Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (June 2012)
46 slides from Cvb Financial's investor presentation, Jun 22, 2012
Slide 1: June 2012
June 2012
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 plans and expectations regard
Slide 3: CVB Financial Corp. (CVBF)
CVB Financial Corp. (CVBF) Total Assets: $6.5 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): $5.2 Billion Total Equity: $730 Million Southern Largest financial California. institution Founded headquartered in 1974. in the Inland Empire region of Serves centers 40 throughout citi
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking CVBF Experience Service Christopher D. Myers President & CEO 28 Years 6 Years Executive Vice President Richard C. Thomas 2 Years 1 Year Chief Financial Officer Executive Vice President James F. Dowd 35 Years 4 Years Chief Credit Officer Executive Vice Pre
Slide 5: Who is... CVB Financial Corp.?
te Who is... CVB Financial Corp.?
Slide 6: Largest Banks Headquartered in California
Largest Banks HeadQuartered in California In millions Rank Name Asset Size (3/31/12) Wells Fargo $1,333,799 Union Bank $92,323 Bank of the West $62,343 First Republic Bank $29,719 OneWest Bank $25,010 City National Bank $24,038 East West Bank $21,750 SVB Financial $20,818 9 Cathay Bank $10,557 10 CV
Slide 7: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings Consecutive Quarters of Profitability 90 Consecutive Quarters of Cash Dividends #11 Forbes Magazine Best Banks (December 2011) BauerFinancial Report Five Star Rating (September 2011) Fitch Rating BBB (October 2011)
Slide 8: Our Markets
Our Markets
Slide 9: Existing Locations Business Financial Centers
Existing Locations 42 Business Financial Centers Commercial Banking Centers Commercial Banking Centers Business Financial Centers
Slide 10: Deposits
Deposits* # of Center Total Deposits Total Deposits (000’s) Locations (3/31/11) (3/31/12) Los Angeles County 17 $1,964,976 $1,932,495 Inland Empire (Riverside & San Bernardino Counties) 11 $1,553,109 $1,617,447 Central Valley 11 $773,627 $817,461 Orange County 8 $572,407 $545,356 Other 0 $199,579 $2
Slide 11: Deposit Cost Comparison
Deposit Cost Comparison 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2010 2011 2011 2011 2011 2012 CVBF Peers Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA 11 banks with as
Slide 12: Service Charge Income
Service Charge Income* Months 3 Months % 3/31/2012 3/31/2011 Change Service Charges on Deposit Accounts $4,124,231 $3,723,296 10.77% Service Charges/Total Deposits (Annualized) 0.32% 0.30% Average Cost of Deposits 0.17% 0.27% *Includes Customer Repurchase Agreements
Slide 13: Total Loans as of 3/31/2012
Total Loans as of 3/31/2012 Non-Covered Covered Total (000’s) Loans Loans* Loans* % Los Angeles County $1,115,483 $14,858 $1,130,341 32.32% Central Valley $586,531 $238,542 $807,241 23.59% Inland Empire $633,955 $2,604 $636,559 18.20% (Riverside & San Bernardino Counties) Orange County $480,771 $113
Slide 14: Total Non-Covered Loans
Total Non-Covered Loans (000’s) $3,800,000 $515 million $3,600,000 $3,400,000 $193 million $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 Adjusted Non-Covered Loans* *Removed Mortgage Pools and Construction Loans
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition* Total Loans by Type Municipal Lease Finance Receivables 3.6% Consumer Auto & Equipment 0.5% 1.6% SFR Mortgage Dairy, Livestock & Agribusiness 5.2% 9.1% Commercial & Industrial 15.6% Commercial RE Construction RE Non-Owner Occupied 2.1% 40.0% Commercial RE Owner Occupied 2
Slide 16: Dairy & Livestock 12/31/11
Dairy & Livestock 12/31/11 Number of Total Territory Loan Loan Outstandings Outstandings Central Valley 74 $148,391 Inland Empire 57 $63,333 Idaho 21 $60,321 New Mexico 19 $38,212 Washington 15 $22,339 Other Areas 12 $10,953 Total 198 $343,549 Dairy: Real Estate 62 $151,714 Grand Total 260 $495,263
Slide 17: Total Covered Loans
Total Covered Loans (000’s) $800,000 $700,000 $184 million $600,000 $500,000 $400,000 $59.3 million $300,000 $200,000 $100,000 $- Q4 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Net of Discount Includes Loans Held for Sale
Slide 18: Non-Performing Assets Non-Covered
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 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Non-Performing Loans OREO
Slide 19: Loan Loss Allowance/Charge-Offs Non-Covered
Loan Loss Allowance/ Charge-Offs —Non-Covered— 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% -0.25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 Allowance to Non-Covered Loans Net Charge-Offs / Average
Slide 20: Classified Loans Non-Covered
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 Q4 Q1 2009 2010 2011 2012
