Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (February 2009)
64 slides from Cvb Financial's investor presentation, Feb 26, 2009
Slide 1: CVB Financial Corp.
CVB Financial Corp. 1
Slide 2: Safe Harbor
Safe Harbor Certain matters set forth herein 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 regarding future operating results. The
Slide 3: Company history timeline
1974 Chino Valley Bank formed 1981 CVB Financial Corp. (holding company formed) 1996 Chino Valley Bank becomes Citizens Business Bank 2001 CVB Financial listed on NASDAQ ("CVBF") 3 CVB Financial Corp.
Slide 4: CVB Financial Corp. at a glance
Headquarters Ontario, California Origin August 9, 1974 Business Financial Centers 43 Commercial Banking Centers 4 Assets $6.6 Billion Deposits $3.5 Billion Loans $3.7 Billion Market Capitalization $991 Million 4 CVB Financial Corp. December 31, 2008
Slide 5: Senior Leadership Team
Edward J. Biebrich Jr. Executive Vice President 27 Years 11 Years Chief Financial Officer Todd E. Hollander Executive Vice President 18 Years 1 Year Sales Division Christopher D. Myers President 24 Years 3 Years Chief Executive Officer Yamynn De Angelis Executive Vice President 30 Years 22 Years Chi
Slide 6: Senior Leadership Team (continued)
Nancy A. Sinclair Senior Vice President 40 Years 12 Years The Marketing Group James E. Mead Senior Vice President 34 Years 16 Years Regional Manager - San Gabriel Valley Mark Richardson Senior Vice President 20 Years 16 Years Real Estate Banking Group David Brager Senior Vice President 23 Years 5 Ye
Slide 7: The Vision
The Vision "The vision of CVB Financial Corp. is to be recognized as the premier relationship financial institution for businesses and professionals in California with earnings growth of 15.0% a year, a return on equity of 20.0% and a return on assets of 1.35%." 7
Slide 8: The Mission
The Mission "The Mission of CVB Financial Corp. is to achieve superior performance and rank in the top 10% of all financial institutions in the nation in return on equity and return on assets. This will be achieved by delivering the finest in financial products and services through relationship bank
Slide 9: Core Values
5 Core Values Financial Strength Superior People Customer Focus Cost Effective Operation Having Fun 9
Slide 10: Bank Ratings & Awards
Bank Ratings & Awards U.S. Banker Magazine (2008) 6th Ranked Bank in the Nation (3-year ROE) U.S. Banker Magazine (2007) Top Business Bank in the Nation 15th Ranked Bank in the Nation America's Finest Companies investment directory # 318 out of 19,000 U.S. public companies. Bank Director Magazine 14
Slide 11: Financial Performance
CVB Financial Corp. December 31, 2008 Financial Performance 11
Slide 12: Earnings performance
CVB Financial Corp. CVB Financial Corp. *Earnings before securities gains & losses, OREO gains & losses, provisions for OREO & loan losses, provision for unfunded commitments, and income taxes. 12
Slide 13: Yields/Spreads
Yields/Spreads Yields/Spreads 13
Slide 14: Loan Growth - Average Growth
14 Loan Growth - Average Growth 179,763 283,075 279,572 Total Average Loan Growth - $2.4 Billion
Slide 15: Loan Growth + Loan Quality
CVB Financial Corp. Loan Growth + Loan Quality 15
Slide 16: Loan Portfolio: Performance
Loan Portfolio: Performance Loan Portfolio: Performance 16
Slide 17: Loan Portfolio $3.7 Billion by region
Loan Portfolio $3.7 Billion 17 Orange County 14% Central Valley 18% Inland Empire 22%
Slide 18: Loan Portfolio $3.7 Billion by type
18 Loan Portfolio $3.7 Billion Residential Construction and Land - 2.7% Commercial Construction and Land - 6.7% Commercial Real Estate - 51.9% SFR Mortgage - 8.9% Commercial and Industrial - 9.9% Dairy and Livestock - 12.3% Other - 7.6%
Slide 19: Residential Real Estate Construction & Land Loans
