Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (July 2012)
44 slides from Cvb Financial's investor presentation, Jul 30, 2012
Slide 1: CVB Financial Corp. July 2012
Exhibit 99.1 July 2012
Slide 2: Forward-looking statements
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 regarding future o
Slide 3: CVB Financial Corp. (CVBF) at a glance
3 Total Assets: $6.5 Billion Gross Loans: $3.4 Billion Total Deposits (Including Repos): $5.2 Billion Total Equity: $748 Million Source: Q2 2012 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Foun
Slide 4: Experienced Leadership
4 Name Position Banking Experience CVBF Service Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 28 Years 6 Years Richard C. Thomas Executive Vice President Chief Financial Officer 3 Years 2 Years James F. Dowd Executive Vice President Chief C
Slide 5: CVB Financial Corp.
CVB Financial Corp.
Slide 6: Largest Banks Headquartered in California
Rank Name Asset Size (3/31/12) Largest Banks Headquartered in California In millions Wells Fargo $1,333,799 Union Bank $92,323 Bank of the West $62,343 First Republic Bank $29,719 OneWest Bank $25,010 City National Bank $24,038 East West Bank $21,750 SVB Financial $20,818 Cathay Bank $10,557 CVB Fin
Slide 7: Bank Accomplishments & Ratings
• 141 Consecutive Quarters of Profitability • 91 Consecutive Quarters of Cash Dividends • #11 Forbes Magazine Best Banks (December 2011) • BauerFinancial Report Five Star Rating (March 2012) • Fitch Rating BBB (October 2011) Bank Accomplishments & Ratings • 141 Consecutive Quarters of Profitability
Slide 8: Our Markets
Our Markets Our Markets
Slide 9: Business Financial Centers and Commercial Banking Centers
9 42 Business Financial Centers 5 Commercial Banking Centers 42 Business Financial Centers 5 Commercial Banking Centers Existing Locations
Slide 10: Deposits by Region
(000’s) # of Center Locations Total Deposits (6/30/11) Total Deposits (6/30/12) *Includes Customer Repurchase Agreements Deposits* Los Angeles County $1,858,203 $1,926,234 Inland Empire (Riverside & San Bernardino Counties) $1,631,031 $1,652,751 Central Valley $751,190 $792,246 Orange County $579,04
Slide 11: Non-Interest Bearing Deposits
(000’s) Non-Interest Bearing Deposits
Slide 12: Deposit Cost Comparison
12 Source: Q2 2012 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 3/31/12 Deposit Cost Comparison 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1
Slide 13: Service Charge Income
6 Months 6/30/11 6 Months 6/30/12 % Change *Includes Customer Repurchase Agreements Service Charge Income* Service Charges on Deposit Accounts $7,751,943 $8,191,960 5.68% Service Charges/Total Deposits (Annualized) 0.31% 0.32% Average Cost of Deposits 0.24% 0.16%
Slide 14: Loans by Region
(000’s) Non-Covered Loans* Covered Loans* Total Loans* % *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale) as of 6/30/2012 Total Loans* Los Angeles County $1,153,762 $14,777 $1,168,539 34.07% Central Valley $599,848 $214,156 $814,004 23.73% Inland Empire (Riverside & San Be
Slide 15: Total Non-Covered Loans
(000’s) *Removed Mortgage Pools and Construction Loans Adjusted Non-Covered Loans* $515 million $188 million Total Non-Covered Loans $3,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 $3,200,000 $3,400,000 $3,600,000 Q3 2009 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 *
Slide 16: Total Loans by Type
Source: Q2 2012 earnings release & company reports | *Non-covered loans Total Loans by Type Commercial RE Non-Owner Occupied 39.5% Consumer 1.5% SFR Mortgage 5.0% Municipal Lease Finance Receivables 3.4% Auto & Equipment 0.5% Dairy, Livestock & Agribusiness 9.1% Commercial & Industrial 16.5% Constru
Slide 17: Total Covered Loans
(000’s) Net of Discount $184 million $36.5 million Includes Loans Held for Sale Total Covered Loans $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q4 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2
Slide 18: Non-Performing Assets Non-Covered
Non-Performing Assets Non-Covered
Slide 19: Loan Loss Allowance/Charge-Offs
Loan Loss Allowance/ Charge-Offs -- Non - Covered --
Slide 20: Classified Loans Non-Covered
Classified Loans Non-Covered
Slide 21: Superior Credit Quality
CVBF’s strong loan underwriting culture has limited its exposure to problem credits Continued profitability has allowed CVB to build its capital base and reserves for loan losses. Superior Credit Quality Texas Ratio NPA’s/Loans & OREO Source: Q2 2012 earnings release & other company filings, SNL Fin
Slide 22: CVB Financial Corp.
