Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (June 2011)
44 slides from Cvb Financial's investor presentation, Jun 9, 2011
Slide 1: CVB Financial Corp. June 2011
CVB FINANCIAL CORP. June 2011 1
Slide 2: Safe Harbor
Safe Harbor 2 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 regar
Slide 3: CVBF Snapshot
3 Total Assets: $6.5 Billion Gross Loans: $3.6 Billion Total Deposits (Including Repos): $5.1 Billion Tang. Common Equity: $591 Million Source: Q1 2011 earnings release & company filings. *non-covered loans Operating Highlights Financial Highlights 3/31/11 Largest financial institution headquartered
Slide 4: Experienced Leadership
4 Significant equity ownership board of directors: approximately 16% Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 27 Years 5 Years Richard C. Thomas Executive Vice President Chief Financial Officer 1 Year New James F. Dowd Executive Vice P
Slide 5: Who is CVB Financial?
Who is CVB Financial? ee
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California 6 Rank Name Asset Size (3/31/11) 1 Wells Fargo $1,244,666 2 Union Bank $80,190 3 Bank of the West $58,342 4 OneWest Bank $26,720 5 First Republic Bank $23,576 6 City National Bank $21,636 7 East West Bank $21,147 8 SVB Financial $18,618 9 Cathay Bank $10,614
Slide 7: Bank Ratings
Bank Ratings BauerFinancial Report Five Star Rating (March 2011) Fitch Rating BBB (December 2010) 7
Slide 8: What are our Markets?
What are our Markets? 8
Slide 9: Existing Locations
Existing Locations 9 43 Business Financial Centers 5 Commercial Banking Centers Commercial Banking Centers Business Financial Centers
Slide 10: Deposits
Deposits* 10 10 *Includes Customer Repurchase Agreements Average Cost of Deposits 0.53% 0.27%
Slide 11: Deposit Cost Comparison
Deposit Cost Comparison 11 Source: Q1 2011 earnings release & other company filings, SNL Financial-peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion (CHART)
Slide 12: Loans as of 3/31/2011
Loans as of 3/31/2011 as of 3/31/2011 as of 3/31/2011 12 *Prior to MTM discount
Slide 13: Total Non-Covered Loans
Total Non-Covered Loans Total Non-Covered Loans 13 (000's) *Removed Mortgage Pools, Muni Leasing and Construction Adjusted Non-Covered Loans* $690 million $392 million
Slide 14: Loan Portfolio Composition
14 Source: Q1 2011 earnings release & company reports | *Non-covered loans Loan Portfolio Composition* Total Loans by Type (CHART) Commercial RE Non-Owner Occupied 38.6% Consumer 1.6% SFR Mortgage 6.3% Municipal Lease Finance Receivables 3.8% Auto & Equipment 0.5% Dairy , Livestock & Agribusiness 10
Slide 15: Total Covered Loans
Total Covered Loans 15 (000's) (CHART) Net of Discount $200 million $98 million
Slide 16: Non-Performing Assets
Non-Performing Assets 16 16 (000's)
Slide 17: Loan Loss Allowance Non-Covered
Loan Loss Allowance Non-Covered 17 (CHART)
Slide 18: Superior Credit Quality
18 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: Q1 2011earnings release & other compan
Slide 19: Profits
Profits 19
Slide 20: Net Income
(CHART) Net Income 20 (000's) Net Income After Taxes
Slide 21: Earnings
Earnings Earnings 21 (000's)
Slide 22: Net Interest Margin
Net Interest Margin Net Interest Margin 22 *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 23: Peer Profitability Metrics
23 Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q1 2011 earnings release & other company filings, SNL Financial-peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 24: Capital
Capital 24
Slide 25: Regulatory Capital Ratios
Regul Well-Capitalized Ratio Tier 1 Risk-based Capital Ratio . 6.0% 17.0% Total Risk-based Capital Ratio 5. 10.0% 18.4% Tier I Leverage Ratio . 5.0% 10.8% | Tangible Capital Ratio 9.2% Core Tier 1 Capital Ratio 14.3%
Slide 26: Peer Capital Metrics
(CHART) 26 Source: Q1 2011 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 27: Securities/Investments
Securities/Investments 27
Slide 28: Securities Portfolio $2.0 Billion
(CHART) 28 Source: Q1 2011 earnings release. As of 3/31/2011 securities held-to-maturity were valued at approximately $3.0 million Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.0 billion at 3/31/2011. The portfolio represen
Slide 29: Investment Portfolio Mark to Market
Investment Portfolio: $2.0 Billion --Mark to Market-- (Pretax) (CHART) (000's)
Slide 30: CVBF Assets
CVBF Assets 30 *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit 3/31/11 $6.5 Billion (CHART) 12/31/06 $6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans 6.9%
Slide 31: CVBF Liabilities
CVBF Liabilities 31 12/31/2006 $5.7 Billion 3/31/2011 $5.8 Billion (CHART) TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS (CHART) Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements
Slide 32: 1st Quarter Events
1st Quarter Events 32
Slide 33: Former Largest Borrowing Relationship
Former Largest Borrowing Relationship 33 Sold six of seven notes to an unrelated third party on March 25, 2011. The six notes sold for $41 million (bank carrying value of $42.9 million and a legal principal balance of $78.1 million) --Terms of Sale-- $36 million in cash $5 million in the form of a n
Slide 34: SEC Update
SEC Update ( of
Slide 35: SEC Investigation
SEC Investigation 35 Announcement of an SEC Subpoena in August of 2010 CVBF is fully cooperating with the SEC CVBF has no insight into the timing or duration of the investigation at this time
Slide 36: Our Growth Strategy
Our Growth Strategy 36
Slide 37: 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. 37
Slide 38: Target Customer
Target Customer 38 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 39: Three Areas of Growth
(CHART) Three Areas of Growth 39 Acquisitions --Banks-- --Trust--
Slide 40: Acquisition Strategy
Acquisition Strategy FDIC-assisted & conventional M&A Target size: $300 million to $3 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California only) 40 --Banks-- --Trust/Investment-- Target size: AUM of $300 million to $1.5 billion In California
Slide 41: 2011 Strategy: Four Key Objectives
2011 Strategy: Four Key Objectives 41
Slide 42: 2011 Strategy: Four Key Objectives
2011 Strategy: Four Key Objectives Quality Loan Growth Non-Interest Bearing Deposit Growth Non-Interest Income Growth Expense Control 42
Slide 43: Our Strategic Focus
43 Our Strategic Focus Strong Capital position Strong, disciplined credit underwriting/credit culture Drive low-cost, sustainable deposits Multiple forms of growth (don't depend on one) Same Store Sales DeNovo Acquisitions Cross-sell: capture the whole wallet Build new Fee Income opportunities Long-
Slide 44: CVB Financial Corp.
CVB FINANCIAL CORP. Copy of Presentation: www.cbbank.com 44