Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (November 2019)
46 slides from Cvb Financial's investor presentation, Nov 1, 2019
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. November 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: $11.3 Billion Gross Loans: $7.5 Billion Total Deposits (Including Repos):$9.2 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: 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 29 Years 3 Years Dave F. Farnsworth Executive Vice President Chief Credit Officer 35 Years 3 Years David C.
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 7 Years 62 George Borba Jr. - Vice Chairman 7 Years 52 Chris Myers – CEO 13 Years 57 Steve Del Guercio 7 Years 58 Rod Guerra 2 Years 63 Anna Kan 3 Years 46 Marshall Laitsch 1 Year 70 Kristina Leslie 4 Years 55 Hal Oswalt 5 Years 71
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 (9/30/19) 1 Wells Fargo & Company $ 1,943,950 2 First Republic Bank(1) $111,029 3 SVB Financial Group $68,231 4 East West Bancorp, Inc. $43,275 5 PacWest Bancorp $26,725 6 Cath
Slide 8: Bank Accomplishments & Ratings
As of 9.30.2019 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 Bank Accomplishments & Ratings 170 Consecutive Quarters of Profitabil
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 58 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 (9/30/19) Total Deposits (6/30/19) Total Deposits (9/30/19) Los Angeles County 22 $3,643,933 $3,746,104 Inland Empire (Riverside & San Bernardino Counties) 10 $2,687,912 $2,630,692 Orange County 10 $1,324,184 $1,364,907 Central Valley 9 $1,040,496 $1,045,523 C
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion
Slide 14: Total Loans by Region
(000’s) # of Center Locations (9/30/19) Average Loans per Location Total Loans* (9/30/19) % Los Angeles County 22 $150,085 $3,301,874 44.0% Central Valley 9 $123,564 $1,112,079 14.8% Orange County 10 $100,815 $1,008,152 13.5% Inland Empire (Riverside & San Bernardino Counties) 10 $97,689 $976,892 13
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type
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 $2.3 Billion
$1.57 Billion *Available For Sale Yield on securities portfolio = 2.47% for the 3rd Quarter 2019 Securities Portfolio* - $2.3 Billion $704.0 Million *Held to Maturity Yield on securities represents the fully taxable equivalent
Slide 22: Available For Sale Securities Portfolio Mark-to-Market
*Available For Sale Securities Only Securities Portfolio* $1.57 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
Slide 25: Return on Average Assets (ROAA)
Return on Average Assets (“ROAA”)
Slide 26: Return on Average Tangible Common Equity (ROATCE)
Return on Average Tangible Common Equity (“ROATCE”) * See Non-GAAP measurement slide 45
Slide 27: Net Interest Margin
Net Interest Margin Normalized* * Through the 4th quarter of 2014, normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired) Discount accretion (post CB Acquisition)
Slide 28: CVBF Assets
‘CVBF’ Assets 9/30/18 Assets - $11.5 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 9/30/19 Assets - $11.3 Billion
Slide 29: CVBF Yield on Securities vs. Yield on Loans
‘CVBF’ Yield on Securities vs. Yield on Loans * Tax equivalent yield
Slide 30: CVBF Liabilities
‘CVBF’ Liabilities 9/30/19 Liabilities - $9.4 Billion 9/30/18 Liabilities - $9.7 Billion
Slide 31: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 32: Efficiency Ratio
55.00% Efficiency Ratio 50.00% 45.00% + 40.00% 35.00% ™ 39.89% 30.00% 2014 2015 2016 2017 2018 YTD 9/30/19 -®Efficiency Ratio cbbank.com
Slide 33: Capital
CVB Financial Corp. Capital
Slide 34: Capital Ratios
Capital Capital Ratios Well-Capitalized Ratio September 30, 2018* September 30, 2019* Tier 1 Risk-based Capital Ratio 8.0% 13.2% 14.9% Total Risk-based Capital Ratio 10.0% 14.0% 15.8% Common Equity Tier 1 Capital Ratio 6.5% 12.9% 14.6% Tier 1 Leverage Ratio 5.0% 12.5% 12.2% * CVB Financial Corp. – C
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: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 45: 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 46: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com
CVB Financial — Investor Presentation (November 2019) on 6ix