Community West Bancshares reported significant growth in the third quarter of 2026, primarily driven by the full-quarter impact of its merger with United Security Bancshares. While GAAP results were dampened by one-time merger and legal costs, core profitability showed strength with record net interest income and significant margin expansion. The bank successfully improved its funding profile by growing core deposits and reducing reliance on higher-cost brokered deposits.
Key Highlights
- Net Interest Margin (NIM) expanded to 4.65%, a 9 basis point increase from the prior quarter and significantly above the 4.15% estimate.
- Total revenue (Net Interest Income plus Non-interest Income) reached $58.0 million, exceeding analyst expectations of $36.5 million.
- Comparable non-GAAP EPS was $0.66, beating the $0.65 estimate, though GAAP EPS was $0.30 due to $13.8 million in non-core expenses.
- Recorded a one-time $6.6 million legal settlement and $7.2 million in merger-related integration costs during the quarter.
- Core liquidity strengthened as total deposits grew by $101.0 million, allowing for a $107.5 million reduction in brokered deposits.