Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Q4 2024 Earnings Presentation
60 slides from Cvb Financial's earnings presentation, Jan 23, 2025
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. January 2025
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. (CVBF) at a glance
Total Assets: $15.2 Billion Gross Loans: $ 8.5 Billion Total Deposits (Including Repos):$12.2 Billion Total Equity: $ 2.2 Billion CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974.
Slide 4: Holding company for Citizens Business Bank: accomplishments and ratings
As of 01/22/2025 CVB Financial Corp. is the holding company for Citizens Business Bank SNL Financial ranking of largest bank holding companies in CA, as of 12/31/2023 Bank Accomplishments & Ratings 191 Consecutive Quarters of Profitability 141 Consecutive Quarters of Cash Dividends Forbes, Best Bank
Slide 5: Business Financial Centers and CitizensTrust Locations
62 Business Financial Centers 3 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 DeNovo 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: 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 10: 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 11: CVBF Balance Sheet Profile
CVBF Balance Sheet Profile TCE Tier 1 Leverage CET1 Tier 1 RBC Total RBC 9.8% 11.5% 16.2% 16.2% 17.1% Assets $15.2B Securities $4.9B Loans $8.5B Deposits & Repos $12.2B $12.7B December 31, 2024 Capital Ratios as of December 31, 2024 Funding
Slide 12: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Profitability ROATCE = 14.31% ROAA = 1.30% Efficiency Ratio = 47.3% Income Statement Q4’24 Net Income = $51 million / EPS = $0.36 $16.8 million gain on sale/leaseback transactions $16.7 million loss on sale of AFS securities $3 million recapture of provision for credit l
Slide 13: Selected Ratios
Selected Ratios 2022 2023 2024 Q4’23 Q3’24 Q4’24 ROATCE* 18.85% 18.48% 14.95% 16.21% 14.93% 14.31% NIM 3.30% 3.31% 3.09% 3.26% 3.05% 3.18% Cost of Deposits 0.05% 0.41% 0.88% 0.62% 0.98% 0.93% Cost of Funds 0.06% 0.83% 1.32% 1.09% 1.47% 1.13% Efficiency Ratio 38.98% 42.00% 46.55% 47.60% 46.53% 47.34%
Slide 14: Selected Highlights (Annual Income Statement)
Selected Highlights ($ in Thousands) 2022 2023 2024 Net Interest Income $ 505,513 $ 487,990 $ 447,347 Noninterest Income 49,989 59,330 54,474 Noninterest Expense, excluding Regulatory Assessments 211,078 215,874 223,493 Regulatory Assessments 5,477 17,710 10,091 Total Noninterest Expense 216,555 229
Slide 15: Selected Highlights (Quarterly Income Statement)
Selected Highlights ($ in Thousands) Q4’23 Q3’24 Q4’24 Net Interest Income $ 119,356 $ 113,619 $110,418 Noninterest Income 19,163 12,834 13,103 Noninterest Expense, excluding Regulatory Assessments 54,637 56,732 56,352 Regulatory Assessments 11,293 2,103 2,128 Total Noninterest Expense 65,930 58,835
Slide 16: Selected Highlights: Average Balance Sheet
Selected Highlights ($ in Thousands) Q4’23 Q3’24 Q4’24 Average Cash & Cash Equivalents $ 593,110 $ 1,379,054 $ 637,004 Average Loans 8,856,654 8,605,270 8,522,587 Average Total Securities 5,328,208 5,080,033 4,936,514 Average Noninterest-bearing Deposits 7,450,856 7,124,952 7,116,050 Average Total D
Slide 17: Earnings Per Share
Earnings Per Share 191 Consecutive Quarters of Profitability since 1977
Slide 18: Dividends – Consecutive Quarters
Dividends – 141 Consecutive Quarters 141 Consecutive Quarters More than 30 years of cash dividends since 1989 Dividend payout ratio calculated on per share basis.
