West Coast Community Bancorp · NASDAQ:WCCB
West Coast Community Bancorp — Investor Presentation (October 2024)
31 slides from West Coast Community Bancorp's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
I N V E S T O R P R E S E N T AT I O N O CTOB ER 2 0 24
Slide 2: Disclaimer
DISCLAIMER This investor presentation has been prepared by Santa Cruz County Bank, (the “Bank”), the wholly owned subsidiary of 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 pub
Slide 3: Santa Cruz County Bank
S A N TA C R U Z CO U N T Y B A N K Community bank headquartered in Santa Cruz, CA Opened in 2004 Approximately 152 employees as of September 30, 2024 $1.8 billion in assets as of September 30, 2024 West Coast Community Bancorp was established as SCCB's bank holding company in Q3 2023 Acquired 1st C
Slide 4: Leadership Team
LEADERSHIP TEAM or a Krista Snelling Cecilia Situ Jon P. Sisk Angelo DeBernardo, Jr. Mary Anne Carson President & Chief Executive Officer EVP Chief Financial Officer EVP Chief Banking Officer EVP Chief Lending Officer EVP Chief Marketing Officer 668% Shawn Lipman Jaime Manriquez Maxwell Sinclair Sha
Slide 5: Q3 2024 Results
Q3 2024 RESULTS Balance Sheet Strength Consistent Profitability Strong Earnings Metrics Healthy Credit Quality $1.801 Billion $20.5 Million 1.87% 0.13% Total Assets Q3 Net Interest Income Q3 ROAA NPAs/Assets $1.395 Billion $8.2 Million 14.52% 0.17% Total Loans Q3 Net Income Q3 ROATCE NPLs/Loans $1.5
Slide 6: Attractive Markets
ATTRACTIVE MARKETS County # of Branches Deposit Market Sha re* Population** Median Household Income** 5 14.93% 271K $106K Proforma market share post-merger with 1st Capital Bank: SANTA CRUZ COUNTY 15.12% (4th in rank ) 1 0.06% 1.9M $155K 2 1.05% 439K $88K Proforma market share post-merger with 1st C
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 8: Solid Liquidity Position
SOLID LIQUIDITY POSITION ($ in 000s) As of September 30, 2024 Strong on-balance-sheet As of liquidity position 9/30/2024 6/30/2024 coupled with available Cash and due from banks $ 134,446 $ 36,127 external contingency Unencumbered AFS securities 126,086 163,355 liquidity capacity of Total on-balance
Slide 9: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION US Gov't sponsored agencies 3% As of September 30, 2024 MBS/CMO 17% SBA backed securities 4% Chart includes available-for-sale (AFS) securities at market value and held-to-maturity securities Municipal at amortized cost bonds 5% Modified duration of 2.3 years. 96% of
Slide 10: Attractive Deposit Mix
AT T R A C T I V E D E P O S I T M I X West Coast Community Bancorp Standalone Deposits Pro Forma Combined with 1st Capital Bancorp Deposits Money Market CDs CDs Money 30% 8% 9% Market Savings 24% 12% Savings Brokered Interest 6% Brokered Interest deposits Bearing deposits Bearing 4% Demand 1% Deman
Slide 11: Deposit Characteristics
DEPOSIT CHARACTERISTICS ($ in 000s) $1,800,000 $1,600,000 $1,400,000 Insured deposits includes fully $664,459 $690,342 $1,200,000 (44%) $627,202 $622,321 (45%) collateralized (43%) (43%) balances. $1,000,000 Migration of $800,000 deposits into $600,000 IntraFi reciprocal deposit $828,774 $836,609 $4
Slide 12: Strong Deposit Franchise
STRONG DEPOSIT FRANCHISE Granular Deposit Account Composition ($ in 000s) As of September 30, 2024 Personal 36% Total Personal Deposits $ 544,086 # of Accounts 11,232 Business Average Balance Per Account $ 48 63% Total Business Deposits $ 963,007 # of Accounts 6,017 Average Balance Per Account $ 160
Slide 13: Exceptional Credit Culture
E XC EP T ION AL C RE D IT C U LT U R E Nonperforming Loans As of September 30, 2024 Nonperforming loans to total ($000) 2019 2020 2021 2022 2023 2024Q1 2024Q2 2024Q3 loans of 0.17%. Nonaccrual Loans 1-4 Family $0 $0 $0 $808 $0 $0 $0 $0 Only one nonaccrual loan. CRE & Multifamily 0 0 0 0 6,526 0 0 2
Slide 14: Loans by Type
LOANS BY TYPE West Coast Community Bancorp Standalone Loans Pro Forma Combined with 1st Capital Bancorp Loans Agriculture Agriculture 3.3% 3.0% 1-4 SFR 1-4 SFR CRE, Non-Owner 6.6% CRE, Non-Owner 4.1% Occupied Construction Occupied 44.7% 8.6% 40.8% Construction 12.0% Consumer, Municipal, & Consumer,
Slide 15: Real Estate Loan Detail
