Executive Summary

Q3 2025 EPS of $0.57 rose 39% QoQ and 217% YoY, driven by higher net interest income, lower provisioning, and stronger non-interest income; the company declared a $0.12 dividend payable Nov 14, 2025 .
Net interest margin expanded to 4.20% (sixth straight sequential increase), while cost of total deposits fell to 1.39%, supporting profitability despite macro uncertainty .
Loans and deposits grew QoQ (+$51.8M loans; +$81.0M deposits), noninterest-bearing mix improved to 35.79%, and capital ratios remained strong (CET1 11.60%; Total RBC 14.07%) .
Q3 results beat S&P Global consensus on EPS ($0.57 vs $0.525) and revenue ($37.05M vs $36.96M); margin expansion and lower deposit costs are the primary stock-reaction catalysts, while continued accretion benefits and credit trends are key to watch (*Values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

Sustained NIM expansion and earnings strength: NIM rose to 4.20% (from 4.10% in Q2 and 3.69% in Q3’24); net income increased to $10.87M from $7.83M in Q2 and $3.39M in Q3’24 .
Funding and cost discipline: Cost of total deposits declined to 1.39% (from 1.43% in Q2 and 1.69% in Q3’24), with noninterest DDA mix improving to 35.79% (from 34.48% in Q2) .
Management confidence: “one of the strongest quarters in recent years, highlighted by six consecutive quarters of increasing net interest margin and record income growth” – CFO Shannon Livingston .

What Went Wrong

Loan risk migration: Substandard loans rose to $67.1M (2.7% of loans) vs $59.1M in Q2 and $39.6M in Q3’24; NPA/Assets held at 0.20% (up YoY from 0.09%) .
NIM aided by accretion: Net accretion benefit contributed ~28 bps to NIM in Q3 (vs 25 bps in Q2), indicating a non-core tailwind that may fade over time .
Modest loan yield dip: Effective loan yield edged down to 6.65% from 6.71% in Q2, partly offset by deposit cost declines .

Financial Results

Headline GAAP metrics (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Net Interest Income (before credit loss provision) ($M)	$30.21	$33.30	$34.94
Provision for Credit Losses ($M)	$(0.52)	$2.61	$0.67
Non-Interest Income ($M)	$1.11	$2.36	$2.97
Non-Interest Expense ($M)	$27.68	$22.30	$22.17
Net Income ($M)	$3.39	$7.83	$10.87
Diluted EPS ($)	$0.18	$0.41	$0.57
Net Interest Margin (%)	3.69%	4.10%	4.20%
Cost of Total Deposits (%)	1.69%	1.43%	1.39%

Consensus vs Actual (S&P Global; Q3 2025 only)

Metric	Q3 2025 Estimate	Q3 2025 Actual
EPS ($)	0.525*	0.57*
Revenue ($M)	36.96*	37.05*
EPS – # of Estimates	4*	—
Revenue – # of Estimates	3*	—

Note: Company-reported components imply Q3 “revenue” proxy (NII before provision + non-interest income) of $37.91M (=$34.94M + $2.97M) . S&P’s standardized revenue measure may differ.
Asterisk indicates Values retrieved from S&P Global.

KPIs and Balance Sheet (oldest → newest)

KPI	Q3 2024	Q2 2025	Q3 2025
Average Loans ($B)	$2.280	$2.370	$2.417
Average Deposits ($B)	$2.935	$2.963	$3.070
Noninterest DDA Mix (%)	37.16%	34.48%	35.79%
ACL/Total Loans (%)	1.08%	1.20%	1.21%
NPA/Assets (%)	0.09%	0.19%	0.20%
CET1 – Bancorp (%)	11.12%	11.42%	11.60%
Total RBC – Bancorp (%)	13.55%	13.89%	14.07%
Loan/Deposit Ratio (%)	78.62%	80.12%	79.66%
Tangible Book Value/Share ($)	$13.60	$14.34	$15.27

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per common share	Q4 2025 payment (paid 11/14/25)	$0.12	$0.12 (declared 10/15/25)	Maintained

Note: Share repurchase authorization of up to ~3% announced on July 16, 2025 (approx. 573,915 shares) remains the standing authorization; Q3 press materials did not provide an execution update .

