Community West Bancshares
Annual Report 2019

Plain-text annual report

Community West Bancshares A N D C O U N T I N G 30 Years 2019 ANNUAL REPORT 30 Years and Counting... 30th ANNIVERSARY1989–201930 Years and Counting... In 2019, Community West Bancshares celebrated its 30th Anniversary with increased net income and asset growth. Compared to 10 years ago, there are far fewer community banks serving families, businesses and non-profit organizations on California’s Central Coast. The fact that Community West Bancshares has been consistently serving local customers, and the communities in which they live, for 30 years is an accomplishment of great pride to our employees, directors and shareholders. We continue to fulfill the original mission of our founders, when we first opened our doors as Goleta National Bank in 1989: To serve our communities like no other financial institution. We ended 2019 producing solid earnings for the year, highlighted by top-line revenue growth, steady year-over-year loan and deposit growth, and above industry-average net interest margin. Return on average assets, return on average common equity and our efficiency ratio all improved as we continue to deepen our presence throughout Ventura, Santa Barbara and San Luis Obispo counties. Related to our 30th anniversary, Community West Bank celebrated by awarding $30,000 in Anniversary Grants to six local non-profit organizations. Our employees voted to select these non-profits, which made the awards even more meaningful. The non-profits primarily serve low to moderate income families and individuals, with each organization receiving $5,000. Sincerely, Additionally, directors Robert Bartlein, Jean Blois and John Illgen—all of whom have been Community West Bancshares founding Board members since the bank opened in 1989—were joined by several bank employees in New York City to ring the Nasdaq Stock Market closing bell in Times Square. We are very proud to note that in April, Community West was again awarded a “Premier” rating by The Findley Reports. For more than 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 these 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. The future continues to shine brightly for Community West. While many community banks have been acquired by larger institutions, headquartered far from the Central Coast, we are focused on remaining independent, making local decisions in the best interests of our customers and the communities we serve. We truly appreciate the support from you, our shareholders, as we expand Community West Bank’s ability to provide high- touch, personal service and trusted advice to our customers. William R. Peeples Chairman of the Board Martin E. Plourd President and Chief Executive Officer At StonePark Capital, we count on Community West Bank to see the potential in us and our projects, even when times get tough. – Andrew Firestone Principal /Founder Community West Bank provides financing to businesses, families and nonprofit organizations throughout California’s central and south coast, supporting job creation and vibrant local communities. We opened our doors 30 years ago, as Goleta National Bank, with a single office at 5827 Hollister Avenue, and have grown to eight full-service banking offices throughout Ventura, Santa Barbara and San Luis Obispo counties. The Founders of our bank had a simple but powerful vision: To serve our community and customers like no other bank. What makes us different is not so much what we do, but why we do it. We remain committed to being the bank of choice in the communities we serve, and firmly believe that local deposits should be put to work locally. Please check us out at www.CommunityWestBank.com. Relationship Banking Count on Community West Bankers to provide the responsive and tailored financing, convenient treasury management and deposit services, and trusted advice local businesses need to nurture and sustain their growth. What sets us apart is the level of personal service, flexibility and attention to detail our bankers provide to customers. It was true when Goleta National Bank first opened its doors in 1989, and remains true at Community West Bank today. That’s what builds trust, and is the foundation for our continued success. We provide a full range of treasury management services, including mobile banking apps for businesses and personal customers, payment processing services, payroll services, positive pay, lockbox services, remote deposit capture, ACH processing, business credit cards and online banking with bill pay. Safe, secure and accurate, our banking services are designed to contribute to the smooth and efficient operation of our clients’ businesses. Agricultural Lending Community West Bank fulfills the financing needs of agricultural and agribusiness clients with mortgage loans for land acquisition, loans to refinance existing debt and financing