Slide 19: Q4 & Q3 2024 Sale / Leaseback and Repositioning
Q4 & Q3 2024 Sale / Leaseback Sale Leaseback Sale 3 banking centers & 1 admin office $45 million net cash proceeds $26 million pre-tax gain Leaseback 15-18 years lease term $1.8 million annual incremental occupancy expense Investment Securities Sale of AFS $467 million AFS Book Value Average yield <
Slide 20: Balance Sheet Repositioning
Balance Sheet Repositioning -$1.0B $13.5 billion $14.5 billion -$1.1B $12.7 billion $13.8 billion
Slide 21: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 22: Net Interest Margin Trend
Net Interest Margin Trend * Source: As calculated by S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX
Slide 23: Return on Average Assets
Return on Average Assets * Source: As calculated by S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX
Slide 24: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity * Source: As calculated by S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX
Slide 25: CET1 Ratio Trend
CET1 Ratio Trend (%) * Source: S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX
Slide 26: TCE Ratio Trend
TCE Ratio Trend (%) * Source: S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX Suncrest Q1’22 ASR program: ~3mm shares
Slide 27: Total Deposits & Customer Repos
Total Deposits & Customer Repos Cost of Interest-Bearing Deposits and Repos December 2024 2.15% December 2023 1.60%
Slide 28: Deposit & Repo Quarterly Avg. Trends
Deposit & Repo Quarterly Avg. Trends
Slide 29: Deposit Growth
Deposit Growth Suncrest +$1.2B Q1’22 Brokered $300mm Suncrest $1.2B
Slide 30: Cost of Deposits
Cost of Deposits For the Last 5 Years CVBF Ranked Among the 5 Lowest Cost of Deposits of the 50 Banks in the KRX Index Source: As calculated by S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX (50 Banks)
Slide 31: Cost of Deposits: Monthly Trends
Cost of Deposits: Monthly Trends CVBF Cost of Deposit Detail
Slide 32: Loans by Type
Loans by Type CRE $6.51B C&I $0.93B Other $1.10B
Slide 33: Loan Trends – Quarterly Averages
Loan Trends – Quarterly Averages ($ in Millions) 3.7% decline 2.1% decline 6.4% decline 2.5% decline
Slide 34: Line Utilization Trends
Line Utilization Trends Total D&L C&I
Slide 35: ACL Nine Quarter Trend
ACL Nine Quarter Trend ($ in Millions) * Total Balance
Slide 36: Classified Loan Trend
Classified Loan Trend ($ in Millions)
Slide 37: Classified Loans / Total Loans
Classified Loans / Total Loans (%) * Source: S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX
Slide 38: Net Charge-Offs / Average Loans
Net Charge-Offs / Average Loans (%) * Source: S&P Capital IQ. Unweighted Average NASDAQ Regional Banking Index KRX
Slide 39: Appendix
Appendix Non-GAAP Reconciliation
Slide 40: Owner/Non-Owner Occupied CRE Loans
Owner/Non-Owner Occupied Commercial Real Estate Loans Collateral Type
Slide 41: CRE by Collateral
CRE by Collateral Collateral Type Balance % of Owner Occupied LTV at Origination Avg. Size Classified Classified (Non- Owner) Classified (Owner) Industrial $ 2,217 48% 49% $ 1.62 $ 19.59 $ 10.40 $ 9.19 Office 1,039 27% 55% 1.67 0.00 0.00 0.00 Retail 887 11% 47% 1.70 25.10 25.10 0.00 Multi-Family 812
Slide 42: CRE by Collateral and Origination
CRE by Collateral and Origination Balance Distribution by Origination Year Average OLTV By Origination Year Collateral Type Balance 2024 2023 2022 2021 2020 2019 or earlier 2024 2023 2022 2021 2020 2019 or earlier Industrial $ 2,217 6% 9% 19% 19% 10% 37% 43% 43% 44% 50% 50% 53% Office 1,039 4% 3% 24
Slide 43: CRE by Collateral and Reset/Maturity
CRE by Collateral and Reset/Maturity Collateral Type Balance ($ in Millions) Balance Maturing Next 24 months ($ in Millions) Rate Resets Next 24 Months ($ in Millions) Maturity & Rate Reset % of Loans Industrial $ 2,217 $ 241 $ 144 17% Office 1,039 125 122 24% Retail 887 119 125 28% Multi-Family 812
Slide 44: CRE by Collateral and Loan Size
CRE by Collateral and Loan Size ($ in Millions) Loan Amount Industrial Office Retail Multi-Family Other Farmland Medical Other RE Rental and Leasing Total Greater than $20M $ 0 $ 23 $ 0 $ 0 $ 0 $ 0 $ 0 $ 37 $ 60 $10M to $20M 106 112 96 87 11 78 0 24 514 $5M to $10M 444 237 136 130 147 76 64 41 1,275
Slide 45: CRE Office Loans by Major MSA
CRE Office Loans by Major MSA Los Angeles County Total Balance of $371mm (190 loans) San Francisco County Total Balance of $164,309 (1 loan) San Diego County Total Balance of $73mm (21 loans) Note: Only shows the office loans that are in the major MSA.
