Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2015)
45 slides from Cvb Financial's investor presentation, Jul 27, 2015
Slide 1: July 2015
July 2015 Exhibit 99.1
Slide 2: Safe Harbor
Safe Harbor 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 expectations regard
Slide 3: Slide 3
Slide 4: CVB Financial Corp. (CVBF)
Total Assets: $7.7 Billion Gross Loans: $3.8 Billion Total Deposits (Including Repos): $6.7 Billion Total Equity: $894 Million Source: Q2 2015 earnings release & company filings. CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California
Slide 5: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 Years Richard C. Thomas Executive Vice President Chief Financial Officer 5 Years 4 Years James F. Dowd Executive Vice President Chief Credit Officer 38 Years 7 Years David C. Harvey E
Slide 6: Board of Directors
Board of Directors Name CVB Experience Age Ray O’Brien - Chairman 3 Years George Borba Jr. - Vice Chairman 2 Years Steve Del Guercio 2 Years Robert Jacoby 10 Years Hal Oswalt 1 Year San Vaccaro 16 Years Chris Myers - CEO 9 Years
Slide 7: Who is CVB Financial Corp.?
Who is CVB Financial Corp.?
Slide 8: Largest Banks Headquartered in California
11 CVB Financial Corp. $7,443 Largest Banks Headquartered in California Source: SNL Financial In millions Rank Name Asset Size (3/31/15) Wells Fargo $1,737,737 Union Bank $113,698 Bank of the West $70,938 First Republic Bank $51,066 SVB Financial $39,696 City National Bank $32,699 East West Bank $29
Slide 9: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 153 Consecutive Quarters of Profitability 103 Consecutive Quarters of Cash Dividends #4 Rated Bank: BankDirector Magazine Bank Performance Scorecard (August 2014) BauerFinancial Report Five Star Rating (September 2014) 78 Consecutive Quarters Fitch Rating BBB (Septembe
Slide 10: CVB Financial Corp.
CVB Financial Corp.
Slide 11: Existing Locations
Existing Locations 40 Business Financial Centers 7 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego – NEW Opened June 2014 Ventura – NEW Opened January 2015
Slide 12: CVB Financial Corp.
CVB Financial Corp.
Slide 13: Ventura County
Ventura County Opened January 2015 | 6 Associates
Slide 14: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (6/30/14) Total Deposits (6/30/15) Los Angeles County $2,069,542 $2,418,945 Inland Empire (Riverside & San Bernardino Counties) $2,148,802 $2,093,090 Central Valley $845,125 $909,113 Orange County $920,300 $925,129 Other $257,036 $309,929 Total
Slide 15: Total Deposits
Total Deposits* $500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 $5,500,000 $6,500,000 $7,500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2014 2015 Non-Int Bearing Dep Interest Bearing Deposits* (000’s) *Interest Bearing Deposits includes REPOs
Slide 16: Deposit Cost Comparison
Deposit Cost Comparison Source: Q2 2015 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. Peer Data is as of 03/31/2015 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 17: Slide 17
Slide 18: Total Loans
$2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 $3,200,000 $3,400,000 $3,600,000 $3,800,000 $4,000,000 $4,200,000 $4,400,000 Q1 Q2Q3 Q4 Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2014 2015 Total Loans* Total Loans* (000’s) *Starting in the th quarter o
Slide 19: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Receivables, 2.0% Dairy, Livestock & Agribusiness, 4.9% Commercial & Industrial, 11.1% Construction RE, 1.2% Commercial RE - Owner Occupied, 25.0% Commercial RE- Non-Owner, 42.1% Multi-Family, 6.0% SFR Mortgage, 5.7% Other, 2.0%
Slide 20: CVB Financial Corp.
CVB Financial Corp.
