Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Merger or Acquisition (February 2016)
47 slides from Cvb Financial's merger presentation, Feb 11, 2016
Slide 1: CVB Financial Corp. February 2016
CVB Financial Corp. February 2016
Slide 2: Safe Harbor
Safe Harbor 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 regard
Slide 3: CVB Financial Corp. (CVBF) at a glance
Total Assets: $7.7 Billion Gross Loans: $4.0 Billion Total Deposits (Including Repos):$6.6 Billion Total Equity: $923 Million Source: Q4 2015 earnings release & company filings. CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California.
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 Years Richard C. Thomas Executive Vice President Chief Financial Officer 6 Years 5 Years James F. Dowd Executive Vice President Chief Credit Officer 39 Years 8 Years David C. Harvey E
Slide 5: Board of Directors
Board of Directors Name CVB Experience Age Ray O’Brien - Chairman 3 Years 59 George Borba Jr. - Vice Chairman 3 Years 48 Steve Del Guercio 3 Years 54 Robert Jacoby 11 Years 74 Kristina Leslie NEW 51 Hal Oswalt 2 Years 67 San Vaccaro 17 Years 82 Chris Myers - CEO 9 Years 53
Slide 6: Who is CVB Financial Corp.?
CVB Financial Corp. Who is CVB Financial Corp.?
Slide 7: Largest Banks Headquartered in California
Largest Banks Headquartered in California* Source: SNL Financial In millions Rank Name Asset Size (12/31/15) 1 Wells Fargo & Company $1,787,632 2 First Republic Bank $58,981 3 SVB Financial Group $44,687 4 East West Bancorp $32,351 5 Pacwest Bancorp $21,288 6 Cathay General Bancorp $13,254 7 Banc of
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 155 Consecutive Quarters of Profitability 105 Consecutive Quarters of Cash Dividends #1 Rated Bank: Forbes America’s Best Banks (January 2016) BauerFinancial Report Five Star Rating (September 2015) 82 Consecutive Quarters Fitch Rating BBB (September 2015)
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 40 Business Financial Centers 8 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust Ventura CBC – NEW Opened January 2015 Santa Barbara CBC– NEW Opened December 2015
Slide 11: New Acquisition County Commerce Bank 'CNYB'
New Acquisition County Commerce Bank ‘CNYB’
Slide 12: Transaction Highlights
Transaction Highlights Overview CNYB Balance Sheet (000’s) as of 12/31/2015 Headquarters Oxnard, CA Establishment Date 2003 Total Branches 4 Number of Employees 41 Total Assets $256,100 Total Loans $164,400 Total Deposits $225,800
Slide 13: Geographic Locations
Geographic Locations Citizens Business Bank County Commerce Bank Santa Barbara
Slide 14: 'CNYB' Purchase Price
‘CNYB’ Purchase Price $41.25 Million (50% Cash, 50% Stock) 1.70 x Tangible Book 3.5 Years Earn-back
Slide 15: Financial Performance
CVB Financial Corp. Financial Performance
Slide 16: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (12/31/14) Total Deposits (12/31/15) Los Angeles County 18 $2,154,938 $2,423,655 Inland Empire (Riverside & San Bernardino Counties) 9 $1,913,988 $1,989,432 Orange County 9 $878,466 $964,868 Central Valley 9 $920,951 $912,532 Other 3 $299,942 $3
Slide 17: Total Deposits
Total Deposits* (000’s) *Interest Bearing Deposits includes REPOs
Slide 18: Deposit Cost Comparison
Deposit Cost Comparison Source: Q4 2015 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. Peer Data is as of 12/31/2015
Slide 19: Loans by Region
(000’s) # of Center Locations Average Loans per Location Total Loans* (12/31/2015) Los Angeles County 18 $90,912 $1,636,415 Central Valley 9 $94,034 $846,306 Inland Empire (Riverside & San Bernardino Counties) 9 $74,453 $670,077 Orange County 9 $58,041 $522,373 Other 3 $353,930 Total $4,029,101 *Pri
Slide 20: Total Loans
Total Loans* (000’s) *Starting in the 4th quarter of 2014, covered and non-covered loans are combined (Purchase Credit Impaired or PCI) Before deferred loan fees, discount on PCI loans, and loans held for sale Includes covered and non-covered loans for all periods presented
Slide 21: Loan Portfolio Composition
