Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (February 2011)
48 slides from Cvb Financial's investor presentation, Feb 8, 2011
Slide 1: CVB Financial Corp.
CVB FINANCIAL CORP. 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: $6.4 BillionGross Loans: $3.8 BillionTotal Deposits (Including Repos): $5.1 BillionTang. Common Equity: $580 Million Source: Q4 2010 earnings release & company filings. *non-covered loans Operating Highlights Financial Highlights 12/31/10 Largest financial institution headquartered i
Slide 4: Experienced Leadership
4 Significant equity ownership board of directors: approximately 16% 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 25 Years 4 Years Chief Executive Officer Yamynn D
Slide 5: Who is CVB Financial?
Who is CVB Financial? 5
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California 6 In millions Rank Name Asset Size(12/31/10) 1 Wells Fargo $1,258,128 2 Union Bank $78,675 3 Bank of the West $57,653 4 First Republic Bank $22,378 5 City National Bank $21,353 6 East West Bank $20,701 7 SVB Financial $17,528 8 Cathay Bank $10,802 9 CVB Fina
Slide 7: Forbes 2010 America's Best Banks
Forbes 2010 America's Best Banks ($5 Billion ) 7 Rank Company Total Assets ($BIL) NPLS/ Loans % Reserves/NPLS% Tier 1 Ratio% 1 Bank of Hawaii 12 1.2 209 13.4 2 UMB Financial 10 .07 210 13.5 3 Commerce Bancshares 18 1.6 114 12.8 4 Prosperity Bancshares 9 0.3 537 11.9 5 SVB Financial 13 1.6 120 14.6 6
Slide 8: Bank Ratings & Awards
Bank Ratings & Awards 8 Bank Director Magazine (2010)Ranked #9 in the Nation...profitability, capital adequacy & asset qualityForbes Magazine (2010)Ranked #6 in the NationBauerFinancial Report (2010)'5' Star RatingThe Findley Report19 Years - Super Premier Performing Bank11 Years - Premier Performin
Slide 9: What are our Markets?
What are our Markets? 9
Slide 10: Existing Locations
Existing Locations 10 43 Business Financial Centers5 Commercial Banking Centers
Slide 11: Deposits
Deposits* 11 11 *Includes Customer Repurchase Agreements
Slide 12: Deposit Franchise
Deposit Franchise Total Deposits Including Repos: $5.1 Billion As of 12/31/2010 12 Source: Q4 2010 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 .33%. This low cost of dep
Slide 13: Loans as of 12/31/2010
Loans as of 12/31/2010 13 13 *Prior to MTM discount
Slide 14: Total Non-Covered Loans
Total Non-Covered Loans 14 14 (000's) *removed Mortgage Pools, Muni Leasing and Construction Adjusted Non-Covered Loans*
Slide 15: Total Covered Loans
Total Covered Loans 15 (000's) (CHART) Net of Discount
Slide 16: Loan Portfolio Composition
16 Geographic diversification, a focus on relationship banking, and a strong credit culture have allowed CVB to mitigate loan losses through this economic downturnCVB has a strong CRE banking team, lending to projects involving apartment buildings, commercial office space and industrial centersProfi
Slide 17: CRE & Construction Lending
(CHART) (CHART) 17 As of 12/31/2010 CRE loans totaled $2.0 billion, while construction stood at $139.0 million, or 4.2% of total loans. Construction loans totaled $265.4 million at 12/31/09Of the CRE loans on the balance sheet, 36.2% are owner-occupied$16.8 million of the construction portfolio is r
Slide 18: Non-Performing Assets
As of 12/31/2010 non-performing assets totaled $162 million, of which $157 million and $5.3 million were from non-performing loans and OREO, respectively 18 Non-Performing Assets* *Non-Covered Loans Source: Q4 2010 earnings release & other company filings. (CHART) Largest Borrower RE Construction -
Slide 19: Loan Loss Allowance Non-Covered
Loan Loss Allowance Non-Covered 19 (CHART)
Slide 20: Superior Credit Quality
20 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: Q4 2010 earnings release & other compan
Slide 21: Profits
Profits 21
Slide 22: Net Income
(CHART) Net Income 22 (000's) Net Income After Taxes
Slide 23: Adjusted Net Income After Tax
Adjusted Net Income After Tax (Excluding L/L Provision & Non-Recurring Items*) (Excluding L/L Provision & Non-Recurring Items*) (Excluding L/L Provision & Non-Recurring Items*) 23 *Gains (Loss) on Securities, FHLB Prepay Fees, Gain on SJB, Provision For Unfunded Commitments & Provision for Loan Loss
Slide 24: Net Interest Margin
Net Interest Margin Net Interest Margin 24 *Normalized excludes accelerated accretion on covered loans Normalized
Slide 25: Peer Profitability Metrics
25 Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q4 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion.