Slide 21: Superior Credit Quality Texas Ratio
Superior Credit QualityTexas Ratio 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 CVBF Peer NPA’s/Loans & OREO Non-Covered 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 CVBF Pee
Slide 22: Profits
Profits
Slide 23: Net Income
Net Income $87.4 Million $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 Q4 Q1 (000’s) 2007 2008 2009 2010 2011 2012 Net Income After Taxes
Slide 24: Earnings
Earnings (000’s) 2008 2009 2010 2011 3/31/2012 Net Interest Income $193,679 $222,264 $259,317 $234,681 $58,602 Provision for Credit Losses ($26,600) ($80,500) ($61,200) ($7,068) $0 Other Operating Income/Expenses (Net) ($81,331) ($52,515) ($111,378) ($106,809) ($24,956) Income Taxes ($22,675) ($23,8
Slide 25: 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 Q4 Q1 2007 2008 2009 2010 2011 2012 Normalized* *Normalized excludes accelerated accretion on covered loans
Slide 26: Peer Profitability Metrics
Peer Profitability Metrics Return on Average Assets 1.50% 1.00% 0.50% CVBF 0.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Peer -0.50% 2010 2010 2010 2010 2011 2011 2011 2011 2012 -1.00% -1.50% Return on Average Tangible Equity 20.00% 15.00% 10.00% 5.00% 0.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 27: Capital
Capital
Slide 28: Capital Ratios
Capital Ratios Regulatory Regulatory March 31, 2012 Minimum Ratio Well-Capitalized Ratio Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.18% Total Risk-based Capital Ratio 8.0% 10.0% 19.44% Tier 1 Leverage Ratio 4.0% 5.0% 11.35% Tangible Capital Ratio 4.0% 5.0% 10.38% Core Tier 1 Capital Ratio 15.57%
Slide 29: Tier Capital Ratio
Tier 1 Capital Ratio 18.00% 16.00% 14.00% 12.00% 10.00% CVBF 8.00% Peer 6.00% 4.00% 2.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 Total Risk – Based Capital Ratio 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 Tan
Slide 30: Securities/Investments
Securities/Investments
Slide 31: Securities Portfolio
Securities Portfolio* —$2.4 Billion— Trust Preferred 0.4% CMO Municipal Bonds Yield on securities 31.1% 27.3% portfolio = 3.03% Government Agency & GSEs 1.6% MBS 39.6% Securities portfolio totaled $2.4 billion at 3/31/2012. The portfolio represents 36.5% of the Bank’s total assets Virtually all of t
Slide 32: Securities Portfolio Mark-to-Market (Pre-tax)
Securities Portfolio* $2.4 Billion Mark-to-Market (Pre-tax) (000’s) $90,000 $80,000 $71,425 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 *Securities Available For Sale
Slide 33: CVBF Assets
CVBF Assets 12/31/06 $6.1 Billion 42.4% 49.9% Securities Loans 3/31/12 Fed Balance* $6.5 Billion 0.7% 2.4% Goodwill & Intangibles 4.6% Securities Other 51.3% 36.5% Loans Fed Balance* 2.8% 8.5% Goodwill & Intangibles 0.9% Other *Includes overnight funds held at the Federal Reserve, due from Correspon
Slide 34: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion Jr. Subordinated 1.9% Debentures BORROWINGS 36.0% 3/31/12 $5.8 Billion 0.7% 61.4% BORROWINGS Jr. Subordinated Other Liabilities TOTAL DEPOSITS* 7.80% 1.90% Debentures Other 1.00% Liabilities 89.30% *Includes Customer Repurchase Agreements TOTAL DEPOSITS*
Slide 35: Our Growth Strategy
Our Growth Strategy
Slide 36: 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.
Slide 37: 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 38: Three Areas of Growth
Three Areas of Growth Same Store DeNovo Sales Acquisitions —Banks— —Trust—
Slide 39: Acquisition Strategy
Acquisition Strategy —Banks— • Conventional M&A • Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) —Trust/Investment— • Target size: AUM of $200 million to $1 billion • In California
Slide 40: Our 'Critical Few'
Our ‘Critical Few’• Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition
Slide 41: Total Loans
Total Loans* (000’s) $4,250,000 $4,000,000 $3,750,000 $3,500,000 $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 *Total Loans net of SJB purchase discount
Slide 42: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2007 2008 2009 2010 2011 2012
Slide 43: Non-Interest Income
Non-Interest Income* $9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000 (000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 2012 *Net of Loss/Gain on OREO and Investment Securities Sales
Slide 44: Expenses
Expenses 2009 2010 2011 Q1 2012 (000’s) Annualized Salaries and Employee Benefits $62,985 $69,419 $69,993 $67,251 Promotion & Entertainment $6,528 $6,084 $4,977 $5,031 Supplies $2,989 $3,314 $2,558 $2,369 Software Licenses & Maintenance $2,320 $5,031 $3,669 $3,656 Professional Services $6,965 $13,30
Slide 45: 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 oppor
Slide 46: Copy of Presentation: www.cbbank.com
Copy of Presentation: www.cbbank.com