Insider Trading February 20, 2026

Community West Bancshares Director Adds 376 Shares; Company Reports Strong Q4 and Moves on Acquisition

Director Kirk Stovesand buys roughly $9,200 of CWBC stock as the bank posts double-digit earnings growth and announces an all-stock deal for United Security Bank

By Leila Farooq CWBC
Community West Bancshares Director Adds 376 Shares; Company Reports Strong Q4 and Moves on Acquisition
CWBC

Kirk Stovesand, a member of the board at Community West Bancshares, purchased 376 shares of the company on February 20, 2026, according to a Form 4 filing. The purchase, executed at $24.50 per share for a total of $9,212, comes amid upbeat company results - a 62% rise in fourth-quarter net income - a declared quarterly dividend and an agreed acquisition of United Security Bank for $192 million in stock. Stovesand now directly holds 78,612 shares.

Key Points

  • A Community West Bancshares director, Kirk Stovesand, bought 376 shares on February 20, 2026 for $24.50 per share, totaling $9,212, bringing his direct stake to 78,612 shares.
  • The bank reported a 62% increase in fourth-quarter net income to $11.17 million and declared a $0.12 quarterly cash dividend; it has paid dividends for 15 consecutive years.
  • Community West Bancshares agreed to acquire United Security Bank in a $192 million all-stock transaction; DA Davidson set a $26 price target and retained a Buy rating.

Transaction details

Community West Bancshares director Kirk Stovesand reported the acquisition of 376 shares of the bank's common stock in a Form 4 filed with the Securities and Exchange Commission. The trades took place on February 20, 2026, at a per-share price of $24.50, producing a total outlay of $9,212.

The purchase price is nearly in line with the prevailing market price of $24.46. Over the past 12 months the stock has risen roughly 32%.


Ownership context and dividend record

Following the transaction, Stovesand's direct ownership in Community West Bancshares stands at 78,612 shares. The company has maintained a streak of dividend payments for 15 consecutive years, and recently declared a quarterly cash dividend of $0.12 per common share.


Recent financial performance and strategic moves

Community West Bancshares reported a 62% increase in fourth-quarter net income, posting $11.17 million compared with $6.9 million in the same quarter a year earlier. In a strategic transaction disclosed alongside the earnings, the company has agreed to acquire United Security Bank in an all-stock deal valued at $192 million.


Analyst view and valuation note

DA Davidson has adjusted its price objective for Community West Bancshares to $26 while keeping a Buy rating on the shares. Separately, InvestingPro analysis cited in company commentary indicates the stock appears undervalued versus its Fair Value and lists it among the Most Undervalued opportunities.


Board changes and governance

The company is undergoing notable board turnover. Tom L. Dobyns will retire from the board of directors effective March 31, 2026. William S. Smittcamp, after 39 years of service, will also step down on March 31, 2026. Founding board member Daniel N. Cunningham is scheduled to retire on May 20, 2026, and will be named Director Emeritus at that time.


What this means

The insider purchase by Stovesand adds a modest personal investment at a price consistent with the market. At the same time, the company is reporting materially higher quarterly profitability, solid dividend continuity and a sizeable acquisition that will be paid in stock. The combination of an analyst upgrade, an external valuation assessment classifying the shares as undervalued and a period of board transitions frames the current corporate picture for shareholders and market observers.

Risks

  • Board turnover with multiple long-serving directors retiring in March and May 2026 creates governance transition risk that may affect strategic continuity - impacts the banking and financial services sector.
  • The planned $192 million all-stock acquisition of United Security Bank introduces integration and execution uncertainty tied to the transaction - impacts regional banking consolidation dynamics.
  • Valuation assessments vary: while InvestingPro lists the stock as among the Most Undervalued relative to Fair Value, differing analyst views and market conditions could alter investor sentiment - impacts financial markets and investor perceptions of regional banks.

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