Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Shareholder Meeting (May 2011)
55 slides from Cvb Financial's shareholder meeting presentation, May 18, 2011
Slide 1: Annual Shareholders Meeting
Annual Sharehaldese ord ~~. Wu L ) i Financial Corp 8
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: Senior Leadership Team
Senior Leadership Team Richard C. Thomas Executive Vice President 1 Year New Chief Financial Officer David A. Brager Executive Vice President 23 Years 8 Years Sales Division Christopher D. Myers President 27 Years 5 Years Chief Executive Officer Yamynn De Angelis Executive Vice President 32 Years 24
Slide 4: Senior Leadership Team
Senior Leadership Team James E. Mead Senior Vice President 36 Years 18 Years Regional Manager - Inland Empire Mark C. Richardson Senior Vice President 22 Years 18 Years Real Estate Banking Group John H. Tait Senior Vice President 40 Years 10 Years Regional Manager - Central Valley Michael B. Mulcahy
Slide 5: Senior Vice Presidents
Name Title Rick Berger SVP | Burbank ManagerSteven Caseldine SVP |Corona ManagerKen Clark SVP | Riverside ManagerDavid Didier SVP | Arcadia ManagerGreg Grande SVP | Pasadena ManagerHector Gutierrez SVP | Deputy Chief Credit OfficerMary Hernandez SVP | Escrow & Title ServicesDuane Keene SVP | Covina
Slide 6: Annual Shareholders Meeting
ee Aonnal Sharekolese (Meeting Ol 2 x — as Financial Corp. ~,*
Slide 7: Financial and Operating Highlights
7 Total Assets: $6.5 BillionGross Loans: $3.6 BillionTotal Deposits (Including Repos): $5.1 BillionTang. 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 in
Slide 8: Who is CVB Financial?
Who is CVB Financial? Wis j J js = CVB Financial Corp.
Slide 9: Largest Banks Headquartered in California
Largest Banks Headquartered in California In millions *as of 12/31/10 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* $27,153 5 First Republic Bank $23,576 6 City National Bank $21,636 7 East West Bank $21,147 8 SVB Financial $1
Slide 10: Bank Ratings
Bank Ratings 10 BauerFinancial ReportFive Star Rating (March 2011)Fitch RatingBBB (December 2010)
Slide 11: What are our Markets?
"ae What are our Markets? _ lh Ll . ah Financial Corp.
Slide 12: Existing Locations
12 Existing Locations 43 Business Financial Centers5 Commercial Banking Centers Commercial Banking Centers Business Financial Centers
Slide 13: Deposits
Deposits* Deposits* 13 *Includes Customer Repurchase Agreements Average Cost of Deposits 0.53% 0.27%
Slide 14: Deposit Cost Comparison
14 Source: Q1 2011 earnings release & other company filings, SNL Financial-peers represent select public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion Deposit Cost Comparison Cost of Deposits (%) (CHART)
Slide 15: Loans
Loans --as of 3/31/2011-- 15 *Prior to MTM discount *Prior to MTM discount
Slide 16: Loan Portfolio Composition
Source: Q1 2011 earnings release & company reports 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 10.0% Commercial & Indust
Slide 17: Non-Performing Assets
Non-Performing Assets Non-Performing Assets 17 (000's)
Slide 18: Loan Loss Allowance
Loan Loss Allowance Non-Covered 18 (CHART) (000's)
Slide 19: Superior Credit Quality
Superior Credit Quality 19 Texas Ratio NPA's/Loans & OREO (CHART) (CHART) Source: Q1 2011earnings release & other company filings, SNL Financial-peers represent select public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion .
Slide 20: Win J is ~
Win J is ~ CVB Financial Corp.
Slide 21: Net Income
Net Income 21 (CHART) (000's) Net Income After Taxes
Slide 22: Earnings
Earnings Earnings 22 (000's)
Slide 23: Net Interest Margin
Net Interest Margin Net Interest Margin *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 24: Peer Profitability Metrics
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 select public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 25: Wa. a
Wa. a CVB Financial Corp.
Slide 26: Capital Ratios
Capital Ratios ee ee Tier 1 Risk-based Capital Ratio 4.0% 6.0% 17.0% Total Risk-based Capital Ratio 8.0% 10.0% 18.4% Tier 1 Leverage Ratio 4.0% 5.0% 10.8% Tangible Capital Ratio 9.2%
Slide 27: Peer Capital Metrics
(CHART) 27 Source: Q1 2011 earnings release & other company filings, SNL Financial-peers represent select 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) (CHAR
Slide 28: Securities/Investments
Securities/Investments —_ > CVB Financial Corp.
