Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (January 2022)
38 slides from Cvb Financial's investor presentation, Jan 27, 2022
Slide 1: CVB Financial Corp. January 2022
Exhibit 99.1 CVB Financial Corp. January 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the manageme
Slide 3: CVB Financial Corp. (CVBF) at a glance
Total Assets: $15.9 Billion Gross Loans: $ 7.9 Billion Total Deposits (Including Repos):$13.6 Billion Total Equity: $ 2.1 Billion CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974.
Slide 4: Holding company for Citizens Business Bank: Accomplishments & Ratings
As of 1/14/2022 CVB Financial Corp. is the holding company for Citizens Business Bank SNL Financial ranking of largest bank holding companies in CA, as of 12/31/2021 Bank Accomplishments & Ratings 179 Consecutive Quarters of Profitability 129 Consecutive Quarters of Cash Dividends Ranked #1 Forbes,
Slide 5: Business Financial Centers and CitizensTrust Locations
65 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 long-term 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) Suncrest Bank (Closed January 7, 2022)
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: 2021 Financial Highlights
2021 Financial Highlights Profitability ROATCE = 15.93% ROAA = 1.38% NIM = 2.97% Efficiency Ratio = 41.09% Income Statement FY Net Income: 2021 =$212.5 million / 2020 = $177.2 million FY Diluted EPS: 2021 =$1.56 / 2020 = $1.30 Q4 Net Income =$47.7 million Q4 Diluted EPS =$0.35 Balance Sheet Growth ~
Slide 11: Selected Ratios
Selected Ratios 2019 2020 2021 Q4’20 Q3’21 Q4’21 ROATCE 17.56% 14.25% 15.93% 15.67% 14.62% 13.89% NIM 4.36% 3.59% 2.97% 3.33% 2.89% 2.79% Cost of Funds 0.24% 0.13% 0.05% 0.09% 0.04% 0.03% Efficiency Ratio 40.16% 41.40% 41.09% 40.64% 42.27% 41.80% NIE % Avg. Assets 1.76% 1.49% 1.24% 1.37% 1.22% 1.19%
Slide 12: Pretax-Pre Provision Income
Pretax-Pre Provision Income PTPP income (Non -GAAP*) PTPP ROAA (Non-GAAP*) * We use certain non-GAAP financial measures to provide supplemental information regarding our performance. Annual Quarterly ($ in Millions)
Slide 13: Net Interest Income and NIM
Net Interest Income and NIM ($ in Millions)
Slide 14: Well Positioned for 2022
Well Positioned for 2022 Demonstrated High Quality Loan Growth Excellent Asset Quality Asset Sensitive Balance Sheet Highly Liquid Core low cost deposit base Strong Capital Levels / attractive dividend Positive operating leverage from Suncrest Bank merger
Slide 15: Quality Loan Growth
Quality Loan Growth CRE +$288 5% growth C&I Flat Other ($49) D&L and Agribus. +$25 SFR ($30) ($ in Millions) 2021Q4 vs 2020Q4 3% growth (core loans annualized)
Slide 16: Credit Quality
Credit Quality * Source: SNL Financial—peers represent public CA, AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35 billion $19MM in remaining loan fair value discounts (1)
Slide 17: Asset Sensitive Balance Sheet
Asset Sensitive Balance Sheet CVBF’s net interest income sensitivity is +21%* when rates are ramped up 200bps over a 12 month time horizon 47% of earning assets combined between Federal Reserve balance and investment portfolio > 61% of Banks funding from Noninterest-bearing deposits CVBF’s Cost of F
Slide 18: High Quality Securities Portfolio
$3.18 Billion *Available For Sale Yield on securities portfolio = 1.52% for the 4th Quarter 2021 High Quality Securities Portfolio* - $5.11 Billion $1.93 Billion *Held to Maturity Yield on securities represents the fully taxable equivalent 2022 projected cash flow from portfolio = $800 million
Slide 19: Cost of Deposits
Cost of Deposits Source: SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks and thrifts with assets $2 - $35B Cost of Funds = 3 bps
Slide 20: 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 $793MM $744MM $602MM $486MM
Slide 21: Dividends – Consecutive Quarters
Dividends – 129 Consecutive Quarters 129 Consecutive Quarters More than 30 years of cash dividends since 1989 * Dividend payout ratio calculated on per share basis.
