Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2014)
46 slides from Cvb Financial's investor presentation, Jul 28, 2014
Slide 1: CVB Financial Corp. July 2014
Exhibit 99.1 CVB Financial Corp. July 2014
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: $3.6 Billion Total Deposits (Including Repos): $6.2 Billion Total Equity: $841 Million Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974 Locations in 44 cities with 43 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 5 Years 4 Years Chief Financial Officer James F. Dowd Executive Vice President 37 Years 6 Years Chief Credit Officer David C. Harvey E
Slide 5: Board of Directors
Board of Directors Name CVB Experience Age Linn Wiley—Chairman 22 Years 75 George Borba Jr.—Vice Chairman 2 Years 47 Ray O’Brien—Vice Chairman 2 Years 57 Steve Del Guercio 2 Years 52 Robert Jacoby 8 Years 72 Hal Oswalt NEW 66 San Vaccaro 14 Years 81 Chris Myers—CEO 8 Years 52
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 (3/31/14) In millions 1 Wells Fargo $1,546,707 2 Union Bank $107,237 3 Bank of the West $67,725 4 First Republic Bank $44,346 5 City National Bank $29,718 6 SVB Financial $29,711 7 East West Bank $27,401 8 OneWest Bank $21,799 9 Cathay B
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings Consecutive Quarters of Profitability 99 Consecutive Quarters of Cash Dividends #8 Rated Bank: BankDirector Magazine Bank Performance Scorecard (August 2013) BauerFinancial Report Five Star Rating (March 2014) Fitch Rating BBB (September 2013)
Slide 9: Our Markets
CVB Financial Corp. Our Markets
Slide 10: Existing Locations
Existing Locations 43 Business Financial Centers 6 Commercial Banking Centers 3 CitizensTrust Locations San Joaquin Stanislaus Merced Madera Fresno Tulare Kern San Bernardino Los Angeles Riverside Orange San Diego Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust S
Slide 11: Deposits
Deposits* # of Center Total Deposits Total Deposits (000’s) Locations (6/30/13) (6/30/14) Los Angeles County 18 $1,892,050 $2,069,542 Inland Empire 11 $1,762,673 $2,148,802 (Riverside & San Bernardino Counties) Central Valley 9 $812,072 $845,125 Orange County 10 $600,373 $920,300 Other 1 $256,795 $2
Slide 12: Total Deposits
Total Deposits* $7,500,000 $6,500,000 $5,500,000 $4,500,000 $3,500,000 $2,500,000 $1,500,000 $500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (000’s) 2010 2011 2012 2013 2014 Non-Int Bearing Dep Interest Bearing Deposits* *Interest Bearing Deposits includes REPOs 2Q Results 2014 | cbba
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q2 2014 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion. | Peer Data as of 3/31/2014 3.00% CVBF Peers 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 14: Total Loans
Total Loans* $ 4,400,000 $ 4,200,000 $ 4,000,000 $ 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2014 (000’s) Total Non-Covered Loans Total Covered Loans
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Other, 2.1% Receivables, 2.2% Dairy, Livestock & SFR Mortgage, Agribusiness, 5.1% 5.0% Multi-Family, 6.0% Commercial & Industrial, 14.6% Construction RE, 1.6% Commercial RE- Non-Owner, 40.6% Commercial RE - Owner Occupied, 22.8%
Slide 16: New/Enhanced Lending Initiatives
New/Enhanced Lending Initiatives Residential Real Estate Multi-Family Asset Based Lending Residential and Commercial Construction
Slide 17: Credit Quality
CVB Financial Corp. Credit Quality
Slide 18: Non-Performing Assets
Non-Performing Assets* $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (000’s) 2009 2010 2011 2012 2013 2014 *Non-Covered Non-Performing Loans OREO
Slide 19: Classified Loans
Classified Loans* $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- (000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 *Non-Covered 2Q Results 2014 | cbbank.com 19
Slide 20: Loans: Net Charge Offs
Loans: Net Charge Offs* $10,000 $- 2009 2010 2011 2012 2013 YTD 2014 $(10,000) $(20,000) $(30,000) $(40,000) $(50,000) $(60,000) $(70,000) Net Charge Offs (by year) *Non-Covered 2Q Results 2014 | cbbank.com 20
Slide 21: Profits
CVB Financial Corp. Profits
Slide 22: Net Income
Net Income $32,500 $30,000 $27,500 $25,000 $22,500 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (000’s) 2009 2010 2011 2012 2013 2014 Net Income After Taxes $20.4 million FHLB prepayment charge 2Q Results 2014 | cbb
Slide 23: Earnings
