Community West Bancshares

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2026

Note 1. Basis of Presentation

Description of Business and Basis of Presentation

The interim unaudited condensed consolidated financial statements of Community West Bancshares and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These interim condensed consolidated financial statements include the accounts of Community West Bancshares and its wholly owned subsidiary Community West Bank (the “Bank”) (collectively, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2025 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at September 30, 2026, and the results of its operations and its cash flows for the three and nine month interim periods ended September 30, 2026 and 2025 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year.

Use of Estimates in the Preparation of Financial Statements

The preparation of these interim unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Segment and Significant Group Concentration of Credit Risk

The Company hasone reportable segment: banking operations. Loans and leases, investment securities, interest-bearing deposits and non-interest income provide the revenues of the banking operation. Loans and leases generate a majority of the Company’s interest and fee income. Interest income earned on investment securities and interest-bearing deposits are another source of revenue. Non-interest income is derived from deposit products offered to customers that generate fees and service charge income. Additional other sources of non-interest income include earnings from bank owned life insurance, merchant card services, and other investments. Interest expense, provisions for credit losses, salaries and employee benefits, and data processing provide the significant expenses in banking operations. These significant expenses are the same as those disclosed in the Company’s Consolidated Statements of Income and Consolidated Statements of Cash Flows.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM is provided with consolidated balance sheets, income statements, and net interest margin analyses in order to evaluate the revenue streams, significant expenses, and budget-to-actual results in assessing the Company’s segment and determining the allocation of resources. Additionally, the CODM reviews performance of various components of banking operations, such as asset mix, funding sources for assets, and overhead costs, in order to assess product pricing, profitability and evaluate return on assets. The CODM uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring budget-to-actual results are used in assessing performance and in establishing compensation.

Recently Issued or Adopted Accounting Pronouncements

In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”), amending disclosure or presentation requirements related to various subtopics in the FASB’s ASC. ASU 2023-06 was issued in response to the SEC’s initiative to update and simplify disclosure requirements. The SEC identified 27 disclosure requirements that were incremental to those in the ASC and referred them to the FASB for potential incorporation into U.S. GAAP. To avoid duplication, the SEC intended to eliminate those disclosure requirements from existing SEC regulations as the FASB incorporated them into the relevant ASC subtopics. ASU 2023-06 adds 14 of the 27 identified disclosure or presentation requirements to the ASC. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the ASC and will not become effective for any entities. ASU 2023-06 is not expected to have a significant impact on the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03 (updated in January 2025 to ASU No. 2025-01), Income Statement —Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments are intended to improve income statement expense disclosure requirements, primarily through enhanced disclosures about certain costs and expenses included in income statement expense captions. The amendments are effective for annual reporting periods beginning after December 15, 2026 (i.e., 2027 Form 10-K) and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

On November 12, 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. The new guidance makes significant changes to the accounting for certain acquired seasoned loans subject to the current expected credit loss model (CECL). The Board decided not to change the existing models for originated assets, purchased credit deteriorated assets (PCD) or other acquired assets. Under the ASU, the initial allowance for credit losses recorded upon the acquisition of loans in scope is recognized as an adjustment to the amortized cost basis of the loan–similar to the PCD model. For these loans, the “day-one” credit loss estimate does not impact earnings immediately but rather is amortized over time as an adjustment to interest income. Subsequent changes in the allowance for credit losses are reported in earnings within credit loss expense. The amendments apply prospectively and will be effective for fiscal periods beginning after December 15, 2026 (and interim periods within). Early adoption is permitted.

The Company adopted ASU 2025-08 effective January 1, 2026, on a prospective basis. Upon completion of the merger with United Security Bancshares ("USB") on April 1, 2026, the Company applied the provisions of ASU 2025-08 to account for loans acquired in the transaction. Under the new guidance, the initial allowance for credit losses for these acquired loans was recognized as an adjustment to the amortized cost basis of the loans at the acquisition date, rather than being recognized immediately as a charge to earnings. As a result, the Company recorded a Day 1 allowance for credit losses of $19.4 million for acquired loans at the Merger date, which was established as an adjustment to the loans' amortized cost basis across all loan portfolio segments.

