West Coast Community Bancorp · NASDAQ:WCCB
West Coast Community Bancorp — Investor Presentation (January 2024)
31 slides from West Coast Community Bancorp's investor presentation, January 2024
Slide 1: Investor Presentation January 2024
I nvestor P resentation J anuary 2 0 2 4
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared by Santa Cruz County Bank, (the “Bank”), the wholly owned subsidiary of West Coa st Community Bancorp (traded as "SCZC" on the OTCQX, the "Company"), solely for informational purposes based on its own information, as well as information from pu
Slide 3: Santa Cruz County Bank
Santa Cruz County Bank Community bank headquartered in Santa Cruz, CA Opened in 2004 About 150 employees Krista Snelling joined as CEO on March 1, 2021 $1.8 billion in assets 8 branches Salinas branch (Monterey County) opened January 2023 West Coast Community Bancorp was established as SCCB's bank h
Slide 4: Leadership Team
Leadership Team Krista Snelling Cecilia Situ Jon P. Sisk Angelo DeBernardo, Jr. Mary Anne Carson President & Chief Executive Officer EVP Chief Financial Officer EVP Chief Banking Officer EVP Chief Lending Officer EVP Chief Marketing Officer Banking Experience: 17 years Banking Experience: 16 years B
Slide 5: 2023 Results
2023 Results Balance Sheet Strength Consistent Profitability Strong Earnings Metrics Sound Credit Quality $1.794 Billion $51.2 Million 2.02% 0.53% Total Assets 2023 PTPP Earnings 2023 ROAA NPAs/Assets $1.411 Billion $35.2 Million 19.09% 0.67% Record Total Loans 2023 Net Income 2023 ROATCE NPLs/Loans
Slide 6: Attractive Markets
Attractive Markets County # of Branches Deposit Market Share* Population** Median Household Income** Santa Cruz County 5 15.5% 264K $104K Santa Clara County 1 0.06% 1.9M $154K Monterey County 2 0.78% 433K $91K *Per FDIC data as of June 30, 2023. ** U.S. Census Bureau data 2018-2022 6
Slide 7: Financial Highlights
Financial Highlights ACOINTY BANK
Slide 8: Solid Liquidity Position ($ in 000s)
Solid Liquidity Position ($ in 000s) As of December 31, 2023 As of Strong on-balance- 12/31/2023 12/31/2022 sheet liquidity Cash and due from banks $ 44,395 $ 77,383 position coupled with Unencumbered AFS securities 198,876 263,615 available external Total on-balance-sheet liquidity 243,271 340,998
Slide 9: Investment Portfolio Composition
Investment Portfolio Composition US Gov't sponsored agencies 5% MBS/CMO 13% SBA backed securities 4% AFS Municipal bonds 2% By market value as of December 31, 2023 AFS modified duration of 2.4 years. US Treasury bonds 76% 97% of the carrying value of investment securities classified as available for
Slide 10: Attractive Deposit Mix
Attractive Deposit Mix As of December 31, 2023 Top 10 deposit relationships (excluding government agency deposits that are fully collateralized) represent approximately 13% of total deposits. Several significant new commercial deposit relationships gained in 2023. Growth opportunities include: • New
Slide 11: Deposit Characteristics ($ in thousands)
Deposit Characteristics ($ in thousands) Insured deposits includes fully collateralized balances. Migration of deposits into IntraFi reciprocal deposit network products to maximize depositors' FDIC insurance protection. 11
Slide 12: Strong Deposit Franchise
Strong Deposit Franchise Granular Deposit Account Composition ($ in thousands) As of December 31, 2023 Total Personal Deposits $ 545,920 # of Accounts 11,573 36% Average Balance Per Account $ 47 Total Business Deposits $ 969,170 64% # of Accounts 5,827 Average Balance Per Account $ 166 Personal Busi
Slide 13: Exceptional Credit Culture
Exceptional Credit Culture Nonperforming Loans As of December 31, 2023 ($000) 2018 2019 2020 2021 2022 2023 Nonperforming loans (including 90+ days past due) Nonaccrual Loans to total loans of 0.67%. 1-4 Family $0 $0 $0 $0 $808 $0 CRE & Multifamily 0 0 0 0 0 6,526 Only one nonaccrual loan. Construct
