Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Shareholder Meeting (May 2013)
50 slides from Cvb Financial's shareholder meeting presentation, May 16, 2013
Slide 1: 38th Annual Shareholders' Meeting, 1Q Results 2013
th 38 Annual Shareholder’s Meeting May 15 2013 th Exhibit 99.1 1Q Results 2013 | cbbank.com
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: Senior Leadership Team
Senior Leadership Team Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 29 Years 7 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 E
Slide 4: Senior Leadership Team
Senior Leadership Team Name Position Banking Experience CVBF Service Ted Dondanville Senior Vice President Senior Lender 31 Years 15 Years Hector Gutierrez Senior Vice President Deputy Chief Credit Officer 31 Years 2 Years David Krebs Senior Vice President Human Resources 19 Years 10 Years Eric Luce
Slide 5: Senior Managers
Senior Managers Steven Caseldine SVP |Corona Manager Francene LaPoint SVP | Controller Ken Clark SVP | Riverside Manager Thomas Trine SVP | Trust Services Manager Mary Wilson SVP | Tri-City Manager Mary Hernandez SVP | Specialty Banking Group Greg Armstrong SVP | Upland CBC Manager John Hillier SVP
Slide 6: 1Q Results 2013
1Q Results 2013 | cbbank.com
Slide 7: CVB Financial Corp. (CVBF) at a glance
Total Assets: $6.3 Billion Gross Loans: $3.4 Billion Total Deposits (Including Repos): $5.2 Billion Total Equity: $768 Million Source: Q1 2013 earnings release & company filings. *non-covered loans CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of
Slide 8: Largest Banks Headquartered in California
11 CVB Financial Corp. $6,266 Largest Banks Headquartered in California Source: SNL Financial Rank Name Asset Size (3/31/13) Wells Fargo $1,436,634 Union Bank $96,959 Bank of the West $62,493 First Republic Bank $35,083 City National Bank $27,434 OneWest Bank $25,369 East West Bank $23,102 SVB Finan
Slide 9: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 144 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 10: Our Markets
Our Markets 1Q Results 2013 | cbbank.com
Slide 11: Existing Locations
Existing Locations 40 Business Financial Centers 5 Commercial Banking Centers 3 CitizensTrust Locations 1Q Results 2013 | cbbank.com
Slide 12: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (3/31/12) Total Deposits (3/31/13) Los Angeles County Inland Empire (Riverside & San Bernardino Counties) Central Valley Orange County Other Total *Includes Customer Repurchase Agreements; Balance as of balance sheet date Average Cost of Deposit
Slide 13: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits (000’s) $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 14: Loans by Region
(000’s) Los Angeles County Central Valley Inland Empire (Riverside & San Bernardino Counties) Orange County Other Total Non-Covered Loans* $1,198,804 $646,987 $601,204 $455,543 $294,463 $3,197,001 Covered Loans* $14,194 $173,133 $1,034 $0 $11,241 $199,602 Total Loans* $1,212,998 $820,120 $602,238 $4
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition* Total Loans by Type Other, 1.8% SFR Mortgage, 5.1% Municipal Lease Finance Receivables, 3.4% Multi-Family, 3.6% Dairy, Livestock & Agribusiness, 8.9% Commercial & Industrial, 16.7% Commercial RE- Non-Owner, 37.2% Construction RE, 1.7% Commercial RE – Owner Occupied, 21.6%
Slide 16: Dairy & Livestock Loans
Dairy & Livestock as of 03/31/2013 Territory Number of Loan Outstandings Total Loan Outstandings Central Valley $123,862 Inland Empire $38,284 Idaho $47,051 New Mexico $32,017 Washington $26,394 Other Areas $10,894 Total $278,502 Dairy: Real Estate $137,964 Grand Total Grand Total $416,466 $416,466
Slide 17: Loans
Loans* *Covered Loans net of SJB purchase discount $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 (000’s) 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 Non Covered Loans Covered Loans*
Slide 18: New/Enhanced Lending Initiatives
• Residential Real Estate • Multi-Family (Apartments) • Asset Based Lending New/Enhanced Lending Initiatives
Slide 19: Other Lending Areas for Future Consideration
Other Lending Areas For Future Consideration/Expansion • SBA 7A • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking
Slide 20: CVB Financial Corp.
CVB Financial Corp.
Slide 21: Net Income
Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $25,000 $22,500 $20,000 $17,500 $12,500 $15,000 $10,000 $7,500 $5,000 $2,500 $0 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
Slide 22: Earnings
(000’s) 2009 2010 2011 2012 3 Months to 3/31/2013 Net Interest Income $222,264 $259,317 $234,681 $236,950 $54,589 Provision for Credit Losses ($80,500) ($61,200) ($7,068) $0 $0 Other Operating Income/Expenses (Net) ($52,515) ($111,378) ($106,809) ($122,257) ($24,053) Income Taxes ($23,830) ($23,804)
Slide 23: Net Interest Margin
Net Interest Margin *Normalized excludes accelerated accretion on covered loans Normalized* 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 4.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00%
Slide 24: CVB Financial Corp.
CVB Financial Corp.
