Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2010)
44 slides from Cvb Financial's investor presentation, Jul 23, 2010
Slide 1: CVB Financial Corp.
CVB FINANCIAL CORP. 1 Chris Myers
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 plan and expectations regardi
Slide 3: CVBF Current Snapshot
3 Total Assets: $6.9 Billion Gross Loans: $3.9 Billion Total Deposits (Including Repos): $5.2 Billion Tang. Common Equity: $608 Million Market Capitalization: $1.0 Billion Source: Q2 2010 earnings release & company filings; Texas Ratio = (NPA's + 90 days delinquent) / (Reserves + Tang. Common Equity
Slide 4: Experienced Leadership
4 Significant equity ownership among executive management and board of directors Total Board: 16.0%, Total Board plus 'retired' directors: 24.1% Edward J. Biebrich Jr. Executive Vice President 28 Years 12 Years Chief Financial Officer Todd E. Hollander Executive Vice President 19 Years 2 Years Sales
Slide 5: 2nd Quarter Update
2nd Quarter Update Completed FDIC and Department of Financial Institutions Safety and Soundness Examination Sold $162.8 million in securities and achieved a gain of $8.8 million Prepaid $100 million of our JP Morgan Repurchase Agreement (cost of debt = 4.95%); one-time charge of $5.7 million Record
Slide 6: Who is CVB Financial?
Who is CVB Financial? 6
Slide 7: Largest Banks Headquartered in California
Largest Banks Headquartered in California Headquartered in California Headquartered in California 7 In millions
Slide 8: Forbes 2010 America's Best Banks
Forbes 2010 America's Best Banks ($5 Billion ) 8 Rank Company Total Assets ($BIL) NPLS/ Loans % Reserves/NPLS% Tier 1 Ratio% 1 Bank of Hawaii 12 1.2 209 13.4 2 UMB Financial 10 .07 210 13.5 3 Commerce Bancshares 18 1.6 114 12.8 4 Prosperity Bancshares 9 0.3 537 11.9 5 SVB Financial 13 1.6 120 14.6 6
Slide 9: Bank Ratings & Awards
Bank Ratings & Awards ABA Banking Journal (2010) Ranked #20 in the Nation 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 The Findley Report 19 Years -
Slide 10: What are our Markets?
What are our Markets? 10
Slide 11: Existing Locations
Existing Locations 11 Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 44 Business Financial Centers 6 Commercial Banking Centers
Slide 12: Deposits
Deposits* Deposits* 12 *Includes Customer Repurchase Agreements
Slide 13: Deposit Franchise
Deposit Franchise Total Deposits Including Repos: $5.2 Billion As of 6/30/2010 13 Source: Q2 2010 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 .43%. This low cost of depo
Slide 14: Deposit Comparisons
14 Source: Q2 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion Peer data as of 3/31/2010 Deposit Comparisons Cost of Deposits (%) Core Deposits (000's) CVBF has historically enjoyed significantly lower
Slide 15: Loans
Loans Loans 15 *Prior to MTM discount
Slide 16: Total Non-Covered Loans
Total Non-Covered Loans Total Non-Covered Loans 16 (000's)
Slide 17: Loan Portfolio Composition
17 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 18: CRE & Construction Lending
(CHART) (CHART) 18 As of 6/30/2010 CRE loans totaled $2.0 billion, while construction stood at $185.2 million, or 5.3% of total loans. Construction loans totaled $265.4 million at 12/31/09 Of the CRE loans on the balance sheet, 36.3% are owner-occupied $20.6 million of the construction portfolio is
Slide 19: Real Estate Loan Exposure
(CHART) 19 As of 6/30/2010 real estate loans totaled $2.25 billion, with the largest allocation going to industrial real estate at $645 million, or 28.6% of RE loans The weighted average owner occupied level for the RE portfolio is approximately 43% CVBF's single family residential portfolio is 100%
Slide 20: Non-Performing Assets
(CHART) As of 6/30/2010 non-performing assets totaled $98 million, of which $82.9 million and $15.0 million were from non-performing loans and OREO, respectively On a peer comparison basis, CVBF's credit metrics are superior NPA's / Loans & OREO: 2.78% vs. 6.41% for peers (peers as of 3/31/10) LLR /
