Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — D.A. Davidson & Co. 20th Annual FIG Summit and Financial Institutions Conference 2018
19 slides from Community West Bancshares's conference presentation, May 7, 2018
Slide 1: Investor Presentation - D.A. Davidson 20th Annual FIG Summit
Investor Presentation D.A. Davidson & Co. 20th Annual FIG Summit and Financial Institutions Conference May 9-10, 2018 Jim Ford President & CEO Dave Kinross EVP CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain matters discussed herein 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 business str
Slide 3: Experienced Management Team
Experienced Management Team Years at Years of Executive Position CVCY Experience James M. Ford President & CEO 4 38 David A. Kinross EVP, Chief Financial Officer 12 28 James J. Kim EVP, Chief Administrative Officer 1 18 Gary D. Quisenberry EVP Commercial & Business Banking 18 33 Lydia E. Shaw EVP Co
Slide 4: Overview
Overview 23 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $278 Million Institutional Ownership 42% Insider Ownership 10% Total Assets $1.62 Billion Headquarters Fresno, CA Number of Branches 23 Year Established 1980 Strategic Footprint Bakersfield to As of March 31, 2018
Slide 5: Overview of the Region
Overview of the Region Seven Metropolitan Statistical Areas • Agricultural products from the region totaled $24.2 billion in 2016, more than 48 states. • Regional GDP equaled $237.7 billion in 2016, more than 27 states. • Regional Population equaled 5.5 million in 2017, more than 28 states. • Includ
Slide 6: Region Comparative Data
Region Comparative Data Fresno MSA Stockton Sacramento California USA MSA MSA Job Growth (1 year) 2.9% 3.4% 2.0% 1.9% 1.5% (5 years) 17.1% 18.1% 13.1% 13.3% 9.2% Population Growth (1 year) 0.9% 1.4% 1.3% 0.6% 0.7% (5 years) 4.4% 6.4% 6.1% 4.0% 3.7% Median Household Income (2016) $48,715 $59,518 $64,
Slide 7: Financial Highlights
Financial Highlights Q1 2018 2017 2016 Total Assets $1.62 Billion $1.66 Billion $1.44 Billion Net Income $5.29 Million $14.03 Million $15.18 Million Diluted EPS $0.38 $1.10 $1.33 Net Interest Margin 4.26% 4.41% 4.09% ROAA 1.30% 0.94% 1.15% ROAE 10.15% 7.69% 9.84% Cash Dividends per share $0.07 $0.24
Slide 8: Attractive Investment Opportunity
Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 5 0 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 As of April 30, 2018 Source: NASDAQ Monthly Closing Price Data 8
Slide 9: Growing Franchise
Growing Franchise Average Total Assets 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 1,624,504 Thousands 800,000 1,491,696 1,321,007 1,222,526 600,000 1,157,483 986,924 400,000 200,000 0 2013 2014 2015 2016 2017 2018 Q1 Note: Acquisitions of Visalia Community Bank occurred on July 1, 2013, Sierr
Slide 10: Strong Net Income and NIM
Strong Net Income and NIM 20,000 4.50 4.41 4.41 18,000 4.40 16,000 14,000 4.26 4.30 12,000 4.20 10,000 4.11 4.09 4.09 Percent Thousands 17,561 4.10 8,000 15,182 4.01 14,026 6,000 4.00 10,964 4,000 8,250 5,294 5,291 3.90 2,000 0 3.80 2013 2014 2015 2016 2017 2017* 2018 Q1 Net Income Net Interest Marg
Slide 11: Solid Earnings ROAA / ROAE
Solid Earnings ROAA / ROAE 1.60 14.00 11.56 1.40 12.00 10.15 1.20 9.84 10.00 1.00 8.12 7.69 8.00 6.89 0.80 1.41 6.00 ROAE Percent ROAE Percent ROAA 1.30 0.60 4.06 1.15 0.90 0.94 4.00 0.40 0.84 2.00 0.20 0.46 - - 2013 2014 2015 2016 2017 2017* 2018 Q1 ROAA ROAE * Excluding DTA revaluation 11
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 0.14 1,200,000 0.12 0.11 1,000,000 0.09 0.10 0.09 0.08 800,000 0.07 0.08 Percent Thousands 600,000 1,384,653 0.06 1,284,305 1,065,798 1,144,231 1,006,560 400,000 848,493 0.04 200,000 0.02 0 0.00 2013
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix Total Deposits = $1.39 Billion TCDs 9% Money Market Non-Interest Bearing 21% 40% Now/Savings 30% As of March 31, 2018 13
Slide 14: Loan Totals and Yield
Loan Totals and Yield Average Total Loans 1,000,000 6.20 900,000 5.96 6.00 800,000 700,000 5.80 600,000 5.53 5.51 5.60 500,000 5.42 Percent Thousands 5.40 400,000 5.27 5.29 790,504 898,811 300,000 578,899 644,282 5.20 533,531 445,300 200,000 5.00 100,000 0 4.80 2013 2014 2015 2016 2017 2018 Q1 Total
Slide 15: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Consumer & Total Loans = $917 Million Equity Loans and Installment, 3% Lines, 8% Other Real Estate, 4% Commercial & Industrial, 11% Agriculture Production & Land, 10% Owner Occupied Commercial Real Real Estate, 22% Estate, 33% R/E Construction & Land, 10% As of March
Slide 16: Agricultural Loan Commitments
Agricultural Loan Commitments Nursery Citrus Tree Fruit 2% 1% 4% Pistachios 4% Almonds Cherries 20% 10% Table Grapes Raisins 4% 9% Tomatoes 1% Row Crops Open Land 3% Other 20% 4% Wine Grapes 7% Walnuts 11% As of March 31, 2018 16
Slide 17: Conservative Investment Portfolio
Conservative Investment Portfolio Total = $561 Million Yield = 2.83% Duration 3.92Years Equity Mutual Funds Fed Funds Sold 1% US Government 3% Agencies 12% US Treasury Securities 6% Agency CMO, MBS & Other Securities Municipal Securities 53% 25% As of March 31, 2018 17
Slide 18: On the Horizon
On the Horizon Organic Loan Growth Assimilate FOLB Acquisition in 2018 Improve Efficiencies Fee Income Improvements Execute Branch Footprint Optimization Strategy Monitor Agriculture Impacts from Water, Regulation, Labor and Global Pricing 18
Slide 19: Investing in Relationships
Investing in Relationships 19