Executive Summary

Q4 2024 GAAP net income was $6.895M and diluted EPS $0.36, up sharply vs Q3 ($3.385M; $0.18) and ahead of Q4 2023 ($5.893M; $0.50). Sequential improvement was driven by higher net interest income and lower non-interest expense following merger integration completion .
Net interest margin expanded to 3.95% from 3.69% in Q3 and 3.52% in Q4 2023, as deposit costs fell to 1.49% from 1.69% q/q while asset yields remained stable; management attributed NIM improvement primarily to decreased interest expense on deposits and stable interest income .
Non-interest expense declined 16.2% q/q to $23.188M, reflecting synergy capture and elimination of dual-core systems; merger-related costs fell to $0.467M from $3.208M in Q3 .
Dividend maintained at $0.12 per share (payable Feb 21, 2025); capital ratios remained strong (Tier 1 Leverage 9.17%; CET1 11.15%; Total RBC 13.58%) .
Wall Street consensus estimates via S&P Global were unavailable at query time; comparisons to estimates cannot be provided (see Estimates Context).

What Went Well and What Went Wrong

What Went Well

Net interest margin expansion to 3.95% (+26 bps q/q) on lower deposit costs and stable interest income; CFO: “fourth-quarter results were highlighted by an improved net interest margin, primarily driven by decreased interest expense on deposits and stable interest income” .
Expense synergy realization: total non-interest expense fell by $4.489M q/q as systems integration completed and cost savings began to materialize in salaries, IT, data processing, professional services, and advertising .
Healthy loan growth and balance sheet scale post-merger: gross loans increased by $37.1M in Q4; average loans rose 1.23% q/q and 81.99% y/y, with effective loan yield at 6.61% .
Management tone: CEO emphasized merger synergies delivering “a whole greater than its parts” and positioning for future success across expanded territory, technologies, and offerings .

What Went Wrong

Non-interest-bearing deposits mixed down y/y to 33.7% of total (from 46.6%), reflecting higher-cost funding and acquired deposit mix; cost of deposits rose y/y to 1.49% from 0.87% (though improved q/q) .
Non-performing assets increased to $6.461M (0.18% of assets) vs Q3 $3.250M, adding modest credit pressure; net loan charge-offs were $59K (0.01% annualized) .
YTD non-interest expense significantly elevated by merger costs (up $39.401M y/y), depressing FY profitability despite Q4 improvement; comparable y/y Q4 non-interest expenses +56.1% .

Financial Results

P&L Summary (Quarterly)

Definition: Total Net Revenue = Net Interest Income + Non-Interest Income.

Metric ($USD Millions unless noted)	Q2 2024	Q3 2024	Q4 2024
Net Interest Income	$29.057	$30.214	$32.024
Provision for Credit Losses	$9.831	$(0.518)	$1.224
Non-Interest Income	$1.400	$1.105	$2.303
Non-Interest Expense	$28.503	$27.677	$23.188
Net Income (Loss)	$(6.290)	$3.385	$6.895
Diluted EPS ($)	$(0.33)	$0.18	$0.36
Total Net Revenue ($)	$30.457	$31.319	$34.327

Margins & Efficiency (Quarterly)

Metric (%)	Q2 2024	Q3 2024	Q4 2024
Net Interest Margin (FTE)	3.65%	3.69%	3.95%
Cost of Total Deposits	1.71%	1.69%	1.49%
Efficiency Ratio (GAAP)	93.58%	88.37%	67.55%
ROAA (annualized)	(0.73)%	0.38%	0.78%
ROAE (annualized)	(7.39)%	3.84%	7.55%
Book Value per Share ($)	$18.49	$19.19	$19.11

YoY Comparison (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024
Net Interest Income ($M)	$20.115	$32.024
Net Interest Margin (FTE, %)	3.52%	3.95%
Cost of Total Deposits (%)	0.87%	1.49%
Non-Interest Expense ($M)	$14.854	$23.188
Net Income ($M)	$5.893	$6.895
Diluted EPS ($)	$0.50	$0.36
Effective Loan Yield (%)	5.62%	6.61%

Segment Breakdown – Loan Portfolio Composition

Loan Type ($USD Thousands)	Dec 31, 2023 Amount	Dec 31, 2023 %	Dec 31, 2024 Amount	Dec 31, 2024 %
Commercial & Industrial	$105,466	8.2%	$143,422	6.1%
Agricultural Production	$33,556	2.6%	$37,323	1.6%
Construction & Land	$33,472	2.6%	$67,869	2.9%
CRE – Owner Occupied	$215,146	16.7%	$323,188	13.8%
CRE – Non-Owner Occupied	$539,522	41.9%	$913,165	39.1%
Farmland	$120,674	9.3%	$139,815	6.0%
Multi-Family Residential	$61,307	4.7%	$133,595	5.7%
1–4 Family (Closed-End)	$96,558	7.5%	$123,445	5.3%
1–4 Family (Revolving)	$27,648	2.1%	$35,421	1.5%
Manufactured Housing	—	—	$322,263	13.8%
Other Installment	$55,606	4.3%	$92,839	4.0%
Net Deferred Origination Costs	$1,842	0.1%	$1,876	0.1%
Total Gross Loans	$1,290,797	100.0%	$2,334,221	99.9%
Allowance for Credit Losses	$(14,653)	—	$(25,803)	—
Total Loans (Net)	$1,276,144	—	$2,308,418	—

