Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Investor Presentation (November 2018)
19 slides from Community West Bancshares's investor presentation, Nov 2, 2018
Slide 1: Investor Presentation
Investor Presentation Oct. 31 –Nov. 2, 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 21 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $298 Million Institutional Ownership 41% Insider Ownership 10% Total Assets $1.52 Billion Headquarters Fresno, CA Number of Branches 21 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of Sep
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 Q3 2018 YTD 2017 2016 Total Assets $1.52 Billion $1.66 Billion $1.44 Billion Net Income $16.01 Million $14.03 Million $15.18 Million Diluted EPS $1.16 $1.10 $1.33 Net Interest Margin 4.40% 4.41% 4.09% ROAA 1.34% 0.94% 1.15% ROAE 10.16% 7.69% 9.84% Cash Dividends per share $0.22
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 October 22, 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 Thousands 800,000 1,589,365 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 Q3 YTD Note: Acquisitions of Visalia Community Bank occurred on July 1, 2013, S
Slide 10: Strong Net Income and NIM
Strong Net Income and NIM 20,000 4.50 4.41 4.41 4.42 18,000 4.40 16,000 14,000 4.30 12,000 4.20 10,000 4.11 4.09 4.09 Percent Thousands 17,561 4.10 8,000 16,008 15,182 4.01 14,026 6,000 10,964 4.00 4,000 8,250 5,294 3.90 2,000 0 3.80 2013 2014 2015 2016 2017 2017* 2018 Q3 YTD Net Income Net Interest
Slide 11: Solid Earnings ROAA / ROAE
Solid Earnings ROAA / ROAE 1.60 14.00 1.40 11.56 12.00 10.16 1.20 9.84 10.00 1.00 8.12 7.69 8.00 6.89 Percent Percent 0.80 1.41 6.00 1.34 ROAE ROAA 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 Q3 YTD 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 0.08 800,000 0.08 1,345,198 Percent Thousands 1,284,305 600,000 0.06 1,144,231 1,006,560 1,065,798 400,000 848,493 0.04 200,000 0.02 0 0.00 2013
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix Total Deposits = $1.28 Billion TCDs 8% Money Market Non‐Interest Bearing 22% 42% Now/Savings 28% As of September 30, 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 5.48 500,000 Percent Thousands 907,779 5.40 400,000 5.27 5.29 790,504 300,000 578,899 644,282 5.20 533,531 445,300 200,000 5.00 100,000 0 4.80 2013 2014 2015 2016 2017 2018 Q3 YTD T
Slide 15: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Consumer & Total Loans = $911 Million Equity Loans and Installment, 4% Lines, 8% Other Real Estate, 4% Commercial & Industrial, 11% Agriculture Production & Land, 9% Owner Occupied Commercial Real Real Estate, 21% Estate, 34% R/E Construction & Land, 11% As of Septemb
Slide 16: Agricultural Loan Commitments
Agricultural Loan Commitments Nursery Pistachios Citrus 2% 3% 1% Cotton Tree Fruit Almonds 2% 10% 20% Cherries Table Grapes 10% 3% Raisins Open Land 7% 18% Tomatoes 3% Row Crops Wine Grapes Walnuts 3% Other 7% 8% 3% As of September 30, 2018 16
Slide 17: Conservative Investment Portfolio
Conservative Investment Portfolio Total = $459 Million Equity Mutual Funds Yield = 2.88% 2% Duration 4.65 Years US Government Fed Funds Sold Agencies 4% 5% Private Label Mortgage and Asset Backed 22% Agency CMO, MBS & Other Securities Municipal Securities 53% 14% As of September 30, 2018 17
Slide 18: On the Horizon
On the Horizon Improve Efficiencies Organic Loan Growth Fee Income Improvements Realize Benefits from Branch Optimization Strategy Monitor Agriculture Impacts from Water, Regulation, Tariffs, Labor and Global Pricing 18
Slide 19: Investing in Relationships
Investing in Relationships 19
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