Form 4: Community West Bancshares Director Tom Dobyns Reports Changes in Beneficial Ownership Following Merger

Director Tom Dobyns reports changes in beneficial ownership of Community West Bancshares (CWBC) stock and options following the merger with Central Valley Community Bancorp.

Summary

• On April 1, 2024, Tom Dobyns, a director of Community West Bancshares (CWBC), reported changes in his beneficial ownership of the company's securities.
• These changes are a result of the merger between Community West Bancshares and Central Valley Community Bancorp.
• Dobyns received 3,555 shares of CWBC common stock in exchange for 4,500 shares of Community West Bancshares common stock due to the merger, with an exchange ratio of 0.79 shares of CVCY for each share of Community West Bancshares.
• The closing price of Central Valley Community Bancorp common stock on the effective date of the merger was $19.89 per share.
• Dobyns also acquired stock options for 3,950 shares at an exercise price of $13.08, expiring on August 24, 2027, 2,370 shares at an exercise price of $14.85, expiring on October 25, 2028, and 2,370 shares at an exercise price of $8.79, expiring on April 29, 2030.
• These stock options were issued in substitution for stock options previously issued by Community West Bancshares, adjusted for the merger consideration.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing changes in ownership due to a merger. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Industry Context

The merger reflects a trend of consolidation within the banking industry, where smaller institutions combine to achieve greater scale and efficiency.

Comparison to Industry Standards

• Mergers between community banks are common, with deal terms varying based on asset size, geographic overlap, and strategic fit.
• The exchange ratio of 0.79 shares of CVCY for each share of Community West Bancshares is within the typical range for similar transactions.
• Stock option adjustments following mergers are standard practice to preserve the economic value of the options for the employees and directors.

Stakeholder Impact

• Shareholders of Community West Bancshares received shares of Central Valley Community Bancorp (now Community West Bancshares) as part of the merger.
• Employees of both banks may experience changes as the companies integrate their operations.

Key Dates