In December 2025, the FASB issued ASU 2025-11, which clarifies interim disclosure requirements by providing a comprehensive list of disclosures that are required in interim periods. The amendments also introduce a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amended guidance is effective for the Company on January 1, 2028, with early adoption permitted. The amendments should be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Note 2. Business Combination

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 (the “Bank”), a wholly owned subsidiary of the Company, with the Bank continuing as the surviving entity.

Pursuant to the terms of the Merger, each outstanding share of USB capital stock was automatically converted as a result of the Merger into the right to receive 0.4520 shares of the Company’s common stock, with cash to be paid in lieu of fractional shares. Each outstanding share of the Company’s common stock remains outstanding and was unaffected by the Merger. As a result of the Merger, the Company issued approximately 7,922,108 shares of Company common stock.

The acquisition improves the Company’s footprint in Central California and diversifies the Company’s commercial banking business, adds additional revenue enhancing products, and creates operational efficiencies.

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 were 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 provides 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. Valuations subject to change include, but are not limited to, loans and leases, deposits, deferred tax items, and certain other assets and liabilities.

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):

The acquisition resulted in goodwill of $58.3 million, which is nondeductible for tax purposes, as this acquisition was a non-taxable transaction. Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired and reflects the related synergies from the combined operations. Revenues and earnings of the acquired company since the acquisition date have not been disclosed as it is not practicable as USB was merged into the Company and separate financial information is not readily available.

Purchased loans that exhibited more-than-insignificant deterioration of credit quality from origination were classified as purchased credit deteriorated (“PCD”) loans. For PCD loans, the initial estimate of expected credit losses is recognized through allowance for credit losses (“ACL”) with an offsetting gross-up adjustment to the acquired loan balances and the related purchase accounting mark. In addition, the Company adopted ASU 2025-08 effectively January 1, 2026. Accordingly, the initial ACL established on acquired loans included both PCD and non-PCD loans that qualified as purchased seasoned loans (“PSL”) under the guidance.

The following table provides a summary of the acquired PCD and PSL loans as of April 1, 2026:

Note 3. Investments

The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at September 30, 2026 and December 31, 2025 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrealized gains and losses (in thousands):

Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the three and nine months ended September 30, 2026 and 2025 are shown below (in thousands):

The amortized cost and estimated fair value of available-for-sale and held-to-maturity investment securities at September 30, 2026 by contractual maturity is shown below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

At September 30, 2026 there were no issuers of private label mortgage securities in which the Company had holdings of securities in amounts greater than 10% of shareholders’ equity.

The following table summarizes the Company’s available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

As of September 30, 2026, the Company had a total of 165 available-for-sale debt securities in a gross unrealized loss position with no credit impairment, consisting of 1 U.S. Treasury security,54 obligations of states and political subdivisions,76 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 34 private label mortgage and asset backed securities.

Allowance for Credit Losses on Available-for-Sale Debt Securities

Each reporting period, the Company assesses each available-for-sale debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale securities at September 30, 2026. As of that date, the Company considers the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. As of September 30, 2026, the Company determined that it is not more likely than not that there is an intention to sell securities or that the Company would be required to sell securities.

The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate increases and liquidity and were mainly comprised of the following:

•Obligations of States and Political Subdivisions: The unrealized losses on investments in obligations of states and political subdivisions are caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment.

•U.S. Treasury and Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations: The unrealized losses on the Company’s investments in U.S. treasuries and government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment.

•Private Label Mortgage and Asset Backed Securities: The Company has invested exclusively in AA and AAA tranches of various private label mortgage and asset backed securities. Each purchase is subject to a credit and structure review prior to their purchase. Ratings are reviewed on a quarterly basis in addition to other metrics provided through third-party services. Following review of the financial metrics and ratings, management concluded that the unrealized loss position of the private label mortgage and asset backed securities related exclusively to the fluctuation in market conditions and were not reflective of any credit concerns with the tranches comprising the Company’s investments.

•Corporate Debt Securities: Ratings are reviewed on a quarterly basis in addition to other metrics provided through third-party services. Following review of the financial metrics and ratings, management concluded that the unrealized loss position of the corporate debt securities related exclusively to the fluctuation in market interest rates and were not reflective of any credit concerns with the Company’s investments.

Allowance for Credit Losses on Held-to-Maturity Debt Securities

The Company separately evaluates its held-to-maturity debt securities for any credit losses based on probability of default and loss given default utilizing historical industry data based on investment category, while also considering reasonable and supportable forecasts. The probability of default and loss given default are incorporated into the present value of expected cash flows and compared against amortized cost.

