Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (October 2018)
42 slides from Cvb Financial's investor presentation, Oct 31, 2018
Slide 1: CVB Financial Corp. November 2018
Exhibit 99.1 CVB Financial Corp. November 2018
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: $7.6 Billion Total Deposits (Including Repos):$9.5 Billion Total Equity: $1.8 Billion Source: Q2 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 33 Years 12 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 23 Years 2 Years Dave F. Farnsworth Executive Vice President Chief Credit Officer 33 Years 2 Years David C.
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 6 Years 61 George Borba Jr. - Vice Chairman 6 Years 50 Steve Del Guercio 6 Years 56 Kristina Leslie 3 Years 53 Hal Oswalt 4 Years 70 Anna Kan 2 Years 44 Rod Guerra 1 Year 62 Chris Myers - CEO 12 Years 56
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 (MRQ) (9/30/18) 1 Wells Fargo & Company $ 1,872,981 2 First Republic Bank(1) $96,094 3 SVB Financial Group $58,140 4 East West Bancorp, Inc. $39,073 5 PacWest Bancorp $24,782 6
Slide 8: Bank Accomplishments & Ratings
*As ranked among domestic banks with $5 to $50 billion in assets Bank Accomplishments & Ratings 166 Consecutive Quarters of Profitability 116 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 68 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 Total Deposits (9/30/17) Total Deposits (9/30/18) Los Angeles County 27 $2,438,457 $3,648,101 Inland Empire (Riverside & San Bernardino Counties) 12 $2,065,165 $2,593,616 Orange County 13 $1,075,030 $1,470,313 Central Valley 9 $1,155,658 $1,108,421 Central Coa
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q3 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: Total Loans by Region
(000’s) # of Center Locations Average Loans per Location Total Loans* (9/30/18) Los Angeles County 27 $125,445 $3,387,019 Inland Empire (Riverside & San Bernardino Counties) 12 $91,530 $1,098,359 Central Valley 9 $116,571 $1,049,136 Orange County 13 $74,692 $970,999 Central Coast 5 $85,281 $426,405
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q3 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 $2.6 Billion
$1.81 Billion *Available For Sale Yield on securities portfolio = 2.49% for the 3rd Quarter 2018 Securities Portfolio* - $2.6 Billion $759.0 Million *Held to Maturity Source: Q3 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* $1.81 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* *Tax equivalent, including accretion on acquired loans, excluding accretion on covered loans (Purchase Credit Impaired)
Slide 26: CVBF Assets
‘CVBF’ Assets 9/30/17 Assets - $8.3 Billion 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 deposit
Slide 27: CVBF 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 9/30/18 Liabilities - $9.7 Billion 9/30/17 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 15, 2019 Merger Completed Fiserv Systems Conversion Consolidation of 8-10 center locations (‘2’ per month) Acquisition Fully Integrated
Slide 31: Efficiency Ratio
Efficiency Ratio Excludes $6.6 million acquisition related expense (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 $6.6 million acquisition related expense (Community Bank)
Slide 33: Capital
CVB Financial Corp. Capital
Slide 34: Capital Ratios
Capital Capital Ratios Adequately Capitalized Ratio Well-Capitalized Ratio September 30, 2018* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 13.2% Total Risk-based Capital Ratio 8.0% 10.0% 14.0% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 12.9% Tier 1 Leverage Ratio 4.0% 5.0% 12.5% * 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: 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 39: 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 40: 2018 'Critical Few'
2018 ‘Critical Few’ Grow Loans Through Relationship Banking Strategy Grow Core Deposits Execute on Community Bank Integration Prepare for $10 Billion and Beyond Fraud Prevention
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: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com