Blaine C. Lauhon
About Blaine C. Lauhon
Executive Vice President and Chief Operating Officer (COO) at Community West Bancshares (CWBC) since December 1, 2024; previously Chief Administrative Officer (Apr 1–Nov 30, 2024), Chief Banking Officer (Nov 2021–Mar 2024), Market Executive (Jul 2019–Nov 2021), and Senior Credit Officer (joined 2017). Education includes Dartmouth College Graduate School of Credit and Financial Management, University of Colorado Graduate School of Banking, and a B.S. in Agricultural Business from California State University, Chico . Company performance context during his leadership transition: FY2024 net income was $7.7M and diluted EPS $0.46 vs. $25.5M and $2.17 in FY2023, reflecting $20.5M merger-related expenses; deposits and loans grew materially post-merger . Pay-versus-performance shows CWBC cumulative TSR of $144 on a $100 base from 12/31/2020 through 2024 (peer KBW Regional Banking Index $143) with net income $7.666M and average non-brokered deposits $2,367M in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Community West Bancshares / Community West Bank | Chief Operating Officer | Dec 2024–present | Enterprise operations leadership post-merger integration |
| Community West Bancshares / Community West Bank | Chief Administrative Officer | Apr–Nov 2024 | Centralized administrative oversight during merger integration |
| Community West Bank | Chief Banking Officer | Nov 2021–Mar 2024 | Growth and client franchise stewardship across regions |
| Community West Bank | Market Executive | Jul 2019–Nov 2021 | Regional growth and market development |
| Community West Bank | Senior Credit Officer | 2017–2019 | Commercial and agribusiness credit leadership |
External Roles
No external directorships or outside public company board roles disclosed for Lauhon .
Fixed Compensation
| Item | Value | Notes |
|---|---|---|
| 2025 Base Salary | $310,000 | Employment agreements effective Jan 30, 2025 |
| Target Bonus (% of Base) | 45% | Senior Management Incentive Plan target; goals set annually by Feb 15 |
| Auto Allowance | $1,500/month | Or company vehicle; CEO discretion |
| Vacation | 20 days/year | Accrues monthly per policy |
| Expense Reimbursement | Yes | Necessary and customary business expenses |
| Prior Base (2023) | $270,000 | As NEO at predecessor (CVCY) before merger |
Performance Compensation
CWBC’s Senior Management Incentive Plan emphasizes financial and operating objectives tied to asset quality, growth, and profitability. NEO plans are built on metrics below; individual weightings vary by role. 2024 company-level targets and results (used to fund plan pools) were as follows:
| Metric | Threshold (50% payout) | Target (100% payout) | Max (150% payout) | Adjusted 2024 Performance | Payout Achieved |
|---|---|---|---|---|---|
| Net Consolidated Income ($000s) | $24,032 | $28,273 | $32,514 | $28,366 (ex-merger/investment one-time items) | 101% |
| YTD Avg Loans Outstanding ($000s) | $1,826,981 | $2,029,979 | $2,232,977 | $1,980,000 (adjusted for merger) | 88% |
| YTD Avg Total Deposits ($000s) | $2,166,523 | $2,407,248 | $2,647,973 | $2,500,000 (ex-brokered, adjusted for merger) | 119% |
| Classified/Criticized Loans / Gross Loans | 8.50% | 7.50% | 6.50% | 3.10% | 150% |
| NIE / Avg Assets | 2.71% | 2.51% | 2.31% | 2.59% | 70% |
Notes:
- CEO also had qualitative leadership goals (15% weighting) at 150% achievement .
- Actual 2024 NEO cash payouts (non-CEO) ranged 100–108% of target; Lauhon’s specific payout was not disclosed since he was not an NEO in 2024 .