Slide 14: Loans By Type
Loans By Type Outstanding Loans as of December 31, 2023 Q4 2023 loan yield of 6.84%, up 18 bps from 6.66% in Q3 2023. 14
Slide 15: Real Estate Loan Detail
Real Estate Loan Detail Total Weighted Average LTV: 47.31% *Alameda, San Francisco, San Mateo, Contra Costa, Sonoma, Solano, Napa, and Marin Counties Total Real Estate Loans as of December 31, 2023 15
Slide 16: Fixed vs. Variable Rate Loans and Repricing
Fixed vs. Variable Rate Loans and Repricing Outstanding Loans as of December 31, 2023 16
Slide 17: Upcoming CRE Interest Rate Repricing
Upcoming CRE Interest Rate Repricing Outstanding Loans as of December 31, 2023 17
Slide 18: Non-owner-occupied CRE Loans
Non-owner-occupied CRE Loans 25% Decline in Collateral Value Stress Test Results *The only loan with a stressed LTV > 90% is a newly opened hotel in the stabilization period. Upon stabilization, the stressed LTV would be 83%, using the 2023 appraised value. The borrower is maintaining a years' worth
Slide 19: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Assets ($MM) Gross Loans Excl. PPP Incl. Deferred Fees ($MM) Total Deposits ($MM) Tangible Common Equity ($MM) Denotes Lighthouse acquisition 19
Slide 20: Strong Profitability
Strong Profitability Net Income ($MM) Pre-Tax, Pre-Provision Net Income ($MM) Net Interest Income ($MM) Noninterest Expense ($MM) 20
Slide 21: Disciplined Pricing Drives NIM
Disciplined Pricing Drives NIM 21
Slide 22: Disciplined Pricing Drives NIM
Disciplined Pricing Drives NIM Yield on Loans High yielding loan portfolio with excellent credit quality Net Interest Margin Cost of Funds Low-cost Low-cost funding funding base base Peers include all publicly listed banks headquartered in California with total assets $1 billion to $5 billion as of
Slide 23: Robust Capital Position
Robust Capital Position TCE Ratio Tier 1 Ratio Total Capital Ratio Leverage Ratio 23
Slide 24: Per Share Data
Per Share Data Earnings per Share (EPS) Tangible Book Value per Share (TBVPS) 24
Slide 25: Shareholder Focused
Shareholder Focused Superior Price Performance Cash Dividend Total shareholder return includes the price appreciation of the underlyi ng equity i n addition to the divi dends paid. Adjusted for stock dividends and splits 25
Slide 26: Community Reinvestment
Community Reinvestment 2,700+ Hours of Community Service in 2023 Outstanding CRA Rating – Corporate Leadership Through volunteerism and service on boards and committees, we reinvest our time and financials into the communities we serve by supporting local non-profits, service clubs, chambers and cha
Slide 27: Rankings and Recognition
Rankings and Recognition National California BANK PERFORMANCE REPORT (formerly FMC) S&P G LOBAL Ra nked 24th i n overall performance for Q3 2023. Ra nked 6th i n the nation in performance, for banks under $3 bi llion in assets THE FINDLEY REPORTS INC. BAUER FINANCIAL, INC Top ra nking of Super Premi
Slide 28: Appendix
Appendix ACOINTY BANK
Slide 29: Highlights
Highlights C apacity to Grow Profitability • Profitability metrics are best • Consistent organic growth amongst peers • Robust capital levels • Disciplined expense • Attractive markets management Featured Business Lines C lear Vision • SBA lending expertise • New product development • Focus on local
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible ass
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision net income is a non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. We calculate pre-tax, pre-provision net income by excluding income tax and provision for credit losses from net income. Management believes that the exclusion of such
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