Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (March 2010)
39 slides from Cvb Financial's investor presentation, Mar 2, 2010
Slide 1: CVB Financial Corp.
CVB FINANCIAL CORP.
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 history timeline
1974 Chino Valley Bank formed 1981 CVB Financial Corp. (holding company formed) 1996 Chino Valley Bank becomes Citizens Business Bank 2001 CVB Financial listed on NASDAQ ("CVBF") 3
Slide 4: Financial and operating highlights
4 Total Assets: $6.7 Billion Net Loans: $4.0 Billion Total Deposits (Including Repos): $4.9 Billion Tang. Common Equity: $570 Million Market Capitalization: $918 Million Source: Q4 2009 earnings release & company filings; Texas Ratio = (NPA's + 90 days delinquent) / (Reserves + Tang. Common Equity)
Slide 5: San Joaquin Bank profile
Headquarters Bakersfield, CA Origin December 1980 Business Financial Centers 5 Assets $736 Million Deposits $530 Million Loans $689 Million 5 5
Slide 6: FDIC loss sharing terms
Loss sharing threshold of $144 million FDIC reimburses 80% of losses up to $144 million and 95% of any losses over threshold SJB assets acquired at a $57.6 million discount (2x loss sharing) 6
Slide 7: San Joaquin Bank: Then & Now
San Joaquin Bank: Then & Now 10/16/09 12/31/09 Bu: ) 4 Assets $736 Million $667 Million Deposits $530 Million $432 Million Loans $689 Million $655 Million Loans (as marked) iii $471 Million
Slide 8: San Joaquin Bank Deposits
San Joaquin Bank Deposits 10/16/09 % 12/31/09 % $176,787| 33.49 {in thousands)
Slide 9: Commercial Banking Centers and Business Financial Centers
9 Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 44 Business Financial Centers 6 Commercial Banking Centers
Slide 10: Senior management and board alignment
10 Interests of senior management and board of directors aligned with those of shareholders Significant equity ownership among executive management and board of directors Total Board: 15.42%, Borba family: 12.63% Edward J. Biebrich Jr. Executive Vice President 28 Years 12 Years Chief Financial Offic
Slide 11: Who is CVB Financial?
Who is CVB Financial?
Slide 12: Forbes 2010 America's Best Banks
Forbes 2010 America’s Best Banks ($5 Billion ) Total Rank Company Base fee, Came val 1 Bank of Hawaii 12 a2 209 2 UMB Financial 10 07 210 3 Commerce Bancshares 18 1.6 114 4 Prosperity Bancshares 9 03 537 5 SVBFinancial 13 16 120 6 CVB Financial 7 16 150 i Community Bank System 5 05 249 8 Central Ban
Slide 13: Rankings and ratings
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 ABA Banking Journal (2009) 10th Ranked Bank in the Nation The Findley Report 19 Consecutive Years - Supe
Slide 14: Net Income After Taxes
14 (000's) Net Income After Taxes All-time High
Slide 15: Net Income and Provision for Loan Losses
15 (000's) Net Income After Taxes Provision For Loan Losses
Slide 16: Deposit franchise and cost of deposits
16 Source: Q4 2009 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 .53%. This low cost of deposits has helped the Bank expand its net interest margin to 3.75%, compared to 3
Slide 17: Cost of deposits and core deposits vs peers
17 Source: Q4 2009 earnings release & other company filings, SNL Financial-peers represent select public CA banks with assets $2 - $22 billion Source: Q4 2009 earnings release & other company filings, SNL Financial-peers represent select public CA banks with assets $2 - $22 billion Cost of Deposits
Slide 18: Total loans by type and region
18 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 19: Commercial real estate and construction portfolio
19 As of 12/31/2009 CRE loans totaled $1.99 billion, while construction stood at $265.4 million, or 7.3% of total loans. Construction loans totaled $351.5 million at 12/31/08 Of the CRE loans on the balance sheet, 37.3% are owner-occupied $68.5 million of the construction portfolio is related to res
Slide 20: Real estate loan portfolio
20 As of 12/31/2009 real estate loans totaled $2.3 billion, with the largest allocation going to industrial real estate at $670 million, or 29.7% of RE loans The weighted average owner occupied level for the RE portfolio is approximately 45% CVBF's single family residential portfolio is 100% owner o
Slide 21: Non-performing assets and credit metrics
As of 12/31/2009 non-performing assets totaled $73.7 million, of which $69.8 million and $3.9 million were from non-performing loans and OREO, respectively On a peer comparison basis, CVBF's credit metrics are superior NPA's / Loans & OREO: 2.04% vs. 5.24% for peers LLR / NPL's: 156.1% vs. 79.0% for
