CVB Financial Corporation · NASDAQ:CVBF
CVB Financial — Investor Presentation (March 2012)
43 slides from CVB Financial's investor presentation, Mar 6, 2012
Slide 1: CVB Financial Corp.
CVB Financial Corp. eh March 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): $5.1 Billion Total Equity: $715 Million Source: Q4 2011 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of
Slide 4: Experienced Leadership
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 2 Years 1 Year James F. Dowd Executive Vice President Chief Credit Officer 35 Years 4 Years David C. Harvey Ex
Slide 5: Who is CVB Financial Corp.?
Wino iis... CVB Financial Corp.?
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California In millions Rank Name Asset Size (12/31/11) 1 Wells Fargo $1,313,867 2 Union Bank $89,676 3 Bank of the West $62,408 4 First Republic Bank $27,792 5 OneWest Bank $26,181 6 City National Bank $23,666 7 East West Bank $21,969 8 SVB Financial $19,969 9 Cathay B
Slide 7: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings Consecutive Quarters of Profitability 89 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
Existing Locations 42 Business Financial Centers Commercial Banking Centers Business Financial Centers Commercial Banking Centers
Slide 10: Deposits
Deposits* (000’s) # of Center Locations Total Deposits (12/31/10) Total Deposits (12/31/11) Los Angeles Country $1,793,171 $1,872,623 Inland Empire (Riverside & San Bernardino Counties) $1,529,042 $1,592,445 Central Valley $838,198 $821,994 Orange County $578,570 $598,426 Other $322,035 $228,430 Tot
Slide 11: Deposit Cost Comparison
Deposit Cost Comparison Source: Q4 2011 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 CVBF Peers
Slide 12: Total Loans as of 12/31/2011
(000’s) Non-Covered Loans Covered Loans* Total Loans*% Los Angeles County $1,118,619 $15,632 $1,134,251 31.90% Central Valley $593,133 $252,072 $845,205 23.77% Inland Empire $633,881 $2,753 $636,634 17.90% (Riverside & San Bernardino Counties) Orange County $471,508 $120 $471,628 13.26% Other $408,3
Slide 13: Total Non-Covered Loans
(000’s) $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $2,200,000 $2,400,000 $2,600,000 $2,000,000 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-
Slide 14: Loan Portfolio Composition
Source: Q4 2011 earnings release & company reports | *Non-covered loans Loan Portfolio Composition* Total Loans by Type (CHART) Commercial RE Non-Owner Occupied 38.7% Consumer 1.6% SFR Mortgage 5.5% Municipal Lease Finance Receivables 3.5% Auto & Equipment 0.5% Dairy, Livestock & Agribusiness 10.8%
Slide 15: Total Covered Loans
(000’s) $700,000 $800,000 $200 million $500,000 $600,000 $67 9 $200 000 $300,000 $400,000 67.9 million $- $100,000 Dec-11 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov
Slide 16: Non-Performing Assets
$180,000 (000’s) $120 000 $140,000 $160,000 $80,000 $100,000 120,000 $ 20,000 $40,000 $60,000 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Non-Performing Loans OREO Non-Performing Assets Non-Covered (000’s)
Slide 17: Loan Loss Allowance
4.00% 2.00% 2.50% 3.50% 3.00% 1.00% 1.50% 2.00% 0.00% 0.50% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Loan Loss Allowance Non-Covered
Slide 18: Classified Loans
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 (000’s)
Slide 19: Superior Credit Quality
CVBF’s strong loan underwriting culture has limited its exposure to problem credits Continued 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 2011earnings release & other company f
Slide 20: Profits
Profits
Slide 21: Net Income
(000’s) $15,000 $17,500 $20,000 $22,500 $10,000 $12,500 $5,000 $7,500 $- $2,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Income (000’s) Net Income After Taxes Highest in CVBF History!
Slide 22: Earnings
Earnings Earnings (000’s) (000’s) 2007 2008 2009 2010 2011 Net Interest Income $161,142 $193,679 $222,264 $259,317 $234,681 Provision for Credit ($4,000) ($4000) ($26,600) Losses ($26600) ($80500) ($61200) ($80,500) ($61,200) ($7,068) Other Operating Income/Expenses (Net) ($74,079)($81,331) ($52,515
Slide 23: Net Income
Net Income $90,000 $80,000 $50 000 $60,000 $70,000 $30,000 $40,000 $50,000 $10,000 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Net Profit After Tax Net Income
Slide 24: Net Interest Margin
Net Interest Margin Net Interest Margin *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 25: Peer Profitability Metrics
Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q4 2011 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion.
Slide 26: Capital
Capital
Slide 27: Capital Ratios
Capital Ratios Capital Ratios
Slide 28: Peer Capital Metrics
(CHART) 28 Source: Q4 2011 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 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
Slide 30: Securities Portfolio $2.2 Billion
(CHART) Source: Q4 2011 earnings release. As of 12/31/2011 securities held-to-maturity were valued at approximately $2.4 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.2 billion at 12/31/2011. The portfolio represe
Slide 31: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.2 Billion Mark-to-Market (Pre-tax) (CHART) (000’s) *Securities Available For Sale
Slide 32: CVBF Assets
CVBF Assets 32 *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit 12/31/11 $6.5 Billion (CHART) 12/31/06 $6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans 4.8%
Slide 33: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion 12/31/11 $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 34: Recent Updates & Highlights
Recent Updates & Highlights 34
Slide 35: Recent FHLB debt prepayment and trust preferred redemption
35 In late December 2011, Citizens Business Bank prepaid $100 million in Federal Home Loan Bank (“FHLB”) debt and took a $3.3 million charge. On January 7, 2012, we redeemed trust preferred securities totaling $6.8 million. These securities were priced at 3-month LIBOR plus 3.25%. Source: Q4 2011 ea
Slide 36: Our Growth Strategy
Our Growth Strategy 36
Slide 37: 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. 37
Slide 38: Target Customer
Target Customer 38 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 39: Three Areas of Growth
Three Areas of Growth 39 (CHART) Acquisitions —Banks— —Trust—
Slide 40: Acquisition Strategy
Acquisition Strategy Conventional M&A Target size: $300 million to $3 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California only) 40 —Banks— —Trust/Investment— Target size: AUM of $300 million to $1 billion In California
Slide 41: Our 'Critical Few'
Our ‘Critical Few’ Quality Loan Growth Non-Interest Bearing Deposit Growth Non-Interest Income Growth Expense Control Grow Through Acquisition 41
Slide 42: Our Strategic Focus
42 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 43: Copy of Presentation: www.cbbank.com
Copy of Presentation: www.cbbank.com