 July
2012 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 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.
Safe Harbor |
 3
Total Assets:
$6.5 Billion
Gross Loans:
$3.4 Billion
Total Deposits (Including Repos):
$5.2 Billion
Total Equity:
$748 Million
Source: Q2 2012 earnings release & company filings. *non-covered loans
Largest
financial
institution
headquartered
in
the
Inland
Empire
region
of
Southern
California. Founded 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 = 0.13%
Significant equity ownership board of directors: approximately 16%
CVB Financial Corp. (CVBF) |
 4
Name
Name
Position
Position
Banking
Banking
Experience
Experience
CVBF
CVBF
Service
Service
Christopher D. Myers
President & CEO
28 Years
6 Years
Richard C. Thomas
Executive Vice President
Chief Financial Officer
3 Years
2 Years
James F. Dowd
Executive Vice President
Chief Credit Officer
35 Years
4 Years
David C. Harvey
Executive Vice President
Chief Operations Officer
23 Years
3 Years
David A. Brager
Executive Vice President
Sales Division
24 Years
9 Years
R. Daniel Banis
Executive Vice President
CitizensTrust
30 Years
New
Yamynn DeAngelis
Executive Vice President
Chief Risk Officer
33 Years
25 Years
Richard Wohl
Executive Vice President
General Counsel
24 Years
New
Experienced Leadership
|
 Who
is… |
 Rank
Name
Asset Size (3/31/12)
1
Wells Fargo
$1,333,799
2
Union Bank
$92,323
3
Bank of the West
$62,343
4
First Republic Bank
$29,719
5
OneWest Bank
$25,010
6
City National Bank
$24,038
7
East West Bank
$21,750
8
SVB Financial
$20,818
9
Cathay Bank
$10,557
10
10
CVB Financial Corp
CVB Financial Corp
$6,506
$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
Largest Banks
Headquartered in California
In millions
In millions |
 •
•
141 Consecutive Quarters of Profitability
141 Consecutive Quarters of Profitability
•
•
91 Consecutive Quarters of Cash Dividends
91 Consecutive Quarters of Cash Dividends
•
•
#11 Forbes Magazine Best Banks (December 2011)
#11 Forbes Magazine Best Banks (December 2011)
•
•
BauerFinancial Report
BauerFinancial Report
Five Star Rating (March 2012)
Five Star Rating (March 2012)
•
•
Fitch Rating
Fitch Rating
BBB (October 2011)
BBB (October 2011)
Bank Accomplishments &
Ratings |
 Our
Markets Our Markets |
 9
42 Business Financial Centers
42 Business Financial Centers
5 Commercial Banking Centers
5 Commercial Banking Centers
Existing
Locations
|
 (000’s)
# of Center
Locations
Total Deposits
(6/30/11)
Total Deposits
(6/30/12)
Los Angeles County
17
$1,858,203
$1,926,234
Inland Empire
(Riverside & San Bernardino Counties)
11
$1,631,031
$1,652,751
Central Valley
11
$751,190
$792,246
Orange County
8
$579,049
$560,978
Other
0
$220,218
$234,277
Total
47
$5,039,691
$5,166,486
*Includes Customer Repurchase Agreements
Average Cost of Deposits 0.24% 0.16%
Deposits*
|
 (000’s)
Non-Interest Bearing
Deposits |
 12
Source: Q2 2012 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
3/31/12
Deposit Cost Comparison
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2007
2008
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
CVBF
Peers |
 6 Months
6/30/11
6 Months
6/30/12
%
Change
Service Charges on Deposit Accounts
$7,751,943
$8,191,960
5.68%
Service Charges/Total Deposits (Annualized)
0.31%
0.32%
13
*Includes Customer Repurchase Agreements
Service Charge Income*
Average Cost of Deposits 0.24% 0.16% |
 (000’s)
Non-Covered
Loans*
Covered
Loans*
Total Loans*
%
Los Angeles County
$1,153,762
$14,777
$1,168,539
34.07%
Central Valley
$599,848
$214,156
$814,004
23.73%
Inland Empire
(Riverside & San Bernardino Counties)
$629,644
$2,480
$632,124
18.43%
Orange County
$468,057
$113
$468,170
13.65%
Other
$332,184
$15,123
$347,307
10.13%
Total
$3,183,495
$246,649
$3,430,144
100%
*Prior to MTM discount and loan loss reserve
*Prior to MTM discount and loan loss reserve
(Includes loans Held for Sale)
(Includes loans Held for Sale)
as of 6/30/2012
Total Loans*
|
 (000’s)
*Removed Mortgage Pools and Construction Loans
*Removed Mortgage Pools and Construction Loans
Adjusted Non-Covered Loans*
$515 million
$188 million
$188 million
Total Non-Covered Loans
$3,800,000
$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
Q3
2009
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
Q2
Q3
Q4
Q1
2012
Q2 |
 16
Source: Q2 2012 earnings release & company reports | *Non-covered loans
Total Loans by Type
Total Loans by Type
Commercial RE
Non-Owner Occupied
39.5%
Consumer
1.5%
SFR Mortgage
5.0%
Municipal Lease Finance Receivables 3.4%
Auto & Equipment 0.5%
Dairy, Livestock & Agribusiness 9.1%
Commercial & Industrial
16.5%
Construction RE 2.2%
Commercial RE
Owner Occupied 22.3%
Loan Portfolio Composition*
|
 (000’s)
Net of Discount
$184 million
$36.5 million
Includes Loans Held for Sale
Total Covered Loans
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Q4
2009
Q1
2010
Q2
Q3
