EXHIBIT 99.1
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Annual Shareholders’ Meeting |
.lime 19,2008 |
Presented By: Tom Hawker |
President & CEO of Capital Corp of the West |
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In addition to historical information, this presentation includes certain |
forward looking statements regarding events and trends which may affect |
the Company’s future results. Such statements are subject to risks and |
uncertainties that could cause the Company’s actual results to differ |
materially. These risks and uncertainties include those related to the |
economic environment, particularly the region where the Company |
operates, local weather conditions, competitive products and |
pricing, general interest rate changes and the fiscal and monetary policies |
of the US government, credit risk management, regulatory actions and |
other risks and uncertainties discussed from time to time in the |
Company’s public securities filing. |
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HE 181119 |
WE ARE CLEARLY DISAPPOINTED IN OUR PERFORMANCE. SO, WHAT CAUSED THE 2007 Q4 SIGNIFICANT WRITE-DOWN? |
*>major impact: significant divestiture by one builder in merced county of developed lots in december2007 |
O NO ADDITIONAL SALES SINCE DECEMBER TO MITIGATE VALUATION |
*>lesser impact decline inSFRreal estate values in all central valley counties. (up to80%+declines!)<•brought about by over-building;•:*sub-prime loans,•I*speculation and,*:*heavy foreclosures: merced county at epicenter |
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HE 181119 |
*:*following an outside loan review ordered by |
management, initial loss provision prepared and utilized in originally filed call report. |
*:*in january‘08the we begun receiving appraisals with numbers based on merced december land sales.*>resulted in complete review and revision of original year end numbers•:*process was assisted by outside parties to make effort to get best |
EVALUATION POSSIBLE. |
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why did it take so much time to get out revised numbers? |
*:*need to evaluate impact on real estate related portfolio resulted in bringing in recognized outside loan review specialists to assist and provide recommendations |
*:•resulted in review of close to70%of loan portfolio with additional loan reviews in q2 |
*>resulting reserves believed, subject to future risk factors as described in the annual report (1 0-k), to be representative of portfolio risk known at the time of issuance of financial statements |
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*:*future growth built on strong deposit market share and acquisitions: |
*bay view funding **california stockmen’s bank * |
<*economic environmentisnot expected to improve quickly |
*real estate impact on local/regional economies |
<* WITH SLOWER GROWTH, EMPHASIS MUST BE ON LOAN LOSS MITIGATION, EXPENSE CONTROL AND FEE GENERATION. |
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value creation proposition driven by: |
*> LOW COST DEPOSIT FRANCHISE |
*> LENDING ACTIVITIES SUPPORTED BYA PRESENCE IN: <*san francisco/san jose*:*sacramento/stockton*:*modesto/merced/fresno/visalia |
*>diversified by both geography and product*>branch network: bay area and valley |
*>full suite of lending products along with fee income products*t*addition of asset based lending and factoring can help reduce already low |
FOCUS ON CONSTRUCTION LENDING |
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whatisthe plan to insure adequate capital? |
*>clearly indentifyand reserve for problem loans |
*:*aggressive management of problem loans |
*>attaining and maintaining a level beyond “well capitalized” |
*hiredKBWto assistusin evaluating our alternatives *:*building a “capital plan” **sourcing additional capital*<* add further strength to balance sheet for future economic challenges |
*>while board and management are currently engaged in this process it is not appropriate to discuss further |
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*>expense controliscritical |
*no further de novo branching is currently contemplated |
*maintain focus of incentives on low cost deposits *:*improve capital ratios |
*pursue additional non-interest income |
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0 LOCATIONS ^nbTEi* |
0 NEW LOCATIONS-^^mhmwek, |
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SACRAMENTO |
STOCKTON ^ — |
SAN FRANCISCO [ EjSasta |
MODESTO & i.-r.fpi’M’i.tji / \ — |
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§ LOCATIONS |
^ NEW LOCATIONS ^ |
