Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CVB FINANCIAL CORP | d731838d8k.htm |
 1Q
Results 2014 | cbbank.com 39
th
Annual
Shareholders
Meeting
May
22
nd
2014
Exhibit 99.1 |
 1Q
Results 2014 | cbbank.com Safe Harbor
2
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 result 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, 2013, 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.
|
 1Q
Results 2014 | cbbank.com Senior Leadership Team
Name
Position
Banking Experience
CVBF Service
Christopher D. Myers
President & CEO
30 Years
8 Years
Richard C. Thomas
Executive Vice President
Chief Financial Officer
4 Years
3 Years
James F. Dowd
Executive Vice President
Chief Credit Officer
37 Years
6 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
32 Years
2 Years
Yamynn De Angelis
Executive Vice President
Chief Risk Officer
35 Years
27 Years
Richard Wohl
Executive Vice President
General Counsel
26 Years
3 Years
Elsa Zavala
Executive Vice President
Chief Information Officer
34 Years
21 Years
Larry Zivelonghi
Executive Vice President
Dairy & Livestock Industries Group
34 Years
21 Years
3 |
 1Q
Results 2014 | cbbank.com Senior Leadership Team
Name
Position
Banking Experience
CVBF Service
Ted Dondanville
Senior Vice President
Senior Lender
32 Years
16 Years
Hector Gutierrez
Senior Vice President
Deputy Chief Credit Officer
32 Years
3 Years
David Krebs
Senior Vice President
Human Resources
20 Years
11 Years
James Mead
Senior Vice President
Region Manager (Inland Empire)
39 Years
21 Years
Michael Mulcahy
Senior Vice President
Region Manager (Los Angeles)
36 Years
7 Years
Tim Noone
Senior Vice President
Specialty Banking
31 Years
6 Years
Mark Richardson
Senior Vice President
Real Estate Banking Group
24 Years
20 Years
Paul Rodeno
Senior Vice President
Region Manager (San Diego)
31 Years
1 Year
Michael Stain
Senior Vice President
Region Manager (Central Valley)
33 Years
1 Year
Ondar Tarlow
Senior Vice President
The Marketing Group
8 Years
NEW
Average:
Average:
28 Years
28 Years
10 Years
10 Years
4 |
 1Q
Results 2014 | cbbank.com Senior
Managers
Steven Caseldine
SVP -
Corona Manager
Francene LaPoint
SVP -
Controller
Ken Clark
SVP -
Riverside Manager
Thomas Trine
SVP -
Trust Services Manager
Errol Berman
SVP -
South Bay CBC Manager
Mary Hernandez
SVP -
Specialty Banking Group
Greg Armstrong
SVP -
Upland CBC Manager
John Hillier
SVP -
Specialty Banking Group
Duane Keene
SVP -
Covina Manager
Scott Begin
SVP –
Bakersfield Manager
LaVon Short
SVP -
Treasury Services Manager
Terry Naffziger
SVP -
Asset Based Lending
Sue Haynes
SVP -
Bankcard Services Manager
Vince Gottuso
SVP -
Ontario Airport Manager
Michael Duran
SVP -
Brea Manager
Sundeep Mathur
SVP –
Director of Information Systems
Bill Fehlen
SVP -
International Banking Manager
Neal Newman
SVP -
Burbank CBC Relationship Manager
Frank Rozario
SVP -
Orange County CBC Manager
Ron Fields
SVP -
Chino Manager
5 |
 1Q
Results 2014 | cbbank.com |
    1Q
Results 2014 | cbbank.com Source: Q1 2014 earnings release & company
filings. CVB Financial Corp. (CVBF)
Largest financial institution headquartered in the Inland Empire
region of
Southern California. Founded in 1974.
Locations in 39 cities with 37 business financial centers and 6 commercial
banking centers and 3 trust office locations serving the Inland Empire, LA
County, Orange County, San Diego County and the Central Valley of California
7
Q1 2013
Q1 2014
Total Assets:
$6.3 Billion
$6.9 Billion
Gross Loans:
$3.4 Billion
$3.4 Billion
Total Deposits (Including Repos):
$5.2 Billion
$5.7 Billion
Net Income:
$21.6 Million
$28.7 Million
Total Equity:
$768 Million
$809 Million |
 1Q
Results 2014 | cbbank.com Largest Banks Headquartered in California
8
Rank
Name
Asset Size (3/31/14)
1
Wells Fargo
$1,546,707
2
Union Bank
$107,237
3
Bank of the West
$67,725
4
First Republic Bank
$44,346
5
City National Bank
$29,718
6
SVB Financial
$29,711
7
East West Bank
$27,401
8
OneWest Bank
$21,799
9
Cathay Bank
$11,291
10
CapitalSource Inc.*
$9,100
11
11
CVB Financial Corp.
