Communit y West Bancshares
Cornerstone
of Your Community
ANNUAL REPOR T 2017
The Cornerstone
of Your Community
The organic office expansion in our market along California’s
Central Coast and the resulting loan and deposit growth
was a highlight of our 2017 results.
The Cornerstone
of Your Community
The strength of the economy in our marketplace continues to sustain and build
our community banking franchise with strong on-going demand for our high-
service approach to lending, deposit and cash management programs. While
2017 capped another year of growth and profitability for Community West Bancshares,
it also brought significant challenges to the communities of Ventura and Santa
Barbara, with the Thomas Fire breaking out on December 4, and growing to become
the largest wildfire in California history. This fire, followed by mudslides a month later,
destroyed homes and businesses, and caused tragic loss of life.
Long after the flames have been extinguished, the Thomas Fire and subsequent
flooding will leave scars on the lives of our neighbors and friends, as well as on the
local economies we serve. Community West Bank has many employees and customers
who live and work in the communities affected by the fire, and we thank the brave
men and women – from all across California and from outside of our great state – who
came together to fight the fire. The Thomas Fire Fund was established to help those
directly affected by the fire, and Community West Bank made a $25,000 contribution
to the fund.
Among several bank performance highlights in 2017, total assets surpassed $800
million for the first time in Community West’s history, increasing 17.3% to $833.3
million, from $710.6 million the previous year. Total deposits grew 14.3% to $699.7
million, up from $612.2 million a year earlier, and non-interest bearing deposits
increased 8.1% to $108.5 million at December 31, 2017.
Total loans reached $734.6 million, up 16.4% from $630.8 million at the end of 2016,
and nonaccrual loans were $4.5 million, or 0.61% of total loans at year end 2017. We
have maintained a net interest margin above 4%, due to our above industry-average
loan yields and loan interest recoveries.
Over the last four years, the communities we serve have witnessed a collapse in the
number of community banks, with 10 of 14 locally owned and managed community
banks being swept up in acquisitions and consolidation. We see this presenting a
great opportunity for Community West Bank to fulfill its original mission: To serve our
community like no one else. Because it’s our home, and we take care of our own.
Back in 1989, our bank was established as Goleta National Bank, and our founders
envisioned it as a cornerstone in Goleta’s effort to establish itself as a stand-alone city.
The goal was to be the bank that provided needed capital and financial services to a
community in ways which were not being provided by larger, non-local banks.
Today, Goleta National Bank has become Community West Bank, the largest publicly
traded and only community bank headquartered and serving California’s Central
Coast communities in Ventura, Santa Barbara and San Luis Obispo counties. Our loan
production office established in Paso Robles last year will move to a new full-service
branch office that is currently under construction and scheduled to open later this
year. This expands our service area to eight distinct communities, from Westlake
Village in the south to Paso Robles in the north.
Our time has come. We have the opportunity, as well as the responsibility, to serve our
communities like no other bank. Now, more than ever, we are well positioned to meet
that goal of being the “cornerstone bank” envisioned by our founders – to serve our
communities’ needs and to serve them well. We appreciate the continued support
from you, our shareholders, as we pursue our growth opportunities.
William R. Peeples
Chairman of the Board
Martin E. Plourd
President/Chief Executive Officer
New Community West Bank full-service branch offices opened
in Oxnard, San Luis Obispo and Santa Maria in 2017 to better serve those communities, and a Paso
Robles business loan production office also opened. A full-service branch office currently under
construction in downtown Paso Robles will open before year end. We are committed to being the bank
of choice in all of the communities we serve, from Westlake Village to Paso Robles.
Our clients count on experienced Community West Bank relationship managers, community banking
managers and staff to provide personal service and local market knowledge to assist them with the
financing, cash management and deposit services they require. We believe that local deposits should
be put to work locally, and our employees are committed to supporting the communities in which they
live and work, donating their time and talents to numerous nonprofit and community organizations.
As the largest publicly traded bank headquartered and serving California’s Central Coast communities
in Ventura, Santa Barbara and San Luis Obispo counties, Community West Bank is large enough to
accommodate sophisticated business financing needs while maintaining the flexibility of a responsive,
locally owned and managed community bank. Check us out at www.CommunityWestBank.com.