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·County Bank has the highest market share in Merced County with close to 42% of all deposit dollars. |
·As of June 30, 2007, County Bank ranks #5 of 41 institutions in six county markets with 7.29% market share. |
County 6/2006 6/2007 Fresno 1.57% 2.02% Madera 4.16% 3.56% Mariposa 46.06% 44.17% Merced 43.46% 41.47% Stanislaus 4.75% 4.86% Tuolumne 3.71% 3.98% TOTAL 7.50% 7.29% — |
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7.50% |
7.29% |
6.46% 6.50%^x^’ 6.13%^r^ 5.09%^^^^ IIIIT^ iI 2001 2002 2003 2004 2005 2006 2007 |
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Assets $2,109 Million +7.60% $2,076 Million +10.00% Loans $1,495 Million +22.04% $1,482 Million +21.16% Deposits $1,675 Million +3.71% $1,631 Million +5.07% Earnings -$3.616 Million NM* $1.490 Million -39.16% Shares Outstanding 10.79 Million +0.87% 10.81 Million +0.42% Book value $13.06 -1.88% $13.12 -1.83% |
*Not Meaningful |
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Number of Branches by Year |
* 10 new branches ironi the Slockmeirs acquisition |
15 |
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2002 2003 2004 2005 2006 2007 200S |
16 |
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2002 2003 2004 2005 2006 2007 2008 Ql |
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1,600,000 -f _^^ 2002 2003 2004 2005 2006 2007 2008 |
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Loans (In Millions) |
$1,495 $1,502 $532$634$764?^ 31,069 |
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2002 2003 2004 2005 2006 2007 2008 Ql |
Net Charge-Offs |
* .. ^031%0.19% 0-25% Q.Q9%^^^^V1W> —— —— —— —— — |
n 24% Q.26?4 ~n?po- ^~^^^ ‘< Q.21?6 Q.28?4 |
—— —— —— —— —— —— — |
0.18% 0.16% 014% 2002 2003 2004 2005 2006 2007 2008 Ql |
-*-County Bank |
-"-Uniform Bank Performance Report Peers $1-3B Banks as Established by the FDIC |
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Non-Performing Loans (% of Total Loans) |
3 63*X 5.39% 0-91960.3^0-52%Q5Q% ^ 0.1^%^^^^ ..... ‘ —— —— —— -— —— — 20022003 2004 2005 2006 2007 2008 Ql |
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Net Interest Margin |
4’5^ .. 4’5f% 4.49% .. i$9% .. 4^ ..41J)%4.;9% —— -— —— — |
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2002 2003 2004 2005 2006 2007 2008 Ql |
Cost of Interest Bearing Deposits |
2.15% 2.55% 3—£5% 2.42% —— — |
« ........... _J.24%1-06% 1.4596^ ..... « |
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2002 2003 2004 2005 2006 2007 2008 Ql |
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12% |
10% — ^^ |
2001 2002 2003 2004 2005 2006 2007 2008 Q1 |
*Prime rate staled using the end of period rate, while loan yields are derived by using YTD average yield |
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Non-Interest Income (In Thousands) |
2002 2003 2004 2005 2006 2007 |
2008 Ql: Service Charges $2,240 BOLI CSV Irrrease733 |
OLher Nun-lrileresL Int1,615 i^^RRj Total Nnn-lnt Income $4,f5SS |
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Non-Interest Expense (In Thousands) |
2002 2003 2004 2005 2006 2007 |
2UU8 Ql: ba la ry/Benefits$10,187 |
Occupancy/PFE3,592 |
Professional Fees1.57S |
Marketing/Do nd I ions838 |
Other Non-lntExpa,5Ej9 |
ilTBtftffrffri} Total l\on-lnt Exp $13,7Ej4 — |
24 |
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2002 2003 2004 2005 2006 2007 |
2008 Q1: 79.91% |
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Net Income (In Thousands) |
10,428 13.640 ....... 12^22^^^^^ 22,64B^ |
, ....... ^! . .. , ......... , ......... , .. ^***s"-*^Rfi1fi) —— — |
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2002 2003 2004 2005 2006 2007 |
ROE |
14.94% 16.43%162Q% 18f54%16-g5% —— —— —— —— — |
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2002 2003 2004 2005 2006 2007 |
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EPS (Diluted) |
1.02 ............ L30 .. 1.46 ....... if2 2-°T7^ 2002 2003 2004 2005 2006 2007 |
EPS Growth |
27.50%27.45% ^ ^% _, ^ —— —— —— -— —— —— — |
2002 2003 2004 2005 2006 “^^-2qp7 “Not Meaningful ^^^^^^^^^^^^^^^^^^^^1 27 |
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m ^ib^hIS^Hl^l B J^nKS |
*> it has been an honor and privilege to be steward over ccow/county bank over the last17years |
*> WE HAVE BEEN BLESSED AS WE’VE CREATED THE PREMIER VALLEY BASED FINANCIAL INSTITUTION |
<* MY ONLY REGRET IS TO BE LEAVING WITH SO MUCH LEFT TO BE ACCOMPLISHED |
*> I WISH THE BOARD, MANAGEMENT AND ALL OUR TEAM MEMBERS GOD’S RICHEST BLESSINGS AS THEY MOVE THE COMPANY FORWARD |
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