Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CVB FINANCIAL CORP | d634624d8k.htm |
 3Q
Results 2013 | cbbank.com December 2013
Exhibit 99.1 |
 3Q
Results 2013 | cbbank.com 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
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;
supply
and
demand
for
real
property
inventory
and
periodic
deterioration
in
values
of
California
real
estate,
both
residential
and
commercial;
a
prolonged
slowdown
or
decline
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
cost
or
effect
of
acquisitions
we
may
make;
the
effect
of
changes
in
laws
and
regulations
(including
laws,
regulations
and
judicial
decisions
concerning
financial
reform,
taxes,
banking
capital
levels,
securities,
employment,
executive
compensation,
insurance
and
information
security)
with
which
we
and
our
subsidiaries
must
comply;
changes
in
estimates
of
future
reserve
requirements
and
minimum
capital
requirements
based
upon
the
periodic
review
thereof
under
relevant
regulatory
and
accounting
requirements,
including
changes
in
the
Basel
Committee
framework
establishing
capital
standards
for
credit,
operations
and
market
risk;
inflation,
interest
rate,
securities
market
and
monetary
fluctuations;
changes
in
government
interest
rate
or
monetary
policies;
changes
in
the
amount
and
availability
of
deposit
insurance;
cyber-security
threats
including
loss
of
system
functionality
or
theft
or
loss
of
Company
or
customer
data;
political
instability;
acts
of
war
or
terrorism,
or
natural
disasters,
such
as
earthquakes,
or
the
effects
of
pandemic
diseases;
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
and
the
expanding
use
of
technology
in
banking
(including
the
adoption
of
mobile
banking
applications);
the
ability
to
retain
and
increase
market
share,
retain
and
grow
customers
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
or
local
business
conditions;
fluctuations
in
the
price
of
the
Company’s
stock;
the
effect
of
changes
in
accounting
policies
and
practices,
as
may
be
adopted
from
time-to-time
by
the
regulatory
agencies,
as
well
as
by
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,
and
our
ability
to
retain
or
expand
our
management
team
and/or
our
board
of
directors;
the
costs
and
effects
of
legal
and
regulatory
developments,
including
the
resolution
of
legal
proceedings
or
regulatory
or
other
governmental
inquiries
or
investigations
and
the
results
of
regulatory
examinations
or
reviews;
our
success
at
managing
the
risks
involved
in
the
foregoing
items
and
all
other
factors
set
forth
in
the
Company's
public
reports
including
its
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2012,
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 |
 3Q
Results 2013 | cbbank.com 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
Southern California. Founded in 1974.
Serves 40 cities with 39 business financial centers and 6 commercial banking
centers and 3 trust office locations throughout the Inland Empire, LA County,
Orange County and the Central Valley of California
Average Cost of Deposits = 0.10%
3 |
 3Q
Results 2013 | cbbank.com 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
Executive Vice President
Chief Operations Officer
24 Years
4 Years
David A. Brager
Executive Vice President
Sales Division
26 Years
11 Years
R. Daniel Banis
Executive Vice President
CitizensTrust
31 Years
1 Year
Yamynn DeAngelis
Executive Vice President
Chief Risk Officer
34 Years
26 Years
Richard Wohl
Executive Vice President
General Counsel
25 Years
2 Years
4 |
 3Q
Results 2013 | cbbank.com Board of Directors
Name
CVB Experience
Age
Ronald Kruse -
Chairman
38 Years
74
Linn Wiley -
Vice Chairman
21 Years
75
George Borba Jr.
1 Year
46
Steve Del Guercio
1 Year
52
Robert Jacoby
7 Years
72
Ray O’Brien
1 Year
56
San Vaccaro
13 Years
80
Chris Myers -
CEO
7 Years
51
5 |
 3Q
Results 2013 | cbbank.com Who is CVB Financial Corp
|
 3Q
Results 2013 | cbbank.com Largest Banks Headquartered in California
7
Source: SNL Financial
Rank
Name
Asset Size (9/30/13)
1
Wells Fargo
$1,488,055
2
Union Bank
$105,484
3
Bank of the West
$65,084
4
First Republic Bank
$40,951
5
City National Bank
$29,059
6
East West Bank
$24,499
7
OneWest Bank
$24,222
8
SVB Financial
$23,741
9
Cathay Bank
$10,821
10
CapitalSource Inc.
