Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (May 2019)
48 slides from Cvb Financial's investor presentation, May 30, 2019
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. June 2019
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. at a glance
Total Assets: $11.3 Billion Gross Loans: $7.6 Billion Total Deposits (Including Repos):$9.1 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: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 34 Years 13 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 29 Years 3 Years Dave F. Farnsworth Executive Vice President Chief Credit Officer 35 Years 3 Years David C.
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 7 Years 62 George Borba Jr. - Vice Chairman 7 Years 51 Chris Myers – CEO 13 Years 57 Steve Del Guercio 7 Years 57 Rod Guerra 2 Years 63 Anna Kan 3 Years 45 Marshall Laitsch 1 Year 70 Kristina Leslie 4 Years 54 Hal Oswalt 5 Years 71
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 (3/31/19) 1 Wells Fargo & Company $ 1,887,792 2 First Republic Bank(1) $101,847 3 SVB Financial Group $60,160 4 East West Bancorp, Inc. $42,091 5 PacWest Bancorp $26,324 6 Cath
Slide 8: Bank Accomplishments & Ratings
*As ranked among domestic banks with $5 to $50 billion in assets Bank Accomplishments & Ratings 168 Consecutive Quarters of Profitability 118 Consecutive Quarters of Cash Dividends Ranked #1 Forbes, 2019 Best Banks in California (January 2019) Ranked #2 S&P Global, 2018 Best Performing Banks in the
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 59 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 (3/31/19) Total Deposits (12/31/18) Total Deposits (3/31/19) Los Angeles County 25 $3,739,537 $3,670,243 Inland Empire (Riverside & San Bernardino Counties) 10 $2,602,822 $2,635,586 Orange County 11 $1,432,643 $1,345,647 Central Valley 9 $1,076,801 $1,075,385
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: 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 (3/31/19) Average Loans per Location Total Loans* (3/31/19) % Los Angeles County 25 $135,561 $3,389,027 44.5% Central Valley 9 $121,482 $1,093,334 14.4% Inland Empire (Riverside & San Bernardino Counties) 10 $102,365 $1,023,654 13.5% Orange County 11 $92,352 $1,015,871
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type
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 $2.4 Billion
$1.67 Billion *Available For Sale Yield on securities portfolio = 2.57% for the 1st Quarter 2019 Securities Portfolio* - $2.4 Billion $733.5 Million *Held to Maturity Yield on securities represents the fully taxable equivalent
Slide 22: Available For Sale Securities Portfolio
*Available For Sale Securities Only Securities Portfolio* $1.67 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
Slide 25: Return on Average Assets
Return on Average Assets (“ROAA”)
Slide 26: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity (“ROATCE”) * See Non-GAAP measurement slide 46
Slide 27: Net Interest Margin
Net Interest Margin Normalized* * Through the 4th quarter of 2014, normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired) Discount accretion
Slide 28: CVBF Assets
‘CVBF’ Assets 3/31/18 Assets - $8.4 Billion *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposits 3/31/19 Assets - $11.3 Billion Before Acquisition
Slide 29: Yield on Securities vs. Yield on Loans
‘CVBF’ Yield on Securities vs. Yield on Loans * Tax equivalent yield
Slide 30: CVBF Liabilities
‘CVBF’ Liabilities 3/31/19 Liabilities - $9.4 Billion 3/31/18 Liabilities - $7.3 Billion Before Acquisition
Slide 31: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 32: Community Bank Merger/Integration Timeline
Community Bank Merger/Integration Timeline August 10, 2018 November 10-12, 2018 January – May 2019 May 2019 Merger Completed Systems Conversion Complete Consolidation of 10 center locations (‘2’ per month) Acquisition Fully Integrated
Slide 33: Adjusted Efficiency Ratio
Adjusted Efficiency Ratio [1] [1] Excludes FHLB prepayment penalty charges and acquisition related expenses. See Non-GAAP measurement slide 47
Slide 34: Capital
CVB Financial Corp. Capital
Slide 35: Capital Ratios
Capital Capital Ratios Well-Capitalized Ratio June 30, 2018* (Pre-CB acq.) March 31, 2019* Tier 1 Risk-based Capital Ratio 8.0% 17.5% 14.0% Total Risk-based Capital Ratio 10.0% 18.6% 14.9% Common Equity Tier 1 Capital Ratio 6.5% 17.1% 13.8% Tier 1 Leverage Ratio 5.0% 12.6% 11.4% * CVB Financial Corp
Slide 36: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 37: 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 38: 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 39: Citizens Business Bank services
Citizens Business Bank Relationship Manager (Bank) Property Management Real Estate Banking International Treasury Management Specialty Banking Construction Lending CitizensTrust Merchant Bankcard SBA Citizens Home Lending Loan Brokerage Title Escrow Marketing Citizens Equipment Financing Government
Slide 40: 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 41: 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 42: Five Core Values
Five Core Values Financial Strength 1 Superior People 2 Customer Focus 3 Cost-Effective Operation 4 Having Fun 5
Slide 43: Rule of Three
Rule of Three ae Scalable Rule of Three Repeatable Transparent cbbank.com 23
Slide 44: 2019 'Critical Few'
2019 ‘Critical Few’ Grow Core Deposits Focus on Relationship Banking Develop, Customize and Refine our Infrastructure Cyber Security and Fraud Prevention Associate Integration and Education
Slide 45: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 46: 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 47: Reconciliation of Adjusted Efficiency Ratio (Non-GAAP)
Reconciliation of Adjusted Efficiency Ratio (Non-GAAP) We use certain non-GAAP financial measures to provide supplemental information regarding our performance. We believe that presenting the efficiency ratio, excluding FHLB prepayment penalty charges and acquisition expenses, provides additional cl
Slide 48: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com