Source: Q4 2015 earnings release & company reports Starting in the 4th quarter of 2014, covered and non-covered loans are combined Loan Portfolio Composition Total Loans by Type
Slide 22: Credit Quality
CVB Financial Corp. Credit Quality
Slide 23: Non-Performing Assets
Non-Performing Assets* (000’s) *Non-Covered assets | Starting in the 4th quarter of 2014, covered and non-covered assets are combined
Slide 24: Classified Loans
Classified Loans* (000’s) *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined
Slide 25: Loans: Net Charge-Offs
Loans: Net Charge-Offs* (000’s) *Non-Covered | Starting in the 4th quarter of 2014, covered and non-covered loans are combined -
Slide 26: Profits
CVB Financial Corp. Profits
Slide 27: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 28: Earnings
Earnings (000’s) 2011 2012 2013 2014 12 Months to 12/31/2015 Net Interest Income $234,681 $236,950 $216,266 $236,514 $252,942 Provision for Loan Losses ($7,068) $0 $16,750 $16,100 $5,600 Other Operating Income/Expenses (Net) ($106,809) ($122,257) ($88,741) ($89,817) ($107,176) Income Taxes ($39,071)
Slide 29: Net Interest Margin
Net Interest Margin *Normalized tax-equivalent excludes accretion on covered loans (Purchase Credit Impaired) Normalized*
Slide 30: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 31: Efficiency Ratio
Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 44.34%
Slide 32: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 1.64% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge
Slide 33: Capital
CVB Financial Corp. Capital
Slide 34: Capital Ratios
Capital Ratios * CVB Financial Corp. – Consolidated (regulatory capital ratios are preliminary) Adequately Capitalized Ratio Well-Capitalized Ratio December 31, 2015* Tier 1 Risk-based Capital Ratio 6.0% 8.0% 16.98% Total Risk-based Capital Ratio 8.0% 10.0% 18.23% Common Equity Tier 1 Capital Ratio
Slide 35: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 36: Securities Portfolio
Source: Q4 2015 earnings release | Yield on securities represents the fully taxable equivalent $2.37 Billion *Available For Sale Yield on securities portfolio = 2.51% for the 4th Quarter 2015 Securities Portfolio* --$3.2 Billion-- $851.0 Million *Held to Maturity
Slide 37: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.37 Billion Mark-to-Market (Pre-tax) (000’s) *Available For Sale $30,931
Slide 38: CVBF Assets
CVBF Assets *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit 12/31/15 $7.7 Billion 12/31/06 $6.1 Billion
Slide 39: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion **Includes Available for Sale and Held to Maturity, TE
Slide 40: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion 12/31/15 $6.7 Billion *Includes Customer Repurchase Agreements
Slide 41: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 42: Our Vision
Our Vision Citizens Business Bank will strive to become the premier financial services company operating throughout the state of California, servicing the comprehensive financial needs of successful small to medium sized businesses and their owners.
Slide 43: Target Customer
Target Customer 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 44: Three Areas of Growth
Three Areas of Growth Acquisitions San Diego (2014) Oxnard (2015) American Security Bank (2014) County Commerce Bank* (2016) *Projected to close in 1st quarter 2016 Santa Barbara (2015)
Slide 45: Acquisition Strategy
Target size: $200 million to $2 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California) Acquisition Strategy --Banks-- --Trust/Investment-- Target size: AUM of $200 million to $1 billion In California --Banking Teams-- In- market & ‘new’ markets
Slide 46: Our 'Critical Few'
Our ‘Critical Few’ Execute on DeNovo Growth Initiatives Pursue Strategic Acquisitions Quality Loan Growth Provide Customer Solutions Through Technology Expand Market Share Through Same Store Sales
Slide 47: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com
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