Central Valley Community Bancorp in Fresno, Calif., has agreed to buy Community West Bancshares in Goleta, Calif.
The $2.5 billion-asset Central Valley said in a press release that it will pay $99.4 million for the $1.1 billion-asset Community West. The deal, which is expected to close in the second quarter, priced Community West at 87.2% of its tangible book value.
Central Valley will have 27 branches when the deal closes.
Martin Plourd, Community West’s CEO, will become Central Valley’s president and join the board, while Robert Bartlein, Community West’s chairman, will serve as vice chairman. Six Community West directors will join the 15-member Community West board.
The acquisition is the first for Central Valley since it bought Folsom Lake Bank in October 2017.
“The complementary culture, client service model and central coast presence of Community West … further the opportunity for company growth in well-recognized central California communities,” James Kim, Central Valley’s president and CEO, said in the release.
Central Valley plans to cut about 30% of Community West’s annual noninterest expenses. It expects to incur $15 million of merger-related expenses.
Central Valley was advised by Janney Montgomery Scott and Buchalter. Community West was advised by Piper Sandler and Husch Blackwell.