CORRECTED-Community West Bancshares Q3 net income rises sequentially on merger costs decline

Corrects provision for loan losses figure to $588,000 from $578,000 in Key Details table

Overview

• California bank's Q3 net income and EPS fell yr/yr due to merger and legal costs

• Net income and EPS rose from prior quarter as merger costs declined

• Company completed United Security Bancshares merger, driving loan and deposit growth

Outlook

• Company did not provide specific financial guidance for future quarters or the full year

Result Drivers

• CORE DEPOSIT GROWTH - Co said strong core deposit growth improved funding profile and liquidity position

• ORGANIC LOAN GROWTH - Co said organic loan growth and expanded client base contributed to higher average loans

• LOWER COST OF DEPOSITS - Co attributed decrease in deposit costs to USB deposit portfolio and organic deposit growth

Company press release: ID:nBw1lljRQa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Community West Bancshares is $30.00, about 17.3% above its October 21 closing price of $25.58

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 21 - First Community's Q3 net income rises 55% after Signature Bank of Georgia acquisition

• Oct 20 - Bank First Q3 net income boosted by Centre acquisition

• Oct 21 - FS Bancorp Q3 net income drops on acquisition costs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)