CVB Financial Corporation · NASDAQ:CVBF
CVB Financial — Investor Presentation (May 2017)
48 slides from CVB Financial's investor presentation, May 3, 2017
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. May 2017
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: $8.6 Billion Gross Loans: $4.6 Billion Total Deposits (Including Repos):$7.4 Billion Total Equity: $1.0 Billion Source: Q1 2017 earnings release & company filings CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California.
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 32 Years 11 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 21 Years 1 Year Dave F. Farnsworth Executive Vice President Chief Credit Officer 32 Years 1 Year David C. Ha
Slide 5: Board of Directors
Board of Directors Name CVBF Experience Age Ray O’Brien - Chairman 5 Years 60 George Borba Jr. - Vice Chairman 4 Years 49 Steve Del Guercio 5 Years 55 Robert Jacoby 12 Years 75 Kristina Leslie 2 Years 52 Hal Oswalt 3 Years 68 Anna Kan 1 Year 43 Chris Myers - CEO 11 Years 55
Slide 6: Who is CVB Financial Corp.?
CVB Financial Corp. Who is CVB Financial Corp.?
Slide 7: Largest Bank Holding Companies Headquartered in California
Largest Bank Holding Companies Headquartered in California In millions Rank Name Asset Size (3/31/17) 1 Wells Fargo & Company $1,951,564 2 First Republic Bank* $76,504 3 SVB Financial Group $46,413 4 East West Bancorp $35,342 5 PacWest Bancorp $21,927 6 Cathay General Bancorp $14,224 7 Hope Bancorp,
Slide 8: Accomplishments & Ratings
*As ranked among domestic banks with $5 to $50 billion in assets Other Bank Accomplishments & Ratings 160 Consecutive Quarters of Profitability 110 Consecutive Quarters of Cash Dividends Ranked #1 Forbes, 2016 Best Banks in America (January 2016) Ranked #2 Forbes, 2017 Best Banks in America (January
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 54 Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust Santa Barbara Ventura
Slide 11: New Acquisition Valley Commerce Bancorp 'VCBP'
New Acquisition Valley Commerce Bancorp ‘VCBP’
Slide 12: Transaction Highlights
March 10, 2017 Closing Date $23.2 million in cash(1) 1,633,561 shares of CVBF stock issued Aggregate merger consideration of $75.3 million, including a special dividend(2) paid to VCBP shareholders Consideration mix of approximately 62% stock and 38% cash Does not include special dividend. (2) VCBP
Slide 13: Pro Forma Branch Footprint
Source: SNL Financial. CVBF (50) VCBP (4) Pro Forma Branch Footprint
Slide 14: Valuation Multiples and Financial Impact
Deal value/ tangible book value (1) of 1.19x Deal value / adjusted tangible book value(2) of 1.66x Deal value/ last twelve months earnings of 14.6x Deal value (with special dividend(2))/ last twelve months earnings of 18x Based on VCBP tangible book value as of 12/31/2016. Including Special Dividend
Slide 15: Financial Performance
CVB Financial Corp. Financial Performance
Slide 16: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (3/31/16) Total Deposits (3/31/17) Los Angeles County 18 $2,426,131 $2,740,604 Inland Empire (Riverside & San Bernardino Counties) 9 $1,966,085 $2,092,191 Central Valley 12 $914,646 $1,225,790 Orange County 9 $970,405 $1,042,834 Central Coast 5
Slide 17: Total Deposits
*Interest Bearing Deposits includes REPOs Total Deposits* (000’s) 3 Year CAGR 8.9% 3 Year CAGR 14.2%
Slide 18: Deposit Cost Comparison
Deposit Cost Comparison Source: Q4 2016 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 19: Total Loans by Region
(000’s) # of Center Locations Average Loans per Location Total Loans* (3/31/17) Los Angeles County 18 $90,413 $1,627,428 Central Valley 12 $83,635 $1,003,621 Inland Empire (Riverside & San Bernardino Counties) 9 $78,996 $710,968 Orange County 9 $64,067 $576,602 Central Coast 5 $64,601 $323,006 San D
Slide 20: Total Loans by County
Total Loans* *Prior to MTM discount, loan fees, allowance for loan losses and loans held-for-sale Total Loans by County
Slide 21: Total Loans
Total Loans* (000’s) *Starting in the 4th quarter of 2014, covered and non-covered loans are combined (Purchase Credit Impaired or PCI) Before deferred loan fees, discount on PCI loans, and loans held-for-sale Includes covered and non-covered loans for all periods presented
Slide 22: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q1 2017 earnings release & company reports
Slide 23: Credit Quality
CVB Financial Corp. Credit Quality
Slide 24: 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 25: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 26: 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 27: Profits
CVB Financial Corp. Profits
Slide 28: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 29: Earnings
Earnings (000’s) 2013 2014 2015 2016 3 Months to 3/31/2017 Net Interest Income $216,266 $236,514 $252,942 $257,074 $65,433 Recapture of Provision for Loan Losses $16,750 $16,100 $5,600 $6,400 $4,500 Other Operating Income/Expenses (Net) ($88,741) ($89,817) ($107,176) ($101,188) ($25,395) Income Taxe
Slide 30: Net Interest Margin
Net Interest Margin Normalized* *Normalized tax equivalent excludes accretion on covered loans (Purchase Credit Impaired)
Slide 31: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 32: Efficiency Ratio
Efficiency Ratio 46.01% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 33: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 1.70% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 34: Capital
CVB Financial Corp. Capital
Slide 35: Capital Ratios
Capital Ratios Adequately Capitalized Ratio Well-Capitalized Ratio March 31, 2017* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 16.7% Total Risk-based Capital Ratio 8.0% 10.0% 17.9% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.2% Tier 1 Leverage Ratio 4.0% 5.0% 11.7% * CVB Financial Corp. – Consolid
Slide 36: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 37: Securities Portfolio
$2.27 Billion *Available For Sale Yield on securities portfolio = 2.46% for the 1st Quarter 2017 Securities Portfolio* --$3.2 Billion-- $885.1 Million *Held to Maturity Source: Q1 2017 earnings release | Yield on securities represents the fully taxable equivalent
Slide 38: Available For Sale Securities Portfolio
*Available For Sale Securities Only Securities Portfolio* $2.27 Billion (000’s) $15,799 Mark-to-Market (Pre-tax)
Slide 39: 'CVBF' Assets & Liabilities
‘CVBF’ Assets & Liabilities 3/31/17 $7.5 Billion 3/31/17 $8.6 Billion *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit **Includes Customer Repurchase Agreements
Slide 40: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion on PCI loans **Includes Available for Sale and Held to Maturity, TE 4.48% 2.46%
Slide 41: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 42: 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 43: Target Customer
Target Customer The best privately-held and/or family-owned businesses throughout California Annual revenues of $1-200 million Top 25% in their respective industry Full relationship banking Build 20-year relationships
Slide 44: Three Areas of Growth
Three Areas of Growth Acquisitions San Diego (2014) Oxnard (2015) American Security Bank (2014) County Commerce Bank (2016) Santa Barbara (2015) Valley Business Bank (March 2017)
Slide 45: Acquisition Strategy
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
Slide 46: 2017 De Novo
2017 De Novo San Diego (Downtown) Loan Production Office Stockton Loan Production Office
Slide 47: 2017 'Critical Few'
2017 ‘Critical Few’ Broaden Our Geographic Footprint Quality Loan Growth Expand Commercial Banking Enhance Cybersecurity Build Our Infrastructure For Tomorrow
Slide 48: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com