Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2008)
52 slides from Cvb Financial's investor presentation, Jul 28, 2008
Slide 1: CVB Financial Corp.
\ CVB Financial Corp. July 29, 2008
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") 5
Slide 4: CVB Financial at a glance
Headquarters Ontario, California Origin August 9, 1974 Business Financial Centers 44 Commercial Banking Groups 3 Assets $6.5 Billion Deposits $3.2 Billion Loans $3.5 Billion Market Capitalization $786 Million 7
Slide 5: Management team
Edward J. Biebrich Jr. Executive Vice President 26 Years 10 Years Chief Financial Officer Jay W. Coleman Executive Vice President 44 Years 20 Years Sales Division Todd E. Hollander Executive Vice President 18 Years New Sales Division Christopher D. Myers President 24 Years 2 Years Chief Executive Of
Slide 6: Management team (continued)
Nancy A. Sinclair Senior Vice President 39 Years 11 Years The Marketing Group James E. Mead Senior Vice President 33 Years 15 Years Regional Manager - Inland Empire Vince L. Gottuso Senior Vice President 22 Years 15 Years Regional Manager - Orange County Mark Richardson Senior Vice President 19 Year
Slide 7: Vision statement
"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%." 13
Slide 8: Mission statement
"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 banking commitme
Slide 9: Five core values
Financial Strength Superior People Customer Focus Cost Effective Operation Having Fun 17
Slide 10: 2007 All-Star Banking Team
usBanker 2007 ALL-STAR BANKING TEAM em
Slide 11: Rankings and 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 14th Ranked Bank in the
Slide 12: Financial Performance (2nd Quarter Results)
cial Corp. June 30, 2008 Financial Performance (2"¢ Quarter Results)
Slide 13: *Earnings before securities gains & losses, OREO gains & losses, provisions for OREO &
*Earnings before securities gains & losses, OREO gains & losses, provisions for OREO & loan losses, provision for unfunded commitments, and income taxes. 25
Slide 14: Yields, costs and spreads
Yieldon Investments. Cost of Borrowings Spread Yield on Loans Cost of Deposits Spread 4.64% 3.39% 1.25% 6.52% 94% 5.58% 5.06% 5.14% 3.88% 1.26% 6.11% 1.06% 5.05%
Slide 15: Loan Growth + Loan Quality
Loan Growth + Loan Quality
Slide 16: Six year loan growth
(000s) 31 259,231 Six year loan growth = $2.3 Billion 426,181
Slide 17: Loan Portfolio: Performance
Loan Portfolio: Performance 12/31/04 12/31/05 12/31/06 12/31/07 3months 6 months to 3/31/08 to6/30/08. TotalLoans —_— 2,149,340 2,674,629 3,080,629 3,507,001 3,403,623 3,527,154 (000s) NetChame- _—_ (1,212) 46. (2,533) 1,358 38 439 Offs (000s) | 30-Day 05% 02% 04% 06% 53% 03% Delinquencies Non- 0% 0
Slide 18: Loans by region
35 Orange County 14% Central Valley 17% Inland Empire 24%
Slide 19: Loans by type
37 37 Residential Construction and Land - 3.5% Commercial Construction and Land - 6.0% Commercial Real Estate - 52.5% SFR Mortgage - 10.0% Commercial and Industrial - 12.0% Dairy and Livestock - 8.3% Other - 7.7%
Slide 20: Loans by geography
39 Los Angeles County 26% Inland Empire 22% Central Valley 21% Orange County 11% San Diego County 19% Other - 1%
Slide 21: Loans as of 6/30/08
As of 6/30/08 $3.5 Billion in Loans >$12.3 Million in Non- Performing Loans >$1.1 Million in Real Estate Owned
Slide 22: Non-performing assets breakdown
43 43 OREO - $1,136 Residential Construction - $4,078 Residential Land - $5,723 Mortgage Pools - $1,671 Commercial - $551 Consumer - $312
Slide 23: Investment Portfolio
hvestment Portfolio
Slide 24: Investment Portfolio
Investment Portfolio $2.5 Billion CMO 24.52% Agency 1.56%
Slide 25: Investment portfolio credit ratings
49 N.R. - Pre-0funded 5.30% N.R. - General Obligation 11.00% N.R. - Others 1.00% Rated - Investment Grade AA or better 37.30%
Slide 26: Shareholder Performance
Shareholder Performance
Slide 27: CVB Financial Corp.
