Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (December 2012)
44 slides from Cvb Financial's investor presentation, Dec 5, 2012
Slide 1: CVB Financial Corp. December 2012
CVB Financial Corp. December 2012
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) at a glance
3 Total Assets: $6.3 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): $5.2 Billion Total Equity: $754 Million Source: Q3 2012 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Foun
Slide 4: Experienced Leadership
4 Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 28 Years 6 Years Richard C. Thomas Executive Vice President Chief Financial Officer 3 Years 2 Years James F. Dowd Executive Vice President Chief Credit Officer 35 Years 4 Years David C. Harvey
Slide 5: Board of Directors
5 Board of Directors Name CVBF Experience Age Ronald Kruse—Chairman 38 Years 73 Linn Wiley – Vice Chairman 21 Years 74 George Borba Jr. New 45 Steve Del Guercio New 51 Robert Jacoby 7 Years 71 Ray O’Brien New 55 San Vaccaro 13 Years 79 Chris Myers – CEO 6 Years 50
Slide 6: Who is… CVB Financial Corp.?
Who is… CVB Financial Corp.?
Slide 7: Largest Banks Headquartered in California
7 Largest Banks Headquartered in California Rank Name Asset Size (9/30/12) 1 Wells Fargo $1,374,715 2 Union Bank $88,185 3 Bank of the West $63,037 4 First Republic Bank $32,576 5 City National Bank $26,252 6 OneWest Bank $25,827 7 East West Bank $21,813 8 SVB Financial $21,577 9 Cathay Bank $10,605
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 142 Consecutive Quarters of Profitability 93 Consecutive Quarters of Cash Dividends #6 Rated Bank: BankDirector Magazine Bank Performance Scorecard (July 2012) BauerFinancial Report Five Star Rating (September 2012) Fitch Rating BBB (October 2012)
Slide 9: Our Markets
Our Markets
Slide 10: Existing Locations
Existing Locations 10 41 Business Financial Centers 5 Commercial Banking Centers
Slide 11: Deposits
Deposits* Deposits* *Includes Customer Repurchase Agreements; Balance as of balance sheet date Average Cost of Deposits (year to date) 0.23% 0.15%
Slide 12: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits Non-Interest Bearing Deposits (000’s)
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison 13 Source: Q3 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion. (CHART)
Slide 14: Service Charge Income
Service Charge Income* Service Charge Income* 14 *Includes Customer Repurchase Agreements Average Cost of Deposits (Year to Date) 0.23% 0.15%
Slide 15: Total Loans as of 9/30/2012
Total Loans* as of 9/30/2012 as of 9/30/2012 as of 9/30/2012 *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale)
Slide 16: Total Non-Covered Loans
(CHART) Total Non-Covered Loans (000’s)
Slide 17: Loan Portfolio Composition
(CHART) 17 Source: Q3 2012 earnings release & company reports | *Non-covered loans Loan Portfolio Composition* Total Loans by Type Commercial RE Non-Owner Occupied 40.3% Consumer 1.4% SFR Mortgage 4.9% Municipal Lease Finance Receivables 3.4% Auto & Equipment 0.4% Dairy, Livestock & Agribusiness 9.2
Slide 18: Total Covered Loans
Total Covered Loans (000’s) (CHART) Net of Discount $184 million $28.6 million Includes Loans Held for Sale
Slide 19: Non-Performing Assets
Non-Performing Assets Non-Covered Non-Covered Non-Covered 19 (000’s)
Slide 20: Loan Loss Allowance / Charge-Offs
Loan Loss Allowance/ Charge-Offs —Non-Covered— (CHART)
Slide 21: Classified Loans
Classified Loans Non-Covered Non-Covered Non-Covered 21 (000’s)
Slide 22: Superior Credit Quality
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. Superior Credit Quality Texas Ratio NPA’s/Loans & OREO (CHART) (CHART) Source: Q3 2012 earnings release & other company
Slide 23: Profits
Profits
Slide 24: Net Income
(CHART) Net Income (000’s) Net Income After Taxes $20.6 million FHLB prepayment charge
Slide 25: Earnings
Earnings Earnings 25 (000’s)
Slide 26: Net Interest Margin
Net Interest Margin Net Interest Margin 26 *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 27: Expenses
el Expenses
Slide 28: Expenses
Expenses Expenses 28 *Includes $20.6 million FHLB prepayment charge
Slide 29: Capital
Capital
Slide 30: Capital Ratios
Capital Ratios Capital Ratios 30 * CVB Financial Corp.—Consolidated
Slide 31: Peer Capital Metrics
(CHART) 31 Source: Q3 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion Peer Capital Metrics Tier 1 Capital Ratio Total Risk – Based Capital Ratio Tangible Common Equity/Tangible Assets (CHART) (CHART)
Slide 32: Securities/Investments
Securities/Investments
Slide 33: Securities Portfolio $2.3 Billion
(CHART) Source: Q3 2012 earnings release. As of 09/30/2012 securities held-to-maturity were valued at approximately $2.1million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.3 billion at 9/30/2012. The portfolio represent
Slide 34: Securities Portfolio Mark-to-Market
(CHART) Securities Portfolio* $2.3 Billion Mark-to-Market (Pre-tax) (000’s) *Securities Available For Sale $83,561 MBS & CMO’s $36,742 Municipal Bonds $46,561 Other Securities $258
Slide 35: CVBF Assets
CVBF Assets 35 *Includes overnight funds held at the Federal Reserve, Interest earning—due from Correspondent Banks, other short-term money market accounts or certificates of deposit 9/30/12 $6.3 Billion (CHART) 12/31/06 $6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans 2.4%
Slide 36: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion 9/30/12 $5.6 Billion (CHART) TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS (CHART) Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements
Slide 37: Our Growth Strategy
Our Growth Strategy
Slide 38: Our Vision
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. 38
Slide 39: Target Customer
Target Customer 39 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 40: Three Areas of Growth
Three Areas of Growth 40 (CHART) Acquisitions —Banks— —Trust—
Slide 41: Acquisition Strategy
Acquisition Strategy Target size: $200 million to $2 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California only) —Banks— —Trust/Investment— Target size: AUM of $200 million to $1 billion In California —Banking Teams— In- market & ‘new’ markets
Slide 42: Our 'Critical Few'
Our ‘Critical Few’ Quality Loan Growth Non-Interest Bearing Deposit Growth Non-Interest Income Growth Expense Control Grow Through Acquisition
Slide 43: Our Strategic Focus
Our Strategic Focus 43 Strong Capital position Strong, disciplined credit underwriting/credit culture Build low-cost, sustainable deposits Multiple forms of growth (don’t depend on one) Same Store Sales DeNovo Acquisitions Cross-sell: capture the whole wallet Drive expense efficiency Long-term outlo
Slide 44: Copy of Presentation: www.cbbank.com
Copy of Presentation: www.cbbank.com
CVB Financial — Investor Presentation (December 2012) on 6ix