西部社區銀行公佈2026年第二季度業績，合併後淨利潤270萬美元

EX-99.1
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cwbc6302026earningsrelease.htm
EX-99.1

Document

FOR IMMEDIATE RELEASE
COMMUNITY WEST BANCSHARES REPORTS EARNINGS RESULTS 
FOR THE QUARTER ENDED JUNE 30, 2026, 
AND QUARTERLY DIVIDEND

FRESNO, CALIFORNIA...July 23, 2026...The Board of Directors of Community West Bancshares (“Company”) (NASDAQ: CWBC), the parent company of Community West Bank (“Bank”), reported today unaudited consolidated net income of $2,695,000, and diluted earnings per share of $0.10 for the three months ended June 30, 2026, compared to net income of $7,832,000 and $0.41 per diluted common share for the three months ended June 30, 2025. The Company declared a $0.12 per common share cash dividend, payable on August 21, 2026 to shareholders of record as of August 7, 2026.

"I am pleased to share that this quarter represents the first full quarter for the combined Company following the successful merger with United Security Bancshares and United Security Bank on April 1, 2026. Surpassing $5 billion in total assets marks an exciting milestone in Community West Bank's continued growth and reflects the strength of our expanded franchise," said James J. Kim, CEO and President of the Company and Bank.

"While the quarter included anticipated merger-related expenses associated with bringing our organizations together, the business combination is performing as expected, with early results exceeding our expectations in several key areas. The successful integration of our teams, clients, and operations, continues to reinforce the strength of our organization and our commitment to relationship banking. As we complete the final phase of integration, we remain focused on delivering an exceptional experience for our clients, supporting our communities, and creating long-term value for our shareholders.”
FINANCIAL HIGHLIGHTS
•On April 1, 2026, the Company completed its previously announced merger (“Merger”) with United Security Bancshares (“USB”) pursuant to which USB merged with and into the Company, with the Company continuing as the surviving entity. Following the Merger, United Security Bank, a wholly owned subsidiary of USB, merged with and into Community West Bank, a wholly owned subsidiary of the Company, with the Bank continuing as the surviving entity. 
•Net income during the second quarter decreased to $2.70 million, or $0.10 per diluted common share, compared to net income of $11.49 million and $0.60 per diluted common share, respectively, in the first quarter of 2026. The decrease in net income was due to an increase in non-recurring items: an increase in merger expenses of $7,458,000 and a net realized loss on sales and calls of investment securities of $5,899,000, in addition to an increase to the provision for credit losses of $5,545,000 as compared to the trailing quarter. 
•The Company recorded a provision for credit losses of $5,635,000 during the quarter ended June 30, 2026, as compared to $90,000 during the trailing quarter. The current quarter provision is attributed to a provision for loan losses totaling $6,182,000, partially offset by a credit to the reserve for unfunded commitments of $492,000, and a credit to the reserve for held-to-maturity securities of $55,000. The provision for loan losses during the quarter ended June 30, 2026 was primarily due to an update of the Company’s peer group based on its larger asset size following the completion of the Merger and also from organic loan growth during the quarter.
•Gross loans increased by $992.7 million or 38.91% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and increased $1.0 billion or 39.47% year-to-date. The fair value of loans acquired from USB was $878.5 million as of April 1, 2026.
•Total deposits increased by $977.9 million or 31.13% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and $1.0 billion or 33.09% year-to-date. Total deposits acquired as a result of the Merger 
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Community West Bancshares -- page 2

was $1.1 billion as of April 1, 2026. Brokered deposits decreased by $73.1 million or 14.30% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and decreased $80.5 million or 15.53% year-to-date.
•Total cost of deposits decreased to 1.31% for the quarter ended June 30, 2026 compared to 1.40% for the quarter ended March 31, 2026, and decreased from 1.39% for the quarter ended December 31, 2025.
•Average non-interest bearing demand deposits as a percentage of total average deposits totaled 34.14% and 33.32% for the quarters ended June 30, 2026 and March 31, 2026, respectively.
•Net interest margin (calculated on a fully tax equivalent basis) increased to 4.56% for the quarter ended June 30, 2026, from 4.30% for the quarter ended March 31, 2026.
•Return on average assets was 0.22% for the quarter ended June 30, 2026 as compared to 1.24% and 0.88% for the quarters ended March 31, 2026 and June 30, 2025, respectively. Return on average assets, excluding the non-core items of merger expenses and net loss on sales/calls of securities, was 1.00% for the quarter ended June 30, 2026 as compared to 1.27% and 0.88% for the quarters ended March 31, 2026 and June 30, 2025, respectively. See non-GAAP disclosures for more information. 
•Return on average equity was 1.77% for the quarter ended June 30, 2026 as compared to 10.99% and 8.30% for the quarters ended March 31, 2026 and June 30, 2025, respectively. Return on average equity, excluding the non-core items of merger expenses and net loss on sales/calls of securities, was 8.10% for the quarter ended June 30, 2026 as compared to 11.18% and 8.31% for the quarters ended March 31, 2026 and June 30, 2025, respectively. See non-GAAP disclosures for more information. 
•Capital positions remained strong at June 30, 2026 with a 9.79% Tier 1 Leverage Ratio; a 11.41% Common Equity Tier 1 Ratio; a 11.53% Tier 1 Risk-Based Capital Ratio; and a 13.63% Total Risk-Based Capital Ratio.

"Second quarter 2026 results reflect several anticipated, non-recurring merger-related items, including integration expenses, the repositioning of a portion of the investment portfolio, and an increased provision for credit losses.