Slide 21: Non-Performing Assets
Non-Performing Assets* $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 2015 Non-Performing Loans OREO (000’s) *Non-Covered assets | Starting in the th
Slide 22: Classified Loans
Classified Loans* $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 2015 (000’s) *Non-Covered loans| Starting in the th quarter of 2014, covered and non-covered loans
Slide 23: Loans: Net Charge-Offs
Loans: Net Charge-Offs* *Non-Covered | Starting in the th quarter of 2014, covered and non-covered loans are combined
Slide 24: CVB Financial Corp.
CVB Financial Corp.
Slide 25: Net Income
Net Income $- $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $30,000 $32,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 2015 (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.
Slide 26: Earnings
(000’s) 2011 2012 2013 2014 6 Months to 06/30/2015 Net Interest Income $234,681 $236,950 $216,266 $236,514 $123,767 Provision for Loan Losses ($7,068) $0 $16,750 $16,100 ($2,000) Other Operating Income/Expenses (Net) ($106,809) ($122,257) ($88,741) ($89,817) ($59,649) Income Taxes ($39,071) ($37,413
Slide 27: Net Interest Margin
Net Interest Margin 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% Q1 Q2Q3Q4Q1 Q2Q3Q4Q1 Q2Q3Q4Q1 Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3 Q4Q1Q2 2007 2008 2009 2010 2011 2012 2013 2014 2015 *Normalized tax-equivalent excludes accretion on covered loans (Purchase Credit Impai
Slide 28: Efficiency & Expenses
Efficiency & Expenses
Slide 29: Efficiency Ratio
Efficiency Ratio 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 30: Non-Interest Expense
Non-Interest Expense as a % of Average Assets 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 Non-Interest Expense as a % of Average Assets 1.69% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 31: CVB Financial Corp.
CVB Financial Corp.
Slide 32: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2015* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 17.35% Total Risk-based Capital Ratio 8.0% 10.0% 18.60% Tier 1 Leverage Ratio 4.0% 5.0% 10.94% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 16.81% Tangible Capital Ratio 11.13% Capita
Slide 33: Securities & Investments
Securities & Investments
Slide 34: Securities Portfolio
Securities Portfolio* --$3.2 Billion-- Municipal Bonds 16.85% Government Agency & GSEs 11.14% MBS 58.86% CMO's / REMIC's 12.99% Trust Preferred 0.16% Source: Q2 2015 earnings release. As of 6/30/2015 securities held-to-maturity were valued at approximately $1.4 million | Yield on securities represen
Slide 35: Securities Portfolio Mark-to-Market
-$40,000 -$20,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Securities Portfolio* $3.2 Billion Mark-to-Market (Pre - tax) (000’s) *Securities Available For Sale $40,878
Slide 36: CVBF Assets
CVBF Assets Securities 41.0% Loans, net 48.4% Securities 42.4% Loans, net 49.9% *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit Fed Balance* 4.5% Other 5.1% Goodwill & Intangible
Slide 37: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 2015 Yield on Loans* Yield on Securities *Excluding Discount Accretion
Slide 38: CVBF Liabilities
Total Deposits* 61.4% Borrowings 36.0% CVBF Liabilities Total Deposits* 97.84% Other Liabilities 0.7% Junior subordinated Debentures 1.9% 12/31/06 $5.7 Billion 6/30/15 $6.8 Billion Other Liabilities 1.78% Borrowings 0.0% Junior subordinated Debentures 0.38% *Includes Customer Repurchase Agreements
Slide 39: Our Growth Strategy
Our Growth Strategy
Slide 40: 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 41: 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 42: Three Areas of Growth
Same Store Sales DeNovo Acquisitions --Banks-- --Trust-- Three Areas of Growth
Slide 43: Acquisition Strategy
• Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) Acquisition Strategy • Target size: AUM of $200 million to $1 billion • In California • In- market & ‘new’ markets --Banks-- --Trust/Investment-- --Banking Team
Slide 44: Our 'Critical Few'
Our ‘Critical Few’ • Execute on DeNovo Growth Initiatives • Pursue Strategic Acquisitions • Quality Loan Growth • Provide Customer Solutions Through Technology • Expand Market Share Through Same Store Sales
Slide 45: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com