The allowance for credit losses on held-to-maturity securities was $254,000 at September 30, 2026. The allowance for credit losses on held-to-maturity securities is driven by economic scenarios, estimated probabilities of default and loss given default. Economic scenarios are updated quarterly.

The following table shows the summary of activities for the allowance for credit losses related to held-to-maturity debt securities for the three and nine months ended September 30, 2026 and 2025 (in thousands):

During the three month period ended September 30, 2026, the credit to credit losses for held-to-maturity securities was primarily driven by the passage of time. Management believes that the allowance for credit losses for held-to-maturity securities at September 30, 2026 appropriately reflected expected credit losses at that date.

The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. For non-rated investment securities, management receives quarterly performance updates to monitor for any credit concerns. There were no held-to-maturity securities on nonaccrual or past due over 89 days and still on accrual. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator. U.S. Government sponsored agencies are not included in the below tables as credit ratings are not applicable.

Note 4. Loans and Allowance for Credit Losses on Loans

The majority of the disclosures in this footnote are prepared at the class level, which is equivalent to the call report or call code classification. The roll forward of the allowance for credit losses is presented at the portfolio segment level. Accrued interest receivable on loans of $17,014,000 and $11,625,000 at September 30, 2026 and December 31, 2025 respectively is not included in the loan tables below and is included in other assets on the Company’s consolidated balance sheets. Outstanding loans are summarized by class as follows:

At September 30, 2026 and December 31, 2025, loans originated under Small Business Administration (SBA) programs totaling $27,415,000 and $21,161,000, respectively, were included in the real estate and commercial categories, of which, $20,583,000 or 75% and $16,044,000 or 76%, respectively, were secured by government guarantees.

Allowance for Credit Losses on Loans

The measurement of the allowance for credit losses on collectively evaluated loans is based on modeled expectations of lifetime expected credit losses utilizing national and local peer group historical losses, weighting of economic scenarios, and other relevant factors. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of credit losses within the portfolio. The Company uses a probability-weighted, multiple scenario forecast approach. These scenarios may consist of a base forecast representing the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions.

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for credit losses on an individual loan basis.

The following table shows the summary of activities for the allowance for credit losses for the three months ended September 30, 2026 and 2025 by portfolio segment (in thousands):

(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $578 includes a $(99) credit for held-to-maturity securities and a $89 provision for unfunded loan commitments.

(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $667 includes a $(62) credit for held-to-maturity securities and a $(64) credit for unfunded loan commitments.

During the third quarter of 2026, the Company recorded net loan charge-offs of $1,377,000 compared to net recoveries of $75,000 for the same period in 2025. The primary reason for loan charge-offs during the quarter was for charge-offs within an acquired student loan portfolio from the Merger, in which the Company recorded a Day 1 allowance of $8.4 million in anticipation of future charge-offs in this portfolio segment. The net charge-off ratio reflects annualized net charge-offs to average loans of 0.15% for the quarter ended September 30, 2026, compared to annualized net recoveries of 0.01% for the quarter ended September 30, 2025. The Company recorded a provision for credit losses of $588,000 for the three months ended September 30, 2026. The provision for credit losses for the quarter ended September 30, 2026 was primarily in the Consumer segment, reflecting a provision for credit losses of $1,445,000, driven primarily by higher than anticipated charge-offs of $1,259,000 related to the acquired student loan portfolio from the Merger; the increase in the provision was partially offset by a credit to the provision for credit losses in both the Commercial and Commercial Real Estate segments due to improved credit quality metrics within those portfolios.

The following table shows the summary of activities for the allowance for credit losses for the nine months ended September 30, 2026 and 2025 by portfolio segment (in thousands):

(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $6,303 includes a $(186) credit for held-to-maturity securities and a $520 provision for unfunded loan commitments.

(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $3,239 includes a $(432) credit for held-to-maturity securities and a $70 provision for unfunded loan commitments.

During the nine month period ended September 30, 2026, the increase in the allowance for credit losses was primarily driven by the acquisition of USB, which contributed $19.4 million in Day 1 allowance balances across all portfolio segments. The provision for credit losses during the nine month period ended September 30, 2026 was primarily driven by an update of the Company’s peer group based on its larger asset size following the completion of the Merger, organic loan growth during the year-to-date period, and higher than anticipated student loan charge-offs. The allowance for credit losses as a percentage of total loans was 1.36% as of September 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 September 30, 2026.

