Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $459.27M
• Dividend Yield: 2.12%
• Average Volume (3M): 50.84K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.77
• Revenue Growth: 32.03%
• EPS Growth: 170.90%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 19,160,402
• 10 Day Avg. Volume: 49,610
• 30 Day Avg. Volume: 50,841
• PEG Ratio: 0.03
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 8.67
• 1Y Price Target: $27.50
• Price Target Upside: 14.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $27.00 ▲(12.64% Upside)

The score is driven primarily by solid financial performance (improving profitability, lower leverage, and strong free cash flow growth). Technicals add support with price above key moving averages and positive MACD, while valuation is reasonable (P/E 12.83 with ~2.0% yield). Corporate events further lift the outlook via a scale-enhancing merger and strong earnings/dividend announcements.

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

Solid fundamentals: improving net profit margin (TTM 14.05%), better leverage (debt-to-equity 0.41), and strong free cash flow growth (TTM +19.24%). Offsetting this, EBIT/EBITDA margin volatility and weaker operating cash flow conversion temper the score.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	194.60M	164.20M	108.10M	86.66M	81.45M
Gross Profit	141.32M	103.06M	87.80M	82.24M	84.58M
EBITDA	52.53M	13.20M	34.73M	35.90M	47.02M
Net Income	38.17M	7.67M	25.54M	26.64M	28.40M
Balance Sheet
Total Assets	3.69B	3.52B	2.43B	2.42B	2.45B
Cash, Cash Equivalents and Short-Term Investments	118.98M	423.81M	461.75M	680.00M	1.27B
Total Debt	142.53M	203.33M	149.74M	115.60M	39.45M
Total Liabilities	3.28B	3.16B	2.23B	2.25B	2.20B
Stockholders Equity	409.59M	362.69M	207.06M	174.66M	247.84M
Cash Flow
Free Cash Flow	0.00	17.16M	17.72M	23.31M	41.81M
Operating Cash Flow	0.00	22.20M	27.53M	23.67M	42.85M
Investing Cash Flow	0.00	64.47M	24.52M	-197.07M	-365.14M
Financing Cash Flow	0.00	-20.00M	-29.49M	41.10M	415.47M

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 23.97 is above the 20-day moving average (MA) of 23.05, above the 50-day MA of 22.96, and above the 200-day MA of 20.43, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 51.70 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	$411.96M	10.19	15.69%	2.00%	8.90%	18.23%
CWBC	73 Outperform	$459.27M	11.99	8.91%	2.12%	32.03%	170.90%
FRBA	72 Outperform	$419.24M	9.59	10.03%	1.41%	9.76%	4.43%
BMRC	69 Neutral	$432.14M	-11.97	2.24%	3.76%	23.93%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIVB	60 Neutral	$466.02M	9.14	9.73%	2.96%	3.49%	33.86%
MSBI	58 Neutral	$492.46M	-3.72	-17.52%	5.87%	12.76%	-401.62%

Community West Bancshares Corporate Events

Community West Bancshares Reports Strong Earnings and Dividend

Community West Bancshares reported unaudited consolidated net income of $11.17 million, or $0.58 per diluted share, for the quarter ended December 31, 2025, up sharply from $6.90 million, or $0.36 per share, a year earlier, supported by higher net interest income, improving net interest margin and disciplined credit provisioning. The company grew gross loans by 3.66% quarter-over-quarter and 8.85% year-to-date, increased deposits while holding the cost of deposits steady, and delivered stronger returns on assets and equity alongside robust capital ratios, while its board declared a $0.12 per-share cash dividend payable on February 20, 2026 to shareholders of record on February 6, 2026. Against this backdrop, Community West highlighted its December 17, 2025 definitive merger agreement with United Security Bancshares, which is expected to create a roughly $5 billion-asset institution and further entrench its Central California presence, suggesting a meaningful step-up in scale and market positioning for clients, employees and shareholders.

The most recent analyst rating on (CWBC) stock is a Hold 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.

Community West Bancshares Announces Director’s Upcoming Retirement

On January 16, 2026, Community West Bancshares announced that founding board member Daniel N. Cunningham will retire from the board upon completion of his term on May 20, 2026, after 46 years of service, and will be appointed Director Emeritus at that time, becoming only the fourth person to hold this honorary role since the company’s founding. Cunningham’s long tenure as chairman, lead independent director, and vice chairman has shaped the bank’s governance, strategy, and relationship-based culture through multiple economic and industry cycles, and his continued involvement as Director Emeritus is intended to preserve leadership continuity and institutional knowledge for employees, clients, and the communities the bank serves.

The most recent analyst rating on (CWBC) stock is a Hold 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.

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.