Equity Ownership & Alignment
| Policy/Item | Detail |
|---|---|
| Stock Ownership Guideline | Minimum 2,000 CWBC shares for directors and executive management committee members; executives within 5 years. As of 12/31/2024, all directors and NEOs in compliance; Lauhon’s specific holdings not disclosed . |
| Anti-Hedging/Pledging | Hedging and pledging of CWBC stock prohibited under Insider Trading Policy . |
| Clawback | Incentive Compensation Recovery Policy (Dec 1, 2023) compliant with SEC 10D-1/Nasdaq; recoup erroneously awarded incentive compensation for 3 fiscal years preceding a restatement . |
| 2025 Omnibus Incentive Plan | Approved May 2025; authorizes options, RSUs, restricted stock, SARs, performance shares/units; 500,000 shares reserve; administration by Compensation Committee . |
| Typical Vesting (recent practice) | Restricted stock generally vests over 1–5 years; dividends are non-forfeitable; participating securities for EPS two-class method . |
| Acceleration on Change-in-Control | Unexercised options and unvested restricted stock vest immediately upon dissolution/liquidation/merger or change in control under legacy agreements; new 2025 agreements allow Committee discretion and generally require qualifying termination following change in control . |
Employment Terms
| Provision | Terms |
|---|---|
| Effective Date | Jan 30, 2025 (COO employment agreement) |
| Term | Initial two-year term; auto-renews for successive one-year terms unless 60-day nonrenewal notice; nonrenewal without cause deemed early termination without cause |
| Duties | COO; reports to CEO; full-time service; conflict policies apply |
| Non-Compete/Non-Solicit | New 2025 executive agreements require protecting confidential information, refraining from competing during employment, and refraining from using confidential information to solicit employees for one year post-termination |
| Severance – Without Cause / Good Reason (no CoC) | Monthly payments equal to average monthly total cash compensation for 12 months or until comparable employment obtained |
| Change-in-Control Economics | New 2025 agreements provide payouts upon qualifying termination following a change in control; legacy EVP agreements provided lump sum equal to 18× average monthly total cash compensation; equity awards accelerate; subject to 280G cutback |
| Benefits/Perqs | Auto allowance $1,500/month or company vehicle; 20 days vacation; business expense reimbursement per policy |
| Clawback | Company policy covers incentive-based compensation for covered executives |
Performance & Track Record
| Measure | 2023 | 2024 |
|---|---|---|
| Net Income ($M) | 25.5 | 7.7 (impacted by $20.5M merger-related expenses and investment portfolio restructuring) |
| Diluted EPS ($) | 2.17 | 0.46 |
| Avg Non-Brokered Deposits ($M) | 2,063 | 2,367 |
| Cumulative TSR (Base $100 at 12/31/2020) | 162 | 144 |
Key operating highlights for 2024 included net loans +$1.03B (+81%), total assets +$1.09B (+45%), total deposits +43% post-merger; capital ratios remained strong (Tier 1 leverage 9.17%, CET1 11.15%, Tier 1 RBC 11.33%, Total RBC 13.58%) .
Governance, Benchmarking, and Shareholder Feedback
- Compensation peer group (12 CA commercial banks; 0.5–2.5× assets) used for benchmarking; includes Bank of Marin Bancorp, BayCom Corp, California BanCorp, Heritage Commerce Corp, American Riviera Bancorp, Oak Valley Bancorp, Five Star Bancorp, Sierra Bancorp, United Security Bancshares, Farmers & Merchants Bancorp, First Northern Community Bancorp, and Community West Bancshares (acquired) .
- 2024 Say-on-Pay approval approximately 94% .
- Good practices: variable pay emphasis; ownership guidelines; anti-hedging/pledging; independent consultant; clawback; no tax gross-ups; no option repricing/exchanges without shareholder approval .
Risk Indicators & Red Flags
- Related party transactions: none >$120,000 in 2024; related party loans at market terms .
- Hedging/pledging prohibited (alignment positive) .
- Equity award acceleration historically on change in control; new plan gives Committee discretion, with potential investor scrutiny on acceleration terms .
- Clawback compliant with SEC/Nasdaq .
Investment Implications
- Retention risk appears mitigated by a two-year term and standard severance; new 2025 agreements shift toward double-trigger change-in-control severance, reducing windfall risk while preserving retention .
- Pay-for-performance alignment is credible: COO bonus targets are sizable (45% of salary) and historically funded by objective financial metrics (net income, loan and deposit growth, asset quality), with Committee adjustments for strategic one-time costs (merger, investment restructuring) .
- Alignment signals are constructive: ownership requirements, anti-hedging/pledging, and clawback reduce adverse trading incentives; equity awards under the 2025 Plan vest over time and can be performance-based, supporting long-term execution .
- Near-term insider selling pressure appears limited based on time-based vesting schedules and no pledging; specific Lauhon holdings and vesting calendars are not disclosed, which reduces precision of ownership analysis .