Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — D.A. Davidson 18th Annual Financial Institutions Conference 2016
25 slides from Community West Bancshares's conference presentation, May 12, 2016
Slide 1: Investor Presentation - D.A. Davidson 18th Annual Financial Institutions Conference
Investor Presentation D.A. Davidson 18th Annual Financial Institutions Conference May 10-11, 2016 Jim Ford President & CEO Dave Kinross EVP Chief Financial Officer
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. All statements contained herein that are not historical facts, such as statements regarding the Company’s cur
Slide 3: Overview
Overview 3 NASDAQ Symbol CVCY Market Capitalization $143.3 Million Institutional Ownership 35% Insider Ownership 22% Total Assets $1.3 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento 20 Branches in 7 Contiguous Counties As of
Slide 4: Experienced Management Team
Experienced Management Team 4 Executive Position Years at CVCY Years of Experience James M. Ford President & CEO 2 36 David A. Kinross EVP, Chief Financial Officer 10 26 Gary D. Quisenberry EVP Commercial & Business Banking 16 31 Lydia E. Shaw EVP Community Banking 9 31 Patrick J. Carman EVP, Chief
Slide 5: Financial Highlights
Financial Highlights 5 3/31/2016 2015 Total Average Assets $1.26 Billion $1.22 Billion Net Income $3.40 Million $10.96 Million Diluted EPS $0.31 $1.00 Net Interest Margin 3.97% 4.01% ROA 1.08% 0.90% ROE 9.47% 8.12% Cash Dividends per share $0.06 $0.18 Total Cost of Funds 0.08% 0.09% NPAs to Total As
Slide 6: Investment Considerations
Investment Considerations 6 • Premier community bank serving the San Joaquin Valley for 36 years • Experienced management team • Stable and experienced Board of Directors • Stable low-cost core customer funding base • Attractive investment opportunity – Price/TBV = 119% * • Successful acquisition an
Slide 7: Attractive Investment Opportunity
Attractive Investment Opportunity 7 As of April 30, 2016 Source: NASDAQ Closing Price Data 0 2 4 6 8 10 12 14 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 P ri ce CVCY Stock Price
Slide 8: Growing Franchise
Growing Franchise 8 Note: Acquisition of Visalia Community Bank occurred on July 1, 2013 800,178 853,078 986,924 1,157,483 1,222,526 1,263,562 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2011 2012 2013 2014 2015 2016 Q1 Th o u sa n d s Average Total Assets
Slide 9: Net Income and NIM
Net Income and NIM 9 6,477 7,520 8,250 5,294 10,964 3,403 4.63 4.21 4.09 4.11 4.01 3.97 3.60 3.80 4.00 4.20 4.40 4.60 4.80 0 2,000 4,000 6,000 8,000 10,000 12,000 2011 2012 2013 2014 2015 2016 Q1 Pe rc e n t Th o u sa n d s Net Income Net Interest Margin
Slide 10: Earnings
Earnings 10 0.81 0.88 0.84 0.46 0.90 1.08 6.26 6.56 6.89 4.06 8.12 9.47 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 - 0.20 0.40 0.60 0.80 1.00 1.20 2011 2012 2013 2014 2015 2016 Q1 R O A E Pe rc e n t R O A A Pe rc e n t ROAA / ROAE ROAA ROAE
Slide 11: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds 11 677,789 719,601 848,493 1,006,560 1,065,798 1,098,595 0.39 0.23 0.15 0.11 0.09 0.08 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2011 2012 2013 2014 2015 2016 Q1 Pe rc e n t Th o u sa n d s A
Slide 12: Attractive Deposit Mix
Attractive Deposit Mix 12 Non-Interest Bearing 37% Now/Savings 29% Money Market 22% TCDs 12% As of March 31, 2016 Total Deposits = $1.10 Billion
Slide 13: Loan Totals and Yield
Loan Totals and Yield 13 412,969 394,575 445,300 533,531 578,899 592,159 6.32 6.06 5.96 5.53 5.27 5.25 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2011 2012 2013 2014 2015 2016 Q1 Pe rc e n t Th o u sa n d s Average Total Loans Total Loans Loan Y
