Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (October 2011)
43 slides from Cvb Financial's investor presentation, Oct 20, 2011
Slide 1: CVB Financial Corp.
CVB Financial Corp. October 2011
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 plan and expectations regardi
Slide 3: CVB Financial Corp. (CVBF) overview
3 Total Assets: $6.5 BillionGross Loans: $3.5 BillionTotal Deposits (Including Repos): $5.1 BillionTang. Common Equity: $700 Million Source: Q3 2011 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California.
Slide 4: Experienced Leadership
4 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 34 Years 3 Years David C. Harvey
Slide 5: Who is CVB Financial Corp.?
Whois... CVB Financial Corp.?
Slide 6: Largest Banks Headquartered in California
Largest Banks Headquartered in California 6 Rank Name Asset Size (6/30/11) 1 Wells Fargo $1,259,734 2 Union Bank $79,615 3 Bank of the West $59,517 4 OneWest Bank $26,433 5 First Republic Bank $23,798 6 City National Bank $22,526 7 East West Bank $21,873 8 SVB Financial $19,367 9 Cathay Bank $10,536
Slide 7: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 138 Consecutive Quarters of Profitability88 Consecutive Quarters of Cash DividendsBauerFinancial Report- Five Star Rating (March 2011)Fitch Rating- BBB (December 2010) 7
Slide 8: Our Markets
CVB Financial Corp. Our Markets
Slide 9: Existing Locations
Existing Locations 9 43 Business Financial Centers5 Commercial Banking Centers Commercial Banking Centers Business Financial Centers
Slide 10: Deposits
Deposits* Deposits* 10 *Includes Customer Repurchase Agreements Average Cost of Deposits 0.37% 0.17%
Slide 11: Deposit Cost Comparison
Deposit Cost Comparison 11 Source: Q3 2011 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 6/30/2011 (CHART)
Slide 12: Loans as of 9/30/2011
Loans as of 9/30/2011 as of 9/30/2011 as of 9/30/2011 12 *Prior to MTM discount
Slide 13: Total Non-Covered Loans
Total Non-Covered Loans Total Non-Covered Loans (000's) *Removed Mortgage Pools, Muni Leasing and Construction Adjusted Non-Covered Loans* $690 million $332 million
Slide 14: Loan Portfolio Composition
14 Source: Q3 2011 earnings release & company reports | *Non-covered loans Loan Portfolio Composition* Total Loans by Type (CHART) Commercial RE Non-Owner Occupied 39.4% Consumer 1.6% SFR Mortgage 5.9% Municipal Lease Finance Receivables 3.6% Auto & Equipment 0.5% Dairy & Livestock 9.2% Commercial &
Slide 15: Total Covered Loans
Total Covered Loans 15 (000's) (CHART) Net of Discount $200 million $68 million
Slide 16: Non-Performing Assets
Non-Performing Assets Non-Covered Non-Covered Non-Covered 16 (000's)
Slide 17: Loan Loss Allowance
Loan Loss Allowance Non-Covered 17 (CHART)
Slide 18: Classified Loans
Classified Loans Non-Covered Non-Covered Non-Covered 18 (000's)
Slide 19: Superior Credit Quality
CVBF's strong loan underwriting culture has limited its exposure to problem creditsContinued 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: Q3 2011earnings release & other company fi
Slide 20: Profits
CVB Financial Corp. Profits
Slide 21: Net Income
(CHART) Net Income 21 (000's) Net Income After Taxes Highest in CVBF History!
Slide 22: Earnings
Earnings Earnings 22 (000's)
Slide 23: Net Interest Margin
Net Interest Margin Net Interest Margin 23 *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 24: Peer Profitability Metrics
Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin (CHART) (CHART) (CHART) Source: Q3 2011 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 o
Slide 25: Capital
CVB Financial Corp. Capital
Slide 26: Risk-based Capital Ratios
Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Tier 1 Leverage Ratio Tangible Capital Ratio Core Tier 1 Capital Ratio. 4.0% 8.0% 10.0% 18.7% 4.0% 5.0% 11.1% 4.0% 5.0% 9.8% 14.6% CVB Financial Corp.
Slide 27: Peer Capital Metrics
(CHART) 27 Source: Q2 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 28: Securities / Investments
CVB Financial Corp. Securities /Investments
Slide 29: Securities Portfolio $2.2 Billion
(CHART) Source: Q3 2011 earnings release. As of 9/30/2011 securities held-to-maturity were valued at approximately $2.6 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.2 billion at 9/30/2011. The portfolio represent
Slide 30: Securities Portfolio Mark to Market
Securities Portfolio* $2.2 Billion --Mark to Market-- (Pretax) (CHART) (000's) *Securities Available For Sale
Slide 31: CVBF Assets
CVBF Assets 31 *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit 9/30/11$6.5 Billion (CHART) 12/31/06$6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans 7.6%
Slide 32: CVBF Liabilities
CVBF Liabilities 12/31/06$5.7 Billion 9/30/11$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 33: Recent Updates & Highlights
Recent Updates & Highlights 33
Slide 34: 3rd Quarter Highlights
34 Net income of $22.4 million for the third quarter of 2011Diluted earnings per common share were $0.21 for the third quarter and $0.57 year-to-dateAllowance for credit losses represents 3.01% of total non-covered loans & leasesNon-performing loans decreased to $65.2 million, and now represent 2.06
Slide 35: Recent Updates
Recent Updates 35 FDIC and DFI completed Safety and Soundness Field Examination in mid-July.
Slide 36: Our Growth Strategy
CVB Financial Corp. Our Growth Strategy
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 FDIC-assisted & conventional M&ATarget size: $300 million to $3 billion in assetsFinancial & StrategicIn-market and/or adjacent geographic market (California only) 40 --Banks-- --Trust/Investment-- Target size: AUM of $300 million to $1.5 billionIn California
Slide 41: Four Key Objectives
CVB Financial Corp. --Four Key Objectives-- Quality Loan GrowthNon-Interest Bearing Deposit GrowthNon-Interest Income GrowthExpense Control 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 43