(17,108)	$	175,002	$	17
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	10,592		—		(1,728)		8,864		—
Private label mortgage and asset backed securities	55,673		—		(6,484)		49,189		1
Corporate debt securities	46,033		—		(5,240)		40,793		438
Total held-to-maturity	$	304,332	$	76	$	(30,560)	$	273,848	$	456


	June 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	$	—	$	—	$	8,780	$	(1,209)	$	8,780	$	(1,209)
U.S. Government agencies	—		—		96		(9)		96		(9)
Obligations of states and political subdivisions	—		—		177,426		(22,392)		177,426		(22,392)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	860		(21)		88,218		(6,836)		89,078		(6,857)
Private label mortgage and asset backed securities	3,353		(553)		340,834		(54,226)		344,187		(54,779)

Total available-for-sale	$	4,213	$	(574)	$	615,354	$	(84,672)	$	619,567	$	(85,246)


	June 30, 2023
Debt Securities Held-to-Maturity	AAA/AA/A		BBB/BB/B		Unrated
Obligations of states and political subdivisions	$	192,034	$	—	$	—

Private label mortgage and asset backed securities	46,651		—		9,022
Corporate debt securities	—		30,154		15,879
Total debt securities held-to-maturity	$	238,685	$	30,154	$	24,901


Loan Type (Dollars in thousands)	June 30, 2023		December 31, 2022
Commercial:
Commercial and industrial	$	103,490	$	141,197
Agricultural production	36,283		37,007
Total commercial	139,773		178,204
Real estate:
Construction & other land loans	77,865		109,175
Commercial real estate - owner occupied	195,348		194,663
Commercial real estate - non-owner occupied	502,814		464,809
Farmland	118,616		119,648
Multi-family residential	53,432		24,586
1-4 family - close-ended	90,064		93,510
1-4 family - revolving	28,625		30,071
Total real estate	1,066,764		1,036,462
Consumer:	47,597		40,252
Total gross loans	1,254,134		1,254,918
Net deferred origination fees	1,524		1,386
Loans, net of deferred origination fees	1,255,658		1,256,304
Allowance for credit losses	(15,463)		(10,848)
Total loans, net	$	1,240,195	$	1,245,456


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, April 1, 2023	$	2,028	$	10,065	$	2,285	$	879	$	15,257


(Credit) provision for credit losses (1)	(551)		619		198		(82)		184
Charge-offs	—		—		—		(3)		(3)
Recoveries	—		—		6		19		25
Ending balance, June 30, 2023	$	1,477	$	10,684	$	2,489	$	813	$	15,463


	Commercial			Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance, April 1, 2022	$	1,993		$	7,048	$	525	$	298	$	9,864
(Credit) provision for credit losses	(30)			(54)		245		(161)		—
Charge-offs	—		—	—		(16)		—		(16)
Recoveries	10			—		15		—		25
Ending balance, June 30, 2022	$	1,973		$	6,994	$	769	$	137	$	9,873


	Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Converted to Term		Total
Commercial and industrial
Pass/Watch	$	14,912	$	23,156	$	22,383	$	5,325	$	2,277	$	8,354	$	24,037	$	215	$	100,659
Special mention	—		—		163		192		1,244		279		—		—		1,878
Substandard	—		—		23		219		—		1,097		—		—		1,339
Total	$	14,912	$	23,156	$	22,569	$	5,736	$	3,521	$	9,730	$	24,037	$	215	$	103,876
Current period gross write-offs	$	—	$	—	$	323	$	—	$	—	$	—	$	—	$	—	$	323

