California Bancorp · NASDAQ:BCAL
California Bancorp — Q2 2020 Earnings Presentation
18 slides from California Bancorp's earnings presentation, Jul 28, 2020
Slide 1: Investor Presentation Q2 2020
Investor Presentation Q2 2020 Steven E. Shelton President & CEO Thomas A. Sa SEVP, CFO & COO Scott Myers, SEVP, CLO Exhibit 99.2
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 3 Established in 2007 as a relationship focused commercial business bank serving Northern California with assets of $1.9 billion and market cap of ~$121 million(1) Majority of executive management team joined the bank at inception Robust commercial core deposits 21 Pri
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 core de
Slide 5: Experienced Management Team
Experienced Management Team Served as Executive Vice President and CCO from 2007 through 2017 Previously served in various executive management positions including Executive Vice President and Senior Lending Officer for Wells Fargo’s corporate bank and President & CCO of CivicBank of Commerce John L
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 Historical Loan & Deposit Growth 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
Slide 8: We Serve Clients Throughout Northern California
We Serve Clients Throughout Northern California 8 ~$50 million in annual revenue $5 million revolver with $2 million outstanding $1 million equipment financing $3 million commercial real estate loan $1 million demand deposit utilizing cash management services $3 million money market accounts to hold
Slide 9: Strong Core Deposit Base
Strong Core Deposit Base 9 Deposits grew $503 million in Q2-2020 from Q2-2019 Core deposit base driven by commercial clients +95% of commercial relationships hold deposits at the bank 82% Core deposit of total deposit Utilize remote deposit capture and commercial cash management to generate and reta
Slide 10: Overview of Loan Composition
Overview of Loan Composition 10 Data as of 12/31 for each respective year and 06/30 for Q2-2020 Impact from Pan Pacific Acquisition Loan Portfolio Composition Operating LOC Usage Historical Loan Composition(1) Gross Loan Funding vs. Net Loan Funding 2015 – Q2’20 CAGR C&I: 11.3% CRE: 11.0% Total Loan
Slide 11: Commercial and CRE Loan Portfolio
Commercial and CRE Loan Portfolio 11 Well diversified loan portfolio to mitigate risk Commercial Loan Portfolio(1) CRE Loan Portfolio(1) Data as a percent of total loans, $1.3 Million Data as of 06/30/2020
Slide 12: Paycheck Protection Program Loans
Paycheck Protection Program Loans 6-30-2020 12 As of Q2 ‘19 CALB had $621 thousand of loan discount on the acquired loans from Pan Pacific Bank Segmentation by Loan Count Segmentation by Aggregate Balance
Slide 13: Loan Payment Deferments
Loan Payment Deferments 6-30-2020 13 As of Q2 ‘19 CALB had $621 thousand of loan discount on the acquired loans from Pan Pacific Bank Segmentation by Loan Count June payments are the last month to be deferred for majority of loan. 383 loans represent approximately 29% of the core portfolio. $324MM r
Slide 14: Historical Profitability Trends
Historical Profitability Trends 14 (1) ROAA and ROATCE is for the last twelve months ended on 06/30/2020 Data as of 12/31 for each respective year ROAA ROATCE Efficiency Ratio Net Interest Margin EPS ($) ROAA (%)
Slide 15: Asset Quality Trends
Asset Quality Trends 15 As of Q2 ‘19 CALB had $621 thousand of loan discount on the acquired loans from Pan Pacific Bank As of Q2 ‘20 CALB had $416 thousand of loan discount on the acquired loans from Pan Pacific Bank Data as of 12/31 for each respective year and 06/30 for Q2-YTD Net (Charge Offs) /
Slide 16: Capital Ratios – Bank Only
Capital Ratios – Bank Only 16 Data as of 12/31 for each respective year and 06/30 for Q2-2020 TCE / TA Leverage Ratio Total Capital Ratio Tier 1 Ratio
Slide 17: Summary
Summary > Northern California commercial business bank with a disciplined approach to credit underwriting > Experienced Executive Management Team and seasoned C&l Relationship Managers > Strong commercial loan portfolio with corresponding commercial relationship deposits > Keen focus on relationship
Slide 18: Please send questions to ir@bankcbc.com
Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com