Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2018)
55 slides from Cvb Financial's investor presentation, Jul 31, 2018
Slide 1: July/August 2018
July/August 2018 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plans and expe
Slide 3: CVB Financial Corp. at a glance
Total Assets: $8.1 Billion Gross Loans: $4.8 Billion Total Deposits (Including Repos):$6.9 Billion Total Equity: $1.1 Billion Source: Q2 2018 earnings release & company filings CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California.
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 33 Years 12 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 23 Years 2 Years Dave F. Farnsworth Executive Vice President Chief Credit Officer 33 Years 2 Years David C.
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 6 Years 61 George Borba Jr. - Vice Chairman 6 Years 50 Steve Del Guercio 6 Years 56 Kristina Leslie 3 Years 53 Hal Oswalt 4 Years 70 Anna Kan 2 Years 44 Rod Guerra 1 Year 62 Chris Myers - CEO 12 Years 56
Slide 6: Who is CVB Financial Corp.?
CVB Financial Corp. Who is CVB Financial Corp.?
Slide 7: Largest Bank Holding Companies in CA
Largest Bank Holding Companies in CA Source: SNL Financial (1) Bank only, no holding company. (2) Pro Forma total assets for the proposed merger with Community Bank. Excludes purchase accounting and other merger-related adjustments. Rank Institution Total Assets (MRQ) (6/30/18) 1 Wells Fargo & Compa
Slide 8: Bank Accomplishments & Ratings
*As ranked among domestic banks with $5 to $50 billion in assets Bank Accomplishments & Ratings 165 Consecutive Quarters of Profitability 115 Consecutive Quarters of Cash Dividends Ranked #1 Forbes, 2016 Best Banks in America (January 2016) Ranked #2 Forbes, 2017 Best Banks in America (January 2017)
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 51 Business Financial Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers CitizensTrust
Slide 11: Deposits and Loans
CVB Financial Corp. Deposits and Loans
Slide 12: Total Deposits
*Interest-Bearing Deposits includes REPOs Total Deposits* (000’s) 5 Year CAGR 5.4% 5 Year CAGR 9.6% 61%
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q2 2018 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 14: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (6/30/17) Total Deposits (6/30/18) Los Angeles County 18 $2,574,589 $2,345,011 Inland Empire (Riverside & San Bernardino Counties) 9 $2,099,044 $2,080,681 Central Valley 8 $1,205,843 $1,146,457 Orange County 9 $1,052,513 $1,025,962 Central Coast
Slide 15: Total Loans
Total Loans* (000’s) *Excludes deferred loan fees, discount on PCI loans, and allowance for loan losses Includes covered and non-covered loans for all periods presented
Slide 16: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q2 2018 earnings release & company reports
Slide 17: Loans by Region
(000’s) # of Center Locations Average Loans per Location Total Loans* (6/30/18) Los Angeles County 18 $91,884 $1,653,916 Central Valley 8 $124,917 $999,336 Inland Empire (Riverside & San Bernardino Counties) 9 $84,389 $759,503 Orange County 9 $66,704 $600,335 Central Coast 5 $70,876 $354,382 San Die
Slide 18: Credit Quality
CVB Financial Corp. Credit Quality
Slide 19: Non-Performing Assets
Non-Performing Assets* (000’s) *Non-Covered assets | Starting in the 4th quarter of 2014, covered and non-covered assets are combined
Slide 20: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 21: Loans: Net Charge-Offs
Loans: Net Charge-Offs* (000’s) - *Non-Covered | Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 22: Profits
CVB Financial Corp. Profits
Slide 23: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge $13.2 million additional tax exp. due to DTA revaluation
Slide 24: Net Interest Margin
Net Interest Margin Normalized* *Normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired)
Slide 25: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 26: Efficiency Ratio
Efficiency Ratio $13.9 million FHLB prepayment charge
Slide 27: Noninterest Expense as a % of Average Assets
Noninterest Expense as a % of Average Assets $13.9 million FHLB prepayment charge
Slide 28: Capital
CVB Financial Corp. Capital
Slide 29: Capital Ratios
Capital Capital Ratios Adequately Capitalized Ratio Well-Capitalized Ratio March 31, 2018* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 17.3% Total Risk-based Capital Ratio 8.0% 10.0% 18.4% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.9% Tier 1 Leverage Ratio 4.0% 5.0% 12.2% * CVB Financial Corp. –
Slide 30: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 31: Securities Portfolio
$1.93 Billion *Available For Sale Yield on securities portfolio = 2.48% for the 2nd Quarter 2018 Securities Portfolio* - $2.7 Billion $772.5 Million *Held to Maturity Source: Q2 2018 earnings release | Yield on securities represents the fully taxable equivalent
Slide 32: Available For Sale Securities Mark-to-Market
*Available For Sale Securities Only Securities Portfolio* $1.93 Billion (000’s) ($34,257) Mark-to-Market (Pre-tax)
Slide 33: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 34: Our Vision
Our Vision Citizens Business Bank will strive to become the premier financial services company operating throughout the state of California, servicing the comprehensive financial needs of successful small to medium sized businesses and their owners.
