Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (March 2008)
40 slides from Cvb Financial's investor presentation, Mar 25, 2008
Slide 1: CVB Financial Corp. - Citizens Business Bank
CVB Financial Corp. Citizens Business Bank er March 25, 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: Company facts at a glance
Headquarters Ontario, California Origin August 9, 1974 Business Financial Centers 45 (as of February 2008) Assets $6.29 Billion Deposits $3.364 Billion Loans $3.495 Billion Market Capitalization $860 Million 7
Slide 5: Executive management team
Edward J. Biebrich Jr. Executive Vice President 26 Years 10 Years Finance Division Jay W. Coleman Executive Vice President 44 Years 20 Years Sales Division Edward J. Mylett Jr. Executive Vice President 34 Years 12 Years Credit Management Division Christopher D. Myers President 24 Years 1.5 Years Chi
Slide 6: Regional and group management
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 - Region 1 Vince L. Gottuso Senior Vice President 22 Years 15 Years Regional Manager - Region 2 Mark Richardson Senior Vice President 19 Years 15 Years
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: U.S. Banker 2007 All-Star Banking Team
usBaNnKEr 2007 ALL-STAR BANKING TEAM
Slide 10: 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 (December 2006) 14th Ran
Slide 11: Growth 2000 to 2007
(000s) 12/31/00 12/31/07 Change Annual Increase % Demand Deposits $665,290 $1,295,959 $630,669 10.0 Total Deposits (including REPOs) 1,595,030 3,700,658 2,105,628 12.8 Total Loans 1,051,493 3,495,144 2,443,651 18.7 Capital 188,630 424,948 236,318 12.3 Assets 2,307,996 6,293,963 3,985,967 15.4 21
Slide 12: Growth versus U.S. banks
CVBF U.S. Banks Deposits 95% 75% Loans 232% 74% Capital 126% 116% Assets 173% 79% Source: Federal Deposit Insurance Corporation 23
Slide 13: Return on equity and assets versus peers
CVBF California Banks U.S. Banks Return on Average Equity 15.00% 6.35% 9.29% Return on Average Assets 1.00% 0.76% 0.95% Source: Federal Deposit Insurance Corporation 25
Slide 14: Asset quality
12/31/07 * $1.4 Million in Non-Performing Loans *0.10% Delinquency (over 30 days Past Due) “ ” °“ZeroO” Real Estate Owned
Slide 15: Stock performance versus indices
CVB Financial Corp. NASDAQ Market Index S & P 500 Index HemScott Bank Index 01/01/2000 $100.00 $100.00 $100.00 $100.00 12/31/2007 $221.51 $70.57 $99.94 $184.75 29
Slide 16: Long-term return with dividends reinvested
One dollar invested on February 11, 1975, with dividends reinvested, would be valued at $405.80 as of December 31, 2007. 1 31
Slide 17: California peer banks by asset size
33 *Assets in millions as of December 31, 2007 Rank Peer Bank Asset Size * 1 Wells Fargo Bank $575,000 2 Bank of the West $61,830 3 Union Bank of California $55,157 4 City National Bank $15,394 5 East-West Bank $11,833 6 United Commercial Bank $11,783 7 Cathay Bank $10,388 8 California Bank & Trust
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Slide 19: Balance sheet composition versus California peers
California Peer Banks % CVBF % Assets Loans 4,924,453 74.3 3,495,144 55.5 Investments 1,024,551 15.5 2,390,566 38.0 Other Assets 675,048 10.2 408,253 6.5 Total Assets 6,624,052 100.0 6,293,963 100.0 Liabilities & Equity Non-Interest Bearing Deposits 736,501 11.1 1,297,671 20.6 Total Deposits 4,654,0
Slide 20: Yields, costs and spreads
2005 2006 2007 Q4 2007 Yield on Investments 4.64% 5.06% 5.24% 5.20% Cost of Borrowings 3.39% 4.40% 4.94% 4.75% Spread 1.25% .66% .30% .45% Yield on Loans 6.52% 6.92% 6.88% 6.68% Cost of Deposits .94% 1.91% 2.03% 1.85% Spread 5.58% 5.01% 4.85% 4.83% 43
Slide 21: Loan portfolio by rate type
