Community West Bancshares
STABILITY
in Uncertain Times
ANNUAL REPORT 2020
Community West Bancshares
remained stable and weathered
the uncertainty of 2020.
Community West produced
strong earnings in 2020,
with solid top and bottom
line results, core deposit
growth and an expanded
net interest margin.
The effect of the pandemic on our employees, clients and communities
remained our primary concern throughout the year. Since the start of the
pandemic, we worked together as a team to maintain all branch activity,
taking conservative measures to keep our employees and clients safe,
without compromising the level of service our clients expect and deserve.
We focused on assessing the risks in our loan portfolio and working
with our clients affected by the pandemic, granting appropriate loan
modifications.
We are very proud of Community West’s financial performance, closing
out 2020 with a net income of $8.2 million, up from 2019’s record of $8.0
million. Our total assets ended the year at $975 million – up $62 million
over 2019 – and total loans grew $82 million, year over year.
All production areas posted very solid numbers in 2020. Our total deposits
for the year ended at $766 million, up $15 million over 2019, and here’s the
good news: our bank was able to reduce and replace a significant portion of
our high-cost CDs, including brokered deposits, by a total of $132 million –
primarily with low-cost core deposits which grew by $155 million. To say we
had a good year is an understatement; we had another record year!
Throughout 2020, Community West Bank generated 517 Paycheck
Protection Program (PPP) loans, which are 100% guaranteed by the
Small Business Administration (SBA), totaling $75.7 million to our
clients. We expect to see the first round of PPP funding forgiven by
the end of the second quarter of 2021. As these loans are forgiven, we
expect to use the liquidity to pursue new opportunities in our market,
including strategies to improve loan growth, fund the second round of
PPP loans and further reduce high-cost wholesale funding.
In April 2020, Community West Bank was again awarded a “Premier”
rating by The Findley Reports. For over 50 years, Findley has
recognized the financial performance of banking institutions in
California and the western United States, focusing 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. Community West Bank is also rated 5-star Superior by Bauer
Financial. It is an honor to be recognized so favorably.
Our bank is well positioned to serve the families and businesses
which make up the communities along California’s Central Coast. With
seven branch offices - from Oxnard in the south to Paso Robles in the
north – Community West Bank is the largest publicly traded and only
community bank headquartered and serving all of Ventura, Santa
Barbara and San Luis Obispo counties.
We appreciate the support from you, our shareholders, as we continue
to expand Community West Bank’s capabilities in providing personal
service and trusted advice to our clients.
William R. Peeples
Chairman of the Board
Martin E. Plourd
President/Chief Executive Officer
What makes Community West Bank
different is not what we do,
but why we do it.
Community West Bank first opened its doors in 1989 as Goleta National Bank, with
a single office at 5827 Hollister Avenue, and has grown to seven full-service banking offices
throughout Ventura, Santa Barbara and San Luis Obispo counties.
What makes Community West Bank different is not so much what we do, but why we do it. The
Founders of our bank had a simple and enduring vision: To serve our community and customers
like no other bank. We remain committed to that vision – being the bank of choice in the
communities we serve – and firmly believe that local deposits should be put to work locally.
Community West Bank provides financing to businesses, families and nonprofit organizations
throughout California’s Central Coast, supporting job creation, economic vitality and vibrant
local communities. Please check us out at www.CommunityWestBank.com.
MANUFACTURED HOME LENDING
For over 20 years, Community West Bank has been a premier
manufactured home loans lender in coastal California
communities from San Diego to San Francisco. For those
who are looking to purchase or refinance a manufactured
home, we have loans to fit their needs and a staff who
focuses exclusively on manufactured home financing. 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.
AGRICULTURAL LENDING
Community West Bank fulfills the financing needs of our farm,
ranch and agribusiness clients with Farmer Mac mortgage loans
with long-term fixed rates for land acquisition, loans to refinance
existing debt and financing for capital improvements. Our goal
is to encourage growth throughout the agricultural sector – on
California’s Central Coast and statewide. A commitment to
responsive personal service make us stand out from other banks.
We take pride in the portfolio of very satisfied clients who have
managed to make their Ag businesses thrive with the funding they
received from us.
GOVERNMENT GUARANTEED LENDING
Community West Bank offers U.S. Small Business
Administration (SBA) loan programs, as well as the U.S.
