Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CVB FINANCIAL CORP | d296646d8k.htm |
 February 2012
February 2012
1
Exhibit 99.1 |
 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 operating results. These
forward-looking statements are subject to risks and uncertainties that could
cause actual results, performance or achievements to differ materially from
those projected. These risks and uncertainties include, but are not limited
to, local, regional, national and international economic conditions and events
and the impact they may have on us and our customers; ability to
attract deposits and other sources of
liquidity; oversupply of inventory and continued deterioration in values of
California real estate, both residential and commercial; a prolonged slowdown
in construction activity; changes in the financial
performance and/or condition of our borrowers; changes in the level of
non-performing assets and charge- offs; the effect of changes in laws
and regulations (including laws and regulations concerning taxes, banking,
securities, executive compensation and insurance) with which we and our subsidiaries must
comply; changes in estimates of future reserve requirements based upon the periodic
review thereof under relevant regulatory and accounting requirements;
inflation, interest rate, securities market and monetary fluctuations;
political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the
effects of pandemic flu; the timely development and acceptance of new banking
products and services and perceived overall value of these products and
services by users; changes in consumer spending, borrowing
and savings habits; technological changes; the ability to increase market share and
control expenses; changes in the competitive environment among financial and
bank holding companies and other financial service providers; continued
volatility in the credit and equity markets and its effect on the general
economy; the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Public Company Accounting
Oversight Board, the Financial Accounting Standards Board and other accounting
standard setters; changes in our organization, management, compensation and
benefit plans; the costs and effects of legal and regulatory developments including
the resolution of legal proceedings or regulatory or other governmental
inquiries and the results of regulatory examinations or reviews; our success
at managing the risks involved in the foregoing items and other factors set forth in the
Company's public reports including its Annual Report on Form 10-K for the year
ended December 31, 2010, and particularly the discussion of risk factors
within that document. The Company does not undertake, and specifically
disclaims any obligation to update any forward-looking statements to reflect occurrences or
unanticipated events or circumstances after the date of such statements except as
required by law. 2 |
 3
Total Assets:
$6.5 Billion
Gross Loans:
$3.5 Billion
Total
Deposits
(Including
Repos):
Total Equity:
$715 Million
Source: Q4 2011 earnings release & company filings. *non-covered loans
Largest financial institution headquartered in the Inland Empire
region of
Southern California. Formed in 1974.
Serves 40 cities with 42 business financial centers and 5 commercial banking
centers throughout the Inland Empire, LA County, Orange County and the
Central Valley of California
Average Cost of Deposits = 0.15%
Significant equity ownership board of directors: approximately 16%
$5.1
Billion |
 4
Name
Position
Banking
Experience
CVBF
Service
Christopher D. Myers
President & CEO
27 Years
5 Years
Richard C. Thomas
Executive Vice President
Chief Financial Officer
2 Years
1 Year
James F. Dowd
Executive Vice President
Chief Credit Officer
35 Years
4 Years
David C. Harvey
Executive Vice President
Chief Operations Officer
22 Years
2 Years
David A. Brager
Executive Vice President
Sales Division
24 Years
9 Years
Chris A. Walters
Executive Vice President
CitizensTrust
25 Years
5 Years
Yamynn DeAngelis
