SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 12, 2000
Community West Bancshares
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(Exact Name of Registrant as Specified in its Charter
California 000-23575 77-0446957
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(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification Number
445 Pine Avenue, Goleta, California, 93117
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(Address of Principal Executive Offices) (Zip Code)
(805) 692-1862
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(Registrant's Telephone Number, Including Area Code)
5638 Hollister Avenue, Goleta, California 93117
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(Former Name or Former Address, if Changed Since Last Report)
Total No. of Pages: 2
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ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Pursuant to the requirements of Item 304(a)(1) of Regulation S-K, Community
West Bancshares (the "Registrant") is filing this Current Report on Form 8-K to
report a change in its independent accountant. The following sets forth the
information required by Item 304(a)(1) of Regulation S-K:
1. Effective May 12, 2000, the Registrant decided not to reappoint
Deloitte & Touche LLP, ("Deloitte") as the Registrant's independent
accountants.
2. Deloitte's reports on the Registrant's financial statements for the
past two fiscal years did not contain any adverse opinion or a
disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope or accounting principles, except that
Deloitte's report on its audit of the Registrant's financial
statements for the year ended December 31, 1999, included an emphasis
of matter paragraph relating to an agreement with the regulators.
3. The decision not to reappoint Deloitte was approved by the Audit
Committee of the Registrant's Board of Directors.
4. For the fiscal years ended December 31, 1999 and 1998, there were no
disagreements with Deloitte on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure which disagreements, if not resolved to the satisfaction of
Deloitte, would have caused it to make reference to the subject matter
of the disagreements in connection with its report, except that,
subsequent to the issuance of the Company's financial statements for
fiscal year 1998, which had been audited by Deloitte & Touche, LLP,
information came to the attention of the Company that caused it to
conclude that those financial statements were, as was subsequently
reported in the Company's Form 10-K dated March 31, 1999, materially
erroneous in the following respects: (1) the acquisition of Palomar
Community Bank in December 1998 which was previously accounted for
under the pooling-of-interests method of accounting, should have been
accounted for under the purchase method of accounting, (2) the
securitization of loans completed in December 1998, which was
previously accounted for as a sale should have been accounted for as a
secured borrowing with a pledge of collateral, (3) certain costs
related to second mortgage loans which were previously capitalized,
should have been charged to expense as incurred, (4) the prepayment
assumption used to value the I/O strip retained on sales of Title I
loans during 1998 was incorrect, (5) certain loan fees which were
previously recognized as income when received, should have been
deferred and amortized, and (6) the calculation of regulatory capital
amounts and ratios as of December 31, 1998 was incorrect. This
information caused the Company to disagree with the audited accounting
treatment of these matters in its previously issued fiscal year 1998
financial statements. Accordingly, on December 31, 1999, the Company
issued restated fiscal year 1998 financial statements that corrected
these errors. The Company's Audit Committee discussed the subject
matter of these disagreements before authorizing the restated fiscal
year 1998 financial statements. The Company hereby authorizes Deloitte
& Touche, LLP, to respond fully to the successor accountant concerning
the subject matter of each of such disagreements.
In the subsequent interim period through May 12, 2000, there were no
disagreements with Deloitte on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure which disagreements, if not resolved to the satisfaction of
Deloitte, would have caused it to make reference to the subject matter
of the disagreements in connection with its report.
5. During the fiscal years ended December 31, 1999 and 1998 and the
subsequent Interim period through May 12, 2000, there were no
"reportable events" as described in Item 304(a)(1)(v) of Regulation
S-K except as follows. In connection with its audit of the
Registrant's financial statements for the year ended December 31,
1999, Deloitte communicated to the Registrant the existence of a
reportable condition in internal control relating to a lack of depth
in accounting department personnel, that if not remedied could
adversely affect the Company's ability to record, process, summarize,
and report financial data consistent with the assertions of management
in the financial statements.
The Registrant has engaged the firm of Arthur Andersen, LLP ("Andersen") as
its independent accountants effective May 15, 2000. During the fiscal years
ended December 31, 1999 and 1998, and the subsequent interim period through May
12, 2000 the Registrant did not consult Andersen regarding either:
(1) the application of accounting principles to a specified transaction,
either completed or proposed; or the type of audit opinion that might
be rendered on the Registrant's financial statements; or
(2) any matter that was either the subject of a disagreement or a
"reportable event" as defined in Item 304(a)(1)(iv) and (v) of
Regulation S-K.
The Registrant has requested from Deloitte a letter addressed to the
Commission which is required pursuant to Item 304(a)(3) of Regulation S-K. Such
letter will be furnished as an amendment to this Report.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date May 15, 2000 COMMUNITY WEST BANCSHARES
By: /s/ Lynda Pullon Radke
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Lynda Pullon Radke
Senior Vice President and
Chief Financial Officer
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