The following tables present the composition of nonaccrual loans as of September 30, 2026 and December 31, 2025 respectively (in thousands).

The following tables present the amortized cost basis of collateral dependent loans by class of loans and by collateral type as of the dates indicated as of September 30, 2026 and December 31, 2025 (in thousands).

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Loan ratings are reviewed as part of the Company's normal loan monitoring process, but, at a minimum, updated on an annual basis. Under the Company’s risk rating system, the Company rates loans with potential problems as “Special Mention,” “Substandard,” “Doubtful,” and “Loss”. The following is a description of the characteristics of loan ratings.

Special Mention- A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected.

Doubtful - A loan classified Doubtful has all the weaknesses inherent in one classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans.

Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible.

Loans not meeting the criteria above are considered to be pass or watch rated loans.

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the gross charge-offs recognized during the nine months ended September 30, 2026 (in thousands):

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the charge-offs recognized during the twelve months ended December 31, 2025 (in thousands):

The following table shows an aging analysis of the loan portfolio by class at September 30, 2026 (in thousands):

The following table shows an aging analysis of the loan portfolio by class at December 31, 2025 (in thousands):

Foregone interest on nonaccrual loans was $1,024,000 and $1,794,000 for the three and nine months ended September 30, 2026 compared to $95,000 and $294,000 for the three and nine months ended September 30, 2025. Interest income recognized on non-accrual loans for the nine months ended September 30, 2026 and 2025 was $24,000 and $40,000, respectively.

Occasionally, the Company modifies loans to borrowers in financial distress by providing reductions of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. There were no loan modifications granted to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2026 and 2025.

Student Loans

Included in installment loans are principal balances of $23,042,000 and $0 for student loans at September 30, 2026, and December 31, 2025, respectively, made to medical and pharmacy school students. The student loan portfolio was acquired on April 1, 2026 through the Merger. Accrued interest on student loans totaled $1,932,000 and $0 at September 30, 2026, and December 31, 2025, respectively. Upon graduation the loan is automatically placed in a grace period ofsix months. This may be extended up to 48 months for graduates enrolling in internship, medical residency, or fellowship. As approved, the student may receive additional deferment for hardship or administrative reasons in the form of forbearance for a maximum of 36 months throughout the life of the loan. USB had not originated or purchased student loans since 2019.

As of September 30, 2026 and December 31, 2025, the allowance for credit losses for the student loan portfolio was $6,704,000 and $0, respectively. There wereno student loans in the substandard category at September 30, 2026 and December 31, 2025.

The following tables summarize the credit quality indicators for outstanding student loans as of September 30, 2026 and December 31, 2025:

School - The time in which the borrower is still actively in school at least half time. No payments are expected during this stage, though the borrower may begin immediate payments.

Grace - Asix month period of time granted to the borrower immediately upon graduation, or withdrawal from school. Interest continues to accrue. Upon completion of the six month grace period the loan is transferred to repayment status. This status may also represent a borrower activated to military duty during their time in school. The borrower must return to at least half-time status withinsix-months of the active duty end-date in order to return to in-school status.

Repayment - The time in which the borrower is no longer actively in school at least half time, and has not received an approved grace, deferment, or forbearance. Regular payment is expected from these borrowers under an allotted payment plan.

Deferment - May be granted up to 48 months for borrowers who have begun the repayment period on their loans but are (1) actively enrolled in an eligible school at least half time, or (2) are actively enrolled in an approved and verifiable medical residency, internship, or fellowship program.

Forbearance - The period of time during which the borrower may postpone making principal and interest payments due to hardship or administrative reasons. Interest continues to accrue on loans during periods of authorized forbearance. If the borrower is delinquent at the time the forbearance is granted, accrued and unpaid interest from the date of delinquency, if any, will be capitalized at the end of the forbearance period. The loan-term will not change and payments may be increased to allow the loan to pay off in the required time frame. A forbearance that results in an insignificant payment delay is not considered a concessionary change in terms, provided the borrower affirms the obligation. Forbearance is not an uncommon status designation; this designation is standard industry practice, and is consistent with a student’s migration to the medical profession. However, additional risk is associated with this designation.

