10-Q 1 cvcy-20240331.htm 10-Q cvcy-20240331
0001127371false12-312024Q114,65814,65310,000,00010,000,00080,000,00080,000,00011,831,99411,818,03911,831,99411,818,03936.7512P1MP1Yxbrli:sharesiso4217:USDiso4217:USDxbrli:sharescvcy:securityxbrli:pure00011273712024-01-012024-03-3100011273712024-04-3000011273712024-03-3100011273712023-12-3100011273712023-01-012023-03-310001127371us-gaap:CommonStockMember2022-12-310001127371us-gaap:RetainedEarningsMember2022-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100011273712022-12-310001127371us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:RetainedEarningsMember2022-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-12-310001127371us-gaap:RetainedEarningsMember2023-01-012023-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001127371us-gaap:CommonStockMember2023-01-012023-03-310001127371us-gaap:CommonStockMember2023-03-310001127371us-gaap:RetainedEarningsMember2023-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100011273712023-03-310001127371us-gaap:CommonStockMember2023-12-310001127371us-gaap:RetainedEarningsMember2023-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001127371us-gaap:RetainedEarningsMember2024-01-012024-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001127371us-gaap:CommonStockMember2024-01-012024-03-310001127371us-gaap:CommonStockMember2024-03-310001127371us-gaap:RetainedEarningsMember2024-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001127371us-gaap:USTreasurySecuritiesMember2024-03-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371us-gaap:CorporateDebtSecuritiesMember2024-03-310001127371us-gaap:USTreasurySecuritiesMember2023-12-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001127371us-gaap:CorporateDebtSecuritiesMember2023-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMembercvcy:ExternalCreditRatingAAAAAARatingMember2024-03-310001127371cvcy:ExternalCreditRatingBBBBBBRatingMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001127371cvcy:ExternalCreditRatingNotRatedMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001127371cvcy:ExternalCreditRatingAAAAAARatingMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371cvcy:ExternalCreditRatingBBBBBBRatingMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371cvcy:ExternalCreditRatingNotRatedMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371us-gaap:CorporateDebtSecuritiesMembercvcy:ExternalCreditRatingAAAAAARatingMember2024-03-310001127371us-gaap:CorporateDebtSecuritiesMembercvcy:ExternalCreditRatingBBBBBBRatingMember2024-03-310001127371cvcy:ExternalCreditRatingNotRatedMemberus-gaap:CorporateDebtSecuritiesMember2024-03-310001127371cvcy:ExternalCreditRatingAAAAAARatingMember2024-03-310001127371cvcy:ExternalCreditRatingBBBBBBRatingMember2024-03-310001127371cvcy:ExternalCreditRatingNotRatedMember2024-03-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:CommercialPortfolioSegmentMember2023-12-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:A14FamilyCloseEndedMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:A14FamilyCloseEndedMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2024-03-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-12-310001127371cvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMembercvcy:EquityLoansAndLinesOfCreditMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMembercvcy:EquityLoansAndLinesOfCreditMember2023-12-310001127371cvcy:SmallBusinessAdministrationProgramsMember2024-03-310001127371cvcy:SmallBusinessAdministrationProgramsMember2023-12-310001127371cvcy:FamilyRealEstateMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMember2023-12-310001127371us-gaap:CommercialPortfolioSegmentMember2024-01-012024-03-310001127371cvcy:RealEstatePortfolioSegmentMember2024-01-012024-03-310001127371cvcy:FamilyRealEstateMember2024-01-012024-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2024-01-012024-03-310001127371cvcy:FamilyRealEstateMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2024-03-310001127371us-gaap:CommercialPortfolioSegmentMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:FamilyRealEstateMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMember2022-12-310001127371us-gaap:UnallocatedFinancingReceivablesMember2022-12-310001127371us-gaap:CommercialPortfolioSegmentMember2023-01-012023-03-310001127371cvcy:RealEstatePortfolioSegmentMember2023-01-012023-03-310001127371cvcy:FamilyRealEstateMember2023-01-012023-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-03-310001127371us-gaap:UnallocatedFinancingReceivablesMember2023-01-012023-03-310001127371us-gaap:CommercialPortfolioSegmentMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:FamilyRealEstateMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2023-03-310001127371us-gaap:UnallocatedFinancingReceivablesMember2023-03-310001127371us-gaap:PassMembercvcy:CommercialAndIndustrialMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:CommercialAndIndustrialMember2024-03-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:CommercialAndIndustrialMember2024-03-310001127371cvcy:CommercialAndIndustrialMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:AgriculturalProductionMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:AgriculturalProductionMember2024-03-310001127371cvcy:AgriculturalProductionMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:AgriculturalProductionMember2024-03-310001127371cvcy:AgriculturalProductionMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:RealEstateConstructionAndOtherLandLoansMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:RealEstateConstructionAndOtherLandLoansMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:OwnerOccupiedRealEstateMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:OwnerOccupiedRealEstateMember2024-03-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:OwnerOccupiedRealEstateMember2024-03-310001127371cvcy:OwnerOccupiedRealEstateMember2024-01-012024-03-310001127371us-gaap:PassMemberus-gaap:CommercialRealEstateMember2024-03-310001127371us-gaap:SpecialMentionMemberus-gaap:CommercialRealEstateMember2024-03-310001127371us-gaap:CommercialRealEstateMemberus-gaap:SubstandardMember2024-03-310001127371us-gaap:CommercialRealEstateMember2024-03-310001127371us-gaap:CommercialRealEstateMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:AgriculturalRealEstateMember2024-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:SpecialMentionMember