West Coast Community Bancorp · NASDAQ:WCCB
West Coast Community Bancorp — Investor Presentation (July 2024)
32 slides from West Coast Community Bancorp's investor presentation, July 2024
Slide 1: Investor Presentation July 2024
I N V E S T O R P R E S E N TAT I O N JULY 2024
Slide 2: Disclaimer
DISCLAIMER This investor presentation has been prepared by Santa Cruz County Bank, (the “Bank”), the wholly owned subsidiary of West Coast Community Bancorp (traded as "SCZC" on the OTCQX, the "Company"), solely for informational purposes based on its own information, as well as information from pub
Slide 3: Santa Cruz County Bank
S A N TA C R U Z C O U N T Y B A N K Community bank headquartered in Santa Cruz, CA Opened in 2004 Approximately 151 employees as of June 30, 2024 Krista Snelling joined as CEO on March 1, 2021 $1.7 billion in assets 8 branches Salinas branch (Monterey County) opened January 2023 West Coast Communit
Slide 4: Leadership Team
LEADERSHIP TEAM en ae et Krista Snelling Cecilia Situ Jon P. Sisk Angelo DeBernardo, Jr. Mary Anne Carson President & Chief Executive Officer EVP Chief Financial Officer EVP Chief Banking Officer EVP Chief Lending Officer EVP Chief Marketing Officer Shawn Lipman Jaime Manriquez Maxwell Sinclair Sham
Slide 5: Q2 2024 Results
Q2 2024 RESULTS Balance Sheet Strength Consistent Profitability Strong Earnings Metrics Healthy Credit Quality $1.712 Billion $11.6 Million 1.93% 0.00% Total Assets Q2 PTPP Earnings Q2 ROAA NPAs/Assets $1.387 Billion $8.2 Million 15.37% 0.00% Total Loans Q2 Net Income Q2 ROATCE NPLs/Loans $1.432 Bil
Slide 6: Attractive Markets
AT T R A C T I V E M A R K E T S County # of Branches Deposit Market Share* Population** Median Household Income** Santa Cruz County 5 15.5% 264K $104K Santa Clara County 1 0.06% 1.9M $154K Monterey County 2 0.78% 433K $91K *Per FDIC data as of June 30, 2023. ** U.S. Census Bureau data 2018-2022 6
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 8: Solid Liquidity Position
SOLID LIQUIDITY POSITION ($ in 000s) As of June 30, 2024 Strong on-balance-sheet As of liquidity position 6/30/2024 3/31/2024 coupled with available Cash and due from banks $ 36,127 $ 39,148 external contingency Unencumbered AFS securities 163,355 160,934 Total on-balance-sheet liquidity 199,482 200
Slide 9: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION US Gov't sponsored agencies 3% As of June 30, 2024 Chart includes available-for-sale (AFS) securities at market value MBS/CMO 16% SBA backed securities 4% and held-to-maturity securities at amortized cost Modified duration of 2.4 years. Municipal bonds 5% 97% of the
Slide 10: Attractive Deposit Mix
AT T R A C T I V E D E P O S I T M I X Money Market CDs 30% 10% As of June 30, 2024 Savings Top 10 deposit relationships 6% Brokered (excluding government agency deposits deposits that are fully collateralized) represent 2% approximately 12% of total deposits. Interest Bearing Demand Growth opportun
Slide 11: Deposit Characteristics
DEPOSIT CHARACTERISTICS ($ in 000s) $1,800,000 $1,600,000 Insured deposits $1,400,000 includes fully $1,200,000 $687,909 $664,459 collateralized $627,202 (45%) (44%) (43%) $622,321 (43%) balances. $1,000,000 Migration of $800,000 deposits into IntraFi reciprocal $600,000 deposit $400,000 $840,940 (5
Slide 12: Strong Deposit Franchise
STRONG DEPOSIT FRANCHISE Granular Deposit Account Composition ($ in 000s) As of June 30, 2024 37% Total Personal Deposits $ 524,824 # of Accounts 11,331 61% Average Balance Per Account $ 46 Total Business Deposits $ 879,961 # of Accounts 5,933 2% Average Balance Per Account $ 148 Personal Business B
Slide 13: Exceptional Credit Culture
EXCEPTIONAL CREDIT CULTURE Nonperforming Loans As of June 30, 2024 ($000) 2019 2020 2021 2022 2023 2024Q1 2024Q2 No nonaccrual or 90+ days past Nonaccrual Loans due loans at quarter end. 1-4 Family $0 $0 $0 $808 $0 $0 $0 A $25 thousand consumer loan CRE & Multifamily 0 0 0 0 6,526 0 0 was brought cu
Slide 14: Loans by Type
LOANS BY TYPE Agriculture 3.5% 1-4 SFR 4.4% CRE, Non-Owner Outstanding Loans as of Occupied June 30, 2024 40.5% Construction 11.0% Q2 2024 loan yield of Consumer, 7.13%, up 11 bps from Municipal, & 7.02% in Q1 2024. Non-Profit 1.4% 8 bps of the increase is SBA, B&I, & attributable to income FSA rece
Slide 15: Real Estate Loan Detail
