Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (May 2020)
33 slides from Cvb Financial's investor presentation, May 7, 2020
Slide 1: CVB Financial Corp. May 2020
Exhibit 99.1 CVB Financial Corp. May 2020
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: $11.6 Billion Gross Loans: $ 7.5 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: 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 (3/31/20) 1 Wells Fargo & Company $ 1,981,349 2 First Republic Bank(1) $123,915 3 SVB Financial Group $75,010 4 East West Bancorp, Inc. $45,949 5 PacWest Bancorp $26,143 6 Cath
Slide 5: Bank Accomplishments & Ratings
As of 3/31/2020 S&P Global Market Intelligence ranked CVB Financial Corp. the #2 Best-Performing Regional Bank of 2018 with $10 billion to $50 billion in assets CVB Financial Corp. is the holding company for Citizens Business Bank Bank Accomplishments & Ratings 172 Consecutive Quarters of Profitabil
Slide 6: Business Financial Centers and locations
58 Business Financial Centers 1 Loan Production Office 3 CitizensTrust Locations Corporate Office Business Financial Centers Loan Production Office CitizensTrust
Slide 7: 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 8: 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 9: 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 10: 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)
Slide 11: 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 12: 2020 Critical Few
2020 Critical Few Grow Quality Loans Grow Core Deposits Strengthen Relationships through Cross-Sell Execute on Infrastructure Initiatives Cyber Fraud Awareness & Education
Slide 13: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service David A. Brager Chief Executive Officer 33 Years 17 Years E. Allen Nicholson Executive Vice President Chief Financial Officer 29 Years 4 Years Dave F. Farnsworth Executive Vice President Chief Credit Officer 35 Years 4 Years David
Slide 14: COVID-19 Response
Associates Business Continuity Task Force mobilized and leading Bank’s response Associates are working from both remote sites, as well as separate work sites with protocols for social distancing, cautionary cleaning and health safety practices Customers All banking channels are open to customers All
Slide 15: CARES Act Relief
CARES Act Relief Focused on assisting customers Mobilized significant internal resources on PPP Received over 4,200 PPP applications, totaling over $1.34B – obtained ~3,800 for $1.25B Granted 90 day loan deferrals for 620 customers related to $940MM in loans (13% of loans at March 31, 2020) PPP Appr
Slide 16: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights Profitability $12MM provision for credit losses due to COVID-19 / CECL ROATCE = 12.3% ROAA = 1.34% Efficiency Ratio = 42.7% Income Statement Net Income = $38 million Diluted EPS = $.27 Pretax / Pre-Provision Income = $65.3 million Balance Sheet/ Liquidity $474 million or
Slide 17: Selected Ratios
Selected Ratios 2017 2018 2019 Q1’19 Q4’19 Q1’20 ROATCE 11.17% 15.18% 17.56% 18.75% 16.36% 12.27% NIM 3.63% 4.03% 4.36% 4.39% 4.24% 4.08% Cost of Funds 0.12% 0.16% 0.24% 0.25% 0.22% 0.21% Efficiency Ratio 43.84% 45.83% 40.16% 41.01% 41.01% 42.69% NIE % Avg. Assets 1.70% 1.89% 1.76% 1.83% 1.71% 1.72%
Slide 18: Net income & Pretax-pre provision income
Net income & Pretax-pre provision income PTPP income (Non -GAAP*) Net income PTPP ROAA (Non-GAAP*) ROAA * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annually Quarterly
Slide 19: Dividends – Consecutive Quarters
Dividends – 122 Consecutive Quarters 122 Consecutive Quarters More than 30 years of cash dividends since 1989 ANNUALIZED Q1 * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks with assets $2 - $25 billion
Slide 20: Strong Capital Ratios
Strong Capital Ratios * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks with assets $2 - $25 billion $800mm $610mm $550mm $470mm Capital Ratios As of Q1 2020
Slide 21: Liquidity
Liquidity Investment Portfolio $2.3 Billion as of Q1 2020 83% Loan to Deposit & Repo Ratio < 85% past 5 quarters Agency CMO bated 81% bate) 29% Municipal % Other 5% ‘Agency MBS 57% Q12019 Q22019 32019-42019 Q1-2020 Funding Availability rundingSoureen $4.2 Billion as of Q1 2020 98% Core Deposits Corr
Slide 22: Q1 2020 Allowance by Portfolio
Q1 2020 Allowance by Portfolio CECL Update CECL Adopted in Q1 2020 $1.8MM Day 1 Impact Lifetime historical loss models Macroeconomic variables include GDP, Unemployment Rate, & CRE price index $12 million provision based on COVID-19 economic forecast Weighting of multiple forecasts – including Moody
Slide 23: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks with assets $2 - $25 billion $43mm in remaining loan fair value discounts
Slide 24: Loans by Region
(000’s) # of Center Locations (3/31/20) Average Loans per Location Total Loans* (3/31/20) % Los Angeles County 22 $149,882 $3,297,399 44.2% Central Valley 9 $124,507 $1,120,563 15.0% Orange County 10 $96,585 $968,575 13.0% Inland Empire (Riverside & San Bernardino Counties) 10 $98,753 $987,534 13.2%
Slide 25: Loans by Type
Loans by Type CRE $5.35B C&I $0.96B Other $1.16B
Slide 26: CRE by Collateral Type
Collateral Type CRE by Collateral Collateral Type Balance ($ in Millions) % of Total LTV at Origination Avg. Size ($ in Millions) Industrial $ 1,849 35% 56% $ 1,372 Office 940 18% 59% 1,486 Retail 783 15% 53% 1,631 Other 662 12% 51% 1,393 Multi-Family 586 11% 54% 1,637 Medical 279 5% 63% 1,769 Farml
Slide 27: C&I by Industry
C&I by Industry Industry Balance ($ in Millions) % of Total Manufacturing $ 185 19% Wholesale Trade 154 16% Real Estate Rental and Leasing 123 13% Finance and Insurance 69 7% Prof., Scientific, and Tech. Services 67 7% Health Care and Social Assistance 62 6% Construction 62 6% Transportation and War
Slide 28: Deposits by Region
Deposits by Region (000’s) # of Center Locations (3/31/20) Total Deposits (12/31/19) Total Deposits (3/31/20) Los Angeles County 22 $3,625,214 $3,799,075 Inland Empire (Riverside & San Bernardino Counties) 10 $2,623,440 $2,761,738 Orange County 10 $1,408,749 $1,459,027 Central Valley 9 $1,038,922 $1
Slide 29: Cost of Deposits
Cost of Deposits Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion
Slide 30: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 31: 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 32: 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 33: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com