Slide 29: Securities Portfolio
Securities Portfolio* --$2.0 Billion-- (CHART) 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 Government Agency & Government Sponsored
Slide 30: Investment Portfolio Mark to Market
Investment Portfolio: $2.0 Billion --Mark to Market-- (Pretax) (CHART) (000's)
Slide 31: CVBF Assets
CVBF Assets *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 32: CVBF Liabilities
CVBF Liabilities 32 12/31/06$5.7 Billion 3/31/11$5.8 Billion (CHART) TOTAL DEPOSITS* Jr. Subordinated Debentures BORROWINGS Other Liabilities (CHART) Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements
Slide 33: 2010/2011 Year in Review
2010/2011 Year in Review oo CVB Financial Corp.
Slide 34: CVBF Stock Price
$10.38Shareholders Meeting05/18/10 CVBF Stock Price 34 (CHART) $8.00--Press Release--SEC Investigation08/10/10 $8.10--Press Release --Sale of 6 NotesFormer Largest Borrower03/28/11 $9.30--Press Release --First Quarter Earnings04/21/11 $9.1605/17/11
Slide 35: SEC Investigation
SEC Investigation Announcement of an SEC Subpoena in August of 2010CVBF is fully cooperating with the SEC CVBF has no insight into the timing or duration of the investigation at this time 35
Slide 36: Lawsuits: Shareholder and Derivative
Lawsuits: Shareholder and Derivative Outcome is unknownWe are vigorously defendingOur belief: no merit to these claims 36
Slide 37: Former Largest Borrowing Relationship
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 note secured by a first trust deed lien on an
Slide 38: Earnings
Earnings Earnings 38 (000's)
Slide 39: Profitability
Profitability 135+ Consecutive Quarters of Profitability! 39
Slide 40: Dividend Payments
Dividend Payments 86 Consecutive Dividends! 40
Slide 41: 2011 & Beyond: Our Growth Strategy
-- 2011 & Beyond -- Our Growth Strategy 41
Slide 42: Our Mission
Our Mission "The mission of CVB Financial Corp. is to achieve superior performance and rank in the top 10% of all financial institutions in the nation in return on equity and return on assets. This will be achieved by delivering the finest in financial products and services through relationship bank
Slide 43: Core Values
5 Core Values Financial StrengthSuperior PeopleCustomer FocusCost Effective OperationHaving Fun 43
Slide 44: 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. 44
Slide 45: Target Customer
Target Customer 45 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 46: Three Areas of Growth
Three Areas of Growth 46 (CHART) Acquisitions --Banks-- --Trust--
Slide 47: Acquisition Strategy
Acquisition Strategy FDIC-assisted & 'regular' Mergers & AcquisitionsTarget size: $300 million to $3 billion in assetsFinancial & StrategicIn-market and/or adjacent geographic market (California only) 47 --Banks-- --Trust/Investment-- Target size: $300 million to $1.5 billion in Assets Under Managem
Slide 48: 2011 Strategy: Four Key Objectives
2011 Strategy: Four Key Objectives 48
Slide 49: 2011 Strategy: Four Key Objectives
2011 Strategy: Four Key Objectives Quality Loan GrowthNon-Interest Bearing Deposit GrowthNon-Interest Income GrowthExpense Control 49
Slide 50: Total Loans
Total Loans* 50 50 (000's) *Total Loans net of SJB purchase discount
Slide 51: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits Non-Interest Bearing Deposits (000's)
Slide 52: Non-Interest Income
Non-Interest Income 52 (CHART) (000's)
Slide 53: Expenses
Expenses 53 (000's) 2009 2010 Q1 2011Annualized Salaries and Employee Benefits $62,985 $69,419 $70,640 Promotion & Entertainment $6,528 $6,084 $5,302 Supplies $2,989 $3,314 $3,043 Software & Communication $3,840 $6,682 $5,059 Professional Services $6,965 $13,308 $14,438 OREO Expense $1,211 $7,490 $4
Slide 54: Our Strategic Focus
Our Strategic Focus 54 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 55: Annual Shareholders Meeting
meernal Skarehaldete (Meeting Of CVB Financial Corp: », *