Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CVB FINANCIAL CORP | d938554d8k.htm |
| EX-99.2 - EX-99.2 - CVB FINANCIAL CORP | d938554dex992.htm |
 1Q Results 2015 | cbbank.com June 2015 Exhibit 99.1 |
 1Q Results 2015 | 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 the Company’s future financial position and operating results. These forward-looking statements are
subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and
uncertainties include, but are not limited
to, local, regional, national and international economic and market conditions and events and the impact they may have on us and our customers; our ability to attract deposits and other sources of funding or 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 or sales activity; changes in the financial performance and/or condition of our borrowers or certain key vendors or
counterparties; changes in the level of
nonperforming assets and any accompanying reserves
and/or charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws, regulations and relevant judicial decisions (including laws, regulations and judicial decisions concerning
financial reforms, taxes, bank capital
levels, securities and securities trading and hedging, employment, executive compensation, insurance, vendor management and information security) with which we and our subsidiaries must or believe we should 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 rates 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 or money; 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 the perceived overall value of these products and services by
customers and potential customers; the
Company’s relationships with and reliance upon vendors with respect to the operation of certain of the Company key internal and external systems and applications; changes in consumer spending, borrowing and savings preferences or 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, banks and other
financial service providers; continued volatility in the credit and equity markets and its effect on the general economy or local or regional 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, compliance and regulatory changes and 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, 2014,
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 2015 | cbbank.com
Total Assets:
$7.4 Billion
Gross Loans:
$3.7 Billion
Total Deposits (Including Repos):
$6.5 Billion
Total Equity:
$897 Million
Source: Q1 2015 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 43 cities with 40 business financial
centers and 7 commercial banking centers and 3 trust
office locations serving the Inland Empire, LA County, Orange County, San Diego County, Ventura County and the Central Valley of California
3 |
 1Q Results 2015 | cbbank.com
Experienced Leadership
Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 Years Richard C. Thomas Executive Vice President Chief Financial Officer 5 Years 4 Years James F. Dowd Executive Vice President Chief Credit Officer 38 Years 7 Years David C. Harvey Executive Vice President Chief Operations Officer 25 Years 5 Years David A. Brager Executive Vice President Sales Division 27 Years 12 Years R. Daniel Banis Executive Vice President CitizensTrust 33 Years 3 Years Yamynn DeAngelis Executive Vice President Chief Risk Officer 36 Years 28 Years Richard Wohl Executive Vice President General Counsel 27 Years 4 Years 4 |
 1Q Results 2015 | cbbank.com
Board of Directors
Name CVB Experience Age Ray O’Brien - Chairman 3 Years 58 George Borba Jr. - Vice Chairman 2 Years 47 Steve Del Guercio 2 Years 53 Robert Jacoby 10 Years 73 Hal Oswalt 1 Year 67 San Vaccaro 16 Years 82 Chris Myers - CEO 9 Years 53 5 |
 1Q Results 2015 | cbbank.com Who is CVB Financial Corp.? |
 1Q Results 2015 | cbbank.com
Largest Banks Headquartered in California
7 Source: SNL Financial In millions Rank Name Asset Size (3/31/15) 1 Wells Fargo $1,737,737 2 Union Bank $113,698 3 Bank of the West $70,938 4 First Republic Bank $51,066 5 SVB Financial $39,696 6 City National Bank $32,699 7 East West Bank $29,907 8 OneWest Bank $21,307 9 Pacific Western Bank $16,644 10 Cathay Bank $11,910 11 CVB Financial Corp. $7,443 12 BBCN $7,268 13 Banc of California, Inc. $6,097 14 Opus Bank $5,562 15 Farmers & Merchants of Long Beach $5,560 16 Westamerica Bank $5,036 |
 1Q Results 2015 | cbbank.com
Bank Accomplishments & Ratings
152 Consecutive Quarters of Profitability
102 Consecutive Quarters of Cash Dividends
