Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (October 2020)
35 slides from Cvb Financial's investor presentation, Oct 22, 2020
Slide 1: CVB Financial Corp. October 2020
Exhibit 99.1 CVB Financial Corp. October 2020
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: $13.8 Billion Gross Loans: $ 8.4 Billion Total Deposits (Including Repos):$11.6 Billion Total Equity: $ 1.9 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 9/30/2020 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 SNL Financial ranking of largest bank holding companies in CA, as of
Slide 5: Business Financial Centers and Locations
57 Business Financial Centers 1 Loan Production Office 3 CitizensTrust Locations Corporate Office Business Financial Centers Loan Production Office 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 20-year 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)
Slide 9: Acquisition Strategy
Acquisition Strategy Target size: $1 billion to $8 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Banks: Banking Teams: In-market New markets
Slide 10: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights Profitability ROATCE = 15.20% ROAA = 1.38% Efficiency Ratio = 42.6% Income Statement Net Income = $47.5 million Diluted EPS = $0.35 Pretax / Pre-Provision Income = $66.9 million Balance Sheet/ Liquidity $1.1 billion of PPP loans Noninterest deposits 62% of total deposits
Slide 11: Selected Ratios
Selected Ratios 2017 2018 2019 Q3’19 Q2’20 Q3’20 ROATCE 11.17% 15.18% 17.56% 16.53% 13.80% 15.20% NIM 3.63% 4.03% 4.36% 4.34% 3.70% 3.34% Cost of Funds 0.12% 0.16% 0.24% 0.23% 0.13% 0.11% Efficiency Ratio 43.84% 45.83% 40.16% 39.60% 39.75% 42.57% NIE % Avg. Assets 1.70% 1.89% 1.76% 1.68% 1.48% 1.44%
Slide 12: PPP Loans at October 9, 2020
PPP Loans at October 9, 2020 Summary Originated and funded 4,092 PPP loans for ~$1.10B 99.4% of the PPP portfolio originated with 24 month term Total Fees ~$35 million Fees recognized in Net Interest Income: Q3’20 = $6.7 million 2020 YTD = $13.5 million SBA Paycheck Protection Program ($ in Thousand
Slide 13: Net Income & Pretax-Pre Provision Income
Net income & Pretax-pre provision income PTPP income (Non -GAAP*) Net income PTPP ROAA (Non-GAAP*) ROAA * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annually Quarterly ($ in Millions)
Slide 14: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 15: Earning Asset Mix
Earning Asset Mix 2019 Q3 2020 Average Earning Assets $9.9 billion Average Earning Assets $12.5 billion Cash 2.0% —_ Investments 23% Investments 21% cbbank.com 15
Slide 16: Dividends – Consecutive Quarters
Dividends – 124 Consecutive Quarters 124 Consecutive Quarters More than 30 years of cash dividends since 1989 ANNUALIZED YTD * Dividend payout ratio calculated on per share basis.
Slide 17: Strong Capital Ratios
Strong Capital Ratios * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $764MM $655MM $551MM $481MM
Slide 18: Liquidity
Liquidity Investment Portfolio $2.8 Billion as of Q3 2020 Agency CMO 21% Municipal % Other 4% \gency MBS 68% Funding Availability $4.4 Billion as of Q3 2020 Correspondant Bank: 9% $28] FHLB - securities pledged: 67 FRB - loans pledged: 14 FHLB - loans pledged: 71: 3 2020 Q3.2019 QWs Loan to Deposit
Slide 19: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $35MM in remaining loan fair value discounts
Slide 20: COVID-Related Deferments
COVID-Related Deferments SEC Segment Remaining ($ in Thousands) C&I* 1,297 CRE 65,866 SBA (504) 1,433 Total $ 68,597 CRE by Property Type Remaining ($ in Thousands) % of CRE Property Type Office 33,356 3% Retail 10,553 1% Hospitality 10,500 19% Other 5,239 1% Multi-Family 3,151 1% Industrial 3,067 0
Slide 21: COVID-Related Deferments (Cont.)
COVID-Related Deferments (Cont.) 21 * Through October 9th
Slide 22: COVID Impacted Industries
COVID Impacted Industries 22 ($ in Millions) Balance as of 9/30/2020 Deferral Status as of 10/9/2020 Loan Segments Total % of Total Loans Classified1 % of Loan Segment Classified $ Balance % of Loan Segment % of Classified Deferred CRE $ 1,829.9 21.8% $ 12.1 0.7% $ 54.4 3% 0% Office 992.2 11.8% 5.2
Slide 23: Q3 2020 Allowance by Portfolio
Q3 2020 Allowance by Portfolio CECL Update Highlights No credit provision in Q3 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) 6/30/2020 9/30/2020 V
Slide 24: Loans by Region
(000’s) # of Center Locations (9/30/20) Average Loans per Location Total Loans* (9/30/20) % Los Angeles County 21 $171,883 $ 3,609,538 42.9% Central Valley 9 $146,269 1,316,422 15.7% Orange County 10 $111,931 1,119,311 13.3% Inland Empire (Riverside & San Bernardino Counties) 10 $118,303 1,183,026 1
Slide 25: Loans by Type
Loans by Type CRE $5.43B C&I $0.82B Other $2.16B
Slide 26: Commercial Real Estate Loans by Owner and Collateral Type
Owner Type Commercial Real Estate Loans Collateral Type
Slide 27: CRE by Collateral Origination Year
CRE by Collateral Origination Year Collateral Type Balance ($ in Millions) % of Owner Occupied LTV at Origination Avg. Size ($ in Thousands) 2020 2019 2018 2017 2016 or earlier Industrial $ 1,842 54% 55% $ 1,386 9% 15% 14% 17% 45% Office 992 25% 59% 1,575 18% 14% 11% 14% 43% Retail 771 13% 53% 1,662
Slide 28: C&I by Industry
C&I by Industry Industry Balance ($ in Millions) % of C&I Total Manufacturing $ 144 18% Real Estate Rental and Leasing 141 17% Wholesale Trade 104 13% Finance and Insurance 65 8% Health Care and Social Assistance 53 7% Construction 45 5% Transportation and Warehousing 41 5% Arts, Entertainment, and
Slide 29: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 30: Deposits by Region
Deposits by Region (000’s) # of Center Locations (9/30/20) Total Deposits (6/30/20) Total Deposits (9/30/20) Los Angeles County 21 $4,537,092 $4,734,333 Inland Empire (Riverside & San Bernardino Counties) 10 $3,383,986 $3,475,961 Orange County 10 $1,728,467 $1,615,459 Central Valley 9 $1,291,309 $1,
Slide 31: Cost of Deposits
Cost of Deposits Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion
Slide 32: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 33: Reconciliation of Return on Average Tangible Common Equity
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 34: Reconciliation of PTPP Return on Average Assets
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 35: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com