Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (March 2019)
44 slides from Cvb Financial's investor presentation, Mar 4, 2019
Slide 1: CVB Financial Corp. March 2019
Exhibit 99.1 CVB Financial Corp. March 2019
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: $11.5 Billion Gross Loans: $7.8 Billion Total Deposits (Including Repos):$9.3 Billion Total Equity: $1.9 Billion Source: Q4 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 34 Years 13 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 25 Years 3 Years Dave F. Farnsworth Executive Vice President Chief Credit Officer 34 Years 3 Years David C.
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 6 Years 62 George Borba Jr. - Vice Chairman 6 Years 51 Chris Myers – CEO 13 Years 56 Steve Del Guercio 6 Years 57 Rod Guerra 2 Years 63 Anna Kan 3 Years 45 Marshall Laitsch New 70 Kristina Leslie 4 Years 54 Hal Oswalt 5 Years 70
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. Rank Institution Total Assets (12/31/18) 1 Wells Fargo & Company $ 1,895,883 2 First Republic Bank(1) $99,205 3 SVB Financial Group $56,928 4 East West Bancorp, Inc. $41,042 5 PacWest Bancorp $25,731 6 Cath
Slide 8: Bank Accomplishments & Ratings
*As ranked among domestic banks with $5 to $50 billion in assets Bank Accomplishments & Ratings 167 Consecutive Quarters of Profitability 117 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 64 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: Deposits by region
Deposits* (000’s) # of Center Locations (12/31/18) Total Deposits (12/31/17) Total Deposits (12/31/18) Los Angeles County 27 $2,330,557 $3,739,537 Inland Empire (Riverside & San Bernardino Counties) 12 $2,161,908 $2,602,822 Orange County 13 $1,143,841 $1,432,643 Central Valley 9 $1,112,886 $1,076,80
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q4 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: Loans by region
(000’s) # of Center Locations (12/31/18) Average Loans per Location Total Loans* (12/31/18) Los Angeles County 27 $126,450 $3,414,138 Central Valley 9 $123,595 $1,112,353 Inland Empire (Riverside & San Bernardino Counties) 12 $88,471 $1,061,652 Orange County 13 $78,519 $1,020,748 Central Coast 5 $88
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q4 2018 earnings release & company reports
Slide 16: Credit Quality
CVB Financial Corp. Credit Quality
Slide 17: 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 18: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 19: 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 20: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 21: Securities Portfolio $2.5 Billion
$1.73 Billion *Available For Sale Yield on securities portfolio = 2.55% for the 4th Quarter 2018 Securities Portfolio* - $2.5 Billion $744.4 Million *Held to Maturity Source: Q4 2018 earnings release | Yield on securities represents the fully taxable equivalent
Slide 22: Available For Sale Securities Portfolio
*Available For Sale Securities Only Securities Portfolio* $1.73 Billion (000’s) Mark-to-Market (Pre-tax)
Slide 23: Profits
CVB Financial Corp. Profits
Slide 24: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 25: Net Interest Margin
Net Interest Margin Normalized* *Normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired) Discount accretion
Slide 26: CVBF Assets
‘CVBF’ Assets 12/31/17 Assets - $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 deposits 12/31/18 Assets - $11.5 Billion
Slide 27: 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 28: CVBF Liabilities
‘CVBF’ Liabilities 12/31/18 Liabilities - $9.7 Billion 12/31/17 Liabilities - $7.2 Billion
Slide 29: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 30: Community Bank Merger/Integration Timeline
Community Bank Merger/Integration Timeline August 10, 2018 November 10 -12, 2018 January – May 2019 May 2019 Merger Completed Systems Conversion Complete Consolidation of 10 center locations (‘2’ per month) Acquisition Fully Integrated
Slide 31: Efficiency Ratio
Efficiency Ratio Excludes $8.5 million acquisition related expenses (Community Bank) $13.9 million FHLB prepayment charge
Slide 32: Noninterest Expense as a % of Average Assets
Noninterest Expense as a % of Average Assets $13.9 million FHLB prepayment charge Excludes $8.5 million acquisition related expenses and $2.9 million CDI amortization (Community Bank)
Slide 33: Capital
CVB Financial Corp. Capital
Slide 34: Capital Ratios
Capital Capital Ratios Adequately Capitalized Ratio Well-Capitalized Ratio December 31, 2018* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 13.3% Total Risk-based Capital Ratio 8.0% 10.0% 14.1% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 13.0% Tier 1 Leverage Ratio 4.0% 5.0% 11.0% * CVB Financial Corp.
Slide 35: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 36: 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 37: 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 38: Citizens Business Bank services
Citizens Business Bank Relationship Manager (Bank) Property Management Real Estate Banking International Treasury Management Specialty Banking Construction Lending CitizensTrust Merchant Bankcard SBA Citizens Home Lending Loan Brokerage Title Escrow Marketing Citizens Equipment Financing Government
Slide 39: Three Areas of Growth
Three Areas of Growth De Novo San Diego (2014) Oxnard (2015) Santa Barbara (2015) San Diego (2017) Stockton (2018) Acquisitions American Security Bank (2014) County Commerce Bank (2016) Valley Business Bank (2017) Community Bank (2018)
Slide 40: Acquisition Strategy
Acquisition Strategy Target size: $200 million to $5 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) --Banks-- --Banking Teams-- In-market & ‘new’ markets
Slide 41: Five Core Values
Five Core Values Financial Strength 1 Superior People 2 Customer Focus 3 Cost-Effective Operation 4 Having Fun 5
Slide 42: Rule of Three
Rule of Three ae Scalable Rule of Three Repeatable Transparent cbbank.com 7
Slide 43: 2019 Critical Few
2019 ‘Critical Few’ Grow Core Deposits Focus on Relationship Banking Develop, Customize and Refine our Infrastructure Cyber Security and Fraud Prevention Associate Integration and Education
Slide 44: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com