Earnings (000’s) 2010 2011 2012 2013 6 Months to 6/30/2014 Net Interest Income $259,317 $234,681 $236,950 $216,266 $114,101 Provision for Loan Losses ($61,200) ($7,068) $0 $16,750 $15,100 Other Operating Income/Expenses (Net) ($111,378) ($106,809) ($122,257) ($88,741) ($43,933) Income Taxes ($23,804
Slide 24: Net Interest Margin
Net Interest Margin 4.25% 4.00% 375%. 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 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 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 2013 2014 Normalized* *Normalized excludes accretion on covered loans 2Q Results 2014 |
Slide 25: Efficiency & Expenses
CVB Financial Corp. Efficiency & Expenses
Slide 26: Efficiency Ratio
Efficiency Ratio 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 Efficiency Ratio $20.4 million FHLB prepayment charge 2Q Results 2014 | cbbank.com 26
Slide 27: Non-Interest Expense
Non-Interest Expense as a % of Average Assets 3.50% 3.00% 2.50% 2.00% 1.50% 1.79% 1.00% 0.50% 0.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 Non-Interest Expense as a % of Average Assets $20.4 million FHLB prepayment charge 2Q Results 2014 | cbbank.com 27
Slide 28: Capital
CVB Financial Corp. Capital
Slide 29: Capital Ratios
Capital Ratios Regulatory Regulatory Minimum Ratio Well-Capitalized Ratio March 31, 2014* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.98% Total Risk-based Capital Ratio 8.0% 10.0% 20.24% Tier 1 Leverage Ratio 4.0% 5.0% 11.48% Tangible Capital Ratio 10.98% Core Tier 1 Capital Ratio 18.36% * CVB Fina
Slide 30: 2nd Quarter 2014 Share Repurchases
2nd Quarter 2014 ‘CVBF’ Share Repurchases 7,420,678= remaining shares authorized 344,493 = shares repurchased at an average price of $14.15 per share 2Q Results 2014 | cbbank.com 30
Slide 31: Securities & Investments
CVB Financial Corp. Securities & Investments
Slide 32: Securities Portfolio
Securities Portfolio* —$3.0 Billion— CMO’s / Trust Preferred Yield on securities REMIC’s 0.17% Municipal portfolio = 2.64% 11.38% Bonds 19.48% for the 2nd Quarter 2014 Government Agency & GSEs 11.04% MBS 57.93% Securities portfolio totaled $3.02 billion at 6/30/2014. The portfolio represents 40.7% o
Slide 33: Securities Portfolio Mark-to-Market
Securities Portfolio* $3.0 Billion Mark-to-Market (Pre-tax) $100,000 $80,000 $60,000 $41,478 $40,000 $20,000 $0 -$20,000 -$40,000 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sept Dec Mar Jun 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 (000’s) *Securities Av
Slide 34: CVBF Assets
CVBF Assets 12/31/06 $6.1 Billion Loans, Securities net 42.4% 49.9% Goodwill & Fed Intangibles Balance* 0.7% Other 4.6% 2.4% 6/30/14 $7.4 Billion Loans, Securities net 48.0% 40.7% Fed Goodwill & Other 5.6% Balance* Intangibles 4.7% 1.0% *Includes overnight funds held at the Federal Reserve, Interest
Slide 35: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 Yield on Loans* Yield on Securities 2Q Results 2014 | cbbank.com *Excluding Discount Accretion
Slide 36: 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% 6/30/14 $6.6 Billion Other Borrowings Liabilities 3.0% Junior subordinated 1.8% Debentures 0.4% Total Deposits* 94.8% *Includes Customer Repurchase Agreements
Slide 37: New Acquisition: American Security Bank
CVB Financial Corp. New Acquisition “American Security Bank” 2Q Results 2014 | cbbank.com 37
Slide 38: Transaction Highlights
Transaction Highlights Merger Completed: May 15, 2014 Price: $57 million (cash) Number of Locations: ‘5’ Branch Locations ‘2’ Electronic Banking Vestibules Total Assets: $433 million Total Loans: $247 million Non-Interest Bearing Deposits: $193.6 million Total Deposits: $378.2 million 2Q Results 201
Slide 39: Closure/Consolidations
Closure/Consolidations Branch Date Closure/Consolidation Apple Valley– Electronic Banking August 2014 Closure Vestibule Victorville - Electronic Banking Vestibule & Operations Center September 2014 Closure Orange County CBC (CBB) September 2014 Consolidate into Newport Beach (ASB) Corona (ASB) Septe
Slide 40: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
Slide 41: 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.
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
Three Areas of Growth Same Store DeNovo Sales Acquisitions —Banks— — Trust—
Slide 44: 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 2Q Results 201
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: CVB Financial Corp.
CVB Financial Corp. Copy of presentation at www.cbbank.com