Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (February 2012)
43 slides from Cvb Financial's investor presentation, Feb 7, 2012
Slide 1: February 2012
Exhibit 99.1 February 2012 February 2012
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 overview
Total Assets: $6.5 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): Total Equity: $715 Million Source: Q4 2011 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Formed in 1974. Ser
Slide 4: Executive management
Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 27 Years 5 Years Richard C. Thomas Executive Vice President Chief Financial Officer 2 Years 1 Year James F. Dowd Executive Vice President Chief Credit Officer 35 Years 4 Years David C. Harvey Executive Vice President
Slide 5: Who is CVB Financial Corp.?
“Whois. CVB Financial Corp.?
Slide 6: California banks ranked by asset size
Rank Name Asset Size (12/31/11) In millions *One West Bank’s asset size is as of 9/30/11 Wells Fargo $1,313,867 Union Bank $89,676 Bank of the West $62,408 First Republic Bank $27,792 OneWest Bank* $27,391 City National Bank $23,666 East West Bank $21,969 SVB Financial $19,969 Cathay Bank $10,645 CV
Slide 7: Consecutive profitability, dividends and ratings
• 139 Consecutive Quarters of Profitability • 89 Consecutive Quarters of Cash Dividends • BauerFinancial Report – Five Star Rating (September 2011) • Fitch Rating – BBB (October 2011)
Slide 8: Our Markets
Slide 9: Business financial centers and commercial banking centers
42 Business Financial Centers 5 Commercial Banking Centers 42 Business Financial Centers 5 Commercial Banking Centers
Slide 10: Deposits by region
(000’s) # of Center Locations Total Deposits (12/31/10) Total Deposits (12/31/11) *Includes Customer Repurchase Agreements; full-year average Los Angeles County $1,793,171 $1,872,623 Inland Empire (Riverside & San Bernardino Counties) $1,529,042 $1,592,445 Central Valley $838,198 $821,994 Orange Cou
Slide 11: Deposit comparison versus peers
Source: Q4 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. Peer Data as of 9/30/2011
Slide 12: Loans by region
(000’s) Non-Covered Loans Covered Loans* Total Loans* % *Prior to MTM discount and loan loss reserve Los Angeles County $1,118,619 $15,632 $1,134,251 31.90% Central Valley $593,133 $252,072 $845,205 23.77% Inland Empire (Riverside & San Bernardino Counties) $633,881 $2,753 $636,634 17.90% Orange Cou
Slide 13: Adjusted non-covered loans
(000’s) *Removed Mortgage Pools and Construction Adjusted Non-Covered Loans*
Slide 14: Total loans by type
Source: Q4 2011 earnings release & company reports | *Non-covered loans Total Loans by Type Commercial RE Non-Owner Occupied 38.7% Consumer 1.6% SFR Mortgage 5.5% Municipal Lease Finance Receivables 3.5% Auto & Equipment 0.5% Dairy, Livestock & Agribusiness 10.8% Commercial & Industrial 15.3% Constr
Slide 15: Total covered loans
Total Covered Loans $200 million $800,000 $700,000 $600,000 $500,000 $67.9 million a = 3 2 =x TEtn{ ——— Trae [ I a Trady ——_—_ TI — te Tr-qed Se 11 $400,000 $300,000 $200,000 $100,000
Slide 16: Non-performing assets
$180,000 $160,000 $140,000 | $120,000 $100,000 — wil ll in $80,000 $60,000 $40,000 $20,000 $- Non-Performing Assets Non-Covered Qa @ 8 Qt Qt Q@ Q Qt Q @ 3 Qt a @z 3 @ 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 @ Non-Performing Loans ~ OREO ye
Slide 17: Credit quality trend
4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Ql Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 4 2007 2008 2009 2010 2011
Slide 18: Credit quality trend by quarter
Ql Q2 03 Q4 G1 O2 Q3 O4 OL Q2 03 O4 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011
Slide 19: Texas ratio and NPAs versus peers
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. Texas Ratio NPA’s/Loans & OREO Source: Q4 2011earnings release & other company filings, SNL Financial—peers represent pu
Slide 20: Profits
Slide 21: Net income after taxes
21 (000’s) Net Income After Taxes Highest in CVBF History!
