The Board of Directors of CommerceWest Bank (OTC:CWBK) (the "Bank") has approved entering into an Agreement and Plan of Reorganization and Merger (the "Plan of Merger") with CW Bancorp ("Bancorp") and CW Interim Merger Corp., by which the Bank intends to become a wholly-owned subsidiary of Bancorp. If the transaction is approved by the Bank’s shareholders and the appropriate federal and California state regulatory authorities, each of the outstanding shares of the Bank’s common stock will be exchanged for one share of Bancorp’s common stock. As a result, the shares of Bancorp’s common stock will be owned directly by the Bank’s shareholders in the same proportion as their existing ownership of Bank common stock immediately prior to the reorganization.
"We decided to undertake this transaction because we believe that this reorganization is in the best interest of our Bank and supports our long term growth strategy. The holding company structure provides us with additional corporate and capital flexibility," said Ivo A. Tjan, Chairman and Chief Executive Officer, "There will be no change in the Bank’s directors or executive officers following the reorganization, and the Bancorp’s directors and officers will be the same as the Bank’s immediately prior to the reorganization."
Following the reorganization, it is expected that Bancorp’s common stock will trade under the same ticker symbol currently used by the Bank, "CWBK."
The Bank anticipates consummating the reorganization at the end of the fourth quarter of 2020 or the beginning of the first quarter of 2021.
CommerceWest Bank is a California based full service commercial bank with a unique vision and culture of focusing exclusively on the business community. Founded in 2001 and headquartered in Irvine, California. The Bank serves businesses throughout the state with an emphasis on clients in Orange County, San Diego, Los Angeles, and Riverside Counties. We are a full service business bank and offer a wide range of commercial banking services, including remote deposit solution, online banking, mobile banking, lines of credit, working capital loans, commercial real estate loans, SBA loans, and treasury management services.
Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, failure to receive regulatory approval or shareholder approval of the reorganization, a decision by the Board of Directors to abandon the reorganization, changes in the federal, state and local economies, decline in loan production, loss of clients, adverse regulatory and litigation developments, the ability to control costs and expenses, interest rate changes, the effects of COVID-19 on our business, borrowers, clients and employees, financial policies of the United States government, natural disasters and the impact of competition in our market area. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments except as required by law.
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