Importantly, the higher provision reflects the Company's larger balance sheet and reserve methodology associated with the expanded organization and peer group, rather than any broad trends of declining credit quality.” said Shannon Livingston, Executive Vice President and Chief Financial Officer.

“These strategic actions position the Company for stronger long-term performance. Excluding these anticipated one-time items, our core operating performance remained strong, demonstrating the strength and earnings capacity of the combined Company, while positioning the organization for future growth."

Results of Operations
Three months endedSix months ended
June 30,
March 31,
June 30,
June 30,

(In thousands, except share and per-share amounts) 2026
2026
202520262025
Net interest income before provision for credit losses$50,912 $36,003 $33,304 $86,916 $65,486 
Provision for credit losses5,635 90 2,613 5,725 2,572 
Net interest income after provision for credit losses45,277 35,913 30,691 81,191 62,914 
Total non-interest income(1,970)2,788 2,364 817 4,975 
Total non-interest expenses39,143 22,987 22,296 62,130 45,766 
Income before provision for income taxes4,164 15,714 10,759 19,878 22,123 
Provision for income taxes1,469 4,225 2,927 5,694 5,998 
Net income$2,695 $11,489 $7,832 $14,184 $16,125 

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Community West Bancshares -- page 3

Statement Regarding use of Non-GAAP Financial Measures
In this press release, Community West Bancshares’ financial results are presented in accordance with GAAP and refer to certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and manage the Company’s business. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.

Reconciliation of GAAP and Non-GAAP Financial Measures

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)2026
2026202520262025

NET INCOME ADJUSTED FOR NON-CORE ITEMS
Net income (GAAP)$2,695 $11,489 $7,832 $14,184 $16,125 
Merger and conversion related costs:

Personnel and severance4,824 — — 4,824 — 
Professional services2,361 289 — 2,650 278 
Data processing and technology502 — — 502 — 
Other60 — — 60 — 
Total merger and conversion related costs7,747 289 — 8,036 278 
Loss on sales/calls of investment securities5,899 — 15 5,899 15 
Income tax impact of non-core items(4,034)(85)(4)(4,119)(87)
Comparable net income (non-GAAP)$12,307 $11,693 $7,843 $24,000 $16,331 
DILUTED EARNINGS PER SHARE
Weighted average diluted shares27,108,920 19,137,134 19,042,750 23,145,947 19,028,425 
Diluted earnings per share (GAAP)$0.10 $0.60 $0.41 $0.61 $0.85 
Comparable diluted earnings per share (non-GAAP)$0.45 $0.61 $0.41 $1.04 $0.86 
RETURN ON AVERAGE ASSETS
Average assets$4,927,741 $3,695,982 $3,553,327 $4,315,265 $3,540,901 
Return on average assets (GAAP)0.22 %1.24 %0.88 %0.66 %0.91 %
Impact of non-core items0.78 %0.03 %— %0.45 %0.01 %
Comparable return on average assets (non-GAAP)1.00 %1.27 %0.88 %1.11 %0.92 %
RETURN ON AVERAGE EQUITY
Average stockholders' equity$608,065 $418,172 $377,413 $513,645 $373,735 
Return on average equity (GAAP)1.77 %10.99 %8.30 %5.52 %8.63 %
Impact of non-core items6.33 %0.19 %0.01 %3.82 %0.11 %
Comparable return on average equity (non-GAAP)8.10 %11.18 %8.31 %9.34 %8.74 %
EFFICIENCY RATIO
Non-interest expense (GAAP)$39,143 $22,987 $22,296 $62,130 $45,766 
Merger-related non-interest expenses(7,747)(289)— (8,036)(278)
Comparable non-interest expense (non-GAAP)31,396 22,698 22,296 54,094 45,488 
Net interest income (GAAP)50,912 36,003 33,304 86,916 65,486 
Non-interest income (GAAP)(1,970)2,788 2,364 817 4,975 
Loss on sales/calls of investment securities5,899 — 15 5,899 15 
Comparable non-interest income (non-GAAP)$3,929 $2,788 $2,379 $6,716 $4,990 
Efficiency ratio (GAAP)79.98 %59.26 %62.51 %70.82 %64.95 %
Comparable efficiency ratio (non-GAAP)57.25 %58.51 %62.48 %57.77 %64.54 %

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Community West Bancshares -- page 4

Three months ended Six months ended
June 30,
March 31,
June 30,
June 30,
June 30,

(Dollars in thousands)2026
2026
202520262025
PRE-TAX PRE-PROVISION RETURN ON AVERAGE ASSETS OR EQUITY
Net income (GAAP)$2,695 $11,489 $7,832 $14,184 $16,125 
Exclude provision for income taxes1,469 4,225 2,927 5,694 5,998 
Exclude provision for credit losses5,635 90 2,613 5,725 2,572 
Net income before income tax and provision expense (Non-GAAP)$9,799 $15,804 $13,372 $25,603 $24,695 

Net income excluding non-core items (Non-GAAP)12,307 11,693 7,843 24,000 16,331 
Exclude provision for income taxes (Non-GAAP) (1)5,503 4,310 2,931 9,813 6,085 
Exclude provision for credit losses5,635 90 2,613 5,725 2,572 
Net income excluding non-core items before income tax and provision expense (Non-GAAP)$23,445 $16,093 $13,387 $39,538 $24,988 

RETURN ON AVERAGE ASSETS (Annualized)
Average assets$4,927,741 $3,695,982 $3,553,327 $4,315,265 $3,540,901 
Return on average assets (GAAP)0.22 %1.24 %0.88 %0.66 %0.91 %
Pre-tax pre-provision return on average assets (Non-GAAP)0.80 %1.71 %1.51 %1.19 %1.39 %
Pre-tax pre-provision excluding non-core items return on average assets (Non-GAAP)1.90 %1.74 %1.51 %1.83 %1.41 %

RETURN ON AVERAGE EQUITY (Annualized)
Average stockholders' equity$608,065 $418,172 $377,413 $513,645 $373,735 
Return on average equity (GAAP)1.77 %10.99 %8.30 %5.52 %8.63 %
Pre-tax pre-provision return on average equity (Non-GAAP)6.45 %15.12 %14.17 %4.98 %13.22 %
Pre-tax pre-provision excluding non-core items return on average equity (Non-GAAP)15.42 %15.39 %14.19 %15.40 %13.37 %

       (1) Calculated as GAAP provision for income taxes plus income tax impact of non-core items at statutory tax rate of 29.56%. 