Agricultural production
Pass/Watch	$	108	$	453	$	25	$	—	$	251	$	163	$	24,208	$	999	$	26,207
Special mention	—		—		—		—		—		—		8,940		—		8,940
Substandard	—		1,160		—		—		—		—		—		—		1,160
Total	$	108	$	1,613	$	25	$	—	$	251	$	163	$	33,148	$	999	$	36,307
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & other land loans
Pass/Watch	$	216	$	18,852	$	21,744	$	10,736	$	1,686	$	2,834	$	4,938	$	—	$	61,006
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		948		—		—		15,655		—		—		—		16,603
Total	$	216	$	19,800	$	21,744	$	10,736	$	17,341	$	2,834	$	4,938	$	—	$	77,609
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - owner occupied
Pass/Watch	$	8,997	$	23,344	$	21,137	$	28,733	$	22,817	$	84,534	$	1,980	$	—	$	191,542
Special mention	—		—		—		—		—		1,429		278		—		1,707
Substandard	—		—		—		—		—		2,142		—		—		2,142
Total	$	8,997	$	23,344	$	21,137	$	28,733	$	22,817	$	88,105	$	2,258	$	—	$	195,391
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial real estate - non-owner occupied
Pass/Watch	$	31,772	$	115,665	$	78,562	$	41,164	$	23,435	$	194,047	$	12,043	$	—	$	496,688
Special mention	—		600		—		—		—		2,756		—		—		3,356
Substandard	—		—		—		—		—		2,378		—		—		2,378
Total	$	31,772	$	116,265	$	78,562	$	41,164	$	23,435	$	199,181	$	12,043	$	—	$	502,422
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland
Pass/Watch	$	582	$	23,725	$	10,982	$	29,806	$	11,299	$	24,091	$	12,148	$	1,955	$	114,588
Special mention	—		—		—		2,213		—		—		—		—		2,213
Substandard	—		—		1,570		—		—		196		—		—		1,766
Total	$	582	$	23,725	$	12,552	$	32,019	$	11,299	$	24,287	$	12,148	$	1,955	$	118,567
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential
Pass/Watch	$	2,997	$	—	$	30,097	$	2,397	$	4,581	$	13,165	$	201	$	—	$	53,438
Special mention	—		—		—		—		—		—		—		—		—
Substandard			—		—		—		—		—		—		—		—
Total	$	2,997	$	—	$	30,097	$	2,397	$	4,581	$	13,165	$	201	$	—	$	53,438
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - close-ended
Pass/Watch	$	—	$	65,276	$	8,203	$	2,351	$	2,153	$	11,636	$	560	$	—	$	90,179
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	—	$	65,276	$	8,203	$	2,351	$	2,153	$	11,636	$	560	$	—	$	90,179
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - revolving
Pass/Watch			$	—	$	—	$	—	$	—	$	—	$	22,233	$	6,619	$	28,852
Special mention			—		—		—		—		—		—		—		—
Substandard			—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	22,233	$	6,619	$	28,852
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer
Pass/Watch	$	14,489	$	10,095	$	7,790	$	2,771	$	2,570	$	10,823	$	432	$	—	$	48,970
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		32		—		—		15		—		—		47
Total	$	14,489	$	10,095	$	7,822	$	2,771	$	2,570	$	10,838	$	432	$	—	$	49,017
Current period gross write-offs	$	7	$	—	$	—	$	—	$	27	$	—	$	—	$	—	$	34

Total loans outstanding (risk rating):
Pass/Watch	$	74,073	$	280,566	$	200,923	$	123,283	$	71,069	$	349,647	$	102,780	$	9,788	$	1,212,129


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Dollars in thousands)	2023		2022		2023		2022
Regulatory assessments	$	356	$	194	$	566	$	416
Data processing expense	618		548		1,269		1,089
ATM/Debit card expenses	193		217		377		412
Internet banking	47		48		82		69
Advertising	124		138		249		278
Professional Services	883		464		1,235		838
Information technology	935		828		1,782		1,586
Directors’ expenses	151		48		314		93
Loan related expenses	51		68		198		139
Personnel other	63		59		323		162
Amortization of core deposit intangibles	34		140		68		280
Other	1,110		930		2,016		1,659
Total other non-interest expense	$	4,565	$	3,682	$	8,479	$	7,021


	Shares	Weighted Average Grant-Date Fair Value
Nonvested outstanding shares at December 31, 2022	46,706	$	17.28
Granted	69,692	$	15.86
Vested	(40,134)	$	17.93
Forfeited	(311)	$	16.08
Nonvested outstanding shares at June 30, 2023	75,953	$	15.64


Special mention	—		600		163		2,405		1,244		4,464		9,218		—		18,094
Substandard	—		2,108		1,625		219		15,655		5,828		—		—		25,435
Grand Total	$	74,073	$	283,274	$	202,711	$	125,907	$	87,968	$	359,939	$	111,998	$	9,788	$	1,255,658
Current period total gross write-offs	$	7	$	—	$	323	$	—	$	27	$	—	$	—	$	—	$	357


