Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Virtual KBW Community Bank Investor Conference 2021
20 slides from Community West Bancshares's conference presentation, Aug 3, 2021
Slide 1: Virtual KBW Community Bank Investor Conference
Investor Presentation 2021 Virtual KBW Community Bank Investor Conference August 3 - 5, 2021 Jim Ford Pres. & CEO James Kim EVP COO 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 7 41 David A. Kinross EVP, Chief Financial Officer 15 31 James J. Kim EVP, Chief Operating Officer 4 21 Patrick A. Luis EVP, Chief Credit Officer 1 36 Ken Ramos EVP, Market Executive – So
Slide 4: Overview
Overview 4 NASDAQ Symbol CVCY Market Capitalization $248 Million Institutional Ownership 47% Insider Ownership 14% Total Assets $2.28 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento 20 Branches in 9 Contiguous Counties As of J
Slide 5: Financial Highlights
Financial Highlights 5 2021 Q2 YTD 2020 2019 Total Assets $2.28 Billion $2.00 Billion $1.60 Billion Net Income $15.04 Million $20.35 Million $21.44 Million Diluted EPS $1.20 $1.62 $1.59 Net Interest Margin 3.67% 3.87% 4.51% ROAA 1.39% 1.11% 1.36% ROAE 12.21% 8.85% 9.39% Cash Dividends per share $0.1
Slide 6: Attractive Investment Opportunity
Attractive Investment Opportunity 6 As of June 30, 2021 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 1/1/2021 Pr ic e CVCY Stock Price Dividend Payout Ratio - 20.0% Dividend Yield - 2.38%
Slide 7: Growing Franchise
Growing Franchise 7 1,321,007 1,491,696 1,577,410 1,574,089 1,832,987 2,166,196 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2016 2017 2018 2019 2020 2021 Q2 YTD Th ou sa nd s Average Total Assets
Slide 8: Strong Net Income and NIM
Strong Net Income and NIM 8 15,182 14,026 21,289 21,443 20,347 15,042 4.06 4.40 4.44 4.51 3.87 3.67 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0 5,000 10,000 15,000 20,000 25,000 2016 2017 2018 2019 2020 2021 Q2 YTD Pe rc en t Th ou sa nd s Net Income Net Interest Margin
Slide 9: Solid Earnings
Solid Earnings 9 1.15 0.94 1.35 1.36 1.11 1.39 9.84 7.69 10.07 9.39 8.85 12.21 - 2.00 4.00 6.00 8.00 10.00 12.00 14.00 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 2016 2017 2018 2019 2020 2021 Q2 YTD RO AE P er ce nt RO AA P er ce nt ROAA / ROAE ROAA ROAE
Slide 10: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds 10 1,144,231 1,284,305 1,333,754 1,295,780 1,568,194 1,885,265 0.09 0.08 0.09 0.15 0.09 0.06 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 2,000,000 2016 2017 2018 2019 2
Slide 11: Attractive Deposit Mix
Attractive Deposit Mix 11 Non-Interest Bearing 45% Now/Savings 28% Money Market 22% TCDs 5% As of June 30, 2021 Total Deposits = $1.98 Billion
Slide 12: Loan Totals and Yield
Loan Totals and Yield 12 644,282 790,504 908,419 928,560 1,053,450 1,077,455 5.29 5.51 5.50 5.54 4.94 5.11 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 2016 2017 2018 2019 2020 2021 Q2 YTD Pe rc en t Th ou sa nd s Average Total Loans To
Slide 13: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio 13 Commercial & Industrial, 20% Agriculture Production & Land, 11% Owner Occupied Real Estate, 19% R/E Construction & Land, 6% Commercial Real Estate, 33% Other Real Estate, 3% Equity Loans and Lines, 5% Consumer & Installment, 3% As of June 30, 2021 Excludes Deferred
Slide 14: Agricultural Loan Commitments
Agricultural Loan Commitments 14 Almonds 25% Table Grapes… Open Land 11% Walnuts 3% Wine Grapes 2% Other 14% Row Crops 2% Tomatoes 10% Raisins 5% Cherries 2% Cotton 2% Tree Fruit 13% Pistachios 3% Citrus 6% As of June 30, 2021 Total Ag Line Committments $160.8 Million
Slide 15: PPP Loans
PPP Loans 15 PPP Loan Vintages ($ in 000s) # of Loans Amount Net Unearned Fees Round 1 - 2020 133 $ 31,407 $ 425 Round 2 - 2021 497 78,095 2,665 Total 630 $ 109,502 $ 3,090 PPP Loan Size ($ in 000s) # of Loans Amount Up to $150,000 449 $ 22,090 $150,001 to $500,000 136 36,020 $500,001 to $1,000,000
Slide 16: Non Performing Loans
Non Performing Loans 16 2,542 2,945 2,740 1,693 3,278 2,035 1.23 0.97 0.99 0.97 1.17 0.98 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2016 2017 2018 2019 2020 2021 Q2 YTD Pe rc en t Th ou sa nd s Non Performing Assets ALLL/Loans
Slide 17: Special Mention Loans
Special Mention Loans 17 29,911 21,908 26,254 28,183 36,406 18,710 3.95 2.43 2.86 2.99 3.30 1.75 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2016 2017 2018 2019 2020 2021 Q2 YTD Pe rc en t Th ou sa nd s Special Mention Loans SM Loans/Gross
Slide 18: Substandard Loans
Substandard Loans 18 49,464 49,998 28,394 33,838 36,136 32,938 6.54 5.55 3.09 3.59 3.28 3.08 - 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 2016 2017 2018 2019 2020 2021 Q2 YTD 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%US Treasury Securities 2% Private Label Mortgage & Asset Backed 17% Municipal Securities 45% Agency CMO, MBS & Other Securities 22% Fed Funds Sold 8% Corporate Debt 5% Equity Mutual Funds 1% As of June 30, 2021 Total = $1.04 Billion Yield
Slide 20: Investing in Relationships
20 Investing in Relationships
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