Earnings Call Themes & Trends

Note: We did not find a Q3 2025 earnings call transcript in our document set or on the company’s IR site; analysis below reflects management commentary from press releases across quarters .

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Macro and policy backdrop	Q1: economic uncertainty and tariff policy highlighted by CEO; focus on client advocacy . Q2: inflation, policy and trade tensions; positioned with strong deposits, capital, liquidity .	CEO cites slower growth and policy uncertainty; reiterates focus on credit quality, deposit stability, liquidity .	Stable caution; execution-focused
Net interest margin and deposit costs	NIM 4.04% in Q1; 4.10% in Q2; deposit costs easing; five consecutive NIM increases (Q2) .	NIM up to 4.20%; cost of deposits down to 1.39%; “six consecutive” NIM increases – CFO .	Improving
Merger synergy/integration	Q1/Q2: merger synergies on revenue/expense; expanded footprint emphasized .	CFO points to synergies and “exceptional service culture” supporting record income growth .	Positive realization
Credit quality	Q1/Q2: ACL/loans at 1.11% then 1.20%; substandard loans rising; NPAs low .	ACL/loans 1.21%; substandard up to 2.7%; NPAs at 0.20% .	Mixed (adequate reserves, higher substandard)
Capital and liquidity	Strong capital and ample liquidity sources highlighted in Q1/Q2 .	CET1 11.60%, Total RBC 14.07%; liquidity sources $1.41B .	Stable/strong
Shareholder returns	Quarterly $0.12 dividend (Q1/Q2); Q2 buyback authorization .	Dividend maintained at $0.12 for Q3 .	Stable

Management Commentary

CEO James J. Kim: “The Company’s solid third-quarter results reflect the strength of our team and the trust of the clients and communities we serve… Even as the broader economy evolves – with slower growth and ongoing policy uncertainty – our focus remains steadfast. We continue to lead with discipline, maintaining credit quality, deposit stability and prudent liquidity management” .
CFO Shannon Livingston: “We are excited to report one of the strongest quarters in recent years, highlighted by six consecutive quarters of increasing net interest margin and record income growth… Our strong balance sheet and financial performance position the Company to deliver meaningful, long-term value for our shareholders” .

Q&A Highlights

No Q3 2025 earnings call transcript was found; key disclosures and commentary are drawn from the 8-K and press release .

Estimates Context

Q3 2025 results vs S&P Global consensus: EPS $0.57 vs $0.525 (+8.6% beat); Revenue $37.05M vs $36.96M (+0.2% beat). EPS estimate count: 4; Revenue estimate count: 3. These outcomes reflect stronger NIM and lower deposit costs, plus a lower provision QoQ (*Values retrieved from S&P Global).
Implications: If deposit costs continue to decline and NIM holds near 4.2%, Street EPS could drift higher; monitoring credit migration (substandard loan uptick) and the fading of accretion benefits is prudent .

Key Takeaways for Investors

Profitability inflection continues: NIM expanded to 4.20% with cost of deposits down to 1.39%, lifting EPS to $0.57 and compressing the efficiency ratio to 58.47% .
Healthy balance-sheet growth with improved mix: Loans +$51.8M QoQ; deposits +$81.0M QoQ; noninterest DDA mix improved to 35.79% .
Capital remains robust, enabling stable shareholder returns (dividend maintained) and optionality around buybacks (3% authorization from Q2) .
Watch the quality mix: substandard loans increased to 2.7%; NPAs remain low at 0.20% and ACL/loans at 1.21% provides coverage .
Non-core accretion continues to support NIM (~28 bps in Q3); normalized NIM ex-accretion is a key sensitivity to forward EPS .
Near-term trading setup: Results beat consensus on EPS and revenue with visible margin tailwinds; continued cost-of-deposits relief and stable credit would support estimate revisions and sentiment (*Values retrieved from S&P Global).

References: Q3 2025 earnings 8-K and press release (Item 2.02, EX-99.1) ; Q2 2025 8-K and press release ; Q1 2025 8-K and press release . External IR link for press materials . Asterisked estimate values are retrieved from S&P Global.

Community West Bancshares (CWBC)·Q3 2025 Earnings Summary