Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (November 2009)
30 slides from Cvb Financial's investor presentation, Nov 10, 2009
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Slide 2: Forward-looking statements
Certain matters set forth herein constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 which involve risks and uncertainties. Our actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cau
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") ("CVBF") ("CVBF") ("CVBF") ("CVBF") 3
Slide 4: CVB Financial overview
4 Largest financial institution headquartered in the Inland Empire region of Southern California Serves 39 cities with 41 business financial centers and 5 commercial banking centers throughout the Inland Empire, LA County, Orange County and the Central Valley of California Consistent profitability,
Slide 5: Acquired bank profile (Bakersfield, CA)
Headquarters Bakersfield, CA Origin December 1980 Business Financial Centers 5 Assets $732 Million Deposits $530 Million Loans $689 Million Loss Sharing Threshold $144 Million 5
Slide 6: Existing locations and financial centers
6 6 Existing Locations Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 46 Business Financial Centers 5 Commercial Banking Centers
Slide 7: Management team
Edward J. Biebrich Jr. Executive Vice President 27 Years 11 Years Chief Financial Officer Todd E. Hollander Executive Vice President 18 Years 1 Year Sales Division Christopher D. Myers President 24 Years 3 Years Chief Executive Officer Yamynn De Angelis Executive Vice President 30 Years 22 Years Chi
Slide 8: Who is CVB Financial?
Who is CVB Financial?
Slide 9: 2008 ROAE ranking vs. banks
9 Financial Institution 2008 ROAE 1 Bank of Hawaii 24.54% 2 Bank of Ozarks 15.96% 3 Northern Trust Corp. 15.57% 4 First Financial Bankshares 15.27% 5 S&T Bancorp 14.77% 6 Westamerica Bancorp 14.77% 7 State Street Corp. 14.60% 8 TrustCo Bank Corp. NY 14.28% 9 NBT Bancorp 14.16% 10 CVB Financial Corp.
Slide 10: Awards and rankings
BauerFinancial Report (2009) '5' Star Rating ABA Banking Journal (2009) 10th Ranked Bank in the Nation U.S. Banker Magazine (2008) 6th Ranked Bank in the Nation (3-year ROE) U.S. Banker Magazine (2007) Top Business Bank in the Nation 15th Ranked Bank in the Nation America's Finest Companies Investme
Slide 11: Net interest income plus non-interest income
11 Net Interest Income Plus Non- Interest Income (Before Loan Loss Allowance) Net Income After Taxes (000's)
Slide 12: Net income after taxes
12 (000's) Net Income After Taxes
Slide 13: Net income and provision for loan losses
13 (000's) Net Income After Taxes Provision For Loan Losses
Slide 14: Deposit franchise and cost of deposits
14 Source: Q3 2009 earnings release & company filings; core deposits defined as total deposits less jumbo CD's, total deposits does not include customer repos The average cost of deposits stands at .59%. This low cost of deposits has helped the Bank expand its net interest margin to 3.75%, compared
Slide 15: Cost of deposits and core deposits vs. peers
15 Source: Q3 2009 earnings release & other company filings, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion CVB has historically enjoyed significantly lower deposit costs than its peers Core deposits have been steady throughout this difficult credit cycle, showi
Slide 16: Loans by type and region
16 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 17: CRE and construction portfolio
17 As of 9/30/2009 CRE loans totaled $1.96 billion, while construction stood at $295.3 million, or 8.2% of total loans. Construction loans totaled $351.5 million at 12/31/08 Of the CRE loans on the balance sheet, 37.8% are owner-occupied $77 million of the construction portfolio is related to reside
Slide 18: Real estate loan portfolio
18 As of 6/30/2009 real estate loans totaled $2.3 billion, with the largest allocation going to industrial real estate at $653 million, or 28.8% of RE loans The weighted average owner occupied level for the RE portfolio is approximately 46% CVB's single family portfolio is 100% owner occupied Single
Slide 19: Total mortgage pools
Total Mortgage Pools Less Capital One Pools (UC Employees) Total Mortgage Pools (excluding Capital One) Outstandings #of Loans Average Size $227,043,132 | 669 $339,377 ($18,480,532) 199 $92,867 $208,562,600 470 $443,750
Slide 20: Non-performing assets and credit metrics
As of 9/30/2009 non-performing assets totaled $59.3 million, of which $58.1 million and $1.2 million were from non-performing loans and OREO, respectively On a peer comparison basis, CVB's credit metrics are superior NPA's / Loans & OREO: 1.65% vs. 4.7% for peers LLR / NPL's: 150.2% vs. 69.9% for pe
Slide 21: Texas ratio and NPAs vs. peers
21 CVB'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. Source: Q3 2009 earnings release, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion
Slide 22: Reserves to loans
22 Reserves to loans currently stands at 2.43%, up from 1.44% and 0.95% at 12/31/2008 and 12/31/2007.
Slide 23: Pre-tax pre-provision ROA vs. peers
23 On a "PTPP" earnings basis, CVB continues to outperform its competitors The Bank's focus on controlling expenses is ongoing, the Bank had an efficiency ratio of 52.4% for the quarter ended 9/30/2009 CVB has never reported an annual loss in over thirty years The Bank continues to pay a per-share d
Slide 24: Performance ratios vs. peers
24 Source: Q3 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 9/30/09 Source: Q3 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billio
Slide 25: Capital ratios
25 Source: Q3 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 9/30/09 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
Slide 26: Securities portfolio
26 Source: Q3 2009 earnings release. As of 9/30/2009 securities held-to-maturity were valued at approximately $4.2 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.3 billion at the end of the third quarter, 2009. During
Slide 27: Dec - Mar - June - $7,120 $39,023 ($10,100) $47,439 $42,197 June - 09
Dec - 07 Mar - 08 June - 08 $7,120 $39,023 ($10,100) $47,439 $42,197 June - 09 Sep. - 09 $82,480
Slide 28: Organic growth and growth through acquisitions
28 28 Organic Growth 5 New Commercial Banking Teams One Specialty Banking Team Total Deposits increased (including REPO's) by $944 million from 9/30/08 to 9/30/09 Growth Through Acquisitions FDIC Assisted "Good Banks" Trust/Wealth Management
Slide 29: Investment highlights
29 Quality low-cost core deposit franchise Disciplined credit culture Strong capital position Well-positioned to expand business High-quality client relationships Talented bankers/rainmakers Strong capital base for acquisitions Diminished local competition Strong board ownership position (16%) Attra
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CVB Financial — Investor Presentation (November 2009) on 6ix