Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (March 2018)
41 slides from Cvb Financial's investor presentation, Mar 6, 2018
Slide 1: CVB Financial Corp. March 2018
Exhibit 99.1 CVB Financial Corp. March 2018 cbbank.com
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 our current business plans and expectations a
Slide 3: CVB Financial Corp. (CVBF)
CVB Financial Corp. (CVBF) ï,§ Total Assets: $8.3 Billionï,§ Gross Loans: $4.8 Billionï,§ Total Deposits (Including Repos): $7.1 Billionï,§ Total Equity: $1.1 Billion ïƒ~ Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974 Source: Q4 2017 e
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 33 Years 11 Years E. Allen Nicholson Executive Vice President 22 Years 1 Year Chief Financial Officer Dave F. Farnsworth Executive Vice President 33 Years 1 Year Chief Credit Officer David C. Ha
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien—Chairman 5 Years 61 George Borba Jr.—Vice Chairman 5 Years 50 Steve Del Guercio 5 Years 56 Kristina Leslie 2 Years 53 Hal Oswalt 4 Years 69 Anna Kan 1 Year 44 Rod Guerra New 62 Chris Myers—CEO 11 Years 55 cbbank.com 5
Slide 6: Who is CVB Financial Corp.?
Who is CVB Financial Corp.? cbbank.com
Slide 7: Largest Bank Holding Companies Headquartered in California
Largest Bank Holding Companies Headquartered in California Rank Name Asset Size (12/31/17) 1 Wells Fargo & Company $1,951,757 2 First Republic Bank* $87,781 3 SVB Financial Group $51,214 4 East West Bancorp $37,150 5 PacWest Bancorp $24,995 6 Cathay General Bancorp $15,639 7 Hope Bancorp, Inc. $14,2
Slide 8: Other Bank Accomplishments & Ratings
Other Bank Accomplishments & Ratings 163 Consecutive Quarters of Profitability 113 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) Ranked Top 5 Bank in US four consecutive years* Bank Direc
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 51 Business Financial Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers CitizensTrust cbbank.com 10
Slide 11: Financial Performance
Financial Performance cbbank.com
Slide 12: Deposits
Deposits* # of Center Total Deposits Total Deposits (000’s) Locations (12/31/16) (12/31/17) Los Angeles County 18 $2,517,252 $2,330,557 Inland Empire 9 $2,090,209 $2,161,908 (Riverside & San Bernardino Counties) Central Valley 8 $927,572 $1,112,886 Orange County 9 $1,075,402 $1,143,841 Central Coast
Slide 13: Total Deposits
Total Deposits* $8,500,000 $7,500,000 $6,500,000 $5,500,000 $4,500,000 $3,500,000 $2,500,000 $1,500,000 $500,000 (000’s)Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 2016 2017 Non-Int Bearing Dep Interest Bearing Deposit
Slide 14: Deposit Cost Comparison
Deposit Cost Comparison 1.00% 0.90% CVBF Peers 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 2016 2017 Source: Q4 2017 earnings release & other company filings, SNL F
Slide 15: Total Loans
Total Loans* Average # of Center Total Loans* Loans per Locations (12/31/17) Location (000’s) Los Angeles County 18 $91,682 $1,650,273 Central Valley 8 $131,763 $1,054,106 Inland Empire 9 $82,814 $745,323 (Riverside & San Bernardino Counties) Orange County 9 $65,898 $593,080 Central Coast 5 $70,139
Slide 16: Total Loans
Total Loans* $5,000,000 $4,800,000 $4,600,000 $4,400,000 $4,200,000 $4,000,000 $3,800,000 $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (000’s) 2010 20
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Other, 1.3% Receivables, Dairy, Livestock & 1.5% SFR Mortgage, Agribusiness, 4.9% 7.2% Multi-Family, 6.5% Commercial & Industrial, 10.9% Construction RE, 1.6% Commercial RE-Non-Owner, 40.8% Commercial RE -Owner Occupied, 25.3% So
Slide 18: Credit Quality
CVB Financial Corp. Credit Quality
Slide 19: Non-Performing Assets
Non-Performing Assets* $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (000’s) 2009 2010 2011 2012 2013 2014 2015 2016 2017 Non-Performing Loans OREO *
Slide 20: Classified Loans
Classified Loans* $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- (000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Non-Covered loans| Starting in the 4th quarte
Slide 21: Loans: Net Charge-Offs
Loans: Net Charge-Offs* -$10,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 $10,000 $20,000 $30,000 Jan 2012 to Dec 2017 = $19.0 million in Net Recoveries $40,000 $50,000 $60,000 $70,000 (000’s) Net Charge-Offs/Recoveries *Non-Covered | Starting in the 4th quarter of 2014, covered and non-cover
Slide 22: Profits
CVB Financial Corp. Profits
Slide 23: Net Income
Net Income $110,000 $104.4MM $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $-(000’s) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge $13.2 million additional tax exp.
