Timothy J. Stronks
About Timothy J. Stronks
Timothy J. Stronks is Executive Vice President and Chief Risk Officer (CRO) of Community West Bancshares (CWBC), appointed April 1, 2024 following CWBC’s merger-combination completion; he is 55, a Certified Information Security Manager, and holds a BA from UC Santa Barbara, an MBA in IT Management from Western Governors University, and is a graduate of Pacific Coast Banking School . Company performance during his first year post-merger: 2024 net income was $7.7 million vs. $25.5 million in 2023, with diluted EPS $0.46 vs. $2.17 reflecting $20.5 million merger-related expenses; net loans grew $1.03 billion (+81%), total assets +$1.09 billion (+45%), and deposits +43% to $2.91 billion .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Community West Bank, N.A. | EVP, Chief Operating Officer and Chief Risk Officer | Not disclosed | Pre-merger operating and risk leadership prior to acquisition by CWBC on April 1, 2024 . |
| Rabobank | Senior Vice President, Deputy Director of Operations | Not disclosed | Operations leadership in regional banking operations . |
| Pacific Premier Bank | Executive Vice President | Not disclosed | Executive role following acquisition of Heritage Oaks Bank in March 2017 . |
| Heritage Oaks Bank | Executive Vice President, Chief Information Officer | Not disclosed | Technology leadership; bank acquired by Pacific Premier Bank in March 2017 . |
| Business First National Bank | Various positions | Not disclosed | Early banking roles; bank acquired by Heritage Oaks Bank . |
| Santa Barbara Bank & Trust | Various positions | Not disclosed | Early banking roles . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Science and Engineering Council of Santa Barbara | Board member | Not disclosed | Community/industry engagement; external network in technology and engineering . |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary (Employment Agreement) | — | $290,000 | Effective with appointment in merger on April 1, 2024. |
| Target Bonus % of Base | — | 20% | Target dollar $58,000 . |
| Actual Annual Cash Bonus (CD&A payout table) | — | $63,000 | 108% of target . |
| Non-Equity Incentive Comp (SCT) | — | $62,524 | Reported in Summary Compensation Table. |
| Salary Paid (SCT, partial year) | — | $211,923 | Reflects partial-year service in 2024. |
Performance Compensation
Annual Incentive Plan (2024)
| Metric Category | Weighting | Target | Actual | Payout | Notes/Vesting |
|---|---|---|---|---|---|
| Asset Quality | Not disclosed | Target bonus $58,000 | Not disclosed | 108% of target | Plan focuses on asset quality, growth, profitability; specifics not disclosed . |
| Growth | Not disclosed | Not disclosed | Not disclosed | Included in 108% payout | — |
| Profitability | Not disclosed | Not disclosed | Not disclosed | Included in 108% payout | — |
Long-Term Equity Awards (2024)
| Award Type | Grant Date | Shares | Grant-Date Fair Value | Vesting Schedule | FY-End Unvested Value |
|---|---|---|---|---|---|
| Time-based RSU | 5/30/2024 | 1,820 | $30,000 | 33 1/3% per year on May 30, 2025, 2026, 2027 | $35,253 (at $19.37 close) |
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership | 41,320 shares; less than 1% of outstanding . |
| Vested vs. Unvested | 1,820 unvested RSUs at FY-end; $35,253 value at $19.37/share . |
| Options | 35,155 options exercisable within 60 days of record date . |
| Ownership Guidelines | Minimum 2,000 shares required; all NEOs/directors in compliance as of Dec 31, 2024 . |
| Pledging/Hedging | No pledging or hedging disclosure identified for Mr. Stronks; proxy emphasizes stock ownership policy and compliance . |
Employment Terms
| Item | Disclosure |
|---|---|
| Appointment/Role | Appointed EVP, CRO on April 1, 2024 post-merger . |
| Employment Agreement Salary | $290,000 (effective at merger close) . |
| Severance – Voluntary Termination for Good Reason | $365,929 . |
| Severance – Involuntary Termination Without Cause | $365,929 . |
| Change-of-Control Payment (Employment Agreement) | $548,894 . |
| Change-of-Control – RSU Acceleration | $35,253 . |
| Trigger Structure | Not specified (single vs. double trigger not disclosed) . |
| Perquisites (2024 SCT footnote) | $946,811 change-in-control payments under Pre-Closing Agreement triggered by merger; $13,500 auto allowance; $26,203 group insurance; $15,146 401(k) contributions . |
| Related Party Transactions | None requiring disclosure under Item 404(a) related to Mr. Stronks . |
Company Performance Context (Tenure Window)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Net Income ($) | $25.5 million | $7.7 million (includes $20.5 million merger-related expenses) |
| Diluted EPS ($) | $2.17 | $0.46 |
| Net Loans (YoY change) | — | +$1.03 billion (+81%) |
| Total Assets (YoY change) | — | +$1.09 billion (+45%) |
| Total Deposits (YoY change) | — | +43% to $2.91 billion |
Investment Implications
- Pay-for-performance alignment: Annual incentive focused on asset quality, growth, and profitability with 2024 payout at 108% of target, indicating above-target operational delivery despite merger-related noise .
- Equity and selling pressure: RSUs vest 33 1/3% annually on May 30, 2025–2027; monitor Form 4s around vest dates and the 35,155 options exercisable within 60 days for potential incremental supply signals .
- Alignment and retention: Ownership of 41,320 shares with policy compliance supports alignment; severance (good reason/without cause ~$366k) and CoC ($549k plus RSU acceleration $35k) provide moderate protection and potential retention stability .
- One-time merger compensation: 2024 “All Other Compensation” includes $946,811 in change-in-control payments under a pre-closing agreement triggered by the merger; this is non-recurring but relevant to total compensation optics and cash liquidity .
- Governance and risk oversight: CRO role is central to post-merger integration and risk management; Board articulates robust risk oversight processes across committees, which can mitigate execution risk in the enlarged franchise .