Community West Bancshares · NASDAQ:CWBC

Community West Bancshares — Central Valley Community Bancorp — D.A. Davidson & Company 22nd Annual Financial Institutions Virtual Conference 2020

22 slides from Community West Bancshares's conference presentation, May 6, 2020

  1. Slide 1: Investor Presentation – D.A. Davidson Financial Institutions Virtual Conference

    Investor Presentation D.A. Davidson & Company 22nd Annual Financial Institutions Virtual Conference May 7, 2020 Jim Ford President & CEO Dave Kinross EVP CFO

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 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 busi

  3. Slide 3: Experienced Management Team

    Experienced Management Team Years at Years of Executive Position CVCY Experience James M. Ford President & CEO 6 40 David A. Kinross EVP, Chief Financial Officer 14 30 James J. Kim EVP, Chief Operating Officer 3 20 Patrick J. Carman EVP, Chief Credit Officer 11 48 Ken Ramos EVP, Market Executive – S

  4. Slide 4: Overview

    Overview 20 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $163 Million Institutional Ownership 48% Insider Ownership 17% Total Assets $1.62 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of Mar

  5. Slide 5: Financial Highlights

    Financial Highlights 2020 Q1 2019 2018 Total Assets $1.62 Billion $1.60 Billion $1.54 Billion Net Income $6.62 Million $21.44 Million $21.29 Million Diluted EPS $0.52 $1.59 $1.54 Net Interest Margin 4.47% 4.51% 4.44% ROAA 1.66% 1.36% 1.35% ROAE 11.62% 9.39% 10.07% Cash Dividends per share $0.11 $0.4

  6. Slide 6: COVID-19 Responses

    COVID-19 Responses • Implemented Pandemic Plan mid February 2020 to address COVID-19 and escalated activities into early March 2020 • California governor enacted “shelter-in-place” for non-essential businesses on March 19, 2020 • We have successfully split our operations center into two functions th

  7. Slide 7: COVID-19 Responses (continued)

    COVID-19 Responses (continued) • Implemented a 90-day loan deferral program with 298 deferrals representing $183 million in outstanding loan balances at April 30, 2020 • Added resources to the Credit Administration team to do additional targeted segment and loan analysis and reporting (LTV, DSC, Gov

  8. Slide 8: Attractive Investment Opportunity

    Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 Dividend Payout Ratio: 21.2% Dividend Yield: 3.01% 5 0 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 As of March 31, 2020 Source: NASDAQ Monthly Closing Price Data 10

  9. Slide 9: Growing Franchise

    Growing Franchise Average Total Assets 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Thousands 800,000 1,577,410 1,574,089 1,598,064 1,491,696 1,321,007 600,000 1,222,526 400,000 200,000 0 2015 2016 2017 2018 2019 2020 Q1 Note: Acquisitions of Sierra Vista Bank occurred on October 1, 2016, and F

  10. Slide 10: Strong Net Income and NIM

    Strong Net Income and NIM 25,000 4.60 4.51 4.47 4.50 4.44 4.40 20,000 4.40 4.30 15,000 4.20 4.06 Percent Thousands 4.10 21,289 21,443 10,000 4.01 4.00 15,182 14,026 10,964 3.90 5,000 6,623 3.80 0 3.70 2015 2016 2017 2018 2019 2020 Q1 Net Income Net Interest Margin 12

  11. Slide 11: Solid Earnings ROAA / ROAE

    Solid Earnings ROAA / ROAE 1.80 14.00 1.60 11.62 12.00 1.40 10.07 9.84 9.39 10.00 1.20 8.12 7.69 1.00 8.00 1.66 0.80 6.00 ROAE Percent ROAE ROAA Percent ROAA 1.35 1.36 0.60 1.15 4.00 0.90 0.94 0.40 2.00 0.20 - - 2015 2016 2017 2018 2019 2020 Q1 ROAA ROAE 13