Slide 24: Net Interest Margin
Net Interest Margin 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Normalized* *Normaliz
Slide 25: Efficiency & Expenses
Efficiency & Expenses cbbank.com
Slide 26: Efficiency Ratio
Efficiency Ratio 90.00% 80.00% 70.00% 60.00% 50.00% 41.81% 40.00% 30.00% 20.00% 10.00% 0.00% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 2016 2017 Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge cbbank
Slide 27: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 3.50% 3.00% 2.50% 2.00% 1.67% 1.50% 1.00% 0.50% 0.00% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 2016 2017 Non-Interest Expense as a % of Average Assets $20.4 million FHLB prepayment charge $13.9 m
Slide 28: Capital
CVB Financial Corp. Capital
Slide 29: Capital Ratios
Capital Ratios Adequately Well-Capitalized December 31, 2017* Capitalized Ratio Ratio Tier 1 Risk-based Capital Ratio 6.0% 8.0% 16.9% Total Risk-based Capital Ratio 8.0% 10.0% 18.0% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.4% Tier 1 Leverage Ratio 4.0% 5.0% 11.9% * CVB Financial Corp. – Conso
Slide 30: Securities & Investments
Securities & Investments cbbank.com
Slide 31: Securities Portfolio
Securities & Investments cbbank.com Securities Portfolio* —$2.9 Billion— Yield on securities portfolio = 2.42% for the 4th Quarter 2017 $2.08 Billion $829.9 Million *Available For Sale *Held to Maturity Municipal CMO’s / Bonds, 2.7% REMIC’s, CMO’s / Municipal 13.2% REMIC’s, Bonds, 27.1% 32.4% MBS, 2
Slide 32: Mark-to-Market (Pre-tax)
Billion Mark-to-Market (Pre-tax) $100,000 $80,000 $60,000 $40,000 $2,854 $20,000 $0 -$20,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 2016 2017 (000’s) *Available For Sale Securities Only cbbank.com 32
Slide 33: CVBF Assets & Liabilities
‘CVBF’ Assets & Liabilities 12/31/17 Assets—$8.3 Billion 12/31/17 Liabilities—$7.2 Billion Junior Subordinated Securities Other Debentures 35.2% Liabilities 0.4% 1.0% Loans, net 57.7% Fed Balance* 2.0% Total Goodwill & Other Deposits** Intangibles 3.6% 98.6% 1.5% *Includes overnight funds held at th
Slide 34: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans 6.00% 5.46% 5.00% 4.58% 5.17% 4.00% 3.00% 2.42% 2.00% 1.00% 0.00% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017 Yield on Loans* Yield on Securities** *Excluding Discount Accretion on PCI lo
Slide 35: Our Growth Strategy
Our Growth Strategy cbbank.com
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. cbbank.com 36
Slide 37: Customer
Customer The best privately-held and/or family-owned businesses throughout California ï,§ Annual revenues of $1-200 million Top 25% in their respective industry ï,§ Full relationship banking ï,§ Build 20-year relationships cbbank.com 37
Slide 38: Three Areas of Growth
Three Areas of Growth San Diego (2014) (2017) Los Angeles (2015) Oxnard (2015) Santa Barbara (2015) Same Store Stockton LPO (2017) DeNovo Sales Acquisitions American Security Bank (2014) County Commerce Bank (2016) Valley Business Bank (2017) Community Bank (2018) —Pending— cbbank.com 38
Slide 39: Acquisition Strategy
cbbank.com Acquisition Strategy Target size: $200 million to $4 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) --Banks-- --Banking Teams-- In-market & ‘new’ markets 39
Slide 40: 2018 'Critical Few'
cbbank.com 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 40
Slide 41: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com cbbank.com