	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	$	—	$	237	$	—	$	237	$	103,253	$	103,490	$	—	$	—
Agricultural production	—		—		—		—		36,283		36,283		—		—
Real estate:	—
Construction & other land loans	—		—		—		—		77,865		77,865		—		—
Commercial real estate - owner occupied	—		—		—		—		195,348		195,348		—		—
Commercial real estate - non-owner occupied	—		—		—		—		502,814		502,814		—		—
Farmland	—		—		—		—		118,616		118,616		—		—
Multi-family residential	—		—		—		—		53,432		53,432		—		—
1-4 family - close-ended	—		—		—		—		90,064		90,064		—		—
1-4 family - revolving	—		—		—		—		28,625		28,625		—		—

Consumer:	17		—		—		17		47,580		47,597		—		—
Deferred fees	—		—		—		—		$	1,524	1,524		—		—
Total	$	17	$	237	$	—	$	254	$	1,255,404	$	1,255,658	$	—	$	—


	June 30, 2023
	Carrying Amount		Fair Value
(In thousands)			Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	28,325	$	28,325	$	—	$	—	$	28,325
Interest-earning deposits in other banks	100,333		100,333		—		—		100,333

Held-to-maturity investment securities	303,876		—		273,849		—		273,849
Loans, net	1,240,195		—		—		1,155,413		1,155,413
Financial liabilities:
Time deposits	208,864		—		207,351		—		207,351

Senior debt and subordinated debentures	69,671		—		—		59,106		59,106


	Fair Value Measurements Using
June 30, 2023	Fair Value		Level 1		Level 2		Level 3
Available-for-sale debt securities:
U.S. Treasury securities	$	8,780	$	—	$	8,780	$	—
U.S. Government agencies	96		—		96		—
Obligations of states and political subdivisions	177,426		—		177,426		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	89,217		—		89,217		—
Private label mortgage and asset backed securities	344,240		—		344,240		—

Equity securities	6,558		6,558		—		—
Total assets measured at fair value on a recurring basis	$	626,317	$	6,558	$	619,759	$	—


	For the Three Months Ended						For the Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
(In thousands, except share and per-share amounts)	2023		2023		2022		2023		2022
Net interest income before (credit) provision for credit losses	$	20,205	$	21,581	$	19,810	$	41,786	$	37,407
(Credit) provision for credit losses	(343)		518		—		290		—
Net interest income after (credit) provision for credit losses	20,548		20,948		19,810		41,496		37,407
Total non-interest income	1,594		1,575		770		3,169		2,604
Total non-interest expenses	13,805		13,205		12,083		27,010		23,528
Income before provision for income taxes	8,337		9,318		8,497		17,655		16,483
Provision for income taxes	2,055		2,348		1,955		4,403		3,855
Net income	$	6,282	$	6,970	$	6,542	$	13,252	$	12,628


	For the Three Months Ended June 30, 2023						For the Three Months Ended June 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	$	107,134	$	1,374	5.13	%	$	33,067	$	53	0.64	%
Securities
Taxable securities	765,304		5,826		3.05	%	945,210		5,651		2.39	%
Non-taxable securities (1)	256,624		1,779		2.77	%	274,217		2,378		3.47	%
Total investment securities	1,021,928		7,605		2.98	%	1,219,427		8,029		2.63	%

Total securities and interest-earning deposits	1,129,062		8,979		3.18	%	1,252,494		8,082		2.58	%
Loans (2) (3)	1,257,984		17,382		5.54	%	1,085,887		12,883		4.76	%

Total interest-earning assets	2,387,046		$	26,361	4.43	%	2,338,381		$	20,965	3.60	%
Allowance for credit losses	(15,317)						(9,870)
Non-accrual loans	—						280

Cash and due from banks	26,467						33,050
Bank premises and equipment	9,392						8,132
Other assets	93,936						71,989
Total average assets	$	2,501,524					$	2,441,962
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Savings and NOW accounts	$	476,398	$	158	0.13	%	$	600,685	$	34	0.02	%
Money market accounts	547,452		2,423		1.78	%	520,224		164		0.13	%
Time certificates of deposit	225,638		2,290		4.07	%	89,107		33		0.15	%

