Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (November 2011)
43 slides from Cvb Financial's investor presentation, Nov 30, 2011
Slide 1: CVB Financial Corp.
Exhibit 99.1 CVB Financial Corp. December 2011
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 plan and expectations regardi
Slide 3: CVB Financial Corp. (CVBF)
CVB Financial Corp. (CVBF) Total Assets: Gross Loans: Total Deposits (Including Repos): Tang. Common Equity: $6.5 Billion $3.5 Billion $5.1 Billion $700 Million Largest California. financial Formed institution in 1974. headquartered in the Inland Empire region of Southern throughout Serves 41 cities
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking CVBF Experience Service Christopher D. Myers President & CEO 27 Years 5 Years Executive Vice President Richard C. Thomas 2 Years 1 Year Chief Financial Officer Executive Vice President James F. Dowd 34 Years 3 Years Chief Credit Officer Executive Vice Pre
Slide 5: Who is CVB Financial Corp.?
Whois... CVB Financial Corp.?
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California Rank Name Asset Size (9/30/11) 1 Wells Fargo $1,304,945 2 Union Bank $83,539 3 Bank of the West $61,857 4 OneWest Bank $27,391 5 First Republic Bank $26,778 6 City National Bank $23,104 7 East West Bank $21,813 8 SVB Financial $19,195 9 Cathay Bank $10,499 1
Slide 7: Consecutive Quarters of Profitability and Cash Dividends; Ratings
Bank 138 Consecutive Quarters of Profitability 88 Consecutive Quarters of Cash Dividends BauerFinancial Report Five Star Rating (March 2011) Fitch Rating BBB (October 2011)
Slide 8: Our Markets
CVB Financial Corp. Our Markets
Slide 9: Existing Locations
Existing Locations 43 Business Financial Centers 5 Commercial Banking Centers Commercial Banking Centers Business Financial Centers
Slide 10: Deposits
Deposits* # of Center Total Deposits Total Deposits (000’s) Locations(9/30/10)(9/30/11) Los Angeles County 16 $17610331790112,761,033 $1,790,112 Inland Empire 12 $1,674,771 (Riverside & San Bernardino Counties) Central Valley 12 $800110800,110 $769,162 Orange County 8 $565,932 Other 0 $278,191 Total
Slide 11: Deposit Cost Comparison
Deposit Cost Comparison 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 CVBF Peers Source: Q3 2011 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 bi
Slide 12: Loans
Loans as of 9/30/2011 Non-Covered Covered Total Loans* % (000’s) Loans Loans* Los Angeles County $1,110,895 $5,588 $1,116,483 31.6% Central Valley $564,424 $287,881 $852,305 24.1% Inland Empire $620,323 $2,899 $623,222 17.6% (Riverside & San Bernardino Counties) Orange County $482,226 $0 $482,226 13
Slide 13: Total Non-Covered Loans
Total Non-Covered Loans (000’s) $3,800,000 $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 $690 million $332 million Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11
Slide 14: Loan Portfolio Composition
Loan Portfolio Composition* Total Loans by Type Municipal Lease Finance Receivables 3.6% Consumer 1.6% SFR Mortgage 5.9% Commercial RE Non-Owner Occupied 39.4% Auto & Equipment 0.5% Dairy & Livestock 9.2% Agribusiness 0.1% Commercial & Industrial 15.0% Construction RE 2.4% Commercial RE Owner Occupi
Slide 15: Total Covered Loans
Total Covered Loans ‘ $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- $200 million $68 million Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Net of Dis
Slide 16: Non-Performing Assets
Non-Performing Assets Non-Covered (000’s) $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 Non-Performing OREO
Slide 17: Loan Loss Allowance
Loan Loss Allowance Non-Covered 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
Slide 18: Classified Loans
Classified Loans Non-Covered (000’s) $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
Slide 19: Superior Credit Quality
Superior Credit Quality Texas Ratio 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 CVBF Peer NPA’s/Loans & OREO 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Non — 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010
Slide 20: Profits
CVB Financial Corp. Profits
Slide 21: Net Income
Net Income Highest in CVBF History! (000’s) $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 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 Net Income After Taxes
Slide 22: Earnings
Earnings 2007 2008 2009 2010 YTD (000’s) 9/30/2011 Net Interest Income $161,142 $193,679 $222,264 $259,317 $179,484 Provision for Credit Losses ($4,000) ($26,600) ($80,500) ($61,200) ($7,068) Other Operating ($74,079) ($81,331) ($52,515) ($111,378) ($82,832) Income/Expenses (Net) Income Taxes Income
Slide 23: Net Interest Margin
Net Interest Margin 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 Normalized* *Normalized excludes accelerated accretion o
Slide 24: Peer Profitability Metrics
Peer Profitability Metrics Return on Average Assets 2.00% 1.50% 1.00% 0.50% CVBF 0.00% Peer 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -0.50% 2010 2010 2010 2010 2011 2011 2011 -1.00% -1.50% Return on Average Tangible Equity 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2
Slide 25: Capital
CVB Financial Corp. Capital
Slide 26: Capital Ratios
Capital Ratios Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio September 30, 2011 Tier 1 Risk-based Capital Ratio 4.0% Total Risk-based Capital Ratio 8.0% Tier 1 Leverage Ratio 4.0% Tangible Capital Ratio 4.0% Core Tier 1 Capital Ratio CVB Financial Corp.
