Attached files
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| 8-K - 8-K - CENTRAL VALLEY COMMUNITY BANCORP | a8-kirpresentationfigfeb20.htm |
Investor Presentation
FIG Partners CEO Forum
Jan. 31 – Feb. 1, 2018
Jim Ford President & CEO
Dave Kinross EVP CFO
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 strategy and the Company’s plans for future development and operations, are based upon current expectations.
These statements are forward-looking in nature and involve a number of risks and uncertainties. Such risks and uncertainties
include, but are not limited to (1) significant increases in competitive pressure in the banking industry; (2) the impact of changes
in interest rates, a decline in economic conditions at the international, national or local level on the Company’s results of
operations, the Company’s ability to continue its internal growth at historical rates, the Company’s ability to maintain its net
interest margin, and the quality of the Company’s earning assets; (3) changes in the regulatory environment; (4) fluctuations in
the real estate market; (5) changes in business conditions and inflation; (6) changes in securities markets; (7) the expected cost
savings, synergies and other financial benefits for the Folsom Lake Bank (“FLB”) acquisition might not be realized within the
expected time frames or at all; and (8) the other risks set forth in the Company’s reports filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended December 31, 2016. Therefore, the information set
forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the
Company.
Central Valley Community Bancorp will undertake no obligation to revise or publically release any revision or update to the
forward looking statements to reflect events or circumstances that occur after the date on which statements were made.
Experienced Management Team
3
Executive Position
Years at
CVCY
Years of
Experience
James M. Ford President & CEO 4 38
David A. Kinross EVP, Chief Financial Officer 12 28
Gary D. Quisenberry EVP Commercial & Business Banking 18 33
Lydia E. Shaw EVP Community Banking 11 33
Patrick J. Carman EVP, Chief Credit Officer 9 46
Overview
4
NASDAQ Symbol CVCY
Market Capitalization $293.8 Million
Institutional Ownership 42%
Insider Ownership 10%
Total Assets $1.66 Billion
Headquarters Fresno, CA
Number of Branches 24
Year Established 1980
Strategic Footprint Bakersfield to
Sacramento
24 Branches in 9 Contiguous Counties
As of December 31, 2017
Financial Highlights
5
2017 2016 2015
Total Assets $1.66 Billion $1.44 Billion $1.28 Billion
Net Income $14.03 Million $15.18 Million $10.96 Million
Diluted EPS $1.10 $1.33 $1.00
Net Interest Margin 4.41% 4.09% 4.01%
ROA 0.94% 1.15% 0.90%
ROE 7.69% 9.84% 8.12%
Cash Dividends per share $0.24 $0.24 $0.18
Total Cost of Funds 0.08% 0.09% 0.09%
NPAs to Total Assets 0.18% 0.18% 0.19%
Leverage Capital Ratio 9.71% 8.75% 8.65%
Common Equity Tier 1 Ratio 12.90% 12.48% 13.44%
Tier 1 Risk Based Capital Ratio 13.28% 12.74% 13.79%
Total Risk Based Capital Ratio 14.07% 13.72% 15.04%
Attractive Investment Opportunity
6
As of December 31, 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
Growing Franchise
7
Note: Acquisitions of Visalia Community Bank occurred on July 1, 2013, Sierra Vista Bank occurred on October
1, 2016, and Folsom Lake Bank occurred on October 1, 2017
853,078
986,924
1,157,483
1,222,526
1,321,007
1,491,696
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2012 2013 2014 2015 2016 2017
Th
ou
sa
nd
s
Average Total Assets
Strong Net Income and NIM
8
7,520
8,250
5,294
10,964
15,182 14,026
17,561
4.21
4.09
4.11
4.01
4.09
4.41
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
18,000
20,000
2012 2013 2014 2015 2016 2017 2017*
Pe
rc
en
t
Th
ou
sa
nd
s
Net Income Net Interest Margin * Excluding DTA revaluation
Solid Earnings
9
0.88 0.84
0.46
0.90
1.15
0.94
1.18
6.56
6.89
4.06
8.12
9.84
7.69
9.62
-
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
2012 2013 2014 2015 2016 2017 2017*
R
O
A
E
Pe
rc
en
t
R
O
A
A
P
er
ce
nt
ROAA / ROAE
ROAA ROAE * Excluding DTA revaluation
Steady Deposit Growth and Lowest Cost of Funds
10
719,601
848,493
1,006,560
1,065,798 1,144,231
1,284,305
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 2017
Pe
rc
en
t
Th
ou
sa
nd
s
Average Total Deposits
Avg Deposits Cost of Funds
Attractive Deposit Mix
11
Non-Interest Bearing
41%
Now/Savings
29%
Money Market
21%
TCDs
9%
As of December 31, 2017
Total Deposits = $1.43 Billion
Loan Totals and Yield
12
394,575
445,300
533,531 578,899 644,282
790,504
6.06
5.96
5.53
5.27 5.29
5.51
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
900,000
2012 2013 2014 2015 2016 2017
Pe
rc
en
t
Th
ou
sa
nd
s
Average Total Loans
Total Loans Loan Yield
Well Diversified Loan Portfolio
13
Commercial &
Industrial, 11%
Agriculture
Production & Land,
10%
Owner Occupied
Real Estate, 23%
R/E Construction &
Land, 11%
Commercial Real
Estate, 30%
Other Real Estate,
3%
Equity Loans and
Lines, 8%
Consumer &
Installment, 3%
As of December 31, 2017
Excludes Deferred Loan Fees
Total Loans = $901 Million
Agricultural Loan Commitments
14
Almonds
20%
Table Grapes
4%
Open Land
19%
Walnuts
9%
Wine Grapes
6%
Other
12%
Tomatoes
2%
Raisins
6%
Cherries
9%
Tree Fruit
8%
Cotton
1%
Pistachios
3%
Citrus
1%
As of December 31, 2017
Conservative Investment Portfolio
15
US Government
Agencies
11%
Municipal Securities
24%
Agency CMO, MBS &
Other Securities
54%
Fed Funds Sold
10%
Equity Mutual Funds
1%
As of December 31, 2017
Total = $605 Million
Yield = 3.19%
Duration 3.48 Years
On the Horizon
16
Organic Loan Growth
Assimilate FOLB Acquisition in 2018
Improve Efficiencies
Fee Income Improvements
Execute Branch Footprint
Optimization Strategy
Monitor Agriculture Impacts from Water,
Regulation, Labor and Global Pricing
17
Investing in Relationships