CVB Financial Corporation · NASDAQ:CVBF
CVB Financial — Investor Presentation (May 2013)
47 slides from CVB Financial's investor presentation, May 7, 2013
Slide 1: May 2013 Exhibit 99.1
May 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) 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 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 3 Years 2 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. New Steve Del Guercio New Robert Jacoby 7 Years Ray O’Brien New 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
11 CVB Financial Corp. $6,363 Largest Banks Headquartered in California Source: SNL Financial Rank Name Asset Size (12/31/12) Wells Fargo $1,442,968 Union Bank $96,992 Bank of the West $63,343 First Republic Bank $34,388 City National Bank $28,618 OneWest Bank $25,894 SVB Financial $22,766 East West
Slide 8: 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 9: CVB Financial Corp.
CVB Financial Corp.
Slide 10: Existing Locations
Existing Locations 40 Business Financial Centers 5 Commercial Banking Centers 3 CitizensTrust Locations
Slide 11: Deposits by Region
Deposits* (000’s) # of Center Locations Total Deposits (3/31/12) Total Deposits (3/31/13) Los Angeles County $1,932,495 $1,818,916 Inland Empire (Riverside & San Bernardino Counties) $1,617,447 $1,698,844 Central Valley $817,461 $834,170 Orange County $545,356 $572,867 Other $244,916 $261,479 Total
Slide 12: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits
Slide 13: Deposit Cost Comparison
Deposit Cost Comparison Source: Q1 2013 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 12/31/12
Slide 14: Total Loans by Region
(000’s) Non- Covered Loans* Covered Loans* Total Loans* % Los Angeles County $1,198,804 $14,194 $1,212,998 35.71% Central Valley $646,987 $173,133 $820,120 24.15% Inland Empire (Riverside & San Bernardino Counties) $601,204 $1,034 $602,238 17.73% Orange County $455,543 $0 $455,543 13.41% Other $294,
Slide 15: Loan balances chart
3,800,000 3,600,000 b3,400,000 53,200,000 $3,000,000 $2,800,000 92,600,000. 2,400,000 2,200,000 2,000,000. (000's) | l tl ll @3 sl a4] al EG laa al EE laa a1 | sz sls al 2013
Slide 16: Loan Portfolio Composition
Loan Portfolio Composition* Total Loans by Type 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 • SBA 7A • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking
Slide 19: Total Covered Loans
Total Covered Loans Net of Discount Net of Discount Includes Loans Held for Sale
Slide 20: Non-Performing Assets Non-Covered
Non-Performing Assets Non-Covered
Slide 21: Loan Loss Allowance/Charge-Offs
Loan Loss Allowance/ Charge-Offs --Non-Covered--
Slide 22: Classified Loans Non-Covered
Classified Loans Non-Covered
Slide 23: CVB Financial Corp.
CVB Financial Corp.
Slide 24: Net Income
Net Income $20.4 million FHLB prepayment charge
Slide 25: 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 26: Net Interest Margin
Net Interest Margin *Normalized excludes accelerated accretion on covered loans
Slide 27: CVB Financial Corp.
CVB Financial Corp.
Slide 28: Expenses
Expenses *Includes $20.4 million FHLB prepayment charge (000’s) 3 Months to 3/31/2013 Salaries & Employee Benefits $69,419 $69,993 $68,496 $17,300 Promotion & Entertainment $6,084 $4,977 $4,869 $1,258 Supplies $3,314 $2,558 $2,212 $653 Software Licenses & Maintenance $5,031 $3,669 $4,269 $1,152 Prof
Slide 29: CVB Financial Corp.
CVB Financial Corp.
Slide 30: Debt Repayment Activity
Type of Debt Payoff Date Amount Weighted Average Interest Rate Subordinated Debentures 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 (000’s)
Slide 31: Outstanding Debt as of 4/30/2013
Outstanding Debt* as of 4/30/2013 Type of Debt Balance at 4/30/2013 Interest Rate FHLB Advance $199,002 4.52% Fixed Other Borrowings (overnight) $0 Subordinated Debentures CVB Statutory Trust III $25,774 3-Month LIBOR + 1.38% Total $224,776 (000’s)
Slide 32: CVB Financial Corp.
CVB Financial Corp.
Slide 33: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio December 31, 2012* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.23% Total Risk-based Capital Ratio 8.0% 10.0% 19.49% Tier 1 Leverage Ratio 4.0% 5.0% 11.50% Tangible Capital Ratio 4.0% 5.0% 11.17% Core Tier 1 Capital Ratio 16.60% Capital Rati
Slide 34: Peer Capital Metrics
Source: Q4 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 35: Securities & Investments
Securities & Investments
Slide 36: Securities Portfolio $2.39 Billion
Securities Portfolio* --$2.39 Billion-- Source: Q1 earnings release. As of 3/31/2013 securities held-to-maturity were valued at approximately $2.0 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.39 billion at 3/31/2
Slide 37: Securities Portfolio Mark-to-Market
Securities Portfolio* $2.39 Billion Mark-to-Market (Pre - tax) (000’s) *Securities Available For Sale
Slide 38: 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 39: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans
Slide 40: CVBF Liabilities
CVBF Liabilities *Includes Customer Repurchase Agreements
Slide 41: Our Growth Strategy
Our Growth Strategy
Slide 42: 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 43: 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 44: Same Store Sales / Acquisitions
Same Store Sales Acquisitions ~Banks— —Trust—
Slide 45: Acquisition Strategy
• Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) Acquisition Strategy --Banks-- --Trust/Investment-- • Target size: AUM of $200 million to $1 billion • In California --Banking Teams-- • In- market & ‘new’ mark
Slide 46: 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 47: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com