Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Shareholder Meeting (May 2015)
50 slides from Cvb Financial's shareholder meeting presentation, May 21, 2015
Slide 1: 40th Annual Shareholders Meeting May 20th 2015
40th Annual Shareholders Meeting May 20th 2015
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: Senior Leadership Team
Senior Leadership Team Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 Years Richard C. Thomas Executive Vice President 5 Years 4 Years Chief Financial Officer James F. Dowd Executive Vice President 38 Years 7 Years Chief Credit Officer David C. Harvey E
Slide 4: Senior Leadership Team
Senior Leadership Team Name Position Banking Experience CVBF Service Ted Dondanville Senior Vice President 33 Years 16 Years Commercial Banking Hector Gutierrez Senior Vice President 33 Years 4 Years Deputy Chief Credit Officer David Krebs Senior Vice President 21 Years 12 Years Human Resources Jame
Slide 5: Senior Managers
Senior Managers Greg Armstrong SVP—Upland CBC Randy Irwin SVP—Agribusiness Bruce Beck SVP – Construction Loan Duane Keene SVP—Covina BFC Errol Berman SVP—South Bay CBC Harold Koenigsaecker SVP – Special Assets Michael Duran SVP—Brea BFC Frank Rozario SVP—Orange County CBC Vince Gottuso SVP—Ontario A
Slide 6: CVB Financial Corp.
CVB Financial Corp.
Slide 7: CVB Financial Corp. (CVBF)
CVB Financial Corp. (CVBF) 2013 2014 Total Assets: $6.7 Billion $7.4 Billion Gross Loans: $3.5 Billion $3.8 Billion Total Deposits (Including Repos): $5.5 Billion $6.2 Billion Net Income: $95.6 Million $104 Million Total Equity: $772 Million $878 Million Largest financial institution headquartered i
Slide 8: Largest Banks Headquartered in California
Largest Banks Headquartered in California Rank Name Asset Size (3/31/15) 1 Wells Fargo $1,737,737 2 Union Bank $113,698 3 Bank of the West $70,938 4 First Republic Bank $51,066 5 SVB Financial $39,696 6 City National Bank $32,699 7 East West Bank $29,907 8 OneWest Bank $21,307 9 Pacific Western Bank
Slide 9: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 152 Consecutive Quarters of Profitability 102 Consecutive Quarters of Cash Dividends #4 Rated Bank: BankDirector Magazine Bank Performance Scorecard (August 2014) BauerFinancial Report Five Star Rating (December 2014) 79 Consecutive Quarters Fitch Rating BBB (September
Slide 10: Our Markets
CVB Financial Corp. Our Markets
Slide 11: Existing Locations
Existing Locations 3/31/14 3/31/15 Business Financial Centers 37 40 Commercial Banking Centers 6 7 CitizensTrust Locations 3 3 Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust New: San Diego June 2014 New: Oxnard March 2015
Slide 12: What's New
CVB Financial Corp. What's New
Slide 13: American Security Bank
American Security Bank May 15, 2014
Slide 14: American Security Bank Acquisition
#1 American Security Bank Acquisition Date: May 15, 2014 Overview ASB Balance Sheet (000’s) Headquarters Newport Beach, CA Total Assets $436,400 Establishment Date 1990 Total Loans $242,700 Total Branches 5 Total Deposits $378,374
Slide 15: American Security Bank at May 2015
American Security Bank at May 2015 Citizens Business Bank American Security Bank
Slide 16: #2 New Location: Carmel Valley
#2 New Location: Carmel Valley (San Diego County) Opened June 2014 | 6 Associates
Slide 17: #3 New Team: Downtown Los Angeles
#3 New Team: Downtown Los Angeles January 2015 | 3 Associates
Slide 18: #4 Federal Home Loan Bank Debt
#4 Federal Home Loan Bank Debt $200 Million repaid on February 23, 2015 Maturity: November 2016 Interest Rate: 4.52% Prepayment Penalty: $13.9 Million Projected quarterly savings = $2.125 Million
Slide 19: #5 New Location: Oxnard
#5 New Location: Oxnard (Ventura County) Opened March 2015 | 6 Associates
Slide 20: #6 Cash Dividend Increase
#6 Cash Dividend Increase On March 18, 2015, the Board of Directors elected to increased the cash dividend from $.10 per share to $.12 per share
Slide 21: Financial Results
CVB Financial Corp. Financial Results
Slide 22: Deposits
Deposits* # of Center Total Deposits Total Deposits Locations (3/31/14) (3/31/15) (000’s) Los Angeles County 18 $1,959,624 $2,347,804 Inland Empire 9 $1,948,785 $1,992,402 (Riverside & San Bernardino Counties) Central Valley 9 $870,202 $909,278 Orange County 9 $705,761 $907,308 Other 2 $253,216 $301
Slide 23: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 (000’s) Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 cbbank.com
Slide 24: Total Loans
Total Loans as of 03/31/2015 Average # of Center Total Loans* Loans per Locations (3/31/2015) (000’s) Location Los Angeles County 18 $83,955 $1,511,185 Central Valley 9 $83,002 $747,017 Inland Empire 9 $71,246 $641,214 (Riverside & San Bernardino Counties) Orange County 9 $59,327 $533,943 Other 2 $1
