West Coast Community Bancorp · NASDAQ:WCCB
West Coast Community Bancorp — Santa Cruz County Bank — Investor Presentation (March 2023)
25 slides from West Coast Community Bancorp's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared by Santa Cruz County Bank, (the “Company” or “SCZC”) solely for informational purposes based on its own information, as well as information from public sources. Certain of the information contained herein may be derived from information provide
Slide 3: Santa Cruz County Bank
Santa Cruz County Bank Community bank headquartered in Santa Cruz, CA Opened in 2004 150+ employees Krista Snelling joined as new CEO on March 1, 2021 $1.7 billion in assets 8 branches Salinas branch (Monterey County) opened January 2023 Merged with Lighthouse Bank in Q4 2019 3
Slide 4: Leadership Team
Leadership Team Mary Anne Carson Krista Snelling Cecilia Situ Jon P. Sisk Angelo DeBernardo EVP Chief Marketing Officer President & Chief Executive Officer EVP Chief Financial Officer EVP Chief Banking Officer EVP Chief Lending Officer Susan Just Jaime Manriquez Maxwell Sinclair Shamara van der Voor
Slide 5: Attractive Markets
Attractive Markets COUNTY # OF BRANCHES DEPOSIT MARKET SHARE POPULATION MEDIAN HOUSEHOLD INCOME Santa Cruz County 5 15.3% 273K $110K Santa Clara County 1 0.93% 2.1M $138K Monterey County 2 0.65% 446K $74K 5
Slide 6: 2022 Results
2022 Results Strong Balance Sheet Positive Trends in Key Continued Strong Credit Consistent Profitability Growth Metrics Quality $1.744 Billion $45.4 Million 1.76% 0.18% Record Total Assets PTPP Earnings ROAA NPAs/Assets $1.265 Billion $30.9 Million 19.19% 0.25% Record Total Loans (Excl. Net Income
Slide 7: Financial Highlights
Financial Highlights ANY BANK
Slide 8: Loan Portfolio
Loan Portfolio HELOC 2% Other Real Estate 1% 51% 2022 taxable equivalent loan yield of 5.44% compared to UBPR peer of SBA and B&I 4.80% 15% PPP PPP loans down from peak of 0% $550MM to $3MM as of 12/31/22 C&I 9% C&D C&I Lines 12% 10% 8
Slide 9: Investment Portfolio (by market value)
Investment Portfolio (by market value) US Gov't sponsored agencies 6% MBS/CMO 11% Modified duration of 2.5 years SBA backed securities 5% 99% of investment securities Municipal bonds 1% classified as available for sale US Treasury bonds 77% 9
Slide 10: Exceptional Credit Culture
Exceptional Credit Culture Nonperforming Loans ($000) 2017 2018 2019 2020 2021 2022 Nonperforming loans (including 90+ Nonaccrual Loans days past due) to total loans of 1-4 Family $0 $0 $0 $0 $0 $808 0.25% compared to peer of 0.36% CRE & Multifamily 0 0 0 0 0 0 Construction 0 0 0 0 0 990 Only four n
Slide 11: Attractive Deposit Mix
Attractive Deposit Mix Top 10 deposit relationships (excluding CDs > $250k gov’t agency deposits that are fully 5% collateralized) represent approx. 12.5% Money Market CDs < $250k 24% 2% of total deposits Core deposits as percent of total assets Savings above peer Interest Bearing Demand 9% • 79.45%
Slide 12: Diverse Commercial Deposit Portfolio (by industry)
Diverse Commercial Deposit Portfolio (by industry) Retail Trade Educational Services Wholesale Trade 4% 4% Accommodation and Food Services 4% Finance and Insurance 5% 4% Agriculture, Forestry, Fishing and Hunting 3% Arts, Entertainment, and Recreation 5% Other / Not Specified 15% Manufacturing 6% Pr
Slide 13: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Assets ($MM) Gross Loans Excl. PPP ($MM) $1,265 $1,701 $1,744 $1,109 $1,423 $917 $758 $1,071 $455 $488 $227 $630 $662 $322 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y Total Deposits ($MM) Tangible Common Equity ($MM) $1,496 $1,531 $15
Slide 14: Strong Profitability
Strong Profitability Net Income ($MM) Pre-Tax, Pre-Provision Net Income ($MM) 1.75% 1.76% $45.4 $36.9 $21.3 2.55% 1.56% $17.6 2.36% 2.28% $27.5 $11.4 $12.3 $30.9 2.58% $16.6 $17.9 2.29% $6.8 $14.4 2.12% 1.36% 1.32% 1.11% 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y Net Inc
Slide 15: Disciplined Pricing Drives NIM
Disciplined Pricing Drives NIM Yield on Loans Cost of Deposits High yielding loan portfolio with excellent credit quality Low-cost deposit base 5.81% 5.87% 0.58% 5.44% 5.42% 0.38% 5.39% 5.46% 0.31% 4.88% 0.28% 4.72% 5.15% 5.04% 0.34% 4.73% 0.16% 4.76% 0.13% 0.23% 0.24% 0.14% 0.13% 0.12% 2017Y 2018Y
Slide 16: Robust Capital Position
Robust Capital Position TCE Ratio Tier 1 Ratio UBPR peer median 11.69% (all banks $1-3B) 15.01% 14.34% 13.45% 13.62% 13.69% 10.34% 10.03% 9.90% 11.61% 9.66% 9.44% 9.86% 10.20% 9.09% 9.50% 9.23% 8.07% 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y Total Capital Ratio Leverage
Slide 17: Per Share Data
Per Share Data Earnings per Share (EPS) Tangible Book Value per Share (TBVPS) $3.63 $20.04 $18.50 $16.50 $2.50 $14.38 $2.13 $2.05 $2.07 $12.72 $10.75 $1.27 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 17
Slide 18: Shareholder Focused
Shareholder Focused Superior Price Performance Cash Dividend 50% $0.15 40% 36.0% $0.13 $0.11 Relative Price Performance (%) 30% $0.09 $0.06 $0.06 $0.06 20% $0.05 2.2% 10% 0% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 -10% SCZC S&P 500 Note: Market data as of December 31, 2022 18
Slide 19: Community Reinvestment
Community Reinvestment 2,400+ Hours of Community Service in 2022 – 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 c
Slide 20: Rankings and Recognition
Rankings and Recognition NATIONAL CALIFORNIA S & P GLOBAL FINANCIAL MANAGEMENT CONSULTING Ranked 6th in the nation in performance for banks under $3 (FMC) GROUP billion in assets. Ranked 13th out of 127 California Banks for 2022 overall financial performance. BAUER FINANCIAL, INC Rated 5-Star, Super
Slide 21: Investment Highlights
Investment Highlights Capacity to Grow Profitability • Profitability metrics are best • Consistent organic growth amongst peers • Robust capital levels • Disciplined expense • Attractive markets management Featured Business Lines Clear Vision • SBA lending expertise • New product development • Focus
Slide 22: Appendix
VA Appendix SANTA CRUZ COUNTY BANK your money where your lifeis. 22
Slide 23: 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 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation For periods presented below, efficiency ratio is an non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. This figure represents the ratio of non-interest expense less other real estate owned operations and amortization of intangible assets expense to the sum
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision net income is an 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
Santa Cruz County Bank — Investor Presentation (March 2023) on 6ix