Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2021)
36 slides from Cvb Financial's investor presentation, Jul 22, 2021
Slide 1: CVB Financial Corp. July 2021
Exhibit 99.1 CVB Financial Corp. July 2021
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: $15.5 Billion Gross Loans: $ 8.1 Billion Total Deposits (Including Repos):$13.2 Billion Total Equity: $ 2.0 Billion CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974.
Slide 4: Bank Accomplishments & Ratings
As of 7/19/2021 CVB Financial Corp. is the holding company for Citizens Business Bank SNL Financial ranking of largest bank holding companies in CA, as of 12/31/2020 Bank Accomplishments & Ratings 177 Consecutive Quarters of Profitability 127 Consecutive Quarters of Cash Dividends Ranked #1 Forbes,
Slide 5: Business Financial Centers and CitizensTrust Locations
58 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 20-year relationships
Slide 8: 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 9: Acquisition Strategy
Acquisition Strategy Target size: $1 billion to $8 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Banks: Banking Teams: In-market New markets
Slide 10: Q2 2021 Financial Highlights
Q2 2021 Financial Highlights Profitability ROATCE = 15.60% ROAA = 1.35% NIM = 3.06% Efficiency Ratio = 40.05% Income Statement Net Income =$51.2 million $2.0 million recapture of provision for credit losses Diluted EPS =$0.38 Balance Sheet ~1.5% annual core loan growth $1 billion increase in investm
Slide 11: Selected Ratios
Selected Ratios 2018 2019 2020 Q2’20 Q1’21 Q2’21 ROATCE 15.18% 17.56% 14.25% 13.80% 19.85% 15.60% NIM 4.03% 4.36% 3.59% 3.70% 3.18% 3.06% Cost of Funds 0.16% 0.24% 0.13% 0.13% 0.07% 0.05% Efficiency Ratio 45.83% 40.16% 41.40% 39.75% 40.26% 40.05% NIE % Avg. Assets 1.89% 1.76% 1.49% 1.48% 1.32% 1.23%
Slide 12: PPP Loans - Round 1 Summary
PPP Loans - Round 1 Summary – Round 1 Originated and funded 4,092 PPP loans for ~$1.10B 99% of the PPP portfolio originated with 24 month term Total Fees ~$35 million Fees recognized in Net Interest Income: FY 2020 = $21.4 million; Q1’21 = $7.8 million; Q2’21 = $4.3 million; 2021 YTD = $12.1million
Slide 13: PPP Loans - Round 2 Summary
Summary – Round 2 Originated and funded more than 1,900 PPP loans for greater than $400 million 60 month term Total Fees ~$16 million Fees recognized in Net Interest Income: Q1’21 = $0.4 million; Q2’21 = $1.6 million; 2021 YTD = $2.0 million SBA Paycheck Protection Program * 100% forgiven based on b
Slide 14: Net Income & Pretax-Pre Provision Income
Net Income & Pretax-Pre Provision Income PTPP income (Non -GAAP*) Net income PTPP ROAA (Non-GAAP*) ROAA * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annually Quarterly ($ in Millions)
Slide 15: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 16: Earning Asset Mix
Earning Asset Mix Q1 2020 Q2 2021 Average Earning Assets $10.1 Billion Average Earning Assets $13.9 Billion | Investments 23% cbbank.com 16
Slide 17: Dividends – Consecutive Quarters
Dividends – 127 Consecutive Quarters 127 Consecutive Quarters More than 30 years of cash dividends since 1989 * Dividend payout ratio calculated on per share basis.
Slide 18: Strong Capital Ratios
Strong Capital Ratios * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $780MM $729MM $593MM $490MM
Slide 19: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $23MM in remaining loan fair value discounts (1)
Slide 20: Q2 2021 Allowance by Portfolio
Q2 2021 Allowance by Portfolio CECL Update Highlights $2MM recapture of credit losses in Q2 2021 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 03/3
Slide 21: Loans by Type
Loans by Type CRE $5.67B C&I $0.75B Other $1.65B
Slide 22: Loans by Region
(000’s) # of Center Locations (6/30/21) Average Loans per Location Total Loans (6/30/21) % Los Angeles County 21 $163,541 $ 3,434,370 42.5% Central Valley 10 137,077 1,370,773 17.0% Inland Empire (Riverside & San Bernardino Counties) 10 107,833 1,078,326 13.4% Orange County 10 107,501 1,075,013 13.3
Slide 23: Owner/Non-Owner Occupied Commercial Real Estate Loans
Owner/Non-Owner Occupied Commercial Real Estate Loans Collateral Type
Slide 24: CRE by Collateral Origination Year
CRE by Collateral Origination Year Collateral Type Balance ($ in Millions) % of Owner Occupied LTV at Origination Avg. Size ($ in Thousands) 2021 2020 2019 2018 2017 2016 or earlier Industrial $ 1,927 52% 51% $ 1,443 14% 15% 12% 12% 13% 34% Office 1,033 23% 56% 1,664 9% 22% 13% 10% 11% 35% Retail 80
Slide 25: C&I by Industry
C&I by Industry Includes Retail Trade ($17MM or 2% of C&I loans) Includes Accommodation and Food Services ($14MM or 2% of C&I loans) Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 142 19% Manufacturing 132 18% Wholesale Trade 83 11% Health Care and Social Assistance
Slide 26: Core Loan Growth
Core Loan Growth CRE +$306 6% growth C&I ($92) Other ($62) D&L and Agribus. +$6 SFR ($49) ($ in millions) 2021Q2 vs 2020Q2
Slide 27: Line Utilization Trends
Line Utilization Trends Total D&L C&I Undrawn loan commitments increased by $177MM from Q1 2020 to Q2 2021
Slide 28: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 29: Deposits by Region
Deposits by Region (000’s) # of Center Locations (6/30/21) Total Deposits (3/31/21) Total Deposits (6/30/21) Average Deposits per Center (6/30/21) Los Angeles County 21 $ 5,163,376 $ 5,575,916 $265,520 Inland Empire (Riverside & San Bernardino Counties) 10 3,573,821 3,794,062 379,406 Orange County 1
Slide 30: Cost of Deposits
Cost of Deposits Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35
Slide 31: Core Funding
Core Funding Total Deposits & Customer Repos $9.5 Billion | Interest-bearing 37% Noninterest-bearing 59% QWs Q2 2021 Total Deposits & Customer Repos $13.2 Billion Interest-bearing 35% Noninterest-bearing 61% cbbank.com
Slide 32: Current and Planned Client Technology Solutions
Current and Planned Client Technology Solutions Leveraging technology and data to better serve our clients Digital Online Banking Powerful personal and business mobile apps with Remote Deposit Personal financial management integration Same-day ACH Intuitive and customizable targeted Online Banking t
Slide 33: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 34: 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 35: 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 36: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com