West Coast Community Bancorp · NASDAQ:WCCB
West Coast Community Bancorp — Santa Cruz County Bank — Investor Presentation (May 2023)
28 slides from West Coast Community Bancorp's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared by Santa Cruz County Bank, (the “Company” or “SCZC”) solely for informational purposes based on its own information, as well as information from public sources. Certain of the information contained herein may be derived from information provide
Slide 3: Santa Cruz County Bank
Santa Cruz County Bank Community bank headquartered in Santa Cruz, CA Opened in 2004 150+ employees Krista Snelling joined as CEO on March 1, 2021 $1.7 billion in assets 8 branches Salinas branch (Monterey County) opened January 2023 Merged with Lighthouse Bank in Q4 2019 3
Slide 4: Leadership Team
Leadership Team Mary Anne Carson Krista Snelling Cecilia Situ Jon P. Sisk Angelo DeBernardo EVP Chief Marketing Officer President & Chief Executive Officer EVP Chief Financial Officer EVP Chief Banking Officer EVP Chief Lending Officer Susan Just Jaime Manriquez Maxwell Sinclair Shamara van der Voor
Slide 5: Attractive Markets
Attractive Markets County # of Branches Deposit Market Share Population Median Household Income Santa Cruz County 5 15.3% 273K $110K Santa Clara County 1 0.93% 2.1M $138K Monterey County 2 0.65% 446K $74K 5
Slide 6: Q1 2023 Results
Q1 2023 Results Strong Balance Positive Trends Continued Strong Consistent Profitability Sheet Growth in Key Metrics Credit Quality $1.727 Billion $12.9 Million 2.08% 0.15% Total Assets PTPP Earnings ROAA NPAs/Assets $1.316 Billion $8.9 Million 20.90% 0.20% Record Total Loans (Excl. Net Income ROATC
Slide 7: Financial Highlights
Financial Highlights ANY BANK
Slide 8: Solid Liquidity Position
Solid Liquidity Position Total available Amount used Net availability As of March 31, 2023 Cash and due from banks $ 37,006 $ - $ 37,006 Unencumbered AFS securities 240,762 - 240,762 Strong on balance sheet Total internal sources 277,768 - 277,768 liquidity position coupled with available external F
Slide 9: AFS Investments
AFS Investments US Gov't sponsored agencies 4% MBS/CMO 11% SBA backed By market value as of March 31, 2023 securities 5% Modified duration of 2.5 years. Municipal bonds 1% 99% of investment securities classified as available for sale (AFS). US Treasury bonds 79% 9
Slide 10: Deposit Characteristics ($ in MM)
Deposit Characteristics ($ in MM) $1,800,000 58% $1,600,000 57% 57% $1,400,000 56% As of March 31, 2023 $1,200,000 55% $792,745 $1,000,000 $831,022 54% Insured deposits includes fully collateralized balances $800,000 53% Positive trend on insured % $600,000 52% 52% Successful migration of clients in
Slide 11: Attractive Deposit Mix
Attractive Deposit Mix CDs > $250k 8% As of March 31, 2023 Money Market CDs < $250k 24% 3% Top 10 deposit relationships (excluding government agency deposits Savings that are fully collateralized) represent Interest Bearing 8% approximately 11% of total deposits. Demand 15% Growth opportunities incl
Slide 12: Diverse Commercial Deposits
Diverse Commercial Deposits Wholesale Trade Retail Trade Accommodation and Food 2% 4% Educational Services Services 4% Finance and Insurance 4% 3% Arts, Entertainment, and Agriculture, Forestry, Recreation Fishing and Hunting 5% 3% Manufacturing 7% Other / Not Specified 14% Professional, Scientific,
Slide 13: Exceptional Credit Culture
Exceptional Credit Culture Nonperforming Loans As of March 31, 2023 Nonperforming loans ($000) 2018 2019 2020 2021 2022 2023Q1 (including 90+ days past due) Nonaccrual Loans to total loans of 0.20%. 1-4 Family $0 $0 $0 $0 $808 $0 Only four nonaccrual loans. CRE & Multifamily 0 0 0 0 0 0 Construction
Slide 14: Loans By Type
Loans By Type Outstanding Loans as of March 31, 2023 Q1 2023 loan yield of 6.49%. PPP loans down from peak of $550MM to $3MM. 14
