West is
Best
2022
A N N U A L R E P O R T
Dedicated
to the
West Coast
COMMUNITY WEST BANK DELIVERED RECORD
EARNINGS IN 2022, AS WELL AS GROWTH IN TOTAL
LOANS, NON-INTEREST DEMAND DEPOSITS AND
NET INTEREST MARGIN.
T hroughout 2022, the lingering
challenges of the COVID-19
pandemic and global forces
led to rising interest rates and
persistent anticipation of a looming
recession. Community West started
the year focused on deploying excess
liquidity through increased lending
activity, which resulted in solid organic
loan growth. Our net interest margin
improved and we benefitted from higher
loan yields and interest rate increases
enacted by the Federal Reserve, as new
loans with higher interest rates replaced
lower rate SBA Paycheck Protection
Program (PPP) loans, and existing
variable rate loans were repriced.
Non-interest expense rose in 2022 over
the prior year due to an increase in
salaries and benefits, brought about by
wage competition. Additionally, a $1.3
million increase in professional services
was due to costs related to enhancing
our internal control structure and
procedures for financial reporting as
required for institutions over $1 billion
in total assets, and to support strategic
and technology initiatives.
Credit quality metrics remained strong,
with a decrease in net-nonaccrual loans
compared to the previous year. Total
classified loans and net non-accrual
loans decreased year-over-year due to
improvements in the loan portfolio and
payoffs in these categories. All loans
rated “Watch” or worse were monitored
monthly and proactive measures were
taken when any signs of deterioration to
the credit were discovered.
In May 2022, Community West Bank was
ranked #125 on the American Banker
Magazine’s list of Top 200 Publicly
Traded Community Banks and Thrifts
based on three-year average return
on equity as of December 31, 2021.
Community West Bank was awarded a
“Super Premier Performance” rating by
The Findley Reports. For 52 years, The
Findley Reports has been recognizing
the financial performance of banking
institutions in California and the
Western United States. Community West
Bank is rated 5-star Superior by Bauer
Financial.
It is an honor to be recognized so
favorably.
Our bank is well situated to serve the
families, businesses and non-profit
organizations which make up the
communities along the Central Coast of
California. 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.
As one of the last remaining community
banks along California’s Central Coast,
Community West delivered excellent
full year 2022 financial results.
Highlights include:
Net income was another record at
$13.4 million, or $1.51 per diluted
share, compared to $13.1 million, or
$1.50 per diluted share in 2021.
Total loans increased $63.3 million, or
7.1%, compared to December 31, 2021.
Non-interest-bearing demand
deposits grew by $6.6 million to
$216.5 million.
Stockholders’ equity increased $11.3
million to $112.7 million.
Book value per common share rose
to $12.80 at December 31, 2022,
compared to $11.72 at December 31,
2021.
we believe we are operating from a position
of strength and we will continue to work to
create value for our shareholders, our clients
and our communities.
We appreciate the support from you, our
shareholders, as we expand Community West
Bank’s capabilities in providing personal
service and trusted advice to our clients.
Sincerely,
A
T
A
S
William R. Peeples
Martin E. Plourd
Chairman of the Board
Chief Executive Officer
C
A
D
E
R
O
M
O
N
A
R
C
H
S
I
N
G
O
LETA V A L L E
Y
A perfect day at the Pismo Beach Pier.
A Clear Vision
T he Founders of our bank had a clear vision: To
serve our community and customers like no other
bank; to be a positive, reliable and consistent
financial resource. Community West Bank remains
committed to that powerful vision – being the bank of
choice in the communities we serve – and we believe
that local deposits should be put to work locally.
Community West Bank provides financing, deposit
services and convenient treasury management to
local businesses, families and non-profit organizations
throughout California’s central and south coast,
supporting economic vitality, job growth and healthy
communities.
We first opened our doors as Goleta National Bank in
1989, with an office at 5827 Hollister Avenue – which
remains open today – and Community West Bank has
grown to seven full-service banking offices throughout
Ventura, Santa Barbara and San Luis Obispo counties.
We focus on four core competencies:
Relationship Banking
Manufactured Home Lending
Agricultural Lending
Government Guaranteed
Lending
S
A
N
T
A
M
AR I A
P
A
S
O
R
O
B
L E S
The San Luis Obispo branch of Community West Bank.
Agricultural Lending
Community West Bank supports farm, ranch and
agribusiness clients with Farmer Mac mortgage loans,
offering long-term fixed rates for land acquisition, loans
to refinance existing debt and financing for capital
improvements. Our goal is to encourage growth in the
agricultural sector throughout California. We understand
that the challenges faced by agricultural clients are
different from our other business clients. Community
West Bank has dedicated staff and resources focused
specifically on serving agricultural clients, and we take
pride in our portfolio of loans to satisfied clients who have
thriving Ag businesses.
Government Guaranteed Lending
Since 1989, Community West Bank has provided growing
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 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.
Please check us out at
www.CommunityWestBank.com.