#4 Rated Bank: BankDirector
Magazine
Bank Performance Scorecard (August 2014)
BauerFinancial
Report
Five Star Rating (September 2014)
78 Consecutive Quarters
Fitch Rating
BBB (September 2014) |
 1Q Results 2015 | cbbank.com Our Markets |
 1Q Results 2015 | cbbank.com Existing Locations 10 40 Business Financial Centers 7 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego – NEW Opened 06/02/2014 |
 1Q Results 2015 | cbbank.com What’s New? |
 1Q Results 2015 | cbbank.com
San Diego County
12 Opened June 2014 | 6 Associates |
 1Q Results 2015 | cbbank.com
Ventura County
13 Opened January 2015 | 6 Associates |
 1Q Results 2015 | cbbank.com
Deposits*
(000’s)
# of Center
Locations
Total Deposits
(3/31/14)
Total Deposits
(3/31/15)
Los Angeles County
18 $1,959,624 $2,347,804 Inland Empire (Riverside & San Bernardino Counties) 9 $1,948,785 $1,992,402 Central Valley 9 $870,202 $909,278 Orange County 9 $705,761 $907,308 Other 2 $253,216 $301,336 Total 47 $5,737,588 $6,458,128 *Includes Customer Repurchase Agreements Average Cost of Deposits (Year-to-Date) 0.12% 0.11% |
 1Q Results 2015 | cbbank.com
Total Deposits*
$500,000
$1,500,000
$2,500,000
$3,500,000
$4,500,000
$5,500,000
$6,500,000
$7,500,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 Non-Int Bearing Dep Interest Bearing Deposits* 15 (000’s) *Interest Bearing Deposits includes REPOs |
 1Q Results 2015 | cbbank.com
Deposit Cost Comparison
16 Source: Q1 2015 earnings release & other company filings, SNL Financial—peers represent public
CA , AZ, HI, NV, OR & WA banks with assets $2 -
$25 billion. Peer Data is as of
12/31/14 0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
1.00%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 CVBF Peers |
 1Q Results 2015 | cbbank.com
*Prior to MTM discount, loan fees, loan loss reserve and loans Held
for Sale Starting in the 4
th quarter of 2014, covered and non-covered loans are combined Total Loans* (000’s) # of Center Locations Average Loans per Location Total Loans* (3/31/2015) Los Angeles County 18 $83,955 $1,511,185 Central Valley 9 $83,002 $747,017 Inland Empire (Riverside & San Bernardino Counties) 9 $71,246 $641,214 Orange County 9 $59,327 $533,943 Other 2 $148,864 $297,727 Total 47 $79,385 $3,731,086 |
 1Q Results 2015 | cbbank.com
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
$3,200,000
$3,400,000
$3,600,000
$3,800,000
$4,000,000
$4,200,000
$4,400,000
Q1 Q2Q3 Q4 Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 Total Loans* Total Loans* (000’s) *Starting in the 4 th quarter of 2014, covered and non-covered loans are combined (Purchase Credit Impaired or PCI) Before deferred loan fees, discount on PCI loans, and loans held for sale
Includes covered and non-covered loans for all periods
presented |
 1Q Results 2015 | cbbank.com
19 Source: Q1 2015 earnings release & company reports Starting in the 4 th quarter of 2014, covered and non-covered loans are combined Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Receivables, 2.0% Dairy, Livestock & Agribusiness, 4.7% Commercial & Industrial, 11.2% Construction RE, 1.5% Commercial RE - Owner Occupied, 24.8% Commercial RE- Non-Owner, 42.4% Multi -Family, 5.7% SFR Mortgage, 5.5% Other, 2.2% |
 1Q Results 2015 | cbbank.com Credit Quality |
 1Q Results 2015 | cbbank.com
Non-Performing Assets*
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 Non-Performing Loans OREO 21 (000’s) *Non-Covered assets | Starting in the 4 th quarter of 2014, covered and non-covered assets are combined |
 1Q Results 2015 | cbbank.com
Classified Loans*
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 22 (000’s) *Non-Covered loans| Starting in the 4 th quarter of 2014, covered and non-covered loans are combined |
 1Q Results 2015 | cbbank.com
Loans: Net Charge-Offs*
23 (000’s) *Non-Covered | Starting in the 4 th quarter of 2014, covered and non-covered loans are combined $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2009 2010 2011 2012 2013 2014 Q1 2015 Net Charge - Offs (by year) |
 1Q Results 2015 | cbbank.com Profits |
 1Q Results 2015 | cbbank.com
Net Income
Net Income After Taxes
$20.4 million FHLB prepayment charge
$13.9 million FHLB prepayment charge
$-
$2,500
$5,000
$7,500
$10,000
$12,500
$15,000
$17,500
$20,000
$22,500
$25,000
$27,500
$30,000
$32,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 |
 1Q Results 2015 | cbbank.com
Earnings
(000’s)
