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Community West Bancshares (CWBC)
NASDAQ:CWBC
US Market
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Community West Bancshares (CWBC) AI Stock Analysis

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CWBC

Community West Bancshares

(NASDAQ:CWBC)

Rating:76Outperform
Price Target:
$23.00
▲(12.03%Upside)
Community West Bancshares scores well due to strong financial and technical performance, supported by positive corporate events like dividends and share buybacks. However, the high P/E ratio suggests valuation concerns, slightly offsetting the positive outlook.

Community West Bancshares (CWBC) vs. SPDR S&P 500 ETF (SPY)

Community West Bancshares Business Overview & Revenue Model

Company DescriptionCommunity West Bancshares (CWBC) is a bank holding company based in Goleta, California. It operates primarily through its wholly-owned subsidiary, Community West Bank, which provides a full range of commercial and retail banking services. The bank focuses on serving small to mid-sized businesses and individuals within its local community. Core services include commercial lending, agricultural loans, SBA lending, and various deposit products.
How the Company Makes MoneyCommunity West Bancshares makes money primarily through interest income and non-interest income. Interest income is generated from loans extended to businesses and individuals, including commercial, agricultural, real estate, and consumer loans. The bank earns money from the difference between the interest it pays on deposits and the interest it charges on loans. Non-interest income comes from fees and service charges related to deposit accounts, loan servicing fees, and other ancillary banking services. Additionally, the bank may engage in investments to generate additional income. Its earnings are influenced by factors such as interest rate fluctuations, loan demand, and the economic conditions of the regions it serves.

Community West Bancshares Financial Statement Overview

Summary
Community West Bancshares has demonstrated strong financial performance with a significant revenue growth of 12.3% and a solid net profit margin of 6.7%. The balance sheet is stable with moderate leverage, and cash flow management is effective, though return on equity could be improved.
Income Statement
85
Very Positive
Community West Bancshares has shown strong revenue growth with a current TTM revenue increase of 12.3% compared to the previous year. The gross profit margin stands at 63.7%, indicating efficient cost management. Net profit margin is solid at 6.7%, reflecting good profitability. Both EBIT and EBITDA margins are healthy, demonstrating strong operational performance.
Balance Sheet
78
Positive
The balance sheet is stable with an equity ratio of 10.5%, which is reasonable for a regional bank. The debt-to-equity ratio is 0.55, indicating moderate leverage. Return on equity is at 3.3%, which is relatively low, suggesting room for improvement in generating returns for shareholders.
Cash Flow
72
Positive
Cash flow performance is robust with operating cash flow to net income ratio at 2.38, indicating strong cash generation relative to earnings. Free cash flow growth is impressive at 42%, highlighting effective cash management. However, the free cash flow to net income ratio of 1.99 suggests some variability in cash conversion efficiency.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue164.20M108.10M86.66M81.45M78.05M
Gross Profit103.06M87.80M82.24M84.58M73.18M
EBITDA13.20M34.73M35.90M47.02M32.76M
Net Income7.67M25.54M26.64M28.40M20.35M
Balance Sheet
Total Assets3.52B2.43B2.42B2.45B2.00B
Cash, Cash Equivalents and Short-Term Investments423.81M461.75M680.00M1.27B780.37M
Total Debt203.33M149.74M115.60M39.45M14.04M
Total Liabilities3.16B2.23B2.25B2.20B1.76B
Stockholders Equity362.69M207.06M174.66M247.84M245.02M
Cash Flow
Free Cash Flow17.16M17.72M23.31M41.81M15.51M
Operating Cash Flow22.20M27.53M23.67M42.85M16.99M
Investing Cash Flow64.47M24.52M-197.07M-365.14M-372.61M
Financing Cash Flow-20.00M-29.49M41.10M415.47M373.32M

Community West Bancshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.53
Price Trends
50DMA
19.14
Positive
100DMA
18.38
Positive
200DMA
18.91
Positive
Market Momentum
MACD
0.50
Positive
RSI
56.74
Neutral
STOCH
68.21
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 20.53 is below the 20-day moving average (MA) of 20.54, above the 50-day MA of 19.14, and above the 200-day MA of 18.91, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWBC.

Community West Bancshares Risk Analysis

Community West Bancshares disclosed 46 risk factors in its most recent earnings report. Community West Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Community West Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$388.33M10.219.40%1.59%11.18%24.61%
79
Outperform
$353.68M11.4214.76%1.85%6.08%-23.52%
76
Outperform
$391.33M15.197.23%2.34%48.19%36.25%
73
Outperform
$393.20M9.4510.02%3.16%6.20%18.80%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
66
Neutral
$389.35M-1.47%4.16%-15.92%-147.11%
62
Neutral
$387.27M13.655.03%6.89%14.75%-48.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CWBC
Community West Bancshares
20.53
0.70
3.53%
BMRC
Bank Of Marin Bancorp
24.01
2.65
12.41%
CIVB
Civista Bancshares
20.90
2.56
13.96%
MSBI
Midland States Bancrop
18.00
-4.63
-20.46%
FRBA
First Bank
15.10
0.04
0.27%
OBT
Orange County Bancorp
26.99
-3.45
-11.33%

Community West Bancshares Corporate Events

Stock BuybackDividendsFinancial Disclosures
Community West Bancshares Announces Cash Dividend and Buyback
Positive
Jul 17, 2025

On July 16, 2025, Community West Bancshares announced a $0.12 per share cash dividend payable on August 15, 2025, and the initiation of a share repurchase program for up to 3% of its outstanding common stock, beginning on July 22, 2025. The company reported a net income of $7.8 million for the second quarter of 2025, a decrease from the previous quarter due to increased provisions for loan losses. Despite economic uncertainties, the company remains well-positioned with strong capital and liquidity, reflecting positive operational momentum and stability.

The most recent analyst rating on (CWBC) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Community West Bancshares Holds Annual Shareholder Meeting
Neutral
May 23, 2025

On May 21, 2025, Community West Bancshares held its Annual Meeting of Shareholders, where 78.93% of the issued and outstanding shares were represented. During the meeting, directors were elected to serve until the 2026 Annual Meeting, the 2025 Omnibus Incentive Plan was approved, the appointment of Moss Adams LLP as the independent registered public accounting firm for 2025 was ratified, and a non-binding advisory resolution approving executive compensation was adopted.

The most recent analyst rating on (CWBC) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Business Operations and Strategy
Community West Bancshares Engages Investors at Conference
Neutral
May 6, 2025

On May 6-7, 2025, Community West Bancshares‘ executive management will engage with investors at the D.A. Davidson Financial Institutions Conference in Scottsdale, Arizona. This meeting signifies an opportunity for the company to present its strategic vision and operational updates to potential investors, potentially impacting its market positioning and stakeholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025