Community West Bancshares
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C O M M U N I T Y
2018
ANNUAL REPORT
COUNT ON
COMMITMENT
Record earnings and continued expansion highlight 2018
Community West Bank is uniquely positioned to
serve the families and businesses which make up
the vibrant, diverse and beautiful communities
along California’s Central Coast. As many other
homegrown community banks have been acquired
or merged over the past decade throughout our tri-
county area, Community West Bank stands alone as
the largest publicly traded and only community bank
headquartered and serving communities in Ventura,
Santa Barbara and San Luis Obispo counties.
Our communities have not been without significant
challenges. The enormous Thomas Fire in December,
2017, followed by devastating mudslides a month
later, adversely impacted residents and local
businesses in northern Ventura County and southern
Santa Barbara County. Tragically, the Hill Fire and
Woolsey Fire broke out in November, 2018, destroying
homes and businesses in Ventura and Northern Los
Angeles counties, further testing the resilience of the
communities served by our Bank. We all hope that the
threat of year-round wildfires of unprecedented scale,
affecting so many of our friends and neighbors in well-
established and densely populated areas of California,
is not a sign of the new “normal”.
Yet even with these challenges, the Bank moved
forward. One of the highlights in 2018 was the opening
of our Paso Robles branch office on October 15, our
second full-service banking office to open in San Luis
Obispo County in the last two years, and the eighth
Community West Bank branch overall. We now serve
communities along a 200 mile stretch of Highway 101,
through the heart of a market area that spans from
Westlake Village in the south to Paso Robles
in the north. Key financial
indicators of our success are
listed below.
2018 net income topped $7.4
million, up 50.7% from $4.9
million in 2017. Total assets
grew 5.2% to $877.3 million
at December 31, 2018, from
$833.3 million a year earlier.
Total deposits increased to
$716.0 million
or 2.3% from
$699.7 million
on December 31, 2017,
and more importantly was our core deposit growth
of 11.9% to $505.9 million at December 31, 2018
compared to $452.2 million at December 31, 2017
reducing the Bank’s reliance on wholesale funding.
Additionally, total loans increased $33.6 million to
$768.2 million at December 31, 2018, compared to
$734.6 million at December 31, 2017. Commercial
Real Estate loans outstanding were up 3.2% from year
ago levels to $365.8 million and comprise 47.6% of
the total loan portfolio. Manufactured Housing loans
were up 10.8% from year-ago levels to $247.1 million
and represent 32.2% of total loans. Commercial loans
increased 6.3% from year-ago levels to $118.5 million
and represent 15.4% of the total loan portfolio. For the
year, 2018 net interest margin was 4.07% compared to
4.34% in 2017.
Lower corporate tax rates and the ongoing market
strength of our local economies contributed to our
earnings growth in 2018, and the outlook remains
positive for the year ahead. This solid base provides
Community West Bank with opportunities to continue
growing our franchise by providing the responsive,
personal-service approach to offering the financing,
deposit products and treasury management services
that our clients prefer.
In April 2018, Community West Bank was awarded a
“Premier” rating by The Findley Reports. For 50 years,
The Findley Reports has been recognizing the financial
performance of banking institutions in California and
the Western United States. In making their selections,
The Findley Reports focuses on four ratios: growth,
return on beginning equity, net operating income as
a percentage of average assets, and loan losses as a
percentage of gross loans.
2019 marks a significant milestone, as we celebrate
the 30th anniversary of our Bank. Originally established
as Goleta National Bank, our Founders had these
simple but powerful ideas: to serve our customers
better, and to serve our community like no other bank.
What makes us different is not so much what we do,
but why we do it. Today, as Community West Bank,
our purpose remains the same as it was when first
opening our doors in August, 1989: to be the bank of
choice, providing an unparalleled experience for our
customers, employees and community. That’s our
Vision, and that’s what makes Community West Bank
special.
Community West Bank is truly well positioned to serve
our communities like no other bank, providing financial
services and trusted advice with the “high-touch”
personal service our clients and prospects desire
and deserve. 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 and Chief Executive Officer
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RELATIONSHIPS
2019 marks the 30th anniversary
for Community West Bank!
We opened our doors as
Goleta National Bank in 1989 with a single
office at 5827 Hollister Avenue, which is still
the home of our Goleta branch.