Slide 35: Target Customer
Target Customer The best privately-held and/or family-owned businesses throughout California Annual revenues of $1-300 million Top 25% in their respective industry Full relationship banking Build 20-year relationships
Slide 36: Three Areas of Growth
Three Areas of Growth De Novo San Diego (2014) Oxnard (2015) Santa Barbara (2015) San Diego (2017) Stockton (Pending) Acquisitions American Security Bank (2014) County Commerce Bank (2016) Valley Business Bank (2017) Community Bank (Pending)
Slide 37: Acquisition Strategy
Acquisition Strategy Target size: $200 million to $4 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) --Banks-- --Banking Teams-- In-market & ‘new’ markets
Slide 38: 2018 'Critical Few'
2018 ‘Critical Few’ Grow Loans Through Relationship Banking Strategy Grow Core Deposits Execute on Community Bank Integration Prepare for $10 Billion and Beyond Fraud Prevention
Slide 39: Five Core Values
Five Core Values Financial Strength 1 Superior People 2 Customer Focus 3 Cost-Effective Operation 4 Having Fun 5
Slide 40: Merger with Community Bank
CVB Financial Corp. Merger with Community Bank
Slide 41: Community Bank Overview
Community Bank Overview Financial data as of or for the three months ended March 31, 2018. Excludes unused loan commitments. Company Overview Loan and Deposit Composition(1) Financial Highlights(1) Founded in 1945 Headquartered in Pasadena, CA 16 office locations throughout the greater Los Angeles a
Slide 42: Transaction Summary
Transaction Summary Based on the fixed exchange ratio, fixed cash amount and CVBF’s closing stock price of $23.60 on 2/26/2018. Consideration 9.4595 fixed exchange ratio and $56.00 per share in cash Approximately 30.0 million CVBF shares issued to CYHT and $177.5 million in cash Approximately 80% st
Slide 43: Key Transaction Terms & Assumptions
Key Transaction Terms & Assumptions(1) Estimated financial impact is presented solely for illustrative purposes based on consensus analyst estimates for CVBF and preliminary estimates for CYHT. Includes estimated purchase accounting and other merger-related adjustments. Cost Savings Transaction Expe
Slide 44: Two organizations that have stood the test of time
Two organizations that have stood the test of time Similar Cultures – Competitors become partners All-Star Team of Employees – Deeper Bench Expanded Product Offering Enhanced Asset Mix Enhanced Funding Mix Geographic Overlap – Anticipated Cost Synergies Combination of Historic Community Banks
Slide 45: Transaction Rationale
Transaction Rationale Complementary business banking models with similar core values and corporate cultures Long history for each institution through multiple economic cycles Combined company of approximately $12 billion in total assets pro forma Efficiency and scale is expected to result in better
Slide 46: Appendix – Other 'CVBF' Information
Appendix – Other ‘CVBF’ Information
Slide 47: 'CVBF' Assets & Liabilities
‘CVBF’ Assets & Liabilities 6/30/18 Liabilities - $7.0 Billion 6/30/18 Assets - $8.1 Billion *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit **Includes Customer Repurchase Agreem
Slide 48: 'CVBF' Yield on Securities vs. Yield on Loans
‘CVBF’ Yield on Securities vs. Yield on Loans * Includes Discount Accretion on PCI loans **Includes Available for Sale and Held to Maturity, TE
Slide 49: Appendix — Merger Related
CVB Financial Corp. Appendix — Merger Related
Slide 50: Multiples and Financial Impact
Multiples and Financial Impact(1) Estimated financial impact is presented solely for illustrative purposes based on consensus analyst estimates for CVBF and preliminary estimates for CYHT. Includes estimated purchase accounting and other merger-related adjustments. Utilizing the fixed exchange ratio
Slide 51: Pro Forma Profitability and Capital
Pro Forma Profitability and Capital(1) Estimated financial impact is presented solely for illustrative purposes based on consensus analyst estimates for CVBF and preliminary estimates for CYHT. Includes estimated purchase accounting and other merger-related adjustments. TCE / TA Total Risk-Based Cap
Slide 52: Asset Composition (3/31/2018)
Asset Composition (3/31/2018) Note: Financial data as of or for the three months ended March 31, 2018. Excludes purchase accounting and other merger-related adjustments. CVB Financial Corp. Pro Forma(1) Community Bank Total Assets: $8.4 billion Total Assets: $3.7 billion Total Assets: $12.1 billion
Slide 53: Loan Composition (3/31/2018)
Loan Composition (3/31/2018) Note: Financial data as of or for the three months ended March 31, 2018. Excludes purchase accounting and other merger-related adjustments. CVB Financial Corp. Pro Forma(1) Community Bank Gross Loans: $4.8 billion Yield on Loans: 4.67% Gross Loans: $2.8 billion Yield on
Slide 54: Deposit Composition (3/31/2018)
Deposit Composition (3/31/2018) Note: Financial data as of or for the three months ended March 31, 2018. Excludes purchase accounting and other merger-related adjustments. CVB Financial Corp. Pro Forma(1) Community Bank Total Deposits: $6.7 billion Cost of Deposits: 0.09% Total Deposits: $2.8 billio
Slide 55: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com