Executive Vice President
Chief Risk Officer
32 Years
24 Years |
 5
|
 6
Rank
Name
Asset Size (12/31/11)
1
Wells Fargo
$1,313,867
2
Union Bank
$89,676
3
Bank of the West
$62,408
4
First Republic Bank
$27,792
5
OneWest Bank*
$27,391
6
City National Bank
$23,666
7
East West Bank
$21,969
8
SVB Financial
$19,969
9
Cathay Bank
$10,645
10
10
CVB Financial Corp
CVB Financial Corp
$6,483
$6,483
11
Pacific Capital Bank
$5,850
12
Pacific Western Bank
$5,528
13
Westamerica Bank
$5,042
14
Farmers & Merchants of Long Beach
$4,659
In millions
In millions
*One West Bank’s asset size is as of 9/30/11 |
 •
139 Consecutive Quarters of Profitability
•
89 Consecutive Quarters of Cash Dividends
•
BauerFinancial Report
–
Five Star Rating (September 2011)
•
Fitch Rating
–
BBB (October 2011)
7 |
 8
|
 9
42 Business Financial Centers
42 Business Financial Centers
5 Commercial Banking Centers
5 Commercial Banking Centers |
 (000’s)
# of Center
Locations
Total Deposits
(12/31/10)
Total Deposits
(12/31/11)
Los Angeles County
17
$1,793,171
$1,872,623
Inland Empire
(Riverside & San Bernardino Counties)
11
$1,529,042
$1,592,445
Central Valley
11
$838,198
$821,994
Orange County
8
$578,570
$598,426
Other
0
$322,035
$228,430
Total
47
$5,061,016
$5,113,918
10
*Includes Customer Repurchase Agreements; full-year average
Average Cost of Deposits (full year)
0.44%
0.21% |
 11
Source:
Q4
2011
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
9/30/2011 |
 (000’s)
Non-Covered
Loans
Covered
Loans*
Total Loans*
%
Los Angeles County
$1,118,619
$15,632
$1,134,251
31.90%
Central Valley
$593,133
$252,072
$845,205
23.77%
Inland Empire
(Riverside & San Bernardino Counties)
$633,881
$2,753
$636,634
17.90%
Orange County
$471,508
$120
$471,628
13.26%
Other
$408,329
$59,835
$468,164
13.17%
Total
$3,225,470
$330,412
$3,555,882
100%
12
*Prior to MTM discount and loan loss reserve |
 (000’s)
*Removed Mortgage Pools and Construction
Adjusted Non-Covered Loans* |
 14
Source: Q4 2011 earnings release & company reports |
*Non-covered loans
Total Loans by Type
Commercial RE
Non-Owner Occupied
38.7%
Consumer
1.6%
SFR Mortgage
5.5%
Municipal Lease Finance Receivables 3.5%
Auto & Equipment 0.5%
Dairy, Livestock & Agribusiness
10.8%
Commercial & Industrial
15.3%
Construction RE 2.4%
Commercial RE
Owner Occupied 21.7% |
 15
(000’s)
Net of Discount |
 16
(000’s) |
 17
|
 18
(000’s) |
 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. Texas Ratio
NPA’s/Loans & OREO
Source: Q4 2011earnings 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 9/30/11
Non-Covered |
 20
|
 21
(000’s)
Net Income After Taxes
Highest in CVBF
History! |
 2007
2008
2009
2010
2011
2011
Net Interest Income
$161,142
$193,679
$222,264
$259,317
$234,681
Provision for Credit Losses
($4,000)
($26,600)
($80,500)
($61,200)
($7,068)
Other Operating
Income/Expenses (Net)
($74,079)
($81,331)
($52,515)
($111,378)
($106,809)
Income Taxes
($22,479)
($22,675)
($23,830)
($23,804)
($39,071)
Net Profit After Tax
$60,584
$63,073
$65,419
$62,935
$81,733
$81,733
22
(000’s) |
 23
|
 24
*Normalized excludes
accelerated accretion on covered loans
Normalized* |
 |
 26
|
 Regulatory
Minimum Ratio
Regulatory
Well-Capitalized
Ratio
September 30, 2011
Tier 1 Risk-based Capital Ratio
4.0%
6.0%
17.6%
Total Risk-based Capital Ratio
8.0%
10.0%
18.8%
Tier 1 Leverage Ratio
4.0%
5.0%
11.2%
Tangible Capital Ratio
4.0%
5.0%
9.9%
Core Tier 1 Capital Ratio
14.8%
27
*12/31/11 ratios should be at or above 9/30/11 numbers. Information will be
available in the 10K filing for 2011 |
 28
Source:
Q3
2011
earnings
release
&
other
company
filings,
SNL
Financial—peers
represent
public
CA
,
AZ,
HI,
NV,
OR
&
WA
banks
with
assets
$2
-
$25
billion
Tier
1
Capital
Ratio
Total
Risk
–
Based
Capital
Ratio
Tangible
Common
Equity/Tangible
Assets |
 29
|
   Source: Q4 2011
earnings release. As of 12/31/2011 securities held-to-maturity were valued at approximately $2.4 million | Yield on securities represents the fully taxable equivalent
*Securities Available For Sale
Securities
portfolio
totaled
$2.2
billion
at
12/31/2011.