Community West Bank has grown to eight
full-service banking offices, with our Paso
Robles branch opening in October, 2018. Over
the past few years, we have also opened new
branch offices in Oxnard, San Luis Obispo and
Santa Maria, and are now the only community
bank headquartered on California’s Central
Coast with offices throughout Ventura, Santa
Barbara and San Luis Obispo counties. We are
committed to being the bank of choice in all
of the communities we serve, from Westlake
Village to Paso Robles.
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 nonprofit and community organizations.
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, treasury management
and deposit services they require.
Community West Bank is large enough to
accommodate sophisticated financing needs
while maintaining the flexibility of a responsive,
locally owned and managed community bank.
For more information, please check us out at
www.CommunityWestBank.com.
RELATIONSHIP BANKING
“Let’s Work Together” is our bank motto, and
accurately summarizes the way Community West
Bank strives to serve clients. Our outstanding
team of professionals are true community bankers,
committed to working with our business and personal
customers to help them prosper. We proudly offer
exceptional service throughout our communities
– to individuals, families, businesses, nonprofit
organizations and public entities.
Count on Community West Bankers to provide the
financing, deposit services, convenient treasury
management and trusted advice businesses need,
offered with the personal care that sets us apart
from larger, non-local banks. It’s the way our bankers
deliver those services, every day,
with an uncommon level of attention
to detail, that builds trust and close
banking relationships with our
clients.
BUSINESS FINANCING
AND TREASURY
MANAGEMENT
SERVICES
Community West Bank has
developed a strong understanding
and appreciation for the specific
needs of our business clients,
making us better able to provide
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. Our
background and experience in tailoring financing to fit
business goals is what makes us different.
Safe, secure and accurate, our business banking
services can contribute significantly to the smooth and
efficient operation of local businesses. Community
West Bank provides a full range of treasury
management services, including mobile banking,
payment processing services, payroll processing
services, remote deposit capture, ACH processing,
positive pay, lockbox services, business credit cards
and online banking with bill pay. Our bankers work
closely with clients to tailor these services to fit their
businesses.
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OPPORTUNITY
AGRICULTURAL LENDING
Community West Bank supports agricultural and agribusiness
clients with financing, from agricultural mortgage loans for land
acquisition, to refinancing existing debt and loans for capital
improvements. Understanding that the challenges confronting
agricultural businesses are different from our other business
clients, we provide the expertise, dedication and experience
they need 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
6 years in a row. Community West Bank has dedicated staff
and resources focused on the opportunities afforded by these
programs to serve the agricultural sector throughout California.
GOVERNMENT GUARANTEED LENDING
Over the years, Community West Bank has provided our business clients with over $700 million in funding for
commercial space, expansion and capital improvements through government guaranteed lending programs.
Our bank has earned the “Preferred Lender” designation 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 loan program for businesses in rural areas.
MANUFACTURED HOME LENDING
For 18 years, Community West Bank has been the
premier manufactured home lender in Santa Barbara
County while we have steadily increased our market
share in Ventura and San Luis Obispo counties.
We lend in coastal California communities from
San Diego to San Francisco, and have developed
strong relationships with California’s top four largest
manufactured home dealers 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
2018, Community West Bank held more than 1,900
manufactured home loans in over 300 mobile home
parks.
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COMMUNITY INVOLVEMENT
Community West Bank, and our employees, proudly support non-profit
and community organizations throughout Ventura, Santa Barbara
and San Luis Obispo counties.
