Exhibit 99.1
June 2012
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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; oversupply of inventory and continued deterioration in values of real estate in California and other states where our bank makes loans, 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, business and consumer credit, 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; the availability and effectiveness of hedging instruments and strategies; 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; threats to the stability and security of our technology hardware and software, and to the stability and security of any related vendor or customer hardware and software; 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 effects 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, 2011, 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.
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CVB Financial Corp. (CVBF)
Total Assets: $6.5 Billion
Gross Loans: $3.5 Billion
Total Deposits (Including Repos): $5.2 Billion
Total Equity: $730 Million
Southern Largest financial California. institution Founded headquartered in 1974. in the Inland Empire region of
Serves centers 40 throughout cities with the 42 Inland business Empire, financial LA County, centers Orange and 5 commercial County and banking the Central Valley of California
Average Cost of Deposits = 0.14%
Significant equity ownership board of directors: approximately 16%
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Source: Q1 2012 earnings release & company filings. *non-covered loans
Experienced Leadership
Name Position Banking CVBF
Experience Service
Christopher D. Myers President & CEO 28 Years 6 Years
Executive Vice President
Richard C. Thomas 2 Years 1 Year
Chief Financial Officer
Executive Vice President
James F. Dowd 35 Years 4 Years
Chief Credit Officer
Executive Vice President
David C. Harvey 22 Years 2 Years
Chief Operations Officer
Executive Vice President
David A. Brager 24 Years 9 Years
Sales Division
Executive Vice President
R. Daniel Banis 30 Years New
CitizensTrust
Executive Vice President
Yamynn DeAngelis 32 Years 24 Years
Chief Risk Officer
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Who is…
CVB Financial Corp.
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Largest Banks HeadQuartered in California
In millions
Rank Name Asset Size (3/31/12)
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Wells Fargo $1,333,799 |
| 2 |
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Union Bank $92,323 |
| 3 |
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Bank of the West $62,343 |
| 4 |
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First Republic Bank $29,719 |
| 5 |
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OneWest Bank $25,010 |
| 6 |
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City National Bank $24,038 |
| 7 |
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East West Bank $21,750 |
| 8 |
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SVB Financial $20,818 |
9 Cathay Bank $10,557
10 CVB Financial Corp $6,506
11 Pacific Capital Bank $5,846
12 Pacific Western Bank $5,448
13 Westamerica Bank $5,060
14 Farmers & Merchants of Long Beach $4,769
Bank Accomplishments & Ratings
140 Consecutive Quarters of Profitability
90 Consecutive Quarters of Cash Dividends
#11 Forbes Magazine Best Banks (December 2011)
BauerFinancial Report
Five Star Rating (September 2011)
Fitch Rating
BBB (October 2011)
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Our Markets
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Existing Locations
42 Business Financial Centers
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Commercial Banking Centers |
Commercial Banking Centers
Business Financial Centers
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Deposits*
# of Center Total Deposits Total Deposits
(000’s) Locations (3/31/11) (3/31/12)
Los Angeles County 17 $1,964,976 $1,932,495
Inland Empire
(Riverside & San Bernardino Counties) 11 $1,553,109 $1,617,447
Central Valley 11 $773,627 $817,461
Orange County 8 $572,407 $545,356
Other 0 $199,579 $244,916
Total 47 $5,063,698 $5,157,675
Average Cost of Deposits 0.27% 0.17%
*Includes Customer Repurchase Agreements
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Deposit Cost Comparison
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2010 2010 2010 2011 2011 2011 2011 2012
CVBF Peers
Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA 11 banks with assets $2—$25 billion.
