Slide 1: CVB Financial Corp. August 2016
CVB Financial Corp. August 2016
Slide 2: Safe Harbor
Safe Harbor 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 expectations regard
Slide 3: CVB Financial Corp. (CVBF) at a glance
Total Assets: $8.3 Billion Gross Loans: $4.2 Billion Total Deposits (Including Repos):$7.2 Billion Total Equity: $991 Million Source: Q2 2016 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 32 Years 10 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 21 Years New Dave F. Farnsworth Executive Vice President Chief Credit Officer 32 Years New David C. Harvey E
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 4 Years 59 George Borba Jr. - Vice Chairman 3 Years 48 Steve Del Guercio 4 Years 54 Robert Jacoby 11 Years 74 Kristina Leslie 1 Year 51 Hal Oswalt 2 Years 68 Chris Myers - CEO 10 Years 54
Slide 6: Who is CVB Financial Corp.?
CVB Financial Corp. Who is CVB Financial Corp.?
Slide 7: Largest Bank Holding Companies Headquartered in California
Largest Bank Holding Companies Headquartered in California In millions Source: SNL Financial | *Bank only, no holding company Rank Name Asset Size (6/30/16) 1 Wells Fargo & Company $1,889,235 2 First Republic Bank* $64,730 3 SVB Financial Group $43,133 4 East West Bancorp $32,952 5 Pacwest Bancorp $
Slide 8: Ranked #1 rankings
RANKED # ] Ranked #!, Holding B® CITIZENS L> BUSINESS BANK A Financial Services ‘al Services Company a: al Housing Lene
Slide 9: Other Bank Accomplishments & Ratings
Other Bank Accomplishments & Ratings 157 Consecutive Quarters of Profitability 107 Consecutive Quarters of Cash Dividends Ranked Top 5 Bank in US three consecutive years* Bank Director, 2016 Bank Performance Scorecard (July 12, 2016) BauerFinancial Report Five Star Rating (December 2015) 83 Consecut
Slide 10: Our Markets
CVB Financial Corp. Our Markets
Slide 11: Existing Locations
Existing Locations 43 Business Financial Centers 8 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust
Slide 12: De Novo Expansion
CVB Financial Corp. De Novo Expansion
Slide 13: New Banking Teams (2014/2015)
New Banking Teams (2014/2015) Location # of New Hires Central Valley Agribusiness 3 San Diego 5 Los Angeles 4 Oxnard 4 Santa Barbara 3 Newport Beach 6 Total 25
Slide 14: Financial Performance
CVB Financial Corp. Financial Performance
Slide 15: Deposits by region
Deposits* (000’s) # of Center Locations Total Deposits (6/30/15) Total Deposits (6/30/16) Los Angeles County 18 $2,418,945 $2,532,858 Inland Empire (Riverside & San Bernardino Counties) 9 $2,093,090 $2,033,740 Orange County 9 $909,113 $1,016,973 Central Valley 8 $925,129 $1,032,591 Ventura & Santa B
Slide 16: Total Deposits
Total Deposits* (000’s) *Interest Bearing Deposits includes REPOs 3 Year CAGR 10.5%
Slide 17: Deposit Cost Comparison
Deposit Cost Comparison Source: Q1 2016 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 18: Loans by region
(000’s) # of Center Locations Average Loans per Location Total Loans* (6/30/2016) Los Angeles County 18 $91,386 $1,644,944 Central Valley 8 $95,311 $762,487 Inland Empire (Riverside & San Bernardino Counties) 9 $75,532 $679,789 Orange County 9 $61,815 $556,339 Ventura/Santa Barbara Counties 6 $43,07
Slide 19: Total Loans
Total Loans* (000’s) *Starting in the 4th quarter of 2014, covered and non-covered loans are combined (Purchase Credit Impaired or PCI) Before deferred loan fees, discount on PCI loans, and loans held-for-sale Includes covered and non-covered loans for all periods presented
Slide 20: Loan Portfolio Composition
Source: Q2 2016 earnings release & company reports Loan Portfolio Composition Total Loans by Type
Slide 21: Credit Quality
CVB Financial Corp. Credit Quality
Slide 22: 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 23: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 24: 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 25: Profits
CVB Financial Corp. Profits
Slide 26: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 27: Earnings
Earnings (000’s) 2012 2013 2014 2015 6 Months to 6/30/2016 Net Interest Income $236,950 $216,266 $236,514 $252,942 $128,472 Provision for Loan Losses $0 $16,750 $16,100 $5,600 $0 Other Operating Income/Expenses (Net) ($122,257) ($88,741) ($89,817) ($107,176) ($50,845) Income Taxes ($37,413) ($48,667
Slide 28: Net Interest Margin
Net Interest Margin *Normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired) Normalized*
Slide 29: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 30: Efficiency Ratio
Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 45.78%
Slide 31: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 1.73% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 32: Capital
CVB Financial Corp. Capital
Slide 33: Capital Ratios
Capital Ratios * CVB Financial Corp. – Consolidated Adequately Capitalized Ratio Well-Capitalized Ratio June 30, 2016* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 17.01% Total Risk-based Capital Ratio 8.0% 10.0% 18.26% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.54% Tier 1 Leverage Ratio 4.0% 5.0%
Slide 34: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 35: Securities Portfolio
Source: Q2 2016 earnings release | Yield on securities represents the fully taxable equivalent $2.25 Billion *Available For Sale Yield on securities portfolio = 2.44% for the 2nd Quarter 2016 Securities Portfolio* --$3.0 Billion-- $724.4 Million *Held to Maturity
Slide 36: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.25 Billion Mark-to-Market (Pre-tax) (000’s) *Available For Sale $66,554
Slide 37: CVBF Assets & Liabilities
‘CVBF’ Assets & Liabilities 6/30/16 $7.3 Billion **Includes Customer Repurchase Agreements 6/30/16 $8.3 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
Slide 38: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion on PCI loans **Includes Available for Sale and Held to Maturity, TE
Slide 39: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 40: 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 41: Target Customer
Target Customer The best privately-held and/or family-owned businesses throughout California Annual revenues of $1-200 million Top 25% in their respective industry Full relationship banking Build 20-year relationships
Slide 42: Three Areas of Growth
Three Areas of Growth Acquisitions San Diego (2014) Oxnard (2015) American Security Bank (2014) County Commerce Bank (2016) Santa Barbara (2015)
Slide 43: Acquisition Strategy
Target size: $200 million to $2 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Acquisition Strategy --Banks-- --Trust/Investment-- Target size: AUM of $200 million to $1 billion In California --Banking Teams-- In- market & ‘new’ markets
Slide 44: 2016 'Critical Few'
2016 ‘Critical Few’ Quality Loan Growth Expand Our Footprint DeNovo Growth Acquisition Relationship Banking Cyber Security Recruit, Retain & Train Key People
Slide 45: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com