Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (April 2022)
38 slides from Cvb Financial's investor presentation, Apr 21, 2022
Slide 1: CVB Financial Corp. April 2022
Exhibit 99.1 CVB Financial Corp. April 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the manageme
Slide 3: CVB Financial Corp. (CVBF) at a glance
Total Assets: $17.5 Billion Gross Loans: $ 8.6 Billion Total Deposits (Including Repos):$15.1 Billion Total Equity: $ 2.1 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 4/15/2022 CVB Financial Corp. is the holding company for Citizens Business Bank SNL Financial ranking of largest bank holding companies in CA, as of 12/31/2021 Bank Accomplishments & Ratings 180 Consecutive Quarters of Profitability 130 Consecutive Quarters of Cash Dividends Ranked #4 Forbes,
Slide 5: Business Financial Centers and CitizensTrust Locations
65 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 long-term 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 (Closed January 7, 2022)
Slide 9: Acquisition Strategy
Acquisition Strategy Target size: $1 billion to $10 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Banks: Banking Teams: In-market New markets
Slide 10: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights Profitability ROATCE = 13.08% ROAA = 1.06% NIM = 2.90% Efficiency Ratio excluding Acq. Exp. = 42.4% Income Statement Q1 Net Income = $45.6 million Acquisition Expense = $5.6 million Q1 Diluted EPS =$0.31 Balance Sheet Growth ~ 8% annualized core loan growth ~ 6% growth i
Slide 11: Selected Ratios
Selected Ratios 2019 2020 2021 Q1’21 Q4’21 Q1’22 ROATCE 17.56% 14.25% 15.93% 19.85% 13.89% 13.08% NIM 4.36% 3.59% 2.97% 3.18% 2.79% 2.90% Cost of Funds 0.24% 0.13% 0.05% 0.07% 0.03% 0.03% Efficiency Ratio 40.16% 41.40% 41.09% 40.26% 41.80% 46.93% NIE % Avg. Assets 1.76% 1.49% 1.24% 1.32% 1.19% 1.36%
Slide 12: Pretax-Pre Provision Income
Pretax-Pre Provision Income PTPP income (Non -GAAP*) PTPP ROAA (Non-GAAP*) * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annual Quarterly ($ in Millions)
Slide 13: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 14: Quality Loan Growth
Quality Loan Growth ($ in Millions) 5% Core Loan Growth $7,395
Slide 15: Core Loan Growth
Core Loan Growth CRE +$293 5% growth C&I + $87 11% growth Other ($56) D&L and Agribus. +$16 SFR Flat ($ in Millions) Q1 2022 vs Q1 2021 8% core growth (annualized)
Slide 16: Line Utilization Trends
Line Utilization Trends Total D&L C&I
Slide 17: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion Remaining loan fair value credit discounts — Non-PCD $18.6MM (1)
Slide 18: Asset Sensitive Balance Sheet
Asset Sensitive Balance Sheet 47% of earning assets combined between Federal Reserve balance and investment portfolio > 60% of Banks funding from Noninterest-bearing deposits CVBF’s Cost of Funds increased from 9bps to 17bps from 2014 to end of 2018, compared to a 225bps increase in Fed Funds Rate *
Slide 19: High Quality Securities Portfolio
$3.65 Billion *Available For Sale Yield on securities portfolio = 1.70% for the 1st Quarter 2022 High Quality Securities Portfolio* - $6.0 Billion $2.36 Billion *Held to Maturity Yield on securities represents the fully taxable equivalent Quarterly projected cash flow from portfolio ~ $200 million
Slide 20: Cost of Deposits
Cost of Deposits Cost of Funds = 3 bps * Source: S&P Capital IQ. Regulated depositories with assets $2 - $35 billion in CA, AZ, HI, NV, OR & WA.
Slide 21: 2022 Share Repurchase Program
2022 Share Repurchase Program ASR $70 million (~ 80% upfront 2,544K shares) 10b5-1 Stock Repurchases (536K shares) Repurchase Program up to 10 Million Shares Q1 2022 Impact of Suncrest Acquisition and Share Repurchase Program on CVBF Common Stock
Slide 22: Strong Capital Ratios
Strong Capital Ratios $778MM $700MM $541MM $413MM * Source: S&P Capital IQ. Regulated depositories with assets $2 - $35 billion in CA, AZ, HI, NV, OR & WA.
Slide 23: Dividends – Consecutive Quarters
Dividends – 130 Consecutive Quarters 130 Consecutive Quarters More than 30 years of cash dividends since 1989 * Dividend payout ratio calculated on per share basis.
Slide 24: Suncrest Bank Merger/Integration Timeline
Suncrest Bank Merger/Integration Timeline January 7, 2022 February 18, 2022 April-May 2022 June 2022 Merger Completed Systems Conversion Consolidation of two center locations Acquisition Fully Integrated Merger Consideration: ($ in Millions) 8.6MM Shares issued $197 Cash 40 Aggregate Consideration$2
Slide 25: Q1 2022 Allowance by Portfolio
Q1 2022 Allowance by Portfolio CECL Update Highlights Net provision of $2.5M in Q1 2022 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 12/31/2021 3/
Slide 26: Loans by Type
Loans by Type CRE $6.47B C&I $0.92B Other $1.20B
Slide 27: Loans by Region
(000s) # of Center Locations (3/31/22) Average Loans per Location Total Loans (3/31/22) % Los Angeles County 21 $154,562 $ 3,245,794 37.8% Central Valley and Sacramento 17 122,895 2,089,216 24.3% Orange County 10 106,147 1,061,468 12.4% Inland Empire (Riverside & San Bernardino Counties) 10 96,502 9
Slide 28: Owner/Non-Owner Occupied Commercial Real Estate Loans
Owner/Non-Owner Occupied Commercial Real Estate Loans Collateral Type
Slide 29: 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) 2022 2021 2020 2019 2018 2017 2016 or earlier Industrial $ 2,131 50% 51% $ 1,485 6% 23% 14% 9% 10% 11% 27% Office 1,097 23% 56% 1,606 5% 16% 20% 12% 8% 10% 29%
Slide 30: C&I by Industry
C&I by Industry Includes Accommodation and Food Services ($10MM or 1% of C&I loans) Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 191 21% Manufacturing 143 15% Wholesale Trade 110 12% Construction 87 9% Health Care and Social Assistance 51 6% Arts, Entertainment, a
Slide 31: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 32: Relationship-Centered Deposit Base
Relationship-Centered Deposit Base At March 31, 2022 Noninterest-bearing Deposits $9.1B > Loans $8.6B
Slide 33: Deposits by Region
Deposits by Region (000s) # of Center Locations (3/31/22) Total Deposits (12/31/21) Total Deposits (3/31/22) Average Deposits per Center (3/31/22) Los Angeles County 21 $ 5,875,749 $ 5,785,682 $ 275,509 Inland Empire (Riverside & San Bernardino Counties) 10 3,788,138 4,118,552 411,855 Orange County
Slide 34: Digital and Technology Solutions
Digital and Technology Solutions Leveraging technology, digital transformation and data to better serve our clients and associates Recently Completed Powerful new personal and business online banking and mobile apps with Remote Deposit Personal financial management integration Same-day ACH Intuitive
Slide 35: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 36: 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 37: 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 38: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com