Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (February 2010)
39 slides from Cvb Financial's investor presentation, Feb 19, 2010
Slide 1: CVB Financial Corp.
CVB Financial Corp.
Slide 2: 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 plan and expectations regarding future op
Slide 3: Company history timeline
1974 Chino Valley Bank formed 1981 CVB Financial Corp. (holding company formed) 1996 Chino Valley Bank becomes Citizens Business Bank 2001 CVB Financial listed on NASDAQ ("CVBF") 3
Slide 4: Operating and financial highlights
4 Total Assets: $6.7 Billion Net Loans: $4.0 Billion Total Deposits (Including Repos): $4.9 Billion Tang. Common Equity: $570 Market Capitalization: $918 Million Source: Q4 2009 earnings release & company filings; Texas Ratio = (NPA's + 90 days delinquent) / (Reserves + Tang. Common Equity) Operatin
Slide 5: San Joaquin Bank profile
Headquarters Bakersfield, CA Origin December 1980 Business Financial Centers 5 Assets $736 Million Deposits $530 Million Loans $689 Million 5 5
Slide 6: FDIC loss sharing terms
Loss sharing threshold of $144 million FDIC reimburses 80% of losses up to $144 million and 95% of any losses over threshold SJB assets acquired at a $57.6 million discount (2x loss sharing) 6
Slide 7: San Joaquin Bank: Then & Now
San Joaquin Bank: Then & Now 10/16/09 12/31/09 usiness Finan 5 Assets $736 Million Deposits $530 Million Loans $689 Million Loans (as marked) EEE
Slide 8: San Joaquin Bank Deposits
San Joaquin Bank Deposits 10/16/09 % 12/31/09 % {in thousands) DD) $176,787| 33.4% | $157,258 $200,713| 37.9%
Slide 9: Commercial and Business Financial Centers map
9 Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 45 Business Financial Centers 5 Commercial Banking Centers
Slide 10: Management and board alignment
10 Interests of senior management and board of directors aligned with those of shareholders Significant equity ownership among executive management and board of directors Total Board: 15.42%, Borba family: 12.63% Edward J. Biebrich Jr. Executive Vice President 28 Years 12 Years Chief Financial Offic
Slide 11: Who is CVB Financial?
Who is CVB Financial?
Slide 12: Forbes 2010 America's Best Banks
Forbes 2010 America’s Best Banks ($5 Billion $ ) Total Rank Company fea ee, peas ba 1 Bank of Hawaii 12 1.2 209 2 UMG Financial 10 07 210 3 Commerce Bancshares 18 1.6 114 4 Prosperity Bancshares 9 03 537 5 SVBFinancial 13 16 120 6 —CVB Financial 7 1.6 150 7 Community Bank System 5 0.5 249 8 Central
Slide 13: Awards and rankings
Bank Director Magazine (2010) Ranked #9 in the Nation...profitability, capital adequacy & asset quality Forbes Magazine (2010) Ranked #6 in the Nation BauerFinancial Report (2009) '5' Star Rating ABA Banking Journal (2009) 10th Ranked Bank in the Nation The Findley Report 19 Consecutive Years - Supe
Slide 14: Net Income After Taxes
14 (000's) Net Income After Taxes All-time High
Slide 15: Net Income and Provision for Loan Losses
15 (000's) Net Income After Taxes Provision For Loan Losses
Slide 16: Deposit franchise and cost of deposits
16 Source: Q4 2009 earnings release & company filings; core deposits defined as total deposits less jumbo CD's, total deposits does include customer repos The average cost of deposits stands at .53%. This low cost of deposits has helped the Bank expand its net interest margin to 3.75%, compared to 3
Slide 17: Cost of deposits and core deposits vs peers
17 Source: Q4 2009 earnings release & other company filings, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion Source: Q4 2009 earnings release & other company filings, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion Cost of Dep
Slide 18: Loans by type and region
18 Geographic diversification, a focus on relationship banking, and a strong credit culture have allowed CVB to mitigate loan losses through this economic downturn CVB has a strong CRE banking team, lending to projects involving apartment buildings, commercial office space and industrial centers Pro
Slide 19: CRE and construction portfolio
19 As of 12/31/2009 CRE loans totaled $1.99 billion, while construction stood at $265.4 million, or 7.3% of total loans. Construction loans totaled $351.5 million at 12/31/08 Of the CRE loans on the balance sheet, 37.3% are owner-occupied $68.5 million of the construction portfolio is related to res
Slide 20: Real estate loan portfolio
20 As of 12/31/2009 real estate loans totaled $2.3 billion, with the largest allocation going to industrial real estate at $670 million, or 29.7% of RE loans The weighted average owner occupied level for the RE portfolio is approximately 45% CVBF's single family residential portfolio is 100% owner o