Slide 22: Net interest income and net profit after tax
2007 2008 2009 2010 (000’s) Net Interest Income $161,142 $193,679 $222,264 $259,317 $234,681 Provision for Credit Losses ($4,000) ($26,600) ($80,500) ($61,200) ($7,068) Other Operating Income/Expenses (Net) ($74,079) ($81,331) ($52,515) ($111,378) ($106,809) Income Taxes ($22,479) ($22,675) ($23,830
Slide 23: Net income history
$90,000 $80,000 Net Income $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 S$ 2000 2001 2002 2003 2004 2605 2006 2007 2008 2009 2010 2011 ~-Net Profit After Tax te
Slide 24: Normalized net interest margin
*Normalized excludes accelerated accretion on covered loans Normalized*
Slide 25: Peer profitability metrics
Peer Profitability Metrics 1.50% 20.00% | 10% 9 ns 0.50% + i I 10.00% = CBF | more —— 2007 @ aaa a a a Prec | | 2010 2010 20102010 2011 2011 2011 2011 0.00% |2007 21 a3 Qs ai a2 a3 as 5.00% 2810-2010 2010 2010 2011 201¥ 2091 2011 “1.00% | -10.00% -} “1.50% © | 15.00% © = Net Interest Margin 5.00% 45
Slide 26: Capital
Slide 27: Regulatory capital ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio September 30, 2011 *12/31/11 ratios should be at or above 9/30/11 numbers. Information will be available in the 10K filing for 2011 Tier 1 Risk-based Capital Ratio 4.0% 6.0% 17.6% Total Risk-based Capital Ratio 8.0% 10.0% 18.8% Tier 1 Levera
Slide 28: Capital ratios versus peers
Tier 1 Capital Ratio Total Risk – Based Capital Ratio Tangible Common Equity/Tangible Assets Source: Q3 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion
Slide 29: Securities/Investments
Slide 30: Securities portfolio
Securities Portfolio* --$2.2 Billion-- ~ —
Slide 31: Securities available for sale
(000’s) *Securities Available For Sale
Slide 32: Asset composition
*Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit Loans Securities Fed Balance* Other Goodwill & Intangibles 12/31/11 $6.5 Billion 12/31/06 $6.1 Billion Securities Fed Balance* Goodwill & Intangibles
Slide 33: Deposits including customer repurchase agreements
*Includes Customer Repurchase Agreements
Slide 34: Recent Updates & Highlights
Slide 35: Recent updates
• The class action lawsuit against CVBF, which sought to draft onto the SEC's investigation, was dismissed in its entirety by the federal court in Los Angeles. However, an amended and restated complaint by the plaintiffs is possible. • In late December 2011, Citizens Business Bank prepaid $100 milli
Slide 36: Our Growth Strategy
Slide 37: Citizens Business Bank vision
Citizens Business Bank will strive to Citizens Business Bank will strive to become the dominant financial become the dominant financial services company operating services company operating throughout the state of California, throughout the state of California, servicing the comprehensive financial
Slide 38: Target customers
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 The best privately-held and/or family-owned businesses throughout California — Annual reve
Slide 39: Acquisitions
Acquisitions --Banks-- --Trust--
Slide 40: Acquisition criteria for banks and trust
• Conventional M&A • Target size: $300 million to $3 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) 40 • Target size: AUM of $300 million to $1.5 billion • In California --Banks-- --Trust/Investment--
Slide 41: Growth priorities
• • Quality Loan Growth Quality Loan Growth • • Non-Interest Bearing Deposit Growth Non-Interest Bearing Deposit Growth • • Non-Interest Income Growth Non-Interest Income Growth • • Expense Control Expense Control • • Grow Through Acquisition Grow Through Acquisition
Slide 42: 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 oppo
Slide 43: Copy of Presentation: www.cbbank.com
Copy of Presentation: www.cbbank.com Copy of Presentation: www.cbbank.com
CVB Financial — Investor Presentation (February 2012) on 6ix