CVB Financial Corp. Pomona First Federal Vineyard Bank Temecula Valley First Centennial 13.15 34.51 21.92 23.50 22.50 11.24 1.15 3.26 4.99 3.35 (14.52%) (96.67%) (85.13%) (78.77%) (85.11%)
Slide 28: ‘Westamerica Bank
‘Westamerica Bank VBE City National Wilshire State Bank Nara Bank Cathay Bank Pacific Capital Bank Pacific Western Bank East West Bank HamniBank ‘County Bank 4.40% (14.5256) (29.23%) (46.86%) (49.38%) (49.43%) (54.35%) (63.65%) (63.98%) (72.08%) (86.63%)
Slide 29: Annual 11.11% (5.46%) (0.04%)
1/1/2000 100.00 100.00 100.00 7/23/08 246.76 61.86 99.62 Annual 11.11% (5.46%) (0.04%) Increase
Slide 30: 59
59
Slide 31: Source: Federal Deposit Insurance Corporation
Source: Federal Deposit Insurance Corporation 61
Slide 32: California peer banks by asset size
63 *Assets in millions. Rank Peer Bank Asset Size * 1 Wells Fargo Bank $609,000 2 Bank of the West $62,021 3 Union Bank of California $57,413 4 City National Bank $15,934 5 United Commercial Bank $12,743 6 East-West Bank $11,760 7 Cathay Bank $10,443 8 California Bank & Trust $10,269 9 Pacific Capit
Slide 33: 2008 & Beyond: The Game Plan
65 2008 & Beyond THE GAME PLAN
Slide 34: Business Financial Centers
44 Business Financial Centers Acquisition: 31 Branch Locations DeNovo: 13 Branch Locations 67
Slide 35: Acquired branch locations
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 National Bank Western Security Bank
Slide 36: De novo branch locations
Date Opened Chino Corona Upland Ontario Colton Ontario Airport Riverside Tri City Glendale Bakersfield Fresno Madera Stockton 12/31/07 Assets 1974 1977 1980 1980 1984 1987 1990 1990 1999 2001 2003 2005 2007 Branch Name $273,558 $132,137 $112,121 $89,847 $37,158 $187,936 $84,494 $264,051 $100,300 $62
Slide 37: Geographic Expansion
Geographic Expansion
Slide 38: Expand our Geographic Footprint
Expand our Geographic Footprint 75
Slide 39: Southern California
Southern California @ Santa Clarita
Slide 40: Central California
Stockton Central California Modesto @ Madera _{ e @ Fresno @ Visalia @Tulare @ Porterville @ McFarland @ Bakersfield
Slide 41: Commercial Banking Groups, Specialty Banking Groups, CitizensTrust
Commercial Banking Groups Specialty Banking Groups CitizensTrust 81
Slide 42: New commercial banking group locations
83 Location San Fernando Valley (Encino) Orange County (Newport Beach) Inland Empire (Ontario) Date Opened February 2008 Summer 2008 Summer 2008
Slide 43: Commercial banking group model
Focus exclusively on businesses with annual revenues of $10 million or greater. Located on an 'upstairs' floor of a mid-rise office building adjacent to other business professionals (CPA Firms, Law Firms, etc.) Office building location must be adjacent to concentrations of industrial manufacturers,
Slide 44: Commercial banking group results
$722 million in Loan Commitments $443 million in Loan Outstandings $61 million in Total Deposits Total staff = Eleven associates 87
Slide 45: Commercial Banking Groups, Specialty Banking Groups, CitizensTrust
Commercial Banking Groups Specialty Banking Groups CitizensTrust 89
Slide 46: Specialty banking group deposits and loans
Total Deposits: $236 million Total Loans: $163 million 93
Slide 47: Commercial Banking Groups, Specialty Banking Group, CitizensTrust
Commercial Banking Groups Specialty Banking Group CitizensTrust 95
Slide 48: CitizensTrust assets and AUM
97 $2.5 Billion in total assets $807 Million in assets under management
Slide 49: Strategic priorities
99 Grow Core Deposits Grow Business Loans Grow Fee Income Cost Effective Operation Recruit, Retain and Reward Superior People Expand our Geographic Footprint
Slide 50: Citizens Business Bank 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 million dollars. 101
Slide 51: Key takeaways
103 Strong Credit Quality Liability Sensitive Balance Sheet Positive Growth Metrics New Growth Initiatives Local Competition is Diminished
Slide 52: Questions
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