Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — DA Davidson Financial Institutions Conference 2024
21 slides from Community West Bancshares's conference presentation, May 8, 2024
Slide 1: Investor Presentation – DA Davidson Financial Institutions Conference
Investor Presentation DA Davidson Financial Institutions Conference James J. Kim, Community West Bancshares, Chief Executive Officer Community West Bank, President & Chief Executive Officer Martin E. Plourd, Community West Bancshares, President Shannon R. Livingston, Community West Bancshares and Ba
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are forward-looking in nature and involve a number of risks and uncertainties. Such risks an
Slide 3: Merger Update
Merger Update 3 Legal close completed April 1, 2024 Day 1 acquisition accounting in process Conversion and integration project are ongoing Targeting third quarter for systems integration
Slide 4: Mission and Values
Mission Inspire and empower our team to enrich and invest in every relationship by exceeding expectations. Values Teamwork Accountability Excellence Integrity Caring Inclusivity
Slide 5: Holding Company Executive Officers
5 Executive Position Years at CWBC Years of Experience James J. Kim Chief Executive Officer 6 23 Martin E. Plourd President <1 42 Shannon R. Livingston, CPA Executive Vice President, Chief Financial Officer 1 19 Patrick A. Luis Executive Vice President, Chief Credit Officer 3 38 Holding Company Exec
Slide 6: Bank Executive Officers
6 Executive Position Years at CWBC Years of Experience James J. Kim President & Chief Executive Officer 6 23 Dawn M. Cagle Executive Vice President, Chief Human Resources Officer 6 37 William F. Filippin Executive Vice President, Regional Executive <1 32 Teresa F. Gilio Executive Vice President 14 4
Slide 7: Overview
7 NASDAQ Symbol CWBC Market Capitalization $330 Million Institutional Ownership 52% Insider Ownership 12% Total Assets $3.5 Billion Headquarters Fresno, CA # of Banking Centers 27 Year Established 1980 Strategic Footprint Central California As of April 1, 2024 Overview
Slide 8: Financial Highlights
8 2024 Q1 2023 2022 Total Assets $2.42 Billion $2.43 Billion $2.42 Billion Net Income $3.7 Million $25.54 Million $26.65 Million Diluted EPS $0.31 $2.17 $2.27 Net Interest Margin 3.42% 3.58% 3.52% ROAA 0.61% 1.04% 1.09% ROAE 7.08% 13.81% 14.25% Cash Dividends per share $0.12 $0.48 $0.48 Total Cost o
Slide 9: Attractive Investment Opportunity
0 5 10 15 20 25 30 12/1/2015 12/1/2016 12/1/2017 12/1/2018 12/1/2019 12/1/2020 12/1/2021 12/1/2022 12/1/2023 Pr ic e CVCY Stock Price CAGR = 12.43% 9 As of March 31, 2024 Source: NASDAQ Monthly Closing Price Data Attractive Investment Opportunity Dividend Payout Ratio – 22.12% Dividend Yield – 2.41%
Slide 10: Growing Franchise
10 Growing Franchise CAGR = 8.54% 1,574,089 1,832,987 2,267,615 2,439,394 2,460,358 2,420,810 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2019 2020 2021 2022 2023 2024 YTD Th ou sa nd s Average Total Assets
Slide 11: Strong Net Income & NIM
11 Strong Net Income & NIM 21,443 20,347 28,401 26,645 25,536 3,676 4.51 3.87 3.54 3.52 3.58 3.42 0.00 1.00 2.00 3.00 4.00 5.00 6.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2019 2020 2021 2022 2023 2024 YTD Pe rc en t Th ou sa nd s Net Income and Net Interest Margin Net Income Net Interest
Slide 12: Solid Earnings
12 Solid Earnings 1.36 1.11 1.25 1.09 1.04 0.61 9.39 8.85 11.50 14.25 13.81 7.08 - 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 2019 2020 2021 2022 2023 2024 YTD R O A E Pe rc en t R O A A P er ce nt ROAA / ROAE ROAA ROAE
Slide 13: Stable Deposit Base & Industry Low Cost of Funds
13 Stable Deposit Base & Industry Low Cost of Funds CAGR = 9.18% 1,295,780 1,568,194 1,974,576 2,156,092 2,155,241 2,055,140 0.15 0.09 0.05 0.06 0.72 0.98 0.00 0.20 0.40 0.60 0.80 1.00 1.20 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2019 2020 2021 2022 2023 2024 YTD Pe rc en t Th ou sa nd s A
Slide 14: Attractive Deposit Mix
14 Attractive Deposit Mix Non-Interest Bearing 45% Now/Savings 20% Money Market 26% TCDs 9% As of March 31, 2024 Total Deposits = $2.03 Billion
Slide 15: Average Loan Totals & Yield
15 Average Loan Totals & Yield CAGR = 6.35% 928,560 1,053,450 1,067,316 1,283,068 1,263,226 1,283,068 5.54 4.94 5.07 4.93 5.53 5.74 4.40 4.60 4.80 5.00 5.20 5.40 5.60 5.80 6.00 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2019 2020 2021 2022 2023 2024 YTD Pe rc en t Th ou sa nd s
Slide 16: Well Diversified Loan Portfolio
16 Well Diversified Loan Portfolio Commercial & Industrial, 7% Agriculture Production & Land, 11% Owner Occupied Real Estate, 16% Construction & other land loans, 2% Non-Owner Occupied Commerical Real Estate, 44% Multi-family residential, 5% 1-4 family, 10% Consumer, 5% As of March 31, 2024 Excludes
Slide 17: Non-Performing Assets
17 Non-Performing Assets 1,693 3,278 946 0 0 0 0.97 1.17 0.92 0.86 1.14 1.14 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2019 2020 2021 2022 2023 2024 YTD Pe rc en t Th ou sa nd s Non Performing Assets ALLL/Loans
Slide 18: Special Mention Loans
18 Special Mention Loans 28,183 36,406 40,845 31,024 9,000 5,595 2.99 3.30 3.93 2.47 0.70 0.43 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2019 2020 2021 2022 2023 2024 YTD Pe rc en t Th ou sa nd s Special Mention Loans SM Loans/Gros
Slide 19: Substandard Loans
19 Substandard Loans 33,838 36,136 8,540 27,783 20,301 18,968 3.59 3.28 0.82 2.21 1.57 1.47 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2019 2020 2021 2022 2023 2024 YTD Pe rc en t Th ou sa nd s Substandard Loans Sub Loans/Gross Loans
Slide 20: Investment Portfolio
20 Investment Portfolio 470,746 710,092 1,109,208 648,825 597,196 573,534 305,107 303,493 303,406 3.11% 2.61% 2.31% 2.51% 3.00% 2.94% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2019 2020 2021 2022 2023 2024 YTD Th ou sa nd s AFS Securities H
Slide 21: Bancshares
Bancshares
Community West Bancshares — DA Davidson Financial Institutions Conference 2024 on 6ix