Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Janney Montgomery Scott West Coast Bank CEO Forum 2020
19 slides from Community West Bancshares's conference presentation, Jan 29, 2020
Slide 1: Investor Presentation – Janney West Coast Bank CEO Forum
Investor Presentation Janney Montgomery Scott West Coast Bank CEO Forum January 29-30, 2020 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 6 40 David A. Kinross EVP, Chief Financial Officer 14 30 James J. Kim EVP, Chief Operating Officer 3 20 Patrick J. Carman EVP, Chief Credit Officer 11 48 Ken Ramos EVP, Market Executive – S
Slide 4: Overview
Overview 20 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $258 Million Institutional Ownership 48% Insider Ownership 17% Total Assets $1.60 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of Dec
Slide 5: Overview of the Region
Overview of the Region Seven Metropolitan Statistical Areas • Agricultural products from the region totaled $26.9 billion in 2017, more than 48 states. • Regional GDP equaled $245.7 billion in 2017, more than 26 states including Oregon and Nevada. • Regional Population equaled 5.6 million in 2018, m
Slide 6: Region Comparative Data
Region Comparative Data Fresno MSA Stockton Sacramento California USA MSA MSA Job Growth (1 year, Dec 2017-18) 2.5% 2.6% 1.6% 1.7% 1.8% (5 years, Dec 2013-18) 17.2% 18.2% 13.5% 12.6% 9.4% Population Growth (1 year, 2017-2018) 1.1% 1.3% 1.4% 0.5% 0.6% (5 years, 2013-2018) 5.3% 7.4% 5.4% 3.6% 3.5% Med
Slide 7: Financial Highlights
Financial Highlights 2019 2018 2017 Total Assets $1.60 Billion $1.54 Billion $1.66 Billion Net Income $21.44 Million $21.29 Million $14.03 Million Diluted EPS $1.59 $1.54 $1.10 Net Interest Margin 4.51% 4.44% 4.40% ROAA 1.36% 1.35% 0.94% ROAE 9.39% 10.07% 7.69% Cash Dividends per share $0.43 $0.31 $
Slide 8: Attractive Investment Opportunity
Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 Dividend Payout Ratio - 27.0% Dividend Yield - 2.11% 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 1/1/2019 As of December 31, 2019 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 1,577,410 1,574,089 1,491,696 1,321,007 1,222,526 600,000 1,157,483 400,000 200,000 0 2014 2015 2016 2017 2018 2019 Note: Acquisitions of Sierra Vista Bank occurred on October 1, 2016, and Fols
Slide 10: Strong Net Income and NIM
Strong Net Income and NIM 25,000 4.60 4.51 4.50 4.44 4.40 4.40 20,000 4.40 4.30 15,000 4.20 4.11 4.06 Percent Thousands 4.10 21,289 21,443 10,000 4.01 17,561 4.00 15,182 14,026 10,964 3.90 5,000 5,294 3.80 0 3.70 2014 2015 2016 2017 2017* 2018 2019 Net Income Net Interest Margin * Excluding DTA reva
Slide 11: Solid Earnings ROAA / ROAE
Solid Earnings ROAA / ROAE 1.60 12.00 10.07 9.84 1.40 9.62 9.39 10.00 1.20 8.12 7.69 8.00 1.00 0.80 6.00 1.36 1.35 Percent ROAE ROAA Percent ROAA 4.06 0.60 1.15 1.18 4.00 0.90 0.94 0.40 2.00 0.20 0.46 - - 2014 2015 2016 2017 2017* 2018 2019 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 0.09 0.08 800,000 0.08 Percent Thousands 1,284,305 1,333,754 1,295,780 600,000 0.06 1,144,231 1,065,798 1,006,560 400,000 0.04 200,000 0.02 0 0.00 201
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix Total Deposits = $1.33 Billion TCDs 7% Money Market 20% Non-Interest Bearing 45% Now/Savings 28% As of December 31, 2019 13
Slide 14: Loan Totals and Yield
Loan Totals and Yield Average Total Loans 1,200,000 5.60 5.54 5.53 5.55 5.51 5.50 1,000,000 5.50 5.45 800,000 5.40 600,000 5.35 Percent Thousands 5.29 5.27 5.30 908,419 930,883 400,000 790,504 5.25 5.20 200,000 644,282 533,531 578,899 5.15 0 5.10 2014 2015 2016 2017 2018 2019 Total Loans Loan Yield
Slide 15: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Consumer & Total Loans = $943 Million Equity Loans and Installment, 5% Lines, 7% Other Real Estate, 3% Commercial & Industrial, 11% Agriculture Production & Land, 11% Owner Occupied Commercial Real Real Estate, 21% Estate, 35% R/E Construction & Land, 8% As of Decembe
Slide 16: Agricultural Loan Commitments
Agricultural Loan Commitments Pistachios Citrus 1% 1% Cotton 4% Tree Fruit Almonds 9% 19% Cherries 6% Table Grapes Raisins 4% 8% Open Land 14% Tomatoes 10% Row Crops Walnuts 3% 7% Other Wine Grapes 9% 5% As of December 31, 2019 16
Slide 17: Conservative Investment Portfolio
Conservative Investment Portfolio Total = $506 Million Equity Mutual Yield = 2.92% Funds Effective Duration 4.00 Years Corporate Debt 2% US Government 1% Agencies Fed Funds Sold 3% 6% Private Label Mortgage and Asset Backed 31% Agency CMO, MBS & Other Securities 39% Municipal Securities 6% As of Dec
Slide 18: On the Horizon
On the Horizon Improve Efficiencies Organic Loan & Deposit Growth Invest in Team & Technology Capital Management - $10 million Stock Repurchase 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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