$8,755
11
Pacific Western Bank
$6,617
12
12
CVB Financial Corp
CVB Financial Corp
$6,557
$6,557
13
BBCN
$6,341
14
Farmers & Merchants of Long Beach
$5,145
15
Westamerica Bank
$4,806
In millions
In millions |
 3Q
Results 2013 | cbbank.com 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) |
 3Q
Results 2013 | cbbank.com Our Markets |
 3Q
Results 2013 | cbbank.com Existing Locations
10
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 |
 3Q
Results 2013 | cbbank.com Deposits*
(000’s)
# of Center
Locations
Total Deposits
(9/30/12)
Total Deposits
(9/30/13)
Los Angeles County
17
$1,962,327
$1,913,762
Inland Empire
(Riverside & San Bernardino Counties)
9
$1,603,850
$1,763,235
Central Valley
11
$830,490
$863,738
Orange County
8
$586,297
$662,013
Other
0
$246,940
$258,621
Total
45
$5,229,904
$5,461,369
*Includes Customer Repurchase Agreements; Balance as of balance sheet date
Average Cost of Deposits (year to date)
0.15%
0.12% |
 3Q
Results 2013 | cbbank.com Non-Interest Bearing Deposits
|
 3Q
Results 2013 | cbbank.com Deposit Cost Comparison
13
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. |
 3Q
Results 2013 | cbbank.com Total Loans*
as of 9/30/2013
(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
$262,259
$10,245
$272,504
7.86%
Total
$3,290,471
$177,863
$3,468,334
100%
*Prior to MTM discount, loan fees and loan loss reserve (Includes loans Held for
Sale) |
 3Q
Results 2013 | cbbank.com Total Non-Covered Loans
Net of deferred fees |
 3Q
Results 2013 | cbbank.com 16
Source: Q3 2013 earnings release & company reports |Covered & Non Covered
Loan Portfolio Composition
Total Loans by Type
Total Loans by Type |
 3Q
Results 2013 | cbbank.com New/Enhanced Lending Initiatives
•
Residential Real Estate
•
Multi-Family
•
Asset Based Lending
17 |
 3Q
Results 2013 | cbbank.com Other Lending Areas
For Future Consideration/Expansion
•
Residential and Commercial Construction
•
Medical Equipment/Office
•
Equipment Lending & Leasing
•
Private Banking
18 |
 3Q
Results 2013 | cbbank.com 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 |
 3Q
Results 2013 | cbbank.com Non-Performing Assets
Non-Covered
20 |
 3Q
Results 2013 | cbbank.com Classified Loans
Non-Covered
21 |
 3Q
Results 2013 | cbbank.com Profits |
 3Q
Results 2013 | cbbank.com Net Income
Net Income After Taxes
$20.4 million FHLB prepayment charge |
 3Q
Results 2013 | cbbank.com Earnings
24 |
 3Q
Results 2013 | cbbank.com Net Interest Margin
25
*Normalized excludes accelerated accretion on covered loans
Normalized* |
 3Q
Results 2013 | cbbank.com Expenses |
 3Q
Results 2013 | cbbank.com Expenses
27
*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
$5,031
$3,669
$4,269
$3,392
Professional Services
$13,308
$15,031
$6,249
$4,299
OREO Expense
$7,490
$6,729
$2,146
$384
Other
$62,195
$36,981
$48,539*
$17,724
Total
$168,492
$141,025
$138,160
$84,760 |
 3Q
Results 2013 | cbbank.com Bank Borrowings |
 3Q
Results 2013 | cbbank.com 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
Outstanding Debt
as of 09/30/2013
29
(000’s)
*FHLB Advance maturity is November, 28 2016. As of 10/23/13,
prepayment penalty was estimated at $22.1 million. |
 3Q
Results 2013 | cbbank.com Capital |
 3Q
Results 2013 | cbbank.com 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%
31 |
 3Q
Results 2013 | cbbank.com Securities & Investments
|
 3Q
Results 2013 | cbbank.com 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 9/30/2013. The portfolio
represents 39.9% 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 implied guarantee of the U.S.
government. 98% of the Bank’s municipal portfolio contains securities
which have an underlying rating of investment grade. California municipals
represent only 4% of the municipal bond portfolio
Securities Portfolio*
--$2.62 Billion-- |
 3Q
Results 2013 | cbbank.com Securities Portfolio*
$2.62 Billion
Mark-to-Market (Pre-tax) (000’s)
*Securities Available For Sale |
 3Q
Results 2013 | cbbank.com CVBF Assets
35
*Includes overnight funds held at the Federal Reserve, Interest earning -
due from Correspondent Banks, other short-term money market
accounts or certificates of deposit |
 3Q
Results 2013 | cbbank.com Yield on Securities vs. Yield on Loans
*Excluding Discount Accretion |
 3Q
Results 2013 | cbbank.com CVBF Liabilities
*Includes Customer Repurchase Agreements
12/31/06
$5.7 Billion
9/30/13
$5.8 Billion |
 3Q
Results 2013 | cbbank.com Our Growth Strategy |
 3Q
Results 2013 | cbbank.com 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.
39 |
 3Q
Results 2013 | cbbank.com 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
40 |
 3Q
Results 2013 | cbbank.com Three Areas of Growth
41 |
 3Q
Results 2013 | cbbank.com •
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’
markets |
 3Q
Results 2013 | cbbank.com 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 |
 3Q
Results 2013 | cbbank.com Copy of presentation at
|