Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — KBW Community Bank Investor Conference 2017
18 slides from Community West Bancshares's conference presentation, Jul 31, 2017
Slide 1: Investor Presentation KBW Community Bank Investor Conference
Investor Presentation KBW Community Bank Investor Conference August 1 - 2, 2017 Jim Ford President & CEO Dave Kinross EVP CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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 s
Slide 3: Experienced Management Team
Experienced Management Team 3 Executive Position Years at CVCY Years of Experience James M. Ford President & CEO 3 37 David A. Kinross EVP, Chief Financial Officer 11 27 Gary D. Quisenberry EVP Commercial & Business Banking 17 32 Lydia E. Shaw EVP Community Banking 10 32 Patrick J. Carman EVP, Chief
Slide 4: Overview
Overview 4 NASDAQ Symbol CVCY Market Capitalization $271.2 Million Institutional Ownership 40% Insider Ownership 14% Total Assets $1.44 Billion Headquarters Fresno, CA Number of Branches 22 Year Established 1980 Strategic Footprint Bakersfield to Sacramento 22 Branches in 9 Contiguous Counties As of
Slide 5: Financial Highlights
Financial Highlights 5 Q2 2017 2016 2015 Total Average Assets $1.44 Billion $1.32 Billion $1.22 Billion Net Income $9.20 Million $15.18 Million $10.96 Million Diluted EPS $0.75 $1.33 $1.00 Net Interest Margin 4.42% 4.09% 4.01% ROA 1.27% 1.15% 0.90% ROE 10.81% 9.84% 8.12% Cash Dividends per share $0.
Slide 6: Attractive Investment Opportunity
Attractive Investment Opportunity 6 As of June 30, 2017 Source: NASDAQ Monthly Closing Price Data 0 5 10 15 20 25 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 Pr ic e CVCY Stock Price
Slide 7: Growing Franchise
Growing Franchise 7 Note: Acquisition of Visalia Community Bank occurred on July 1, 2013 and Acquisition of Sierra Vista Bank occurred on October 1, 2016 853,078 986,924 1,157,483 1,222,526 1,321,007 1,443,074 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2012 2013 2014 2
Slide 8: Strong Net Income and NIM
Strong Net Income and NIM 8 7,520 8,250 5,294 10,964 15,182 9,198 4.21 4.09 4.11 4.01 4.09 4.42 3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2012 2013 2014 2015 2016 Q2 2017 Pe rc en t Th ou sa nd s Net Income Net Interest Margin
Slide 9: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds 9 719,601 848,493 1,006,560 1,065,798 1,144,231 1,253,709 0.23 0.15 0.11 0.09 0.09 0.08 0.00 0.05 0.10 0.15 0.20 0.25 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2012 2013 2014 2015 2016 Q2 2017 Pe rc en t Th ou sa nd s Average Total
Slide 10: Attractive Deposit Mix
Attractive Deposit Mix 10 Non-Interest Bearing 39% Now/Savings 31% Money Market 19% TCDs 11% As of June 30, 2017 Total Deposits = $1.25 Billion
Slide 11: Loan Totals and Yield
Loan Totals and Yield 11 394,575 445,300 533,531 578,899 644,282 752,819 6.06 5.96 5.53 5.27 5.29 5.59 4.80 5.00 5.20 5.40 5.60 5.80 6.00 6.20 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2012 2013 2014 2015 2016 Q2 2017 Pe rc en t Th ou sa nd s Average Total Loans Total Loans L
Slide 12: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio 12 Commercial & Industrial, 11% Agriculture Production & Land, 13% Owner Occupied Real Estate, 24% R/E Construction & Land, 10% Commercial Real Estate, 28% Other Real Estate, 3% Equity Loans and Lines, 8% Consumer & Installment, 4% As of June 30, 2017 Excludes Deferre
Slide 13: Agricultural Loan Commitments
Agricultural Loan Commitments 13 Almonds 23% Table Grapes 6% Open Land 17% Walnuts 10% Wine Grapes 9% Other 10% Tomatoes 2% Raisins 5% Cherries 9% Tree Fruit 3% Cotton 1% Pistachios 4% Citrus 1% Wheat 0% Alfalfa 0% As of June 30, 2017
Slide 14: Conservative Investment Portfolio
Conservative Investment Portfolio 14 US Government Agencies 12% Municipal Securities 40% Agency CMO, MBS & Other Securities 43% Fed Funds Sold 4% Equity Mutual Funds 1% As of June 30, 2017 Total = $545 Million Yield = 3.23% Duration 3.32 Years
Slide 15: Pro Forma Loan Composition (6/30/2017)
$16 $39 $64 $73 $74 $75 $78 $93 $103 $120 $127 2007Y 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 2017Q2 Pro Forma Loan Composition (6/30/2017) 15 Note I: Residential Real Estate includes home equity loans and lines of credit. Note II: Pro Forma loan balance does not include anticipated pur
Slide 16: Pro Forma Deposit Composition (6/30/2017)
$15 $44 $88 $93 $97 $110 $111 $125 $144 $164 $171 2007Y 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 2017Q2 Pro Forma Deposit Composition (6/30/2017) 16 Note: Pro Forma loan balance does not include anticipated purchase accounting adjustments. CAGR: 11% Central Valley Community Bancorp Fols
Slide 17: On the Horizon
On the Horizon 17 Organic Loan Growth Close FOLB Acquisition in Q4 ‘17 Improve Efficiencies Fee Income Improvements Relationship Pricing & Customer Profitability Monitor Agriculture Impacts from Water, Regulation, Labor and Global Pricing
Slide 18: Investing in Relationships
18 Investing in Relationships
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