Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (February 2015)
41 slides from Cvb Financial's investor presentation, Feb 4, 2015
Slide 1: CVB Financial Corp.
CVB Financial Corp. February 2015
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: $7.4 Billion Gross Loans: $3.8 Billion Total Deposits (Including Repos): $6.2 Billion Total Equity: $878 Million Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974 Locations in 42 cities with 40 bus
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 30 Years 8 Years Richard C. Thomas Executive Vice President Chief Financial Officer 5 Years 4 Years James F. Dowd Executive Vice President Chief Credit Officer 38 Years 7 Years David C. Harvey E
Slide 5: Board of Directors
Board of Directors Name CVB Experience Age Ray O’Brien—Chairman 2 Years 58 George Borba Jr.—Vice Chairman 2 Years 47 Steve Del Guercio 2 Years 53 Robert Jacoby 9 Years 73 Hal Oswalt 1 Year 66 San Vaccaro 15 Years 81 Chris Myers—CEO 8 Years 52 5
Slide 6: Who is CVB Financial Corp.?
CVB Financial Corp. Who is CVB Financial Corp.?
Slide 7: Largest Banks Headquartered in California
Largest Banks Headquartered in California Rank Name Asset Size (12/31/14) 1 Wells Fargo $1,687,155 2 Union Bank $113,120 3 Bank of the West $71,682 4 First Republic Bank $48,353 5 SVB Financial $39,345 6 City National Bank $32,610 7 East West Bank $28,738 8 OneWest Bank $21,805 9 Pacific Western Ban
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 151 Consecutive Quarters of Profitability 101 Consecutive Quarters of Cash Dividends #4 Rated Bank: BankDirector Magazine Bank Performance Scorecard (August 2014) BauerFinancial Report Five Star Rating (September 2014) 78 Consecutive Quarters Fitch Rating BBB (Septembe
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 40 Business Financial Centers 6 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego – NEW Opened 06/02/2014 10
Slide 11: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (12/31/13) Total Deposits (12/31/14) Los Angeles County 18 $1,921,122 $2,154,938 Inland Empire (Riverside & San Bernardino Counties) 9 $1,842,239 $1,913,988 Central Valley 9 $866,085 $920,951 Orange County 9 $651,139 $878,466 Other 1 $253,297 $2
Slide 12: Total Deposits
Total Deposits* *Interest Bearing Deposits includes REPOs 12
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q4 2014 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion. 13
Slide 14: Total Loans
Total Loans* *Before deferred loan fees, discount on covered loans, and loans held for sale Includes covered and non-covered loans for all periods presented
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q4 2014 earnings release & company reports Starting in the 4th quarter of 2014, covered and non-covered loans are combined 15
Slide 16: Credit Quality
CVB Financial Corp. Credit Quality
Slide 17: Non-Performing Assets
Non-Performing Assets* *Non-Covered assets | Starting in the 4th quarter of 2014, covered and non-covered assets are combined 17
Slide 18: Classified Loans
Classified Loans* *Non-Covered loans| Starting in the 4th quarter of 2014, covered and non-covered loans are combined 18
Slide 19: Loans: Net Charge-Offs
Loans: Net Charge-Offs* *Non-Covered | Starting in the 4th quarter of 2014, covered and non-covered loans are combined 19
Slide 20: Profits
CVB Financial Corp. Profits
Slide 21: Net Income
Net Income Net Income After Taxes $20.4 million FHLB prepayment charge
Slide 22: Earnings
Earnings (000’s) 2010 2011 2012 2013 2014 Net Interest Income $259,317 $234,681 $236,950 $216,266 $236,514 Provision for Loan Losses ($61,200) ($7,068) $0 $16,750 $16,100 Other Operating Income/Expenses (Net) ($111,378) ($106,809) ($122,257) ($88,741) ($89,817) Income Taxes ($23,804) ($39,071) ($37,
Slide 23: Net Interest Margin Normalized
Net Interest Margin Normalized* *Normalized tax-equivalent excludes accretion on covered loans 23
Slide 24: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 25: Efficiency Ratio
Efficiency Ratio $20.4 million FHLB prepayment charge 25
Slide 26: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets $20.4 million FHLB prepayment charge 26
Slide 27: Capital
CVB Financial Corp. Capital
Slide 28: Capital Ratios
Capital Ratios Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio September 30, 2014* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 17.27% Total Risk-based Capital Ratio 8.0% 10.0% 18.52% Tier 1 Leverage Ratio 4.0% 5.0% 10.71% Tangible Capital Ratio 10.50% Core Tier 1 Capital Ratio 16.71% * CVB
Slide 29: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 30: Securities Portfolio $3.1 Billion
Securities Portfolio* —$3.1 Billion— Yield on securities portfolio = 2.58% for the 4th Quarter 2014 CMO’s / REMIC’s 9.69% Trust Preferred 0.16% Municipal Bonds 18.48% Government Agency & GSEs 10.55% MBS 61.12% Securities portfolio totaled $3.14 billion at 12/31/2014. The portfolio represents 42.54%
Slide 31: Securities Portfolio Mark-to-Market
Securities Portfolio* $3.1 Billion Mark-to-Market (Pre-tax) *Securities Available For Sale $53,578 (000’s)
Slide 32: CVBF Assets
CVBF Assets12/31/06 $6.1 Billion Loans, net 49.9% Securities 42.4% Goodwill & Intangibles0.7% Other 4.6% Fed Balance* 2.4% 12/31/14 $7.4 Billion Loans, net 50.9% Securities 42.5% Goodwill & Intangibles 1.1% Other 5.0% Fed Balance* 0.5% *Includes overnight funds held at the Federal Reserve, Interest
Slide 33: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion
Slide 34: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion Junior subordinated Debentures 1.9% Borrowings 36.0% Total Deposits* 61.4% Other Liabilities 0.7% 12/31/14 $6.5 Billion Other Liabilities 0.9% Total Deposits* 94.9% Junior subordinated Debentures 0.4% Borrowings 3.8% *Includes Customer Repurchase Agreements
Slide 35: Our Growth Strategy
CVB Financial Corp. 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. 36
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 37
Slide 38: Three Areas of Growth
Three Areas of Growth Same Store Sales DeNovo Acquisitions —Banks— —Trust— 38
Slide 39: Acquisition Strategy
Acquisition Strategy —Banks— 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 —Banking Teams— In- market & ‘new’ markets
Slide 40: Our 'Critical Few'
Our ‘Critical Few’ Execute on DeNovo Growth Initiatives Pursue Strategic Acquisitions Quality Loan Growth Provide Customer Solutions Through Technology Expand Market Share Through Same Store Sales
Slide 41: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com
CVB Financial — Investor Presentation (February 2015) on 6ix