Slide 22: Texas Ratio and NPAs vs peers
22 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. losses. losses. losses. Texas Ratio NPA's/Loans & OREO Source: Q4 2009 earnings release & other company filings, SNL
Slide 23: Loan Loss Reserves to Non-Performing Loans
Loan Loss Reserves to Non-Performing Loans 156% 150% 146% Q1 2009 Q2 2009 Q3 2009 Q4 2009
Slide 24: ROAA, ROATE and net interest margin vs peers
24 24 Return on Average Assets Return on Average Tangible Equity Net Interest Margin Source: Q4 2009 earnings release & other company filings, SNL Financial-peers represent select public CA banks with assets $2 - $22 billion
Slide 25: Capital ratios
25 Source: Q4 2009 earnings release & other company filings, SNL Financial-peers represent select public CA banks with assets $2 - $22 billion PF TCE/TA ratio reflects net proceeds of a $115 million common equity raise with a 15% over-allotment option, as well as the redemption of TARP preferred sto
Slide 26: Securities portfolio
26 Source: Q4 2009 earnings release. As of 12/31/2009 securities held-to-maturity were valued at approximately $3.8 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.1 billion at the end of 2009. During 2009, the Bank so
Slide 27: Dec - Mar - June - $7,120 $39,023 ($10,100) $47,439 $42,197 Sep- 09 Dec
Dec - 07 Mar - 08 June - 08 $7,120 $39,023 ($10,100) $47,439 $42,197 Sep- 09 Dec - 09 $82,480 ($30,331) Sep - 08 Dec - 08 Mar - 09 June - 09 June - 09
Slide 28: Transitioning from a Community Bank to a Regional Bank
Transitioning from a Community Bank to a Regional Bank 28
Slide 29: Vision for Citizens Business Bank
Citizens Business Bank will become the dominant financial services company operating throughout the state of California, servicing the comprehensive financial needs of the premiere businesses (and their principals) with annual sales/revenues of $1 million to $200 million. 29 29
Slide 30: Target customer profile
30 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 31: Acquisitions: Banks and Trust
31 Acquisitions - --Banks-- - --Trust- - -
Slide 32: Quarterback strategy and product offerings
32 32 Relationship Manager (Bank) Property Management Real Estate Banking International Treasury Services Specialty Banking Construction Lending CitizensTrus t Bankcard SBA Citizens Home Loans Mortgage Brokerage Title Escrow Marketing Citizens Financial Services Government Services Deposit Services
Slide 33: Strategy: build infrastructure
33 - --Strategy-- Build infrastructure via new hires Chris Walters, EVP Sean Kraus, SVP & Chief Investment Officer Six new 'sales' hires Build infrastructure via expanded product offerings Open architecture Life Insurance/Annuities, etc. Acquire Registered Investment Advisors
Slide 34: Specialty Banking Group and team acquisitions
Specialty Banking Group San Fernando Valley CBC Inland Empire CBC South Bay CBC Burbank CBC: Produce Orange County CBC Los Angeles CBC (000’s) As of 12/31/09 “DeNovo” --Team Acquisitions-- January 2008 June 2008 July 2008 August 2008 January 2008 New New Administration Total $116,240 $30,595 $13,427
Slide 35: Bank acquisitions
Bank Name Date Acquired Geographic Market # of Locations Total Assets (12/31/09) First Coastal Bank June 2007 South Bay 4 /3 $120,814 San Joaquin Bank October 2009 Kern County 5/4 $666,521 (000's) Total: $787,335 Trust Acquisitions - --None--
Slide 36: CVBF Deposit Growth
CVBF Deposit Growth Non-Interest Bearing Demand 1 $1,561,981 Interest Checking $318,431 $469,413 Savings/MMDA $1,213,002 Time Deposi $1,194,258 Total Deposits $4,438,654 Customer Repurchase Agreements 3 $485,132 Total Deposits & 3,501,158 $4,923,7 Customer Repurchases _°2/502, ORnES
Slide 37: CVBF Balance Sheet
CVBF Balance Sheet {in millions) Total Assets Total Deposits includes REPO’s Total Loans* Securities Borrowings Loan Loss Reserves/Loans Tier 1 Tangible Ratio Tier 1 Leverage Ratio Total Risk Based Capital “Covered and Non-Covered
Slide 38: Key strategic priorities
38 Capital and strong Loan Loss Reserves are paramount Strong, disciplined credit underwriting/credit culture Drive low-cost deposits Acquire the customers....don't depend on loss sharing Multiple forms of growth (don't depend on one) Same Store Sales DeNovo Acquisitions Control our destiny; 'earn'
Slide 39: Thank You
THANK YOU! COPY OF PRESENTATION: JCSCHAAP@CBBANK.COM 2010 sherice