2011 2012 2013 2014 3 Months to 03/31/2015 Net Interest Income $234,681 $236,950 $216,266 $236,514 $61,009 Provision for Loan Losses ($7,068) $0 $16,750 $16,100 $0 Other Operating Income/Expenses (Net) ($106,809) ($122,257) ($88,741) ($89,817) ($36,461) Income Taxes ($39,071) ($37,413) ($48,667) ($58,776) ($8,715) Net Profit After Tax $81,733 $77,280 $95,608 $104,021 $15,833 $13.9 million FHLB prepayment charge 26 |
 Net Interest Margin 27 *Normalized tax-equivalent excludes accretion on covered loans (Purchase Credit Impaired)
Normalized*
2.92%
3.92%
3.53% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% Q1Q2 Q3Q4 Q1Q2Q3Q4 Q1 Q2Q3 Q4Q1Q2 Q3Q4 Q1Q2Q3 Q4 Q1Q2 Q3 Q4 Q1Q2 Q3Q4Q1 Q2Q3 Q4Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q Results 2015 | cbbank.com |
 Efficiency & Expenses 1Q Results 2015 | cbbank.com |
 Efficiency Ratio 29 $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 1Q Results 2015 | cbbank.com 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Efficiency Ratio |
 Non-Interest Expense as a % of Average Assets 30 2.42% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 Non-Interest Expense as a % of Average Assets 1Q Results 2015 | cbbank.com 2015 |
 1Q Results 2015 | cbbank.com Capital |
 Capital Ratios 32 * CVB Financial Corp. - Consolidated Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Tier 1 Leverage Ratio Common Equity Tier 1 Capital Ratio Tangible Capital Ratio Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2015* 6.0% 8.0% 4.0% 4.5% 8.0% 10.0% 5.0% 6.5% 17.35% 18.60% 10.94% 16.81% 11.13% |
 1Q Results 2015 | cbbank.com Securities & Investments |
 1Q Results 2015 | cbbank.com
Source: Q1 2015 earnings release. As of 3/31/2015 securities
held-to-maturity were valued at approximately
$1.5 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $3.0 billion at 3/31/2015. The portfolio represents 40.71% 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 4.5% of the municipal bond portfolio
Securities portfolio totaled $3.0 billion at 3/31/2015. The
portfolio represents 40.71% 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 4.5% of the municipal bond portfolio
Securities Portfolio*
--$3.0 Billion--
Yield on securities
portfolio = 2.59%
for the 1st Quarter 2015
CMO's /
REMIC's 9.52%
Trust Preferred
0.17%
Municipal
Bonds 18.16%
Government
Agency &
GSEs 10.89%
MBS 61.26% |
 1Q Results 2015 | cbbank.com
-$40,000
-$20,000
$0 $20,000 $40,000 $60,000 $80,000 $100,000 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Securities Portfolio* $3.0 Billion Mark-to-Market (Pre-tax)
(000’s)
*Securities Available For Sale
$73,846 |
 1Q Results 2015 | cbbank.com
CVBF Assets
36 *Includes overnight funds held at the Federal Reserve, Interest earning -
due from Correspondent Banks, other short-term money market
accounts or certificates of deposit
Securities
40.7%
Fed
Balance*
4.2%
Other 5.0%
Goodwill &
Intangibles
1.0%
Loans,
net 49.1%
3/31/15
$7.4 Billion
Securities
42.4%
Fed
Balance*
2.4%
Other 4.6%
Goodwill &
Intangibles
0.7
% Loans, net 49.9% 12/31/06 $6.1 Billion |
 1Q Results 2015 | cbbank.com
Yield on Securities vs. Yield on Loans
* Excluding Discount Accretion
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 Yield on Loans* Yield on Securities |
 1Q Results 2015 | cbbank.com
CVBF Liabilities
12/31/06
$5.7 Billion
3/31/15
$6.5 Billion
*Includes Customer Repurchase Agreements
Other
Liabilities
0.7%
Junior
subordinated
Debentures 1.9%
Other
Liabilities
0.95%
Junior
subordinated
Debentures
0.39%
Borrowings
0.0% Total Deposits* 61.4% Borrowings 36.0% Total Deposits* 98.66% |
 1Q Results 2015 | cbbank.com Our Growth Strategy |
 Our Vision Citizens Business Bank will strive to become the premier financial services company operating throughout the state of California, servicing the comprehensive financial needs of successful small to medium sized businesses and their owners. 40 1Q Results 2015 | 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 41 1Q Results 2015 | cbbank.com |
 1Q Results 2015 | cbbank.com
Three Areas of Growth
42 Same Store Sales DeNovo Acquisitions --Banks-- --Trust-- |
 1Q Results 2015 | 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 |
 1Q Results 2015 | cbbank.com
Our ‘Critical Few’
• Execute on DeNovo Growth Initiatives • Pursue Strategic Acquisitions • Quality Loan Growth • Provide Customer Solutions Through Technology • Expand Market Share Through Same Store Sales 1Q Results 2015 | cbbank.com |
 1Q Results 2015 | cbbank.com Copy of presentation at www.cbbank.com |