Letter Rescinding Memorandum of Understanding Between Federal Reserve Bank of San Francisco and Community West Bancshares

Summary

The Federal Reserve Bank of San Francisco informs Community West Bancshares that, due to sustained compliance with a prior Memorandum of Understanding (MOU) and correction of regulatory issues, the MOU is now rescinded. The letter also notes that the subsidiary, Goleta National Bank, has complied with a related consent order. The Reserve Bank will continue to monitor the institution's risk profile through regular reports and examinations. No further immediate action is required from Community West Bancshares, but ongoing oversight will continue.

EX-10.19 4 doc2.txt FEDERAL RESERVE BANK OF SAN FRANCISCO 101 MARKET STREET, SAN FRANCISCO 94105 November 6, 2003 RYAN D. SCHLICHTING MANAGER, ENFORCEMENT BANKING SUPERVISION AND REGULATION Mr. Llewellyn Stone President and Chief Executive Officer Community West Bancshares 455 Pine Avenue Goleta, California 93117 Dear Mr. Stone: This is in regards to the Memorandum of Understanding (the "MOU") between Community West Bancshares ("Bancshares") and the Federal Reserve Bank of San Francisco (the "Reserve Bank"), effective February 22, 2001. Our records indicate that Bancshares has continued to sustain compliance with the Reserve Bank's MOU since the fourth quarter of 2001, including the correction of 23 A & B violations of law, strengthening of internal controls, reduction of the level of debt, and improved capital planning. Moreover, our review indicates that the subsidiary bank, Goleta National Bank has achieved full compliance with the Office of Comptroller of the Currency's consent order dated October 28, 2002, which was lifted on October 21, 2003. As a result of the findings noted above, the Reserve Bank hereby rescinds the MOU. As part of this Reserve Bank's initiative to conduct a risk-focused supervisory program, we will continue to monitor your institution's risk profile using bank and holding company regulatory reports, public information, and the examination reports we receive from your primary bank supervisor. Should you have any questions, please do not hesitate to contact us. Sincerely, /s/ Ryan D. Schlichting Telephone: (415) 974-2896 FAX: (415) 974-2855 Email: ***@***