West Coast Community Bancorp · NASDAQ:WCCB
West Coast Community Bancorp — Merger or Acquisition (May 2024)
12 slides from West Coast Community Bancorp's merger presentation, May 20, 2024
Slide 1: Creating California's Preeminent Community Bank on the Central Coast
CREATING CALIFORNIA’S PREEMINENT COMMUNIT Y BANK ON THE CENTRAL COAST MAY 20, 2024
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared by 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 public sources. Certain information contained herein may be derived from
Slide 3: Transaction Highlights
Transaction Highlights West Coast Community Bancorp (“SCZC”), the bank holding company for Santa Cruz County Bank, will acquire 1st Capital Bancorp Transaction (“FISB”), the bank holding company for 1st Capital Bank, a community bank headquartered in Salinas, CA Overview ‒ FISB is a community bank
Slide 4: West Coast Community Bancorp Company Overview
West Coast Community Bancorp (OTCQX: SCZC) Company Overview • Founded in 2004 in Santa Cruz, CA Rankings and Recognition • A leading SBA lender, operates eight branches across three counties with 140 full-time employees as of Q1 2024 • Ranked #1 community bank in deposit market share in Santa Cruz C
Slide 5: 1st Capital Bancorp Company Overview
1 st C a p i t a l B a n c o r p ( O T C Q X : F I S B ) Company Overview • Founded in 2007 in Salinas, CA • Ranked #2 community bank in deposit market share in Monterey • Operates a five full-service branch footprint along the Central County at 6.1% Coast with 96 full-time employees as of Q1 2024 •
Slide 6: Pro Forma Company Snapshot
Pro Forma Company Snapshot Top 10 CA Banks Under $5bn in Assets* Central Coast – Silicon Valley Footprint Asset Assets (1) Rank Company ($mm) 1. River City Bank $4,974 2. 1867 Western Financial Corporation $4,480 3. RBB Bancorp $3,878 4. American Business Bank $3,876 5. Bank of Marin Bancorp $3,767
Slide 7: Comparison to Western Region Banks
Comparison to Western Region Banks Pro Forma(1) Western Region Banks $1B - $5B Total Assets (2) 2025 Estimated Profitability (3) Median Top Quartile ROAA 1.89% 0.84% 1.12% ROATCE 20.5% 8.8% 12.3% Capital & Liquidity Loans HFI / Deposits 85.5% 95.2% 79.5% CET1 11.5% 12.8% 15.3% Leverage Ratio 9.3% 10
Slide 8: Transaction Structure and Overview
Transaction Structure and Over view • 0.3600 shares of SCZC stock for each FISB share Consideration Mix • 100% stock consideration to FISB common shareholders • FISB unvested restricted stock units to receive stock consideration Implied Transaction Value(1) • $63 million transaction value, or $10.78
Slide 9: Key Transaction Assumptions
Key Transaction Assumptions • Total gross credit mark of $12.7 million, or 1.78x FISB’s existing reserves Loan Credit Mark Estimate ‒ $6.0 million, or 47%, allocated to non-PCD loans; accreted straight-line over 4 years ‒ Establishment of reserves equal to 1.0x the non-PCD mark • Loan Portfolio: wri
Slide 10: Pro Forma Financial Impact
Pro Forma Financial Impact Transaction Pricing(1) Financial Impact(2) 0.97x Price / Tangible Book Value Per Share ~16% 2025e Earnings per Share Accretion ~20% 2026e Earnings per Share Accretion 10.5x Price / 2025e Earnings Per Share (12%) Tangible Book Value Dilution (0.3%) Core Deposit Premium 2.5
Slide 11: Pro Forma Loan Mix
Pro Forma Loan Mix Santa Cruz County Bank 1st Capital Bank Pro Forma(1) Total Loans: $1.4B Total Loans: $0.6B Total Loans: $2.0B Consumer & Consumer & Consumer & C&D Other C&D Other Other 3.1% 5.2% 10.6% 5.9% Multifamily 7.4% 9.4% C&I C&D 7.4% 8.2% Multifamily C&I C&I 9.9% Multifamily Res. RE 11.0%
Slide 12: Pro Forma Deposit Composition
Pro Forma Deposit Composition Santa Cruz County Bank 1st Capital Bank Pro Forma(1) Total Deposits: $1.5B Total Deposits: $0.9B Total Deposits: $2.3B Jumbo Time Jumbo Time 1.4% Jumbo Time 4.3% 3.2% Retail Time Retail Time 7.6% 9.0% Non-interest Non-interest Non-interest Bearing Retail Time Bearing Be
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