Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (April 2021)
37 slides from Cvb Financial's investor presentation, Apr 22, 2021
Slide 1: CVB Financial Corp. April 2021
Exhibit 99.1 CVB Financial Corp. April 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: $14.8 Billion Gross Loans: $ 8.3 Billion Total Deposits (Including Repos):$12.6 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: Holding company for Citizens Business Bank; accomplishments and ratings
As of 3/17/2021 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 176 Consecutive Quarters of Profitability 126 Consecutive Quarters of Cash Dividends Ranked #1 Forbes,
Slide 5: Business Financial Centers and locations
57 Business Financial Centers 1 Loan Production Office 3 CitizensTrust Locations Corporate Office Business Financial Centers Loan Production Office 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)
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: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights Profitability ROATCE = 19.85% ROAA = 1.79% Efficiency Ratio = 40.26% Income Statement Net Income =$63.9 million $19.5 million recapture of allowance for credit losses Diluted EPS =$0.47 Balance Sheet $922 million increase in investment portfolio ~2% Core Loan Growth Annu
Slide 11: Selected Ratios
Selected Ratios 2018 2019 2020 Q1’20 Q4’20 Q1’21 ROATCE 15.18% 17.56% 14.25% 12.27% 15.67% 19.85% NIM 4.03% 4.36% 3.59% 4.08% 3.33% 3.18% Cost of Funds 0.16% 0.24% 0.13% 0.21% 0.09% 0.07% Efficiency Ratio 45.83% 40.16% 41.40% 42.69% 40.64% 40.26% NIE % Avg. Assets 1.89% 1.76% 1.49% 1.72% 1.37% 1.32%
Slide 12: PPP Loans - Round Summary
PPP Loans - Round 1 Summary – Round 1 Originated and funded 4,092 PPP loans for ~$1.10B 99% of the PPP portfolio originated with 24 month term Total Fees ~$35 million Fees recognized in Net Interest Income: FY 2020 = $21.4 million; Q4’20 = $7.9 million; Q1’21 = $7.8 million SBA Paycheck Protection P
Slide 13: SBA Paycheck Protection Program Summary
Summary – Round 2 Originated and funded more than 1,500 PPP loans for greater than $325 million in borrowings as of 3/31/2021 100% of the PPP originated with 60 month term Total Fees ~$12 million Fees recognized in Net Interest Income: Q1’21 = $0.4 million SBA Paycheck Protection Program
Slide 14: Net Income & Pretax-Pre Provision Income
Net Income & Pretax-Pre Provision Income PTPP income (Non -GAAP*) Net income PTPP ROAA (Non-GAAP*) ROAA * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annually Quarterly ($ in Millions)
Slide 15: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 16: Earning Asset Mix
Earning Asset Mix Q1 2020 Q1 2021 Average Earning Assets $10.1 Billion Average Earning Assets $13.3 Billion | Investments 23% Investments 25% cbbank.com 16
Slide 17: Dividends – Consecutive Quarters
Dividends – 126 Consecutive Quarters 126 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 $804MM $704MM $595MM $497MM
Slide 19: Investment Portfolio
Investment Portfolio Q1 2020 Total Investment Portfolio. $2.3 Billion cMo 29% Municipal % Agency 5% 2020 Qi AFS vs HTM. QWs Qi 2021 Total Investment Portfolio $3.9 Billion mo 19% Qi 2021 AFS vs HTM, Municipal 6% Agency 15% cbbank.com
Slide 20: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $27MM in remaining loan fair value discounts
Slide 21: Q1 2021 Allowance by Portfolio and CECL Update
Q1 2021 Allowance by Portfolio CECL Update Highlights $19.5MM recapture of credit losses in Q1 2021 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 1
Slide 22: Loans by Type
Loans by Type CRE $5.60B C&I $0.75B Other $1.94B
Slide 23: Loans by Region
(000’s) # of Center Locations (3/31/21) Average Loans per Location Total Loans* (3/31/21) % Los Angeles County 21 $169,043 $ 3,549,896 42.8% Central Valley 9 149,413 1,344,718 16.2% Orange County 10 108,308 1,083,075 13.1% Inland Empire (Riverside & San Bernardino Counties) 10 116,849 1,168,494 14.1
Slide 24: COVID Impacted Industries
COVID Impacted Industries ($ in Millions) Balance as of 03/31/2021 Loan Segments Total % of Total Loans Classified1 % of Loan Segment Classified CRE $ 1,882.6 22.7% $ 10.7 0.6% Office 1,025.1 12.4% 5.7 0.6% Retail 793.5 9.6% 5.0 0.6% Hospitality 64.0 0.8% 0.0 0.0% C&I 76.5 0.9% 1.6 2.1% Arts, Entert
Slide 25: Owner/Non-Owner Occupied Commercial Real Estate Loans
Owner/Non-Owner Occupied Commercial Real Estate Loans Collateral Type
Slide 26: 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 $ 1,915 52% 52% $ 1,434 7% 15% 14% 12% 14% 37% Office 1,025 24% 56% 1,635 5% 22% 13% 10% 12% 38% Retail 793
Slide 27: C&I by Industry
C&I by Industry Includes Retail Trade ($16MM or 2% of C&I loans) Includes Accommodation and Food Services ($16MM or 2% of C&I loans) Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 149 20% Manufacturing 127 17% Wholesale Trade 83 11% Health Care and Social Assistance
Slide 28: Line Utilization Trends
Line Utilization Trends Total D&L C&I Undrawn loan commitments increased by $240MM from Q1 2020 to Q1 2021
Slide 29: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 30: Deposits by Region
Deposits by Region (000’s) # of Center Locations (3/31/21) Total Deposits (12/31/20) Total Deposits (3/31/21) Average Deposits per Center (3/31/21) Los Angeles County 21 $ 5,261,236 $ 5,163,376 $245,875 Inland Empire (Riverside & San Bernardino Counties) 10 3,422,305 3,573,821 357,382 Orange County
Slide 31: Cost of Deposits
Cost of Deposits Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35
Slide 32: Core Funding
Core Funding eas Q1 2021 Total Deposits & Customer Repos Total Deposits & Customer Repos $9.5 Billion $12.6 Billion | Interest-bearing Interest-bearing 37% | 36% Noninterest-bearing 59% Noninterest-bearing 60% cbbank.com 32
Slide 33: 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 34: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 35: 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 36: 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 37: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com