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
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30th ANNIVERSARY1989–2019