Cvb Financial Corporation · NASDAQ:CVBF
Cvb Financial — Investor Presentation (May 2010)
42 slides from Cvb Financial's investor presentation, May 12, 2010
Slide 1: CVB Financial Corp. May 2010
CVB Financial Corp. May 2010
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 plan and expectations regarding future op
Slide 3: Operating and financial highlights
3 Total Assets: $6.8 Billion Gross Loans: $3.9 Billion Total Deposits (Including Repos): $5.1 Billion Tang. Common Equity: $586 Million Market Capitalization: $1.1 Billion Source: Q1 2010 earnings release & company filings; Texas Ratio = (NPA's + 90 days delinquent) / (Reserves + Tang. Common Equity
Slide 4: Executive management and board ownership
4 Significant equity ownership among executive management and board of directors Total Board: 15.42%, Total Board plus 'retired' directors: 23.48% Borba family: 12.63% Edward J. Biebrich Jr. Executive Vice President 28 Years 12 Years Chief Financial Officer Todd E. Hollander Executive Vice President
Slide 5: Who is CVB Financial?
Who is CVB Financial?
Slide 6: California bank rankings by asset size
Rank Name Asset Size (3/31/10) 1 Wells Fargo $1,223,630 2 Union Bank $85,471 3 Bank of the West* $73,814 4 East West Bank $20,299 5 City National Bank $20,066 6 SVB Financial $14,125 7 Cathay Bank $11,870 8 Pacific Capital Bank $7,372 9 CVB Financial Corp $6,789 10 Pacific Western Bank $5,203 11 Wes
Slide 7: Forbes 2010 America's Best Banks
Forbes 2010 America’s Best Banks ($5 Billion @) Total Assets NPLS/Loans Reserves/ Tier 1 Rank Company ($BiL) % NPLS% ——Ratio% [cverinancat | [commun aank S| 5 7 _| Community Bank System 8 _ | Central Bancompany NBT Bancorp 1 International Bancshares
Slide 8: Rankings and awards
Bank Director Magazine (2010) Ranked #9 in the Nation...profitability, capital adequacy & asset quality Forbes Magazine (2010) Ranked #6 in the Nation BauerFinancial Report (2009) '5' Star Rating The Findley Report 19 Consecutive Years - Super Premier Performing Bank Fitch Rating BBB+ (September 200
Slide 9: What are our Markets?
What are our Markets?
Slide 10: Business and commercial banking center locations
10 Commercial Banking Centers Business Financial Centers New Business Financial Centers (SJB) 44 Business Financial Centers 6 Commercial Banking Centers
Slide 11: Centers and deposits by region
(000's) # of Center Locations DDA (3/31/10) Total Deposits (3/31/10) Los Angeles County 13/4 $571,531 $1,682,713 Inland Empire (Riverside & San Bernardino Counties) 11/1 $566,662 $1,790,212 Orange County 8/1 $212,053 $569,352 Central Valley 12/0 $240,596 $789,930 Other 0/0 $7,180 $221,606 Total 44/6
Slide 12: Deposit mix and cost of deposits
12 Source: Q1 2010 earnings release & company filings; core deposits defined as total deposits less jumbo CD's, total deposits does include customer repos The average cost of deposits stands at .48%. This low cost of deposits has helped the Bank expand its net interest margin to 3.96%, compared to 3
Slide 13: Cost of deposits and core deposits vs peers
13 Source: Q1 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion Peer data as of 12/31/09 Source: Q1 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV,
Slide 14: Loans by region
(000's) Covered Loans* % Non-Covered Loans % Los Angeles County $20,480 3.4% $1,151,079 32.7% Inland Empire (Riverside & San Bernardino Counties) $3,199 0.5% $764,922 21.8% Orange County $7,294 1.2% $514,543 14.6% Central Valley $466,589 77.5% $612,110 17.4% Other $104,819 17.4% $474,487 13.5% Total
Slide 15: Total loans by type
15 Geographic diversification, a focus on relationship banking, and a strong credit culture have allowed CVB to mitigate loan losses through this economic downturn CVB has a strong CRE banking team, lending to projects involving apartment buildings, commercial office space and industrial centers Pro
Slide 16: CRE and construction portfolios
16 As of 3/31/2010 CRE loans totaled $1.99 billion, while construction stood at $223.7 million, or 6.4% of total loans. Construction loans totaled $265.4 million at 12/31/09 Of the CRE loans on the balance sheet, 37.1% are owner-occupied $52.4 million of the construction portfolio is related to resi
Slide 17: Real estate loan portfolio
17 As of 3/31/2010 real estate loans totaled $2.2 billion, with the largest allocation going to industrial real estate at $656 million, or 29.2% of RE loans The weighted average owner occupied level for the RE portfolio is approximately 45% CVBF's single family residential portfolio is 100% owner oc
Slide 18: Non-performing assets and credit metrics vs peers
As of 3/31/2010 non-performing assets totaled $92 million, of which $76.8 million and $15.2 million were from non-performing loans and OREO, respectively On a peer comparison basis, CVBF's credit metrics are superior NPA's / Loans & OREO: 2.61% vs. 7.28% for peers (peers as of Q4 09) LLR / NPL's: 14
Slide 19: Texas ratio and NPAs vs peers
