Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (May 2011)
51 slides from Cvb Financial's investor presentation, May 11, 2011
Slide 1: CVB Financial Corp. May 2011
CVB FINANCIAL CORP. May 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 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 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 In millions 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 $18,618 9 Cathay
Slide 7: Bank Ratings
Bank Ratings BauerFinancial Report'5' Star Rating (March 2011)Fitch RatingBBB (December 2010) 7
Slide 8: What are our Markets?
What are our Markets? 8
Slide 9: Existing Locations
Existing Locations 9 43 Business Financial Centers5 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 Franchise
Deposit Franchise Total Deposits Including Repos: $5.1 Billion As of 3/31/2011 11 Source: Q1 2011 earnings release & company filings; core deposits defined as total deposits less jumbo CD's, total deposits does include customer repos The average cost of deposits stands at 0.25%, 0.27% including cust
Slide 12: Deposit Comparison
Deposit Comparison 12 Source: Q1 2011 earnings release & other company filings, SNL Financial-peers represent select public CA , AZ, HI, NV, OR & WA banks with assets $2 - $23 billion (CHART)
Slide 13: Loans
Loans as of 3/31/2011 as of 3/31/2011 as of 3/31/2011 13 *Prior to MTM discount
Slide 14: Loan Breakdown
(CHART) Loan Breakdown* 14 *Non Covered Loans (000's)
Slide 15: Loan Breakdown: Commercial Real Estate
Loan Breakdown* Commercial Real Estate 15 *Non Covered Loans (CHART) (000's)
Slide 16: Total Covered Loans
Total Covered Loans 16 (000's) (CHART) Net of Discount $200 million $98 million
Slide 17: Loan Portfolio Composition
17 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 & Agribusine
Slide 18: CRE & Construction Lending
(CHART) (CHART) 18 $42.3 million of the construction portfolio is non-performing ($2.3 million is residential construction and $40 million is commercial construction) Source: Q1 2011 earnings release & company reports Orange County Other Areas Los Angeles Inland Empire Central Valley Orange County S
Slide 19: Non-Performing Assets
As of 3/31/2011 non-performing assets totaled $114.4 million, of which $108.2 million and $6.2 million were from non-performing loans and OREO, respectively 19 Non-Performing Assets* *Non-Covered Loans Source: Q1 2011 earnings release & other company filings. Consumer (CHART) RE Construction - Resid
Slide 20: Non-Performing Assets
Non-Performing Assets $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Q @ 8 4 A @ @ eM 4a 2009 2009 2009 2009-2010 2010-2010 201092 ™OREO = Non-Performing Loans
Slide 21: 2011 Net Loan Charge-offs
2011 Net Loan Charge-offs* as of 3/31/2011 21 *Non-Covered Loans 000's NetCharge-offs % Commercial Construction and Land $6,160 54.7% Dairy & Livestock $2,204 19.6% Commercial Real Estate $1,541 13.7% Commercial and Industrial $547 4.9% Other $459 4.1% Residential Mortgage $349 3.1% Residential Cons
Slide 22: Loan Loss Allowance
Loan Loss Allowance Non-Covered 22 (CHART)
Slide 23: Superior Credit Quality
23 CVBF's strong loan underwriting culture has limited its exposure to problem creditsContinued 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 company
Slide 24: Profits
Profits 24
Slide 25: Net Income
(CHART) Net Income 25 (000's) Net Income After Taxes
Slide 26: Earnings
Earnings Earnings 26 (000's)
Slide 27: Net Interest Margin
Net Interest Margin Net Interest Margin 27 *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 28: Peer Profitability Metrics
28 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 - $23 billion.
Slide 29: Capital
Capital 29
Slide 30: Capital Ratios
Capital Ratios sulator 2 a | Well-Capitali fo | namie Tier 1 Risk-based Capital Ratio 6.0% 17.0% Total Risk-based Capital Ratio 0% 18.4% Tier I Leverage Ratio .0% 2 10.8% Tangible Capital Ratio 9.
Slide 31: Peer Capital Metrics
(CHART) 31 Source: Q1 2011 earnings release & other company filings, SNL Financial-peers represent select public CA , AZ, HI, NV, OR & WA banks with assets $2 - $23 billion Peer Capital Metrics Tier 1 Capital Ratio Total Risk - Based Capital Ratio Tangible Common Equity/Tangible Assets (CHART) (CHAR
Slide 32: Securities/Investments
Securities/Investments | ; = »
Slide 33: Securities Portfolio
(CHART) 33 Source: Q1 2011 earnings release. As of 3/31/2011 securities held-to-maturity were valued at approximately $3.0 millionYield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.0 billion at 3/31/2011. The portfolio represent
Slide 34: Investment Portfolio Mark to Market
Investment Portfolio: $2.0 Billion --Mark to Market- (Pre-Tax) (CHART) (000's)
Slide 35: CVBF Assets
CVBF Assets 35 *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 36: CVBF Liabilities
CVBF Liabilities 36 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 37: 1st Quarter Events
1st Quarter Events 37
Slide 38: Former Largest Borrowing Relationship
Former Largest Borrowing Relationship 38 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
Slide 39: Our Growth Strategy
Our Growth Strategy 39
Slide 40: 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. 40
Slide 41: Target Customer
Target Customer 41 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 42: Three Areas of Growth
(CHART) Three Areas of Growth 42 Acquisitions --Banks-- --Trust--
Slide 43: Acquisition Strategy
Acquisition Strategy FDIC-assisted & conventional M&ATarget size: $300 million to $3 billion in assetsFinancial & StrategicIn-market and/or adjacent geographic market (California only) 43 --Banks-- --Trust/Investment-- Target size: AUM of $300 million to $1.5 billionIn California
Slide 44: 2011 Strategy: Four Key Objectives
2011 Strategy: Four Key Objectives 44
Slide 45: 2011 Strategy: Four Key Objectives
2011 Strategy: Four Key Objectives Quality Loan GrowthNon-Interest Bearing Deposit GrowthNon-Interest Income GrowthExpense Control 45
Slide 46: Loan Growth
Loan Growth* Loan Growth* 46 000's *Total Loans net of SJB purchase discount
Slide 47: Non-Interest DDA Growth
Non-Interest DDA Growth Non-Interest DDA Growth 47 000's
Slide 48: Non-Interest Income Growth
Non-Interest Income Growth 48 (CHART) 000's
Slide 49: Expense Control
Expense Control 49 --Key Areas-- 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 Expen
Slide 50: Our Strategic Focus
50 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 51: Thank You
THANK YOU!COPY OF PRESENTATION: JCSCHAAP@CBBANK.COM 51