  12. Slide 12: Steady Deposit Growth and Lowest Cost of Funds

    Steady Deposit Growth and Lowest Cost of Funds Average Total Deposits 1,600,000 0.15 0.16 1,400,000 0.13 0.14 1,200,000 0.12 1,000,000 0.10 0.09 0.09 0.09 0.08 800,000 0.08 Percent Thousands 1,284,305 1,333,754 1,295,780 1,334,403 600,000 0.06 1,144,231 1,065,798 400,000 0.04 200,000 0.02 0 0.00 201

  13. Slide 13: Attractive Deposit Mix

    Attractive Deposit Mix Total Deposits = $1.35 Billion TCDs 7% Money Market 20% Non-Interest Bearing 45% Now/Savings 28% As of March 31, 2020 15

  14. Slide 14: Loan Totals and Yield

    Loan Totals and Yield Average Total Loans 1,200,000 5.70 5.62 5.60 1,000,000 5.54 5.51 5.50 5.50 800,000 5.40 600,000 5.29 Percent Thousands 5.27 5.30 908,419 928,560 923,208 400,000 790,504 5.20 578,899 644,282 200,000 5.10 0 5.00 2015 2016 2017 2018 2019 2020 Q1 Total Loans Loan Yield 16

  15. Slide 15: Well Diversified Loan Portfolio

    Well Diversified Loan Portfolio Consumer & Total Loans = $930 Million Equity Loans and Installment, 4% Lines, 7% Other Real Estate, 4% Commercial & Industrial, 11% Agriculture Production & Land, 9% Owner Occupied Commercial Real Real Estate, 21% Estate, 35% R/E Construction & Land, 9% As of March 31

  16. Slide 16: Agricultural Loan Commitments

    Agricultural Loan Commitments Pistachios Citrus 1% 1% Cotton Tree Fruit 2% 10% Almonds Cherries 19% 3% Raisins Table Grapes 8% 7% Tomatoes Open Land 13% 14% Row Crops 3% Walnuts Other 6% 11% Wine Grapes As of March 31, 2020 2% 18

  17. Slide 17: Non Performing Loans

    Non Performing Loans 3,500 1.80 1.61 1.60 3,000 1.40 1.23 2,500 1.13 1.20 0.97 0.99 0.97 2,000 1.00 Percent Thousands 0.80 1,500 2,945 2,740 2,542 2,413 0.60 1,000 1,693 0.40 500 1,115 0.20 0 - 2015 2016 2017 2018 2019 2020 Q1 Non Performing Assets ALLL/Loans 19

  18. Slide 18: Special Mention Loans

    Special Mention Loans 35,000 6.00 30,000 4.80 5.00 25,000 3.95 4.00 20,000 2.99 2.86 3.00 Percent Thousands 2.43 15,000 29,911 28,719 28,183 26,254 2.00 21,908 10,000 1.28 11,936 1.00 5,000 - - 2015 2016 2017 2018 2019 2020 Q1 Special Mention Loans SM Loans/Gross Loans 20

  19. Slide 19: Substandard Loans

    Substandard Loans 60,000 7.00 6.54 6.00 50,000 5.55 5.31 5.00 40,000 3.70 3.59 4.00 30,000 3.09 Percent Thousands 3.00 49,464 49,998 20,000 33,838 34,420 2.00 31,764 28,394 10,000 1.00 - - 2015 2016 2017 2018 2019 2020 Q1 Substandard Loans Sub Loans/Gross Loans 21

  20. Slide 20: Conservative Investment Portfolio

    Conservative Investment Portfolio Total = $546 Million Total = $503 Million Yield = 2.92% Yield = 2.91% Effective Duration 4.46 Effective Duration 4.00 US Equity Corporate Government Private Private Mutual Debt Agencies Label Equity US Label Funds 1% 8% Mortgage Mutual Government Mortgage 2% Fed Fun

  21. Slide 21: On the Horizon

    On the Horizon Improve Efficiencies Organic Loan & Deposit Growth Invest in Team & Technology Monitor COVID-19 Impacts on Customers and Local Economy Proactively Respond to COVID-19 Related Borrower Issues 23

  22. Slide 22: Investing in Relationships

    Investing in Relationships 24

Central Valley Community Bancorp — D.A. Davidson & Company 22nd Annual Financial Institutions Virtual Conference 2020 on 6ix