Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (October 2022)
37 slides from Cvb Financial's investor presentation, Oct 20, 2022
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. October 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. at a glance
Total Assets: $16.3 Billion Gross Loans: $ 8.8 Billion Total Deposits (Including Repos):$14.3 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 10/14/2022 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 182 Consecutive Quarters of Profitability 132 Consecutive Quarters of Cash Dividends Ranked #4 Forbes,
Slide 5: Business Financial Centers and CitizensTrust Locations
63 Business Financial Centers 4 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 (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: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Profitability ROATCE = 21.34% ROAA = 1.52% NIM = 3.46% Efficiency Ratio = 36.59% Income Statement Q3 Net Income = $64.6 million $2.0 million provision for credit losses Q3 Diluted EPS =$0.46 Balance Sheet Growth QTR/QTR Core loan growth of $131.5 million ~ 6% annualized
Slide 11: Selected Ratios
Selected Ratios 2019 2020 2021 Q3’21 Q2’22 Q3’22 ROATCE 17.56% 14.25% 15.93% 14.62% 18.67% 21.34% NIM 4.36% 3.59% 2.97% 2.89% 3.16% 3.46% Cost of Funds 0.24% 0.13% 0.05% 0.04% 0.04% 0.05% Efficiency Ratio 40.16% 41.40% 41.09% 42.27% 37.24% 36.59% NIE % Avg. Assets 1.76% 1.49% 1.24% 1.22% 1.20% 1.25%
Slide 12: Pretax-Pre Provision Income
Pretax-Pre Provision Income PTPP income (Non -GAAP*) PTPP ROAA (Non-GAAP*) * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. ($ in Millions)
Slide 13: Quality Loan Growth
Quality Loan Growth Balances as of period-end ($ in Millions) 6% Annualized Core Loan Growth* 7% Core Loan Growth* * Excluding Suncrest and PPP loans.
Slide 14: Line Utilization Trends
Line Utilization Trends Total D&L C&I
Slide 15: Credit Quality
Credit Quality NPA % Total Assets 2018 2019 2020 2021 a322 Allowance for Credit Losses 0.66% 2018 Classified Loans % Total Loans 0.94% 2019 2020 2021 @322 ' 9 me z 3 S 3 Es 2 mle & 8 (0.01%) 5 : = 2018 2019 a a aa 2018 2019 2020 2021 YTD 2022 mmmACL AC a otal! Living San ee acy TB Bc1s7.5 of oon cre
Slide 16: Asset Sensitive Balance Sheet
Asset Sensitive Balance Sheet 43% 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 300bps increase in Fed Funds Rate
Slide 17: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 18: Earning Assets
Earning Assets ($ in Millions) Average Earning Assets Yields
Slide 19: Cost of Deposits
Cost of Deposits Cost of Funds = 5 bps * Source: S&P Capital IQ. Regulated depositories with assets $2 - $35 billion in CA, AZ, HI, NV, OR & WA.
Slide 20: 2022 Share Repurchase Program
2022 Share Repurchase Program ASR $70 million (2,994K shares retired) 10b5-1 Stock Repurchases (1,915K shares) 232K shares repurchased in Q3 Repurchase Program up to 10 Million Shares YTD 2022 – 4.9 million shares repurchased Impact of Suncrest Acquisition and Share Repurchase Program on CVBF Common
Slide 21: Dividends – Consecutive Quarters
Dividends – 132 Consecutive Quarters 132 Consecutive Quarters More than 30 years of cash dividends since 1989 * Dividend payout ratio calculated on per share basis.
Slide 22: Strong Capital Ratios
Strong Capital Ratios $829MM $713MM $548MM $419MM * Source: S&P Capital IQ. Regulated depositories with assets $2 - $35 billion in CA, AZ, HI, NV, OR & WA.
Slide 23: Q3 2022 Allowance by Portfolio
Q3 2022 Allowance by Portfolio CECL Update Highlights Provision for credit loss of $2M in Q3 2022 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 6/3
Slide 24: Loans by Type
Loans by Type CRE $6.69B C&I $0.95B Other $1.14B
Slide 25: Loans by Region
(000s) # of Center Locations (9/30/22) Average Loans per Location Total Loans (9/30/22) % Los Angeles County 21 $157,722 $ 3,312,170 37.8% Central Valley and Sacramento 15 138,848 2,082,727 23.7% Orange County 10 105,513 1,055,129 12.0% Inland Empire (Riverside & San Bernardino Counties) 10 101,673
Slide 26: Owner/Non-Owner Occupied Commercial Real Estate Loans
Owner/Non-Owner Occupied 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) 2022 2021 2020 2019 2018 2017 2016 or earlier Industrial $ 2,210 49% 51% $ 1,555 16% 21% 13% 8% 8% 10% 24% Office 1,109 23% 55% 1,653 15% 16% 19% 10% 7% 8% 25%
Slide 28: C&I by Industry
C&I by Industry Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 207 22% Manufacturing 160 17% Wholesale Trade 100 10% Construction 84 9% Health Care and Social Assistance 52 5% Arts, Entertainment, and Recreation 49 5% Professional, Scientific, and Technical Services
Slide 29: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 30: Relationship-Centered Deposit Base
Relationship-Centered Deposit Base At September 30, 2022
Slide 31: Deposits by Region
Deposits by Region (000s) # of Center Locations (9/30/22) Total Deposits (6/30/22) Total Deposits (9/30/22) Average Deposits per Center (9/30/22) Los Angeles County 21 $ 5,572,164 $5,546,882 $264,137 Inland Empire (Riverside & San Bernardino Counties) 10 3,873,394 3,837,972 383,797 Orange County 10
Slide 32: Relationship Banking Model
Relationship Banking Model Relationship Manager (Bank) Real Estate International Services Treasury Management Specialty Banking Construction Lending CitizensTrust/ Wealth Management Bankcard/ Processing SBA Citizens Home Lending Marketing Citizens Equipment Financing Government Services Customer Cre
Slide 33: Digital and Technology Solutions
Digital and Technology Solutions Leveraging technology, digital transformation and data to better serve our clients and associates Recently Completed Powerful personal and business online banking and mobile apps with Remote Deposit Personal financial management integration Same-day ACH, Personal Ext
Slide 34: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 35: 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 36: 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 37: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com