Slide 25: Bank Borrowings
Bank Borrowings (000’s) Trust Preferred (Jr. Subordinated Debentures) Federal Home Loan Bank Debt & Other Borrowings 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $2,500,000 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,0
Slide 26: Debt Repayment Activity
Type of Debt Payoff Date Amount Weighted Average Interest Rate CVB Statutory Trust II 1/7/2013 $20,619 3-Month LIBOR + 2.85% CVB Statutory Trust II 4/7/2013 $20,619 3-Month LIBOR + 2.85% Total: $41,238 (000’s) Debt Repayment Activity
Slide 27: Outstanding Debt
Outstanding Debt Type of Debt Balance at 4/30/2013 Interest Rate Maturity FHLB Advance $199,002 4.52% Fixed 11/28/2016 CVB Statutory Trust III $25,774 3-Month LIBOR + 1.38% 3/15/2036 Total $224,776 (000’s)
Slide 28: CVB Financial Corp.
CVB Financial Corp.
Slide 29: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31,2013* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.36% Total Risk-based Capital Ratio 8.0% 10.0% 19.63% Tier 1 Leverage Ratio 4.0% 5.0% 11.54% Tangible Capital Ratio 4.0% 5.0% 11.44% Core Tier 1 Capital Ratio 17.21% Capital Ratios *
Slide 30: Total Shareholder Equity
Total Shareholder Equity (000’s) $825,000 $0 $75,000 $150,000 $225,000 $300,000 $375,000 $450,000 $525,000 $600,000 $675,000 $750,000
Slide 31: Securities & Investments
Securities & Investments
Slide 32: Securities Portfolio $2.39 Billion
Securities Portfolio* --$2.39 Billion-- *Securities Available For Sale Yield on securities portfolio = 2.39% for the 1st Quarter 2013 CMO’s / REMIC’s 19.98% MBS 37.34% Trust Preferred 0.21% Municipal Bonds 26.13% Government Agency & GSEs 16.34% Source: Q1 earnings release. As of 3/31/2013 securities
Slide 33: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.39 Billion Mark-to-Market (Pre - tax) (000’s) *Securities Available For Sale $60,781 $60,781 MBS & CMO’s $24,607 Municipal Bonds $36,850 Other Securities ($676) $89,000 $79,000 $69,000 $59,000 $49,000 $39,000 $29,000 $19,000 $9,000 -$1,000 Jun Sep Dec Mar Jun Sep Dec Mar Mar
Slide 34: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion Yield on Loans* Yield on Securities 6.00% Q1 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 35: CVBF Assets
CVBF Assets Loans 49.9% Securities 42.4% Loans, 52.3% Securities, 38.2% *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit 3/31/13 $6.3 Billion 12/31/06 $6.1 Billion Fed Balance* 2.
Slide 36: CVBF Liabilities
CVBF Liabilities Borrowings, 36.0% Total Deposits*, 61.4% Total Deposits*, 94.3% 12/31/06 $5.7 Billion 3/31/13 $5.5 Billion *Includes Customer Repurchase Agreements Junior subordinated Debentures, 1.9% Other Liabilities, 0.7% Other Liabilities, 1.2% Junior subordinated Debentures, 0.9% Borrowings, 3
Slide 37: May 2013 Shareholder Update
May 2013 -Shareholder Update-
Slide 38: SEC Investigation
SEC Investigation • SEC investigation related to CBB loan loss reserves was initiated in late July 2010 • CVBF and outside counsel have fully cooperated with the SEC • We are hopeful the investigation will be positively resolved but have no specific insight as to timing or outcome
Slide 39: Lawsuits: Shareholder & Derivative
Lawsuits: Shareholder & Derivative • The federal securities class action was initiated in January 2011, and the complaint was dismissed by the district court judge in January 2012. An amended complaint was filed in February 2012 and was dismissed by the court in August 2012. • Plaintiffs filed anoth
Slide 40: CVBF Stock Price
CVBF Stock Price $10.38 Shareholders Meeting 05/18/10 $9.22 Shareholders Meeting 05/18/11 $11.35 05/15/13 $6.56 Shareholders Meeting 05/13/09 --Press Release-- SEC Investigation 08/10/10 $11.07 Shareholders Meeting 05/16/12 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14
Slide 41: 2013 & Beyond: Our Growth Strategy
--2013 & Beyond— Our Growth Strategy 1Q Results 2013 | cbbank.com
Slide 42: Our Mission
Our Mission 1Q Results 2013 | cbbank.com “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 servi
Slide 43: Five Core Values
1. Financial Strength 2. Superior People 3. Customer Focus 4. Cost Effective Operation 5. Having Fun 1Q Results 2013 | cbbank.com Five Core Values
Slide 44: 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. 1Q Results 2013 | cbbank.com Our Vision
Slide 45: Target Customer
Target Customer 1Q Results 2013 | cbbank.com 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 46: Three Areas of Growth
Acquisitions --Banks-- --Trust-- DeNovo Same Store Sales Three Areas of Growth
Slide 47: 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 Team
Slide 48: 2013 Strategy: Key Objectives
2013 Strategy: Key Objectives
Slide 49: Our 'Critical Few'
Our ‘Critical Few’ • Loan Growth • Expand Credit Product Offerings & Capabilities • Build Core Deposits • Drive Service Charge & Fee Income Growth • Manage Operating Efficiency • Grow Through Acquisition
Slide 50: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com