2024-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:AgriculturalRealEstateMember2024-03-310001127371cvcy:AgriculturalRealEstateMember2024-01-012024-03-310001127371us-gaap:PassMembersrt:MultifamilyMember2024-03-310001127371us-gaap:SpecialMentionMembersrt:MultifamilyMember2024-03-310001127371srt:MultifamilyMemberus-gaap:SubstandardMember2024-03-310001127371srt:MultifamilyMember2024-03-310001127371srt:MultifamilyMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:A14FamilyCloseEndedMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:A14FamilyCloseEndedMember2024-03-310001127371cvcy:A14FamilyCloseEndedMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:A14FamilyCloseEndedMember2024-03-310001127371cvcy:A14FamilyCloseEndedMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:A14FamilyRevolvingMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:A14FamilyRevolvingMember2024-03-310001127371us-gaap:SubstandardMembercvcy:A14FamilyRevolvingMember2024-03-310001127371cvcy:A14FamilyRevolvingMember2024-03-310001127371cvcy:A14FamilyRevolvingMember2024-01-012024-03-310001127371us-gaap:PassMembercvcy:EquityLoansAndLinesOfCreditMember2024-03-310001127371us-gaap:SpecialMentionMembercvcy:EquityLoansAndLinesOfCreditMember2024-03-310001127371cvcy:EquityLoansAndLinesOfCreditMemberus-gaap:SubstandardMember2024-03-310001127371cvcy:EquityLoansAndLinesOfCreditMember2024-03-310001127371cvcy:EquityLoansAndLinesOfCreditMember2024-01-012024-03-310001127371us-gaap:PassMember2024-03-310001127371us-gaap:SpecialMentionMember2024-03-310001127371us-gaap:SubstandardMember2024-03-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembersrt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2024-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2024-03-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2024-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2024-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMembercvcy:A14FamilyRevolvingMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310001127371us-gaap:FinancialAssetNotPastDueMember2024-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310001127371us-gaap:FinancialAssetPastDueMember2024-03-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371cvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:CommercialAndIndustrialMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembersrt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembersrt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2023-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-12-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMembercvcy:A14FamilyRevolvingMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001127371us-gaap:FinancialAssetNotPastDueMember2023-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001127371us-gaap:FinancialAssetPastDueMember2023-12-310001127371us-gaap:LetterOfCreditMembercvcy:UnsecuredCreditLinesMember2024-03-310001127371srt:FederalHomeLoanBankOfSanFranciscoMember2024-03-310001127371srt:FederalHomeLoanBankOfSanFranciscoMember2023-12-310001127371us-gaap:AssetPledgedAsCollateralMemberus-gaap:FederalHomeLoanBankAdvancesMember2024-03-310001127371us-gaap:FederalHomeLoanBankAdvancesMember2024-03-310001127371us-gaap:LetterOfCreditMembercvcy:FederalReserveBankMember2024-03-310001127371us-gaap:LetterOfCreditMembercvcy:FederalReserveBankMember2023-12-310001127371us-gaap:LetterOfCreditMembercvcy:FederalReserveBankTermLoanFundingProgramMember2023-12-310001127371us-gaap:LetterOfCreditMembercvcy:UnsecuredCreditLinesMember2023-12-310001127371us-gaap:LetterOfCreditMemberus-gaap:FederalHomeLoanBankBorrowingsMember2024-03-310001127371us-gaap:LetterOfCreditMemberus-gaap:FederalHomeLoanBankBorrowingsMember2023-12-310001127371us-gaap:LetterOfCreditMembercvcy:FederalReserveBankTermLoanFundingProgramMember2024-03-310001127371us-gaap:SubordinatedDebtMembercvcy:SubordinatedDebtDue2031Member2024-03-310001127371us-gaap:SubordinatedDebtMembercvcy:SubordinatedDebtDue2031Member2023-12-310001127371us-gaap:SubordinatedDebtMember2024-03-310001127371us-gaap:SubordinatedDebtMember2023-12-310001127371us-gaap:SeniorNotesMember2024-03-310001127371us-gaap:SeniorNotesMember2023-12-310001127371us-gaap:SubordinatedDebtMember2021-11-120001127371us-gaap:SubordinatedDebtMember2024-01-012024-03-310001127371us-gaap:SubordinatedDebtMember2023-01-012023-03-310001127371us-gaap:SeniorNotesMember2022-09-150001127371us-gaap:PrimeRateMember2022-09-152022-09-1500011273712022-09-150001127371us-gaap:SeniorNotesMember2024-01-012024-03-3100011273712022-09-152022-09-150001127371us-gaap:CommitmentsToExtendCreditMember2024-03-310001127371us-gaap:CommitmentsToExtendCreditMember2023-12-310001127371us-gaap:UnusedLinesOfCreditMember2024-03-310001127371us-gaap:UnusedLinesOfCreditMember2023-12-310001127371srt:MinimumMemberus-gaap:UnusedLinesOfCreditMember2024-01-012024-03-310001127371srt:MaximumMemberus-gaap:UnusedLinesOfCreditMember2024-01-012024-03-310001127371cvcy:UnusedPortionOfConstructionLoansMember2024-03-310001127371cvcy:UnusedPortionOfConstructionLoansMember2023-12-310001127371us-gaap:StandbyLettersOfCreditMember2024-03-310001127371us-gaap:StandbyLettersOfCreditMember2023-12-310001127371us-gaap:StandbyLettersOfCreditMembersrt:MaximumMember2024-01-012024-03-310001127371cvcy:ProbableLoanLossExperienceOnUnfundedObligationsMember2024-03-310001127371cvcy:ProbableLoanLossExperienceOnUnfundedObligationsMember2023-12-310001127371us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001127371srt:MinimumMemberus-gaap:RestrictedStockMember2024-01-012024-03-310001127371srt:MaximumMemberus-gaap:RestrictedStockMember2024-01-012024-03-310001127371us-gaap:RestrictedStockMember2023-12-310001127371us-gaap:RestrictedStockMember2024-03-310001127371us-gaap:RestrictedStockMember2024-01-012024-03-310001127371us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001127371us-gaap:FairValueInputsLevel1Member2024-03-310001127371us-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001127371us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueInputsLevel1Member2023-12-310001127371us-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueInputsLevel3Member2023-12-310001127371us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001127371us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 10-Q
(Mark One)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
FOR THE TRANSITION PERIOD FROM                        TO
 
