Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (October 2021)
34 slides from Cvb Financial's investor presentation, Oct 21, 2021
Slide 1: CVB Financial Corp. October 2021
Exhibit 99.1 CVB Financial Corp. October 2021
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. (CVBF) at a glance
Total Assets: $16.2 Billion Gross Loans: $ 7.8 Billion Total Deposits (Including Repos):$13.6 Billion Total Equity: $ 2.0 Billion CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974.
Slide 4: Citizens Business Bank Accomplishments & Ratings
As of 10/18/2021 CVB Financial Corp. is the holding company for Citizens Business Bank SNL Financial ranking of largest bank holding companies in CA, as of 12/31/2020 Bank Accomplishments & Ratings 178 Consecutive Quarters of Profitability 128 Consecutive Quarters of Cash Dividends Ranked #1 Forbes,
Slide 5: Business Financial Centers and CitizensTrust Locations
58 Business Financial Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers CitizensTrust
Slide 6: 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 7: 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 8: Three Areas of Growth
Three Areas of Growth De Novo San Diego (2014) Oxnard (2015) Santa Barbara (2015) San Diego (2017) Stockton (2018) Modesto (2020) Acquisitions American Security Bank (2014) County Commerce Bank (2016) Valley Business Bank (2017) Community Bank (2018) Suncrest Bank (Announced July 2021)
Slide 9: Acquisition Strategy
Acquisition Strategy Target size: $1 billion to $8 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Banks: Banking Teams: In-market New markets
Slide 10: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights Profitability ROATCE = 14.62% ROAA = 1.26% NIM = 2.89% Efficiency Ratio = 42.27% Income Statement Net Income =$49.8 million $4.0 million recapture of provision for credit losses Diluted EPS =$0.37 Balance Sheet ~6% annualized core loan growth in Q3 $1.7 billion increase
Slide 11: Selected Ratios
Selected Ratios 2018 2019 2020 Q3’20 Q2’21 Q3’21 ROATCE 15.18% 17.56% 14.25% 15.20% 15.60% 14.62% NIM 4.03% 4.36% 3.59% 3.34% 3.06% 2.89% Cost of Funds 0.16% 0.24% 0.13% 0.11% 0.05% 0.04% Efficiency Ratio 45.83% 40.16% 41.40% 42.57% 40.05% 42.27% NIE % Avg. Assets 1.89% 1.76% 1.49% 1.44% 1.23% 1.22%
Slide 12: SBA Paycheck Protection Program Summary
Summary – Round 1 Originated and funded more than 4,000 PPP loans for greater than $1.1 billion $1.07 billion forgiven thru September 30, 2021 ~ 99+% forgiven Total Fees of ~$35 million recognized in Net Interest Income Q3’21 = $1.5 million / 2021 YTD = $13.6 million / FY 2020 = $21.4 million SBA Pa
Slide 13: Net Income & Pretax-Pre Provision Income
Net Income & Pretax-Pre Provision Income PTPP income (Non -GAAP*) Net income PTPP ROAA (Non-GAAP*) ROAA * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annually Quarterly ($ in Millions)
Slide 14: Core Loan Growth
Core Loan Growth CRE +$307 6% growth C&I ($47) Other ($31) D&L and Agribus. +$27 SFR ($43) ($ in Millions) 2021Q3 vs 2020Q3 6% growth (core loans annualized)
Slide 15: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 16: Asset Sensitive Balance Sheet
Asset Sensitive Balance Sheet CVBF’s net interest income sensitivity is +21%* when rates are ramped up 200bps over a 12 month time horizon 45% of earning assets combined between Federal Reserve balance and investment portfolio > 63% of Banks funding from Noninterest-bearing deposits CVBF’s Cost of F
Slide 17: Dividends – Consecutive Quarters
Dividends – 128 Consecutive Quarters 128 Consecutive Quarters More than 30 years of cash dividends since 1989 * Dividend payout ratio calculated on per share basis.
Slide 18: Strong Capital Ratios
Strong Capital Ratios * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $781MM $734MM $595MM $484MM
Slide 19: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $21MM in remaining loan fair value discounts (1)
Slide 20: Q3 2021 Allowance by Portfolio, CECL Update
Q3 2021 Allowance by Portfolio CECL Update Highlights $4MM recapture of credit losses in Q3 2021 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 06/3
Slide 21: Loans by Type
Loans by Type CRE $5.73B C&I $0.77B Other $1.35B
Slide 22: Loans by Region
(000’s) # of Center Locations (9/30/21) Average Loans per Location Total Loans (9/30/21) % Los Angeles County 21 $155,841 $ 3,272,657 41.7% Central Valley 10 138,963 1,389,634 17.7% Orange County 10 103,423 1,034,232 13.2% Inland Empire (Riverside & San Bernardino Counties) 10 100,968 1,009,682 12.9
Slide 23: Owner/Non-Owner Occupied Commercial Real Estate Loans
Owner/Non-Owner Occupied Commercial Real Estate Loans Collateral Type
Slide 24: CRE by Collateral Origination Year
CRE by Collateral Origination Year Collateral Type Balance ($ in Millions) % of Owner Occupied LTV at Origination Avg. Size ($ in Thousands) 2021 2020 2019 2018 2017 2016 or earlier Industrial $ 1,946 51% 51% $ 1,466 19% 14% 12% 11% 12% 32% Office 1,046 23% 56% 1,676 13% 21% 13% 9% 11% 33% Retail 81
Slide 25: C&I by Industry
C&I by Industry Includes Retail Trade ($21MM or 3% of C&I loans) Includes Accommodation and Food Services ($13MM or 2% of C&I loans) Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 145 19% Manufacturing 128 17% Wholesale Trade 84 11% Construction 54 7% Health Care an
Slide 26: Line Utilization Trends
Line Utilization Trends Total D&L C&I
Slide 27: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 28: Deposits by Region
Deposits by Region (000’s) # of Center Locations (9/30/21) Total Deposits (6/30/21) Total Deposits (9/30/21) Average Deposits per Center (9/30/21) Los Angeles County 21 $ 5,575,916 $ 5,535,260 $ 263,584 Inland Empire (Riverside & San Bernardino Counties) 10 3,794,062 4,071,286 407,129 Orange County
Slide 29: Cost of Deposits
Cost of Deposits Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35B
Slide 30: Current and Planned Client Technology Solutions
Current and Planned Client Technology Solutions Leveraging technology and data to better serve our clients Digital Online Banking Powerful personal and business mobile apps with Remote Deposit Personal financial management integration Same-day ACH Intuitive and customizable targeted Online Banking t
Slide 31: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 32: Reconciliation of Return on Average Tangible Common Equity (Non-GAAP)
Reconciliation of Return on Average Tangible Common Equity (Non-GAAP) The return on average tangible common equity is a non-GAAP disclosure. We use certain non-GAAP financial measures to provide supplemental information regarding our performance. We believe that presenting the return on average tang
Slide 33: Reconciliation of PTPP Return on Average Assets (Non-GAAP)
Reconciliation of PTPP Return on Average Assets (Non-GAAP) The Pretax-pre provision income (“PTPP”) return on average assets is a non-GAAP disclosure. We use certain non-GAAP financial measures to provide supplemental information regarding our performance. We believe that presenting the return on av
Slide 34: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com