Q4
Q1
2011
Q2
Q3
Q4
Q1
2012
Q2 |
 18
Non-Performing Assets
Non-Covered
|
 Loan
Loss Allowance/ Charge-Offs --Non-Covered
-- |
 20
Classified Loans
Non-Covered
|
 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. Superior Credit Quality
Texas Ratio
Texas Ratio
NPA’s/Loans & OREO
NPA’s/Loans & OREO
Source: Q2 2012 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 3/31/12 Non-Covered |
 Profits
Profits |
 (000’s)
Net Income After Taxes
Net Income After Taxes
$23.6 Million
$23.6 Million
Net Income
|
 2008
2009
2010
2011
Six Months to
6/30/2012
Net Interest Income
$193,679
$222,264
$259,317
$234,681
$121,562
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)
($51,613)
Income Taxes
($22,675)
($23,830)
($23,804)
($39,071)
($24,062)
Net Profit After Tax
$63,073
$65,419
$62,935
$81,733
$45,887
24
(000’s)
Earnings
|
 25
*Normalized excludes
accelerated accretion on covered loans
Normalized*
Normalized*
Net Interest Margin
|
 Source:
Q2
2012
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
3/31/12
Net Interest Margin
Return on Average Assets
Return on Average Tangible Equity
Peer Profitability Metrics
|
 Expenses
Expenses |
 28
Expenses
|
 Capital
Capital |
 Regulatory
Minimum Ratio
Regulatory
Well-Capitalized Ratio
March 31, 2012
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%
30
Capital Ratios
|
 31
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
Peer Capital Metrics
Tier 1 Capital Ratio
Total Risk – Based Capital Ratio
Tangible Common Equity/Tangible Assets |
 Securities/Investments
Securities/Investments |
 Source: Q2
2012 earnings release. As of 06/30/2012 securities held-to-maturity were valued at approximately $2.2million | Yield on securities represents the fully taxable
equivalent
*Securities Available For Sale
Securities portfolio totaled $2.3 billion at 6/30/2012. The portfolio represents 34.7%
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. 99% 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 Government Agency &
GSEs
1.43%
MBS
38.17%
CMO
31.87%
Municipal Bonds
28.07%
Yield on securities
Yield on securities
portfolio = 2.91%
portfolio = 2.91%
for the 2
for the 2
Quarter 2012
Quarter 2012
Securities Portfolio*
--$2.3 Billion--
Trust Preferred
0.46%
nd |
 Securities Portfolio*
$2.3 Billion
Mark-to-Market
(Pre-tax)
(000’s)
*Securities Available For Sale
$75,145
$75,145
MBS & CMO’s
$32,613
Municipal
Municipal
Bonds
Bonds
$42,323
$42,323
Other Securities
Other Securities
$209
$209 |
 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 CVBF Assets
|
 12/31/06
$5.7 Billion
6/30/12
$5.8 Billion
TOTAL DEPOSITS*
Jr. Subordinated
Debentures
Other Liabilities
BORROWINGS
Jr. Subordinated
Debentures
BORROWINGS
TOTAL DEPOSITS*
Other Liabilities
*Includes Customer Repurchase Agreements
CVBF Liabilities
|
 Our
Growth Strategy Our Growth Strategy |
 Citizens Business Bank will strive to
Citizens Business Bank will strive to
become the dominant financial services
become the dominant financial services
company operating throughout the state
company operating throughout the state
of California, servicing the
of California, servicing the
comprehensive financial needs of
comprehensive financial needs of
successful small to medium sized
successful small to medium sized
businesses and their owners.
businesses and their owners.
38
Our Vision
|
 39
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
Target Customer
|
 40
Acquisitions
Acquisitions
--Banks--
--Trust--
Same Store
Same Store
Sales
Sales
DeNovo
DeNovo
Three Areas of Growth
|
 •
•
Target size: $200 million to $2 billion in assets
Target size: $200 million to $2 billion in assets
•
•
Financial & Strategic
Financial & Strategic
•
•
In-market and/or adjacent geographic market
In-market and/or adjacent geographic market
(California only)
(California only)
--Banks--
--Banks--
--Trust/Investment--
--Trust/Investment--
•
•
Target size: AUM of $200 million to $1 billion
Target size: AUM of $200 million to $1 billion
•
•
In California
In California
--Banking Teams--
--Banking Teams--
•
•
In-
In-
market & ‘new’
market & ‘new’
markets
markets
Acquisition Strategy
|
 •
•
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
Our ‘Critical Few’
|
 43
•
•
Strong Capital position
Strong Capital position
•
•
Strong, disciplined credit underwriting/credit culture
Strong, disciplined credit underwriting/credit culture
•
•
Drive low-cost, sustainable deposits
Drive low-cost, sustainable deposits
•
•
Multiple forms of growth (don’t depend on one)
Multiple forms of growth (don’t depend on one)
•
•
Same Store Sales
Same Store Sales
•
•
DeNovo
DeNovo
•
•
Acquisitions
Acquisitions
•
•
Cross-sell: capture the whole wallet
Cross-sell: capture the whole wallet
•
•
Build new Fee Income opportunities
Build new Fee Income opportunities
•
•
Long-term outlook
Long-term outlook
Our Strategic Focus
|
 |
