Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (March 2011)
50 slides from Cvb Financial's investor presentation, Mar 7, 2011
Slide 1: CVB Financial Corp. March 2011
CVB FINANCIAL CORP. March 2011 1
Slide 2: Safe Harbor
Safe Harbor 2 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 regar
Slide 3: CVBF Snapshot
3 Total Assets: $6.4 BillionGross Loans: $3.8 BillionTotal Deposits (Including Repos): $5.1 BillionTang. Common Equity: $580 Million Source: Q4 2010 earnings release & company filings. *non-covered loans Operating Highlights Financial Highlights 12/31/10 Largest financial institution headquartered i
Slide 4: Experienced Leadership
4 Significant equity ownership board of directors: approximately 16% Richard C. Thomas Executive Vice President 1 Year New Chief Financial Officer David A. Brager Executive Vice President 23 Years 8 Years Sales Division Christopher D. Myers President 26 Years 5 Years Chief Executive Officer Yamynn D
Slide 5: Who is CVB Financial?
Who is CVB Financial? 5
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California 6 In millions Rank Name Asset Size(12/31/10) 1 Wells Fargo $1,258,128 2 Union Bank $78,675 3 Bank of the West $57,653 4 OneWest Bank $27,153 5 First Republic Bank $22,378 6 City National Bank $21,353 7 East West Bank $20,701 8 SVB Financial $17,528 9 Cathay
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 qualityForbes Magazine (2010)Ranked #6 in the NationBauerFinancial Report (2010)'5' Star RatingThe Findley Report19 Years - Super Premier Performing Bank11 Years - Premier Performin
Slide 9: Existing Locations
Existing Locations 10 43 Business Financial Centers5 Commercial Banking Centers Commercial Banking Centers Business Financial Centers
Slide 10: Deposits
Deposits* 11 11 *Includes Customer Repurchase Agreements
Slide 11: Deposit Franchise
Deposit Franchise Total Deposits Including Repos: $5.1 Billion As of 12/31/2010 12 Source: Q4 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 .33%. This low cost of dep
Slide 12: Loans as of 12/31/2010
Loans as of 12/31/2010 13 13 *Prior to MTM discount
Slide 13: Total Non-Covered Loans
Total Non-Covered Loans 14 14 (000's) *removed Mortgage Pools, Muni Leasing and Construction Adjusted Non-Covered Loans* $690 million $440 million
Slide 14: Loan Breakdown
(CHART) Loan Breakdown* 15 *Non Covered Loans (000's)
Slide 15: Loan Breakdown: Commercial Real Estate
Loan Breakdown* Commercial Real Estate 16 *Non Covered Loans (CHART) (000's)
Slide 16: Total Covered Loans
Total Covered Loans 17 (000's) (CHART) Net of Discount $200 million $115 million
Slide 17: Loan Portfolio Composition
18 Geographic diversification, a focus on relationship banking, and a strong credit culture have allowed CVB to mitigate loan losses through this economic downturnCVB has a strong CRE banking team, lending to projects involving apartment buildings, commercial office space and industrial centersProfi
Slide 18: CRE & Construction Lending
(CHART) (CHART) 19 As of 12/31/2010 CRE loans totaled $2 billion, while construction stood at $139 million, or 4.2% of total loans. Construction loans totaled $265.4 million at 12/31/09Of the CRE loans on the balance sheet, 36.2% are owner-occupied$16.8 million of the construction portfolio is relat
Slide 19: Non-Performing Assets
As of 12/31/2010 non-performing assets totaled $162 million, of which $157 million and $5.3 million were from non-performing loans and OREO, respectively 20 Non-Performing Assets* *Non-Covered Loans Source: Q4 2010 earnings release & other company filings. (CHART) Largest Borrower RE Construction -
Slide 20: Loan Loss Allowance
Loan Loss Allowance Non-Covered 21 (CHART)
Slide 21: Superior Credit Quality
22 CVBF's strong loan underwriting culture has limited its exposure to problem creditsContinued 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: Q4 2010 earnings release & other compan
Slide 22: Profits
Profits 23
Slide 23: Net Income
(CHART) Net Income 24 (000's) Net Income After Taxes
Slide 24: 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*) 25 *Gains (Loss) on Securities, FHLB Prepay Fees, Gain on SJB, Provision For Unfunded Commitments & Provision for Loan Loss
Slide 25: Earnings
Earnings Earnings 26 (000's)
Slide 26: Net Interest Margin
Net Interest Margin Net Interest Margin 27 *Normalized excludes accelerated accretion on covered loans Normalized
Slide 27: Peer Profitability Metrics
28 Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q4 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion.