Slide 21: Non-performing assets and peer comparison
As of 12/31/2009 non-performing assets totaled $73.7 million, of which $69.8 million and $3.9 million were from non-performing loans and OREO, respectively On a peer comparison basis, CVBF's credit metrics are superior NPA's / Loans & OREO: 2.04% vs. 5.3% for peers LLR / NPL's: 156.1% vs. 65.7% for
Slide 22: Texas Ratio and NPAs vs peers
22 CVBF's strong loan underwriting culture has limited its exposure to problem credits Continued profitability has allowed CVB to build its capital base and reserves for loan losses. Source: Q4 2009 earnings release, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billio
Slide 23: Loan Loss Reserves to Non-Performing Loans
Loan Loss Reserves to Non-Performing Loans Q1 2009 Q2 2009 Q3 2009 Q42009
Slide 24: ROA, ROE and net interest margin vs peers
24 Source: Q4 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 12/31/09 Source: Q4 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billi
Slide 25: Capital ratios vs peers
25 Source: Q4 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 9/30/09 PF TCE/TA ratio reflects net proceeds of a $115 million common equity raise with a 15% over-allotment option, as well as the redemption
Slide 26: Securities portfolio
26 Source: Q4 2009 earnings release. As of 12/31/2009 securities held-to-maturity were valued at approximately $3.8 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.1 billion at the end of 2009. During 2009, the Bank so
Slide 27: Dec - Mar - June - $7,120 $39,023 ($10,100) $47,439 $42,197 Sep- 09 Dec
Dec - 07 Mar - 08 June - 08 $7,120 $39,023 ($10,100) $47,439 $42,197 Sep- 09 Dec - 09 $82,480 ($30,331) Sep - 08 Dec - 08 Mar - 09 June - 09 June - 09
Slide 28: Transitioning from a Community Bank to a Regional Bank
Transitioning from a Community Bank to a Regional Bank 28
Slide 29: Vision: dominant financial services company in California
Citizens Business Bank will become the dominant financial services company operating throughout the state of California, servicing the comprehensive financial needs of the premiere businesses (and their principals) with annual sales/revenues of $1 million to $200 million. 29 29
Slide 30: Target customer profile
30 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 31: Acquisitions: Banks and Trust
31 Acquisitions - --Banks-- - --Trust- - -
Slide 32: Quarterback strategy: services around the customer
32 32 Relationship Manager (Bank) Property Management Real Estate Banking International Treasury Services Specialty Banking Construction Lending CitizensTrus t Bankcard SBA Citizens Home Loans Mortgage Brokerage Title Escrow Marketing CFS Governmen t Services Deposit Services Wealth Management Trust
Slide 33: Strategy: build infrastructure and expand products
33 - --Strategy-- Build infrastructure via new hires Chris Walters, EVP Sean Kraus, SVP & Chief Investment Officer Six new 'sales' hires Build infrastructure via expanded product offerings Open architecture Life Insurance/Annuities, etc. Acquire RIA's
Slide 34: DeNovo and team acquisitions
“DeNovo” --Team Acquisitions-- Specialty Banking Group January 2008 $116,240 San Fernando Valley CBC June 2008 $30,595 Inland Empire CBC July 2008 $13,427 South Bay CBC August 2008 $35,693 Orange County CBC December 2009 Los Angeles CBC --in process-- Administration (000’s) Total $195,955 As of 12/3
Slide 35: Bank acquisitions
Bank Name Date Acquired Geographic Market # of Locations Total Assets (12/31/09) First Coastal Bank June 2007 South Bay 4 /3 $120,814 San Joaquin Bank October 2009 Kern County 5/4 $666,521 (000's) Total: $787,335 Trust Acquisitions - --None--
Slide 36: CVBF Deposit Growth
CVBF Deposit Growth Non-Interest Bearing Demand $1,363,411 $1,561,981 Interest Checking $318,431 $469,413 Savings/MMDA $896,988 $1,213,002 Time Deposi $827,978 $1,194,258 Total Deposits $3,406,808 $4,438,654 Customer Repurchase Agreements $94,350 $485,132 Total Deposits & 1,1! 4,923,73 Customer Repu
Slide 37: CVBF Balance Sheet
CVBF Balance Sheet (in millions) Total Assets Total Deposits includes REPO’s Total Loans* Securiti Borrowings Loan Loss Re: Tier 1 Tangible Ratio Tier 1 Leve Total Risk Based Capital *Covered and Non-Covered
Slide 38: Strategic priorities
38 Capital and strong Loan Loss Reserves are paramount Strong, disciplined credit underwriting/credit culture Drive low-cost deposits Acquire the customers....don't depend on loss sharing Multiple forms of growth (don't depend on one) Same Store Sales DeNovo Acquisitions Control our destiny; 'earn'
Slide 39: Thank you!
Thank you! Copy of Presentation: jeschaap@cbbank.com 2010 sie veee
CVB Financial — Investor Presentation (February 2010) on 6ix