Slide 25: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Other, 4.2% Dairy, Livestock & Agribusiness, 4.7% Commercial & SFR Mortgage, Industrial, 5.5% 11.2% Multi-Family, Construction 5.7% RE, 1.5% Commercial Commercial RE- Non- RE—Owner Owner, 42.4% Occupied, 24.8% Source: Q1 2015 earnings release & company
Slide 26: Loans: Net Charge-Offs
Loans: Net Charge-Offs* $10,000 $0 $10,000 2009 2010 2011 2012 2013 2014 Q1 2015 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 (000’s) Net Charge-Offs (by year) *Non-Covered | Starting in the 4th quarter of 2014, covered and non-covered loans are combined cbbank.com
Slide 27: CitizensTrust
CVB Financial Corp. CitizensTrust
Slide 28: CitizensTrust
CitizensTrust 03/31/15 2013 2014 (Annualized) Assets Under Administration $2.3 Billion $2.4 Billion $2.5 Billion and Management* Gross Income (full year) $8.1 Million $8.1 Million $8.6 Million *As of 12/31/13 and 12/31/14 cbbank.com 28
Slide 29: Profits
CVB Financial Corp. Profits
Slide 30: Net Income
Net Income $32,500 $30,000 $27,500 $25,000 $22,500 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2009 2010 2011 2012 2013 2014 2015 $20.4 million FHLB prepayment charge Net Income After Taxes $13.9 m
Slide 31: Earnings
Earnings (000’s) 2011 2012 2013 2014 Net Interest Income $234,681 $236,950 $216,266 $236,514 Provision for Loan Losses ($7,068) $0 $16,750 $16,100 Other Operating ($106,809) ($122,257) ($88,741) ($89,817) Income/Expenses (Net) Income Taxes ($39,071) ($37,413) ($48,667) ($58,776) Net Profit After Tax
Slide 32: Interest Rate Challenges Ahead
2015 Interest Rate Challenges Ahead cbbank.com 32
Slide 33: Net Interest Margin
Net Interest Margin 4.25% 3.92% 4.00% 3.75% 3.53% 3.50% 3.25% 2.92% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 Normalized* *Normalized excludes accelerated accretion on covered loans
Slide 34: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 35: Securities Portfolio
Securities Portfolio* —$3.0 Billion— Trust Preferred 0.17% Municipal Yield on securities CMO’s / Bonds 18.16% portfolio = 2.59% REMIC’s 9.52% for the 1st Quarter 2015 Government Agency & Mortgage GSEs 10.89% Backed Securities 61.26% Securities portfolio totaled $3.0 billion at 3/31/2015. The portfol
Slide 36: Securities Portfolio Mark-to-Market
Securities Portfolio* $3.0 Billion Mark-to-Market (Pre-tax) $100,000 $73,846 $80,000 $60,000 $40,000 $20,000 $0 -$20,000 -$40,000 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15
Slide 37: CVBF Assets
CVBF Assets 12/31/06 $6.1 Billion 3/31/15 $7.4 Billion Loans, Securities 42.4% Loans, Securities net net 40.7% 49.9% 49.1% Fed Balance* Goodwill & 2.4% Fed Intangibles Other Balance* 0.7% 4.6% Goodwill & 4.2% Intangibles Other 1.0% 5.0% *Includes overnight funds held at the Federal Reserve, Interest
Slide 38: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 Yield on Loans* Yield on Securities *Excluding Discount Accretion
Slide 39: CVBF Liabilities
CVBF Liabilities 12/31/06 Junior 3/31/15 $5.7 Billion subordinated Debentures $6.5 Billion 1.9% Borrowings Other Junior Liabilities 0.0% subordinated Borrowings 0.95% Debentures 36.0% Total 0.39% Deposits* 61.4% Other Total Liabilities Deposits* 0.7% 98.66% *Includes Customer Repurchase Agreements
Slide 40: Capital
CVB Financial Corp. Capital
Slide 41: Capital Ratios
Capital Ratios Regulatory Regulatory March 31, 2015* Minimum Ratio Well-Capitalized Ratio Tier 1 Risk-based Capital Ratio 6.0% 8.0% 17.56% Total Risk-based Capital Ratio 8.0% 10.0% 18.81% Tier 1 Leverage Ratio 4.0% 5.0% 10.94% Common Equity Tier 1 Capital Ratio 4.5% 6.5% 17.01% Tangible Capital Rati
Slide 42: May 2015 Shareholder Update
May 2015 -Shareholder Update- cbbank.com 42
Slide 43: CVBF Stock Price
CVBF Stock Price $ $ $ $ $ 4 $ 6 $ 8 $ 10 12 14 16 18 May-09 $ 6 Aug-09 56 . Nov-09 (05/13/09)Shareholders Feb-10 May-10 Meeting Aug-10 $ 9 $ Average Nov-10 22 . 10. Feb-11 38 annual (Ma)(y)-11 (05/18/11)Shareholders (05/18/10)Shareholders Aug-11 Nov-11 Meeting Meeting $ Feb-12 11 increase . May-12
Slide 44: 2015 & Beyond: Our Growth Strategy
—2015 & Beyond— Our Growth Strategy
Slide 45: 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. cbbank.com 45
Slide 46: 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 cbbank.com 46
Slide 47: Three Areas of Growth
Three Areas of Growth Community Commercial Banking Banking Private Banking cbbank.com 47
Slide 48: Quarterback Strategy
“Quarterback Strategy” Customer Relationship Credit Marketing Manager Management Division (Bank) Dairy & Construction Specialty Treasury Livestock Management International Lending Banking Real Estate Government CitizensTrust Agribusiness Citizens Banking Services Merchant Equipment Bankcard Financin
Slide 49: Our 2015 'Critical Few'
Our 2015 ‘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 50: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com