Relationship Banking
Commercial Lending
Our bank’s motto is “Let’s Work Together” and it
accurately summarizes the way Community West
Bank chooses to do business. As true community
bankers, our outstanding team of professionals are
committed to working with clients to help them
prosper. We’re proud to offer exceptional service
throughout our community – to individuals, families,
businesses, nonprofit organizations and public
entities.
We offer the complete range of services and
capabilities that you would expect from a full-service
financial institution, provided with the personal
care that sets us apart from larger, non-local banks.
Community West Bank provides a wide variety of
deposit accounts and loans, and the convenience of
electronic cash management services. It’s the way
our bankers deliver those services, every day, with an
uncommon level of care and attention to detail, that
builds trust and close banking relationships with our
clients.
You have many choices when selecting the bank
that’s right for you – we want to be your best choice.
Let’s work together!
We first opened our doors in 1989 as a small local
business, Goleta National Bank. From those humble
roots, Community West Bank has developed a
first-hand understanding and appreciation for the
specific needs of our business clients, and therefore
we are better able to make well guided local lending
decisions based on knowledge of the communities
we serve. From revolving lines of credit, term loans
and commercial real estate financing, to agribusiness
financing, equipment loans and SBA loans, we offer
the right financing solutions for local businesses.
Among the many business cash management
services we provide are remote deposit capture,
online banking and bill pay, mobile banking, ACH
processing, positive pay, merchant card processing,
domestic and international wire transfers and
business credit cards. Our clients tell us that
immediate access to trusted advisors, flexible
financing and rapid turnaround are among the
most important considerations when choosing
to do business with Community West Bank. Our
background and experience in tailoring financing
to fit business goals is what sets us apart.
Agricultural Lending
Community West Bank supports agricultural and
agribusiness clients, whether it’s an agricultural mortgage
loan for land acquisition, refinancing existing debt or
financing capital improvements. We understand that the
challenges faced by agricultural businesses are different
from our other business clients, and require expertise,
dedication and experience from their banker.
We are an approved lender for Farmer Mac, offering long
term fixed rates, and have been the predominant USDA
Farm Service Agency lender under the Farm Ownership
Program for the past 5 years in a row. Community West
Bank has dedicated staff and resources focusing on the
opportunities afforded by these programs to serve the
agricultural sector throughout California.
Government Guaranteed Lending
Manufactured Home Lending
Since Community West Bank started providing government
guaranteed lending, our business clients have received
over $700 million in funding for commercial space,
expansion and capital improvements. Our bank has earned
the designation of “Preferred Lender” by the U.S. Small
Business Administration (SBA), which allows us to expedite
the processing of SBA loan applications with in-house
approvals and rapid loan closings. For more than two
decades, Community West Bank has offered SBA loan
programs, as well as the U.S. Department of Agriculture
(USDA) Business & Industry and California Coastal Rural
Development loan programs for businesses in rural areas.
For the past 17 years, Community West Bank has become
the premier manufactured home lender in Santa Barbara
County and we are increasing our market share in Ventura
and San Luis Obispo counties. We lend in coastal California
communities from San Diego to San Francisco, and have
strong relationships with the top four largest manufactured
home dealers in California in order to focus on the new home
market. Manufactured home loans are retained in the bank’s
portfolio and currently have a delinquency rate of less than
1%. At the end of 2017, Community West Bank held more
than 1,800 manufactured home loans in over 300 mobile
home parks.
Community Involvement
Community West Bank, and our employees, proudly support non-profit
and community organizations throughout Ventura, Santa Barbara
and San Luis Obispo counties.