Relationship Banking
Our business clients count on Community West Bank
to provide the responsive community banking service,
tailored financing, cash management, deposit services
and trusted advice to help them thrive. What sets us apart
from larger financial institutions is the level of personal
service our bankers provide. That is the foundation upon
which Community West Bank has been built and is the key
to our continued success.
“Let’s Work Together” is our bank’s slogan and embodies
the approach of Community West Bank: experienced
banking managers, loan officers and staff offer personal
service, assisting each client with their specific financial
needs. We provide well guided local lending decisions
based on firsthand 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
financing solutions for local businesses.
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.
Manufactured Home Lending
The high cost of housing in California coastal communities
has given rise to many mobile home parks as a way for
communities to provide affordable housing alternatives.
Community West Bank’s manufactured housing financing
program has helped to facilitate home ownership for many
who would not otherwise have the opportunity, as well as
for seniors downsizing from traditional ‘stick built’ homes.
Our manufactured home lending strategy has contributed
to the bank’s earnings and a strong net interest margin.
Community West Bank originates loans on existing and
new manufactured homes in approved mobile home
parks in our primary lending areas of Santa Barbara,
San Luis Obispo, and Ventura Counties, as well as in
coastal communities from San Francisco to San Diego.
For those who are purchasing a manufactured home,
we offer financing 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 to better serve the new
home market. Manufactured home loans are retained
in the bank’s portfolio and Community West Bank holds
more than 2,000 manufactured home loans in over 300
California mobile home parks.
S
A
N
T
A
Y
N
E
Z V A L L E Y
N
O
I
T
P
E
P O I N T
C
N
O
C
The Strength of the West
A true community-based bank is a reliable resource, helping to facilitate the dreams and
knows that Community West Bank sees beyond numbers to the true value local businesses bring—
businesses in our advertising which can count on us to support them. Sunstone Winery
serving the financial needs of its clients. In 2022, Community West Bank featured local
seeing what really counts in our community.
A&M Flower Growers counts on responsive agribusiness financing with competitive rates; Community
West Bank is an approved lender for Farmer Mac loans. What counts most to Best Western Plus
South Coast Inn is the people: the employees and relationships that make it memorable. Solarponics
counts on providing a solution that is going to benefit the entire community.
Djamila Cabugos of Sunstone Winery
Albert Castaneda, Jr. of A&M Flower Growers
G
O
L
E
TA
M
O
R
R
O
B
A Y
The City of Santa Barbara at dusk.
C
A
M
A
R I L L O
Kristian Emrich of Solarponics
Nicole Weland of Best Western Plus
South Coast Inn with Dave Hall
of Community West Bank.
Community Involvement
2022 Financials Snapshot
Community West Bank employees proudly support non-profit and community organizations
throughout Ventura, Santa Barbara and San Luis Obispo counties.
805 AgKids
Affordable Housing Paso Robles
American Cancer Society
American Heart Association
Bishop Diego Garcia High School
Boys & Girls Clubs
Boy Scouts, Los Padres Council
Cal Lutheran University
Cal Lutheran Center for Nonprofit Leadership
Central Coast Alliance United for Sustainable
Economy
Central Coast Economic Forecast
Central Coast Junior Golf
Ceylon International Film Festival
Children’s Creative Project
City of Oxnard – Cinco de Mayo Committee
City of Oxnard – Fiesta Patrias Committee
City of Goleta Clean Up
COLAB Ventura County
Commemorative Air Force
Cottage Children’s Medical Center
Cottage Hospital Foundation
Court Appointed Special Advocates of SLO
County (CASA)
Dos Pueblos High School Foundation
El Camino Homeless Organization (ECHO)
Elings Park Foundation
Estrella Warbirds Museum
Farm Bureau
Fiestas Patrias
First Tee
Food Bank Coalition of San Luis Obispo
County
Food From the Heart
French Hospital Foundation
Gala Pride & Diversity Center
Goleta Lions Club
Goleta Rotary Club
Goleta Valley Cottage Hospital Foundation
Goleta Valley Historical Museum
Grower Shipper Association
Habitat for Humanity
Housing Trust Fund of Santa Barbara County
Housing Trust Fund of Ventura County
Interface Children and Family Services
Kellogg School PTA
Lemon Festival
Lobero Theater
Los Alamos Valley Men’s Club
Lumina Alliance
Make A Wish Ventura County
Meals That Connect
Museum of Ventura County
National Association of Women Business
Owners (NAWBO)
North San Luis Obispo County Concert
Association
Ojai Rotary Club
Old Spanish Days Fiesta
One805.org
Paso Robles Chamber of Commerce
Paso Robles Main Street Association
Paso Robles Pioneer Day
Paso Robles Rotary Club Foundation
Paso Robles Youth Arts Center
Planned Parenthood