Fixed Rate Loans $1,621,997 46.3 Fixed with Reset 870,226 24.8 Variable Rate Loans 1,014,778 28.9 45 Amount % 3,507,001 100.0%
Slide 22: Interest rate sensitivity
Assets Amount 12/31/07 (000s) Average Yield 12/31/07 Variable Rate Loans (Less than one year) 1,553,686 6.93% Variable Rate Investments (Less than one year) 443,403 4.85% Total Variable 1,997,089 6.47% 47 Liabilities Interest Bearing Deposits (One year or less) 2,063,724 3.00 Borrowing (One year or
Slide 23: 2008 & Beyond: The Game Plan
49 2008 & Beyond THE GAME PLAN
Slide 24: Strategic priorities
51 Grow Core Deposits Grow Business Loans Grow Fee Income Cost Effective Operation Recruit, Retain and Reward Superior People Expand our Geographic Footprint
Slide 25: Technology and specialty banking group
53 Technology On-line Banking Product Enhancement Lock-Box Enhancement Citizens Automated Deposit Mobile Banking SPECIALTY BANKING GROUP (NEW)
Slide 26: New commercial banking groups
55 Business Financial Centers Dairy & Livestock Industries Group Asset Based Lending SBA Lending Real Estate Lending Construction Loans Citizens Financial Services Municipal Leasing Small Business Lending (Credit Scoring) COMMERCIAL BANKING GROUPS (NEW)
Slide 27: Citizens Trust
Citizens Trust Key New Hires Open Architecture Strategic Alliances Monetize Client Relationship ("the whole wallet") 57
Slide 28: Relationship management model
59 Business Customer Relationship Manager (Bank) Financial Services Specialist Technolog y SBA Internationa l Cash Management Specialty Banking Constructio n Lending Trust/Wealth Management Capital Markets (SWAPS) ABL Personal Banking Mortgage Lending Brokerage Equipment/ Vehicle Leasing Specialty B
Slide 29: Efficiency ratio
Efficiency Ratio = Non-Interest Expense Net Interest Income + Non-Interest Income 61 55.93%
Slide 30: Recruit, retain and reward superior people
63 Financial Strength Dynamic Work Environment Growth Opportunity Competitive Compensation Business Leadership & Integrity
Slide 31: Sales team and incentive plan
Business Financial Center Managers Commercial Banking Group Managers Relationship Managers Business Development Officers Portfolio Managers Service Managers Assistant Service Managers New Sales incentive plan 65
Slide 32: Expand our Geographic Footprint
Expand our Geographic Footprint 67
Slide 33: Business financial centers: acquisitions and de novo
45 Business Financial Centers Acquisition: 31 Branch Locations DeNovo: 14 Branch Locations 69
Slide 34: Acquisition history
Bank Name Date Acquired # of Locations Lloyds Bank (Branch) El Dorado Bank (Branch) Independent National Bank Huntington Beach Bank Fontana National Bank Mid-City Bank Western Industrial National Bank Pioneer Bank Vineyard Bank (Branch) Citizens Bank of Pasadena Orange National Bank Kaweah National
Slide 35: De novo branch history
Date Opened Chino Corona Upland Ontario Colton Ontario Airport Riverside Tri City Glendale Bakersfield Fresno Madera Stockton Encino 12/31/07 Assets 1974 1977 1980 1980 1984 1987 1990 1990 1999 2001 2003 2005 2007 2008 Branch Name $273,558 $132,137 $112,121 $89,847 $37,158 $187,936 $84,494 $264,051
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Slide 37: Central Valley branch map
‘Modesto @ Merced @ @ Fresno (@ McFarland @ Bakersfield
Slide 38: Strategic priorities
79 Grow Core Deposits Grow Business Loans Grow Fee Income Cost Effective Operation Recruit, Retain and Reward Superior People Expand our Geographic Footprint
Slide 39: Vision to be the dominant California financial services company
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 $100 million dollars. 81
Slide 40: Thank you!
CVB Financial Corp. : Thank you!