California Bancorp · NASDAQ:BCAL
California Bancorp — Q3 2020 Earnings Presentation
19 slides from California Bancorp's earnings presentation, Oct 30, 2020
Slide 1: Investor Presentation Q3 2020
Investor Presentation Q3 2020 Steven E. Shelton President & CEO Thomas A. Sa SEVP, CFO & COO Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements During the course of the presentation and any transcript that may result, written or otherwise, California BanCorp (the “Company”) may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current
Slide 3: Overview of California Bancorp
Overview of California Bancorp Established in 2007 as a relationship focused commercial business bank serving Northern California with $2.0 billion in assets and market cap of ~$92 million(1) Majority of executive management joined the bank at inception Significant commercial core deposit base 23 pr
Slide 4: Investment Highlights
Investment Highlights Branch light, commercial focused business bank with strong middle market relationships throughout Northern California Experienced management team and seasoned C&I relationship teams with strong ties to the local markets Proven organic and acquisitive growth story Quality core d
Slide 5: Branch Light, Commercial Focused Business Bank
Branch Light, Commercial Focused Business Bank Impressive Loan & Deposit Growth Middle market commercial banking focus Privately owned companies with $20 million - $200 million in annual revenue Clients with minimum lending relationships of $2 million or $1 million in deposits Portfolio managed to ~
Slide 6: Taking Share from National/Regional Banks
Taking Share from National/Regional Banks ~$50 million in annual revenue $5 million revolver with $2 million outstanding $1 million equipment financing $3 million commercial real estate loan $1 million demand deposit utilizing cash management services $3 million money market accounts to hold surplus
Slide 7: Experienced Management Team
Experienced Management Team Served as Executive Vice President and CCO from 2007 through 2017 Previously served in various executive management positions including Executive Vice President and Senior Lending Officer for Wells Fargo’s corporate bank and President & CCO of CivicBank of Commerce John L
Slide 8: Demonstrated Growth Track Record
Demonstrated Growth Track Record Successful Expansion Throughout Northern California $16 million common stock offering at $9.90 per share to fund growth in June 2014 $4 million private placement offering at $12.86 per share to payoff SBLF in May 2016 Completed acquisition of Pan Pacific Bank ($131 m
Slide 9: Strong and Growing Core Deposit Base
Strong and Growing Core Deposit Base Deposits increased $513 million from Q3-2019 to Q3-2020 Core deposit base driven by commercial clients 95%+ of commercial relationships hold deposits at the bank Core deposits comprise 87% of total deposits Utilize remote deposit capture and commercial cash manag
Slide 10: Diversified Commercial Loan Portfolio
Diversified Commercial Loan Portfolio Dollars in millions Data as of 12/31 for each respective year and 09/30 for Q3-2020 Reflects impact from PPP loans Loan Portfolio Composition Operating LOC Usage Historical Loan Composition(1) Gross Loan Funding vs. Net Loan Growth 2015 – Q3’20 CAGR C&I: 14.1% C
Slide 11: Commercial and CRE Loan Portfolios
Commercial and CRE Loan Portfolios Well diversified loan portfolio mitigates risk Commercial Loan Portfolio(1) CRE Loan Portfolio(1) Data as a percent of total loans, $1.4 billion Data as of 09/30/2020
Slide 12: Paycheck Protection Program (PPP) Detail
Paycheck Protection Program (PPP) Detail PPP Loans (9/30/20) 731 PPP loans (35% of total loans) with balances of $362 million (27% of total loans) as of 9/30/20 Fees of $9.1 million received from PPP loan originations are amortized over two years, with fees of $6.8 million remaining to recognized at
Slide 13: COVID-19 Loan Deferral Program Detail
COVID-19 Loan Deferral Program Detail Loan Deferral Balances Deferrals Outstanding % % of Total “Core” Portfolio Sector 6/30/20 9/30/20 Change 6/30/20 9/30/20 Dental Practice Acquisition $ 137.8 $ 0 (100%) 15% 0% Dental CRE 38.0 0 (100%) 4% 0% Dental Total 175.8 0 (100%) 19% 0% Other owner occupied
Slide 14: Non-Dental CRE Deferral Detail
Non-Dental CRE Deferral Detail 35 Non-Dental CRE Loan Deferrals (9/30/20) Property Type # of Loans % of Loans Principal Balance % of Loans Owner occupied CRE: Industrial 3 50% $6.3 53% Office 0 0% - 0% Retail 0 0% - 0% Other 1 17% $1.1 9% Hotel/Motel & Gas Station 0 0% - 0% Owner occupied CRE total
Slide 15: Asset Quality Trends
Asset Quality Trends Net Charge-Offs (Recoveries) ($000s)1 Reserves / Loans Nonperforming Assets NCOs (Recoveries) / Avg. Loans (%)1 (1) Net charge-offs for Q3-YTD concentrated in Q2-2020 related to non-systemic issues Data as of 12/31 for each respective year and 09/30 for Q3-YTD
Slide 16: Historical Profitability Trends
Historical Profitability Trends (1) ROAA and ROATCE is for the last twelve months ended on 09/30/2020 Data as of 12/31 for each respective year ROAA ROATCE Efficiency Ratio Net Interest Margin EPS ($) ROAA (%)
Slide 17: Capital Ratios – Bank Only
Capital Ratios – Bank Only Data as of 12/31 for each respective year and 09/30 for Q3-2020 Closed $20.0 million subordinated debt offering to support consolidated capital ratios TCE / TA Leverage Ratio Total Capital Ratio Tier 1 Ratio
Slide 18: Summary
Summary > Northern California commercial business bank with a disciplined approach to credit underwriting > Experienced Executive Management Team and seasoned C&l Relationship Managers > Strong commercial loan portfolio with corresponding commercial relationship deposits > Keen focus on relationship
Slide 19: Please send questions to ir@bankcbc.com
Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com