for capital improvements. Our bank is an approved lender for Farmer Mac, offering long term fixed rates, and our experienced and dedicated agricultural bankers are well positioned to provide the expertise and responsive financing needed to serve Ag businesses on the Central Coast and throughout California. Government Guaranteed Lending Over the years, we have provided our business clients with over $700 million in funding for commercial space, expansion and capital improvements through government guaranteed lending programs, earning the “Preferred Lender” designation by the U.S. Small Business Administration (SBA). This special status allows us to expedite the processing of loan applications for rapid closing with in-house approvals. 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, for almost 30 years. Manufactured Home Lending With a staff who focuses exclusively on manufactured home financing, Community West Bank lends in coastal California communities from San Diego to San Francisco, and we have developed strong relationships with California’s manufactured home dealers in order to serve the new home market. Community West Bank holds more than 2,000 manufactured home loans in over 300 California mobile home parks. Community Involvement Our employees volunteer hundreds of hours annually to local non-profits in the communities in which they live and work, and Community West Bank provides significant financial support in the form of donations, sponsorships and grants to organizations throughout the Central Coast. Please refer to the Community Involvement section of this annual report. At the Goleta Sanitary District, we count on Community West Bank to keep the public’s money safe and local. –Steve Wagner, General Manager/District Engineer Community West Bank employees proudly support non-profit and community organizations throughout Ventura, Santa Barbara and San Luis Obispo counties. Achievement House Alpha Resource Center of Santa Barbara American Cancer Society American Heart Association Arthritis Foundation Atascadero Kiwanis Bishop Diego Garcia High School Boys & Girls Club of Central Coast Boys & Girls Club of North SLO County Cal Poly Athletics California Farm Bureau 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) Child Development Resources of Ventura County Chumash Reservation Clinicas del Camino Real Coastal Christian School Coastal Housing Partnership Cottage Hospital Foundation Community Action Commission of Santa Barbara County Coastal Housing Partnership Court Appointed Special Advocates National Association of Women of SLO County Devereux Dos Pueblos High School Athletics El Camino Elementary School Economic Vitality Corporation of SLO County Fairview Gardens Fiestas Patrias Food Bank Coalition of San Luis Obispo County Food From the Heart French Hospital Foundation Goleta Education Foundation Goleta Lemon Festival Goleta Old Town Association Goleta Sanitary District Goleta Valley Chamber of Commerce Goleta Valley Cottage Hospital Goleta Valley Girls Softball Goleta Valley Historical Society Grower-Shipper Association of Central California Greater Conejo Valley Chamber of Commerce Housing Authority of San Luis Obispo IBEW Local 952 Kellogg Elementary School Legal Aid Foundation of SB County Lifewater International Meals That Connect Mid-State Fair Youth Legacy Project Montessori Center School Business Owners Neal Taylor Nature Center Nipomo Rotary Club Charitable Foundation Santa Barbara Historical Museum Santa Barbara Police Foundation Santa Maria Elks Club Rodeo Santa Maria Police Council Scholarship Foundation of Santa North County Rape Crisis and Child Barbara Protection Center Oakheart Country Music Festival Old Spanish Days Fiesta Old Town Goleta Oxnard Ambassadors Oxnard College Foundation Oxnard Fire Explorers Page Youth Center Paso Robles Chamber of Commerce Paso Robles Downtown Main Street Association Paso Robles Housing Authority Paso Robles Rotary Club Foundation Rebozo Festival Rona Barrett Foundation Rotary Club of Goleta Rotary Club of Montecito Rotary Club of Paso Robles Rotary Club of Westlake Village Royal Family Kids Safe Passages Youth Program San Marcos High School Santa Barbara Athletic Roundtable Santa Barbara Bucket Brigade Santa Barbara Elks Lodge Santa Barbara Family YMCA Santa Barbara Foresters Science and Engineering Council of Santa Barbara Shelter Box USA Simi Valley Girls Softball St. Vincent’s Santa Barbara Studios on the Park Temple Beth Torah Toy Bank of Greater Paso Robles Transitions Mental Health Asociation 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 Coalition of Labor, Agriculture and Business Ventura County Contractors Association Ventura County Medical Resource Foundation Vitalant Westmont College Foundation Community Involvement Central Coast Veterans Helping Veterans is organized to assist veterans who have encountered a variety of problems in