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With 2025 approaching its halfway point, local community banks have released their first-quarter earnings reports for 2025.

Rising net interest margins, steady loan growth and a focus on operational efficiency or financial stability defined regional banks’ first-quarter performance, which reflected the banks adapting to higher rates and market uncertainty.

Bank of the Sierra

Porterville-based Sierra Bancorp, parent company of Bank of the Sierra, reported slightly lower earnings in the first quarter this year at $9.1 million, or $0.65 per share, compared to $9.3 million, or $0.64 per share, in the first quarter of 2024.

Despite the decline, Sierra Bancorp’s net interest income increased by $1.4 million to reach $30.1 million. The improvement in this area was attributed to lower interest costs and higher loan yields.

Their net interest margin, which shows how much profit they’re making from loans, increased to 3.74% from 3.62% last year.

“As we navigate the uncertainty impacting our global and local economy, our banking team has worked diligently to produce consistently solid results,” said Kevin McPhaill, CEO and president of Bank of the Sierra. “These efforts resulted in growth of both commercial and real estate loans, as well as increases in each category of customer transaction deposits in the first quarter of 2025. Net interest margin and efficiency ratio also improved.”

However, loan losses rose, with Sierra Bancorp setting aside $1.9 million for potential credit losses. This was due to an increase in nonperforming loans. Despite this, the bank managed to improve its efficiency, cutting costs and running more effectively as it lowered its efficiency ratio from 65.97% to 60.62%.

Community West Bank

Fresno-based Community West Bancshares, the parent company of Community West Bank, reported first-quarter net income of $8.3 million, or 44 cents per diluted share, more than double the earnings from the same time last year. The bank earned $3.7 million, or 31 cents per share, in the first quarter of 2024.

The increase was driven by higher net interest income and improved margins. Net interest income increased from $19.1 million in 2024 to $32.2 million in 2025, nearly a 70% increase. The bank’s net interest margin climbed to 4.04%, up from 3.42% in the same quarter last year.

Due to the company’s 2024 merger with Central Valley Community Bancorp, which it called the largest in its history, total average loans increased to $2.33 billion. The effective yield on average loans rose to 6.69%, while the cost of total deposits increased to 1.45%.

“Our team’s commitment to empowering communities across Central California through trusted client advocacy is especially valued in uncertain economic environments,” said James J. Kim, president and CEO of the bank. “Backed by more than four decades of conservative business practices, deposit stability and enduring client relationships, the Company remains a safe and stable financial partner. Even amid capital market volatility driven by shifting tariff policies, our team’s unwavering focus on client success continues to define and differentiate us.”

Citizens Business Bank

Ontario-based CVB Financial Corp, the holding company for Citizens Business Bank, reported net income of $51.1 million for the first quarter of 2025, a slight increase from $50.9 million in the fourth quarter of 2024 and up from $48.6 million this time last year. Diluted earnings per share remained stable at $0.36, which was unchanged from the previous quarter and up one cent from the same period last year.

In the first quarter, its net interest margin improved to 3.31%, up from 3.18% in the prior quarter.

Net interest income totaled $110.4 million, unchanged from the prior quarter. Noninterest income climbed to $16.2 million, up from $15.6 million in the fourth quarter, helped by a $2.2 million gain on sales of other real estate owned.

The average dairy and livestock loan dropped $168 million, or 44%, from the fourth quarter due to paydowns and payoffs.

The return on average assets was 1.37%, while the return on average tangible common equity was 14.51%. Tangible common equity accounted for 10% of total assets.

CVB has now posted 192 consecutive quarters of profitability and 142 straight quarters of paying cash dividends, the company said.

“Citizens Business Bank’s performance in the first quarter demonstrates our continued financial strength and focus on our vision of serving the comprehensive financial needs of small to medium-sized businesses and their owners,” said David Brager, the president and CEO of Citizens Business Bank. “Our consistent financial performance is highlighted by our 192 consecutive quarters, or 48 years, of profitability, and our 142 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”

Fresno First Bank

FFB Bancorp, the parent company of FFB Bank in Fresno, reported net income of $8.10 million, or $2.55 per diluted share, for the first quarter of 2025, which was a 4% increase from the $7.79 million, or $2.46 per diluted share, in the first quarter of 2024.

Pre-tax, pre-provision income rose 10% to $12.01 million, and net interest income grew 17% to $18.90 million.

Net interest margin expanded by 20 basis points to 5.35%. Operating revenue for the quarter increased 21% to $28.48 million. Total assets rose 12% to $1.56 billion, with loan growth of 18% to $1.09 billion and deposits increasing by 10% to $1.32 billion. Book value per common share grew 27% to $55.52. The company also repurchased $3.42 million in stock as part of its $15 million repurchase program.

“In spite of the general market headwinds, and the constant noise surrounding potential policy changes, our first quarter 2025 results still came in quite strong because the team was able to stay focused on the basics,” said Steve Miller, President & CEO. “The loan portfolio increased $21 million, deposits grew $36 million, and total assets grew $56 million. In addition, we were able to record strong earnings while improving our book value per common share through our strategic share repurchase program.”