R E A L E S T AT E L O A N D E TA I L 1-4 SFR Bay Area* Total Weighted Average 2.1% Farmland West Coast Community 4.2% *Alameda, San Francisco, 3.1% San Mateo, Contra Costa, LTV: 46.81% Bancorp Standalone Loans Sonoma, Solano, Napa, Retail and Marin Counties 14.4% Monterey Hotel County 20.5% 19.1% O
Slide 16: Fixed vs. Variable Rate Loans and Repricing
F I X E D V S . VA R I A B L E R AT E LO A N S AND REPRICING 16
Slide 17: Fixed vs. Variable Rate Loans and Repricing
F I X E D V S . VA R I A B L E R AT E LO A N S AND REPRICING 17
Slide 18: Upcoming CRE Interest Rate Repricing
U P C O M I N G C R E I N T E R E S T R AT E REPRICING 18
Slide 19: Non-Owner-Occupied CRE Loans
NON-OWNER-OCCUPIED CRE LOANS Outstanding NOO CRE Loans as of September 30, 2024 19
Slide 20: Consistent Balance Sheet Growth
CONSISTENT BALANCE SHEET GROWTH Total Assets ($MM) Gross Loans Excl. PPP Incl. Deferred Fees ($MM) $1,701 $1,744 $1,794 $1,713 $1,712 $1,801 $1,265 $1,411 $1,378 $1,387 $1,394 $1,423 $1,109 $1,071 $917 $758 $322 $227 2019Y 2020Y 2021Y 2022Y 2023Y 2024 Q1 2024 Q2 2024Q3 2019Y 2020Y 2021Y 2022Y 2023Y
Slide 21: Strong Profitability
S T R O N G P R O F I TA B I L I T Y Net Income ($MM) Diluted Earnings per Share (EPS) $8.9 $8.3 $9.1 $8.8 $9.3 $8.2 $8.2 $1.00 $1.00 2.08% 2.05% 2.14% 1.94% 1.99% 1.93% 1.87% $1.10 $1.05 $0.98 $1.08 $1.05 $0.97 $0.96 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2023Q1 2023Q2 2023Q3 2023Q4 2024Q
Slide 22: Disciplined Pricing Drives NIM and Loan Yields
DISCIPLINED PRICING DRIVES NIM AND LOAN YIELDS 5-Year Yield on Loans and Net Interest Margin* Trend Compared to Peers 8.00% 7.02% 7.00% 5.98% 6.00% 5.00% 5.00% 4.92% 4.00% 3.68% 3.00% 2.00% 1.00% 0.00% 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 202
Slide 23: Disciplined Pricing Drives Low Cost of Funds
DISCIPLINED PRICING DRIVES LOW COST OF FUNDS 5-Year Cost of Funds Trend Compared to Peers 2.50% 1.91% 2.00% 1.50% 1.50% 1.00% 0.50% 0.00% 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 24: Robust Capital Position
R O B U S T C A P I TA L P O S I T I O N TCE Ratio Tier 1 Ratio 12.50% 13.00% 12.94% 15.01% 14.34% 14.62% 14.97% 15.37% 11.69% 11.47% 13.62% 13.69% 13.72% 10.03% 9.90% 9.44% 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 2024Q2 2024Q3 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 2024Q2 2024Q3 Total Capital Ratio Leve
Slide 25: Tangible Book Value Per Share
TA N G I B L E B O O K VA LU E P E R S H A R E CONTINUES TO TREND UP $27.20 $25.95 $25.05 $24.10 $20.04 $18.50 $16.50 $14.38 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 2024Q2 2024Q3 Tangible Book Value per Share = (Shareholder’s Equity - Goodwill & Intangibles)/ Outstanding Shares Adjusted for stock divid
Slide 26: Shareholder Focused
SHAREHOLDER FOCUSED Superior Price Performance Cash Dividend 80% 65.8% $0.180 60% $0.170 $0.170 $0.170 40% $0.160 20% $0.150 $0.150 $0.150 0% Jan-22 May-22 Sep-22 Jan-23 May-23 Sep-23 Jan-24 May-24 Sep-24 -20% (15.6%) -40% 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 -60% SCZC NASDAQ Bank
Slide 27: Community Reinvestment
COMMUN ITY REIN VESTMENT 2,700 + Hours of Community Service in 2023 Outstanding CRA Rating – Corporate Leadership Through volunteerism and service on boards and committees, we reinvest our time and financials into the communities we serve by supporting local non-profits, service clubs, chambers and
Slide 28: Rankings and Recognition
RANKINGS AND RECOGNITION National California AMERICAN BANKER MAGAZINE BANK PERFORMANCE REPORT(formerly FMC) Top 100 Best Performing Community Banks in the United 10th out of 120 banks in California for overall financial States, based upon 3-year average return on equity for banks performance for the
Slide 29: Appendix
WEST COAST
Slide 30: Highlights
HIGHLIGHTS Capacity to Grow Profitability • Consistent growth via organic • Profitability metrics are best expansion and strategic mergers amongst peers • Robust capital levels • Disciplined expense management • Attractive markets Clear Vision Featured Business Lines • SBA lending expertise • New pr
Slide 31: Non-GAAP Reconciliation
N O N - G A A P R E C O N C I L I AT I O N Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balanc
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