United Security Bancshares and Community West Bancshares Receive Key Regulatory Approvals for Merger

FRESNO, CA – March 16, 2026: United Security Bancshares (“USB”, NASDAQ: UBFO) and Community West Bancshares (“CWBC”) have jointly announced a significant milestone in their previously disclosed merger plan. Both companies have received crucial regulatory approvals and waivers from the Federal Deposit Insurance Corporation (FDIC), the California Department of Financial Protection and Innovation, and the Federal Reserve Bank of San Francisco. These approvals clear major hurdles for the completion of their merger, which is now expected to close in the second quarter of 2026, pending shareholder approval and the satisfaction of customary closing conditions.

Key Points for Investors

• Regulatory Approvals and Waiver: The FDIC, California Department of Financial Protection and Innovation, and the Federal Reserve Bank of San Francisco have formally approved and provided waivers for the merger of USB with and into CWBC. Additionally, approval was granted for the merger of United Security Bank, USB’s banking subsidiary, with and into Community West Bank, CWBC’s banking subsidiary.
• Shareholder Vote Scheduled: Special meetings for shareholders of both USB and CWBC are set for March 30, 2026. The merger’s completion is contingent on approval at these meetings, making this date highly significant for current investors.
• Expected Closing Timeline: The closing of the transaction is anticipated in Q2 2026, subject to shareholder approval and other customary closing conditions.
• Potential Impact on Shareholder Value:
  • The merger is expected to create a larger, more competitive banking institution in California, with enhanced operational efficiencies and broader market reach.
  • Risks remain, including possible failure to realize anticipated synergies, potential delays or higher costs in integration, and dilution from the issuance of additional CWBC shares.
  • The announcement and completion of the merger may affect customer, employee, and investor sentiment, potentially impacting share price positively or negatively.
  • The merger is subject to uncertainties such as shareholder approval, integration challenges, and broader economic conditions.
• Forward-Looking Statements: Both companies caution that actual results may differ materially from those currently anticipated due to a range of risks and uncertainties, including the integration process, employee retention, shareholder votes, and economic conditions.
• Additional Information for Shareholders: CWBC has filed a registration statement on Form S-4 with the SEC, which includes a joint proxy statement/prospectus sent to shareholders. Investors are strongly encouraged to review these documents before making any voting decisions, as they contain important information regarding the merger, potential effects, and risks.
• How to Access Official Documents: Documents related to the merger, including the joint proxy statement and prospectus, are available on the SEC website (www.sec.gov), as well as on the investor relations pages of both companies. Requests for physical copies can be made via the investor relations contacts listed in the press release.

Risks and Price Sensitivity

• Risk Factors: The press release and 8-K filing specifically enumerate risks that may affect shareholder value, including:
  • Failure to achieve expected merger benefits or synergies.
  • Integration challenges and delays.
  • Potential dilution from CWBC’s share issuance.
  • Economic and market changes affecting the combined entity.
  • Uncertainty regarding shareholder approval at the special meetings.
  • Possible diversion of management attention and employee retention issues.
• Price Sensitivity: The outcome of the shareholder vote, the successful completion of the merger, and any unexpected changes in integration or regulatory conditions could significantly impact USB’s share price (NASDAQ: UBFO) and CWBC’s share price. Investors should monitor developments closely, especially around the March 30, 2026 shareholder meetings and the anticipated Q2 closing.

Disclosure of Forward-Looking Statements

The companies remind investors that this report and the press release contain “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions. Investors should consult filings with the SEC, including Annual Reports on Form 10-K and the joint proxy statement/prospectus, for detailed risk disclosures.

Where to Find More Information

Investors and shareholders can access all related documents, including SEC filings and merger-related materials, free of charge from the SEC’s website or the investor relations pages of USB (investors.unitedsecuritybank.com) and CWBC (ir.communitywestbank.com). Requests for hard copies can be made through investor relations contacts provided in the press release.

Participants in the Solicitation

USB, CWBC, and certain directors, executive officers, and employees may be deemed participants in the solicitation of proxies from shareholders in connection with the merger. Information about their interests is included in the joint proxy statement/prospectus and in their respective annual reports and definitive proxy statements for the 2025 annual meetings.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Forward-looking statements are subject to risks and uncertainties, and actual outcomes may differ materially from those projected. Investors are urged to review all official filings and consult their financial advisors before making any investment decisions related to United Security Bancshares, Community West Bancshares, or the proposed merger.

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