California Bancorp · NASDAQ:BCAL
California Bancorp — Q1 2020 Earnings Presentation
18 slides from California Bancorp's earnings presentation, May 6, 2020
Slide 1: Investor Presentation March 31, 2020
Investor Presentation March 31, 2020 Steven E. Shelton President CEO Thomas A. Sa SEVP, CFO COO Michele Wirfel, SEVP CBO
Slide 2: Forward-Looking Statements
Forward-Looking Statements During the course of the presentation and any transcript that may result, written or otherwise, California BanCorp (the “Company” ) may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current
Slide 3: Overview of California Bancorp
Overview of California Bancorp Company Overview Franchise Map • CALB HQ and LPO • Acquired Branch(2) • CBoC HQ Branch • LPOs WalnutCreek (1) Based on CALB’s stock price of $11.75 as of 03/31/2020. (2) Acquisition of Pan Pacific Bank which closed on 12/31/2015. • Established in 2007 as a relationship
Slide 4: Investment Highlights
Investment Highlights • Branch light, commercial focused business bank with strong middle market relationships throughout Northern California • Experienced management team and seasoned C&I relationship team with strong ties to the local markets • Proven organic and acquisitive growth story • Quality
Slide 5: Experienced Management Team
Experienced Management Team Steven E. Shelton, President & CEO • Previously served as an Executive Vice President of the Bank primarily responsible for Years at CALB: 12 managing relationship officers and production since the Bank’s founding in 2007 Years in Industry: 35 • Served for thirteen years
Slide 6: Our History
Our History Successful Expansion Throughout Northern California $16 million common stock offering at $9.90 per share to fund growth in June 2014 $4 million private placement offering at $12.86 per share to payoff SBLF in May 2016 Completed acquisition of Pan Pacific Bank ($131 million in assets) in
Slide 7: Our Business Model
Our Business Model • Middle market commercial banking • Target businesses with $20 million -$200 million in annual revenue • Target clients with minimum lending relationships of $2 million or $1 million in deposits • Portfolio managed to ~40% C&I loans and ~40% non-interest bearing deposits • Invest
Slide 8: We Serve Clients Throughout Northern California
We Serve Clients Throughout Northern California Franchise Map WalnutCreek Our Middle Market Relationships Our “Typical Client” • ~$50 million in annual revenue • $5 million revolver with $2 million outstanding • CALB HQ and LPO • Acquired Branch(1) • CBoC HQ Branch • LPOs • $1 million equipment fina
Slide 9: Strong Core Deposit Base
Strong Core Deposit Base Historical Deposit Composition Deposit Composition Money market & Demand deposits39% Time deposits14% savings deposits 45% Interest bearing demand deposits 2% Deposit Portfolio Highlights–03/31/20 • Deposits grew $158 million in Q1-2020 from Q1-2019 • Core deposit base drive
Slide 10: Overview of Loan Composition
Overview of Loan Composition Loan Portfolio Composition Historical Loan Composition(1) CRE -Non-Owner Occupied 27% Other 3% 3% Construction CRE -Owner Occupied 24% Commercial 43% Operating LOC Usage $600 $500 $400 $300 $200 $100 $ $444 $477 $507 $487 $475 $153 $160 $173 $150 $179 34% 34% 34% 31% 38%
Slide 11: Commercial and CRE Loan Portfolio
Commercial and CRE Loan Portfolio • Well diversified loan portfolio to mitigate risk Commercial Loan Portfolio(1) CRE Loan Portfolio(1) Multi-Family Land 2%2% Services Residential 25% 3% Real Estate & Leasing 2% Mixed-Use 4% Wholesale 2% Hotel/Motel & Industrial 15% Other 5% Office Gas Station 12% 3
Slide 12: Paycheck Protection Program Loans
Paycheck Protection Program Loans 4 -17-2020 Segmentation by Loan Count Segmentation by Aggregate Balance 3% $14,772,339 $2,245,515 3% $23,519,607 3% 4% $9,490,244 $105,845,492 5% $18,446,575 8% $23,232,856 58% 16% $125,262,280 12PPP Loan Details # of Loans % % of Total Portfolio Principal Balance %
Slide 13: Loan Payment Deferments
Loan Payment Deferments 4-17-2020 Segmentation by Loan Count 20 3 13328 70 Deferred Loan Detail # of Loans % % of Total Portfolio Principal Balance% %ofTotalPortfolioTotals421100%32%342,183,031$100%35% DentalTotal32878%25%193,154,791$56%20% -PracticeAcquisition26663%20%153,197,833$45%16% -CRE6215%5%
Slide 14: Historical Profitability Trends
Historical Profitability Trends ROAA (%) ROAA ROATCE 15.00% 1.20% $0.47 $0.69(1) $0.00 $2.00 0.94% 12.00% $1.60 0.90% 0.74% 0.00% $0.80 $0.86 $1.19 $0.85 2015 2016 2017 2018 2019 2020 LTM 0.00% ROAA (%) Earnings per Share ($) 2015 2016 2017 2018 2019 2020 LTM 9.37% 0.69% 0.66% $1.20 9.00% 7.93% 7.71
Slide 15: Asset Quality Trends
Asset Quality Trends Net (Charge Offs) / Recoveries ($000s) Reserves / Loans 2.00% $2500 $2052 $2000 $1500 1.60% $618 $1000 $500 $0 ($500) ($35) 1.27% 1.28% 1.20% 1.19% 1.17% 1.13% ($1000) 0.80% ($1500) ($2000) 0.40% ($2500) 1.20% ($65) ($90) ($247) 2015 2016 2017 2018 2019 Q1-2020 2015 2016 2017 20
Slide 16: Capital Ratios - Bank Only
Capital Ratios-Bank Only TCE / TA Leverage Ratio 16.00% 16.00% 13.25% 11.37% 10.44% 11.31% 11.36% 12.00% 12.00% 9.92% 4.00% 8.00% 8.78% 10.65% 10.24% 9.16% 9.08% 8.96% 8.00% 4.00% 0.00% 0.00% 2015 2016 2017 2018 2019 Q1-2020 2015 2016 2017 2018 2019 Q1-2020 Total Capital Ratio Tier 1 Ratio 16.00% 16
Slide 17: Summary
Summary 17 Northern California commercial business bank with a disciplined approach to credit underwriting Experienced Executive Management Team and seasoned C&I Relationship Managers Strong commercial loan portfolio with corresponding commercial relationship deposits Keen focus on relationship core
Slide 18: Please send questions to ir@bankcbc.com
Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com