CVB Financial Corp.
$6,903
$6,903
12
BBCN
$6,668
13
Pacific Western Bank*
$6,518
14
Farmers & Merchants of Long Beach
$5,357
15
Westamerica Bank
$4,921
In millions
In millions
Source: SNL Financial | *CapitalSource merged with Pacific Western Bank (4/7/14)
|
 1Q
Results 2014 | cbbank.com Bank Accomplishments & Ratings
148 Consecutive Quarters of Profitability
98 Consecutive Quarters of Cash Dividends
#8 Rated Bank: BankDirector Magazine
Bank Performance Scorecard (August 2013)
BauerFinancial Report
Five Star Rating (December 2013)
Fitch Rating
BBB (September 2013) |
 1Q
Results 2014 | cbbank.com Our Markets |
 Existing Locations*
11
Corporate Office
Business Financial Centers
Commercial Banking Centers
CitizensTrust
San Diego Opening 2014
3/31/13
3/31/14
Business Financial Centers
40
37
Commercial Banking Centers
5
6
CitizensTrust Locations
3
3 |
 1Q
Results 2014 | cbbank.com Deposits*
(000’s)
# of Center
Locations
Total Deposits
(3/31/13)
Total Deposits
(3/31/14)
Los Angeles County
17
$1,818,916
$1,959,624
Inland Empire
(Riverside & San Bernardino Counties)
9
$1,698,844
$1,948,785
Central Valley
9
$834,170
$870,202
Orange County
8
$572,867
$705,761
Other
0
$261,479
$253,216
Total
43
$5,186,276
$5,737,588
*Includes Customer Repurchase Agreements; Balance as of balance sheet date
Average Cost of Deposits (year to date)
0.12%
0.12%
10.6% |
 1Q
Results 2014 | cbbank.com Non-Interest Bearing Deposits
|
 1Q
Results 2014 | cbbank.com Total Loans*
as of 03/31/2014
*Prior to MTM discount and loan loss reserve (Includes loans Held for Sale)
|
 1Q
Results 2014 | cbbank.com 15
Loan Portfolio Composition
Total Loans by Type
Total Loans by Type
Source: Q1 2014 earnings release & company reports |Covered & Non Covered
|
 1Q
Results 2014 | cbbank.com Total Loans*
*Before deferred loan fees, discount, and loans held for sale
|
 1Q
Results 2014 | cbbank.com 2013 Loan Initiatives
17
Covered and Non-Covered Loans | *Total Loan Growth for Residential RE Direct,
Multifamily and Asset Based Lending |
 1Q
Results 2014 | cbbank.com 2014
New/Enhanced Lending Initiatives
•
Agribusiness
•
Construction Lending
•
Equipment Lending/Leasing
18 |
 1Q
Results 2014 | cbbank.com Profits |
 1Q
Results 2014 | cbbank.com Net Income
Net Income After Taxes
$20.4 million FHLB prepayment charge |
 1Q
Results 2014 | cbbank.com Earnings
21
Last four quarters = $102,654
Last four quarters = $102,654 |
 1Q
Results 2014 | cbbank.com Net Interest Margin
22
*Normalized excludes accelerated accretion on covered loans
Normalized* |
 1Q
Results 2014 | cbbank.com Capital |
 1Q
Results 2014 | cbbank.com Capital Ratios
24
* CVB Financial Corp. – Consolidated |
 1Q
Results 2014 | cbbank.com Total Shareholders’
Equity
25 |
 1Q
Results 2014 | cbbank.com Securities & Investments
|
 1Q
Results 2014 | cbbank.com Source:
Q1
2014
earnings
release.
As
of
3/31/2014
securities
held-to-maturity
were
valued
at
approximately
$1.7
million
|
Yield
on
securities
represents
the
fully
taxable
equivalent
*Securities Available For Sale
Yield on securities
portfolio = 2.67%
for the 1
st
Quarter 2014
Securities Portfolio*
--$2.75 Billion--
Securities
portfolio
totaled
$2.75
billion
at
3/31/2014.