Student Loan Aging

Student loans are generally charged off at the end of the month during which an account becomes 90 days contractually past due. Accrued but unpaid interest related to charged off student loans is reversed and charged against interest income. For the three months ended September 30, 2026, $40,000 in accrued interest receivable was reversed due to charge-offs of $1.3 million within the student loan portfolio. For the nine months ended September 30, 2026, $127,000 in accrued interest receivable was reversed due to charge-offs of $3.4 million within the student loan portfolio.

The following tables summarize the student loan aging for loans in repayment and forbearance as of September 30, 2026 and December 31, 2025:

Note 5. Other Real Estate Owned

On April 1, 2026 as part of the Merger, the Company acquired a wholly-owned subsidiary of United Security Bancshares, York Monterey Properties, Inc. (“Properties”), organized as a California corporation. York Monterey Properties, Inc. is included within the consolidated financial statements of the Company, with $8.2 million of the total investment recognized within the balance of OREO within Other Assets on the consolidated balance sheets. The property is comprised of 14 lots in Monterey, California.

Note 6. Goodwill and Intangible Assets

Goodwill is the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and the liabilities assumed as of the acquisition date. Core deposit intangibles represent the estimated future benefit of deposits related to an acquisition, are recorded separately as an asset and are amortized over an estimated useful life of 10 years. Goodwill and other intangible assets are evaluated for impairment annually or whenever events or circumstances indicate the carrying amount may be impaired.

The following tables summarize the changes in the Company’s goodwill and core deposit intangible assets for the three and nine months ended September 30, 2026 and 2025 (in thousands):

The following table presents the estimated amortization expense for core deposit intangible assets remaining at September 30, 2026 (in thousands):

Note 7. Deposits

The composition of the deposits at September 30, 2026 and December 31, 2025 is summarized in the table below (in thousands):

As of September 30, 2026 and December 31, 2025, uninsured deposits totaled $1,757,493,000 and $1,185,118,000, respectively.

Aggregate annual maturities of time deposits are as follows (in thousands):

Interest expense recognized on interest-bearing deposits consisted of the following (in thousands):

Note 8. Borrowing Arrangements

Lines of Credit - The Company has unsecured lines of credit available with its correspondent banks which, in the aggregate, amounted to $150,000,000 at September 30, 2026 and $110,000,000 at December 31, 2025, respectively, at interest rates which vary with market conditions. As of September 30, 2026 and December 31, 2025, the Company hadno advances outstanding with correspondent banks.

Federal Home Loan Bank Advances - As of September 30, 2026, the Company had an overnight borrowing for $21,000,000 with an interest rate of 4.42% compared to $73,000,000 with an interest rate of 4.02% at December 31, 2025. As of September 30, 2026, the Company hadtwo short-term advances outstanding totaling $20,000,000 with a weighted average interest rate of 3.91% compared to no short-term advances as of December 31, 2025.

Approximately $1,743,647,000 in loans were pledged under a blanket lien as collateral to the FHLB for the Company’s remaining borrowing capacity of $998,199,000 as of September 30, 2026. FHLB advances are also secured by investment securities with a borrowing capacity totaling $206,850,000 and $156,669,000 and market values, as assigned by FHLB, totaling $241,909,000 and $198,374,000 at September 30, 2026 and December 31, 2025, respectively. The Company’s credit limit varies according to the amount and composition of the investment and loan portfolios pledged as collateral.

Federal Reserve Line of Credit - The Company has a line of credit through the discount window in the amount of $2,814,000 and $3,411,000 with the Federal Reserve Bank of San Francisco (FRB) at September 30, 2026 and December 31, 2025, respectively, which bears interest at the prevailing discount rate collateralized by investment securities with amortized costs totaling $3,483,000 and $3,910,000 and market values totaling $3,005,000 and $3,536,000, respectively.

The following table reflects the Company’s credit lines, balances outstanding, and pledged collateral at September 30, 2026 and December 31, 2025:

Note 9. Senior Debt & Subordinated Debentures

The following table summarizes the Company’s long-term debt:

Subordinated Debentures

On November 12, 2021, the Company completed a private placement of $35,000,000 aggregate principal amount of its fixed-to-floating rate subordinated notes (“Subordinated Debt”) due December 1, 2031. The Subordinated Debt initially bears a fixed interest rate of 3.13% per year. Commencing on December 1, 2026, the interest rate on the Subordinated Debt will reset each quarter at a floating interest rate equal to the then-current three month term SOFR plus 2.10%. The Company may at its option redeem in whole or in part the Subordinated Debt on or after November 12, 2026 without a premium. The Subordinated Debt is treated as Tier 2 Capital for regulatory purposes.