COMMISSION FILE NUMBER: 000-31977
 
COMMUNITY WEST BANCSHARES
(Exact name of registrant as specified in its charter)
California 77-0539125
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
7100 N. Financial Dr., Suite 101, Fresno, California
 93720
(Address of principal executive offices) (Zip code)
 
Registrant’s telephone number (559) 298-1775

Securities registered pursuant to Section 12(b) of the Act:
Common Stock, no par valueCWBC
NASDAQ Capital Market
(Title of Each Class)(Trading Symbol)(Name of Each Exchange on which Registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No   
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
  
 
Accelerated filer
Emerging growth company
Non-accelerated filer
  
 
Small reporting company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No  

As of April 30, 2024 there were 18,870,184 shares of the registrant’s common stock outstanding.
1


COMMUNITY WEST BANCSHARES AND SUBSIDIARY
 
2024 QUARTERLY REPORT ON FORM 10-Q
 
TABLE OF CONTENTS
 
 

2



CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to:

current and future business, economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values and overall slowdowns in economic growth should these events occur;
inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in the portfolio or in the secondary market;
effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board;
geopolitical and domestic political developments that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, and increase the volatility of financial markets;
changes in the level of nonperforming assets and charge offs and other credit quality measures, and their impact on the adequacy of our allowance for credit losses and our provision for credit losses;
factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, and the success of construction projects that we finance;
our ability to achieve loan growth and attract deposits in our market area, the impact of the cost of deposits and our ability to retain deposits;
liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary;
continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are;
challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services;
restraints on the ability of Community West Bank to pay dividends to us, which could limit our liquidity;
increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;
inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance;
changes in our management personnel or our inability to retain, motivate and hire qualified management personnel;
disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems;
disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions;
an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies;
risks related to the merger with Community West Bancshares, including, among others; the expected business expansion may be less successful as projected; the integration of each party’s management, personnel and operations may not be successfully achieved or may be materially delayed or may be more costly or difficult than expected, deposit attrition, customer or employee loss and/or revenue loss as a result of the announcement of the proposed merger, and expenses related to the proposed merger may be greater than expected;
natural disasters, such as earthquakes, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business;
compliance with governmental and regulatory requirements, relating to banking, consumer protection, securities and tax matters; and
our ability to the manage the foregoing.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward looking statements in this report. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward
3


looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Further information on other factors that could affect the financial results of the Company are included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and in the Company’s other filings with the Securities and Exchange Commission (“SEC”). These documents are available free of charge at the SEC website at http://www.sec.gov.