Department of Agriculture (USDA) Business & Industry loan
program for businesses in rural areas. Since 1989, we have
provided local businesses 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 SBA. This special status
allows us to expedite the processing of loan applications for
rapid closing with in-house approvals.
COMMUNITY INVOLVEMENT
Community West Bank employees volunteer hundreds of
hours annually to local non-profits in the communities in
which they live and work, and our bank provides consistent
financial support in the form of donations, sponsorships and
grants to organizations throughout the Central Coast, from
Ventura County to Paso Robles. Please refer to the Community
Involvement section of this annual report.
RELATIONSHIP BANKING
Community West Bank provides a full range of convenient and secure
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. Our banking services and deposit accounts are designed
to contribute to the smooth and efficient operation of our clients’
businesses.
And clients count on Community West Bankers to provide the
responsive financing 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 over 30 years ago, and remains true at Community West Bank
today. That is the foundation for our continued success.
“The Point Market has had
a great relationship with
Community West Bank for 25
years. They make banking easy
so we can focus on growing
our business.”
———
Jeremy Jewell
Vice President, Operations
Jordan Price
Marketing Director
The Point Markets
“WE COUNT ON financing
that fits our needs. We
love the open space and
rolling hills that make Paso
Robles special. Thanks
to our partnership with
Community West Bank, we
can see our dreams for our
ranch realized.”
–Dennis and Teresa Harrah
Owners, Harrah Ranch
THE COMMUNITY
COUNTS ON US
“We love the open space
and rolling hills that make
Paso Robles special. Thanks
to our partnership with
Community West Bank, we
can see our dreams for our
ranch realized.”
———
Dennis and Teresa Harrah
Owners, Harrah Ranch
“At Draughtsmen
Aleworks we count
on Community
West Bank to serve
our banking needs
and help to build a
stronger community.”
———
Tami Snow, Co-owner,
Draughtsmen Aleworks
“At Primary Medical we count on Community West Bank to support our
business growth and to share our values in community stewardship.”
———
Dr. Maria Barrell & Dr. Edward Banman, Primary Medical
COMMUNITY
INVOLVEMENT
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
Arroyo Grande Community Hospital Foundation
Atascadero Kiwanis
Bishop Diego Garcia High School
California LULAC Foundation
Central Coast Alliance United for Sustainable Economy
Central Coast Economic Forecast
Child Development Resources of Ventura County
Children’s Creative Project
Clinicas del Camino Real
COLAB Ventura County
Community Health Centers of the Central Coast
Cottage Children’s Medical Center
Court Appointed Special Advocates of SLO County (CASA)
Dos Pueblos High School Athletics
Dos Pueblos Little League
El Camino Elementary School
El Camino Homeless Organization (ECHO)
Economic Vitality Corporation of SLO County
Fairview Gardens
Food Bank Coalition of San Luis Obispo County
Food From the Heart
French Hospital Foundation
Girsh Park
Goleta Valley Chamber of Commerce
Good Samaritan Shelter
Habitat for Humanity, San Luis Obispo County
Housing Trust Fund of Ventura County
Jack’s Helping Hand
kidSTREAM Children’s Museum
Marian Regional Medical Center Foundation
Meals That Connect
Mid-State Fair
Montessori Center School
National Association of Women Business Owners (NAWBO)
Old Spanish Days Fiesta
Old Yeller Ranch Rescue
One805.org
Oxnard College Foundation
Page Youth Center
Paso Robles Chamber of Commerce
Paso Robles Housing Authority
Paso Robles Rotary Club Foundation
Paso Robles Youth Arts Foundation
Rotary Club San Luis Obispo Daybreak
San Luis Obispo Chamber of Commerce
San Luis Obispo Symphony
San Marcos High School
Santa Barbara Athletic Roundtable
Santa Barbara Courthouse Legacy Foundation
Santa Barbara Family YMCA
Santa Barbara Police Foundation