Slide 27: Peer Capital Metrics
Peer Capital Metrics Tier 1 Capital Ratio 18.00% 16.00% 14.00% 12.00% 10.00% CVBF 8.00% Peer 6.00% 4.00% 2.00% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 Total Risk – Based Capital Ratio 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2006 2007 2008 2009
Slide 28: Securities/Investments
CVB Financial Corp. Securities/Investments
Slide 29: Securities Portfolio
Securities Portfolio* —$2.2 Billion— Yield on securities portfolio: 3.65% CMO 24.5% Municipal Bonds 29.6% MBS 43.8% Government Agency & GSEs 2.1% ??Securities portfolio totaled $2.2 billion at 9/30/2011. The portfolio represents 33% of the Bank’s total assets ??Virtually all of the Bank’s mortgage-b
Slide 30: Securities Portfolio Mark to Market
Securities Portfolio* $2.2 Billion —Mark to Market— (Pretax) (000’s) $100,000 $82,480 $80,000 $75,117 $67,648 $60,000 $58,043 $58,178 $47,439 $47,154 $49,022 $42,197 $43,390 $40,000 $20,000 $10,664 $15,068 $0 -$20,000 -$10,100 -$40,000 -$30,331 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
Slide 31: CVBF Assets
CVBF Assets 12/31/06 $6.1 Billion Loans 49.9% Securities 42.4% 0.7% Goodwill & Intangibles 4.6% Other 2.4% Fed Balance* 9/30/11 $6.5 Billion 51.5% Loans Securities 33.2% 0.9% Goodwill & Intangibles 6.8% Other 7.6% Fed Balance* *Includes overnight funds held at the Federal Reserve, due from Correspon
Slide 32: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion BORROWINGS 36.0% Jr. Subordinated 1.9% Debentures 0.7% Other Liabilities 61.4% TOTAL DEPOSITS* 9/30/11 $5.8 Billion BORROWINGS 9.4% Other 1.6% Liabilities Jr. Subordinated 2.0% Debentures 87.0% TOTAL DEPOSITS* *Includes Customer Repurchase Agreements
Slide 33: Recent Updates & Highlights
CVB Financial Corp. Recent Updates & Highlights
Slide 34: 3rd Quarter Highlights
CVB Financial Corp. (CVBF) —3rd Quarter Highlights— • Net income of $22.4 million for the third quarter of 2011 • Diluted earnings per common share were $0.21 for the third quarter and $0.57 year-to-date • Allowance for credit losses represents 3.01% of total non-covered loans & leases • Non-perform
Slide 35: Recent Updates
Recent Updates • FDIC and DFI completed Safety and Soundness Field Examination in mid-July. CVB Financial Corp.
Slide 36: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
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 medium of successful small to medium sized businesses and their owners.
Slide 38: 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 39: Three Areas of Growth
Three Areas of Growth Same Store Sales DeNovo Acquisitions —Banks— —Trust—
Slide 40: Acquisition Strategy
Acquisition Strategy —Banks— 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) Trust/Investment— Target size: AUM of $300 million to $1.5 billion In California
Slide 41: Four Key Objectives
CVB Financial Corp. —Four Key Objectives— Quality Loan Growth Non—Interest—Bearing Deposit Growth Non—Interest – Income Growth Expense Control
Slide 42: Our Strategic Focus
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-ter
Slide 43: CVB Financial Corp.
CVB Financial Corp. Copy of Presentation: www.cbbank.com
CVB Financial — Investor Presentation (November 2011) on 6ix