Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (June 2016)
47 slides from Cvb Financial's investor presentation, Jun 6, 2016
Slide 1: CVB Financial Corp. June 2016
Exhibit 99.1 CVB Financial Corp. June 2016
Slide 2: Safe Harbor
Safe Harbor 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 expectations regard
Slide 3: CVB Financial Corp. (CVBF) at a glance
Total Assets: $7.9 Billion Gross Loans: $4.2 Billion Total Deposits (Including Repos):$6.8 Billion Total Equity: $972 Million Source: Q1 2016 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 10 Years Richard C. Thomas Executive Vice President Chief Financial Officer 6 Years 5 Years James F. Dowd Executive Vice President Chief Credit Officer 39 Years 8 Years David C. Harvey
Slide 5: Board of Directors
Board of Directors Name CVB Experience Age Ray O’Brien - Chairman 4 Years 59 George Borba Jr. - Vice Chairman 3 Years 48 Steve Del Guercio 4 Years 54 Robert Jacoby 11 Years 74 Kristina Leslie 1 Year 51 Hal Oswalt 2 Years 68 San Vaccaro 17 Years 83 Chris Myers - CEO 10 Years 54
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 Source: SNL Financial | *Bank only, no holding company Rank Name Asset Size (3/31/16) 1 Wells Fargo & Company $1,849,182 2 First Republic Bank* $62,103 3 SVB Financial Group $43,574 4 East West Bancorp $33,109 5 Pacwest Bancorp $
Slide 8: Ranked rankings
RANKED # ] Ranked #!, Holding B® CITIZENS L> BUSINESS BANK A Financial Services ‘al Services Company a: al Housing Lene
Slide 9: Other Bank Accomplishments & Ratings
Other Bank Accomplishments & Ratings 156 Consecutive Quarters of Profitability 106 Consecutive Quarters of Cash Dividends BauerFinancial Report Five Star Rating (December 2015) 83 Consecutive Quarters Fitch Rating BBB (September 2015)
Slide 10: Our Markets
CVB Financial Corp. Our Markets
Slide 11: Existing Locations
Existing Locations* 44 Business Financial Centers 8 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust Ventura CBC – NEW Opened January 2015 Santa Barbara CBC– NEW Opened December 2015 New County Commerce Bank Loc
Slide 12: New Acquisition County Commerce Bank 'CNYB'
New Acquisition County Commerce Bank ‘CNYB’
Slide 13: Ventura/Santa Barbara Counties
Ventura/Santa Barbara Counties Citizens Business Bank County Commerce Bank Santa Barbara
Slide 14: County Commerce Bank 'CNYB' Acquisition
County Commerce Bank ‘CNYB’ Acquisition Date: February 29, 2016 Overview CNYB Balance Sheet (000’s) 12/31/15 Headquarters Oxnard, CA Establishment Date 2003 Total Branches 4 Total Assets $256,100 Total Loans $164,400 Total Deposits $225,800 Acquisition Price = $41.25 Million
Slide 15: New Banking Teams (2014/2015)
New Banking Teams (2014/2015) Location # of New Hires Central Valley Agribusiness 3 San Diego 5 Los Angeles 4 Oxnard 4 Santa Barbara 3 Newport Beach 6 Total 25
Slide 16: Financial Performance
CVB Financial Corp. Financial Performance
Slide 17: Deposits by region
Deposits* (000’s) # of Center Locations Total Deposits (3/31/15) Total Deposits (3/31/16) Los Angeles County 18 $2,347,804 $2,426,131 Inland Empire (Riverside & San Bernardino Counties) 9 $1,992,402 $1,966,085 Orange County 9 $907,308 $970,405 Central Valley 9 $909,278 $914,646 Ventura & Santa Barba
Slide 18: Total Deposits
Total Deposits* (000’s) *Interest Bearing Deposits includes REPOs
Slide 19: Deposit Cost Comparison
Deposit Cost Comparison Source: Q1 2016 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 20: Total Loans by region
(000’s) # of Center Locations Average Loans per Location Total Loans* (3/31/2016) Los Angeles County 18 $90,736 $1,633,241 Central Valley 9 $85,369 $768,318 Inland Empire (Riverside & San Bernardino Counties) 9 $73,613 $662,519 Orange County 9 $57,252 $515,269 Ventura/Santa Barbara Counties 6 $43,01
Slide 21: 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, and loans held for sale Includes covered and non-covered loans for all periods presented
Slide 22: Loan Portfolio Composition
Source: Q1 2016 earnings release & company reports Loan Portfolio Composition Total Loans by Type
Slide 23: Credit Quality
CVB Financial Corp. Credit Quality
Slide 24: 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 25: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 26: 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 27: Profits
CVB Financial Corp. Profits
Slide 28: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 29: Earnings
Earnings (000’s) 2012 2013 2014 2015 3 Months to 3/31/2016 Net Interest Income $236,950 $216,266 $236,514 $252,942 $62,516 Provision for Loan Losses $0 $16,750 $16,100 $5,600 $0 Other Operating Income/Expenses (Net) ($122,257) ($88,741) ($89,817) ($107,176) (25,681) Income Taxes ($37,413) ($48,667)
Slide 30: Net Interest Margin
Net Interest Margin *Normalized tax-equivalent excludes accretion on covered loans (Purchase Credit Impaired) Normalized*
Slide 31: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 32: Efficiency Ratio
Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 48.26%
Slide 33: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 1.79% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 34: Capital
CVB Financial Corp. Capital
Slide 35: Capital Ratios
Capital Ratios * CVB Financial Corp. – Consolidated Adequately Capitalized Ratio Well-Capitalized Ratio March 31, 2016* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 16.74% Total Risk-based Capital Ratio 8.0% 10.0% 18.00% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.27% Tier 1 Leverage Ratio 4.0% 5.0
Slide 36: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 37: Securities Portfolio
Source: Q1 2016 earnings release | Yield on securities represents the fully taxable equivalent $2.29 Billion *Available For Sale Yield on securities portfolio = 2.52% for the 1st Quarter 2016 Securities Portfolio* --$3.1 Billion-- $812.9 Million *Held to Maturity
Slide 38: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.29 Billion Mark-to-Market (Pre-tax) (000’s) *Available For Sale $58,975
Slide 39: 'CVBF' Assets & Liabilities
‘CVBF’ Assets & Liabilities 3/31/16 $6.9 Billion **Includes Customer Repurchase Agreements 3/31/16 $7.9 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
Slide 40: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion **Includes Available for Sale and Held to Maturity, TE
Slide 41: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 42: 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 43: 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 44: Three Areas of Growth
Three Areas of Growth Acquisitions San Diego (2014) Oxnard (2015) American Security Bank (2014) County Commerce Bank (2016) Santa Barbara (2015)
Slide 45: Acquisition Strategy
Target size: $200 million to $2 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Acquisition Strategy --Banks-- --Trust/Investment-- Target size: AUM of $200 million to $1 billion In California --Banking Teams-- In- market & ‘new’ markets
Slide 46: 2016 'Critical Few'
2016 ‘Critical Few’ Quality Loan Growth Expand Our Footprint DeNovo Growth Acquisition Relationship Banking Cyber Security Recruit, Retain & Train Key People
Slide 47: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com