Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — FIG Partners Bank CEO Forum 2019
19 slides from Community West Bancshares's conference presentation, Jan 31, 2019
Slide 1: Investor Presentation – FIG Partners Bank CEO Forum
Investor Presentation FIG Partners Bank CEO Forum January 30 – 31, 2019 Jim Ford President & CEO Dave Kinross EVP CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain matters discussed herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not historical facts, such as statements regarding the Company’s current business str
Slide 3: Experienced Management Team
Experienced Management Team Years at Years of Executive Position CVCY Experience James M. Ford President & CEO 4 38 David A. Kinross EVP, Chief Financial Officer 12 28 James J. Kim EVP, Chief Administrative Officer 1 18 Gary D. Quisenberry EVP Commercial & Business Banking 18 33 Lydia E. Shaw EVP Co
Slide 4: Overview
Overview 21 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $260 Million Institutional Ownership 48% Insider Ownership 17% Total Assets $1.54 Billion Headquarters Fresno, CA Number of Branches 21 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of Dec
Slide 5: Overview of the Region
Overview of the Region Seven Metropolitan Statistical Areas • Agricultural products from the region totaled $26.9 billion in 2017, more than 48 states. • Regional GDP equaled $245.7 billion in 2017, more than 26 states including Oregon and Nevada. • Regional Population equaled 5.6 million in 2018, m
Slide 6: Region Comparative Data
Region Comparative Data Fresno MSA Stockton Sacramento California USA MSA MSA Job Growth (1 year, Dec 2017-18) 2.5% 2.6% 1.6% 1.7% 1.8% (5 years, Dec 2013-18) 17.2% 18.2% 13.5% 12.6% 9.4% Population Growth (1 year, 2017-2018) 1.1% 1.3% 1.4% 0.5% 0.6% (5 years, 2013-2018) 5.3% 7.4% 5.4% 3.6% 3.5% Med
Slide 7: Financial Highlights
Financial Highlights 2018 2017 2016 Total Assets $1.54 Billion $1.66 Billion $1.44 Billion Net Income $21.29 Million $14.03 Million $15.18 Million Diluted EPS $1.54 $1.10 $1.33 Net Interest Margin 4.44% 4.41% 4.09% ROAA 1.35% 0.94% 1.15% ROAE 10.07% 7.69% 9.84% Cash Dividends per share $0.31 $0.24 $
Slide 8: Attractive Investment Opportunity
Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 5 0 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 As of January 22, 2019 Source: NASDAQ Monthly Closing Price Data 8
Slide 9: Growing Franchise
Growing Franchise Average Total Assets 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Thousands 800,000 1,577,410 1,491,696 1,321,007 1,222,526 600,000 1,157,483 986,924 400,000 200,000 0 2013 2014 2015 2016 2017 2018 Note: Acquisitions of Visalia Community Bank occurred on July 1, 2013, Sierra V
Slide 10: Strong Net Income and NIM
Strong Net Income and NIM 25,000 4.50 4.44 4.41 4.41 4.40 20,000 4.30 4.20 15,000 4.11 4.09 4.09 4.10 Percent Thousands 4.01 21,289 10,000 4.00 17,561 15,182 14,026 3.90 10,964 5,000 8,250 3.80 5,294 0 3.70 2013 2014 2015 2016 2017 2017* 2018 Net Income Net Interest Margin * Excluding DTA revaluatio
Slide 11: Solid Earnings ROAA / ROAE
Solid Earnings ROAA / ROAE 1.60 14.00 1.40 11.56 12.00 10.07 1.20 9.84 10.00 1.00 8.12 7.69 8.00 6.89 0.80 1.41 6.00 1.35 Percent ROAE Percent ROAA 0.60 4.06 1.15 0.90 0.94 4.00 0.40 0.84 2.00 0.20 0.46 - - 2013 2014 2015 2016 2017 2017* 2018 ROAA ROAE * Excluding DTA revaluation 11
Slide 12: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds Average Total Deposits 1,600,000 0.15 0.16 1,400,000 0.14 1,200,000 0.12 0.11 1,000,000 0.09 0.09 0.10 0.09 0.08 800,000 0.08 1,333,754 Percent Thousands 1,284,305 600,000 0.06 1,144,231 1,006,560 1,065,798 400,000 848,493 0.04 200,000 0.02 0 0.00 2013
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix Total Deposits = $1.28 Billion TCDs 7% Money Market 21% Non-Interest Bearing 43% Now/Savings 29% As of December 31, 2018 13
Slide 14: Loan Totals and Yield
Loan Totals and Yield Average Total Loans 1,000,000 6.20 900,000 5.96 6.00 800,000 700,000 5.80 600,000 5.53 5.51 5.50 5.60 500,000 Percent Thousands 912,128 5.40 400,000 5.27 5.29 790,504 300,000 578,899 644,282 5.20 533,531 445,300 200,000 5.00 100,000 0 4.80 2013 2014 2015 2016 2017 2018 Total Lo
Slide 15: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Consumer & Total Loans = $917 Million Equity Loans and Installment, 4% Lines, 8% Other Real Estate, 4% Commercial & Industrial, 11% Agriculture Production & Land, 9% Owner Occupied Commercial Real Real Estate, 20% Estate, 33% R/E Construction & Land, 11% As of Decembe
Slide 16: Agricultural Loan Commitments
Agricultural Loan Commitments Pistachios Citrus 3% 1% Cotton Tree Fruit 1% Almonds 9% 18% Cherries Table Grapes 9% 2% Raisins Open Land 8% 15% Tomatoes 4% Row Crops 3% Walnuts Other 10% Wine Grapes 11% 6% As of December 31, 2018 16
Slide 17: Conservative Investment Portfolio
Conservative Investment Portfolio Total = $478 Million Yield = 3.08% Equity Mutual Duration 4.91 Years Funds US Government Fed Funds Sold 2% Agencies 1% 5% Private Label Mortgage and Asset Backed 26% Agency CMO, MBS & Other Securities 49% Municipal Securities 17% As of December 31, 2018 17
Slide 18: On the Horizon
On the Horizon Improve Efficiencies Organic Loan & Deposit Growth Invest in Team & Technology Realize Benefits from Branch Optimization Strategy Monitor Agriculture Impacts from Water, Regulation, Tariffs, Labor and Global Pricing 18
Slide 19: Investing in Relationships
Investing in Relationships 19
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