Residential Real Estate Construction & Land Loans Total: $101 Million 19 Los Angeles County 24% Inland Empire 20% Central Valley 26% Orange County 10% San Diego County 12% Other - 8.0%
Slide 20: Commercial Real Estate Construction & Land Loans
Commercial Real Estate Construction & Land Loans Total: $251 Million 20 LA County - 19% Inland Empire - 41% Orange County - 11% Central Valley - 15% Other - 14% San Diego - 0% Land: $38 Million Construction: $213 Million
Slide 21: Capital Ratios
Capital Ratios 21
Slide 22: Capital Ratios
Capital Ratios Capital Ratios 22
Slide 23: Non-Performing Loans and Real Estate Owned
As of 12/31/08 $3.7 Billion in Loans $17.7 Million in Non- Performing Loans $6.6 Million in Real Estate Owned 23
Slide 24: N.P.A./OREO breakdown
24 $24.2 Million in N.P.A./Oreo (000's) OREO - $6,565 Residential Construction & Land - $7,524 Mortgage Pools - $3,116 Commercial - $6,732 Consumer - $312
Slide 25: Investment Portfolio
CVB Financial Corp. Investment Portfolio 25
Slide 26: Investment Portfolio $2.5 Billion
Investment Portfolio $2.5 Billion 26 Agency 1.12%
Slide 27: Municipal Securities Underlying Rating Breakdown
Municipal Securities Underlying Rating Breakdown Total: $684 Million 27 Not Rated - Pre-refunded 3.06% Not Rated - General Obligation 10.37% Rated - Investment Grade AA or better 44.81% Rated-Investment Grade BAA or better 2.97% Rated-Invested grade AAA or better 26.45%
Slide 28: Investment Portfolio Mark to Market
Investment Portfolio: $2.5 Billion - --Mark to Market-- (CHART)
Slide 29: Shareholder Performance
CVB Financial Corp. Shareholder Performance 29
Slide 30: WKBI Evaluation Feb. 2008
WKBI Evaluation Feb. 2008 WKBI Evaluation Feb. 2008 30
Slide 31: WKBI Evaluation Feb. 2009
WKBI Evaluation Feb. 2009 WKBI Evaluation Feb. 2009 31
Slide 32: Peer Banks Share Price Change
Peer Banks ($2-16 Billion in Assets) 32 Share Price1/1/07 Share Price2/9/09 % Change Westamerica 50.63 48.28 (4.64%) CVBF 13.15 9.91 (24.64%) Bank of Hawaii 53.95 39.80 (26.23%) City National 71.20 23.11 (50.43%) SVB Financial Corp. 46.62 35.29 (50.44%) Pacific Western 52.27 10.91 (62.93%) Pacific C
Slide 33: Comparison of Cumulative Total Shareholder Return
33 Comparison of Cumulative Total Shareholder Return CVB Financial Corp. NASDAQ Market Index S & PIndex 1/1/2000 100.00 100.00 100.00 2/9/2009 220.77 42.03 67.59 Annual Increase 9.08% (9.07%) (4.21%)
Slide 34: CVBF Stock Price
CVBF Stock Price 34 34
Slide 35: Financial Comparison
CVB Financial Corp. Financial Comparison 35
Slide 36: Efficiency Ratio
Efficiency Ratio December 31, 2008 36 36 Source: SNL Efficiency Ratio: Non-interest expense before OREO expenses, amortization of intangibles and goodwill impairments as a percent of taxable equivalent net interest income (before provision for loan losses) and non-interest income excluding any non-r
Slide 37: Non-Performing Assets
Non-Performing Assets December 31, 2008 December 31, 2008 December 31, 2008 37
Slide 38: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits December 31, 2008 38
Slide 39: Performance as of December 2008
CVB Financial Corp Performance as of December 2008 Performance as of December 2008 Performance as of December 2008 Source: Federal Deposit Insurance Corporation 39 CA Banks & US Banks: 9/30/08
Slide 40: California Banks by Asset Size
40 *Assets in millions. California Banks Rank Peer Bank Asset Size * 1 Union Bank of California $69,850 2 Bank of the West $66,890 3 City National Bank $16,456 4 United Commercial Bank $13,021 5 East-West Bank $12,424 6 Cathay Bank $11,594 7 California Bank & Trust $10,145 8 Silicon Valley Bank $10,
Slide 41: Our Next Move Strategy
41 Our Next Move Strategy Strategy
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 42
Slide 43: Citizens Business Bank Business Financial Centers