June 30,
March 31,
December 31,
September 30,
June 30,

(Dollars in thousands)2026
2026202520252025
TANGIBLE COMMON EQUITY
Shareholders’ equity (GAAP)$607,820 $419,203 $409,588 $397,576 $380,002 
Exclude goodwill155,249 96,828 96,828 96,828 96,828 
Exclude other intangibles assets32,723 8,015 8,266 8,516 8,767 
Tangible common equity (Non-GAAP)$419,848 $314,360 $304,494 $292,232 $274,407 

TANGIBLE COMMON EQUITY PER SHARE
Tangible shareholders’ equity (Non-GAAP)$419,848 $314,360 $304,494 $292,232 $274,407 

Common shares outstanding at end of period27,131,078 19,185,275 19,163,452 19,138,677 19,130,508 

Common shareholders’ equity (book value) per share (GAAP)$22.40 $21.85 $19.19 $21.37 $20.77 $19.86 
Tangible common shareholders’ equity (tangible book value) per share (Non-GAAP)$15.47 $16.39 $15.89 $15.27 $14.34 

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Community West Bancshares -- page 5

For the quarter ended June 30, 2026, the Company reported unaudited consolidated net income of $2,695,000 and diluted earnings per common share of $0.10, compared to consolidated net income of $11,489,000 and $0.60 per fully diluted share for the trailing quarter, and consolidated net income of $7,832,000 and $0.41 per diluted share for the same period in 2025. The Company's earnings during the quarter were impacted from merger expenses, a loss on sale of securities, and a higher provision for loan losses as compared to the prior quarter.

For the six months ended June 30, 2026, the Company reported unaudited consolidated net income of $14,184,000 and diluted earnings per common share of $0.61, compared to consolidated net income of $16,125,000 and $0.85 per diluted share for the same period in 2025. The net income for the period decreased as compared to the prior year due to net realized losses on sales and calls of investment securities of $5,899,000, an increase in the provision for credit losses of $3,153,000, and an increase in merger expenses of $7,746,000. The decrease in net income was partially offset by an increase in net interest income of $17,608,000 and a decrease in the provision for income taxes of $304,000. 

Annualized return on average assets (ROAA) was 0.22% for the quarter ended June 30, 2026 compared to 0.88% for the same period in 2025. Annualized return on average equity (ROAE) for the quarter ended June 30, 2026 was 1.77%, compared to 8.30% for the same period of 2025. Annualized return on average assets (ROAA) (Non-GAAP) was 0.80% for the quarter ended June 30, 2026 compared to 1.51% for the same period in 2025. Annualized return on average equity (ROAE) (Non-GAAP) for the quarter ended June 30, 2026 was 6.45%, compared to 14.17% for the same period of 2025. 

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 3.05% for the quarter ended June 30, 2026, compared to 2.95% for the quarter ended June 30, 2025 and 2.83% for the quarter ended March 31, 2026. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.95% for the six months ended June 30, 2026, compared to 2.99% for the six months ended June 30, 2025.

Total average loans, including non-accrual loans, increased by $1,131,787,000 to $3,502,112,000 for the quarter ended June 30, 2026, from $2,370,325,000 for the quarter ended June 30, 2025 and increased by $958,458,000 from $2,543,654,000 for the quarter ended March 31, 2026. The year over year increase was due to the completed Merger as of April 1, 2026 combined with organic loan growth throughout the Company’s footprint. The effective yield on average loans was 6.76% for the quarter ended June 30, 2026, compared to 6.71% and 6.72% for the quarters ended June 30, 2025 and March 31, 2026, respectively. Total average loans increased by $662,010,000 to $3,008,254,000 for the six months ended June 30, 2026, from $2,346,244,000 for the six months ended June 30, 2025. The effective yield on average loans was 6.74% for the six months ended June 30, 2026, compared to 6.70% for the six months ended June 30, 2025. 

The Company’s net interest margin (fully tax equivalent basis) was 4.56% for the quarter ended June 30, 2026, compared to 4.10% for the quarter ended June 30, 2025 and 4.30% for the quarter ended March 31, 2026. Net interest income, before provision for credit losses, increased by $17,608,000 or 52.87%, to $50,912,000 for the second quarter of 2026, compared to $33,304,000 for the same period in 2025. In addition to the increase in average loans due to the Merger with USB and organic loan growth, the Company's yield on interest earning assets has increased from 5.65% for the quarter ended June 30, 2025 to 5.91% for the quarter ended June 30, 2026. Additionally, the Company benefited from a decrease in the cost on interest-bearing liabilities, in which the cost of total deposits decreased to 1.31% from 1.43% when comparing the quarters ended June 30, 2026 and 2025. The decrease in the cost of deposits is primarily attributed to the addition of the USB deposit portfolio which carried an overall lower interest cost. Net interest margin during the three months ended June 30, 2026 and 2025 and March 31, 2026 benefited by approximately 44 basis points ($4,960,000), 31 basis points ($2,588,000), and 25 basis points ($2,098,000), respectively, from the net accretion of fair value marks. 

