Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $433.98M
• Dividend Yield: 2.12%
• Average Volume (3M): 50.84K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.75
• Revenue Growth: 32.03%
• EPS Growth: 170.90%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 19,160,402
• 10 Day Avg. Volume: 49,610
• 30 Day Avg. Volume: 50,841
• PEG Ratio: -0.54
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 19.27
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $25.50
• Price Target Upside: 12.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $26.00 ▲(14.79% Upside)

Community West Bancshares has a solid financial foundation with strong revenue growth and profitability. The strategic merger is a major positive, expected to enhance market presence and operational scale. Technical indicators support a positive trend, and the valuation is reasonable, making it an attractive investment.

Positive Factors

Strategic Merger

The merger is expected to enhance market presence and operational scale, providing a more robust banking franchise in Central California.

Revenue Growth

Strong revenue growth indicates expanding market reach and effective business strategies, supporting long-term financial health.

Leadership Continuity

Leadership continuity ensures stability and leverages existing management experience, aiding strategic execution post-merger.

Negative Factors

Operational Efficiency Challenges

Volatility in operational margins suggests potential inefficiencies that could impact profitability and require management focus.

Cash Conversion Issues

Low cash conversion indicates challenges in translating income into cash, potentially affecting liquidity and investment capacity.

Leadership Transition

Leadership changes can introduce uncertainty and require adjustments, impacting strategic continuity and organizational focus.

Community West Bancshares Business Overview & Revenue Model

Company Description

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposit; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. It operates through a network of seven branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard, and Paso Robles. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

How the Company Makes Money

Community West Bancshares generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from various banking fees and services. The key revenue streams include interest earned on commercial and residential loans, which constitute a significant portion of the bank's income, and fees from deposit accounts, ATM services, and transaction services. Additionally, CWBC may earn revenue from mortgage origination and servicing fees. The company's financial performance is also supported by its strategic partnerships with local businesses and community organizations, which enhance its customer base and drive loan growth.

Community West Bancshares Financial Statement Overview

Summary

Community West Bancshares shows strong revenue growth and improved profitability with a net profit margin of 14.05%. The reduction in leverage and enhanced return on equity are positive, though operational efficiency and cash conversion need improvement.

Income Statement

Community West Bancshares has demonstrated strong revenue growth with a TTM increase of 1.92% and consistent gross profit margins above 60%. The net profit margin has improved significantly to 14.05% in the TTM, indicating enhanced profitability. However, the EBIT and EBITDA margins have shown some volatility, suggesting potential operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.41 in the TTM, reflecting a reduction in leverage. Return on equity has increased to 7.15%, indicating better utilization of equity. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to leveraging assets.

Cash Flow

Free cash flow has grown by 19.24% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is low, indicating potential challenges in converting income to cash. The free cash flow to net income ratio is healthy at 84.25%, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.93M	164.20M	108.10M	86.66M	81.45M	78.05M
Gross Profit	130.44M	103.06M	87.80M	82.24M	84.58M	73.18M
EBITDA	37.42M	13.20M	34.73M	35.90M	47.02M	32.76M
Net Income	26.41M	7.67M	25.54M	26.64M	28.40M	20.35M
Balance Sheet
Total Assets	3.58B	3.52B	2.43B	2.42B	2.45B	2.00B
Cash, Cash Equivalents and Short-Term Investments	603.73M	423.81M	461.75M	680.00M	1.27B	780.37M
Total Debt	155.96M	203.33M	149.74M	115.60M	39.45M	14.04M
Total Liabilities	3.20B	3.16B	2.23B	2.25B	2.20B	1.76B
Stockholders Equity	380.00M	362.69M	207.06M	174.66M	247.84M	245.02M
Cash Flow
Free Cash Flow	29.06M	17.16M	17.72M	23.31M	41.81M	15.51M
Operating Cash Flow	34.49M	22.20M	27.53M	23.67M	42.85M	16.99M
Investing Cash Flow	-55.42M	64.47M	24.52M	-197.07M	-365.14M	-372.61M
Financing Cash Flow	45.64M	-20.00M	-29.49M	41.10M	415.47M	373.32M

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWBC, the sentiment is Positive. The current price of 22.65 is below the 20-day moving average (MA) of 22.98, above the 50-day MA of 22.39, and above the 200-day MA of 19.97, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 59.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWBC.

Community West Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBT	80 Outperform	$390.18M	9.57	15.69%	2.00%	8.90%	18.23%
CWBC	73 Outperform	$433.98M	12.56	8.91%	2.12%	32.03%	170.90%
BMRC	73 Outperform	$425.70M	42.05	2.24%	3.76%	23.93%	―
FRBA	70 Outperform	$421.00M	10.01	10.03%	1.41%	9.76%	4.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSBI	66 Neutral	$469.40M	-3.66	-17.52%	5.87%	12.76%	-401.62%
CIVB	64 Neutral	$435.89M	8.30	9.73%	2.96%	3.49%	33.86%

Community West Bancshares Corporate Events

Community West Bancshares Details Leadership Roles Post-Merger

On December 17, 2025, Community West Bancshares and United Security Bancshares announced that, in connection with their previously disclosed all-stock merger agreement, United Security Bancshares directors Jagroop “Jay” Gill and Dora Westerlund will join the Community West Bancshares board upon completion of the merger, subject to corporate governance requirements. Gill, currently the largest shareholder and vice chairman of United Security Bancshares, is expected to become vice chairman of Community West Bancshares’ board, a move that aims to carry leadership continuity and regional expertise into the combined institution as it pursues a more robust and visible Central California banking franchise.

The most recent analyst rating on (CWBC) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Community West Bancshares Announces Merger Agreement

On December 16, 2025, Community West Bancshares and United Security Bancshares announced their merger agreement, valued at approximately $191.9 million. This strategic merger aims to form a combined entity with $5 billion in total assets, enhancing their market reach across Central California. The deal will transfer United Security Bank’s 13 branches to Community West Bank, and two United Security Bancshares board members, including its chairman and CEO Dennis Woods, will take leadership roles in the combined entity. This move is expected to strengthen their banking operations, expand client services, and create value for shareholders through greater lending capacity, economies of scale, and stronger community impact.

The most recent analyst rating on (CWBC) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Community West Bancshares Announces Leadership Transition

On November 7, 2025, Martin E. Plourd announced his retirement as President of Community West Bancshares, effective March 31, 2026, after a 45-year career in banking. He will continue to serve as a director on the boards of both Community West Bancshares and Community West Bank. James J. Kim, currently CEO of the company and CEO and President of the bank, will assume the roles of CEO and President of both entities starting April 1, 2026. This leadership transition is expected to maintain stability and continuity within the company, leveraging Kim’s existing leadership experience.

The most recent analyst rating on (CWBC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Community West Bancshares Reports Q3 2025 Income Surge

Community West Bancshares reported a significant increase in net income for the third quarter of 2025, with earnings reaching $10.87 million, compared to $3.39 million in the same period in 2024. The company declared a $0.12 per share cash dividend, reflecting strong financial performance and a commitment to delivering long-term value to shareholders.

The most recent analyst rating on (CWBC) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.