Total interest-bearing deposits	1,249,488		4,871		1.56	%	1,210,016		231		0.08	%
Other borrowed funds	69,653		911		5.23	%	78,435		424		2.16	%
Total interest-bearing liabilities	1,319,141		$	5,782	1.76	%	1,288,451		$	655	0.20	%
Non-interest bearing demand deposits	963,104						947,724
Other liabilities	34,492						28,091
Shareholders’ equity	184,787						177,696
Total average liabilities and shareholders’ equity	$	2,501,524					$	2,441,962
Interest income and rate earned on average earning assets			$	26,361	4.43	%			$	20,965	3.60	%
Interest expense and interest cost related to average interest-bearing liabilities			5,782		1.76	%			655		0.20	%
Net interest income and net interest margin (4)			$	20,579	3.46	%			$	20,310	3.48	%


	For the Six Months Ended June 30, 2023						For the Six Months Ended June 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	$	57,285	$	1,449	5.06	%	$	81,204	$	109	0.27	%
Securities:
Taxable securities	774,569		11,712		3.02	%	913,481		10,176		2.23	%
Non-taxable securities (1)	257,036		3,557		2.77	%	265,459		4,201		3.17	%
Total investment securities	1,031,605		15,269		2.96	%	1,178,940		14,377		2.44	%

Total securities and interest-earning deposits	1,088,890		16,718		3.07	%	1,260,144		14,486		2.30	%
Loans (2) (3)	1,259,075		34,159		5.47	%	1,051,772		25,044		4.80	%
Total interest-earning assets	2,347,965		$	50,877	4.37	%	2,311,916		$	39,530	3.45	%
Allowance for credit losses	(13,117)						(9,851)
Nonaccrual loans	—						345

Cash and due from banks	27,017						42,713
Bank premises and equipment	8,735						8,218
Other assets	90,142						97,603
Total average assets	$	2,460,742					$	2,450,944
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Savings and NOW accounts	$	501,177	$	252	0.10	%	$	589,785	$	68	0.02	%
Money market accounts	508,028		3,259		1.29	%	531,383		347		0.13	%
Time certificates of deposit	147,577		2,365		3.23	%	88,262		68		0.16	%

Total interest-bearing deposits	1,156,782		5,876		1.02	%	1,209,430		483		0.08	%
Other borrowed funds	96,915		2,468		5.09	%	59,062		757		2.56	%
Total interest-bearing liabilities	1,253,697		$	8,344	1.34	%	1,268,492		$	1,240	0.20	%
Non-interest bearing demand deposits	990,505						944,362
Other liabilities	33,050						33,538
Shareholders’ equity	183,490						204,552
Total average liabilities and shareholders’ equity	$	2,460,742					$	2,450,944
Interest income and rate earned on average earning assets			$	50,877	4.37	%			$	39,530	3.45	%
Interest expense and interest cost related to average interest-bearing liabilities			8,344		1.34	%			1,240		0.20	%
Net interest income and net interest margin (4)			$	42,533	3.65	%			$	38,290	3.34	%


Changes in Volume/Rate	For the Three Months Ended June 30, 2023 and 2022						For the Six Months Ended June 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	$	118	$	1,203	$	1,321	$	(32)	$	1,372	$	1,340
Investment securities:
Taxable	(1,075)		1,250		175		(1,547)		3,082		1,535
Non-taxable (1)	(152)		(447)		(599)		(133)		(511)		(644)
Total investment securities	(1,227)		803		(424)		(1,680)		2,571		891

Loans	2,042		2,457		4,499		4,936		4,179		9,115

Total earning assets (1)	933		4,463		5,396		3,224		8,122		11,346
Interest expense:
Deposits:
Savings, NOW and MMA	1		2,382		2,383		(25)		3,120		3,095
Time certificate of deposits	49		2,208		2,257		46		2,251		2,297

Total interest-bearing deposits	50		4,590		4,640		21		5,371		5,392
Other borrowed funds	(47)		534		487		481		1,230		1,711
Total interest-bearing liabilities	3		5,124		5,127		502		6,601		7,103
Net interest income (1)	$	930	$	(661)	$	269	$	2,722	$	1,521	$	4,243