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Community West Bancshares -- page 6

The Company’s net interest margin (fully tax equivalent basis) was 4.45% for the six months ended June 30, 2026, compared to 4.07% for the six months ended June 30, 2025. Net interest income, before provision for credit losses, increased $21,430,000 or 32.72%, to $86,916,000 for the six months ended June 30, 2026, compared to $65,486,000 for the same period in 2025. The accretion on loan marks of acquired loans increased interest income by $7,416,000 and $6,326,000 during the six months ended June 30, 2026 and 2025, respectively. Net interest income during the six months ended June 30, 2026 and 2025 benefited by approximately 36 basis points ($7,058,000) and 39 basis points ($6,326,000), respectively, from the net accretion of the fair value marks.

Non-Interest Income - The following tables present the key components of non-interest income for the periods indicated:

Three months ended 
June 30,
March 31,

(Dollars in thousands)2026
2026
$ Change% Change
Service charges$1,038 $518 $520 100.4 %
Interchange fees836 464 372 80.2 %
Appreciation in cash surrender value of bank owned life insurance522 377 145 38.5 %
Loan placement fees299 146 153 104.8 %
Federal Home Loan Bank dividends217 557 (340)(61.0)%

Net realized losses on sales and calls of investment securities(5,899)— (5,899)— %
Other income1,017 726 291 40.1 %
Total non-interest income$(1,970)$2,788 $(4,758)(170.7)%

Three months ended 
June 30,
June 30,

(Dollars in thousands)2026
2025
$ Change% Change
Service charges$1,038 $505 $533 105.5 %
Interchange fees836 492 344 69.9 %
Appreciation in cash surrender value of bank owned life insurance522 372 150 40.3 %
Loan placement fees299 180 119 66.1 %
Federal Home Loan Bank dividends217 237 (20)(8.4)%

Net realized losses on sales and calls of investment securities(5,899)(15)(5,884)39226.7 %
Other income1,017 593 424 71.5 %
Total non-interest income$(1,970)$2,364 $(4,334)(183.3)%

Six months ended June 30,

(Dollars in thousands)2026
2025
$ Change% Change
Service charges$1,556 $1,007 $549 54.5 %
Interchange fees1,300 1,008 292 29.0 %
Appreciation in cash surrender value of bank owned life insurance899 738 161 21.8 %
Federal Home Loan Bank dividends773 478 295 61.7 %
Loan placement fees445 567 (122)(21.5)%

Net realized losses on sales and calls of investment securities(5,899)(15)(5,884)39226.7 %
Other income1,743 1,192 551 46.2 %
Total non-interest income$817 $4,975 $(4,158)(83.6)%

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Community West Bancshares -- page 7

The decreases in non-interest income quarter-to-date and year-to-date were primarily due to net realized losses on sales and calls of investment securities as part of the Company’s strategic repositioning of the balance sheet. The investment sales proceeds were reinvested into higher yielding investment securities and will be accretive to income in future quarters. Partially offsetting these losses were increases in service charges, interchange fees, loan placement fees, bank-owned life insurance income, and other income, all of which benefited from the expanded customer and asset base resulting from the Merger with USB completed on April 1, 2026.

Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:

Three months ended
June 30,
March 31,

(Dollars in thousands)2026
2026
$ Change% Change
Salaries and employee benefits$16,318 $12,764 $3,554 27.8 %
Merger and acquisition expense7,746 289 7,457 2580.3 %
Occupancy and equipment3,803 2,855 948 33.2 %
Information technology2,658 1,713 945 55.2 %
Amortization of core deposit intangibles1,873 251 1,622 646.2 %
Data processing expense1,218 760 458 60.3 %
Professional services840 622 218 35.0 %
Regulatory assessments706 526 180 34.2 %
ATM/Debit card expenses677 347 330 95.1 %
Directors’ expenses261 236 25 10.6 %
Loan related expenses 208 185 23 12.4 %
Advertising185 201 (16)(8.0)%
Personnel other25 38 (13)(34.2)%
Other expense2,625 2,200 425 19.3 %
   Total non-interest expenses$39,143 $22,987 $16,156 70.3 %

Three months ended
June 30,
June 30,

(Dollars in thousands)2026
2025$ Change% Change
Salaries and employee benefits$16,318 $12,260 $4,058 33.1 %
Merger and acquisition expense7,746 — 7,746 — %
Occupancy and equipment3,803 2,794 1,009 36.1 %
Information technology2,658 1,791 867 48.4 %
Amortization of core deposit intangibles1,873 250 1,623 649.2 %
Data processing expense1,218 855 363 42.5 %
Professional services840 639 201 31.5 %
Regulatory assessments706 498 208 41.8 %
ATM/Debit card expenses677 397 280 70.5 %
Directors’ expenses261 236 25 10.6 %
Loan related expenses 208 164 44 26.8 %
Advertising185 241 (56)(23.2)%
Personnel other25 97 (72)(74.2)%
Other expense2,625 2,074 551 26.6 %
   Total non-interest expenses$39,143 $22,296 $16,847 75.6 %

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Community West Bancshares -- page 8

During the second quarter of 2026, total non-interest expense increased $16,156,000 and $16,847,000 compared to March 31, 2026 and June 30, 2025, respectively. The increases in both quarter-to-date and year-to-date non-interest expense categories was driven primarily by increases in merger expenses, salary and employee benefits, and amortization of core deposit intangibles as a result of the Merger.. The Company added 100 full-time equivalent employees as a result of the Merger, including temporary employees to assist with systems integrations.