Citizens Business Bank 43 Business Financial Centers Acquisition: 30 Branch Locations DeNovo: 13 Branch Locations 4 Commercial Banking Centers 43
Slide 44: Branch Locations: Acquisitions
30 Branch Locations: Acquisitions Bank Name Date Acquired # of Locations Lloyds Bank (Branch) El Dorado Bank (Branch) Independent National Bank Huntington Bank Fontana National Bank Mid-City Bank Western Industrial National Bank Pioneer Bank Vineyard Bank (Branch) Citizens Bank of Pasadena Orange Na
Slide 45: Branch Locations: DeNovo
13 Branch Locations: DeNovo Date Opened Chino Corona Upland Ontario Colton Ontario Airport Riverside Tri City Glendale Bakersfield Fresno Madera Stockton 12/31/08 Assets 1974 1977 1980 1980 1984 1987 1990 1990 1999 2001 2003 2005 2007 Branch Name $227,155 $131,585 $111,884 $99,150 $34,446 $222,978 $
Slide 46: Four Commercial Banking Centers: DeNovo
Four Commercial Banking Centers: DeNovo 46 (000's) Date Opened Loans Deposits S.F. Valley Feb. 2008 $5,920 $125,005 Orange County April 2008 $8,017 $3,709 Inland Empire June 2008 $10,604 $27,118 South Bay August 2008 $160 $10,156 Total $24,701 $165,988 As of 2/13/09
Slide 47: Geographic Expansion
47 Geographic Expansion
Slide 48: Existing Locations
Existing Locations 48
Slide 49: 2009 DeNovo Expansion
2009 DeNovo Expansion San Fernando Valley CBC Inland Empire CBC South Bay CBC Orange County CBC LA Metro CBC West LA CBC
Slide 50: Acquisition Strategy
50 Acquisition Strategy
Slide 51: Business Line Expansion
Business Line Expansion Commercial Banking Centers Specialty Banking Group CitizensTrust 51
Slide 52: Commercial Banking Centers
Commercial Banking centers Focus exclusively on businesses with annual revenues of $10 million or greater. Focus on seven-figure deposit and loan relationships (or higher) Located on an 'upstairs' floor of a mid-rise office building with other business professionals (CPA Firms, Law Firms, etc.) Offi
Slide 53: Business Line Expansion
Commercial Banking Centers Specialty Banking Group CitizensTrust 53 Business Line Expansion
Slide 54: Specialty Banking Group
Professional Services Not for Profit Services Healthcare/ Medical Services Property Management & HOA Services Title/Escrow Services Government Services 54 Specialty Banking Group
Slide 55: Specialty Banking Group Totals
Specialty Banking Group Totals (Escrow, Title & Property Management) 12/31/08 12/31/08 12/31/08 12/31/08 55
Slide 56: Business Line Expansion
Commercial Banking Centers Specialty Banking Group CitizensTrust 56 Business Line Expansion
Slide 57: CitizensTrust assets and assets under management
57 $2.3 Billion in total assets $782 Million in assets under management
Slide 58: New Fee Income
New Fee Income 58 2006 2007 2008 Investment Services $384,163 $323,482 $602,823 Wealth Management $461,707 $570,624 $808,755
Slide 59: Diversifier Conversion Project/Results
Diversifier Conversion Project/Results Project/Results Project/Results 59
Slide 60: Swap Fee Income
Swap Fee Income 60 60 2009 Goal=$1,200,000 New Fee Income
Slide 61: Critical Few
Critical Few Risk Management Credit Management: Special Asset Management New Product Implementation & Support Same Store Sales Growth & Expansion
Slide 62: Citizens Business Bank: Our Vision
Citizens Business Bank: Our 10 Year Vision Citizens Business Bank will become the dominant financial services company operating throughout the State of California, servicing the comprehensive financial needs of privately-held businesses (and their owners) with annual sales/revenues of $1 to 200 mill
Slide 63: Why 'CVBF'?
Why 'CVBF'? 63 Strong Credit Quality Liability Sensitive Balance Sheet Positive Growth Metrics New Growth Initiatives Local Competition is Diminished
Slide 64: Questions.....
64 Questions..... CVB Financial Corp.
CVB Financial — Investor Presentation (February 2009) on 6ix