Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (June 2015)
46 slides from Cvb Financial's investor presentation, Jun 5, 2015
Slide 1: June 2015
June 2015 Exhibit 99.1
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: Slide 3
Slide 4: CVB Financial Corp. (CVBF)
Total Assets: $7.4 Billion Gross Loans: $3.7 Billion Total Deposits (Including Repos): $6.5 Billion Total Equity: $897 Million Source: Q1 2015 earnings release & company filings. CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California
Slide 5: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 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 6: Board of Directors
Board of Directors Name CVB Experience Age Ray O’Brien - Chairman 3 Years George Borba Jr. - Vice Chairman 2 Years Steve Del Guercio 2 Years Robert Jacoby 10 Years Hal Oswalt 1 Year San Vaccaro 16 Years Chris Myers - CEO 9 Years
Slide 7: Who is CVB Financial Corp.?
Who is CVB Financial Corp.?
Slide 8: Largest Banks Headquartered in California
11 CVB Financial Corp. $7,443 Largest Banks Headquartered in California Source: SNL Financial In millions Rank Name Asset Size (3/31/15) Wells Fargo $1,737,737 Union Bank $113,698 Bank of the West $70,938 First Republic Bank $51,066 SVB Financial $39,696 City National Bank $32,699 East West Bank $29
Slide 9: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 152 Consecutive Quarters of Profitability 102 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 10: CVB Financial Corp.
CVB Financial Corp.
Slide 11: Existing Locations
Existing Locations 40 Business Financial Centers 7 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego – NEW Opened 06/02/2014
Slide 12: CVB Financial Corp.
CVB Financial Corp.
Slide 13: San Diego County
San Diego County Opened June 2014 | 6 Associates
Slide 14: Ventura County
Ventura County Opened January 2015 | 6 Associates
Slide 15: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (3/31/14) Total Deposits (3/31/15) Los Angeles County $1,959,624 $2,347,804 Inland Empire (Riverside & San Bernardino Counties) $1,948,785 $1,992,402 Central Valley $870,202 $909,278 Orange County $705,761 $907,308 Other $253,216 $301,336 Total
Slide 16: Total Deposits
Total Deposits* $500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 $5,500,000 $6,500,000 $7,500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Non-Int Bearing Dep Interest Bearing Deposits* (000’s) *Interest Bearing Deposits includes REPOs
Slide 17: Deposit Cost Comparison
Deposit Cost Comparison Source: Q1 2015 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. Peer Data is as of 12/31/14 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 18: Total Loans
Total Loans* *Prior to MTM discount, loan fees, loan loss reserve and loans Held for Sale Starting in the 4 th quarter of 2014, covered and non-covered loans are combined (000’s) # of Center Locations Average Loans per Location Total Loans* (3/31/2015) Los Angeles County $83,955 $1,511,185 Central V
Slide 19: Total Loans
$2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 $3,200,000 $3,400,000 $3,600,000 $3,800,000 $4,000,000 $4,200,000 $4,400,000 Q1 Q2Q3 Q4 Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total Loans* Total Loans* (000’s) *Starting in the th quarter of 2014, covered and non-covered l
Slide 20: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q1 2015 earnings release & company reports Starting in the 4 th quarter of 2014, covered and non-covered loans are combined Municipal Lease Finance Receivables, 2.0% Dairy, Livestock & Agribusiness, 4.7% Commercial & Industrial, 11.2% Constructi
Slide 21: CVB Financial Corp.
CVB Financial Corp.
Slide 22: Non-Performing Assets
Non-Performing Assets* $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Non-Performing Loans OREO (000’s) *Non-Covered assets | Starting in the th quarter of 2014, covered and non-cover
Slide 23: Classified Loans
Classified Loans* $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) *Non-Covered loans| Starting in the th quarter of 2014, covered and non-covered loans are combined
Slide 24: Loans: Net Charge-Offs
Loans: Net Charge-Offs* (000’s) *Non-Covered | Starting in the th quarter of 2014, covered and non-covered loans are combined $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Q1 2015 Net Charge - Offs (by year)
Slide 25: CVB Financial Corp.
CVB Financial Corp.
Slide 26: Net Income
Net Income Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge $- $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $30,000 $32,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 27: Earnings
(000’s) 2011 2012 2013 2014 3 Months to 03/31/2015 Net Interest Income $234,681 $236,950 $216,266 $236,514 $61,009 Provision for Loan Losses ($7,068) $0 $16,750 $16,100 $0 Other Operating Income/Expenses (Net) ($106,809) ($122,257) ($88,741) ($89,817) ($36,461) Income Taxes ($39,071) ($37,413) ($48,
Slide 28: Net Interest Margin
Net Interest Margin *Normalized tax-equivalent excludes accretion on covered loans (Purchase Credit Impaired) Normalized* 2.92% 3.92% 3.53% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% Q1Q2 Q3Q4 Q1Q2Q3Q4 Q1 Q2Q3 Q4Q1Q2 Q3Q4 Q1Q2Q3 Q4 Q1Q2 Q3 Q4 Q1Q2 Q3Q4Q1 Q2Q3 Q4Q1
Slide 29: Efficiency & Expenses
Efficiency & Expenses
Slide 30: Efficiency Ratio
Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Efficiency Ratio
Slide 31: Non-Interest Expense
Non-Interest Expense as a % of Average Assets 2.42% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Non-Interest Expense as a % of Average Assets
Slide 32: CVB Financial Corp.
CVB Financial Corp.
Slide 33: Capital Ratios
Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Tier 1 Leverage Ratio Common Equity Tier 1 Capital Ratio Tangible Capital Ratio Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2015* 6.0% 8.0% 4.0% 4.5% 8.0% 10.0% 5.0% 6.5% 17.35% 18.60% 10.94% 16.81% 11.13% Capita
Slide 34: Securities & Investments
Securities & Investments
Slide 35: Securities Portfolio $3.0 Billion
Securities Portfolio* --$3.0 Billion-- Source: Q1 2015 earnings release. As of 3/31/2015 securities held-to-maturity were valued at approximately $1.5 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $3.0 billion at 3/3
Slide 36: Securities Portfolio Mark-to-Market
-$40,000 -$20,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Securities Portfolio* $3.0 Billion Mark-to-Market (Pre - tax) (000’s) *Securities Available For Sale $73,846
Slide 37: CVBF Assets
CVBF Assets Securities 40.7% Loans, net 49.1% Securities 42.4% Loans, net 49.9% *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit Fed Balance* 4.2% Other 5.0% Goodwill & Intangible
Slide 38: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans * Excluding Discount Accretion 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Yield on Loans* Yield on Securities
Slide 39: CVBF Liabilities
CVBF Liabilities Total Deposits* 61.4% Borrowings 36.0% Total Deposits* 98.66% 12/31/06 $5.7 Billion 3/31/15 $6.5 Billion *Includes Customer Repurchase Agreements Other Liabilities 0.7% Junior subordinated Debentures 1.9% Other Liabilities 0.95% Junior subordinated Debentures 0.39% Borrowings 0.0%
Slide 40: Our Growth Strategy
Our Growth Strategy
Slide 41: Our Vision
Our Vision Citizens Business Bank will strive to become the premier 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 42: 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 43: Three Areas of Growth
Same Store Sales DeNovo Acquisitions --Banks-- --Trust-- Three Areas of Growth
Slide 44: Acquisition Strategy
• Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) Acquisition Strategy • Target size: AUM of $200 million to $1 billion • In California • In- market & ‘new’ markets --Banks-- --Trust/Investment-- --Banking Team
Slide 45: 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 46: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com