American Heart Association
Arthritis Foundation
Blanche Reynolds Elementary School
Boys & Girls Club of Greater Oxnard
and Port Hueneme
Boys & Girls Club of North SLO County
Boys & Girls Club of Ventura
Buena Girls Soccer
California Society of CPAs
California Women for Agriculture
Central Coast Alliance United for
Sustainable Economy
Central Coast Economic Forecast
Central Coast Veterans Helping Veterans
Children’s Creative Project
Chumash Education Center
Clinicas del Camino Real
Court Appointed Special Advocates
of SLO County
Dog Adoption and Welfare Group
Dos Pueblos Little League
Economic Vitality Corporation
of SLO County
Festivals for a Cause
Fiestas Patrias
Food Bank Coalition of SLO County
French Hospital Foundation
GenSpan Foundation
Goleta Valley Chamber of Commerce
Goleta Valley Cottage Hospital Foundation
Goleta Valley Historical Society
Grower-Shipper Association
of Central California
Greater Conejo Valley Chamber
of Commerce
Habitat for Humanity of Southern
Santa Barbara County
Housing Authority of SLO County
Inferno Youth Sports
Kellogg Elementary School
Legal Aid Foundation of SB County
Lifewater International
Meals That Connect
Montessori Center School
Neal Taylor Nature Center
North County Rape Crisis and
Child Protection Center
Northern Santa Barbara County United Way
Oakheart Country Music Festival
Old Spanish Days
Oxnard Ambassadors
Oxnard Chamber of Commerce
Page Youth Center
Paso Robles Chamber of Commerce
People’s Self-Help Housing
Rebozo Festival
Rio Mesa Athletic Booster Club
Rotary Club of Goleta
Rotary Club of Westlake Village
San Luis Obispo Chamber of Commerce
Santa Barbara Association of Realtors
Santa Barbara Chamber of Commerce
Santa Barbara Community Housing
Corporation
Santa Barbara County Fair
Santa Barbara Elks Lodge
Santa Barbara Family YMCA
Santa Barbara Foresters
Santa Barbara Zoological Foundation
Santa Maria Chamber of Commerce
Santa Maria Elks Club Rodeo
Santa Maria Police Council
Santa Maria Valley Contractors Association
Scholarship Foundation of Santa Barbara
Science and Engineering Council
of Santa Barbara
Sheridan Way Elementary School
UCSB Economic Forecast Project
United Boys & Girls Clubs of Santa Barbara
County
United Way of Santa Barbara
United Way of Ventura County
Thomas Fire Fund
Unity Shoppe
Ventura Chamber of Commerce
Ventura County Contractors Association
Ventura County Medical Resource
Foundation
Ventura Unified School District
Westmont College Foundation
Women’s Shelter Program of SLO County
YMCA
2017 Financials Snapshot
Results of Operations:
Interest income
Interest expense
Net interest income
Provision (credit) for loan losses
Net interest income after provision for loan losses
Non-interest income
Non-interest expenses
Income before income taxes
Provision (benefit) for income taxes
Net income
Dividends and accretion on preferred stock
Discount on partial redemption of preferred stock
Year Ended December 31,
2017
2016
2015
2014
2013
(in thousands, except per share amounts)
$37,391
$32,216
$30,222
$28,004
$27,866
4,729
3,127
32,662
29,089
411
32,251
2,950
24,738
10,463
5,548
4,915
-
-
(48)
29,137
2,253
22,548
8,842
3,613
5,229
-
-
2,516
27,706
(2,274)
29,980
2,309
27,281
5,008
2,138
2,870
445
(129)
3,275
24,729
(5,135)
29,864
2,197
20,081
11,980
4,934
7,046
937
(159)
4,332
23,534
(1,944)
25,478
2,831
22,135
6,174
(2,812)
8,986
1,039
-
Net income available to common stockholders
$4,915
$5,229
$2,554
$6,268
$7,947
Per Share Data:
Income per common share - basic
Weighted average shares outstanding - basic
Income per common share - diluted
Weighted average shares outstanding - diluted
Book value per common share
Selected Balance Sheet Data:
Net loans
Total assets
Total deposits
Total liabilities
$0.60
8,146
$0.57
8,589
$8.55
$0.64
8,114
$0.62
8,444
$8.07
$0.31
8,203
$0.30
8,491
$7.55
$0.77
8,141
$0.75
8,505
$7.31
$1.13
7,017
$0.98
8,390
$6.60
726,189
623,355
536,546
487,256
462,005
833,315
710,572
621,213
557,318
539,000
699,684
612,236
544,338
477,084
436,135
763,245