Loan Type (Dollars in thousands)	June 30, 2023		% of Total Loans		December 31, 2022		% of Total Loans
Commercial:
Commercial and industrial	$	103,490	8.2	%	$	141,197	11.2	%
Agricultural production	36,283		2.9	%	37,007		2.9	%
Total commercial	139,773		11.1	%	178,204		14.1	%
Real estate:
Construction & other land loans	77,865		6.2	%	109,175		8.7	%
Commercial real estate - owner occupied	195,348		15.6	%	194,663		15.5	%
Commercial real estate - non-owner occupied	502,814		40.1	%	464,809		37.2	%
Farmland	118,616		9.4	%	119,648		9.5	%
Multi-family residential	53,432		4.3	%	24,586		2.0	%
1-4 family - close-ended	90,064		7.2	%	93,510		7.4	%
1-4 family - revolving	28,625		2.3	%	30,071		2.4	%
Total real estate	1,066,764		85.1	%	1,036,462		82.7	%
Consumer:	47,597		3.8	%	40,252		3.2	%
Total gross loans	1,254,134		100.0	%	1,254,918		100.0	%
Net deferred origination fees	1,524				1,386
Loan, net of deferred origination fees	1,255,658				1,256,304
Allowance for credit losses	(15,463)				(10,848)
Total loans	$	1,240,195			$	1,245,456


Loan Type	June 30, 2023		December 31, 2022
Commercial:
Commercial and industrial	$	876	$	1,583
Agricultural production	601		229
Total commercial	1,477		1,812
Real estate:
Construction & other land loans	2,617		1,678
Commercial real estate - owner occupied	1,798		814
Commercial real estate - non-owner occupied	5,241		4,388
Farmland	1,253		863
Multi-family residential	386		60
1-4 family - revolving	1,335		465
1-4 family - revolving	543		142
Total real estate	13,173		8,410

Consumer:	813		286
Total consumer	813		286
Unallocated reserves	—		340
Total allowance for credit losses	$	15,463	$	10,848


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

Past due loans	254	0.02	%	5,895	0.47	%	207	0.02	%
Nonaccrual loans	—	—	%	—	—	%	271	0.02	%


(Dollars in thousands)	June 30, 2023		% of Total Deposits		Average Effective Rate		December 31, 2022		% of Total Deposits		Average Effective Rate
NOW accounts	$	272,419	12.4	%	0.12	%	$	324,089	15.4	%	0.06	%
MMA accounts	569,807		25.9	%	1.29	%	435,783		20.8	%	0.17	%
Time deposits	208,864		9.5	%	3.23	%	67,923		3.2	%	0.14	%
Savings deposits	192,116		8.7	%	0.08	%	215,287		10.3	%	0.01	%
Total interest-bearing	1,243,206		56.5	%	1.02	%	1,043,082		49.7	%	0.10	%
Non-interest bearing	957,088		43.5	%			1,056,567		50.3	%
Total deposits	$	2,200,294	100.0	%			$	2,099,649	100.0	%


(Dollars in thousands)	Actual Ratio				Minimum regulatory requirement (1)				Minimum requirement for “Well-Capitalized” Institution
June 30, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Leverage Ratio	$	275,830	11.04	%	$	99,397	4.00	%	$	124,921	5.00	%
Common Equity Tier 1 Ratio (CET 1)	$	275,830	16.49	%	$	75,264	7.00	%	$	108,715	6.50	%
Tier 1 Risk-Based Capital Ratio	$	275,830	16.49	%	$	100,352	8.50	%	$	133,803	8.00	%
Total Risk-Based Capital Ratio	$	292,378	17.48	%	$	133,803	10.50	%	$	167,253	10.00	%

December 31, 2022
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%.


Credit Lines (In thousands)	June 30, 2023		December 31, 2022
Unsecured Credit Lines
Credit limit	$	110,000	$	110,000
Balance outstanding	$	—	$	—
Federal Home Loan Bank
Credit limit	$	347,510	$	319,309
Balance outstanding	$	—	$	46,000
Collateral pledged	$	629,485	$	687,357
Fair value of collateral	$	498,157	$	565,869
Federal Reserve Bank Term Loan Funding Program
Credit limit	$	37,968	$	—
Balance outstanding	$	—	$	—
Collateral pledged	$	55,272	$	—
Fair value of collateral	$	48,584	$	—
Federal Reserve Bank
Credit limit	$	4,583	$	4,702
Balance outstanding	$	—	$	—
Collateral pledged	$	5,188	$	5,508
Fair value of collateral	$	4,614	$	4,893



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: August 3, 2023			/s/ James J. Kim
			James J. Kim
			President and Chief Executive Officer

Date: August 3, 2023			/s/ Shannon Avrett
			Shannon Avrett
			Executive Vice President and Chief Financial Officer