Slide 28: Capital
Capital 29
Slide 29: Capital Ratios
Capital Ratios Capitalized Dec 31, 2010 Tier ed Total Risk-based
Slide 30: Peer Capital Metrics
(CHART) 31 Source: Q4 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion Peer Capital Metrics Tier 1 Capital Ratio Total Risk - Based Capital Ratio Tangible Common Equity/Tangible Assets (CHART) (CHART)
Slide 31: Securities/Investments
Securities/Investments 32
Slide 32: Securities Portfolio
(CHART) 33 Source: Q4 2010 earnings release. As of 12/31/2010 securities held-to-maturity were valued at approximately $3.1 millionYield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $1.8 billion at 12/31/2010. The portfolio represen
Slide 33: CVBF Assets
CVBF Assets 34 *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit 12/31/10$6.4 Billion (CHART) 12/31/06$6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans
Slide 34: Investment Portfolio Mark to Market
Investment Portfolio: $1.8 Billion --Mark to Market- (Pre-Tax) (CHART) (000's)
Slide 35: 4th Quarter Events
4th Quarter Events 36
Slide 36: Largest Borrowing Relationship
Largest Borrowing Relationship Comprised of 7 loans totaling $80.8 million in total debt ('gross' balance).After taking a $34.1 million charge-off and subsequent receipt of other scheduled payments, Citizens Business Bank 'book' balance of loans totals $45.2 million (all loans are on non- accrual st
Slide 37: OREO Expenses (4th Quarter)
'OREO' Expenses (4th Quarter) 38 38 -- $6.3 million --
Slide 38: OREO Sold: Kings County
--OREO Sold-- Kings County: 300+/- acres 39 Original Loan Amount $18 million (44% LTV) August 2005$41 million appraisal September 2008$22.7 million appraisal May 2009$13.5 million appraisal 1st Quarter 2009Non-Performing Asset 2nd Quarter 2009Charge-off $5.44 million December 2009$12.1 million appra
Slide 39: Kings County Property Sale Terms
300 acre property in Kings County:$9.0 million gross sales priceSold to third-party buyer (farmer) 40 --Terms of $9MM Sale-- $5 million cash at escrow close (December 2010)$1 million paydown by 1/31/11 (received)$3 million non-interest bearing note maturing December 2013 Accounting Treatment of $9MM
Slide 40: Our Growth Strategy
Our Growth Strategy 41
Slide 41: Citizens Business Bank: Our 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. 42
Slide 42: Target Customer
Target Customer 43 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 43: Three Areas of Growth
(CHART) Three Areas of Growth 44 Acquisitions --Banks-- --Trust--
Slide 44: Four Areas of Focus for 2011
Four Areas of Focus for 2011 45
Slide 45: Four Areas of Focus for 2011
Four Areas of Focus for 2011 Quality Loan GrowthNon-Interest Bearing Deposit GrowthNon-Interest Income GrowthExpense Control 46
Slide 46: Loan Growth
Loan Growth* Loan Growth* 47 000's *Total Loans net of SJB purchase discount
Slide 47: Non-Interest DDA Growth
Non-Interest DDA Growth Non-Interest DDA Growth 48 000's
Slide 48: Non-Interest Income Growth
Non-Interest Income Growth 49 (CHART) 000's
Slide 49: Our Strategic Focus
50 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 opportunities Long-
Slide 50: Thank You
THANK YOU!COPY OF PRESENTATION: JCSCHAAP@CBBANK.COM 51