Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (December 2013)
44 slides from Cvb Financial's investor presentation, Dec 3, 2013
Slide 1: December 2013
December 2013 Exhibit 99.1
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: CVB Financial Corp (CVBF)
Total Assets: $6.6 Billion Gross Loans: $3.4 Billion Total Deposits (Including Repos): $5.5 Billion Total Equity: $768 Million Source: Q3 2013 earnings release & company filings. *non-covered loans CVB Financial Corp (CVBF) Largest financial institution headquartered in the Inland Empire region of S
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 29 Years 7 Years Richard C. Thomas Executive Vice President Chief Financial Officer 4 Years 3 Years James F. Dowd Executive Vice President Chief Credit Officer 36 Years 5 Years David C. Harvey E
Slide 5: Board of Directors
Board of Directors Name CVB Experience Age Ronald Kruse - Chairman 38 Years Linn Wiley - Vice Chairman 21 Years George Borba Jr. 1 Year Steve Del Guercio 1 Year Robert Jacoby 7 Years Ray O’Brien 1 Year San Vaccaro 13 Years Chris Myers - CEO 7 Years
Slide 6: Who is CVB Financial Corp
Who is CVB Financial Corp
Slide 7: Largest Banks Headquartered in California
12 CVB Financial Corp $6,557 Largest Banks Headquartered in California Source: SNL Financial Rank Name Asset Size (9/30/13) Wells Fargo $1,488,055 Union Bank $105,484 Bank of the West $65,084 First Republic Bank $40,951 City National Bank $29,059 East West Bank $24,499 OneWest Bank $24,222 SVB Finan
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 146 Consecutive Quarters of Profitability 96 Consecutive Quarters of Cash Dividends #8 Rated Bank BankDirector Magazine Bank Performance Scorecard (August 2013) BauerFinancial Report Five Star Rating (July 2013) Fitch Rating BBB (September 2013)
Slide 9: CVB Financial Corp.
CVB Financial Corp.
Slide 10: Existing Locations
Existing Locations 39 Business Financial Centers 6 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego Opening February 2014
Slide 11: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (9/30/12) Total Deposits (9/30/13) Los Angeles County $1,962,327 $1,913,762 Inland Empire (Riverside & San Bernardino Counties) $1,603,850 $1,763,235 Central Valley $830,490 $863,738 Orange County $586,297 $662,013 Other $246,940 $258,621 Total
Slide 12: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q3 2013 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion.
Slide 14: Total Loans by Region
(000’s) Non- Covered Loans* Covered Loans* Total Loans* % Los Angeles County $1,242,392 $10,580 $1,252,972 36.13% Central Valley $689,656 $156,076 $845,732 24.38% Inland Empire (Riverside & San Bernardino Counties) $605,779 $962 $606,741 17.49% Orange County $490,385 $0 $490,385 14.14% Other $262,25
Slide 15: Total Non-Covered Loans
Total Non-Covered Loans Net of deferred fees
Slide 16: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Source: Q3 2013 earnings release & company reports |Covered & Non Covered Total Loans by Type
Slide 17: New/Enhanced Lending Initiatives
New/Enhanced Lending Initiatives • Residential Real Estate • Multi-Family • Asset Based Lending
Slide 18: Other Lending Areas
Other Lending Areas For Future Consideration/Expansion • Residential and Commercial Construction • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking
Slide 19: Total Covered Loans
Total Covered Loans (000’s) Net of Discount Net of Discount $184 million $184 million $14.5 million $14.5 million Includes Loans Held for Sale
Slide 20: Non-Performing Assets Non-Covered
Non-Performing Assets Non-Covered
Slide 21: Classified Loans Non-Covered
Classified Loans Non-Covered
Slide 22: CVB Financial Corp.
CVB Financial Corp.
Slide 23: Net Income
Net Income Net Income After Taxes $20.4 million FHLB prepayment charge
Slide 24: Net Interest Income
(000's) Net Interest Income Provision for Loan Losses Other Operating Income/Expenses (Net) Income Taxes Net Profit After Tax 2009 $222,264 ($80,500) ($52,515) ($23,830) $65,419 9? Months to 2010 2011 2012 9/30/2013 $259,317 $234,681 $236,950 $161,157 ($61,200) ($7,068) 0) ($9,950) ($111,378) ($106,
Slide 25: Net Interest Margin
Net Interest Margin *Normalized excludes accelerated accretion on covered loans Normalized*
Slide 26: CVB Financial Corp.
CVB Financial Corp.
Slide 27: Expenses
Expenses *Includes $20.4 million FHLB prepayment charge (000’s) 2010 2011 2012 9 Months to 9/30/2013 Salaries & Employee Benefits $69,419 $69,993 $68,496 $52,777 Promotion & Entertainment $6,084 $4,977 $4,869 $3,503 Stationary & Supplies $4,965 $3,645 $3,592 $2,681 Software Licenses & Maintenance $5
Slide 28: CVB Financial Corp.
CVB Financial Corp.
Slide 29: Outstanding Debt as of 09/30/2013
Outstanding Debt as of 09/30/2013 Type of Debt Balance at 09/30/2013 Interest Rate FHLB Advance* $199,070 4.52% Fixed Other Borrowings (overnight) $0 Subordinated Debentures CVB Statutory Trust III $25,774 3-Month LIBOR + 1.38% Total $224,844 (000’s) *FHLB Advance maturity is November, 28 2016. As o
Slide 30: CVB Financial Corp.
CVB Financial Corp.
Slide 31: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio September 30, 2013* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 17.87% Total Risk-based Capital Ratio 8.0% 10.0% 19.13% Tier 1 Leverage Ratio 4.0% 5.0% 11.44% Tangible Capital Ratio 10.93 % Core Tier 1 Capital Ratio 17.26% Capital Ratios
Slide 32: Securities & Investments
Securities & Investments
Slide 33: Securities Portfolio $2.62 Billion
Securities Portfolio* --$2.62 Billion-- Source: Q3 2013 earnings release. As of 9/30/2013 securities held-to-maturity were valued at approximately $1.8 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.62 billion at 9
Slide 34: Securities Portfolio
Securities Portfolio* $2.62 Billion Mark-to-Market (Pre - tax) (000’s) *Securities Available For Sale
Slide 35: CVBF Assets
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
Slide 36: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans *Excluding Discount Accretion
Slide 37: CVBF Liabilities
CVBF Liabilities *Includes Customer Repurchase Agreements 12/31/06 $5.7 Billion 9/30/13 $5.8 Billion
Slide 38: Our Growth Strategy
Our Growth Strategy
Slide 39: 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.
Slide 40: Target Customer
Target Customer 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 41: Same Store
Same Store Sales Acquisitions --Banks— —Trust-
Slide 42: 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 43: 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 44: CVB Financial Corp.
CVB Financial Corp. www.cbbank.com
CVB Financial — Investor Presentation (December 2013) on 6ix