Community West to buy United Security in California

Community West Bancshares in Fresno, Calif., has agreed to buy United Security Bancshares in Fresno.

The $3.6 billion-asset Community West said in a press release that it will pay $191.9 million in stock for the $1.2 billion-asset parent of United Security Bank. The deal, which is expected to close in the second quarter, priced United Security at 143.7% of its tangible book value.

Dennis Woods, United Security’s chairman, president and CEO, will serve as chairman emeritus at Community West. Two United Security directors, including Jay Gill, will join Community West’s board.

The acquisition “represents a major step forward in our long-term growth strategy and our commitment to the communities we serve throughout Central California,” James Kim, Community West’s CEO, said in the release.

“Both institutions share a strong, long-term foundation of relationship banking, local decision-making and responsible growth,” Kim added. “By bringing our organizations together, we are creating a more robust and more visible banking franchise, with greater depth of expertise, expanded resources and enhanced capacity to support businesses, families and communities.”

Community West said the deal should be 15.6% accretive to its 2027 earnings per share. It should take three years to earn back any dilution to tangible book value.

Community West expects to cut 45% of United Security’s annual noninterest expenses. It expects to incur $20.8 million of merger-related expenses.