CWBC

MKT CAP $694MP/E 13.8DIV YIELD 1.88%FCF YIELD 6.91%REV TTM —NET INCOME $36.2M +37.2%NET CASH $137.3M52W 20.93 – 28.02SEC XBRL · TTM TO Invalid Date

How CWBC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

86%

of sentences unchanged

Added

new sentences

Dropped

sentences removed

Length

+225

words, now 8,287

New in FY2025

Inflation began to rise sharply at the end of 2021 and remained at an elevated level through 2023 before decreasing in 2025.
Changes to trade policies and tariffs can have an adverse impact on our business and our customers.
Changes in trade policies, including the imposition of tariffs or the escalation of a trade war, could negatively impact the economic conditions in the markets we serve.
Our customers, particularly local businesses engaged in manufacturing and retail, may face higher costs for imported goods and materials, reduced export demand and supply chain disruptions due to increased tariffs.
These challenges could lead to lower revenues, reduced profitability and potential layoffs, all of which may impair our customers’ ability to meet their financial obligations.
Furthermore, prolonged trade tensions and economic uncertainty could lead to market volatility, declining asset values and weakened consumer confidence.
If our customers experience financial stress, we could see loan delinquencies and credit losses, negatively affecting our asset quality and overall financial performance.
Additionally, any decline in local economic activity could reduce loan demand and deposit growth, which are critical to our long-term success.
While we actively monitor economic and policy developments, we cannot predict the outcome of trade negotiations or the full impact of tariffs and trade restrictions on our business, customers, and the broader economy.
Any adverse effects from tariffs or a trade war could materially and negatively impact our financial condition, results of operations, and future growth prospects.
As of December 31, 2025, we had a net unrealized loss of $39,881,000 on our available for-sale investment securities portfolio.
Our investment securities totaled $763,324,000, or 20.7% of total assets, at December 31, 2025.
As of December 31, 2025, approximately $34.2 million, or 1.3% of our total gross loan portfolio was comprised of agribusiness loans.
At December 31, 2025, $1.93 billion, or 76.1% of our total loan and lease portfolio, consisted of real estate related loans.
Banking regulators give commercial real estate lending a high level of scrutiny, and may require banks with higher levels of commercial real estate loans to implement improved underwriting, internal controls, risk management policies and portfolio stress testing, as well as possibly higher levels of allowances for losses and capital levels as a result of commercial real estate lending growth and exposures.
At December 31, 2025, commercial loans totaled $156.7 million or 6.2% of our loan portfolio (including SBA loans, asset-based lending, and factored receivables).
This allowance, expressed as a percentage of loans, was 1.18%, at December 31, 2025.
We had a provision for credit losses on loans of $3,754,000 for the year ended December 31, 2025.
At December 31, 2025, our non-performing loans and leases were 0.27% of total loans and leases compared to 0.28% at December 31, 2024, and 0.00% at December 31, 2023.
Our non-performing assets (which include foreclosed real estate) were 0.19% of total assets as of December 31, 2025 compared to 0.18% at December 31, 2024.
The allowance for credit losses as a percentage of non-performing loans and leases was 432.37% as of December 31, 2025 compared to 399.37% at December 31, 2024.
As of December 31, 2025, the carrying value of our securities portfolio was approximately $763,324,000.
To attract and retain personnel with appropriate skills and knowledge to support our business, we may offer a variety of benefits, which could reduce our earnings or have a material adverse effect on our business, financial condition and results of operations.
There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed, such as the market for digital assets.
We have a continuing need for new technology, and we may not have the resources to implement new technology effectively, or we may experience operational challenges when implementing new technology or technology needed to compete effectively with larger institutions may not be available to us on a cost-effective basis.
Information security risks for financial institutions such as us have increased recently in part because of new technologies, such as artificial intelligence, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.

Gone since FY2024

Inflation began to rise sharply at the end of 2021 and remained at an elevated level through 2023 before decreasing in 2024.
As of December 31, 2024, we had a net unrealized loss of $59,221,000 on our available for-sale investment securities portfolio as a result of the rising interest rate environment.
Our investment securities totaled $785,058,000, or 22.3% of total assets, at December 31, 2024.
As of December 31, 2024, approximately $37.3 million, or 1.6% of our total gross loan portfolio was comprised of agribusiness loans.
At December 31, 2024, $1.74 billion, or 74.3% of our total loan and lease portfolio, consisted of real estate related loans.
Banking regulators are giving commercial real estate lending greater scrutiny, and may require banks with higher levels of commercial real estate loans to implement improved underwriting, internal controls, risk management policies and portfolio stress testing, as well as possibly higher levels of allowances for losses and capital levels as a result of commercial real estate lending growth and exposures.
At December 31, 2024, commercial loans totaled $143.4 million or 6.1% of our loan portfolio (including SBA loans, asset-based lending, and factored receivables).
This allowance, expressed as a percentage of loans, was 1.11%, at December 31, 2024.
We had a provision for credit losses on loans of $10,792,000 for the year ended December 31, 2024.
At December 31, 2024, our non-performing loans and leases were 0.28% of total loans and leases compared to 0.00% at December 31, 2023, and 0.00% at December 31, 2022, and our non-performing assets (which include foreclosed real estate) were 0.18% of total assets compared to 0.00% at December 31, 2023.
The allowance for credit losses as a percentage of non-performing loans and leases was 399.37% as of December 31, 2024 compared to 14,653.00% at December 31, 2023.
As of December 31, 2024, the carrying value of our securities portfolio was approximately $785,058,000.
In addition, to attract and retain personnel with appropriate skills and knowledge to support our business, we may offer a variety of benefits, which could reduce our earnings or have a material adverse effect on our business, financial condition and results of operations.
There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed.
We have a continuing need for technological change, and we may not have the resources to implement new technology effectively, or we may experience operational challenges when implementing new technology or technology needed to compete effectively with larger institutions may not be available to us on a cost-effective basis.
Information security risks for financial institutions such as us have increased recently in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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