Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (December 2009)
33 slides from Cvb Financial's investor presentation, Dec 1, 2009
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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 plan and expectations regarding future op
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") on NASDAQ ("CVBF") on NASDAQ ("CVBF") on NASDAQ ("CVBF") 3
Slide 4: CVB Financial Corp. overview
4 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 Valley of California Consistent profitability,
Slide 5: San Joaquin Bank acquisition profile
Headquarters Bakersfield, CA Origin December 1980 Business Financial Centers 5 Assets $736 Million Deposits $530 Million Loans $689 Million 5
Slide 6: FDIC loss sharing terms
Loss sharing threshold of $144 million FDIC reimburses 80% of losses up to $144 million and 95% of any losses over threshold SJB assets acquired at a $57.6 million discount (2x loss sharing) 6
Slide 7: Pro forma company profile
Total Assets $7.1 Billion Net Loans $4.1 Billion Total Deposits $4.5 Billion Branch Locations 51 7
Slide 8: Business financial center locations
8 Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 46 Business Financial Centers 5 Commercial Banking Centers
Slide 9: Deposit market share
9 As of November 6th, 2009, with deposits of $4.7* billion, CVBF ranked 18th in California and 14th in its operating footprint by deposit market share As of June 30th, 2009, CVBF held $4.0 billion in deposits, representing an increase of 23.9% from the year earlier period Source: FDIC market share d
Slide 10: Experienced management team
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
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Slide 12: 2008 ROAE ranking versus banks
12 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 13: Awards and ratings
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 14: Net interest and non-interest income
14 Net Interest Income Plus Non- Interest Income (Before Loan Loss Allowance) Net Income After Taxes (000's)
Slide 15: Net income after taxes
15 (000's) Net Income After Taxes All-time High
Slide 16: Net income and provision for loan losses
16 (000's) Net Income After Taxes Provision For Loan Losses
Slide 17: Deposit composition and cost
17 Source: Q3 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 .59%. This low cost of deposits has helped the Bank expand its net interest margin to 3.75%, compared
Slide 18: Cost of deposits and core deposits versus peers
18 Source: Q3 2009 earnings release & other company filings, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion CVBF has historically enjoyed significantly lower deposit costs than its peers Core deposits have been steady throughout this difficult credit cycle, show
Slide 19: Loan portfolio by type and region
19 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 and industrial centers Pro
Slide 20: CRE and construction portfolio
20 As of 9/30/2009 CRE loans totaled $1.96 billion, while construction stood at $295.3 million, or 8.2% of total loans. Construction loans totaled $351.5 million at 12/31/08 Of the CRE loans on the balance sheet, 37.8% are owner-occupied $77 million of the construction portfolio is related to reside
Slide 21: Real estate loan portfolio
21 As of 6/30/2009 real estate loans totaled $2.3 billion, with the largest allocation going to industrial real estate at $665 million, or 28.8% of RE loans The weighted average owner occupied level for the RE portfolio is approximately 46% CVBF's single family portfolio is 100% owner occupied Singl
Slide 22: Residential mortgage pools
Residential Mortgage Pools 9/30/09 Outstandings #ofLoans Average Size Total Mortgage Pools | $227,043,132 | 669 $339,377 Less Capital One Pools ($18,480,532) 199 $92,867 (UC Employees) Total Mortgage Pools | $208,562,600 | 470 $443,750 (excluding Capital One)
Slide 23: Non-performing assets
As of 9/30/2009 non-performing assets totaled $59.3 million, of which $58.1 million and $1.2 million were from non-performing loans and OREO, respectively On a peer comparison basis, CVBF's credit metrics are superior NPA's / Loans & OREO: 1.65% vs. 4.7% for peers LLR / NPL's: 150.2% vs. 69.9% for p
Slide 24: Credit metrics versus peers
24 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. Source: Q3 2009 earnings release, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billio
Slide 25: Reserves to loans
25 Reserves to loans currently stands at 2.43%, up from 1.44% and 0.95% at 12/31/2008 and 12/31/2007.
Slide 26: Pre-tax pre-provision ROA and efficiency
26 On a "PTPP" earnings basis, CVBF continues to outperform its competitors The Bank's focus on controlling expenses is ongoing, the Bank had an efficiency ratio of 52.4% for the quarter ended 9/30/2009 CVBF has never reported an annual loss in over thirty years The Bank continues to pay a per-share
Slide 27: Performance ratios versus peers
27 Source: Q3 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 9/30/09 Source: Q3 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billio
Slide 28: Capital ratios
28 Source: Q3 2009 earnings release & company reports, SNL Financial-peers represent select CA, OR & WA banks with assets $2 - $9.5 billion, peer data as of 9/30/09 PF TCE/TA ratio reflects net proceeds of a $115 million common equity raise with a 15% over-allotment option, as well as the redemption
Slide 29: Securities portfolio
29 Source: Q3 2009 earnings release. As of 9/30/2009 securities held-to-maturity were valued at approximately $4.2 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.3 billion at the end of the third quarter, 2009. During
Slide 30: Dec - Mar - June - $7,120 $39,023 ($10,100) $47,439 $42,197 June - 09
Dec - 07 Mar - 08 June - 08 $7,120 $39,023 ($10,100) $47,439 $42,197 June - 09 Sep. - 09 $82,480
Slide 31: Growth strategy: organic and acquisitions
31 31 Organic Growth 5 New Commercial Banking Teams One Specialty Banking Team Total Deposits increased (including REPO's) by $944 million from 9/30/08 to 9/30/09 Growth Through Acquisitions FDIC Assisted (San Joaquin Bank) Trust/Wealth Management "Good Banks"
Slide 32: Investment highlights
32 Quality low-cost core deposit franchise Disciplined credit culture Strong capital position Well-positioned to expand business High-quality client relationships Talented bankers/rainmakers Strong capital base for acquisitions Diminished local competition Strong board ownership position (16%) Attra
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