Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — KBW West Coast Virtual Field Trip (November 2020)
21 slides from Community West Bancshares's conference presentation, Nov 19, 2020
Slide 1: Investor Presentation KBW West Coast Virtual Field Trip
Investor Presentation KBW West Coast Virtual Field Trip November 19, 2020 Jim Ford President & CEO Dave Kinross EVP CFO
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
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 A. Luis EVP, Chief Credit Officer - 35 Ken Ramos EVP, Market Executive – Sout
Slide 4: Overview
Overview 20 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $154 Million Institutional Ownership 47% Insider Ownership 17% Total Assets $1.91 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of Sep
Slide 5: Financial Highlights
Financial Highlights 2020 Q3 YTD 2019 2018 Total Assets $1.91 Billion $1.60 Billion $1.54 Billion Net Income $13.27 Million $21.44 Million $21.29 Million Diluted EPS $1.05 $1.59 $1.54 Net Interest Margin 3.93% 4.51% 4.44% ROAA 0.99% 1.36% 1.35% ROAE 7.78% 9.39% 10.07% Cash Dividends per share $0.33
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 • Our Credit teams began monitoring clients via direct communication, checklists we deployed to aid in monitoring loans • In Q2 we reviewed 70% of the loan portfolio, a
Slide 7: Attractive Investment Opportunity
Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 Dividend Payout Ratio - 31.4% Dividend Yield - 3.59% 5 0 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 As of Oct. 31, 2020 Source: NASDAQ Monthly Closing Price Data 7
Slide 8: Growing Franchise
Growing Franchise Average Total Assets 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Thousands 1,780,716 800,000 1,577,410 1,574,089 1,491,696 1,321,007 600,000 1,222,526 400,000 200,000 0 2015 2016 2017 2018 2019 2020 Q3 YTD Note: Acquisitions of Sierra Vista Bank occurred on October
Slide 9: Strong Net Income and NIM
Strong Net Income and NIM 25,000 4.60 4.51 4.44 4.50 4.40 20,000 4.40 4.30 15,000 4.20 4.06 4.10 4.01 Percent Thousands 21,289 21,443 10,000 4.00 3.93 15,182 3.90 14,026 13,118 10,964 5,000 3.80 3.70 0 3.60 2015 2016 2017 2018 2019 2020 Q3 YTD Net Income Net Interest Margin 9
Slide 10: Solid Earnings ROAA / ROAE
Solid Earnings ROAA / ROAE 1.60 12.00 10.07 1.40 9.84 9.39 10.00 1.20 8.12 7.69 7.78 8.00 1.00 0.80 6.00 1.36 1.35 Percent ROAE ROAA Percent ROAA 0.60 1.15 4.00 0.99 0.90 0.94 0.40 2.00 0.20 - - 2015 2016 2017 2018 2019 2020 Q3 YTD ROAA ROAE 10
Slide 11: 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 0.14 1,200,000 0.12 0.10 1,000,000 0.10 0.09 0.09 0.09 0.08 800,000 0.08 1,518,250 Percent Thousands 1,284,305 1,333,754 1,295,780 600,000 0.06 1,144,231 1,065,798 400,000 0.04 200,000 0.02 0 0.00 201
Slide 12: Attractive Deposit Mix
Attractive Deposit Mix Total Deposits = $1.68 Billion TCDs 5% Money Market 19% Non-Interest Bearing 48% Now/Savings 28% As of September 30, 2020 12
Slide 13: Loan Totals and Yield
Loan Totals and Yield Average Total Loans 1,200,000 5.54 5.60 5.51 5.50 5.50 1,000,000 5.40 5.29 5.27 5.30 800,000 5.20 600,000 5.10 Percent Thousands 1,042,010 5.00 908,419 928,560 400,000 4.97 4.90 790,504 578,899 644,282 4.80 200,000 4.70 0 4.60 2015 2016 2017 2018 2019 2020 Q3 YTD Total Loans Lo
Slide 14: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Total Loans = $1.14 Billion Consumer & Equity Loans and Installment, 3% Other Real Estate, Lines, 5% 3% Commercial & Industrial, 27% Commercial Real Estate, 29% Agriculture Production & Land, 9% R/E Construction & Owner Occupied Land, 7% Real Estate, 18% As of Septemb
Slide 15: Agricultural Loan Commitments
Agricultural Loan Commitments Cotton Pistachios Citrus 2% 1% 1% Almonds Tree Fruit 17% 10% Cherries 7% Table Grapes 4% Raisins 6% Open Land 16% Tomatoes 11% Row Crops Walnuts 4% Other Wine Grapes 8% 7% 6% Total Ag Line Commitments $121.5 Million As of September 30, 2020 15
Slide 16: Non Performing Loans
Non Performing Loans 4,000 1.80 1.61 3,500 1.60 1.32 1.40 3,000 1.23 1.20 2,500 0.97 0.99 0.97 1.00 2,000 Percent Thousands 3,458 0.80 1,500 2,945 2,740 0.60 2,542 2,413 1,000 1,693 0.40 500 0.20 0 - 2015 2016 2017 2018 2019 2020 Q3 YTD Non Performing Assets ALLL/Loans * ALLL/Loans 9/30/2020 w/o PPP
Slide 17: Special Mention Loans
Special Mention Loans 50,000 6.00 45,000 4.80 5.00 40,000 35,000 3.95 3.95 4.00 30,000 2.99 2.86 25,000 3.00 2.43 Percent Thousands 43,893 20,000 2.00 15,000 29,911 28,719 28,183 26,254 21,908 10,000 1.00 5,000 - - 2015 2016 2017 2018 2019 2020 Q3 YTD Special Mention Loans SM Loans/Gross Loans 17
Slide 18: Substandard Loans
Substandard Loans 60,000 6.54 7.00 6.00 50,000 5.55 5.31 5.00 40,000 3.59 4.00 3.39 30,000 3.09 Percent Thousands 3.00 49,464 49,998 20,000 37,643 33,838 2.00 31,764 28,394 10,000 1.00 - - 2015 2016 2017 2018 2019 2020 Q3 YTD Substandard Loans Sub Loans/Gross Loans 18
Slide 19: Conservative Investment Portfolio
Conservative Investment Portfolio Total = $639 Million Total = $503 Million Yield = 2.38% Yield = 2.91% Effective Duration 5.07 US Effective Duration 4.00 Government Equity Corporate Agencies Private Fed Funds Mutual Debt 6% Private Label Sold Funds 1% Label Equity US Mortgage 8% 2% Mortgage Mutual
Slide 20: On the Horizon
On the Horizon Improve Efficiencies Monitor COVID-19 Impacts on Customers and Local Economy Proactively Respond to COVID-19 Related Borrower Issues Organic Loan & Deposit Growth Invest in Team & Technology 20
Slide 21: Investing in Relationships
Investing in Relationships 21
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