Six months ended June 30,

(Dollars in thousands)2026
2025
$ Change% Change
Salaries and employee benefits$29,081 $25,219 $3,862 15.3 %
Merger and acquisition expense8,036 278 7,758 2790.6 %
Occupancy and equipment6,658 5,621 1,037 18.4 %
Information technology4,371 3,693 678 18.4 %
Amortization of core deposit intangibles2,124 501 1,623 324.0 %
Data processing expense1,978 1,655 323 19.5 %
Professional services1,462 1,503 (41)(2.7)%
Regulatory assessments1,232 989 243 24.6 %
ATM/Debit card expenses1,023 790 233 29.5 %
Directors’ expenses496 452 44 9.7 %
Loan related expenses 394 376 18 4.8 %
Advertising386 502 (116)(23.1)%
Personnel other63 198 (135)(68.2)%
Other expense4,826 3,989 837 21.0 %
Total non-interest expenses$62,130 $45,766 $16,364 35.8 %

Balance Sheet Summary

The acquisition of USB has been accounted for using the acquisition method of accounting in accordance with ASC Topic 805. Assets acquired, liabilities assumed, intangibles recognized and consideration exchanged was recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. We recorded the fair values based on the valuations available as of reporting date. In accordance with business combination accounting guidance, we will continue to evaluate these fair values for up to one year following the Merger date of April 1, 2026. While management believes the information available and presented below provide a reasonable basis for estimating fair value, we may obtain additional information and evidence during the measurement period that could result in changes to the estimated fair value amounts. Valuation subject to change include, but not limited to, loans and leases, deposits, deferred tax items, and certain other assets and liabilities.

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Community West Bancshares -- page 9

The following table summarizes the consideration paid for USB and the amounts of assets acquired and liabilities assumed that were recorded at the acquisition date (in thousands):

United Security Bancshares
April 1, 2026
Fair value of consideration transferred:
Fair value of shares issued$184,586 
Cash consideration86 

Total merger consideration$184,672 

Assets acquired:
Cash and cash equivalents$58,911 
Available-for-sale debt securities136,565 
Marketable equity securities3,407 
Loans and leases878,527 
Premises and equipment13,177 
Cash value of life insurance21,387 
Core deposit intangibles26,581 
Other assets62,906 
Total assets acquired1,201,461 
Liabilities assumed:
Deposits(1,058,485)

Other liabilities(16,760)
Total liabilities assumed(1,075,245)
Total net assets acquired126,216 
Goodwill created from transaction$58,456 

Total assets for the period ended June 30, 2026 increased $1,343,964,000 or 36.42%, compared to the period ended December 31, 2025. Total average assets for the quarter ended June 30, 2026 were $4,927,741,000 compared to $3,553,327,000 for the quarter ended June 30, 2025 and $3,695,982,000 for the quarter ended March 31, 2026, an increase of $1,374,414,000 or 38.68% and an increase of $1,231,759,000 or 33.33%, respectively.

For the quarter ended June 30, 2026, the Company’s average gross investment securities increased by $75,468,000, or 9.09%, compared to the quarter ended June 30, 2025, and increased by $103,054,000, or 12.84%, compared to the quarter ended March 31, 2026. This increase compared to the prior year was the result of the Merger with USB and calls and maturities of available-for-sale securities and held-to-maturity securities.

In comparing the quarter ended June 30, 2026 to the quarters ended June 30, 2025 and March 31, 2026, total average gross loans increased $1,131,787,000 or 47.75%, and increased by $958,458,000 or 37.68%, respectively. The fair value of loans acquired from USB was $878.5 million as of April 1, 2026. Included in the fair value of loans was an interest rate discount of $36.4 million. 

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Community West Bancshares -- page 10

The following table shows the Company’s outstanding loan portfolio composition as of June 30, 2026 and December 31, 2025:

June 30, 2026
December 31, 2025

Loan Type (dollars in thousands)Amount% of TotalAmount% of Total
Commercial:
Commercial and industrial$259,483 7.3 %$156,744 6.2 %
Agricultural production74,117 2.1 %34,152 1.3 %
Total commercial333,600 9.4 %190,896 7.5 %
Real estate:
Construction & other land loans224,359 6.3 %80,452 3.2 %
Commercial real estate - owner occupied531,684 15.0 %368,604 14.5 %
Commercial real estate - non-owner occupied1,259,331 35.6 %992,486 39.1 %
Farmland162,830 4.6 %142,100 5.6 %
Multi-family residential230,387 6.5 %199,123 7.8 %
1-4 family - close-ended309,032 8.7 %111,741 4.4 %
1-4 family - revolving43,768 1.2 %39,818 1.6 %
Total real estate2,761,391 77.9 %1,934,324 76.2 %
Consumer:
Manufactured housing323,384 9.1 %322,761 12.7 %
Other installment124,898 3.5 %92,589 3.6 %
Total consumer448,282 12.6 %415,350 16.3 %
Net deferred origination costs510 0.1 %287 — %
Total gross loans3,543,783 100.0 %2,540,857 100.0 %
Allowance for credit losses(50,345)(30,071)
Total loans$3,493,438 $2,510,786 

The composition of deposits at June 30, 2026 and December 31, 2025 is summarized in the table below:
June 30, 2026December 31, 2025

(Dollars in thousands)Amount% of TotalAmount% of Total
Savings and NOW accounts$976,176 23.7 %$674,704 21.8 %
MMA accounts1,151,159 27.9 %858,354 27.7 %
Time deposits541,119 13.1 %503,451 16.3 %
Total interest-bearing2,668,454 64.8 %2,036,509 65.8 %
Non-interest bearing1,451,008 35.2 %1,058,765 34.2 %
Total deposits$4,119,462 100.0 %$3,095,274 100.0 %

Total average deposits increased $1,221,603,000 or 41.23%, to $4,184,435,000 for the quarter ended June 30, 2026, compared to $2,962,832,000 for the quarter ended June 30, 2025, and increased $1,036,271,000, or 32.92%, compared to $3,148,164,000 for the quarter ended March 31, 2026. The increase in average deposits was due to the completion of the Merger with USB and organic growth throughout the Company’s footprint. The Company’s ratio of average non-interest bearing deposits to total deposits was 34.14% for the quarter ended June 30, 2026, compared to 34.48% and 33.32% for the quarters ended June 30, 2025 and March 31, 2026, respectively.

