Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Shareholder Meeting (May 2012)
48 slides from Cvb Financial's shareholder meeting presentation, May 17, 2012
Slide 1: 37th Annual Shareholder's Meeting May 16th 2012
Exhibit 99.1 37th Annual Shareholder’s Meeting May 16th 2012
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: Senior Leadership Team
Senior Leadership Team Name Christopher D. Myers Richard C. Thomas 1Year James F. Dowd Years David C. Harvey Years David A. Brager Years Chris A. Walters Years Yamynn DeAngelis Years Richard Wohl New Elsa Zavala Years Larry Zivelonghi Years President & Chief Executive Officer Executive Vice Presiden
Slide 4: Senior Leadership Team
Senior Leadership Team Position Name Ted Dondanville Hector Gutierrez 1Year David Krebs Years James Mead Years Michael Mulcahy Tim Noone Years Mark Richardson Years Nancy Sinclair John Tait Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President
Slide 5: Senior Vice Presidents and Managers
Steven Caseldine Ken Clark David Didier Greg Armstrong Harold Koenigsaecker Duane Keene LaVon Short Sue Haynes Francene LaPoint Thomas Trine SVP SVP SVP SVP SVP SVP SVP SVP SVP SVP Corona Manager Riverside Manager Arcadia Manager Upland Manager Special Assets Manager Covina Manager Deposit Services
Slide 6: CVB Financial Corp.
| Mt FINANCIAL CORP.
Slide 7: CVB Financial Corp. (CVBF) Financial Highlights 3/31/12
CVB Financial Corp. (CVBF) Financial Highlights 3/31/12 Total Assets: Gross Loans: Total Deposits (Including Repos): Total Equity: Operating Highlights $6.5 $3.5 $5.2 $730 Billion Billion Billion Million Largest financial institution headquartered in the Inland Empire region of Southern California.
Slide 8: Largest Banks Headquartered in California
Largest Banks Headquartered in California Rank Name Asset Size (3/31/12) Wells Fargo $1,333,799 Union Bank $92,323 Bank of the West $62,343 First Republic Bank $29,719 OneWest Bank $25,010 City National Bank $24,038 East West Bank $21,750 SVB Financial $20,818 9 Cathay Bank $10,557 CVB Financial Cor
Slide 9: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 140 Consecutive Quarters of Profitability 90 Consecutive Quarters of Cash Dividends #11 Forbes Magazine Best Banks (December 2011) BauerFinancial Report Five Star Rating (September 2011) Fitch Rating BBB (October 2011)
Slide 10: What are our Markets?
| ar FINANCIAL AB CORP What are our Markets?
Slide 11: Business Financial Centers and Commercial Banking Centers
Business Financial Centers 5 Commercial Banking Centers
Slide 12: Deposits
Deposits* # of Center Total Deposits Total Deposits (000’s) Locations(3/31/11)(3/31/12) Los Angeles County 17 $1,964,976 $1,932,495 Inland Empire 11 $1,553,109 $1,617,447 (Riverside & San Bernardino Counties) Central Valley 11 $773,627 $817,461 Orange County 8 $572,407 $545,356 Other 0 $199,579 $244
Slide 13: Loans as of 3/31/2012
Loans —as of 3/31/2012— Non-Covered Covered (000’s) Total Loans*% Loans Loans* Los Angeles County $1,115,483 $14,858 $1,130,341 32.32% Central Valley $586,531 $238,542 $807,241 23.59% Inland Empire $633,955 $2,604 $636,559 18.20% (Riverside & San Bernardino Counties) Orange County $480,771 $113 $480
Slide 14: Loan Portfolio Composition
Loan Portfolio Composition* Total Loans by Type Municipal Lease Finance Consumer Receivables—3.6% Auto & Equipment—0.5% 1.6% Dairy, Livestock & SFR Mortgage 5.2% Agribusiness- 9.1% Commercial & Industrial 15.6% Commercial Real Estate Non-Owner Occupied Construction RE 40.0% 2.1% Commercial Real Esta
Slide 15: Dairy & Livestock
Dairy & Livestock 12/31/11 Territory Number of Total Loan Outstandings Loan Outstandings Central Valley 74 $148,391 Inland Empire 57 $63,333 Idaho 21 $60,321 New Mexico 19 $38,212 Washington 15 $22,339 Other Areas 12 $10,953 Total 198 $343,549 Dairy: Real Estate 62 $151,714 Grand Total 260 $495,263(
Slide 16: Non-Performing Assets
Non-Performing Assets Non-Covered $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2009 2010 2011 2012 Non-Performing Loans OREO
Slide 17: Loan Loss Allowance
Loan Loss Allowance Non-Covered 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% -0.25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 Allowance to Non-Covered Loans Net Charge-Offs / Average Loans (Non-Cove
Slide 18: Profits
Profits
Slide 19: Net Income
(000’s) Net Income $22,500 $87.4 Million $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 Net Income After Taxes
Slide 20: Earnings
Earnings (000’s) 2008 2009 2010 2011 3/31/2012 Net Interest Income $193,679 $222,264 $259,317 $234,681 $58,602 Provision for Credit Losses($26,600)($80,500)($61,200)($7,068) $0 Other Operating Income/Expenses (Net)($81,331)($52,515)($111,378)($106,809)($24,956) Income Taxes($22,675)($23,830)($23,804
Slide 21: Net Interest Margin
Net Interest Margin 4.00% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 Normalized* *Normalized excludes accelerated accretion on covered loans
Slide 22: Peer Profitability Metrics
Peer Profitability Metrics Return on Average Assets 1.50% 1.00% 0.50% 0.00% CVBF 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -0.50% 2010 2011 2012 Peer -1.00% -1.50% -2.00% Return on Average Tangible Equity 20.00% 15.00% 10.00% 5.00% 0.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -5.00% 2010 2011 201
