Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (March 2013)
47 slides from Cvb Financial's investor presentation, Mar 12, 2013
Slide 1: CVB Financial Corp. March 2013
aye March 2013 CVB Financial Corp.
Slide 2: Forward-looking statements
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 regarding future o
Slide 3: Company overview: assets, loans, deposits, equity
Total Assets: $6.4 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): $5.2 Billion Total Equity: $763 Million Source: Q4 2012 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Founde
Slide 4: Executive management team
Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 28 Years 6 Years Richard C. Thomas Executive Vice President Chief Financial Officer 3 Years 2 Years James F. Dowd Executive Vice President Chief Credit Officer 36 Years 5 Years David C. Harvey Executive Vice President
Slide 5: Board of directors
Name CVBF Experience Age Ronald Kruse - Chairman 38 Years 73 Linn Wiley – Vice Chairman 21 Years 74 George Borba Jr. New 45 Steve Del Guercio New 51 Robert Jacoby 7 Years 71 Ray O’Brien New 55 San Vaccaro 13 Years 79 Chris Myers – CEO 6 Years 50 Name CVBF Experience Age Ronald Kruse - Chairman 38 Ye
Slide 6: CVB Financial Corp.
CVB Financial Corp.? CVB Financial Corp.
Slide 7: Largest banks headquartered in California
Source: SNL Financial Largest Banks Headquartered in California In millions Rank Name Asset Size (12/31/12) Wells Fargo $1,442,968 Union Bank $96,992 Bank of the West $63,343 First Republic Bank $34,388 City National Bank $28,618 OneWest Bank $25,894 SVB Financial $22,766 East West Bank $22,536 Cath
Slide 8: Profitability, dividends and ratings
• 143 Consecutive Quarters of Profitability • 94 Consecutive Quarters of Cash Dividends • #6 Rated Bank: BankDirector Magazine Bank Performance Scorecard (July 2012) • BauerFinancial Report Five Star Rating (September 2012) • Fitch Rating BBB (October 2012)
Slide 9: Our Markets
Our Markets CVB Financial Corp.
Slide 10: Business financial centers and locations
40 Business Financial Centers 5 Commercial Banking Centers 3 CitizensTrust Locations
Slide 11: Deposits by region
(000 ’ s) # of Center Locations Total Deposits (12/31/11) Total Deposits (12/31/12) *Includes Customer Repurchase Agreements; Balance as of balance sheet date Los Angeles County $1,872,623 $1,894,958 Inland Empire (Riverside & San Bernardino Counties) $1,592,445 $1,668,906 Central Valley $821,994 $8
Slide 12: Slide 12
Slide 13: Peer comparison
Source: Q4 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 14: Service charges on deposit accounts
12 Months 12/31/11 12 Months 12/31/12 % Change *Includes Customer Repurchase Agreements Service Charges on Deposit Accounts $15,767,976 $16,105,811 2.14% Service Charges/Total Deposits 0.31% 0.31%
Slide 15: Loans by region
(000 ’ s) Non-Covered Loans* Covered Loans* Total Loans* % *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale) Los Angeles County $1,190,214 $16,572 $1,206,786 34.68% Central Valley $662,420 $191,419 $853,839 24.54% Inland Empire (Riverside & San Bernardino Counties) $627,173
Slide 16: Loan balances over time
(00's) $3,800,000 $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 Q3 2009 Q4 Ql 2010 Qz2 a3 Q4 Ql 2011 Qz Q3 Q4 Ql 2012 Q2z Q3 Qa
Slide 17: Total Loans by Type
Source: Q4 2012 earnings release & company reports | *Non-covered loans Total Loans by Type Commercial RE Non-Owner Occupied 39.5% Consumer 1.5% SFR Mortgage 4.9% Municipal Lease Finance Receivables 3.2% Auto & Equipment 0.4% Dairy, Livestock & Agribusiness 10.3% Commercial & Industrial 16.8% Constr
Slide 18: Loans net of discount
Net of Discount Includes Loans Held for Sale Net of Discount Includes Loans Held for Sale
Slide 19: Non-Interest Bearing Deposits
Slide 20: Allowance and net charge-offs
Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Qi Q2 Q3 A4 Ql Q2 Qi Q4 Ql Q2 Q3 Qh Qi Q2 Q3 a4 2007 2008 2009 2010 2011 2012 Allowance to Non-CoveredLoans —_ Net Charge-Offs / Average Loans (Non-Covered)
Slide 21: Non-Performing Assets Non-Covered
Slide 22: Texas Ratio peer comparison
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. Texas Ratio NPA’s/Loans & OREO Source: Q4 2012 earnings release & other company filings, SNL Financial— peers represent
Slide 23: Profits
Profits CVB Financial Corp.