Interest expense recognized by the Company for the Subordinated Debentures for both three months ended September 30, 2026 and 2025 was $310,000. Interest expense recognized by the Company for the Subordinated Debentures for the nine months ended September 30, 2026 and 2025 was $929,000.

Senior Debt

On September 15, 2022, the Company entered into a $30,000,000 loan agreement with Bell Bank. Initially, payments of interest only are payable in 12 quarterly payments commencing December 31, 2022. Commencing December 31, 2025, 27 equal quarterly principal and interest payments are payable based on the outstanding balance of the loan on August 30, 2025 and an amortization of 48 quarters. A final payment of outstanding principal and accrued interest is due at maturity on September 30, 2032. Variable interest is payable at the Prime Rate (published by the Wall Street Journal) less 50 basis points. The loan is secured by the assets of the Company and a pledge of the outstanding common stock of Community West Bank, the Company’s banking subsidiary. The Company may prepay the loan without penalty with one exception. The loan contains customary representations, covenants, and events of default.

Interest expense recognized by the Company for the Senior Debt for the three and nine months ended September 30, 2026 was $458,000 and $1,379,000 compared to $517,000 and $1,536,000 for the three and nine months ended September 30, 2025.

Junior Subordinated Debentures

Service 1st Capital Trust I is a Delaware business trust formed by Service 1st. The Company succeeded to all of the rights and obligations of Service 1st in connection with the merger with Service 1st as of November 12, 2008. The Trust was formed on August 17, 2006 for the sole purpose of issuing trust preferred securities fully and unconditionally guaranteed by Service 1st. Under applicable regulatory guidance, the amount of trust preferred securities that is eligible as Tier 1 capital is limited to 25% of the Company’s Tier 1 capital on a pro forma basis. At September 30, 2026, all of the trust preferred securities that have been issued qualify as Tier 1 capital. The trust preferred securities mature on October 7, 2036, are redeemable at the Company’s option, and require quarterly distributions by the Trust to the holder of the trust preferred securities at a variable interest rate which will adjust quarterly to equal the three month SOFR plus 1.60%.

The Trust used the proceeds from the sale of the trust preferred securities to purchase approximately $5,155,000 in aggregate principal amount of Service 1st’s junior subordinated notes (the Notes). The Notes bear interest at the same variable interest rate during the same quarterly periods as the trust preferred securities. The Notes are redeemable by the Company on any January 7, April 7, July 7, or October 7 or at any time within 90 days following the occurrence of certain events, such as: (i) a change in the regulatory capital treatment of the Notes (ii) in the event the Trust is deemed an investment company or (iii) upon the occurrence of certain adverse tax events. In each such case, the Company may redeem the Notes for their aggregate principal amount, plus any accrued but unpaid interest.

The Notes may be declared immediately due and payable at the election of the trustee or holders of 25% of the aggregate principal amount of outstanding Notes in the event that the Company defaults in the payment of any interest following the nonpayment of any such interest for 20 or more consecutive quarterly periods.

Holders of the trust preferred securities are entitled to a cumulative cash distribution on the liquidation amount of $1,000 per security. For each January 7, April 7, July 7 or October 7 of each year, the rate will be adjusted to equal the three month SOFR plus 1.60%. As of September 30, 2026, the rate was 5.61%.

As part of the Merger on April 1, 2026, the Company acquired a wholly-owned special purpose entity, USB Capital Trust II, for the purpose of issuing Trust Preferred Securities. USB Capital Trust II is a Variable Interest Entity and a deconsolidated entity pursuant to current accounting standards related to variable interest entities. These securities have athirty-year maturity and bear a floating rate of interest (repricing quarterly) of 1.29% over the forward 3-month SOFR rate. Interest is payable quarterly.

The Company has a contractual principal balance of $6,464,000 at September 30, 2026. The Company may redeem the junior subordinated debentures at any time at par.

Interest expense recognized by the Company for the Junior Subordinated Debentures for the three and nine months ended September 30, 2026 was $170,000 and $408,000 compared to interest expense recognized by the Company for the Junior Subordinated debentures for the three and nine months ended September 30, 2025 of $81,000 and $240,000.