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Service Charge Income*
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Months 3 Months % |
3/31/2012 3/31/2011 Change
Service Charges on Deposit Accounts $4,124,231 $3,723,296 10.77%
Service Charges/Total Deposits (Annualized) 0.32% 0.30%
Average Cost of Deposits 0.17% 0.27%
*Includes Customer Repurchase Agreements
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Total Loans as of 3/31/2012
Non-Covered Covered Total
(000’s) Loans Loans* Loans* %
Los Angeles County $1,115,483 $14,858 $1,130,341 32.32%
Central Valley $586,531 $238,542 $807,241 23.59%
Inland Empire $633,955 $2,604 $636,559 18.20%
(Riverside & San Bernardino Counties)
Orange County $480,771 $113 $480,884 13.75%
Other $375,406 $48,927 $442,165 12.13%
Total $3,192,146 $305,044 $3,497,190 100%
*Prior to MTM discount and loan loss reserve
(Includes loans Held for Sale)
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Total Non-Covered Loans
(000’s)
$3,800,000
$515 million
$3,600,000
$3,400,000
$193 million
$3,200,000
$3,000,000
$2,800,000
$2,600,000
$2,400,000
$2,200,000
$2,000,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009 2010 2011 2012
Adjusted Non-Covered Loans*
*Removed Mortgage Pools and Construction Loans
Loan Portfolio Composition*
Total Loans by Type
Municipal Lease Finance Receivables
3.6%
Consumer
Auto & Equipment 0.5%
1.6%
SFR Mortgage
Dairy, Livestock & Agribusiness
5.2%
9.1%
Commercial & Industrial
15.6%
Commercial RE
Construction RE
Non-Owner Occupied
2.1%
40.0%
Commercial RE
Owner Occupied 22.3%
Source: Q1 2012 earnings release & company reports | *Non-covered loans
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Dairy & Livestock 12/31/11
Number of Total
Territory Loan Loan
Outstandings Outstandings
Central Valley 74 $148,391
Inland Empire 57 $63,333
Idaho 21 $60,321
New Mexico 19 $38,212
Washington 15 $22,339
Other Areas 12 $10,953
Total 198 $343,549
Dairy: Real Estate 62 $151,714
Grand Total 260 $495,263 (000’s)
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Total Covered Loans
(000’s)
$800,000
$700,000 $184 million
$600,000
$500,000
$400,000
$59.3 million
$300,000
$200,000
$100,000
$-
Q4 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012
Net of Discount
Includes Loans Held for Sale
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Non-Performing Assets Non-Covered
(000’s)
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
Non-Performing Loans OREO
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Loan Loss Allowance/ Charge-Offs —Non-Covered—
3.75%
3.50%
3.25%
3.00%
2.75%
2.50%
2.25%
2.00%
1.75%
1.50%
1.25%
1.00%
0.75%
0.50%
0.25%
0.00%
-0.25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009 2010 2011 2012
Allowance to Non-Covered Loans
Net Charge-Offs / Average Loans (Non-Covered)
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Classified Loans Non-Covered
(000’s)
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009 2010 2011 2012
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Superior Credit QualityTexas Ratio
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012
CVBF Peer
NPA’s/Loans & OREO
Non-Covered
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012
CVBF Peer
??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.
Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion.
Profits
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Net Income
$87.4 Million
$22,500
$20,000
$17,500
$15,000
$12,500
$10,000
$7,500
$5,000
$2,500
$-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
(000’s) 2007 2008 2009 2010 2011 2012
Net Income After Taxes
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Earnings
(000’s) 2008 2009 2010 2011 3/31/2012
Net Interest Income $193,679 $222,264 $259,317 $234,681 $58,602
Provision for Credit Losses ($26,600) ($80,500) ($61,200) ($7,068) $0
Other Operating
Income/Expenses (Net) ($81,331) ($52,515) ($111,378) ($106,809) ($24,956)
Income Taxes ($22,675) ($23,830) ($23,804) ($39,071) ($11,378)
Net Profit After Tax $63,073 $65,419 $62,935 $81,733 $22,268
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Net Interest Margin
4.25%
4.00%
3.75%
3.50%
3.25%
3.00%
2.75%
2.50%
2.25%
2.00%
1.75%
1.50%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009 2010 2011 2012
Normalized*
*Normalized excludes accelerated accretion on covered loans
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Peer Profitability Metrics
Return on Average Assets
1.50%
1.00%
0.50%
CVBF
0.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Peer
-0.50% 2010 2010 2010 2010 2011 2011 2011 2011 2012
-1.00%
-1.50%
Return on Average Tangible Equity
20.00%
15.00%
10.00%
5.00%
0.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
-5.00% 2010 2010 2010 2010 2011 2011 2011 2011 2012
-10.00%
-15.00%
Net Interest Margin
5.00%
4.50%
4.00%
3.50%
3.00%
2.50% CVBF
2.00% Peer
1.50%
1.00%
0.50%
0.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2010 2010 2010 2011 2011 2011 2011 2012
Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion.