The Company has significant liquidity, both on and off-balance sheet, to meet customer demand. During the year-to-date period, the Company’s cash and cash equivalents increased $87,853,000 to $206,837,000 compared to $118,984,000 at December 31, 2025. The Company had $175,000,000 in short-term borrowings at June 30, 2026 compared to $73,000,000 at December 31, 2025. 

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Community West Bancshares -- page 11

At June 30, 2026 and December 31, 2025, the Company had the following sources of primary and secondary liquidity:

Liquidity Sources (in thousands)June 30, 2026
December 31, 2025

Cash and cash equivalents$206,837 $118,984 
Unpledged investment securities357,740 338,235 
Excess pledged securities53,534 85,961 
FHLB borrowing remaining availability703,907 709,391 
Unsecured lines of credit availability150,000 110,000 
Funds available through FRB discount window3,101 3,411 
Total$1,475,119 $1,365,982 

Credit Quality 
During the second quarter of 2026, the Company recorded net loan charge-offs of $5,498,000 compared to $13,000 for the same period in 2025. The primary reason for the increase in loan charge-offs during the quarter was due to $2.6 million in charge-offs within an acquired student loan portfolio from the Merger, in which the Company recorded a Day 1 allowance of $9.5 million in anticipation of future charge-offs in this portfolio segment. Additionally, the Company charged off one commercial real estate loan that was individually evaluated and had a specific reserve in prior quarters. The net charge-off ratio reflects annualized net charge-offs to average loans of 0.63% for the quarter ended June 30, 2026, compared to annualized net charge-offs of 0.00% for the quarter ended June 30, 2025. During the quarter ended June 30, 2026, non-accrual loans decreased $3,240,000 to $19,757,000 compared to $22,997,000 at March 31, 2026 and increased $12,802,000 year-to-date to $19,757,000 compared to $6,955,000 at December 31, 2025. The quarter-to-date increase in substandard loans is attributable primarily to the Merger with USB, which contributed $30 million in substandard loan balances. While total dollar balances of substandard loans increased relative to the prior quarter, the ratio of substandard loans to total loans remained consistent with the trailing quarter.

During the quarter ended June 30, 2026, the Company recorded a $6,182,000 provision for loan losses, compared to $2,640,000 for the same period in 2025. The provision for loan losses during the quarter ended June 30, 2026 was primarily due to an update of the Company’s peer group based on its larger asset size following the completion of the Merger and also from organic loan growth during the quarter. In addition to the provision for credit losses on loans for the quarter ended June 30, 2026, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $55,000 as compared to $188,000 in the prior year quarter. The Company recorded a credit to the provision for unfunded loan commitments totaling $492,000 for the quarter ended June 30, 2026 compared to a provision for unfunded loan commitments of $161,000 in the prior year quarter. 

The following table shows the Company’s loan portfolio, net of deferred costs, allocated by management’s internal risk ratings:

Loan Risk Rating (In thousands)June 30, 2026% of TotalMarch 31, 2026% of TotalJune 30, 2025% of Total
Pass$3,377,926 95.3 %$2,424,756 95.1 %$2,320,608 96.7 %
Special mention55,617 1.6 %49,500 1.9 %19,706 0.8 %
Substandard110,240 3.1 %76,802 3.0 %59,073 2.5 %
Doubtful— — — 
Total$3,543,783 100.0 %$2,551,058 100.0 %$2,399,387 100.0 %

At June 30, 2026, the allowance for credit losses for loans was $50,345,000, compared to $30,071,000 at December 31, 2025, a net increase of $20,274,000 reflecting a provision for loan losses of $6,304,000 and net charge-offs during the period. The primary driver of this increase was the acquisition of USB, which contributed $19.4 million in Day 1 allowance balances across all portfolio segments. As a result of the Company's early adoption of ASU 2025-08, a Day 1 allowance for credit losses was established for acquired loans at the Merger date. Excluding the impact of the Day 1 allowance, the allowance grew modestly, reflecting a provision for credit losses of $6.2 million, partially offset by net charge-offs of 
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Community West Bancshares -- page 12

$5.5 million during the quarter. The allowance for credit losses as a percentage of total loans was 1.42% as of June 30, 2026 compared to 1.18% at December 31, 2025. The Company believes the allowance for credit losses is adequate to provide for expected credit losses within the loan portfolio at June 30, 2026. 
The following table shows the summary of activities for the allowance for credit losses three months ended June 30, 2026 by portfolio segment (in thousands):

 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
Allowance for credit losses:    
Beginning balance, March 31, 2026$3,065 $20,449 $2,342 $4,374 $30,230 
Merger Day 1 ACL1,859 6,838 1,204 9,530 19,431 
Provision for credit losses (1)1,989 3,361 662 170 6,182 
Charge-offs(816)(2,355)— (2,642)(5,813)
Recoveries47 194 6 68 315 
Ending balance, June 30, 2026$6,144 $28,487 $4,214 $11,500 $50,345 

(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $5,635 includes a $(55) credit for held-to-maturity securities and a $(492) credit to the provision for unfunded loan commitments.