CVB Financial Corp.
Slide 23: Net Income After Taxes
(000’s) Net Income After Taxes $23.6 Million Net Income Net Income After Taxes $23.6 Million
Slide 24: Earnings
2008 2009 2010 2011 Six Months to 6/30/2012 (000’s) Earnings Net Interest Income $193,679 $222,264 $259,317 $234,681 $121,562 Provision for Credit Losses ($26,600) ($80,500) ($61,200) ($7,068) $0 Other Operating Income/Expenses (Net) ($81,331) ($52,515) ($111,378) ($106,809) ($51,613) Income Taxes (
Slide 25: Net Interest Margin
*Normalized excludes accelerated accretion on covered loans Normalized* Net Interest Margin Normalized*
Slide 26: Peer Profitability Metrics
Source: Q2 2012 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 3/31/12 Net Interest Margin Return on Average Assets Return on Average Tangible Equity Peer Profitability Metrics
Slide 27: CVB Financial Corp.
CVB Financial Corp.
Slide 28: $66,950 $5,285 $2,260 $3,978 $6,845 $1,299 $29,815 $116,432
$66,950 $5,285 $2,260 $3,978 $6,845 $1,299 $29,815 $116,432
Slide 29: CVB Financial Corp.
CVB Financial Corp.
Slide 30: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2012 30 Capital Ratios Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.18% Total Risk-based Capital Ratio 8.0% 10.0% 19.44% Tier 1 Leverage Ratio 4.0% 5.0% 11.35% Tangible Capital Ratio 4.0% 5.0% 10.38% Core Tier 1 Capital Ratio 15.57
Slide 31: Peer Capital Metrics
31 Source: Q1 2012 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
Slide 32: Securities/Investments
Securities/Investments Securities/Investments
Slide 33: Securities Portfolio $2.3 Billion
Source: Q2 2012 earnings release. As of 06/30/2012 securities held-to-maturity were valued at approximately $2.2million | Yield on securities represents the fully taxable equivalent Securities portfolio totaled $2.3 billion at 6/30/2012. The portfolio represents 34.7% of the Bank’s total assets Virt
Slide 34: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.3 Billion Mark-to-Market (Pre-tax) (000’s) $75,145 MBS & CMO’s $32,613 Municipal Bonds $42,323 Other Securities $209 *Securities Available For Sale $75,145 Municipal Bonds $42,323 Other Securities $209
Slide 35: CVBF Assets
*Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit CVBF Assets
Slide 36: CVBF Liabilities
12/31/06 $5.7 Billion 6/30/12 $5.8 Billion TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements CVBF Liabilities
Slide 37: Our Growth Strategy
Our Growth Strategy Our Growth Strategy
Slide 38: 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. 38 Our Vision Citizens Business Bank will strive to become t
Slide 39: Target Customer
39 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 Target Customer The best privately-held and/or family-owned businesses throughout Calif
Slide 40: Three Areas of Growth
40 Acquisitions --Banks-- --Trust-- Same Store Sales DeNovo Three Areas of Growth Acquisitions Same Store Sales DeNovo
Slide 41: Acquisition Strategy
• Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) • Target size: AUM of $200 million to $1 billion • In California • In- market & ‘new’ markets Acquisition Strategy • Target size: $200 million to $2 billion in
Slide 42: Our 'Critical Few'
• Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition Our ‘Critical Few’ • Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition
Slide 43: 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-ter
Slide 44: CVB Financial Corp.
Copy of Preseniation: ecrvi mw) WWW. Cobank.com CVB Financial Corp.