4



PART 1: FINANCIAL INFORMATION
 
ITEM 1: FINANCIAL STATEMENTS

COMMUNITY WEST BANCSHARES AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
 (Unaudited)
(In thousands, except share amounts)March 31, 2024December 31, 2023
  
ASSETS  
Cash and due from banks$25,068 $30,017 
Interest-earning deposits in other banks35,891 23,711 
Total cash and cash equivalents60,959 53,728 
Available-for-sale debt securities, at fair value, net of allowance for credit losses of $0, with an amortized cost of $643,525 at March 31, 2024 and $669,646 at December 31, 2023573,534 597,196 
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $894 at March 31, 2024 and $1,051 at December 31, 2023302,512 302,442 
Equity securities, at fair value6,579 6,649 
Loans, less allowance for credit losses of $14,658 at March 31, 2024 and $14,653 at December 31, 20231,271,951 1,276,144 
Bank premises and equipment, net14,102 14,042 
Bank-owned life insurance41,848 41,572 
Federal Home Loan Bank stock7,136 7,136 
Goodwill53,777 53,777 
Accrued interest receivable and other assets83,226 80,740 
Total assets$2,415,624 $2,433,426 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Deposits:  
Non-interest bearing$911,176 $951,541 
Interest bearing1,120,073 1,090,071 
Total deposits2,031,249 2,041,612 
Short-term borrowings67,000 80,000 
Senior debt and subordinated debentures, less debt issuance costs of $375 at March 31, 2024 and $411 at December 31, 202369,780 69,744 
Accrued interest payable and other liabilities35,878 35,006 
Total liabilities2,203,907 2,226,362 
Commitments and contingencies (Note 8)
Shareholders’ equity:  
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding
  
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,831,994 at March 31, 2024 and 11,818,039 at December 31, 202362,801 62,550 
Retained earnings212,805 210,548 
Accumulated other comprehensive loss, net of tax(63,889)(66,034)
Total shareholders’ equity211,717 207,064 
Total liabilities and shareholders’ equity$2,415,624 $2,433,426 
 
See notes to unaudited consolidated financial statements.
5



COMMUNITY WEST BANCSHARES AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
For the Three Months
Ended March 31,
(In thousands, except share and per-share amounts) 20242023
INTEREST INCOME:
Interest and fees on loans$18,299 $16,777 
Interest on deposits in other banks432 75 
Interest and dividends on investment securities:
Taxable5,500 5,886 
Exempt from Federal income taxes1,396 1,405 
Total interest income25,627 24,143 
INTEREST EXPENSE:
Interest on deposits5,018 1,004 
Interest on short-term borrowings621 661 
Interest on senior debt and subordinated debentures915 897 
Total interest expense6,554 2,562 
Net interest income before provision for credit losses19,073 21,581 
PROVISION FOR CREDIT LOSSES575 633 
Net interest income after provision for credit losses18,498 20,948 
NON-INTEREST INCOME:
Service charges384 387 
Net realized losses on sales and calls of investment securities (373)(219)
Other income1,625 1,407 
Total non-interest income1,636 1,575 
NON-INTEREST EXPENSES:
Salaries and employee benefits8,638 8,034 
Occupancy and equipment1,543 1,258 
Other5,152 3,913 
Total non-interest expenses15,333 13,205 
Income before provision for income taxes4,801 9,318 
Provision for income taxes 1,125 2,348 
Net income$3,676 $6,970 
Earnings per common share:
Basic earnings per share$0.31 $0.60 
Weighted average common shares used in basic computation11,750,528 11,703,813 
Diluted earnings per share$0.31 $0.59 
Weighted average common shares used in diluted computation11,790,231 11,731,135 
Cash dividend per common share$0.12 $0.12 
 
See notes to unaudited consolidated financial statements.
6



COMMUNITY WEST BANCSHARES AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
For the Three Months
Ended March 31,
(In thousands)20242023
Net income$3,676 $6,970 
Other comprehensive income:
Unrealized gains on securities:
Unrealized holding gains arising during the period2,086 6,433 
Reclassification of net losses included in net income373 219 
Amortization of net unrealized losses transferred 586 627 
Other comprehensive income, before tax3,045 7,279 
Tax effect(900)(2,153)
Total other comprehensive income2,145 5,126 
Comprehensive income$5,821 $12,096 

See notes to unaudited consolidated financial statements.
7


 
COMMUNITY WEST BANCSHARES AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(Unaudited)
Accumulated
Other
Comprehensive Loss
(Net of Taxes)
Total Shareholders’ Equity
Common StockRetained Earnings
(In thousands, except share amounts)SharesAmount
Balance, December 31, 202211,735,291 $61,487 $194,400 $(81,227)174,660 
Implementation of ASU 2016-13, Current Expected Credit Loss (CECL) Day 1 Adjustment  (3,731) (3,731)
Adjusted Balance, January 1, 202311,735,291 $61,487 $190,669 $(81,227)$170,929 
Net income— — 6,970 — 6,970 
Other comprehensive income— — — 5,126 5,126 
Stock issued under employee stock purchase plan
4,143 76 — — 76 
Stock awarded to employees10,347  — —  
Restricted stock granted net of forfeitures
5,157 — — — — 
Stock-based compensation expense
— 361 — — 361 
Cash dividend
— — (1,410)— (1,410)
Balance, March 31, 202311,754,938 $61,924 $196,229 $(76,101)$182,052 
Balance, December 31, 202311,818,039 $62,550 $210,548 $(66,034)$207,064 
Net income
— — 3,676 — 3,676 
Other comprehensive income— — — 2,145 2,145 
Stock issued under employee stock purchase plan
4,380 70 — — 70 
Restricted stock granted net of forfeitures
9,275 — — — — 
Stock awarded to employees300  — — — 
Stock-based compensation expense
— 181 — — 181 
Cash dividend
— — (1,419)— (1,419)
Balance, March 31, 202411,831,994 $62,801 $212,805 $(63,889)$211,717 

See notes to unaudited consolidated financial statements.





















