Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2013)
44 slides from Cvb Financial's investor presentation, Jul 30, 2013
Slide 1: July 2013
July 2013 Exhibit 99.1
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 plans and expectations regarding future o
Slide 3: CVB Financial Corp. (CVBF)
Total Assets: $ 6.4 Billion Gross Loans: $ 3.3 Billion Total Deposits (Including Repos): $ 5.3 Billion Total Equity: $ 752 Million Source: Q2 2013 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Fo
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 29 Years 7 Years Richard C. Thomas Executive Vice President Chief Financial Officer 4 Years 3 Years James F. Dowd Executive Vice President Chief Credit Officer 36 Years 5 Years David C. Harvey E
Slide 5: Board of Directors
Board of Directors Name CVB Experience Age Ronald Kruse - Chairman 38 Years Linn Wiley - Vice Chairman 21 Years George Borba Jr. 1 Year Steve Del Guercio 1 Year Robert Jacoby 7 Years Ray O’Brien 1 Year San Vaccaro 13 Years Chris Myers - CEO 7 Years
Slide 6: Who is CVB Financial Corp.
Who is CVB Financial Corp.
Slide 7: Largest Banks Headquartered in California
11 CVB Financial Corp. 6,266 $ Source: SNL Financial Rank Name Asset Size (3/31/13) Wells Fargo 1,436,634 Union Bank 96,959 Bank of the West 62,493 First Republic Bank 35,083 City National Bank 27,434 OneWest Bank 25,369 SVB Financial 23,102 East West Bank 22,796 Cathay Bank 10,521 CapitalSource Inc
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 145 Consecutive Quarters of Profitability 95 Consecutive Quarters of Cash Dividends #6 Rated Bank: BankDirector Magazine Bank Performance Scorecard (July 2012) BauerFinancial Report Five Star Rating (July 2013) Fitch Rating BBB (October 2012) 2Q Results 2013 | cbbank.c
Slide 9: CVB Financial Corp.
CVB Financial Corp.
Slide 10: Existing Locations
Existing Locations 40 Business Financial Centers 5 Commercial Banking Centers 3 CitizensTrust Locations 2Q Results 2013 | cbbank.com
Slide 11: Deposits by Region
(000’s) # of Center Locations Total Deposits (6/30/12) Total Deposits (6/30/13) Deposits* Los Angeles County $ 1,926,234 $ 1,892,050 Inland Empire (Riverside & San Bernardino Counties) $ 1,652,751 $ 1,762,673 Central Valley $ 792,246 $ 812,072 Orange County $ 560,978 $ 600,373 Other $ 234,277 $ 256,
Slide 12: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits (000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 $ $ $ $ $ $ $ $ $
Slide 13: Deposit Cost Comparison
Source: Q2 2013 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 03/31/13 Deposit Cost Comparison 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Peers CVBF Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 14: Total Loans by Region
(000’s) Non- Covered Loans* Covered Loans* Total Loans* % Los Angeles County $ 1,187,442 $ 13,838 $ 1,201,280 35.65% Central Valley $ 675,428 $ 165,933 $ 841,361 24.97% Inland Empire (Riverside & San Bernardino Counties) $ 587,831 $ 998 $ 588,829 17.48% Orange County $ 466,674 $ 0 $ 466,674 13.85% O
Slide 15: Total Non-Covered Loans
(000’s) 3,800,000 3,600,000 3,400,000 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2Q Results 2013 | cbbank.com Total Non-Covered Loans $ $ $ $ $ $ $ $ $ $
Slide 16: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q2 2013 earnings release & company reports |Covered & Non Covered Municipal Lease Finance Receivables , 3.1% Dairy, Livestock & Agribusiness, 7.8% Commercial & Industrial, 16.3% Construction RE, 1.4% Commercial RE Owner Occupied, 23.4% Commercia
Slide 17: New/Enhanced Lending Initiatives
• Residential Real Estate • Multi-Family • Asset Based Lending New/Enhanced Lending Initiatives 2Q Results 2013 | cbbank.com
Slide 18: Other Lending Areas
Other Lending Areas For Future Consideration/Expansion • SBA 7A • Residential and Commercial Construction • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking
Slide 19: Total Covered Loans
(000’s) Net of Discount 184 million 17.5 million Includes Loans Held for Sale Total Covered Loans 500,000 400,000 300,000 200,000 100,000 - 800,000 700,000 600,000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $ $ $ $ $ $ $ $ $ $ $
Slide 20: Non-Performing Assets Non-Covered
Non-Performing Assets Non-Covered (000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 OREO Non Performing Loans - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 $ $ $ $ $ $ $ $ $ $ $-
Slide 21: Classified Loans Non-Covered
Classified Loans Non-Covered (000’s) 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2Q Results 2013 | cbbank.com $ $ $ $ $ $ $ $ $
Slide 22: Profits
Profits 2Q Results 2013 | cbbank.com
Slide 23: Net Income
Net Income Net Income After Taxes 20.4 million FHLB prepayment charge (000’s) 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 $ $ $ $ $ $ $ $ $ $ $ - $ $
Slide 24: Earnings
(000’s) 2009 2010 2011 2012 6 Months to 6/30/2013 Net Interest Income $222,264 $259,317 $234,681 $236,950 $107,184 Provision for Credit Losses ( $ 80,500) ( $ 61,200) ( $ 7,068) $ 0 6,200 Other Operating Income/Expenses (Net) ( $ 52,515) ( $ 111,378) ( $ 106,809) ( $ 122,257) ( $ 44,606) Income Taxe
Slide 25: Net Interest Margin
Net Interest Margin *Normalized excludes accelerated accretion on covered loans Normalized* 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 26: CVB Financial Corp.