645,236
559,269
490,311
471,444
Total stockholders' equity
70,070
65,336
61,944
67,007
67,556
Selected Financial and Liquidity Ratios:
Return on average stockholders' equity
Return on average assets
Equity to assets ratio
Tier 1 leverage ratio
Common Equity Tier 1 ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
7.16%
0.64%
8.96%
8.72%
9.96%
9.96%
11.17%
8.19%
0.81%
9.91%
9.64%
10.57%
10.57%
11.80%
4.34%
0.49%
11.23%
10.11%
12.12%
12.12%
13.37%
10.42%
1.25%
12.02%
11.86%
-
14.94%
16.19%
15.15%
1.69%
11.16%
12.68%
-
15.65%
17.26%
Locations & Corporate Information
Goleta Branch
Oxnard Branch
Corporate Headquarters
Paso Robles Branch (Opening Summer 2018)
San Luis Obispo Branch
Santa Barbara Branch
Santa Maria Branch
Investor Relations Contact
Martin E. Plourd
Annual Meeting
The Annual Meeting of Shareholders of
Community West Bancshares will be held on
May 24, 2018 at 6:30 pm PDT at the La Cumbre
Country Club, 4015 Via Laguna, Santa Barbara, CA
Transfer Agent & Registrar
Computershare Trust Co., NA
250 Royall Street
Canton, MA 02021
Independent Auditors
RSM US LLP
300 South Fourth Street
Las Vegas, NV 89101
Corporate Counsel
Duane Morris LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5450
Ventura Branch
Westlake Village Branch
Corporate Headquarters
445 Pine Avenue, Goleta, CA 93117
(805) 692-5821
www.communitywest.com
Goleta
5827 Hollister Avenue
Goleta, CA 93117
(805) 683-4944
Oxnard
300 E. Esplanade Drive
Oxnard, CA 93036
(805) 597-4140
Paso Robles (Opening Summer 2018)
541 Spring Street
Paso Robles, CA 93446
(805) 597-7778
San Luis Obispo
4464 Broad Street
San Luis Obispo, CA 93401
(805) 597-3655
Santa Barbara
1501 State Street
Santa Barbara, CA 93101
(805) 962-7420
Santa Maria
122 E. Betteravia Road
Santa Maria, CA 93454
(805) 938-1690
Ventura
1463 S. Victoria Avenue
Ventura, CA 93003
(805) 650-1901
Westlake Village
951 S. Westlake Boulevard
Westlake Village, CA 91361
(805) 494-5172
Board of Directors
William R. Peeples
Chairman of the Board,
Community West Bancshares
Private Investor
Martin E. Plourd
President and
Chief Executive Officer
Robert H. Bartlein
Chairman of the Board,
Community West Bank
President and CEO, Bartlein & Co.
Jean W. Blois
Independent Consultant
Former Mayor, City of Goleta
Dana L. Boutain
Certified Public Accountant
Managing Director, CBIZ
Tom L. Dobyns
Retired Bank CEO
John D. Illgen
Modeling and Simulation
Consultant
James W. Lokey
Retired Bank
Chairman and CEO
Shereef Moharram
Attorney
Partner, Price, Postel
& Parma LLP
Kirk B. Stovesand
Certified Public Accountant
Partner, Walpole & Co.
Executive
Management Team
Senior
Management Team
Martin E. Plourd
President and CEO
Maureen C. Clark
Executive Vice President
Chief Operating Officer
and Chief Information Officer
William F. Filippin
Executive Vice President
Chief Banking Officer
Kristine D. Price
Executive Vice President
Chief Credit Officer
Susan C. Thompson
Executive Vice President
Chief Financial Officer
Jonathan Apilado
Senior Vice President
Controller
Jason Bietz
Regional President
Clay Dickens
Senior Vice President
Senior Loan Consultant
Luis Garcia-Moreira
Senior Vice President
Cash Management Manager
James D. Gray
Senior Vice President
Manufactured Home
Division Manager
Seth Harvey
Senior Vice President
Credit Administrator and
Commercial Underwriting Manager
Cynthia M. Hooper
Senior Vice President
Loan Servicing Department Manager
Chris Lem
Senior Vice President
Compliance Manager
Laura Maffei
Senior Vice President
Regional Agriculture Loan Manager
Janie Marlborough
Senior Vice President
Credit Administration Policy and
Project Manager
Kevin W. Moon
Senior Vice President
Director of Marketing
and Product Development
Jennifer Ofner
Senior Vice President
Director of Human Resources
Brian Schwabecher
Regional President
Thomas Wetzel
Senior Vice President
Chief Risk Officer
Michael Will
Senior Vice President
Staff Attorney
Corporate Headquarters
445 Pine Avenue
Goleta, CA 93117
(805) 692-5821
Fax (805) 692-5835
www.communitywest.com