Santa Barbara Zoological Gardens
Scholarship Foundation of Santa Barbara
Science and Engineering Council of Santa Barbara
Solvang Senior Center
St. John’s Healthcare Foundation
Studios on the Park
Teddy Bear Cancer Foundation
Temple Beth Torah
UCSB Economic Forecast Project
United Boys & Girls Clubs of Santa Barbara County
Unity Shoppe
Ventura County Contractors Association
Ventura County Medical Resource Foundation
Westmont College Foundation
Young Professionals Networking Group
2020 Financials Snapshot
Net interest income after provision for loan losses
35,366
34,522
33,629
Results of Operations:
Interest income
Interest expense
Net interest income
Provision (credit) for loan losses
Non-interest income
Non-interest expenses
Income before income taxes
Provision (benefit) for income taxes
Net income
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
YEAR ENDED DECEMBER 31,
2020
2019
2018
2017
2016
(in thousands, except per share amounts)
$43,854
$45,739
$42,631
$37,391
$32,216
7,265
36,589
1,223
11,382
34,357
(165)
8,988
33,643
14
3,912
27,523
11,755
3,510
$8,245
$0.97
8,473
$0.97
8,543
$10.50
3,607
26,755
11,374
3,411
7,963
$0.94
8,472
$0.93
8,579
$9.68
2,628
26,039
10,218
2,809
7,409
$0.89
8,288
$0.88
8,451
$8.92
4,729
3,127
32,662
29,089
411
32,251
2,757
24,545
10,463
5,548
4,915
$0.60
8,146
$0.57
8,589
$8.55
(48)
29,137
2,253
22,548
8,842
3,613
5,229
$0.64
8,114
$0.62
8,444
$8.07
847,383
766,846
759,552
726,189
623,355
975,435
913,870
877,291
833,315
710,572
766,185
750,934
716,006
699,684
612,236
886,428
831,892
801,140
763,245
645,236
Total stockholders' equity
89,007
81,978
76,151
70,070
65,336
Selected Financial and Liquidity Ratios:
Return on average stockholders' equity
Return on average assets
Equity to assets ratio
Community Banking Leverage Ratio
Tier 1 leverage ratio
Common Equity Tier 1 ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
9.70%
0.85%
9.12%
9.29%
9.57%
11.40%
11.40%
12.65%
10.15%
0.91%
8.97%
—
9.33%
10.60%
10.60%
11.73%
10.02%
0.88%
8.68%
—
8.96%
10.10%
10.10%
11.26%
7.16%
0.64%
8.41%
—
8.72%
9.96%
9.96%
11.17%
8.19%
0.81%
9.19%
—
9.64%
10.57%
10.57%
11.80%
LOCATIONS
CORPORATE HEADQUARTERS
445 Pine Avenue
Goleta, CA 93117
(805) 692-5821
www.communitywest.com
BRANCHES
Goleta
5827 Hollister Avenue
Goleta, CA 93117
(805) 683-4944
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
CORPORATE
INFORMATION
Investor Relations Contact
Martin E. Plourd
Annual Meeting
The Annual Meeting of Shareholders
of Community West Bancshares
will be held remotely on May 27, 2021 at
6:30 pm PDT
Transfer Agent & Registrar
Computershare Trust Company
462 South 4th Street, Suite 1600
Louisville KY 40202
Independent Auditors
RSM US LLP
10845 Griffith Peak Drive, Suite 450
Las Vegas, NV 89135
Corporate Counsel
Duane Morris LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5450
Corporate Headquarters
Goleta Branch
Oxnard Branch
Paso Robles Branch
San Luis Obispo Branch
Santa Barbara Branch
Santa Maria Branch
Ventura Branch
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
Suzanne Chadwick
Retired Bank Executive
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
Christopher R. Raffo
Farmer and Former
Community Bank Equity Broker
Kirk B. Stovesand
Certified Public Accountant
Partner, Walpole & Co.
EXECUTIVE MANAGEMENT TEAM
Martin E. Plourd
President and CEO
William F. Filippin
Executive Vice President
Chief Credit Officer and Chief Administrative Officer
T. Joseph Stronks
Executive Vice President
Chief Operating Officer
Interim Chief Risk Officer
Susan C. Thompson
Executive Vice President
Chief Financial Officer
SENIOR MANAGEMENT TEAM
Jonathan Apilado
Senior Vice President
Controller
Jason Bietz
Senior Vice President
Deputy Chief Credit Officer
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 Hooper
Senior Vice President
Risk and CRA 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
Senior Vice President
Chief Banking Officer
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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