Rebozo Festival
Rio Mesa Girls Volleyball
Rotary Club San Luis Obispo Daybreak
Salvation Army
San Luis Obispo Chamber of Commerce
San Luis Obispo Museum of Art
San Marcos High School Alumni Foundation
Santa Barbara Carriage and Western Art
Museum
Santa Barbara Community Animal Services
Santa Barbara County Food Bank
Santa Barbara Courthouse Legacy Foundation
Santa Barbara Family YMCA
Santa Barbara Foresters
Santa Barbara Historical Museum
Santa Barbara International Film Festival
Santa Barbara Police Foundation
Santa Barbara South Coast Chamber of
Commerce
Santa Barbara Zoological Gardens
Scholarship Foundation of Santa Barbara
Science and Engineering Council of Santa
Barbara
Shelter Box USA
Solvang Senior Center
South Coast Railroad Museum
Students for Eco-Education and Agriculture
St. Vincent’s
Success Charities
Temple Beth Torah
Transitions Mental Health Association
UCSB Advisory Board
UCSB Economic Forecast Project
United Boys & Girls Clubs of Santa Barbara
County
Unity Shoppe
Ventura County Arts Events
Ventura Art & Street Painting Festival
Ventura County Child Development Resources
Ventura County Contractors Association
Ventura County Fair
Ventura County Medical Resource Foundation
Vitalant Blood Services
Walk with Sally
Warrior Angels Rescue
Women’s Economic Ventures
Women’s Fund of Santa Barbara
Westmont College Foundation
Young Professionals Networking Group
Year Ended December 31,
2022
2021
2020
2019
2018
(in thousands, except per share amounts)
$49,138
$46,078
$43,854
$45,739
$42,631
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
3,328
45,810
(195)
46,005
3,978
31,272
18,711
5,262
3,704
42,374
(181)
42,555
3,753
27,995
18,313
5,212
Net income
$13,449
$13,101
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
$1.54
8,722
$1.51
8,892
$12.80
$1.53
8,568
$1.50
8,723
$11.72
7,265
36,589
1,223
35,366
3,912
27,523
11,755
3,510
$8,245
$0.97
8,473
$0.97
8,543
$10.50
11,382
34,357
(165)
34,522
3,607
26,755
11,374
3,411
7,963
$0.94
8,472
$0.93
8,579
$9.68
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
Community Banking Leverage Ratio
Tier 1 leverage ratio
Common Equity Tier 1 ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
944,577
881,679
847,383
766,846
1,091,502
1,157,052
975,435
913,870
875,084
978,852
112,650
12.48%
1.20%
10.32%
N/A
10.34%
11.44%
11.44%
12.56%
950,131
766,185
750,934
716,006
1,055,677
886,428
831,892
801,140
101,375
89,007
81,978
76,151
13.68%
1.21%
8.76%
N/A
8.56%
11.02%
11.02%
12.19%
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%
8,988
33,643
14
33,629
2,628
26,039
10,218
2,809
7,409
$0.89
8,288
$0.88
8,451
$8.92
759,552
877,291
Board of Directors
Management Team
Executive Management Team
Senior Management Team
Martin E. Plourd
Chief Executive Officer
William F. Filippin
President
Chief Credit Officer
Richard Pimentel
Executive Vice President
Chief Financial Officer
T. Joseph Stronks
Executive Vice President
Chief Operating Officer
Chief Risk Officer
Director Emeritus
Jean Blois
Former Mayor City of Goleta
Corporate Information
Clay Dickens
Senior Vice President
Senior Loan Consultant
Nicole Keefe
Senior Vice President,
Deputy Chief Risk Officer
Luis Garcia-Moreira
Senior Vice President
Treasury Management
Manager
James Gray
Senior Vice President
Manufactured Housing
Division Manager
Laura Maffei
Senior Vice President
Regional Agriculture Loan
Manager
Kevin Moon
Senior Vice President
Director of Marketing
& Product Development
Jennifer Ofner
Senior Vice President
Director of Human
Resources
Brian Schwabecher
Senior Vice President
Chief Banking Officer
Michael Will
Senior Vice President
Senior Legal Counsel
Investor Relations Contact
Martin E. Plourd
Transfer Agent
Computershare
P.O. Box 43006
Providence, RI 02940-3078
Independent Auditors
RSM US LLP
44 Montgomery Street,
Suite 3900
San Francisco, CA 94104
Corporate Counsel
Duane Morris LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5450
Annual Meeting
The Annual Meeting of Shareholders
of Community West Bancshares
will be held on May 25, 2023 at 6:30pm PDT
at La Cumbre Country Club,
4015 Via Laguna, Santa Barbara, CA.
William R. Peeples
Chairman of the Board,
Community West Bancshares
Private Investor
Martin E. Plourd
Chief Executive Officer
Robert H. Bartlein
Chairman of the Board,
Community West Bank
President and CEO, Bartlein & Co.
William F. Filippin
President,
Community West Bank
Martin Alwin
Senior Analyst,
PL Capital Advisors, LLC
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.
Celina L. Zacarias
Senior Director of Community
& Government Relations
California State University
Channel Islands
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
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
Executive Management Team
Martin E. Plourd
Chief Executive Officer
William F. Filippin
President
Chief Credit Officer
T. Joseph Stronks
Executive Vice President
Chief Operating Officer
Chief Risk Officer
Richard Pimentel
Executive Vice President
Chief Financial Officer
Corporate Headquarters
445 Pine Avenue
Goleta, CA 93117
(805) 692-5821
Fax (805) 692-5835
www.communitywest.com
{
a