19 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. loan losses. loan losses. loan losses. Texas Ratio NPA's/Loans & OREO Source: Q1 2010 earnings release & other compan
Slide 20: Loan loss reserves to non-performing loans
Loan Loss Reserves to Non-Performing Loans* 160% 156% 155% 150% 145% 140% 135% 130% 150% 146% | 146% 125% + Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q12010 “ “*Non-covered Loans
Slide 21: Profits
Profits
Slide 22: Net income after taxes
22 (000's) Net Income After Taxes All-time High
Slide 23: Earnings items excluded
23 *Gains (Loss) on Securities, FHLB Prepay Fees, Gain on SJB, Provision For Unfunded Commitments & Provision for Loan Losses
Slide 24: ROA, ROE and net interest margin vs peers
24 24 Return on Average Assets Return on Average Tangible Equity Net Interest Margin Source: Q1 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion. Peer data as of 12/31/09
Slide 25: Capital
Capital
Slide 26: Capital ratios vs peers
26 Source: Q1 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV, OR & WA banks with assets $2 - $22 billion Peer data as of 12/31/09 Source: Q1 2010 earnings release & other company filings, SNL Financial-peers represent select public CA , HI, NV,
Slide 27: Securities/Investments
Securities/Investments
Slide 28: Securities available for sale
28 Source: Q1 2010 earnings release. As of 3/31/2010 securities held-to-maturity were valued at approximately $3.5 million Yield on securities represents the fully taxable equivalent Securities Available For Sale Securities portfolio totaled $2.1 billion at 3/31/2010. During 2009, the Bank sold secu
Slide 29: Investment portfolio mark to market
Investment Portfolio: (000's) $2.1 Billion --Mark to Market— $100,000 (Pre-Tax) $82,480 $80,000 $60,000 $58,043 $58,178 sas023 $47,439 $2,197 $47,154 ‘$40,000 _ $20,000 $7,120 | so ll $2000 a 100 -$40,000 4 1 331 Dec-07 _Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
Slide 30: Transitioning from a Community Bank to a Regional Bank
Transitioning from a Community Bank to a Regional Bank 30
Slide 31: Vision for Citizens Business Bank
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. 31
Slide 32: Target customer profile
32 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 33: Acquisitions - Banks - Trust
33 Acquisitions - --Banks-- - --Trust- - -
Slide 34: Quarterback strategy: products and services
34 34 Relationship Manager (Bank) Property Management Real Estate Banking International Treasury Services Specialty Banking Construction Lending CitizensTrus t Bankcard SBA Citizens Home Loans Mortgage Brokerage Title Escrow Marketing Citizens Financial Services Government Services Deposit Services
Slide 35: Business lines and delivery centers
35 Business Financial Centers (44) Commercial Banking Centers (6) Specialty Banking Group (Title, Escrow, Property Management, Non-Profits) Real Estate Banking Group (SBA, Residential Mortgage, Brokerage) Construction Lending Citizens Financial Services (Equipment & Vehicle Leasing) Dairy & Livestoc
Slide 36: Wealth management strategy
36 - --Strategy-- Build infrastructure via new leadership Chris Walters, EVP Sean Kraus, SVP & Chief Investment Officer Build infrastructure via expanded product offerings Open architecture Life Insurance/Annuities, etc. 401K/Pension Acquire Registered Investment Advisors
Slide 37: De novo team acquisitions
“DeNovo” --Team Acquisitions-- As of 3/31/10 Specialty Banking Group January 2008 $123,904 San Fernando Valley CBC June 2008 $37,811 Inland Empire CBC July 2008 $19,370 South Bay CBC August 2008 $38,281 Burbank CBC: Produce January 2008 $10,760 Orange County CBC December 2009 $6 Los Angeles CBC Janu
Slide 38: Bank acquisitions
Bank Name Date Acquired Geographic Market # of Locations Total Assets (3/31/10) First Coastal Bank June 2007 South Bay 4 /3 $127,268 San Joaquin Bank October 2009 Kern County 5/4 $459,344 (000's) Total: $586,612 * *Net of MTM Discount
Slide 39: CVBF deposit growth
CVBF Deposit Growth $1,363,411 9 $3: 31 Savings/MMD. $896,988 $1,223,217 Time De S $827,978 $1,224,073 Total Deposits $3,406,808 $4,518,599 Customer Repurchase Agreements $94,350 $535,214 Total Deposits & Customer Repurchases $3,501,158 $5,053,813
Slide 40: CVBF balance sheet
CVBF Balance Sheet {in millions) 12/31/06. 3/31/10 Total Assets $6,092 Total Dep: includes REPO’s ceo Total Loans* $3,950 Securitie: $2,077 Borrowings 4 $907 Loan Loss Reserves/Loa Tier 1 Tangible Ratio Tier 1 Leverage Ratio Total Risk Based Capital “Covered and Non-Covered,
Slide 41: Strategic priorities
41 Capital and strong Loan Loss Reserves are paramount Strong, disciplined credit underwriting/credit culture Drive low-cost deposits Multiple forms of growth (don't depend on one) Same Store Sales DeNovo Acquisitions Control our destiny; 'earn' independence from the government Focus on relationship
Slide 42: Thank you!
Thank you! Copy of Presentation: jeschaap@cbbank.com