Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Q4 2020 Earnings Presentation
34 slides from Cvb Financial's earnings presentation, Jan 28, 2021
Slide 1: CVB Financial Corp. January 2021
Exhibit 99.1 CVB Financial Corp. January 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: $14.4 Billion Gross Loans: $ 8.3 Billion Total Deposits (Including Repos):$12.2 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: Bank Accomplishments & Ratings
As of 12/31/2020 S&P Global Market Intelligence ranked CVB Financial Corp. the #2 Best-Performing Regional Bank of 2018 with $10 billion to $50 billion in assets CVB Financial Corp. is the holding company for Citizens Business Bank SNL Financial ranking of largest bank holding companies in CA, as of
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: Full Year & Q4 2020 Financial Highlights
Full Year & Q4 2020 Financial Highlights Profitability ROATCE = Q4 15.67% | Full Year 14.25% ROAA = Q4 1.42% | Full Year 1.37% Efficiency Ratio = Q4 40.64% | Full Year 41.40% Income Statement Net Income = Q4 $50.1 million | Full Year $177.2 million Diluted EPS = Q4 $0.37 | Full Year $1.30 Balance Sh
Slide 11: Selected Ratios
Selected Ratios 2018 2019 2020 Q4’19 Q3’20 Q4’20 ROATCE 15.18% 17.56% 14.25% 16.36% 15.20% 15.67% NIM 4.03% 4.36% 3.59% 4.24% 3.34% 3.33% Cost of Funds 0.16% 0.24% 0.13% 0.22% 0.11% 0.09% Efficiency Ratio 45.83% 40.16% 41.40% 41.01% 42.57% 40.64% NIE % Avg. Assets 1.89% 1.76% 1.49% 1.71% 1.44% 1.37%
Slide 12: PPP Loans Summary
PPP Loans Summary 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: Q4’20 = $7.9 million 2020 YTD = $21.4 million SBA Paycheck Protection Program ($ in Thousands) Origination Balanc
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: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 15: Earning Asset Mix Q4 2020
Earning Asset Mix 1 Q4 2020 Average Earning Assets $10.1 billion Average Earning Assets $12.7 billion Cash 3.0% Investments 23% Investments. 22% cbbank.com 15
Slide 16: Dividends – Consecutive Quarters
Dividends – 125 Consecutive Quarters 125 Consecutive Quarters More than 30 years of cash dividends since 1989 * Dividend payout ratio calculated on per share basis.
Slide 17: 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 $782MM $677MM $571MM $500MM
Slide 18: Investment Portfolio, Loan to Deposit Ratio and Funding Availability
Investment Portfolio Loan to Deposit & Repo Ratio $3.0 Billion as of @4 2020 < 85% past § quarters Agency CMO. 83% 20% 19% Municipal 73% —<“ % 12% 69% Other ‘Agency MBS “ub 69% _ Q42019 @12020 © @22020 3.2020 @4 2020 Funding Availability on Funding S $4.3 Billion os of @4 2020 Sano ace 93% Core Depo
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 $31MM in remaining loan fair value discounts
Slide 20: Q4 2020 Allowance by Portfolio / CECL Update
Q4 2020 Allowance by Portfolio CECL Update Highlights No credit provision in Q4 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 9/30/2020 12/31/2020
Slide 21: Loans by Type
Loans by Type CRE $5.50B C&I $0.81B Other $2.04B
Slide 22: Loans by Region
(000’s) # of Center Locations (12/31/20) Average Loans per Location Total Loans* (12/31/20) % Los Angeles County 21 $168,732 $ 3,543,375 42.4% Central Valley 9 $155,743 1,401,683 16.8% Orange County 10 $107,285 1,072,852 12.8% Inland Empire (Riverside & San Bernardino Counties) 10 $115,093 1,150,925
Slide 23: COVID-Related Deferments
COVID-Related Deferments Segment Remaining ($ in Thousands) CRE 3,702 Industrial 2,145 Other 1,557 SBA * 6,272 Total (CRE + SBA) 9,974 * SBA – Owner Occupied Total Deferments - .12% of total loans
Slide 24: COVID Impacted Industries
COVID Impacted Industries ($ in Millions) Balance as of 12/31/2020 Deferral Status as of 1/15/2021 Loan Segments Total % of Total Loans Classified1 % of Loan Segment Classified $ Balance % of Loan Segment % of Classified Deferred CRE $ 1,847.6 22.1% $ 10.8 0.6% $ 0.0 0% 0% Office 998.6 12.0% 5.7 0.6
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) 2020 2019 2018 2017 2016 or earlier Industrial $ 1,863 53% 52% $ 1,395 16% 14% 13% 15% 41% Office 999 24% 56% 1,585 22% 14% 10% 14% 40% Retail 784 13% 49% 1,69
Slide 27: C&I by Industry
C&I by Industry Includes Retail Trade ($20MM or 3% of C&I loans) Includes Accommodation and Food Services ($17MM or 2% of C&I loans) Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 151 19% Manufacturing 133 16% Wholesale Trade 90 11% Finance and Insurance 64 8% Healt
Slide 28: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 29: Deposits by Region
Deposits by Region (000’s) # of Center Locations (12/31/20) Total Deposits (9/30/20) Total Deposits (12/31/20) Los Angeles County 21 $4,734,333 $5,261,236 Inland Empire (Riverside & San Bernardino Counties) 10 $3,475,961 $3,422,305 Orange County 10 $1,615,459 $1,630,573 Central Valley 9 $1,303,060 $
Slide 30: 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 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