Slide 15: Real Estate Loan Detail
Real Estate Loan Detail As of March 31, 2023 15
Slide 16: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Assets ($MM) Gross Loans Excl. PPP Incl. Deferred Fees ($MM) $1,265 $1,316 $1,701 $1,744 $1,727 $1,109 $1,423 $917 $758 $1,071 $662 $322 $488 $227 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 Total Deposits ($MM) Tangible Common Equi
Slide 17: Strong Profitability
Strong Profitability Net Income ($MM) Pre-Tax, Pre-Provision Net Income ($MM) 2.08% $45.4 3.03% $30.9 $36.9 1.75% $36.0 2.55% 1.56% $21.3 2.28% $27.5 $52.4 $17.6 1.76% 2.58% $11.4 $12.3 $16.6 $17.9 2.29% 2.12% 1.36% 1.32% $8.9 $12.9 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 2018Y 2019Y 2020Y 2021Y 2022Y
Slide 18: Disciplined Pricing Drives NIM
Disciplined Pricing Drives NIM Yield on Loans Cost of Deposits High yielding loan portfolio with excellent credit quality Low-cost deposit base 0.75% 6.49% 0.59% 5.81% 5.87% 0.39% 5.44% 0.34% 0.35% 5.42% 4.88% 0.23% 0.31% 5.40% 5.47% 4.72% 5.41% 0.34% 5.17% 0.14% 0.23% 0.24% 4.80% 4.69% 4.84% 0.14%
Slide 19: Robust Capital Position
Robust Capital Position TCE Ratio Tier 1 Ratio 11.69% 13.45% 15.01% 14.34% 13.62% 13.69% 13.47% 10.34% 10.03% 9.44% 9.90% 10.39% 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 TCE CECL impact on TCE of -19bps Tier 1 CECL impact on Tier 1 Ratio of -23bps Total Capital Ratio
Slide 20: Per Share Data
Per Share Data Earnings per Share (EPS) Tangible Book Value per Share (TBVPS) $4.26 $3.63 $20.91 $20.04 $18.50 $16.50 $2.50 $14.38 $2.13 $2.05 $2.07 $12.72 $1.05 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 *Dotted line represents annualized Q1 2023 20
Slide 21: Shareholder Focused
Shareholder Focused Superior Price Performance Cash Dividend 60% 50% $0.150 $0.150 20% $0.125 $0.110 Relative Price Performance (%) 40% $0.090 $0.063 30% $0.045 $0.057 $0.057 20% 10% 0% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 -10% -20% -11% Adjusted for stock dividends
Slide 22: Community Reinvestment
Community Reinvestment 2,400+ Hours of Community Service in 2022 Outstanding CRA Rating – Corporate Leadership Through volunteerism and service on boards and committees, we reinvest our time and financials into the communities we serve by supporting local non-profits, service clubs, chambers and cha
Slide 23: Rankings and Recognition
Rankings and Recognition National California FINANCIAL MANAGEMENT CONSULTING S&P G LOBAL Ranked 6th in the nation in performance, for banks under (FMC) GROUP $3 billon in assets Ranked 13th out of 127 Banks in California for 2022 overall financial performance. BAUER FINANCIAL, INC THE FINDLEY REPORT
Slide 24: Investment Highlights
Investment Highlights Capacity to Grow Profitability • Profitability metrics are best • Consistent organic growth amongst peers • Robust capital levels • Disciplined expense • Attractive markets management Featured Business Lines Clear Vision • SBA lending expertise • New product development • Focus
Slide 25: Appendix
Appendix ANY BANK
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation TTangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible as
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation For periods presented below, efficiency ratio is a non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. This figure represents the ratio of noninterest expense less other real estate owned operations and amortization of intangible assets expense to the sum of
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision net income is a non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. We calculate pre-tax, pre-provision net income by excluding income tax and provision for credit losses from net income. Management believes that the exclusion of such
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