Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (November 2017)
43 slides from Cvb Financial's investor presentation, Nov 9, 2017
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. November 2017
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: $8.3 Billion Gross Loans: $4.7 Billion Total Deposits (Including Repos):$7.1 Billion Total Equity: $1.1 Billion Source: Q3 2017 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 32 Years 11 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 22 Years 1 Year Dave F. Farnsworth Executive Vice President Chief Credit Officer 32 Years 1 Year David C. Ha
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 5 Years 60 George Borba Jr. - Vice Chairman 4 Years 50 Steve Del Guercio 5 Years 56 Kristina Leslie 2 Years 53 Hal Oswalt 3 Years 69 Anna Kan 1 Year 44 Rod Guerra New 61 Chris Myers - CEO 11 Years 55
Slide 6: Who is CVB Financial Corp.?
CVB Financial Corp. Who is CVB Financial Corp.?
Slide 7: Largest Bank Holding Companies Headquartered in California
Largest Bank Holding Companies Headquartered in California In millions Rank Name Asset Size (9/30/17) 1 Wells Fargo & Company $1,934,939 2 First Republic Bank* $84,320 3 SVB Financial Group $50,754 4 East West Bancorp $36,308 5 PacWest Bancorp $22,243 6 Cathay General Bancorp $15,728 7 Hope Bancorp,
Slide 8: Other Bank Accomplishments & Ratings
*As ranked among domestic banks with $5 to $50 billion in total assets Other Bank Accomplishments & Ratings 162 Consecutive Quarters of Profitability 112 Consecutive Quarters of Cash Dividends Ranked #1 Forbes, 2016 Best Banks in America (January 2016) Ranked #2 Forbes, 2017 Best Banks in America (J
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 50 Business Financial Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers CitizensTrust
Slide 11: Acquisition Summary 2014 - 2017
Acquisition Summary 2014 - 2017
Slide 12: Acquisitions: Valley Business Bank, County Commerce Bank, American Security Bank
Valley Business Bank ‘VCBP’ Acquisition Date: March 10, 2017 Overview VCBP Balance Sheet (000’s) 3/10/17 Headquarters Visalia, CA Establishment Date 1995 Total Branches 4 Total Assets $406,100 Total Loans $309,700 Total Deposits $361,800 Acquisition Price = $60.8 Million Headquarters Oxnard, CA Esta
Slide 13: Financial Performance
CVB Financial Corp. Financial Performance
Slide 14: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (9/30/16) Total Deposits (9/30/17) Los Angeles County 18 $2,611,770 $2,438,457 Inland Empire (Riverside & San Bernardino Counties) 9 $1,995,620 $2,065,165 Central Valley** 8 $952,308 $1,155,658 Orange County 9 $1,018,814 $1,075,030 Central Coast
Slide 15: Total Deposits
*Interest Bearing Deposits includes REPOs Total Deposits* (000’s) 3 Year CAGR 4.0% 3 Year CAGR 8.8%
Slide 16: Deposit Cost Comparison
Deposit Cost Comparison Source: Q3 2017 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 17: Total Loans by Region
(000’s) # of Center Locations Average Loans per Location Total Loans* (9/30/17) Los Angeles County 18 $91,170 $1,641,058 Central Valley 8 $112,791 $1,015,115 Inland Empire (Riverside & San Bernardino Counties) 9 $81,203 $730,827 Orange County 9 $66,723 $600,505 Central Coast 5 $69,920 $349,601 San D
Slide 18: Total Loans
Total Loans* (000’s) *Starting in the 4th quarter of 2014, covered and non-covered loans are combined (Purchase Credit Impaired or PCI) Before deferred loan fees, discount on PCI loans, allowance for loan losses, and loans held-for-sale Includes covered and non-covered loans for all periods presente
Slide 19: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q3 2017 earnings release & company reports
Slide 20: Credit Quality
CVB Financial Corp. Credit Quality
Slide 21: 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 22: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 23: 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 24: Profits
CVB Financial Corp. Profits
Slide 25: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 26: Net Interest Margin
Net Interest Margin Normalized* *Normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired)
Slide 27: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 28: Efficiency Ratio
Efficiency Ratio 42.44% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 29: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 1.65% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 30: Capital
CVB Financial Corp. Capital
Slide 31: Capital Ratios
Capital Ratios Adequately Capitalized Ratio Well-Capitalized Ratio September 31, 2017* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 17.1% Total Risk-based Capital Ratio 8.0% 10.0% 18.3% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.6% Tier 1 Leverage Ratio 4.0% 5.0% 11.8% * CVB Financial Corp. – Cons
Slide 32: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 33: Securities Portfolio
$2.18 Billion *Available For Sale Yield on securities portfolio = 2.42% for the 3rd Quarter 2017 Securities Portfolio* --$3.0 Billion-- $848.4 Million *Held to Maturity Source: Q3 2017 earnings release | Yield on securities represents the fully taxable equivalent (TE)
Slide 34: Available For Sale Securities Portfolio
*Available For Sale Securities Only Securities Portfolio* $2.18 Billion (000’s) $20,317 Mark-to-Market (Pre-tax)
Slide 35: CVBF Assets & Liabilities
‘CVBF’ Assets & Liabilities 9/30/17 Liabilities - $7.2 Billion 9/30/17 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 deposit **Includes Customer Repurchase Agreem
Slide 36: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion on PCI loans **Includes Available for Sale and Held to Maturity, TE 4.70% 2.42%
Slide 37: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 38: 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 39: Target Customer
Target Customer The best privately-held and/or family-owned businesses throughout California Annual revenues of $1-200 million Top 25% in their respective industry Full relationship banking Build 20-year relationships
Slide 40: Three Areas of Growth
Three Areas of Growth Acquisitions San Diego (2014) Los Angeles (2015) Oxnard (2015) Santa Barbara (2015) American Security Bank (2014) County Commerce Bank (2016) Valley Business Bank (2017) San Diego LPO (2017) Stockton LPO (2017)
Slide 41: Acquisition Strategy
Acquisition Strategy Target size: $200 million to $4 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) --Banks-- --Banking Teams-- In-market & ‘new’ markets
Slide 42: 2017 'Critical Few'
2017 ‘Critical Few’ Broaden Our Geographic Footprint Quality Loan Growth Expand Commercial Banking Enhance Cybersecurity Build Our Infrastructure For Tomorrow
Slide 43: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com
CVB Financial — Investor Presentation (November 2017) on 6ix