Capital
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Capital Ratios
Regulatory Regulatory March 31, 2012
Minimum Ratio Well-Capitalized Ratio
Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.18%
Total Risk-based Capital Ratio 8.0% 10.0% 19.44%
Tier 1 Leverage Ratio 4.0% 5.0% 11.35%
Tangible Capital Ratio 4.0% 5.0% 10.38%
Core Tier 1 Capital Ratio 15.57%
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Tier 1 Capital Ratio
18.00%
16.00%
14.00%
12.00%
10.00% CVBF
8.00% Peer
6.00%
4.00%
2.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012
Total Risk – Based Capital Ratio
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012
Tangible Common Equity/Tangible Assets
11.00%
10.00%
9.00%
8.00%
7.00%
CVBF
6.00%
Peer
5.00%
4.00%
3.00%
2.00%
2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012
Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion
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Securities/Investments
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Securities Portfolio*
—$2.4 Billion—
Trust Preferred
0.4%
CMO Municipal Bonds
Yield on securities 31.1% 27.3%
portfolio = 3.03%
Government Agency &
GSEs
1.6%
MBS
39.6%
Securities portfolio totaled $2.4 billion at 3/31/2012. The portfolio represents 36.5% 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
*Securities Available For Sale
Source: Q1 2012 earnings release. As of 03/31/2012 securities held-to-maturity were valued at approximately $2.3 million | Yield on securities represents the fully taxable equivalent
Securities Portfolio* $2.4 Billion Mark-to-Market (Pre-tax)
(000’s)
$90,000
$80,000
$71,425
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12
*Securities Available For Sale
CVBF Assets
12/31/06
$6.1 Billion
42.4%
49.9% Securities
Loans
3/31/12
Fed Balance* $6.5 Billion
0.7% 2.4%
Goodwill & Intangibles 4.6% Securities
Other 51.3% 36.5%
Loans
Fed Balance*
2.8%
8.5%
Goodwill & Intangibles 0.9% Other
*Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit
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CVBF Liabilities
12/31/06
$5.7 Billion
Jr. Subordinated
1.9% Debentures
BORROWINGS
36.0%
3/31/12
$5.8 Billion
0.7% 61.4% BORROWINGS Jr. Subordinated
Other Liabilities TOTAL DEPOSITS* 7.80% 1.90% Debentures
Other 1.00%
Liabilities
89.30%
*Includes Customer Repurchase Agreements TOTAL DEPOSITS*
Our Growth Strategy
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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.
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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
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Three Areas of Growth
Same Store DeNovo
Sales
Acquisitions
—Banks— —Trust—
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Acquisition Strategy
—Banks—
• Conventional M&A
• Target size: $200 million to $2 billion in assets
• Financial & Strategic
• In-market and/or adjacent geographic market
(California only)
—Trust/Investment—
• Target size: AUM of $200 million to $1 billion
• In California
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Our ‘Critical Few’• Quality Loan Growth
• Non-Interest Bearing Deposit Growth
• Non-Interest Income Growth
• Expense Control
• Grow Through Acquisition
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Total Loans*
(000’s)
$4,250,000
$4,000,000
$3,750,000
$3,500,000
$3,250,000
$3,000,000
$2,750,000
$2,500,000
$2,250,000
$2,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009 2010 2011 2012
*Total Loans net of SJB purchase discount
Non-Interest Bearing Deposits
$2,200,000
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
(000’s) 2007 2008 2009 2010 2011 2012
Non-Interest Income*
$9,500
$9,000
$8,500
$8,000
$7,500
$7,000
$6,500
$6,000
$5,500
$5,000
(000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009 2010 2011 2012
*Net of Loss/Gain on OREO and Investment Securities Sales
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Expenses
2009 2010 2011 Q1 2012
(000’s) Annualized
Salaries and Employee Benefits $62,985 $69,419 $69,993 $67,251
Promotion & Entertainment $6,528 $6,084 $4,977 $5,031
Supplies $2,989 $3,314 $2,558 $2,369
Software Licenses & Maintenance $2,320 $5,031 $3,669 $3,656
Professional Services $6,965 $13,308 $15,031 $8,008
OREO Expense $1,211 $7,490 $6,729 $2,936
Other $50,588 $63,846 $38,068 $32,260
TOTAL: $133,586 $168,492 $141,025 $121,512
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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
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Copy of Presentation: www.cbbank.com
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