Slide 26: Capital
Capital 26
Slide 27: Capital Ratios
Capital Ratios Well- Capitalized Ratio Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Tier 1 Leverage Ratio Tangible Capital Ratio Dec 31, 2010 16.6% 18.0% 10.6% 9.1%
Slide 28: Peer Capital Metrics
(CHART) 28 Source: Q4 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion Peer Capital Metrics Tier 1 Capital Ratio Total Risk - Based Capital Ratio Tangible Common Equity/Tangible Assets (CHART) (CHART)
Slide 29: Securities/Investments
Securities/Investments 29
Slide 30: Securities Portfolio
(CHART) 30 Source: Q4 2010 earnings release. As of 12/31/2010 securities held-to-maturity were valued at approximately $3.1 millionYield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $1.8 billion at 12/31/2010. The portfolio represen
Slide 31: Investment Portfolio: Mark to Market
Investment Portfolio: $1.8 Billion - --Mark to Market- (Pre-Tax) (CHART) (000's)
Slide 32: CVBF Assets
CVBF Assets 32 (CHART) Loans Securities Fed Balance* Other *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit Goodwill & Intangibles
Slide 33: 4th Quarter Events
4th Quarter Events 33
Slide 34: Largest Borrowing Relationship
Largest Borrowing Relationship Comprised of 7 loans totaling $80.8 million in total debt ('gross' balance).After taking a $34.1 million charge-off and subsequent receipt of other scheduled payments, Citizens Business Bank 'book' balance of loans totals $45.2 million (all loans are on non- accrual st
Slide 35: OREO Expenses (4th Quarter)
'OREO' Expenses (4th Quarter) 35 35 - -- $6.3 million --
Slide 36: OREO Sold: Kings County Chronology
- --OREO Sold-- Kings County: 300+/- acres 36 Original Loan Amount $18 million (44% LTV) August 2005$41 million appraisal September 2008$22.7 million appraisal May 2009$13.5 million appraisal 1st Quarter 2009Non-Performing Asset 2nd Quarter 2009Charge-off $5.44 million December 2009$12.1 million app
Slide 37: Terms and Accounting Treatment of $9MM Sale
300 acre property in Kings County:$9.0 million gross sales priceSold to third-party buyer (farmer) 37 - --Terms of $9MM Sale-- $5 million cash at escrow close (December 2010)$1 million paydown by 1/31/11 (received)$3 million non-interest bearing note maturing December 2013 Accounting Treatment of $9
Slide 38: Our Growth Strategy
Our Growth Strategy 38
Slide 39: Citizens Business Bank: Our Vision
Citizens Business Bank: Our 10 Year 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. 39
Slide 40: Target Customer
Target Customer 40 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 41: Three Areas of Growth
Three Areas of Growth 41 (CHART) Acquisitions - --Banks-- - --Trust--
Slide 42: Four Areas of Focus for 2011
Four Areas of Focus for 2011 42
Slide 43: Four Areas of Focus for 2011
Four Areas of Focus for 2011 Quality Loan GrowthNon-Interest Bearing Deposit GrowthNon-Interest Income GrowthExpense Control 43
Slide 44: Loan Growth
Loan Growth* Loan Growth* 44 000's *Total Loans net of SJB purchase discount
Slide 45: Non-Interest DDA Growth
Non-Interest DDA Growth Non-Interest DDA Growth 45 000's
Slide 46: Non-Interest Income Growth
Non-Interest Income Growth 46 (CHART) 000's
Slide 47: Our Strategic Focus
47 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 48: Thank You
THANK YOU!COPY OF PRESENTATION: JCSCHAAP@CBBANK.COM 48
CVB Financial — Investor Presentation (February 2011) on 6ix