Cash Dividend Declared
On July 22, 2026, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on August 21, 2026 to shareholders of record as of August 7, 2026. The Company continues to be well capitalized and expects to maintain adequate capital levels.
About Community West Bank and Bancshares
Effective on April 1, 2026, Community West Bancshares completed its merger with United Security Bancshares, with Community West Bancshares continuing as the surviving entity. Shortly thereafter United Security Bank, a wholly owned subsidiary of United Security Bancshares, merged with and into Community West Bank, a wholly-owned subsidiary of Community West Bancshares, with Community West Bank continuing as the surviving banking institution. Pursuant to the terms of the merger agreement, each share of United Security Bancshares common stock was converted into the right to receive 0.4520 shares of Community West Bancshares common stock, with cash to be paid in lieu of any fractional shares.

Community West Bancshares (NASDAQ: CWBC) and its wholly owned subsidiary, Community West Bank, are headquartered in Fresno, California. The Company was established in 1979 with the vision to help businesses and communities by exceeding expectations at every opportunity, and opened its first Banking Center on January 10, 1980. Today, Community West Bank operates full-service Banking Centers throughout Central California and maintains a variety of departments supporting Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking, and Treasury Management Services.

Members of the Company and Bank Board of Directors are: Daniel J. Doyle (Chairman), Jagroop “Jay” Gill (Vice Chairman), James J. Kim (CEO and President), Andriana D. Majarian (Lead Independent Director), Robert H. Bartlein, F.T. “Tommy” Elliott IV, Robert J. Flautt, James W. Lokey, Steven D. McDonald, Martin E. Plourd, Dorothea D. Silva, Kirk B. Stovesand, and Dora Westerlund. Louis C. McMurray and Daniel N. Cunningham are Directors Emeriti.

More information about Community West Bancshares and Community West Bank can be found at www.communitywestbank.com.

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Community West Bancshares -- page 13

Forward-looking Statements - Certain matters set forth herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: risks relating to our recently completed acquisition of United Security Bancshares; current and future business, economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values and overall slowdowns in economic growth should these events occur; inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in the portfolio or in the secondary market; effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board; geopolitical and domestic political developments including the imposition of tariffs and the ongoing war in Iran, that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, and increase the volatility of financial markets; changes in the level of nonperforming assets and charge offs and other credit quality measures, and their impact on the adequacy of our allowance for credit losses and our provision for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, and the success of construction projects that we finance; our ability to achieve loan growth and attract deposits in our market area, the impact of the cost of deposits and our ability to retain deposits; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies; challenges arising from attempts to expand into new geographic markets, products, or services; restraints on the ability of Community West Bank to pay dividends to us, which could limit our liquidity; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; changes in our management personnel or our inability to retain, motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; natural disasters, such as earthquakes, wildfires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; compliance with governmental and regulatory requirements, relating to banking, consumer protection, securities and tax matters; and our ability to the manage the foregoing.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward looking statements in this report. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Community West Bancshares -- page 14

COMMUNITY WEST BANCSHARES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

June 30,
March 31,June 30,

(In thousands, except share amounts)20262026
2025

ASSETS
Cash and due from banks$73,334 $37,925 $48,158 
Interest-earning deposits in other banks133,503 92,401 86,215 
Total cash and cash equivalents206,837 130,326 134,373 
Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $605,239 at June 30, 2026, $508,605 at March 31, 2026, and $523,679 at June 30, 2025
570,088 467,871 469,354 
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $353 at June 30, 2026, $407 at March 31, 2026, and $786 at June 30, 2025
276,061 281,078 291,405 
Equity securities, at fair value10,119 6,755 6,705 
Loans, less allowance for credit losses of $50,345 at June 30, 2026, $30,230 at March 31, 2026, and $28,722 at June 30, 2025
3,493,438 2,520,828 2,370,665 
Bank premises and equipment, net39,286 25,387 23,974 

Bank owned life insurance76,449 54,540 54,057 
Federal Home Loan Bank stock17,250 10,978 10,978 
Goodwill155,249 96,828 96,828 
Core deposit intangibles32,723 8,015 8,767 
Accrued interest receivable and other assets156,781 100,377 109,705 
Total assets$5,034,281 $3,702,983 $3,576,811 

LIABILITIES AND SHAREHOLDERS’ EQUITY 
Deposits:
Non-interest bearing$1,451,008 $1,047,641 $1,035,371 
Interest bearing2,668,454 2,093,952 1,959,550 
Total deposits4,119,462 3,141,593 2,994,921 
Borrowings175,000 34,000 86,000 

Senior debt and subordinated debentures75,291 69,176 69,962 
Accrued interest payable and other liabilities56,708 39,011 45,926 
Total liabilities4,426,461 3,283,780 3,196,809 
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: 27,131,078 at June 30, 2026, 19,185,275 at March 31, 2026, and 19,130,508 at June 30, 2025
395,699 210,858 209,268 
Retained earnings247,619 248,180 221,542 
Accumulated other comprehensive loss, net of tax(35,498)(39,835)(50,808)
Total shareholders’ equity607,820 419,203 380,002 
Total liabilities and shareholders’ equity$5,034,281 $3,702,983 $3,576,811 

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Community West Bancshares -- page 15

COMMUNITY WEST BANCSHARES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)    
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)20262026
2025
20262025

INTEREST INCOME:
Interest and fees on loans$58,630 $41,905 $39,537 $100,535 $77,962 
Interest on deposits in other banks1,099 850 1,054 1,949 2,110 