8


CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 
 For the Three Month
Ended March 31,
(In thousands)20242023
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income$3,676 $6,970 
Adjustments to reconcile net income to net cash provided by operating activities: 
Net increase in deferred loan fees(378)(56)
Depreciation381 158 
Accretion(443)(515)
Amortization1,302 2,306 
Stock-based compensation181 361 
Provision for credit losses575 633 
Net realized losses on sales and calls of available-for-sale investment securities373 219 
Net change in equity securities70 (105)
Increase in bank-owned life insurance, net of expenses(275)(249)
Net decrease in accrued interest receivable and other assets(2,982)(2,509)
Net increase in accrued interest payable and other liabilities670 3,030 
Provision for deferred income taxes832 289 
Net cash provided by operating activities3,982 10,532 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Proceeds from sales or calls of available-for-sale investment securities5,700 12,066 
Proceeds from maturity and principal repayments of available-for-sale investment securities18,731 10,355 
Proceeds from maturity and principal repayments of held-to-maturity investment securities268 798 
Net decrease (increase) in loans3,702 (29,212)
Purchases of premises and equipment(441)(210)
Net cash provided by (used in) investing activities27,960 (6,203)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Net decrease in demand, interest bearing and savings deposits(22,424)(69,013)
Net increase in time deposits12,062 145,110 
Proceeds from short-term borrowings from Federal Home Loan Bank
331,000 3,346,500 
Repayments of short-term borrowings to Federal Home Loan Bank(344,000)(3,392,500)
Proceeds from stock issued under employee stock purchase plan
70 76 
Cash dividend payments on common stock(1,419)(1,410)
Net cash (used in) provided by financing activities(24,711)28,763 
Increase in cash and cash equivalents7,231 33,092 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD53,728 31,170 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$60,959 $64,262 
 
See notes to unaudited consolidated financial statements.
9


 For the Three Month
Ended March 31,
(In thousands)20242023
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:  
Cash paid during the period for:
  
Interest$5,788 $2,730 
Income taxes$ $ 
Operating cash flows from operating leases$577 $589 
Non-cash investing and financing activities:
Unrealized gain on securities available for sale$2,459 $6,652 
See notes to unaudited consolidated financial statements.

10


COMMUNITY WEST BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2024
(Unaudited)

Note 1. 
 
Description of Business and Basis of Presentation
The interim unaudited condensed consolidated financial statements of Community West Bancshares and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim condensed consolidated financial statements include the accounts of Community West Bancshares and its wholly owned subsidiary Community West Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation.  Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2023 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at March 31, 2024, and the results of its operations and its cash flows for the three month interim periods ended March 31, 2024 and 2023 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year.
 
In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, “Subsequent Events,” the Company’s management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements. On April 1, 2024, the Company, formerly named Central Valley Community Bancorp, completed the acquisition of Community West Bancshares. Refer to Note 2 - Business Combinations for further discussion of this transaction.

Use of Estimates in the Preparation of Financial Statements
The preparation of these interim unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
 
Segment and Significant Group Concentration of Credit Risk
Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment, and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. No customer accounts for more than 10 percent of revenues for the Company or the Bank.

Reclassifications
Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2024. None of the reclassifications had an impact on equity or net income.

Recently Issued or Adopted Accounting Pronouncements
FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. This ASU is effective for fiscal years beginning after December 15, 2024. The adoption of this accounting guidance is not expected to have a material impact on the Company’s consolidated financial statements but will result in the expansion of the income tax disclosures.

FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU was issued to address stakeholder requests for more detailed information about expenses within each reportable segment and address disclosure requirements there within. The amendments retain existing disclosure requirements, and expand upon them for both interim and annual reporting periods. In addition, entities with a single reportable segment must now provide all segment disclosures required, including the new disclosure requirements. This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this accounting
11


guidance is not expected to have a material impact on the Company’s consolidated financial statements but will result in inclusion of certain segment reporting requirements not previously required.

Note 2.  Business Combinations

Effective on April 1, 2024, Central Valley Community Bancorp (“Central Valley”) completed its merger transaction with Community West Bancshares (“Community West”). Shortly thereafter Community West Bank (“CWB”), a wholly owned subsidiary of Community West, merged with and into Central Valley Community Bank (“CVCB”), a wholly-owned subsidiary of Central Valley, with CVCB being the surviving banking institution. Effective with these mergers, the corporate name of Central Valley and CVCB were changed to Community West Bancshares and Community West Bank, respectively.

