Two small Central California banks plan to merge in a bid for scale.

Central Valley Community Bancorp in Fresno and Community West Bancshares in Goleta agreed to combine in an all-stock transaction valued at $99.4 million, the companies said in a press release Tuesday. Central Valley would acquire Community West in a deal expected to close in the second quarter of 2024.

The combined company would retain the branches of both banks, and executives said they do not plan to close any locations in connection with the deal. Community West's seven offices in Santa Barbara, Ventura and San Luis Obispo counties will combine with Central Valley's 20 branches in eight counties around Fresno and the Greater Sacramento area.

The merged bank would assume the name of Community West Bancshares, according to the release, and Central Valley Community Bank would adopt the Community West Bank moniker. The combined company's board would have 15 directors, consisting of nine current directors from Central Valley and six current directors from Community West.

James Kim, president and CEO of Central Valley and its bank, would lead the combined company's management team as chief executive. Martin Plourd, CEO of Community West and its banking unit, would serve as president of the merged company. Daniel Doyle, Central Valley chairman, would assume that position on the board of the combined company, and Robert Bartlein, Community West Bank chairman, would serve as vice chairman.

Central Valley Community "has steadily and profitably grown for over 43 years, building a highly attractive franchise in California's San Joaquin Valley and Greater Sacramento region," Kim said in the release.

"The complementary culture, client service model and Central Coast presence of Community West Bank further the opportunity for company growth in well-recognized Central California communities, creating a combined franchise whose strength and size continue to serve clients and communities with integrity, offering enhanced professional employee development opportunities and greater earnings power for shareholders," Kim added.

The Community West acquisition would mark the sixth for Central Valley, which most recently acquired Folsom Lake Bank in 2017 and struck several other deals prior to the pandemic era.
Upon closing, the combined company would have approximately $3.6 billion of assets. Existing Central Valley shareholders would own about 63% of the outstanding shares following the merger and Community West Bancshares shareholders would own the rest.