Slide 46: Greater LA Business Density Distribution
Greater LA Business Density Distribution Note: Darker Shaded areas represent higher density of businesses within each submarket (HBD) West LA includes Santa Monica and Century City Central LA includes Downtown LA North LA includes Pasadena and Burbank Other LA (includes remaining areas of LA) Market
Slide 47: Greater SD Business Density Distribution
Greater SD Business Density Distribution Area ($ in thousands) $ Loan Balance % of Owner Occupied LTV at Origination Avg. Size Classified Downtown SD (HBD) $ 3,697 41% 54% $ 1,232 $ 0 Other SD 69,017 0% 53% 3,834 0 Total $ 72,714 2% 53% $ 3,463 $ 0 Darker shaded areas represent Higher Business Densi
Slide 48: Greater SF Business Density Distribution
Greater SF Business Density Distribution Area ($ in thousands) $ Loan Balance % of Owner Occupied LTV at Origination Avg. Size Classified Downtown SF (HBD) $ 164 0% 3% $ 164 $ 0 Other SF 0 0% 0% 0 0 Total $ 164 0% 3% $ 164 $ 0 Darker shaded areas represent Higher Business Density (HBD)
Slide 49: C&I by Industry
C&I by Industry Industry Balance ($ in Millions) % of C&I Total Classified ($ in Millions) Real Estate Rental and Leasing $ 206 22% $ 0.13 Manufacturing 120 13% 3.04 Construction 83 9% 0.01 Wholesale Trade 80 9% 4.38 Arts, Entertainment, and Recreation 65 7% 0.00 Professional, Scientific, and Techni
Slide 50: Loans by Region
($ in Thousands) # of Center Locations (12/31/24) Average Loans per Location Total Loans (12/31/24) % Los Angeles County 21 $ 145,437 $ 3,054,169 35.8% Central Valley and Sacramento 15 135,765 2,036,468 23.8% Orange County 10 115,862 1,158,621 13.6% Inland Empire (Riverside & San Bernardino Counties
Slide 51: Deposits by Region
Deposits by Region ($ in Thousands) # of Center Locations (12/31/24) Total Deposits (9/30/24) Total Deposits (12/31/24) Average Deposits per Center (12/31/24) Los Angeles County 21 $5,064,135 $4,879,964 $232,379 Inland Empire (Riverside & San Bernardino Counties) 9 3,531,569 3,404,585 378,287 Centra
Slide 52: Diverse Deposit Base
Diverse Deposit Base Consumer Construction 28% 8% Other Industries 1% Finance and Insurance T% Retail Trade. Property 2% Management 6% Educational Services ‘Manufacturing b% Transportation and. Warehousing 3% Other Real Estate Rental 9 Professional, Scientific, and Public Administration Technical Se
Slide 53: Business vs Consumer Deposits
Business vs Consumer Deposits Q4 2024 Q4 2023
Slide 54: Deposit Relationship Tenure
Deposit Relationship Tenure Q1 2022 Q4 2023 Q4 2024 ~75% of our customer deposit relationships have banked with CBB for 3 years or more
Slide 55: Economic Forecast — GDP
3.50 3.00 2.50 2.00 1,50 1.00 0.50 (0.50) Economic Forecast — GDP Real GDP Growth eg Ke Fa a SA SS 2-Q3 2024 Forecast —e=@4 2024 Forecast cbbank.com
Slide 56: Economic Forecast – Unemployment
Economic Forecast – Unemployment
Slide 57: Economic Forecast – CRE Price
Economic Forecast – CRE Price
Slide 58: 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 59: 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 60: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com