Central California banks to merge in nearly $200 million deal

Fresno, Calif.-based Community West Bancshares is expanding in central California by acquiring Fresno-based United Security Bancshares for $192 million..The deal, Community West’s seventh acquisition, is expected to close in the second quarter of next year and create a bank with more than $5 billion in assets. Community West Bancshares is the parent company of $3.6 billion Community West Bank, while United Security Bancshares is the holding company for $1.2 billion United Security Bank. United Security Bank’s more than dozen branches across Fresno, Madera, Kern, San Joaquin and Santa Clara counties will be added to Community West Bank’s network. Following the merger, Community West shareholders will own 70.6 percent of the combined company, with United Security shareholders holding 29.4 percent.Community West Bancshares Chair and CEO James Kim will continue leading the combined organization. The post-merger board will include current Community West directors and two directors from United Security Bancshares. United Security Chair, President and CEO Dennis Woods will serve as chair emeritus, focusing on client retention.“This merger represents a major step forward in our long-term growth strategy and our commitment to the communities we serve throughout Central California,” Kim said, citing expanded expertise, resources and lending capacity. Woods called the transaction “a natural partnership” that will strengthen service to clients and communities through greater scale and market reach.Philadelphia-based Janney Montgomery Scott served as financial advisor to Community West Bancshares, with Denver-based Otteson Shapiro as legal counsel. Minneapolis-based Piper Sandler advised United Security Bancshares, with San Luis Obispo, Calif-based Stuart Moore Staub serving as legal counsel.