Pursuant to the terms of the merger, holders of Community West common stock had the right to receive 0.79 of a share of common stock of Central Valley for each share of Community West common stock held immediately prior to the effective time of the mergers, with cash to be paid in lieu of any fractional shares of common stock of Central Valley. As a result of the mergers, Central Valley issued approximately 7,038,220 shares of Central Valley common stock. The financial condition and results of operation of the combined companies will begin to be reported in the 2024 second quarter results.

The acquisition improves the Company’s footprint in Central California, expanding to the Central Coast. The acquisition diversifies its commercial banking business, adds additional revenue enhancing products, improves the Bank’s loan to deposit ratio, and creates operational efficiencies.

Immediately subsequent to the mergers, the newly combined company, had total assets of approximately $3.5 billion. Immediately prior to the merger on March 31, 2024, Community West had loans of approximately $973 million, deposits of approximately $848 million, borrowings from the Federal Home Loan Bank of San Francisco (FHLB) of $90 million, and total assets of approximately $1.1 billion. These amounts are subject to change as the Company is in the process of determining the fair value of Community West assets and liabilities acquired in accordance with generally accepted accounting principles. The Company anticipates recording goodwill and core deposit intangibles with this acquisition. Merger-related expenses of $383,000, are reflected in non-interest expense on the Consolidated Statements of Income for the three months ended March 31, 2024.

The Company will file an amended Form 8-K on or before June 17, 2024 that will include financial statements for Community West and combined pro forma financial information for the Company and Community West as if the merger was effective as of March 31, 2024 for the balance sheet and January 1, 2023 for the statements of income. The pro forma financial information will reflect various adjustments required by applicable acquisition accounting rules.

The acquisition of Community West will be accounted for using the acquisition method of accounting in accordance with ASC Topic 805. Assets acquired, liabilities assumed and consideration exchanged will be recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values become available. The fair value of the acquired assets and liabilities is in process.

Note 3. Investments
 
The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2024 and December 31, 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrealized gains and losses (in thousands): 
12


 March 31, 2024
Available-for-Sale SecuritiesAmortized Cost
Gross
Unrealized
 Gains
Gross
Unrealized
Losses
Estimated
 Fair Value
Allowance for Credit Losses
Debt securities:    
U.S. Treasury securities$9,990 $ $(1,112)$8,878 $ 
U.S. Government agencies100  (8)92  
Obligations of states and political subdivisions197,311  (18,906)178,405  
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
86,205 4 (5,411)80,798  
Private label mortgage and asset backed securities
349,919 7 (44,565)305,361  
Total available-for-sale$643,525 $11 $(70,002)$573,534 $ 
March 31, 2024
Held-to-Maturity SecuritiesAmortized Cost
Gross
Unrealized
 Gains
Gross
Unrealized
Losses
Estimated
 Fair Value
Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions$192,099 $70 $(15,964)$176,205 $14 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
10,841  (2,010)8,831  
Private label mortgage and asset backed securities
54,354  (5,738)48,616 11 
Corporate debt securities46,112  (4,871)41,241 869 
Total held-to-maturity$303,406 $70 $(28,583)$274,893 $894 
 December 31, 2023
Available-for-Sale SecuritiesAmortized Cost
Gross
Unrealized
 Gains
Gross
Unrealized
Losses
Allowance for Credit LossesEstimated
Fair Value
Debt securities:    
U.S. Treasury securities$9,990 $ $(1,036)$ $8,954 
U.S. Government agencies102  (7) 95 
Obligations of states and political subdivisions198,070  (17,848) 180,222 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
88,874 3 (5,525) 83,352 
Private label mortgage and asset backed securities
372,610 10 (48,047) 324,573 
Total available-for-sale$669,646 $13 $(72,463)$ $597,196 

December 31, 2023
Held-to-Maturity SecuritiesAmortized Cost
Gross
Unrealized
 Gains
Gross
Unrealized
Losses
Estimated
 Fair Value
Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions192,070 70 (14,188)$177,952 $20 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
10,758  (1,692)9,066  
Private label mortgage and asset backed securities
54,579  (5,944)48,635 11 
Corporate debt securities46,086  (4,736)41,350 1,020 
Total held-to-maturity$303,493 $70 $(26,560)$277,003 $1,051 

13


Proceeds and gross realized gains (losses) from the sales or calls of available-for-sale investment securities for the periods ended March 31, 2024 and 2023 are shown below (in thousands):
For the Three Month
Ended March 31,
Available-for-Sale Securities20242023
Proceeds from sales or calls$5,700 $12,066 
Gross realized gains from sales or calls  
Gross realized losses from sales or calls(373)(219)

The provision for income taxes includes a $110,000 and $65,000 income tax benefit from security sales for the three months ended March 31, 2024 and 2023.