Slide 21: Superior Credit Quality
21 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. Superior Credit Quality Texas Ratio NPA's/Loans & OREO (CHART) (CHART) Source: Q2 2010 earnings release & other compa
Slide 22: Loan Loss Reserves to Non-Performing Loans
Loan Loss Reserves to Non-Performing Loans* 22 (CHART) *Non-covered Loans
Slide 23: Profits
Profits 23
Slide 24: Net Income
(CHART) Net Income 24 (000's) Net Income After Taxes
Slide 25: Adjusted Net Income After Tax
Adjusted Net Income After Tax (Excluding L/L Provision & Non-Recurring Items*) (Excluding L/L Provision & Non-Recurring Items*) (Excluding L/L Provision & Non-Recurring Items*) 25 *Gains (Loss) on Securities, FHLB Prepay Fees, Gain on SJB, Provision For Unfunded Commitments & Provision for Loan Loss
Slide 26: Net Interest Income
Net Interest Income Net Interest Income 26 (000's)
Slide 27: Net Interest Margin
Net Interest Margin Net Interest Margin 27 *Normalized excludes accelerated accretion on covered loans
Slide 28: Peer Profitability Metrics
28 Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q2 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion. Peer dat
Slide 29: Capital
Capital 29
Slide 30: Peer Capital Metrics
(CHART) 30 Source: Q2 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion Peer data as of 3/31/2010 Peer Capital Metrics Tier 1 Capital Ratio Total Risk - Based Capital Ratio Tangible Common Equity/Tangibl
Slide 31: Securities/Investments
Securities/Investments 31
Slide 32: Securities Available For Sale
(CHART) 32 Source: Q2 2010 earnings release. As of 6/30/2010 securities held-to-maturity were valued at approximately $3.2 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.0 billion at 6/30/2010. During 2010, the Bank s
Slide 33: Investment Portfolio Mark to Market
Investment Portfolio: $2.0 Billion - --Mark to Market- (Pre-Tax) (CHART) (000's)
Slide 34: Our Growth Strategy
Our Growth Strategy Transitioning from a Community Bank to a Regional Bank 34
Slide 35: Citizens Business Bank Vision
Citizens Business Bank: Our 10 Year 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. 35
Slide 36: Target Customer
Target Customer 36 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 37: Three Areas of Growth
Three Areas of Growth 37 (CHART) Acquisitions - --Banks-- - --Trust--
Slide 38: Same Store Sales
"Same Store Sales" 38 38 Relationship Manager (Bank) Property Management Real Estate Banking International Treasury Services Specialty Banking Construction Lending CitizensTrust Bankcard SBA Citizens Home Loans Mortgage Brokerage Title Escrow Marketing Citizens Financial Services Government Services
Slide 39: DeNovo Team Acquisitions
"DeNovo" - --Team Acquisitions-- - --Team Acquisitions-- - --Team Acquisitions-- 39 As of 6/30/10
Slide 40: 2007-2009 Bank Acquisitions
Bank Name Date Acquired Geographic Market # of Locations Total Assets (6/30/10) First Coastal Bank June 2007 South Bay 4 /3 $133,692 San Joaquin Bank October 2009 Kern County 5/4 $441,981 (000's) Total: $575,673 2007-2009 Bank Acquisitions * *Net of MTM Discount
Slide 41: CVBF Deposit Growth
CVBF Deposit Growth 12/31/2006 _ 6/30/2010 % Inc Savings/MMDA Time Depo j TotalDeposits| $3,406,808 $4,601,490) mer Repurcha:
Slide 42: CVBF Balance Sheet
CVBF Balance Sheet 42 (in millions) 12/31/06 6/30/10 Total Assets $6,092 $6,860 Total Depositsincludes REPO's $3,501 $5,197 Total Loans* $3,070 $3,932 Securities $2,583 $2,015 Borrowings $2,045 $803 Loan Loss Reserves/Loans .90% 3.38% Tangible Capital Ratio 5.8% 9.0% Tier 1 Leverage Ratio 7.8% 10.0%
Slide 43: Our Strategic Focus
Our Strategic Focus 43 Capital and strong Loan Loss Reserves are paramount Strong, disciplined credit underwriting/credit culture Drive low-cost 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 oppo
Slide 44: Thank You
THANK YOU! COPY OF PRESENTATION: JCSCHAAP@CBBANK.COM 44