Slide 22: Suncrest Bank Merger/Integration Timeline
Suncrest Bank Merger/Integration Timeline January 7, 2022 February 18, 2022 April-May 2022 June 2022 Merger Completed Systems Conversion Consolidation of two center locations Acquisition Fully Integrated Total Assets – $1.4B Gross Loans – $.8B Total Deposits – $1.2B Consideration: $237MM Shares issu
Slide 23: Q4 2021 Allowance by Portfolio, CECL Update
Q4 2021 Allowance by Portfolio CECL Update Highlights No credit provision in Q4 2021 Lifetime historical loss models - Macroeconomic variables include GDP, Unemployment Rate, & CRE price index Weighting of multiple forecasts Allowance for Credit Losses – by Loan Type ($ in Millions) 09/30/2021 12/31
Slide 24: SBA Paycheck Protection Program Summary
Summary – Round 1 Originated and funded more than 4,000 PPP loans for greater than $1.1 billion $1.11 billion forgiven thru December 31 ~ 99+% forgiven Total Fees of ~$35 million recognized in Net Interest Income Q4’21 = $0 / 2021 YTD = $13.6 million / FY 2020 = $21.4 million SBA Paycheck Protection
Slide 25: Loans by Type
Loans by Type CRE $5.79B C&I $0.81B Other $1.29B
Slide 26: Loans by Region
(000’s) # of Center Locations (12/31/21) Average Loans per Location Total Loans (12/30/21) % Los Angeles County 21 $154,167 $ 3,237,514 41.1% Central Valley 10 146,914 1,469,141 18.6% Orange County 10 101,976 1,019,756 12.9% Inland Empire (Riverside & San Bernardino Counties) 10 97,768 977,683 12.4%
Slide 27: Owner/Non-Owner Occupied Commercial Real Estate Loans
Owner/Non-Owner Occupied Commercial Real Estate Loans Collateral Type
Slide 28: 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 $ 1,968 50% 51% $ 1,503 24% 14% 10% 11% 11% 30% Office 1,035 24% 55% 1,664 16% 21% 12% 8% 11% 32% Retail 82
Slide 29: C&I by Industry
C&I by Industry Includes Accommodation and Food Services ($11MM or 1% of C&I loans) Industry Balance ($ in Millions) % of C&I Total Real Estate Rental and Leasing $ 148 18% Manufacturing 133 16% Wholesale Trade 94 12% Construction 68 8% Health Care and Social Assistance 52 7% Arts, Entertainment, an
Slide 30: Line Utilization Trends
Line Utilization Trends Total D&L C&I
Slide 31: Loan Interest Income
Loan Interest Income ($ in Millions)
Slide 32: Relationship-Centered Deposit Base
Relationship-Centered Deposit Base At December 31, 2021 Noninterest-bearing Deposits $8.1B > Loans $7.9B
Slide 33: Deposits by Region
Deposits by Region (000’s) # of Center Locations (12/31/21) Total Deposits (9/30/21) Total Deposits (12/31/21) Average Deposits per Center (12/31/21) Los Angeles County 21 $ 5,535,260 $ 5,875,749 $279,798 Inland Empire (Riverside & San Bernardino Counties) 10 4,071,286 3,788,138 378,814 Orange Count
Slide 34: Technology Solutions
Technology Solutions Leveraging technology, digital transformation and data to better serve our clients and associates Recently Completed Powerful new personal and business online banking and mobile apps with Remote Deposit Personal financial management integration Same-day ACH Intuitive and customi
Slide 35: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation
Slide 36: 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 37: 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 38: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com