Community West Bancshares
For the period ended Apr 21, 2025. Filed Apr 21, 2025.
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Apr 21, 2025 · Filed Apr 21, 2025
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Contents
EX-99.1 · Credit Quality
Credit Quality
During the first quarter of 2025, the Company recorded net loan recoveries of $125,000 compared to $525,000 in net charge-offs for the same period in 2024. The net charge-off ratio reflects annualized net recoveries to average loans of (0.02)% for the quarter ended March 31, 2025, compared to annualized net charge-offs of 0.16% for the quarter ended March 31, 2024. During the quarter ended March 31, 2025, the Company recorded a provision of $168,000 for credit losses on loans, compared to a $530,000 provision for loan losses for the quarter ended March 31, 2024. In addition to the provision of credit losses on loans for the quarter ended March 31, 2025, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $182,000 as compared to a credit to the provision of $157,000 in the prior year quarter. The Company recorded a credit to the provision for unfunded loan commitments totaling $27,000 for the quarter ended March 31, 2025 compared to a provision of $202,000 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) | March 31, 2025 | % of Total | December 31, 2024 | % of Total | March 31, 2024 | % of Total |
|---|---|---|---|---|---|---|
| Pass | $2,282,083 | 97.3% | $2,272,543 | 97.4% | $1,262,046 | 98.1% |
| Special mention | 17,209 | 0.7% | 17,384 | 0.7% | 5,595 | 0.4% |
| Substandard | 47,605 | 2.0% | 44,294 | 1.9% | 18,968 | 1.6% |
| Doubtful | — | — | — | |||
| Total | $2,346,897 | 100.0% | $2,334,221 | 100.0% | $1,286,609 | 100.0% |
At March 31, 2025, the allowance for credit losses for loans was $26,095,000, compared to $25,803,000 at December 31, 2024, a net increase of $292,000 reflecting a provision for loan losses of $168,000 and net recoveries during the period. The allowance for credit losses as a percentage of total loans was 1.11% as of March 31, 2025 and December 31, 2024. The Company believes the allowance for credit losses is adequate to provide for expected credit losses within the loan portfolio at March 31, 2025.
Community West Bancshares -- page 9
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