Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Keefe, Bruyette & Woods Community Bank Investor Conference 2023
19 slides from Community West Bancshares's conference presentation, Aug 4, 2023
Slide 1: Investor Presentation - KBW Community Bank Investor Conference
Investor Presentation Keefe, Bruyette & Woods Community Bank Investor Conference James J. Kim Shannon R. Avrett Teresa Gilio August 7-9, 2023 President & CEO Executive Vice President, Chief Financial Officer Executive Vice President, Chief Administrative Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Certain matters discussed in this report 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 current bu
Slide 3: Mission and Values
Mission Inspire and empower our team to enrich and invest in every relationship by exceeding expectations. Values Teamwork Accountability Excellence Caring Integrity Inclusive
Slide 4: Experienced Executive Team
4 Executive Position Years at CVCY Years of Experience James J. Kim President & CEO 5 22 Shannon R. Avrett EVP, Chief Financial Officer < 1 18 Patrick A. Luis EVP, Chief Credit Officer 2 37 Blaine C. Lauhon EVP, Chief Banking Officer 5 37 A. Kenneth Ramos EVP, Market Executive – South 3 35 Jeff M. M
Slide 5: Overview
5 NASDAQ Symbol CVCY Market Capitalization $182 Million Institutional Ownership 50% Insider Ownership 16% Total Assets $2.5 Billion Headquarters Fresno, CA # of Banking Centers 19 Year Established 1980 Strategic Footprint Sacramento to Bakersfield As of June 30, 2023 Overview
Slide 6: Financial Highlights
6 2023 Q2 YTD 2022 2021 Total Assets $2.49 Billion $2.42 Billion $2.45 Billion Net Income $13.25 Million $26.65 Million $28.40 Million Diluted EPS $1.13 $2.27 $2.32 Net Interest Margin 3.65% 3.52% 3.54% ROAA 1.08% 1.09% 1.25% ROAE 14.44% 14.25% 11.50% Cash Dividends per share $0.24 $0.48 $0.47 Total
Slide 7: Attractive Investment Opportunity
CAGR = 6.44% 7 As of July 31, 2023 Source: NASDAQ Monthly Closing Price Data Attractive Investment Opportunity Dividend Payout Ratio - 21.24% Dividend Yield - 2.81% 0 5 10 15 20 25 30 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Pr ic e CVCY Stock Price
Slide 8: Growing Franchise
8 Growing Franchise CAGR = 10.39% 1,577,410 1,574,089 1,832,987 2,267,615 2,439,394 2,460,742 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2018 2019 2020 2021 2022 2023 Q2 YTD Th ou sa nd s Average Total Assets
Slide 9: Strong Net Income & NIM
9 Strong Net Income & NIM 21,289 21,443 20,347 28,401 26,645 13,252 4.44 4.51 3.87 3.54 3.52 3.65 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0 5,000 10,000 15,000 20,000 25,000 30,000 2018 2019 2020 2021 2022 2023 Q2 YTD Pe rc en t Th ou sa nd s Net Income Net Interest Margin
Slide 10: Solid Earnings
10 Solid Earnings 1.35 1.36 1.11 1.25 1.09 1.08 10.07 9.39 8.85 11.50 14.25 14.44 - 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 2018 2019 2020 2021 2022 2023 Q2 YTD RO AE P er ce nt RO AA P er ce nt ROAA / ROAE ROAA ROAE
Slide 11: Stable Deposit Base & Low Cost of Funds
11 Stable Deposit Base & Low Cost of Funds CAGR = 11.16% 1,333,754 1,295,780 1,568,194 1,974,576 2,156,092 2,147,287 0.09 0.15 0.09 0.05 0.06 0.55 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2019 2020 2021 2022 2023 Q2 YTD Pe rc en t Th ou sa nd s Averag
Slide 12: Attractive Deposit Mix
12 Attractive Deposit Mix Total Deposits = $2.2 Billion Non-Interest Bearing 44% Now/Savings 21% Money Market 26% TCDs 9% As of June 30, 2023
Slide 13: Loan Totals & Yield
13 Loan Totals & Yield CAGR = 7.52% 908,419 928,560 1,053,450 1,067,316 1,133,641 1,259,075 5.50 5.54 4.94 5.07 4.93 5.47 4.60 4.70 4.80 4.90 5.00 5.10 5.20 5.30 5.40 5.50 5.60 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2018 2019 2020 2021 2022 2023 Q2 YTD Pe rc en t Th ou sa nd
Slide 14: Well Diversified Loan Portfolio
14 Well Diversified Loan Portfolio Commercial & Industrial, 8% Agriculture Production & Land, 12% Owner Occupied Real Estate, 16% Real Estate Construction & Land, 6% Commercial Real Estate, 40% Multi-Family Residential, 4% 1-4 Family, 9% Consumer, 4% As of June 30, 2023 Excludes Deferred Loan Fees T
Slide 15: Non Performing Assets
15 Non Performing Assets 2,740 1,693 3,278 946 0 0 0.99 0.97 1.17 0.92 0.86 1.23 - 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 2018 2019 2020 2021 2022 2023 Q2 YTD Pe rc en t Th ou sa nd s Non Performing Assets ALLL/Loans
Slide 16: Special Mention Loans
16 Special Mention Loans 26,254 28,183 36,406 40,845 31,024 18,094 2.86 2.99 3.30 3.93 2.47 1.44 - 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 2018 2019 2020 2021 2022 2023 Q2 YTD Pe rc en t Th ou sa nd s Special Mention Loans SM Loans
Slide 17: Substandard Loans
17 Substandard Loans 28,394 33,838 36,136 8,540 27,783 25,435 3.09 3.59 3.28 0.82 2.21 2.03 - 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 2018 2019 2020 2021 2022 2023 Q2 YTD Pe rc en t Th ou sa nd s Substandard Loans Sub Loans/Gross Loans
Slide 18: Investment Portfolio
2023 YTD Yield: 2.96% AFS Effective Duration: 4.10 18 Investment Portfolio 463,905 470,746 710,092 1,109,208 648,825 619,759 305,107 304,332 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2018 2019 2020 2021 2022 2023 Q2 Th ou sa nd s AFS Securities HTM Securities
Slide 19: Investing In Relationships
Central Valle Commun Bancorp <—<_=s Investing In Relationships. www.cycb.com F a