Slide 14: Loan Originations
Loan Originations 14 33 50 17 21 29 29 21 27 24 24 18 43 25 35 42 54 48 50 31 71 47 57 47 59 62 115 68 54 78 112 109 71 67 122 140 69 58 82 84 88 101 88 142 70 93 119 158 103 123 109 - 50 100 150 200 250 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4
Slide 15: Balanced Loan Portfolio
Balanced Loan Portfolio 15 Commercial & Industrial, 16% Agriculture Production & Land, 18% Owner Occupied Real Estate, 28% R/E Construction & Land, 7% Commercial Real Estate, 19% Other Real Estate, 2% Equity Loans and Lines, 7% Consumer & Installment, 3% As of March 31, 2016 Excludes Deferred Loan F
Slide 16: Agricultural Loan Commitments
Agricultural Loan Commitments 16 Almonds 29% Walnuts 15% Wine Grapes 10% Other 11% Table Grapes 9% Tomatoes 6% Cherries 4% Raisins 4% Tree Fruit 4% Cotton 3% Pistachios 1% Olives 1% Alfalfa 1% Citrus 1% Wheat 1% As of March 31, 2016
Slide 17: Asset Quality
Asset Quality 17 14,434 9,695 7,776 14,052 2,413 3,679 2.67 2.56 1.80 1.45 1.61 1.66 - 0.50 1.00 1.50 2.00 2.50 3.00 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2011 2012 2013 2014 2015 2016 Q1 Pe rc e n t Th o u sa n d s Non Performing Assets ALLL/Loans
Slide 18: Conservative Investment Portfolio
Conservative Investment Portfolio 18 US Government Agencies 10% Municipal Securities 43% Agency CMO, MBS & Other Securities 45% Equity Mutual Funds 2% As of March 31, 2016 Total = $502 Million Yield = 3.05% Duration 4.09 Years
Slide 19: Sierra Vista Pending Acquisition
Total Assets ($mm) 156.1 Net Interest Margin 4.30% Gross Loans ($mm) 119.5 Efficiency Ratio 84.2% Total Deposits ($mm) 134.7 ROAA 0.31% Loans / Deposits 88.7% ROAE 2.65% TCE / TA 11.56% NPAs / Assets 0.71% TRBC Ratio 13.55% LLR / Gross Loans 1.41% Sierra Vista Pending Acquisition 19 (1) GAAP when av
Slide 20: Transaction Overview
Transaction Overview 20 (1) Includes cash paid by SVBA to purchase any outstanding and unexercised SVBA in-the-money stock options and warrants, as further provided in the merger agreement. (2) Based on CVCY’s closing price of $12.07 on 4/28/2016 and also includes cash paid by SVBA to purchase any o
Slide 21: Financial Impact and Assumptions
Financial Impact and Assumptions 21 (1) Includes purchase accounting adjustments and transaction expenses. Price / TBV (Q1 ‘16): 2017e EPS Impact: TBV Earnback: Internal Rate of Return: 1.33x ~ 6.8% ~ 4.5 years > 20% Pro Forma Capital Ratios(1): Gross Loan Mark: Cost Savings Earnings: Tangible Commo
Slide 22: Pro Forma Loan Composition
Pro Forma Loan Composition 22 Note I: SVBA loan composition per bank call report as of 3/31/2016. Note II: Residential Real Estate includes home equity loans and lines of credit. Note III: Pro Forma loan balance does not include anticipated purchase accounting adjustments. Source: SNL Financial. $49
Slide 23: Pro Forma Deposit Composition
Pro Forma Deposit Composition 23 Note I: SVBA deposit composition per bank call report as of 3/31/2016. Note II: Pro Forma deposit balance does not include anticipated purchase accounting adjustments. Source: SNL Financial. $55 $88 $79 $70 $66 $84 $104 $133 $135 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2
Slide 24: On the Horizon
On the Horizon 24 Organic Loan Growth Assimilate Sierra Vista Acquisition Improve Efficiencies Fee Income Improvements Relationship Pricing & Customer Profitability Closely Monitor Water Resources
Slide 25: Investing in Relationships
25 Investing in Relationships