KPIs (Quarterly)

KPI	Q2 2024	Q3 2024	Q4 2024
Average Non-Interest-Bearing Deposits / Total Deposits (%)	—	37.16%	36.02%
Total Deposits ($M)	$2,921.695	$2,921.695	$2,910.777
Non-Performing Assets / Total Assets (%)	—	0.09%	0.18%
Net Charge-Offs to Avg Loans (annualized, %)	0.01%	(0.03)%	0.01%
Liquidity Sources ($M, total)	—	—	$1,284.317
Dividend per Share ($)	$0.12	$0.12	$0.12

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Q4 2024	$0.12 (Q3 2024 actual)	$0.12 (Declared Jan 22, 2025; payable Feb 21, 2025)	Maintained
Revenue / NIM / OpEx / OI&E / Tax Rate	Q1 2025+	Not provided	Not provided	—

Management did not issue quantitative forward guidance for revenue, margins, OpEx, OI&E, or tax rate in the materials reviewed .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in our document set; themes are inferred from earnings materials.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Merger Integration & Synergies	Loss driven by merger-related expenses, including provision on acquired loans	Merger expenses elevated; integration ongoing	Integration completed; cost savings realized; merger-related expense down sharply	Improving
Deposit Cost Discipline	—	Cost of total deposits 1.69%	Cost of total deposits 1.49%; mix still more interest-bearing vs y/y	Improving q/q; y/y still higher
Net Interest Margin	NIM 3.65%	NIM 3.69%	NIM 3.95%; CFO cites lower deposit interest expense, stable interest income	Improving
Credit Quality	—	NPA 0.09%; net recoveries (0.03% annualized)	NPA 0.18%; net charge-offs 0.01% annualized; ACL/loans ~1.11%	Slightly weaker
Liquidity & Capital	—	—	Liquidity sources $1.284B; T1 Leverage 9.17%; Total RBC 13.58%	Stable/Strong

Management Commentary

CEO James J. Kim: “The synergies created by merging our two well-established companies is delivering a whole greater than its parts... This merger is a testament to the inspiring commitment and teamwork of our exceptional employees” .
CFO Shannon Livingston: “The fourth-quarter results were highlighted by an improved net interest margin, primarily driven by decreased interest expense on deposits and stable interest income” .
CEO strategic framing: 2024 as “a transformative chapter... strengthened team, enhanced expertise, expanded Central California territory, greater technologies and product offerings” .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the referenced sources; Q&A highlights and any guidance clarifications cannot be provided from the materials reviewed.

Estimates Context

Wall Street consensus estimates (EPS, revenue) via S&P Global were unavailable at query time; therefore, no estimate comparisons are provided. Values would be retrieved from S&P Global if accessible.
Implication: Given the magnitude of sequential NIM expansion and expense reduction, sell-side models may need to reflect a lower run-rate for non-interest expense and improved NIM assumptions into early 2025, supported by deposit cost reductions and integration benefits .

Key Takeaways for Investors

Sequential earnings inflection: Net income more than doubled q/q to $6.895M as NIM expanded and expenses fell post-merger integration .
Margin tailwind: Deposit cost decline to 1.49% and stable asset yields drove NIM to 3.95%; management sees a foundation for further improvement into 2025, subject to funding mix and rate environment .
Cost discipline materializing: Non-interest expense down 16% q/q with synergies across salaries, IT, data processing, and professional services—watch for continued efficiency ratio improvement if savings persist .
Credit trends mixed: NPA increased to 0.18% of assets; charge-offs remained minimal; ACL coverage ~1.11%—monitor migration in substandard/special mention categories .
Funding mix watchpoint: Non-interest-bearing deposit ratio declined y/y; while cost improved q/q, maintaining low-cost funding will be key to sustaining NIM .
Capital and liquidity robust: Tier 1 Leverage 9.17% and liquidity sources of $1.284B provide flexibility for growth and shareholder dividends ($0.12 maintained) .
Trading implications: Near-term positive narrative on margin/expense trajectory post-integration; absent estimate comparisons, focus on sequential NIM/efficiency prints and deposit mix improvements as catalysts for multiple/price reaction .

Community West Bancshares (CWBC)·Q4 2024 Earnings Summary