Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Merger or Acquisition (October 2023)
19 slides from Community West Bancshares's merger presentation, Oct 11, 2023
Slide 1: Transformational Strategic Merger Forming Central California's Preeminent Community Bank
Transformational Strategic Merger Forming Central California’s Preeminent Community Bank October 10, 2023 Investor Presentation
Slide 2: Disclaimer: Forward Looking Statements
2 Disclaimer Forward Looking Statements This communication press release contains certain forward-looking information about Central Valley Bancshares (“CVCY”), Community West Bancshares (“CWBC”), and the combined company after the close of the merger and is intended to be covered by the safe harbor
Slide 3: Additional Information
3 Additional Information Additional Information In connection with the proposed merger CVCY intends to file a Registration Statement on Form S-4 with the SEC that will include a joint proxy statement of CVCY and CWBC and a prospectus of CVCY as well as other relevant documents concerning the propose
Slide 4: Creating the Preeminent Central California Bank
4 ▪ Materially Accelerates Scale and Profitability ▪ Attractive Pro Forma Footprint with Expansion into Highly Sought-After Markets ▪ Diversification of Customer Mix and Products ▪ Compelling Financial Impact ▪ Complementary Cultures with Shared Community Focus $3.6B Pro Forma Assets $2.2B Pro Forma
Slide 5: Overview of Central Valley Community Bancorp
5 (1) Financial data shown as of June 30, 2023 (2) CAGR calculated since June 30, 2013 Source: S&P Capital IQ Pro Central Valley Community Bancorp (CVCY) • Founded in 1980 and headquartered in Fresno, CA • 40+ years serving 15 local communities spanning the Central Valley of California from Visalia
Slide 6: Overview of Community West Bancorp
6 Community West Bancorp (CWBC) • Founded in 1989 and headquartered in Goleta, CA • Operates 8 branches spread across the Central California Coastline with 132 employees • Community West Bancshares Named to American Banker Magazine Top 200 Publicly Traded Community Banks • Pristine credit quality wi
Slide 7: Merger Structure & Consideration
7 Merger Structure & Consideration • Entities: Central Valley Community Bancorp (CVCY) & Community West Bancshares (CWBC) • 100% Stock Consideration • CVCY to issue shares to CWBC shareholders • Fixed Exchange Ratio: 0.79x Pricing(1) • Implied deal value per share of $11.15 • Implied aggregate deal
Slide 8: Key Transaction Assumptions
8 Earnings(1) • CVCY consensus earnings of $25.2 million (2024E) with 5% growth for 2025E • CWBC consensus earnings of $10.4 million (2024E) with 8% growth for 2025E Cost Savings • Cost savings equal to approximately 30% of CWBC’s noninterest expense or approximately 12% of combined noninterest expe
Slide 9: Pro Forma Structure and Leadership
9 CVCY 9 CWBC 6 Pro Forma Structure and Leadership Pro Forma Board Leadership Pro Forma Board of Directors • Community West Bancshares will merge into Central Valley Community Bancorp • Upon completion, Central Valley Community Bancorp and Central Valley Community Bank will adopt Community West Banc
Slide 10: Pro Forma Leadership
10 Pro Forma Leadership James Kim CEO Marty Plourd President of Holding Company Shannon Livingston CFO Patrick Luis CCO Joseph Stronks Chief Risk Officer Blaine Lauhon Chief Banking Officer Teresa Gilio Chief Administrative Officer William Fillipin Central Coast Market President
Slide 11: Compelling Financial Impact
11 1.7% 1.1% 0.9% 8.6% 16.4% 24.0% 0.9% 1.0% 1.6% Compelling Financial Impact (1) Peers defined as publicly traded banks headquartered in the Western Region with $2.0B - $5.0B in total assets; NASDAQ-traded (2) IRR calculation assumes 10.0x terminal price/earnings multiple Peer analysis compares fir
Slide 12: Pro Forma Metrics vs Western Banks with $2B–$5B Assets
12 Western Banks with $2B – $5B Total Assets (1) Estimated Profitability (2) Median Top Quartile(5) ROAA 1.6% 0.94% 1.02% ROATCE 24% 10.0% 11.8% Capital & Liquidity (3) Loans / Deposits 70% 93.8% 99.1% CET1 10.9% 11.9% 13.9% Leverage Ratio 8.0% 9.5% 10.9% NPAs / Assets 0.03% 0.15% 0.28% Market Infor
Slide 13: Significant Enhancement to CWBC EPS and Dividends
13 Significant Enhancement to CWBC EPS and Dividends Diluted Earnings Per Share (2025E) Earnings Accretion (2025E) $1.26 $2.54 CWBC Standalone CWBC Pro Forma 102% 56% With Fair Value Interest Rate Marks Without Fair Value Interest Rate Marks CWBC Standalone CWBC 37% Ownership in Pro Forma C BC With
Slide 14: Combined Deposit Market Overview
14 95,921 64,168 71,440 66,852 109,895 79,493 77,422 84,855 85,469 70,818 64,118 102,588 73,503 El Dorado Fresno Madera Merced Placer Sacramento San Joaquin San Luis Obispo Santa Barbara Stanislaus Tulare Ventura National Source: S&P Capital IQ Pro Combined Deposit Market Overview Creates Top 10 Com
Slide 15: Loan Composition and Deposit Mix
15 Non Int. Bearing 37.0% NOW Accts 9.3% MMDA & Sav 39.3% Time Deposits < $100k 11.6% Time Deposits > $100k 2.7% Non Int. Bearing 21.5% NOW Accts 3.3% MMDA & Sav 49.2% Time Deposits < $100k 23.1% Time Deposits > $100k 2.9% Non Int. Bearing 43.5% NOW Accts 11.8% MMDA & Sav 35.2% Time Deposits < $100k
Slide 16: Combination Benefits All Stakeholders
16 Combination Benefits All Stakeholders • Increased legal lending limit and deeper product base • Expanded resources and capabilities to serve community while maintaining community bank levels of service • Expansion allows for further upgrades in technology offerings and facilities • No anticipated
Slide 17: Comprehensive Due Diligence
17 Investment Portfolio Comprehensive Due Diligence • Completed a coordinated comprehensive due diligence review of each company with executives from Central Valley Community Bancorp & Community West Bancshares, along with advisors & consultants • Each party conducted a thorough credit review of the
Slide 18: Tangible Book Value Dilution and EPS Accretion
18 Tangible Book Value Per Share Dilution 2025 Earnings Per Share Accretion(1) $ in Mi l l ions Mi l l ions of Bas ic Shares $ per share $ in Mi l l ions Mi l l ions of Di luted Shares Central Valley Community Bancorp CVCY Standalone Net Income $26.5 11.8 CVCY TBV as of June 30, 2023 $133.6 11.8 $11
Slide 19: Thank You
Central Valle Communi (Communiry WST Bancorp BANCSHARES &x'¥: << Thank You a
Central Valley Community Bancorp — Merger or Acquisition (October 2023) on 6ix