Alpha Resource Center of Santa
Food Bank Coalition of San Luis
Obispo County
Food From the Heart
French Hospital Foundation
GenSpan Foundation
Goleta Lions Club
Goleta Lemon Festival
Goleta Old Town Association
Goleta Rotary Club
Goleta Valley Chamber of
Commerce
Goleta Valley Historical Society
Grower-Shipper Association of
Central California
Greater Conejo Valley Chamber of
Commerce
Habitat for Humanity
IBEW Local 952
Kellogg Elementary School
Legal Aid Foundation of SB County
Lifewater International
Meals That Connect
Montecito Union School
Montessori Center School
MOXI Science Museum
National Association of Women
Business Owners
Barbara
American Heart Association
Arthritis Foundation
Boys & Girls Club of North SLO
County
Bucket Brigade
Buena Girls Soccer
California Farm Bureau
California High School Rodeo
Association
California Lutheran University
California Society of CPAs
California Women for Agriculture
Central Coast Alliance United for
Sustainable Economy
Central Coast Economic Forecast
Central Coast Veterans Helping
Veterans
Center for Urban Agriculture
Child Abuse Listening Mediation
(CALM)
Chumash Reservation
Coastal Housing Partnership
Cottage Hospital Foundation
Clinicas del Camino Real
Community Action Commission of
Santa Barbara County
Coastal Housing Partnership
Court Appointed Special Advocates
of SLO County
Dog Adoption and Welfare Group
Dos Pueblos Little League
Economic Vitality Corporation of
SLO County
Fiestas Patrias
Neal Taylor Nature Center
North County Rape Crisis and Child
Scholarship Foundation of Santa
Barbara
Protection Center
Science and Engineering Council of
Oakheart Country Music Festival
Old Spanish Days
Oxnard Fire Explorers
Page Youth Center
Paso Robles Downtown Main Street
Santa Barbara
Shelter Box USA
Soroptimist International
St. Vincent’s Santa Barbara
Transitions Mental Health
Association
Paso Robles Chamber of Commerce
Paso Robles Uptown Park
People’s Self-Help Housing
Rebozo Festival
Rotary Club of Paso Robles
Rotary Club of Westlake Village
San Marcos High School
Santa Barbara Association of
Realtors
Santa Barbara Athletic Roundtable
Santa Barbara County Veterans
Stand Down
Santa Barbara Elks Lodge
Santa Barbara Family YMCA
Santa Barbara Foresters
Santa Barbara Historical Museum
Santa Maria Elks Club Rodeo
Santa Maria Police Council
Association
Temple Beth Torah
UCSB Economic Forecast Project
United Boys & Girls Clubs of Santa
Barbara County
United Blood Services
United Way
Unity Shoppe
Ventura County Arts Events
Ventura County Bar Association
Ventura County Coalition of Labor,
Agriculture and Business
Ventura County Contractors
Association
Ventura County Legal Aid
Ventura County Medical Resource
Foundation
Westmont College Foundation
2018 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,
2018
2017
2016
2015
2014
(in thousands, except per share amounts)
$42,631
$37,391
$32,216
$30,222
$28,004
8,988
33,643
14
33,629
2,628
26,039
10,218
2,809
7,409
-
-
4,729
3,127
32,662
29,089
411
32,251
2,757
24,545
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)
Net income available to common stockholders
$7,409
$4,915
$5,229
$2,554
$6,268
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
Total stockholders' equity
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
$0.89
8,288
$0.88
8,451
$8.92
759,552
877,291
716,006
801,140
76,151
10.02%
0.88%
8.77%
8.96%
10.10%
10.10%
11.26%
$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
726,189
623,355
536,546
487,256
833,315
710,572
621,213
557,318
699,684
612,236
544,338
477,084
763,245
645,236
559,269
490,311
70,070
65,336
61,944
67,007
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%
CORPORATE & BRANCH LOCATIONS
GOLETA
5827 Hollister Avenue
Goleta, CA 93117
(805) 683-4944
CORPORATE HEADQUARTERS
445 Pine Avenue, Goleta, CA 93117
(805) 692-5821
www.communitywest.com
OXNARD
300 E. Esplanade Drive
Oxnard, CA 93036
(805) 597-4140
PASO ROBLES
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 & 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.
CORPORATE
INFORMATION
EXECUTIVE
MANAGEMENT TEAM
SENIOR
MANAGEMENT TEAM
Martin E. Plourd
President and CEO
William F. Filippin
Executive Vice President
Chief Banking Officer
T. Joseph Stronks
Executive Vice President
Chief Operating Officer
Susan C. Thompson
Executive Vice President
Chief Financial Officer
Paul S. Ulrich
Executive Vice President
Chief Credit Officer
Investor Relations Contact
Martin E. Plourd
Annual Meeting
The Annual Meeting of Shareholders
of Community West Bancshares
will be held on May 23, 2019 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
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
Senior Credit Officer
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 Policy and Risk Officer
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
Michael Will
Senior Vice President
Staff Attorney
CORPORATE HEADQUARTERS
445 Pine Avenue
Goleta, CA 93117
(805) 692-5821
(805) 692-5835 Fax
www.communitywest.com