Community West Bank Facebook photo

Central Valley Community Bank unveiled on Tuesday the signing of an all-stock merger agreement with Community West Bank headquartered near Santa Barbara.

The deal, expected to close in the second quarter of 2024, is valued at $99.4 million based on Central Valley Community Bank’s stock price at market close Tuesday.

The merger also means a new name for Central Valley Community Bank, which will become Community West Bank under parent company Community West Bancshares headquartered in Goleta.

Central Valley Community Bank was founded by local business owners in 1979 with a dozen professional bankers and assets of $2 million. Today it has 20 full-service branches in eight California counties. With the addition of Community West Bank’s seven branches in Santa Barbara, Ventura and San Luis Obispo counties, the combined banking entity will have $3.6 billion in total assets.

The transaction is subject to customary closing conditions, including regulatory and shareholder approval from both parties. The Central Valley Community Bancorp and Community West Bancshares boards have unanimously approved the transaction.

James J. Kim, president and CEO of Central Valley Community Bank, will lead the combined bank’s team of executives and professional bankers as CEO. Martin E. Plourd, CEO and director of Community West Bank, will serve as president and director of the combined company. Daniel J. Doyle, Central Valley Community Bancorp board chairman, will chair the combined company.

The Community West Bancshares merger will become the sixth for Central Valley Community Bancorp, which acquired Sacramento-area institutions Folsom Lake Bank in 2017 and Sierra Vista Bank in 2016. Mergers with Visalia Community Bank, Service 1st Bank and Bank of Madera County were completed between 2005 and 2013.

“Central Valley Community Bank has steadily and profitably grown for over 43 years, building a highly attractive franchise in California’s San Joaquin Valley and Greater Sacramento region,” stated Kim, Central Valley Community Bank president and CEO. “The complementary culture, client service model and Central Coast presence of Community West Bank further the opportunity for Company growth in well-recognized Central California communities, creating a combined franchise whose strength and size continue to serve clients and communities with integrity, offering enhanced professional employee development opportunities and greater earnings power for shareholders.”

“Uniting our two great organizations under the single name of Community West Bank brings our unique brand of relationship banking and experienced bankers to more communities in an expanded service area, with the strength of one of Central California’s largest community banks,” Kim added.

Under the terms of the agreement, Community West Bancshares shareholders will be entitled to receive 0.79 shares of Central Valley Community Bancorp common stock for each share of Community West Bancshares common stock.

Existing Central Valley Community Bancorp shareholders will own approximately 63% of the outstanding shares following the merger, and Community West Bancshares shareholders will own approximately 37%.

At the close of the transaction, the combined company will retain the banking offices of both banks and anticipates no branch closings as a result of the merger. The combined company’s board of directors will have 15 directors, consisting of nine current directors from Central Valley Community Bancorp and six current directors from Community West Bancshares.

Community West Bank is the largest publicly traded community bank (by assets) serving California’s Central Coast area of Ventura, Santa Barbara and San Luis Obispo Counties. The principal business activities of the Company are relationship banking, manufactured housing lending and government guaranteed lending.

Members of Central Valley Community Bancorp’s board of directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), F. T. “Tommy” Elliott, IV, Robert J. Flautt, Gary D. Gall, James J. Kim, Andriana D. Majarian, Steven D. McDonald, Louis McMurray, Karen A. Musson, Dorothea D. Silva and William S. Smittcamp. 

Central Valley Community Bancorp received financial advisory services and a fairness opinion from Janney Montgomery Scott LLC, and Buchalter, a professional corporation, served as legal counsel. Community West Bancshares received financial advisory services and a fairness opinion from Piper Sandler & Co., and Husch Blackwell LLP served as legal counsel.