Slide 23: Capital
MAAN FINANCIAL ill min CORP. Capital
Slide 24: Capital Ratios
Capital Ratios Regulatory Regulatory Well-Capitalized Mar 31, 2012 Minimum Ratio Ratio Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.18% Total Risk-based Capital Ratio 8.0% 10.0% 19.44% Tier 1 Leverage Ratio 4.0% 5.0% 11.35% Tangible Capital Ratio 10.38% Core Tier 1 Capital Ratio 15.57%
Slide 25: Securities/Investments
MAAN FINANCIAL ill min CORP. Securities/Investments
Slide 26: Securities Portfolio $2.4 Billion
Securities Portfolio* —$2.4 Billion— Trust Preferred 0.4% Municipal Bonds Collateralized Mortgage 27.3% Obligations 31.1% Government Agency & Government Sponsored Entities 1.6% Yield on securities portfolio = 3.03% Mortgage Backed Securities 39.6% *Securities Available For Sale Source: Q1 2012 earni
Slide 27: Securities Portfolio Mark-to-Market
Securities Portfolio: $2.4 Billion (000’s) Mark-to-Market $90,000(Pre-tax) $80,000 $71,425 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 *Securities Available For Sale
Slide 28: CVBF Assets
CVBF Assets 12/31/06 $6.1 Billion 3/31/12 Securities $6.5 Billion Loans 42.4% 49.9% Securities Loans 36.5% 51.3% 2.4% 0.7% 4.6% Fed Balance* 2.8% Goodwill & Other 8.5% Fed Balance* Intangibles 0.9% Other Goodwill & Intangibles *Includes overnight funds held at the Federal Reserve, due from Correspon
Slide 29: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion 3/31/12 Jr. Subordinated $5.8 Billion BORROWINGS 1.9% Debentures 36.0% BORROWINGS Jr. Subordinated Other 7.8% 1.9% Debentures 1.0% Liabilities 0.7% 61.4% Other Liabilities TOTAL DEPOSITS* 89.3% TOTAL DEPOSITS* *Includes Customer Repurchase Agreements 29
Slide 30: May 2012 Update
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Slide 31: CVBF Stock Price
CVBF Stock Price $13 $11.14 $10.38 05/15/12 $12 Shareholders Meeting 05/18/10 $11 $6.56 $10 Shareholders Meeting $9 05/13/09 $8 $7 —Press Release— $9.22 SEC Investigation Shareholders Meeting $6 08/10/10 05/18/11 $5 4 $ May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr
Slide 32: SEC Investigation
SEC Investigation SEC investigation related to CBB loan loss reserves was initiated in late July 2010 CVBF and outside counsel have fully cooperated with the SEC We are hopeful the investigation will be resolved but have no specific insight as to timing or outcome
Slide 33: Lawsuits: Shareholder and Derivative
Lawsuits: Shareholder and Derivative Federal securities shareholder class action complaint was dismissed by judge in January 2012. Plaintiffs re-filed amended securities complaint in February 2012, and we renewed our motion to dismiss in March 2012. The hearing before the judge is scheduled for June
Slide 34: 2012 & Beyond – Our Growth Strategy
— 2012 & Beyond – Our Growth Strategy
Slide 35: Our Mission
Our Mission “The mission of CVB Financial Corp. is to achieve superior performance and rank in the top 10% of all financial institutions in the nation in return on equity and return on assets. This will be achieved by delivering the finest in financial products and services through relationship bank
Slide 36: Core Values
5 Core Values 1. Financial Strength 2. Superior People 3. Customer Focus 4. Cost Effective Operation 5. Having Fun
Slide 37: Our Vision
Our Vision Citizens Business Bank will strive to become the dominant 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 38: 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 39: Three Areas of Growth
Three Areas of Growth Same Store DeNovo Sales Acquisitions —Banks— —Trust—
Slide 40: Acquisition Strategy
Acquisition Strategy —Banks— Conventional M&A Target size: $200 million to $2 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California only) —Trust/Investment— Target size: Assets Under Management of $200 million to $1 billion In California
Slide 41: 2012 Strategy: Five Key Objectives
2012 Strategy: Five Key Objectives
Slide 42: Our 'Critical Few'
Our ‘Critical Few’ • Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition
Slide 43: Total Loans
(000’s) $4,250,000 Total Loans* $4,000,000 $3,750,000 $3,500,000 $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 *Total Loans net of SJB purchase discount
Slide 44: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2007 2008 2009 2010 2011 2012
Slide 45: Non-Interest Income
Non-Interest Income* $9,500 $9,000 $8,500 $3,000 $7,500 $7,000 $6,000 $6,500 $5,500 $5,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2007 2008 2009 2010 2011 2012 *Net of Loss/Gain on OREO and Investment Securities Sales
Slide 46: Expenses
Expenses 2009 2010 2011 Q1 2012 (000’s) Annualized Salaries and Employee Benefits $62,985 $69,419 $69,993 $67,251 Promotion & Entertainment $6,528 $6,084 $4,977 $5,031 Supplies $2,989 $3,314 $2,558 $2,369 Software Licenses & Maintenance $2,320 $5,031 $3,669 $3,656 Professional Services $6,965 $13,30
Slide 47: Our Strategic Focus
Our Strategic Focus Strong Capital position Strong, disciplined credit underwriting/credit culture Drive low cost, sustainable deposits Multiple forms of growth (don’t depend on one) Same Store Sales DeNovo Acquisitions Cross sell: capture the whole wallet Build new Fee Income opportunities Long ter
Slide 48: CVB Financial Corp.
| Mt FINANCIAL CORP.