The amortized cost and estimated fair value of available-for-sale and held-to maturity investment securities at March 31, 2024 by contractual maturity is shown below (in thousands).  Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

March 31, 2024December 31, 2023
Available-for-Sale SecuritiesAmortized CostEstimated Fair
Value
Amortized CostEstimated Fair
Value
Within one year$ $ $ $ 
After one year through five years15,662 13,754 9,992 8,954 
After five years through ten years34,482 30,340 40,264 35,379 
After ten years157,157 143,189 157,804 144,843 
 207,301 187,283 208,060 189,176 
Investment securities not due at a single maturity date:  
U.S. Government agencies100 92 102 95 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
86,205 80,798 88,874 83,352 
Private label mortgage and asset backed securities349,919 305,361 372,610 324,573 
Total available-for-sale$643,525 $573,534 $669,646 $597,196 

March 31, 2024December 31, 2023
Held-to-Maturity SecuritiesAmortized CostEstimated Fair
Value
Amortized CostEstimated Fair
Value
Within one year$ $ $ $ 
After one year through five years8,492 8,142 8,463 8,136 
After five years through ten years74,868 68,489 74,746 68,552 
After ten years108,739 99,574 108,861 101,264 
192,099 176,205 192,070 177,952 
Investment securities not due at a single maturity date:
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations10,841 8,831 10,758 9,066 
Private label mortgage and asset backed securities54,354 48,616 54,579 48,635 
Corporate debt securities46,112 41,241 46,086 41,350 
Total held-to-maturity$303,406 $274,893 $303,493 $277,003 
14



At March 31, 2024 there were five issuers of private label mortgage securities in which the Company had holdings of securities in amounts greater than 10% of shareholders’ equity. Investments with these issuers were in senior tranches and/or were rated “AAA” or higher and there were no credit issues identified.

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): 
 March 31, 2024
 Less than 12 Months12 Months or MoreTotal
 FairUnrealizedFairUnrealizedFairUnrealized
Available-for-Sale SecuritiesValueLossesValueLossesValueLosses
Debt securities:      
U.S. Treasury securities
$ $ $8,878 $(1,112)$8,878 $(1,112)
U.S. Government agencies
  92 (8)92 (8)
Obligations of states and political subdivisions
  178,405 (18,906)178,405 (18,906)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
375 (7)80,225 (5,404)80,600 (5,411)
Private label mortgage and asset backed securities
856 (8)304,451 (44,557)305,307 (44,565)
Total available-for-sale$1,231 $(15)$572,051 $(69,987)$573,282 $(70,002)

 December 31, 2023
 Less than 12 Months12 Months or MoreTotal
 FairUnrealizedFairUnrealizedFairUnrealized
Available-for-Sale SecuritiesValueLossesValueLossesValueLosses
Debt securities:     
U.S. Treasury securities$ $ $8,954 $(1,036)$8,954 $(1,036)
U.S. Government agencies
  95 (7)95 (7)
Obligations of states and political subdivisions
  180,222 (17,848)180,222 (17,848)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
392 (3)82,760 (5,522)83,152 (5,525)
Private label mortgage and asset backed securities
  323,655 (48,047)323,655 (48,047)
Total available-for-sale$392 $(3)$595,686 $(72,460)$596,078 $(72,463)

As of March 31, 2024, the Company had a total of 173 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting of 6 U.S. Treasury securities and U.S. Government agencies, 43 obligations of states and political subdivisions, 48 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 76 private label mortgage and asset backed securities.

Allowance for Credit Losses on Available-for-Sale Debt Securities

Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale securities at March 31, 2024. As of that date, the Company considers the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. As of March 31, 2024, the Company determined that it is not more likely than not that there is an intention to sell securities or that the Company would be required to sell securities.

The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate increases and liquidity and were mainly comprised of the following:
15



Obligations of States and Political Subdivisions: The unrealized losses on investments in obligations of states and political subdivisions are caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment.
U.S. Treasury and Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations: The unrealized losses on the Company’s investments in U.S. treasuries and government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment.
Private Label Mortgage and Asset Backed Securities: The Company has invested exclusively in AA and AAA tranches of various private label mortgage and asset backed securities. Each purchase is subject to a credit and structure review prior to their purchase. Ratings are reviewed on a quarterly basis in addition to other metrics provided through third-party services. Following review of the financial metrics and ratings, management concluded that the unrealized loss position of the private label mortgage and asset backed securities related exclusively to the fluctuation in market conditions and were not reflective of any credit concerns with the tranches comprising the Company’s investments.

No allowance for credit losses have been recognized on AFS debt securities in an unrealized loss position, as management does not believe that any of the securities are impaired due to credit risk factors as of March 31, 2024 and December 31, 2023.

Allowance for Credit Losses on Held-to-Maturity Debt Securities

The Company separately evaluates its HTM debt securities for any credit losses based on probability of default and loss given default utilizing historical industry data based on investment category, while also considering reasonable and supportable forecasts. The probability of default and loss given default are incorporated into the present value of expected cash flows and compared against amortized cost.

The allowance for credit losses on HTM securities was $894,000 at March 31, 2024. The allowance for credit losses on HTM securities is driven by economic scenarios, estimated probabilities of default and loss given default. Economic scenarios are updated quarterly.

