Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (November 2010)
44 slides from Cvb Financial's investor presentation, Nov 1, 2010
Slide 1: CVB Financial Corp. November 2010
CVB FINANCIAL CORP. 1 November 2010
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 Snapshot
3 Total Assets: $6.5 Billion Gross Loans: $3.8 Billion Total Deposits (Including Repos): $5.1 Billion Tang. Common Equity: $600 Million Source: Q3 2010 earnings release & company filings. *non-covered loans Operating Highlights Financial Highlights 9/30/10 Largest financial institution headquartered
Slide 4: Experienced Leadership
4 Significant equity ownership among executive management and board of directors Total Board: 16.2%, Total Board plus 'retired' directors: 24.2% (estimated) Edward J. Biebrich Jr. Executive Vice President 28 Years 12 Years Chief Financial Officer Todd E. Hollander Executive Vice President 19 Years 2
Slide 5: Who is CVB Financial?
Who is CVB Financial? 5
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California Headquartered in California Headquartered in California 6 In millions
Slide 7: Forbes 2010 America's Best Banks
Forbes 2010 America's Best Banks ($5 Billion ) 7 Rank Company Total Assets ($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 8: Bank Ratings & Awards
Bank Ratings & Awards 8 Bank Director Magazine (2010) Ranked #9 in the Nation...profitability, capital adequacy & asset quality Forbes Magazine (2010) Ranked #6 in the Nation BauerFinancial Report (2010) '5' Star Rating The Findley Report 19 Years - Super Premier Performing Bank 11 Years - Premier P
Slide 9: What are our Markets?
What are our Markets? 9
Slide 10: Existing Locations
Existing Locations 10 Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 44 Business Financial Centers 5 Commercial Banking Centers
Slide 11: Deposits
Deposits* 11 11 *Includes Customer Repurchase Agreements
Slide 12: Deposit Franchise
Deposit Franchise Total Deposits Including Repos: $5.1 Billion As of 9/30/2010 12 Source: Q3 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 .37%. This low cost of depo
Slide 13: Loans as of 9/30/2010
Loans as of 9/30/2010 13 13 *Prior to MTM discount
Slide 14: Total Non-Covered Loans
Total Non-Covered Loans Total Non-Covered Loans 14 (000's)
Slide 15: Loan Portfolio Composition
15 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 16: CRE & Construction Lending
(CHART) (CHART) 16 As of 9/30/2010 CRE loans totaled $2.0 billion, while construction stood at $169.2 million, or 4.9% of total loans. Construction loans totaled $265.4 million at 12/31/09 Of the CRE loans on the balance sheet, 36.4% are owner-occupied $19.8 million of the construction portfolio is
Slide 17: Non-Performing Assets
As of 9/30/2010 non-performing assets totaled $176 million, of which $158.9 million and $17.4 million were from non-performing loans and OREO, respectively As of 9/30/2010 over 30 to 89 days past due loans totaled 0.24% 17 Non-Performing Assets* *Non-Covered Loans Source: Q3 2010 earnings release &
Slide 18: Loan Loss Allowance
Loan Loss Allowance 18 (CHART)
Slide 19: Superior Credit Quality
19 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: Q3 2010 earnings release & other compa
Slide 20: Profits
Profits 20
Slide 21: Net Income
(CHART) Net Income 21 (000's) Net Income After Taxes
Slide 22: 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*) 22 *Gains (Loss) on Securities, FHLB Prepay Fees, Gain on SJB, Provision For Unfunded Commitments & Provision for Loan Loss
Slide 23: Net Interest Margin
Net Interest Margin Net Interest Margin 23 *Normalized excludes accelerated accretion on covered loans
Slide 24: Peer Profitability Metrics
24 Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q3 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 25: Capital
Te | Capital
Slide 26: Capital Ratios
Capital Ratios Capital Ratios 26
Slide 27: Peer Capital Metrics
(CHART) 27 Source: Q3 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 6/30/2010 Peer Capital Metrics Tier 1 Capital Ratio Total Risk - Based Capital Ratio Tangible Common Equity/Tangi
Slide 28: Securities/Investments
Securities/Investments 28
Slide 29: Securities Portfolio
(CHART) 29 Source: Q3 2010 earnings release. As of 9/30/2010 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 $1.9 billion at 9/30/2010. The portfolio represent
Slide 30: Investment Portfolio Mark to Market
Investment Portfolio: $1.9 Billion - --Mark to Market- (Pre-Tax) (CHART) (000's)
Slide 31: 3rd Quarter Events
3rd Quarter Events 31
Slide 32: Security Sales
Security Sales 32 Sold $528 million in mortgage-backed securities and collateralized mortgage obligations Total gains: $30 million Three primary reasons Strengthen our balance sheet & capital position Payoff $150 million in Repo debt ($7.6 million pre-pay charge) Payoff $100 million in FHLB borrowin
Slide 33: Largest Borrowing Relationship
Largest Borrowing Relationship Comprised of 7 loans totaling $81.4 million in total debt ('gross' balance). After taking a $33.8 million charge-off and subsequent receipt of other scheduled payments, Citizens Business Bank 'book' balance of loans totals $46.8 million (all loans are on non- accrual 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 9/30/10
Slide 40: 2007-2009 Bank Acquisitions
Bank Name Date Acquired Geographic Market # of Locations Total Assets (9/30/10) First Coastal Bank June 2007 South Bay 4 /3 $147,423 San Joaquin Bank October 2009 Kern County 5/4 $406,236 (000's) Total: $553,659 2007-2009 Bank Acquisitions * *Net of MTM Discount
Slide 41: CVBF Deposit Growth
CVBF Deposit Growth (000s) 12/31/2006 | 9/30/2010 Non-Interest Bearing Demand $1,363,411 $1,699,096 Interest Checking $318,431 $356,068 Savings/MMDA $896,988 $1,276,464 Time Deposits $827,978 $1,190,836 Total Deposits $3,406,808 $4,522,464 Customer Repurchase Agreements $94,350 $557,573 Total Deposi
Slide 42: CVBF Balance Sheet
CVBF Balance Sheet 42 (in millions) 12/31/06 9/30/10 Total Assets $6,092 $6,484 Total Depositsincludes REPO's $3,501 $5,080 Total Loans* $3,070 $3,826 Securities $2,583 $1,915 Borrowings $2,045 $553 Cost of Funds 3.13% .90% Loan Loss Reserves/Loans .90% 3.08% Tangible Capital Ratio 5.80% 9.10% Tier
Slide 43: Our Strategic Focus
Our Strategic Focus 43 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-
Slide 44: Thank You
THANK YOU! COPY OF PRESENTATION: JCSCHAAP@CBBANK.COM 44
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