Slide 24: FHLB prepayment charge
$20.4 million FHLB prepayment charge
Slide 25: Income summary 2008-2012
2008 2009 2010 2011 12 Months to 12/31/2012 (000 ’ s) Net Interest Income $193,679 $222,264 $259,317 $234,681 $236,950 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) ($122,257) Income Taxes ($22,67
Slide 26: Normalized excludes accelerated accretion
*Normalized excludes accelerated accretion on covered loans
Slide 27: Expenses
Expenses CVB Financial Corp.
Slide 28: Operating expenses
*Includes $20.4 million FHLB prepayment charge (000 ’ s) 2009 2010 2011 2012 Salaries & Employee Benefits $62,985 $69,419 $69,993 $68,496 Promotion & Entertainment $6,528 $6,084 $4,977 $4,869 Supplies $2,989 $3,314 $2,558 $2,212 Software Licenses & Maintenance $2,320 $5,031 $3,669 $4,269 Professiona
Slide 29: Bank Borrowings
Bank Borrowings CVB Financial Corp.
Slide 30: Debt paid off in 2012
Type of Debt Payoff Date Amount Weighted Average Interest Rate (000 ’ s) FHLB Borrowings 8/28/2012 $250,000 3.39% Subordinated Debentures FCB Statutory Trust II 1/07/2012 $6,805 3-Month LIBOR + 3.25% CVB Statutory Trust I 6/18/2012 $20,619 3-Month LIBOR + 2.85% CVB Statutory Trust I 9/17/2012 $20,61
Slide 31: Debt outstanding at 12/31/2012
(000 ’ s) Type of Debt Maturity Balance at 12/31/2012 Interest Rate *Does not include $26 million in overnight borrowings from FHLB **This portion of CVB Statutory Trust II was repaid on January 7 2013 th (000 s) FHLB Borrowings 11/28/2016 $198,934 4.52% Subordinated Debentures CVB Statutory Trust I
Slide 32: Capital
Capital CVB Financial Corp.
Slide 33: Regulatory capital ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio December 31, 2012* * CVB Financial Corp. - Consolidated Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.23% Total Risk-based Capital Ratio 8.0% 10.0% 19.49% Tier 1 Leverage Ratio 4.0% 5.0% 11.50% Tangible Capital Ratio 4.0% 5.0% 11.17% Core Tie
Slide 34: Peer Capital Metrics
Source: Q3 2012 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 Peer Capital Metrics
Slide 35: Securities & Investments
Securities & Investments CVB Financial Corp.
Slide 36: Securities portfolio
Source: Q4 2012 earnings release. As of 12/31/2012 securities held-to-maturity were valued at approximately $2.1million | Yield on securities represents the fully taxable equivalent Securities portfolio totaled $2.45 billion at 12/31/2012. The portfolio represents 38.5% of the Bank’s total assets Vi
Slide 37: Securities balances over time
Jun09 Sep09 Decd9 Mar10 Jun19 Sep10 Deci¢ Mar11 Jun11 Sep11 Deci1 Mar12 Jun12 Sep12 Dec12 (000’s)
Slide 38: Asset composition 2006 vs 2012
*Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit Loans Securities Fed Balance* Other Goodwill & Intangibles 12/31/12 $6.4 Billion 12/31/06 $6.1 Billion Securities Fed Balance* Goo
Slide 39: Liabilities composition 2006 vs 2012
12/31/06 $5.7 Billion 12/31/12 $5.6 Billion TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements 12/31/06 $5.7 Billion 12/31/12 $5.6 Billion TOTAL DEPOSITS* Jr. Subor
Slide 40: Our Growth Strategy
Our Growth Strategy CVB Financial Corp.
Slide 41: Vision for Citizens Business Bank
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 42: Target customers
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: Acquisitions: Banks and Trust
Acquisitions --Banks- - - --Trust--
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 Te
Slide 45: Growth priorities
• Loan Growth • Expand Credit Product Offerings & Capabilities • Build Core Deposits • Drive Service Charge & Fee Income Growth • Manage Operating Efficiency • Grow Through Acquisition
Slide 46: Key strengths and approach
• Strong Capital position • Strong, disciplined credit underwriting/credit culture • Build low-cost, sustainable deposits • Multiple forms of growth (don ’ t depend on one) • Same Store Sales • DeNovo • Acquisitions • Cross-sell: capture the whole wallet • Drive expense efficiency • Long-term outloo
Slide 47: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com CVB Financial Corp.