The following table shows the summary of activities for the allowance for credit losses related to held-to-maturity debt securities for the three months ended March 31, 2024 and 2023 (in thousands):
For the Three Months Ended March 31,
Debt Securities Held-to-Maturity20242023
Beginning ACL balance$1,051 $— 
Impact of adoption of ASU 2016-13— 776 
Credit to credit losses(157)(92)
Total Ending ACL balance$894 $684 

During the three month period ended March 31, 2024, the credit to credit losses for held-to-maturity securities was primarily driven by improving economic scenarios and improvements in the probabilities of loss given default. Management believes that the allowance for credit losses for held-to-maturity securities at March 31, 2024 appropriately reflected expected credit losses at that date.

The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. For non-rated investment securities, management receives quarterly performance updates to monitor for any credit concerns. There were no HTM securities on nonaccrual or past due over 89 days and still on accrual. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator. U.S. Government sponsored agencies are not included in the below tables as credit ratings are not applicable.
16


March 31, 2024
Debt Securities Held-to-Maturity (in thousands)AAA/AA/ABBBUnrated
Obligations of states and political subdivisions$192,099 $ $ 
Private label mortgage and asset backed securities
46,316  8,038 
Corporate debt securities 30,182 15,930 
Total debt securities held-to-maturity$238,415 $30,182 $23,968 

Note 4.  Loans and Allowance for Credit Losses on Loans
 
The majority of the disclosures in this footnote are prepared at the class level, which is equivalent to the call report or call code classification. The roll forward of the allowance for credit losses is presented at the portfolio segment level. Accrued interest receivable on loans of $4,752,000 and $4,512,000 at March 31, 2024 and December 31, 2023 respectively is not included in the loan tables below and is included in other assets on the Company’s balance sheets. Outstanding loans are summarized by class as follows:
Loan Type (Dollars in thousands)March 31, 2024December 31, 2023
Commercial:  
Commercial and industrial$86,918 $105,466 
Agricultural production24,982 33,556 
Total commercial111,900 139,022 
Real estate:  
Construction & other land loans28,350 33,472 
Commercial real estate - owner occupied209,777 215,146 
Commercial real estate - non-owner occupied560,492 539,522 
Farmland117,015 120,674 
Multi-family residential61,993 61,307 
1-4 family - close-ended95,575 96,558 
1-4 family - revolving29,442 27,648 
Total real estate1,102,644 1,094,327 
Consumer69,886 55,606 
Total gross loans1,284,430 1,288,955 
Net deferred origination costs 2,179 1,842 
Loans, net of deferred origination costs1,286,609 1,290,797 
Allowance for credit losses(14,658)(14,653)
Total loans, net$1,271,951 $1,276,144 

At March 31, 2024 and December 31, 2023, loans originated under Small Business Administration (SBA) programs totaling $17,435,000 and $18,246,000, respectively, were included in the real estate and commercial categories, of which, $13,343,000 or 77% and $13,955,000 or 76%, respectively, are secured by government guarantees.

Allowance for Credit Losses on Loans

The measurement of the allowance for credit losses on collectively evaluated loans is based on modeled expectations of lifetime expected credit losses utilizing national and local peer group historical losses, weighting of economic scenarios, and other relevant factors. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of credit losses within the portfolio. The Company uses a probability-weighted, multiple scenario forecast approach. These scenarios may consist of a base forecast representing the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions.

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for credit losses on an individual loan basis. There were no loans on nonaccrual or individually evaluated as of March 31, 2024 or December 31, 2023.

17


The following table shows the summary of activities for the allowance for credit losses for the three months ended March 31, 2024 and 2023 by portfolio segment (in thousands):
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
Allowance for credit losses:    
Beginning balance, January 1, 2024$1,475 $9,792 $2,435 $951 $14,653 
Provision (credit) for credit losses (1)
9 474 (246)293 530 
Charge-offs(507)  (68)(575)
Recoveries 24  26 50 
Ending balance, March 31, 2024$977 $10,290 $2,189 $1,202 $14,658 
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $575 includes a $(157) credit for held-to-maturity securities and a $202 provision for unfunded loan commitments.
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerUnallocatedTotal
Allowance for credit losses:     
Beginning balance, January 1, 2023 prior to adoption of ASU 2016-13 (CECL)$1,814 $7,803 $607 $284 $340 $10,848 
Impact of adoption of ASU 2016-13454 1,693 1,614 489 (340)3,910 
(Credit) provision for credit losses (1)
(240)569 64 125  518 
Charge-offs(322)0  (32) (354)
Recoveries322   13  335 
Ending balance, March 31, 2023$2,028 $10,065 $2,285 $879 $ $15,257 
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $633 includes a $(92) credit for held-to-maturity securities and a $207 provision for unfunded loan commitments.

During the three month period ended March 31, 2024, the provision for credit losses was primarily driven by loan growth and net charge-off activity. Management believes that the allowance for credit losses at March 31, 2024 appropriately reflected expected credit losses in the loan portfolio at that date.

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated (in thousands):