transitioning from military service to fully productive lives as civilians. Safe Passage Youth Foundation is a Thousand Oaks Police Department and Conejo Recreation and Park District partnership committed to eliminating gang-related crime by stopping gang recruitment. Royal Family Kids positively impacts the lives of children ages 7-12, who have been victims of abuse, neglect and abandonment by providing life-changing experiences through camp, club, and mentoring programs. Child Development Resources of Ventura County enriches and strengthens the lives of children and their families through a variety of high-quality children’s programs, including child care assistance, Head Start and Early Head Start. Food From The Heart prepares and delivers healthy nutritious food to those who are dealing with major illnesses, surgeries or failing health. Transitions-Mental Health Association is dedicated to eliminating stigma and promoting recovery and wellness for people with mental illness through work, housing, community and family support services. 30th Anniversary Grants Community West Bank presented $30,000 in Anniversary Grants to six local non-profit organizations on August 21, 2019 to commemorate the bank’s 30th anniversary. The non-profits primarily serve low to moderate income families and individuals throughout Ventura, Santa Barbara and San Luis Obispo counties, and were selected by employees, with each organization receiving a $5,000 award. “We decided to celebrate our bank’s anniversary by awarding significant grants to local non-profit organizations which do so much to enrich and support the communities where we live and work,” said Martin E. Plourd, President and Chief Executive Officer. “The fact that our employees voted to select these non-profits makes the awards all the more meaningful.” Community West Bank proudly presented the checks to the Anniversary Grants recipients. At Santa Barbara Airbus, we count on Community West Bank because they are there for us when we need them. –Eric Onnen, CEO/Managing Director 2019 Financials Snapshot YEAR ENDED DECEMBER 31, 2019 2018 2017 2016 2015 (in thousands, except per share amounts) $45,739 $42,631 $37,391 $32,216 $30,222 Results of Operations: Interest income Interest expense Net interest income Provision (credit) for loan losses 11,382 34,357 (165) 8,988 33,643 14 Net interest income after provision for loan losses 34,522 33,629 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 3,607 26,755 11,374 3,411 7,963 - - 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) Net income available to common stockholders $7,963 $7,409 $4,915 $5,229 $2,554 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 $0.94 8,472 $0.93 8,579 $9.68 $0.89 8,288 $0.88 8,451 $8.92 $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 $7.55 766,846 759,552 726,189 623,355 536,546 913,870 877,291 833,315 710,572 621,213 750,934 716,006 699,684 612,236 544,338 831,892 801,140 763,245 645,236 559,269 Total stockholders' equity 81,978 76,151 70,070 65,336 61,944 Selected Financial and Liquidity Ratios: Return on average stockholders' equity 10.15% 10.02% 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 0.91% 8.99% 9.33% 10.60% 10.60% 11.73% 0.88% 8.77% 8.96% 10.10% 10.10% 11.26% 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% 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 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. CORPORATE INFORMATION EXECUTIVE MANAGEMENT TEAM SENIOR MANAGEMENT TEAM Investor Relations Contact Martin E. Plourd Annual Meeting The Annual Meeting of Shareholders of Community West Bancshares will be held on May 28, 2020 at 6:30 pm PDT at the La Cumbre Country Club, 4015 Via Laguna, Santa Barbara, CA Transfer Agent & Registrar Computershare Trust Co., NA 150 Royall Street Canton, MA 02021 Independent Auditors RSM US LLP 300 South Fourth Street, Suite 600 Las Vegas, NV 89101 Corporate Counsel Duane Morris LLP 865 S. Figueroa Street, Suite 3100 Los Angeles, CA 90017-5450 Martin E. Plourd President and Chief Executive Officer 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 Jonathan Apilado Senior Vice President Controller Jason Bietz Regional President Clay Dickens Senior Vice President Senior Loan Consultant Luis Garcia-Moreira Senior Vice President Treasury Management Manager James Gray Senior Vice President Manufactured Housing Division Manager Cynthia M. Hooper Senior Vice President Risk Officer Laura Maffei Senior Vice President Regional Agriculture Loan Manager Janie Marlborough Senior Vice President Director of Credit Risk Management Kevin 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 Director of Credit Operations and Legal Review Corporate Headquarters 445 Pine Avenue Goleta, CA 93117 (805) 692-5821 Fax (805) 692-5835 www.communitywest.com { a 30th ANNIVERSARY1989–2019

Continue reading text version or see original annual report in PDF format above