United Security Bancshares and Community West Bancshares have entered into a definitive all‑stock merger agreement, with the deal valued at approximately $191.9 million. The transaction will be completed in the second quarter of 2026, subject to regulatory approval and shareholder votes. Under the terms, each UBFO share will be exchanged for 0.4520 shares of CWBC common stock, valuing a UBFO share at $10.88 based on CWBC’s $24.06 closing price on December 16, 2025. The combined bank will have roughly $5 billion in assets and will retain CWBC CEO James J. Kim as president of the merged entity, while United Security’s chairman Dennis R. Woods will become chairman emeritus.
Community West Bancshares reported a strong third‑quarter 2025 performance, with net income rising to $10.87 million from $3.39 million a year earlier and diluted earnings per share climbing to $0.57 from $0.18. The earnings surge reflects a 221% increase in loan growth and a 12% rise in net interest income, driven by robust demand for agricultural and commercial lending in the Central Valley. The solid financial footing gives the combined bank a solid balance sheet and ample capital to pursue further growth initiatives.
The merger is expected to generate significant cost synergies, primarily through the consolidation of technology platforms and back‑office operations. Management projects savings of $10 million to $12 million annually by 2027, with the first year of savings anticipated in the third quarter of 2026. The deal also expands the bank’s agricultural lending portfolio, leveraging Community West’s established relationships with local farmers and agribusinesses to deepen market penetration and cross‑sell deposit products. A $7.7 million termination fee is included to protect United Security in the event of a breach of the agreement.
Leadership continuity is a key feature of the transaction. James J. Kim will continue as CEO, ensuring strategic alignment and operational stability, while Dennis R. Woods will serve as chairman emeritus, providing institutional knowledge and a smooth transition. Shareholder concerns have surfaced, with The Ademi Firm and Halper Sadeh LLC investigating the fairness of the deal for their respective client groups. The investigations focus on the termination fee and the potential limitation on competing bids for United Security shareholders.
The merger positions the combined bank as the largest community bank in Fresno, Madera, Kings, and Tulare counties, capturing a 9.27% market share in the region. By integrating United Security’s 13 branches in Fresno, Bakersfield, and surrounding counties, the new entity will broaden its geographic footprint and enhance service offerings. The expanded network, coupled with a stronger balance sheet, is expected to improve competitive positioning against larger regional banks and increase the bank’s ability to serve the growing needs of the Central Valley’s agricultural and commercial sectors.
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