Bullish indicating open at $55-$60, IPO prices at $37
FRESNO - Community West Bancshares (NASDAQ:CWBC), a regional bank with a market capitalization of $388 million, reported unaudited consolidated net income of $7.83 million, or $0.41 per diluted share, for the second quarter ended June 30, 2025, the company said in a press release. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value.
The results mark a significant turnaround from the same period last year when the bank holding company posted a net loss of $6.29 million, or $0.33 per diluted share. The company’s impressive recovery aligns with InvestingPro data showing strong revenue growth of 38.8% over the last twelve months.
The parent company of Community West Bank also declared a quarterly cash dividend of $0.12 per common share, payable on August 15, 2025, to shareholders of record as of August 1, 2025. The current dividend yield stands at 2.38%, and notably, the company has maintained dividend payments for 14 consecutive years.
Additionally, the board of directors approved a share repurchase program for up to 3% of the company’s outstanding common stock, representing approximately 573,915 shares based on the total number of outstanding shares as of July 16, 2025. The repurchase program will commence on July 22, 2025.
According to the statement, the company will conduct repurchases through open-market transactions via brokers or through privately negotiated transactions. All repurchases will be made at management’s discretion, subject to market conditions and regulatory requirements.
Community West Bancshares, established in 1979, operates full-service banking centers throughout Central California with departments supporting various services including Commercial Lending, Agribusiness, SBA, Residential Construction and Mortgage, Manufactured Housing, Private Banking and Cash Management.
In other recent news, Community West Bancshares reported its first-quarter earnings for 2025, with an earnings per share (EPS) of $0.44. After adjustments for merger charges and other nonrecurring expenses, the core EPS was calculated at $0.46, which was slightly below Piper Sandler’s estimate but exceeded the consensus from other analysts. The company has appointed Baker Tilly US, LLP as its new independent auditor following the merger of its previous auditor, Moss Adams LLP, with Baker Tilly. DA Davidson adjusted its price target for Community West Bancshares, lowering it to $22 while maintaining a Buy rating, citing stable revenue and a solid net interest margin. Piper Sandler also revised its price target to $19, maintaining an Overweight rating and noting the company’s mixed financial results. Keefe, Bruyette & Woods followed suit, lowering their target to $19 and keeping a Market Perform rating, highlighting the company’s focus on expense control and positive operating leverage. Raymond James maintained a Market Perform rating, acknowledging the bank’s strong core deposit base and loan growth. Community West Bancshares is also involved in merger and acquisition discussions, which are expected to be a priority for capital deployment.
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