Interest and dividends on investment securities:
Taxable5,126 3,872 4,127 8,998 8,477 
Exempt from Federal income taxes1,264 1,265 1,307 2,530 2,614 
Total interest income66,119 47,892 46,025 114,012 91,163 
INTEREST EXPENSE:
Interest on deposits13,732 10,835 10,538 24,567 20,926 
Interest on borrowings539 212 1,281 751 2,954 
Interest on senior debt and subordinated debentures936 842 902 1,778 1,797 

Total interest expense15,207 11,889 12,721 27,096 25,677 
Net interest income before provision for credit losses50,912 36,003 33,304 86,916 65,486 
PROVISION FOR CREDIT LOSSES5,635 90 2,613 5,725 2,572 
Net interest income after provision for credit losses45,277 35,913 30,691 81,191 62,914 
NON-INTEREST INCOME: 
Service charges1,038 518 505 1,556 1,007 
Net realized losses on sales and calls of investment securities(5,899)— (15)(5,899)(15)
Other income2,891 2,270 1,874 5,160 3,983 
Total non-interest income(1,970)2,788 2,364 817 4,975 
NON-INTEREST EXPENSES:
Salaries and employee benefits16,318 12,764 12,260 29,081 25,219 
Occupancy and equipment3,803 2,855 2,794 6,658 5,621 

Other expense19,022 7,368 7,242 26,391 14,926 
Total non-interest expenses39,143 22,987 22,296 62,130 45,766 
Income before provision for income taxes4,164 15,714 10,759 19,878 22,123 
PROVISION FOR INCOME TAXES1,469 4,225 2,927 5,694 5,998 
Net income$2,695 $11,489 $7,832 $14,184 $16,125 

Net income per common share:
Basic earnings per common share$0.10 $0.60 $0.41 $0.61 $0.85 
Weighted average common shares used in basic computation27,051,374 19,060,177 18,987,217 23,077,851 18,960,670 
Diluted earnings per common share$0.10 $0.60 $0.41 $0.61 $0.85 
Weighted average common shares used in diluted computation27,108,920 19,137,134 19,042,750 23,145,947 19,028,425 
Cash dividends per common share$0.12 $0.12 $0.12 $0.24 $0.24 

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Community West Bancshares -- page 16

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Jun. 30,Mar. 31,Dec. 31,Sept. 30,Jun. 30,
For the three months ended2026
2026202520252025

(In thousands, except share and per share amounts)
Net interest income$50,912 $36,003 $35,749 $34,944 $33,304 
Provision for credit losses5,635 90 515 667 2,613 
Net interest income after provision for credit losses45,277 35,913 35,234 34,277 30,691 
Total non-interest income(1,970)2,788 2,547 2,966 2,364 
Total non-interest expense39,143 22,987 22,452 22,167 22,296 
Provision for income taxes1,469 4,225 4,159 4,203 2,927 
Net income$2,695 $11,489 $11,170 $10,873 $7,832 
Basic earnings per common share$0.10 $0.60 $0.59 $0.57 $0.41 
Weighted average common shares used in basic computation27,051,374 19,060,177 19,044,351 19,019,990 18,987,217 
Diluted earnings per common share$0.10 $0.60 $0.58 $0.57 $0.41 
Weighted average common shares used in diluted computation27,108,920 19,137,134 19,117,789 19,093,544 19,042,750 

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Community West Bancshares -- page 17

COMMUNITY WEST BANCSHARES
SELECTED RATIOS
(Unaudited)

Jun. 30,Mar. 31,Dec. 31,Sept. 30,Jun. 30,
As of and for the three months ended20262026202520252025
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans1.42 %1.19 %1.18 %1.21 %1.20 %
Non-performing assets to total assets0.56 %0.62 %0.19 %0.20 %0.20 %
Total non-performing assets$27,942 $22,997 $6,955 $7,072 $6,769 
Total nonaccrual loans$19,757 $22,997 $6,955 $7,072 $6,769 
Total substandard loans$110,240 $76,802 $78,796 $67,069 $59,073 
Total special mention loans$55,617 $49,500 $54,155 $24,925 $19,706 
Net loan charge-offs (recoveries) $5,498 $(37)$118 $(75)$13 
Net charge-offs (recoveries) to average loans (annualized)0.63 %(0.01)%0.02 %(0.01)%— %
Book value per share$22.40 $21.85 $21.37 $20.77 $19.86 
Tangible book value per share (1)$15.47 $16.39 $15.89 $15.27 $14.34 
Total equity$607,820 $419,203 $409,588 $397,576 $380,002 
Tangible common equity (1)$419,848 $314,360 $304,494 $292,232 $274,407 
Cost of total deposits1.31 %1.40 %1.39 %1.39 %1.43 %
Interest and dividends on investment securities exempt from Federal income taxes$1,264 $1,265 $1,275 $1,273 $1,307 
Net interest margin (calculated on a fully tax equivalent basis) (2)4.56 %4.30 %4.24 %4.20 %4.10 %
Return on average assets (3)0.22 %1.24 %1.23 %1.21 %0.88 %
Return on average equity (3)1.77 %10.99 %11.03 %11.25 %8.30 %
Loan to deposit ratio86.03 %81.15 %82.04 %79.66 %80.12 %
Efficiency ratio79.98 %59.26 %58.63 %58.47 %62.51 %
Tier 1 leverage - Bancorp9.79 %9.94 %9.80 %9.52 %9.48 %
Tier 1 leverage - Bank10.97 %11.43 %11.44 %11.24 %11.25 %
Common equity tier 1 - Banco