Central Valley Community Bancorp and Community West Bancshares to Merge

Central Valley Community Bancorp (NASDAQ:CVCY) and Community West Bancshares (NASDAQ:CWBC) have announced a merger agreement that will see the two companies combine in an all-stock transaction. The merger will bring together Central Valley Community Bank’s 20 full-service Banking Centers in eight counties with Community West Bank’s seven full-service banking offices in Santa Barbara, Ventura, and San Luis Obispo Counties.

The merger, subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of 2024. Under the terms of the agreement, Community West Bancshares shareholders will receive 0.79 shares of Central Valley Community Bancorp common stock for each share of Community West Bancshares common stock. Based on the closing price of Central Valley Community Bancorp stock on October 10, 2023, the transaction is valued at $99.4 million, or $11.15 per Community West Bancshares common share.

The combined company will retain the banking offices of both banks, with no branch closings anticipated as a result of the merger. Upon closing, the resulting company will assume the name of Community West Bancshares, and Central Valley Community Bank will assume the name Community West Bank. The combined company’s board of directors will consist of 15 directors, with nine current directors from Central Valley Community Bancorp and six current directors from Community West Bancshares.

James J. Kim, President and CEO of Central Valley Community Bank and Central Valley Community Bancorp, will lead the combined bank’s team of executives and professional bankers as CEO of the resulting company. Martin E. Plourd, CEO and Director of Community West Bank and Community West Bancshares, will serve as President and Director of the combined company. Daniel J. Doyle, Central Valley Community Bancorp Chairman of the Board, will serve as Chairman of the Board of the combined company, and Robert H. Bartlein, Community West Bank Chairman of the Board, will serve as Vice Chairman of the Board.

The merger between Central Valley Community Bancorp and Community West Bancshares marks the sixth acquisition for Central Valley Community Bancorp, further strengthening its position as one of Central California’s largest community banks. The combined company will have approximately $3.6 billion in total assets.

James J. Kim, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank, expressed excitement about the merger, stating that the combination of the two organizations will create a stronger franchise in Central California, offering enhanced services and greater earnings power for shareholders. Kim also highlighted the shared values and commitment to community that both banks possess.

Martin E. Plourd, CEO and Director of Community West Bank and Community West Bancshares, echoed Kim’s sentiments, emphasizing the opportunity for growth and expanded service areas that the merger will bring. Plourd believes that operating as a single, united company will provide unprecedented value to stakeholders, with strengthened leadership, enhanced products and services, and an expanded branch network.

The merger between Central Valley Community Bancorp and Community West Bancshares represents a strategic move that will benefit both companies and their stakeholders. By combining their resources and expertise, the resulting company will be well-positioned to serve clients and communities with integrity and contribute to the growth and development of Central California.