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 |
 1Q
Results 2014 | cbbank.com Securities Portfolio*
$2.75 Billion
Mark-to-Market (Pre-tax) *Securities Available For Sale
|
 1Q
Results 2014 | cbbank.com CVBF Assets
29
*Includes
overnight
funds
held
at
the
Federal
Reserve,
Interest
earning
-
due
from
Correspondent
Banks,
other
short-term
money
market
accounts or certificates of deposit
3/31/14
$6.9 Billion
12/31/06
$6.1 Billion |
 1Q
Results 2014 | cbbank.com Yield on Securities vs. Yield on Loans
*Excluding Discount Accretion |
 1Q
Results 2014 | cbbank.com CVBF Liabilities
12/31/06
$5.7 Billion
3/31/14
$6.1 Billion
*Includes Customer Repurchase Agreements |
 1Q
Results 2014 | cbbank.com May 2014
-Shareholder Update-
32 |
 1Q
Results 2014 | cbbank.com CVBF Stock Price
33
$10.38
Shareholders Meeting
05/18/10
$9.22
Shareholders Meeting
05/18/11
$11.35
Shareholders Meeting
05/15/13
$6.56
Shareholders Meeting
05/13/09
$11.07
Shareholders Meeting
05/16/12
$14.62
05/22/14 |
 1Q
Results 2014 | cbbank.com American Security Bank
Acquisition
34 |
 1Q
Results 2014 | cbbank.com Overview of American Security Bank
Overview
Overview
Profitability Metrics
Profitability Metrics
(LTM as of 12/31/13)
(LTM as of 12/31/13)
Balance Sheet
Balance Sheet
(12/31/13)
(12/31/13)
Headquarters
Newport Beach, CA
Establishment Date
1990
Total Branches
5
Net Income (S-Corp, $000s)
$2,939
Net Interest Margin
3.71%
Efficiency Ratio
83.63%
ROAA (S-Corp,%)
0.71%
ROATE (S-Corp,%)
6.85%
Total Assets ($000s)
$412,295
Total Loans ($000s)
$252,605
Total Deposits ($000s)
$356,203
Total Equity ($000s)
$55,039
Tangible Equity ($000s)
$42,774
TCE/TA
10.69%
Tier 1 Leverage Ratio
10.76%
Total RBC Ratio
16.76%
Loan / Deposit Ratio
70.92% |
 1Q
Results 2014 | cbbank.com Pro Forma Branch Map |
 1Q
Results 2014 | cbbank.com Transaction Summary & Pro Forma Assumptions
•
•
$57.0 million
$57.0 million
•
•
133% Tangible Equity
133% Tangible Equity
•
•
4.3% Core Deposit Premium
4.3% Core Deposit Premium
Valuation
Valuation
•
•
100% cash
100% cash
Consideration
Consideration
•
•
May 15th, 2014
May 15th, 2014
Acquisition Date
Acquisition Date
•
40%+ of American Security noninterest
expense base
Estimated Cost Savings
Estimated Cost Savings
Pro Forma Assumptions
Pro Forma Assumptions
•
•
5% EPS Accretion (estimated)
5% EPS Accretion (estimated)
2015e EPS
2015e EPS |
 1Q
Results 2014 | cbbank.com --2014 & Beyond—
Our Growth Strategy |
 1Q
Results 2014 | cbbank.com Our Mission
39
“The mission of CVB Financial Corp. is to achieve
superior performance and rank in the top 10% of all
financial institutions in the nation in return on equity and
return on assets. This will be achieved by delivering the
finest in financial products and services through
relationship banking commitments with businesses and
professionals in the Inland Empire, Los Angeles County,
Orange County, San Diego County and the Central
Valley areas of California. It will be supported by an
unqualified commitment to our five core values.” |
 1Q
Results 2014 | cbbank.com Five Core Values
40
1.
Financial Strength
2.
Superior People
3.
Customer Focus
4.
Cost Effective Operation
5.
Having Fun |
 1Q
Results 2014 | cbbank.com Our Vision
41
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.
|
 1Q
Results 2014 | 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
42 |
 1Q
Results 2014 | cbbank.com Three Areas of Growth
43 |
 1Q
Results 2014 | 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--
--Banks--
--Trust/Investment--
--Trust/Investment--
•
Target size: AUM of $200 million to $1 billion
•
In California
--Banking Teams--
--Banking Teams--
•
In-
market & ‘new’
markets |
 1Q
Results 2014 | cbbank.com Our 2014 ‘Critical Few’
•
•
Execute on DeNovo Growth Initiatives
Execute on DeNovo Growth Initiatives
•
•
Pursue Strategic Acquisitions
Pursue Strategic Acquisitions
•
•
Quality Loan Growth
Quality Loan Growth
•
•
Provide Customer Solutions Through Technology
Provide Customer Solutions Through Technology
•
•
Expand Market Share Through Same Store Sales
Expand Market Share Through Same Store Sales |
 1Q
Results 2014 | cbbank.com Copy of presentation at
www.cbbank.com |