CVB Financial Corp.
Slide 27: Expenses
Expenses *Includes 20.4 million FHLB prepayment charge (000’s) 6 Months to 6/30/2013 Salaries & Employee Benefits 69,419 69,993 68,496 $34,388 Promotion & Entertainment 6,084 4,977 4,869 $2,398 Stationary & Supplies 4,965 3,645 3,592 $1,848 Software Licenses & Maintenance 5,031 3,669 4,269 $2,315 Pr
Slide 28: CVB Financial Corp.
CVB Financial Corp.
Slide 29: Outstanding Debt as of 06/30/2013
Outstanding Debt as of 06/30/2013 Type of Debt Balance at 06/30/2013 Interest Rate FHLB Advance* 199,070 4.52% Fixed Other Borrowings (overnight) Subordinated Debentures CVB Statutory Trust III 25,774 3-Month LIBOR + 1.38% Total $224,844 (000’s) $ $ $ *FHLB Advance maturity is November, 28 2016. As
Slide 30: Capital
Capital 2Q Results 2013 | cbbank.com
Slide 31: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2013* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.36% Total Risk-based Capital Ratio 8.0% 10.0% 19.63% Tier 1 Leverage Ratio 4.0% 5.0% 11.54% Tangible Capital Ratio 4.0% 5.0% 11.44% Core Tier 1 Capital Ratio 17.21% Capital Ratios
Slide 32: Securities & Investments
Securities & Investments
Slide 33: Securities Portfolio
Securities Portfolio* -- 2.43 Billion-- $ Source: Q2 2013 earnings release. As of 6/30/2013 securities held-to-maturity were valued at approximately $ 1.9 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $ 2.43 billion
Slide 34: Securities Portfolio Mark-to-Market
Securities Portfolio* 2.43 Billion Mark-to-Market (Pre - tax) (000’s) *Securities Available For Sale 6,927 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 2Q Results 2013 | cbbank.com $ $ $ $ $ $ $ $ $ $ $ $
Slide 35: CVBF Assets
CVBF Assets Loans, 50.7% Securities, 37.9% Loans, 49.9% Securities 42.4% *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit Goodwill & Intangibles 0.9% Other, 7.9% Fed Balance*, 2.6
Slide 36: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Yield on Loans* Yield on Securities
Slide 37: CVBF Liabilities
CVBF Liabilities Total Deposits*, 61.4% Borrowings, 36.0% Total Deposits, 93.8% *Includes Customer Repurchase Agreements Junior subordinated Debentures, 1.9% Other Liabilities, 0.7% Other Liabilities, 2.2% Borrowings, 3.5% Junior subordinated Debentures, 0.5% 12/31/06 5.7 Billion $ 6/30/13 5.5 Billi
Slide 38: Our Growth Strategy
Our Growth Strategy 2Q Results 2013 | cbbank.com
Slide 39: 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. Our Vision
Slide 40: 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 41: Three Areas of Growth
DeNovo Same Store Sales Acquisitions --Banks-- --Trust-- Three Areas of Growth
Slide 42: Acquisition Strategy
• Target size: 200 million to 2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) Acquisition Strategy • Target size: AUM of 200 million to 1 billion • In California • In- market & ‘new’ markets $ $ $ $ --Banks-- --Trust/Investment-- --Banking
Slide 43: Our 'Critical Few'
Our ‘Critical Few’ • Loan Growth • Expand Credit Product Offerings & Capabilities • Build Core Deposits • Drive Service Charge & Fee Income Growth • Manage Operating Efficiency • Grow Through Acquisition
Slide 44: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com