Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — D.A. Davidson Financial Institutions Conference 2017
23 slides from Community West Bancshares's conference presentation, May 12, 2017
Slide 1: Investor Presentation, D.A. Davidson Financial Institutions Conference
Investor Presentation D.A. Davidson Financial Institutions Conference May 9 - 11, 2017 Jim Ford President & CEO Dave Kinross EVP CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Forward-looking Statements -- Certain matters discussed 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 Compa
Slide 3: Experienced Management Team
Experienced Management Team 3 Executive Position Years at CVCY Years of Experience James M. Ford President & CEO 3 37 David A. Kinross EVP, Chief Financial Officer 11 27 Gary D. Quisenberry EVP Commercial & Business Banking 17 32 Lydia E. Shaw EVP Community Banking 10 32 Patrick J. Carman EVP, Chief
Slide 4: Overview
Overview 4 NASDAQ Symbol CVCY Market Capitalization $250.1 Million Institutional Ownership 40% Insider Ownership 14% Total Assets $1.5 Billion Headquarters Fresno, CA Number of Branches 22 Year Established 1980 Strategic Footprint Bakersfield to Sacramento 22 Branches in 9 Contiguous Counties As of
Slide 5: Financial Highlights
Financial Highlights 5 Q1 2017 2016 2015 Total Average Assets $1.45 Billion $1.32 Billion $1.22 Billion Net Income $4.25 Million $15.18 Million $10.96 Million Diluted EPS $0.35 $1.33 $1.00 Net Interest Margin 4.36% 4.09% 4.01% ROA 1.17% 1.15% 0.90% ROE 10.20% 9.84% 8.12% Cash Dividends per share $0.
Slide 6: Attractive Investment Opportunity
Attractive Investment Opportunity 6 As of April 28, 2017 Source: NASDAQ Monthly Closing Price Data 0 5 10 15 20 25 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 P ri ce CVCY Stock Price
Slide 7: Growing Franchise
Growing Franchise 7 Note: Acquisition of Visalia Community Bank occurred on July 1, 2013 and Acquisition of Sierra Vista Bank occurred on October 1, 2016 853,078 986,924 1,157,483 1,222,526 1,321,007 1,450,530 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2012 2013 2014 2
Slide 8: Strong Net Income and NIM
Strong Net Income and NIM 8 7,520 8,250 5,294 10,964 15,182 4,250 4.21 4.09 4.11 4.01 4.09 4.36 3.80 3.90 4.00 4.10 4.20 4.30 4.40 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2012 2013 2014 2015 2016 Q1 2017 Pe rc e n t Th o u sa n d s Net Income Net Interest Margin
Slide 9: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds 9 719,601 848,493 1,006,560 1,065,798 1,144,231 1,260,048 0.23 0.15 0.11 0.09 0.09 0.08 0.00 0.05 0.10 0.15 0.20 0.25 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2012 2013 2014 2015 2016 Q1 2017 Pe rc e n t Th o u sa n d s Average To
Slide 10: Attractive Deposit Mix
Attractive Deposit Mix 10 Non-Interest Bearing 37% Now/Savings 30% Money Market 21% TCDs 12% As of Mar. 31, 2017 Total Deposits = $1.27 Billion
Slide 11: Loan Totals and Yield
Loan Totals and Yield 11 394,575 445,300 533,531 578,899 644,282 743,436 6.06 5.96 5.53 5.27 5.29 5.50 4.80 5.00 5.20 5.40 5.60 5.80 6.00 6.20 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2012 2013 2014 2015 2016 Q1 2017 Pe rc e n t Th o u sa n d s Average Total Loans Total Loan
Slide 12: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio 12 Commercial & Industrial, 12% Agriculture Production & Land, 12% Owner Occupied Real Estate, 25% R/E Construction & Land, 10% Commercial Real Estate, 27% Other Real Estate, 2% Equity Loans and Lines, 8% Consumer & Installment, 4% As of Mar. 31, 2017 Excludes Deferre
Slide 13: Agricultural Loan Commitments
Agricultural Loan Commitments 13 Almonds 25% Table Grapes 6% Open Land 17% Walnuts 8% Wine Grapes 9% Other 10% Tomatoes 2% Raisins 5% Cherries 9% Tree Fruit 3% Cotton 1% Pistachios 3% Citrus 1% Wheat 0% Alfalfa 1% As of Mar. 31, 2017
Slide 14: Conservative Investment Portfolio
Conservative Investment Portfolio 14 US Government Agencies 13% Municipal Securities 51% Agency CMO, MBS & Other Securities 35% Equity Mutual Funds 1% As of Mar. 31, 2017 Total = $529 Million Yield = 3.31% Duration 3.54 Years
Slide 15: On the Horizon
On the Horizon 15 Organic Loan Growth Close FOLB Acquisition in Q4 ‘17 Improve Efficiencies Fee Income Improvements Relationship Pricing & Customer Profitability Monitor Agriculture Impacts from Water, Regulation, Labor and Global Pricing
Slide 16: Investing in Relationships
16 Investing in Relationships
Slide 17: Acquisition of Folsom Lake Bank
Investor Presentation Acquisition of Folsom Lake Bank April 27, 2017
Slide 18: Forward-Looking Statements
Forward-Looking Statements 18 Certain matters discussed in this press release 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 cu
Slide 19: Enhancing CVCY's Presence in Sacramento
Enhancing CVCY’s Presence in Sacramento 19 Source: SNL Financial. (1) GAAP when available, otherwise bank call report for the most recent available quarter. FOLB Financial Highlights (1) Transaction Highlights $1.7 billion in pro forma assets Continue franchise expansion and increase market shar
Slide 20: Transaction Overview
Transaction Overview 20 (1) Based on CVCY’s closing price of $23.43 on 4/27/2017. In-the-money stock options of FOLB will be assumed in the transaction. (2) Based on 12,198,580 CVCY common shares outstanding as of 3/31/2017. Diluted Transaction Value: Implied Price per Share: Transaction Structure:
Slide 21: Financial Impact and Assumptions
Financial Impact and Assumptions 21 (1) Includes purchase accounting adjustments and transaction expenses. Price / Tangible Book Value: 2018e EPS Accretion: TBV Earnback: Internal Rate of Return: 1.71x ~ 3% < 2.5 years > 15% Pro Forma Capital Ratios(1): Loan Mark: Cost Savings: Earnings: Tangible Co
Slide 22: Pro Forma Loan Composition
$16 $39 $64 $73 $74 $75 $78 $93 $103 $120 2007Y 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y Pro Forma Loan Composition (12/31/2016) 22 Source: SNL Financial. Data per regulatory reports (FR Y-9C and bank call report), as applicable. Note I: Residential Real Estate includes home equity loan
Slide 23: Pro Forma Deposit Composition
$15 $44 $88 $93 $97 $110 $111 $125 $144 $164 2007Y 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y Pro Forma Deposit Composition (12/31/2016) 23 Source: SNL Financial. Data per regulatory reports (FR Y-9C and bank call report), as applicable. Note: Pro Forma loan balance does not include antic
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