Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Janney CEO Virtual Forum 2021
21 slides from Community West Bancshares's conference presentation, Feb 4, 2021
Slide 1: Investor Presentation Janney CEO Virtual Forum
Investor Presentation Janney CEO Virtual Forum February 4, 2021 Jim Ford President & CEO Dave Kinross EVP CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Certain matters discussed in this report 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 bu
Slide 3: Experienced Management Team
Experienced Management Team 3 Executive Position Years at CVCY Years of 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 A. Luis EVP, Chief Credit Officer 1 35 Ken Ramos EVP, Market Executive – So
Slide 4: Overview
Overview 4 NASDAQ Symbol CVCY Market Capitalization $186 Million Institutional Ownership 47% Insider Ownership 14% Total Assets $2.00 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento 20 Branches in 9 Contiguous Counties As of D
Slide 5: Financial Highlights
Financial Highlights 5 2020 2019 2018 Total Assets $2.00 Billion $1.60 Billion $1.54 Billion Net Income $20.35 Million $21.44 Million $21.29 Million Diluted EPS $1.62 $1.59 $1.54 Net Interest Margin 3.87% 4.51% 4.44% ROAA 1.11% 1.36% 1.35% ROAE 8.85% 9.39% 10.07% Cash Dividends per share $0.44 $0.43
Slide 6: COVID-19 Responses
COVID-19 Responses 6 • Implemented Pandemic Plan mid February 2020 to address COVID-19 and escalated activities into early March 2020 • Our Credit teams began monitoring clients via direct communication, checklists we deployed to aid in monitoring loans • In Q2 we reviewed 70% of the loan portfolio,
Slide 7: Attractive Investment Opportunity
Attractive Investment Opportunity 7 As of Dec. 31, 2020 Source: NASDAQ Monthly Closing Price Data 0 5 10 15 20 25 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 Pr ic e CVCY Stock Price Dividend Payout Ratio - 27.2% Dividend Yield - 3.94%
Slide 8: Growing Franchise
Growing Franchise 8 Note: Acquisitions of Sierra Vista Bank occurred on October 1, 2016, and Folsom Lake Bank occurred on October 1, 2017 1,222,526 1,321,007 1,491,696 1,577,410 1,574,089 1,832,987 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2015 201
Slide 9: Strong Net Income and NIM
Strong Net Income and NIM 9 10,964 15,182 14,026 21,289 21,443 20,347 4.01 4.06 4.40 4.44 4.51 3.87 3.40 3.60 3.80 4.00 4.20 4.40 4.60 0 5,000 10,000 15,000 20,000 25,000 2015 2016 2017 2018 2019 2020 Pe rc en t Th ou sa nd s Net Income Net Interest Margin
Slide 10: Solid Earnings
Solid Earnings 10 0.90 1.15 0.94 1.35 1.36 1.11 8.12 9.84 7.69 10.07 9.39 8.85 - 2.00 4.00 6.00 8.00 10.00 12.00 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 2015 2016 2017 2018 2019 2020 RO A E Pe rc en t RO A A P er ce nt ROAA / ROAE ROAA ROAE
Slide 11: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds 11 1,065,798 1,144,231 1,284,305 1,333,754 1,295,780 1,568,194 0.09 0.09 0.08 0.09 0.15 0.09 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2015 2016 2017 2018 2019 2020 P
Slide 12: Attractive Deposit Mix
Attractive Deposit Mix 12 Non-Interest Bearing 48% Now/Savings 27% Money Market 20% TCDs 5% As of December 31, 2020 Total Deposits = $1.72 Billion
Slide 13: Loan Totals and Yield
Loan Totals and Yield 13 * Loan Yield 2020 w/o PPP Loans 5.32% 578,899 644,282 790,504 908,419 928,560 1,053,450 5.27 5.29 5.51 5.50 5.54 4.94 4.60 4.70 4.80 4.90 5.00 5.10 5.20 5.30 5.40 5.50 5.60 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2015 2016 2017 2018 2019 2020 Pe rc en t Th ou s
Slide 14: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio 14 Commercial & Industrial, 25% Agriculture Production & Land, 10% Owner Occupied Real Estate, 19% R/E Construction & Land, 5% Commercial Real Estate, 31% Other Real Estate, 3% Equity Loans and Lines, 5% Consumer & Installment, 3% As of December 31, 2020 Excludes Defe
Slide 15: Agricultural Loan Commitments
Agricultural Loan Commitments 15 Almonds 22% Table Grapes 2% Open Land 11% Walnuts 4% Wine Grapes 2% Other 15% Row Crops 3% Tomatoes 10% Raisins 6% Cherries 2% Cotton 2% Tree Fruit 13% Pistachios 3% Citrus 5% As of December 31, 2020 Total Ag Line Commitments $142.2 Million
Slide 16: Non Performing Loans
Non Performing Loans 16 * ALLL/Loans 2020 w/o PPP and acquired loans 1.65% 2,413 2,542 2,945 2,740 1,693 3,278 1.61 1.23 0.97 0.99 0.97 1.17 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2015 2016 2017 2018 2019 2020 Pe rc en t Th ou sa nd s Non Performing
Slide 17: Special Mention Loans
Special Mention Loans 17 28,719 29,911 21,908 26,254 28,183 36,406 4.80 3.95 2.43 2.86 2.99 3.30 - 1.00 2.00 3.00 4.00 5.00 6.00 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2015 2016 2017 2018 2019 2020 Pe rc en t Th ou sa nd s Special Mention Loans SM Loans/Gross Loans
Slide 18: Substandard Loans
Substandard Loans 18 31,764 49,464 49,998 28,394 33,838 36,136 5.31 6.54 5.55 3.09 3.59 3.28 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 - 10,000 20,000 30,000 40,000 50,000 60,000 2015 2016 2017 2018 2019 2020 Pe rc en t Th ou sa nd s Substandard Loans Sub Loans/Gross Loans
Slide 19: Conservative Investment Portfolio
Conservative Investment Portfolio 19 US Government Agencies 0% Private Label Mortgage & Asset Backed 11% Municipal Securities 37% Agency CMO, MBS & Other Securities 29% Fed Funds Sold 5% Equity Mutual Funds 2% Corporate Debt 1% As of December 31, 2020 Total = $754 Million Yield = 2.33% Effective Dur
Slide 20: On the Horizon
On the Horizon 20 Organic Loan & Deposit Growth Improve Efficiencies Invest in Team & Technology Monitor COVID-19 Impacts on Customers and Local Economy Proactively Respond to COVID-19 Related Borrower Issues
Slide 21: Investing in Relationships
21 Investing in Relationships
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