The
portfolio
represents
34%
of
the
Bank’s
total
assets
Virtually
all
of
the
Bank’s
mortgage-backed
securities
were
issued
by
Freddie
Mac
or
Fannie
Mae
which
have
the
guarantee
of
the
U.S.
government.
99%
of
the
Bank’s
municipal
portfolio
contains
securities
which
have
an
underlying
rating
of
investment
grade.
California
municipals
represent
only
6
%
of
the
municipal
bond
portfolio
Government Agency &
GSEs
2.1%
MBS
40.3%
CMO
27.5%
Municipal Bonds
29.6%
Yield on securities
portfolio: 3.56%
Trust Preferred
0.5% |
 (000’s)
*Securities Available For Sale |
 32
*Includes overnight funds held at the Federal Reserve, due from Correspondent
Banks, other short-term money market accounts or certificates of deposit
Loans
Securities
Fed Balance*
Other
Goodwill & Intangibles
12/31/11
$6.5 Billion
12/31/06
$6.1 Billion
Securities
Fed Balance*
Goodwill & Intangibles
Other
Loans
4.8% |
 *Includes
Customer Repurchase Agreements |
 34
|
 35
•
The class action lawsuit against CVBF, which sought to draft onto
the SEC's investigation, was dismissed in its entirety by the federal
court in Los Angeles.
However, an amended and restated complaint
by the plaintiffs is possible.
•
In late December 2011, Citizens Business Bank prepaid $100
million in Federal Home Loan Bank (“FHLB”) debt and took a $3.3
million charge.
•
On January 7, 2012, we redeemed trust preferred securities totaling
$6.8 million. These securities were priced at 3-month LIBOR plus
3.25%.
Source: Q4 2011 earnings release & company filings.
Source: Q4 2011 earnings release & company filings. |
 36
|
 Citizens Business Bank will strive to
Citizens Business Bank will strive to
become the dominant financial
become the dominant financial
services company operating
services company operating
throughout the state of California,
throughout the state of California,
servicing the comprehensive financial
servicing the comprehensive financial
needs of successful small to medium
needs of successful small to medium
sized businesses and their owners.
sized businesses and their owners.
37 |
 38
The best
The best
privately-held and/or family-owned
privately-held and/or family-owned
businesses throughout California
businesses throughout California
—
—
Annual revenues of $1-200 million
Annual revenues of $1-200 million
—
—
Top 25% in their respective industry
Top 25% in their respective industry
—
—
Full relationship
Full relationship
banking
banking
—
—
Build 20-year relationships
Build 20-year relationships |
 39
Acquisitions
--Banks--
--Trust-- |
 •
Conventional M&A
•
Target size: $300 million to $3 billion in assets
•
Financial & Strategic
•
In-market and/or adjacent geographic market
(California only)
40
--Banks--
--Trust/Investment--
•
Target size: AUM of $300 million to $1.5 billion
•
In California |
 •
•
Quality Loan Growth
Quality Loan Growth
•
•
Non-Interest Bearing Deposit Growth
Non-Interest Bearing Deposit Growth
•
•
Non-Interest Income Growth
Non-Interest Income Growth
•
•
Expense Control
Expense Control
•
•
Grow Through Acquisition
Grow Through Acquisition
41 |
 42
Our Strategic Focus
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-term outlook |
 Copy of Presentation: www.cbbank.com
Copy of Presentation: www.cbbank.com
43 |