Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (September 2009)
28 slides from Cvb Financial's investor presentation, Sep 9, 2009
Slide 1: CVB Financial Corp.
CVB FINANCIAL CORP.
Slide 2: Safe Harbor
2 Safe Harbor 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
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") NASDAQ ("CVBF") NASDAQ ("CVBF") NASDAQ ("CVBF") 3
Slide 4: CVB Current Snapshot
4 CVB Current Snapshot Operating Highlights 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 Valle
Slide 5: Position of Franchise
5 Position of Franchise As of June 30th, 2008, with deposits of $3.2 billion, CVB ranked 25th in California and 17th in its operating footprint by deposit market share As of June 30th, 2009, CVB held $4.0 billion in deposits, representing an increase of 22.9% from the year earlier period Source: FDI
Slide 6: Experienced Leadership
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 7: Offering Terms
7 Issuer CVB Financial Corp. (NASDAQ:CVBF) Type of Security Follow - on Common Equity Transaction Size $132.5 Million # of Shares Issued 22.7 Million Offering Price $5.85 Current Price $7.51 ( as of 8/26/09) Use of Proceeds Redemption of TARP (Sept. 2, 2009) Co-Bookrunner Keefe, Bruyette & Woods, In
Slide 8: Why Did We Raise Capital?
8 Why Did We Raise Capital? Strengthens CVB's tangible common equity position Gives CVB flexibility to redeem its TARP and eliminate 50% of associated warrants Eliminates strategic restriction and negative stigma of government ownership Positions CVB to be opportunistic Support organic growth Attrac
Slide 9: Why Is CVB Financial...
IS CVB FINANCI
Slide 10: 2008 ROAE ranking versus financial institutions
10 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 11: 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 12: Net Interest Income Plus Non-Interest Income
12 Net Interest Income Plus Non- Interest Income (Before Loan Loss Allowance) Net Income After Taxes (000's)
Slide 13: Net Income After Taxes and Provision For Loan Losses
(000's) $40,000 $35,000 $30,000 $25,000 $20,000 =H + 02 03 G4 G1 G2 G3 a a1 a2 a a a1 a2 a a a a2 a a a @ 2004 2004 2004 2008 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2008 2009 Net Income After Taxes Provision For Loan Losses
Slide 14: Deposit Franchise
14 Deposit Franchise Total Deposits: $4.0 Billion As of 6/30/2009 Source: Q2 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 .67%. This low cost of deposits has hel
Slide 15: Deposit Composition
15 Deposit Composition Source: Q2 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
Slide 16: Loan Portfolio Composition
16 Loan Portfolio Composition 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
Slide 17: CRE & Construction Lending
17 CRE & Construction Lending CRE Portfolio by Region Construction Portfolio by Region As of 6/30/2009 CRE loans totaled $1.96 billion, while construction stood at $303.6 million, or 8.4% of total loans. Construction loans totaled $351.5 million at 12/31/08 Of the CRE loans on the balance sheet, 37.
Slide 18: Real Estate Loan Exposure
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: Non Performing Loans
19 Source: Q2 2009 earnings release and other company filings, Peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 3/31/09 Non Performing Loans As of 6/30/2009 non performing assets totaled $55.3 million, of which $51.3 million and $4.0 million were from non perfo
Slide 20: Superior Credit Quality
20 Superior Credit Quality 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. Reserves to loans currently stands at 2.07%, up from 1.44% and 1.06% for the periods ended 12/
Slide 21: Earnings Power
21 Earnings Power 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 61.3% for the quarter ended 6/30/2009 CVB has never reported an annual loss in over thirty years The Bank continues to pa
Slide 22: Peer Profitability Metrics
22 Peer Profitability Metrics Source: Q2 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 3/31/09
Slide 23: Peer Capital Metrics
23 Peer Capital Metrics Source: Q2 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 3/31/09 PF TCE/TA ratio reflects net proceeds of a $115 million common equity raise with a 15% over-allotment option, as w
Slide 24: Securities Portfolio
24 Securities Portfolio Source: Q2 2009 earnings release. As of 6/30/2009 securities held-to-maturity were valued at approximately $6.3 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.3 billion at the end of the second
Slide 25: Investment Portfolio: $2.3 Billion
Investment Portfolio: $2.3 Billion - --Mark to Market-- Dec - 07 Mar - 08 June - 08 $7,120 $39,023 ($10,100) $47,439 $42,197 June - 09
Slide 26: Why Invest in CVB Financial? Growth
26 Why Invest in CVB Financial? Organic 5 New Commercial Banking Teams One Specialty Banking Team Total New Deposits of $350 Million in last 12 Months Acquisitions Government Assisted "Good Banks" Trust/Wealth Management
Slide 27: Why Invest in CVB Financial?
27 Why Invest in CVB Financial? Strong capital base coupled with an intense focus on credit quality Quality core deposit franchise Well-positioned to expand business Relationships Senior talent Acquisitions Diminished local competition Board and management aligned with shareholders' interests Attrac
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