R E A L E S TAT E L O A N D E TA I L 1-4 SFR Farmland Bay Area* 2.2% 2.5% 4.2% Retail 14.4% Monterey Hotel County 20.1% 19.1% Other CRE, OO 14.6% Santa Cruz County 47.3% Other CA Multifamily 11.3% 15.5% Other CRE, NOO 19.6% Office Santa Clara 11.1% County 11.4% Out of State 6.7% Total Weighted Avera
Slide 16: Fixed vs. Variable Rate Loans and Repricing
F I X E D V S . VA R I A B L E R AT E L O A N S AND REPRICING Inte rest Rate Struc ture. as of 6/30/2024 • Floating/lnstant 1 • At Floor2 • Fixed Rate 3 • Adjustable Rate Adjustab le Rate Rep ricing Frequency • CRE • Other Loans • SBA RE ; $259M (18.7%) $444M (32.1%) ~ < 1 year $48M $215M . - (15.5%
Slide 17: Fixed vs. Variable Rate Loans and Repricing
F I X E D V S . VA R I A B L E R AT E L O A N S AND REPRICING 17
Slide 18: Upcoming CRE Interest Rate Repricing
U P C O M I N G C R E I N T E R E S T R AT E REPRICING $27M Outstanding NOO CRE Loans as of June 30, 2024 18
Slide 19: Non-Owner-Occupied CRE Loans
NON-OWNER-OCCUPIED CRE LOANS *The loan with a stressed LTV > 90% is a newly opened hotel in the stabilization period. Upon stabilization, the stressed LTV would be 83%, using the 2023 appraised value. The borrower is maintaining a year's worth of payments in deposits until stabilization is met and t
Slide 20: Consistent Balance Sheet Growth
CONSISTENT BALANCE SHEET GROWTH Total Assets ($MM) Gross Loans Excl. PPP Incl. Deferred Fees ($MM) $1,701 $1,744 $1,794 $1,713 $1,712 $1,411 $1,378 $1,387 $1,265 $1,423 $1,109 $1,071 $917 $758 $322 $227 2019Y 2020Y 2021Y 2022Y 2023Y 2024 Q1 2024 Q2 2019Y 2020Y 2021Y 2022Y 2023Y 2024 Q1 2024 Q2 Total
Slide 21: Strong Profitability
S T R O N G P R O F I TA B I L I T Y Net Income ($MM) Diluted Earnings per Share (EPS) $8.9 $9.1 $8.8 $9.3 $8.3 $8.2 $1.00 2.08% 1.94% 2.05% 1.99% 2.14% 1.93% $1.05 $0.98 $1.08 $1.05 $1.10 $0.97 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Net Income ROAA Dilut
Slide 22: Disciplined Pricing Drives NIM and Loan Yields
DISCIPLINED PRICING DRIVES NIM AND LOAN YIELDS 5-Year Yield on Loans and Net Interest Margin* Trend Compared to Peers 8.00% 7.13% 7.00% 5.82% 6.00% 5.50% 5.00% 4.98% 4.00% 3.49% 3.00% 2.00% 1.00% 0.00% 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 202
Slide 23: Disciplined Pricing Drives Low Cost of Funds
DISCIPLINED PRICING DRIVES LOW COST OF FUNDS 5-Year Cost of Funds Trend Compared to Peers 2.00% 1.88% 1.80% 1.60% 1.54% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 24: Robust Capital Position
R O B U S T C A P I TA L P O S I T I O N TCE Ratio Tier 1 Ratio 13.00% 15.01% 14.62% 14.97% 12.50% 14.34% 13.72% 11.69% 11.47% 13.62% 13.69% 10.03% 9.90% 9.44% 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 2024Q2 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 2024Q2 Total Capital Ratio Leverage Ratio 16.26% 15.87% 16.
Slide 25: Tangible Book Value per Share Continues to Trend Up
TA N G I B L E B O O K VA L U E P E R S H A R E CONTINUES TO TREND UP $25.95 $25.05 $24.10 $20.04 $18.50 $16.50 $14.38 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 2024Q2 Tangible Book Value per Share = (Shareholder’s Equity - Goodwill & Intangibles)/ Outstanding Shares Adjusted for stock dividends and spli
Slide 26: Shareholder Focused
SHAREHOLDER FOCUSED Superior Price Performance Cash Dividend 80% 60% $0.170 $0.170 $0.170 $0.160 $0.150 $0.150 $0.150 Relative Price Performance (%) 40% $0.125 20% 0% Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 -20% -40% 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024
Slide 27: Community Reinvestment
COMMUNITY REINVESTMENT 2,700 + Hours of Community Service in 2023 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 ch
Slide 28: Rankings and Recognition
RANKINGS AND RECOGNITION National California AMERICAN BANKER MAGAZINE BANK PERFORMANCE REPORT(formerly FMC) Top 100 Best Performing Community Banks in the United Ranked 19th in overall performance for Q4 2023. States, based upon 3-year average return on equity for banks under $2 billion in asset siz
Slide 29: Appendix
WEST COAST
Slide 30: Highlights
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 on local c
Slide 31: Non-GAAP Reconciliation
N O N - G A A P R E C O N C I L I AT I O N Tangible 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 balanc
Slide 32: Non-GAAP Reconciliation
N O N - G A A P R E C O N C I L I AT I O N 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 th
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