 1Q
Results 2013 | cbbank.com May 2013
Exhibit 99.1 |
 1Q
Results 2013 | 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;
ability
to
make
loans
and
generate
assets;
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
business,
manufacturing,
retail
or
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,
capital
levels,
limits
on
bank
products
and
fees,
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
(including
mobile
banking
and
cloud
computing);
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,
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. |
 1Q
Results 2013 | cbbank.com Total Assets:
$6.3 Billion
Gross Loans:
$3.4 Billion
Total Deposits (Including Repos):
$5.2 Billion
Total Equity:
$768 Million
Source: Q1 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 41 business financial centers and 5 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 = 0.11%
3 |
 1Q
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
3 Years
2 Years
James F. Dowd
Executive Vice President
Chief Credit Officer
36 Years
5 Years
David C. Harvey
Executive Vice President
Chief Operations Officer
23 Years
3 Years
David A. Brager
Executive Vice President
Sales Division
25 Years
10 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 |
 1Q
Results 2013 | cbbank.com Board of Directors
Name
CVB Experience
Age
Ronald Kruse -
Chairman
38 Years
74
Linn Wiley -
Vice Chairman
21 Years
74
George Borba Jr.
New
45
Steve Del Guercio
New
51
Robert Jacoby
7 Years
71
Ray O’Brien
New
56
San Vaccaro
13 Years
80
Chris Myers -
CEO
7 Years
51
5 |
 1Q
Results 2013 | cbbank.com Who is CVB Financial Corp.
|
 1Q
Results 2013 | cbbank.com Largest Banks Headquartered in California
7
Source: SNL Financial
Rank
Name
Asset Size (12/31/12)
1
Wells Fargo
$1,442,968
2
Union Bank
$96,992
3
Bank of the West
$63,343
4
First Republic Bank
$34,388
5
City National Bank
$28,618
6
OneWest Bank
$25,894
7
SVB Financial
$22,766
8
East West Bank
$22,536
9
Cathay Bank
$10,694
10
CapitalSource Inc.
$8,549
11
11
CVB Financial Corp.
CVB Financial Corp.
$6,363
$6,363
12
BBCN
$5,641
13
Pacific Western Bank
$5,464
14
Farmers & Merchants of Long Beach
$4,989
15
Westamerica Bank
$4,952 |
 1Q
Results 2013 | cbbank.com Bank Accomplishments & Ratings
144 Consecutive Quarters of Profitability
94 Consecutive Quarters of Cash Dividends
#6 Rated Bank: BankDirector Magazine
Bank Performance Scorecard (July 2012)
BauerFinancial Report
Five Star Rating (September 2012)
Fitch Rating
BBB (October 2012) |
 1Q
Results 2013 | cbbank.com Our Markets |
 Existing Locations
10
40
Business Financial Centers
5
Commercial Banking Centers
3
CitizensTrust Locations |
 1Q
Results 2013 | cbbank.com Deposits*
(000’s)
# of Center
Locations
Total Deposits
(3/31/12)
Total Deposits
(3/31/13)
Los Angeles County
17
$1,932,495
$1,818,916
Inland Empire
(Riverside & San Bernardino Counties)
10
$1,617,447
$1,698,844
Central Valley
11
$817,461
$834,170
Orange County
7
$545,356
$572,867
Other
0
$244,916
$261,479
Total
45
$5,157,675
$5,186,276
*Includes Customer Repurchase Agreements; Balance as of balance sheet date
|
 1Q
Results 2013 | cbbank.com Non-Interest Bearing Deposits
|
 1Q
Results 2013 | cbbank.com Deposit Cost Comparison
13
Source: Q1 2013 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 12/31/12 |
 1Q
Results 2013 | cbbank.com Total Loans*
as of 3/31/2013
(000’s)
Non-
Covered
Loans*
Covered
Loans*
Total Loans*
%
Los Angeles County
$1,198,804
$14,194
$1,212,998
35.71%
Central Valley
$646,987
$173,133
$820,120
24.15%
Inland Empire
(Riverside & San Bernardino Counties)
$601,204
$1,034
$602,238
17.73%
Orange County
$455,543
$0
$455,543
13.41%
Other
$294,463
$11,241
$305,704
9.00%
Total
$3,197,001
$199,602
$3,396,603
100.00%
*Prior to MTM discount and loan loss reserve (Includes loans Held for Sale)
|
 1Q
Results 2013 | cbbank.com Total Non-Covered Loans
|
 1Q
Results 2013 | cbbank.com 16
Loan Portfolio Composition*
Total Loans by Type
Total Loans by Type |
 1Q
Results 2013 | cbbank.com New/Enhanced Lending Initiatives
•
Residential Real Estate
•
Multi-Family
•
Asset Based Lending
17 |
 1Q
Results 2013 | cbbank.com Other Lending Areas
For Future Consideration/Expansion
•
SBA 7A
•
Medical Equipment/Office
•
Equipment Lending & Leasing
•
Private Banking
18 |
 1Q
Results 2013 | cbbank.com Total Covered Loans
Net of Discount
Net of Discount
Includes Loans Held for Sale |
 1Q
Results 2013 | cbbank.com Non-Performing Assets
Non-Covered
20 |
 1Q
Results 2013 | cbbank.com Loan Loss Allowance/ Charge-Offs
--Non-Covered-- |
 1Q
Results 2013 | cbbank.com Classified Loans
Non-Covered
22 |
 1Q
Results 2013 | cbbank.com Profits |
 1Q
Results 2013 | cbbank.com Net Income
$20.4 million FHLB prepayment charge |
 1Q
Results 2013 | cbbank.com Earnings
(000’s)
2009
2010
2011
2012
3 Months to
3/31/2013
Net Interest Income
$222,264
$259,317
$234,681
$236,950
$54,589
Provision for Credit Losses
($80,500)
($61,200)
($7,068)
$0
$0
Other Operating
Income/Expenses (Net)
($52,515)
($111,378)
($106,809)
($122,257)
($24,053)
Income Taxes
($23,830)
($23,804)
($39,071)
($37,413)
($8,921)
Net Profit After Tax
$65,419
$62,935
$81,733
$77,280
$21,615
$21,615
25 |
 1Q
Results 2013 | cbbank.com Net Interest Margin
26
*Normalized excludes accelerated accretion on covered loans
|
 1Q
Results 2013 | cbbank.com Expenses |
 1Q
Results 2013 | cbbank.com Expenses
28
*Includes $20.4 million FHLB prepayment charge
(000’s)
2010
2011
2012
3 Months to
3/31/2013
Salaries & Employee
Benefits
$69,419
$69,993
$68,496
$17,300
Promotion &
Entertainment
$6,084
$4,977
$4,869
$1,258
Supplies
$3,314
$2,558
$2,212
$653
Software Licenses &
Maintenance
$5,031
$3,669
$4,269
$1,152
Professional Services
$13,308
$15,031
$6,249
$1,596
OREO Expense
$7,490
$6,729
$2,146
$330
Other
$63,846
$38,068
$49,919*
$8,509
Total:
$168,492
$141,025
$138,160
$30,798 |
 1Q
Results 2013 | cbbank.com Bank Borrowings |
 1Q
Results 2013 | cbbank.com Debt Repayment Activity
2013
Type of Debt
Payoff Date
Amount
Weighted Average
Interest Rate
Subordinated Debentures
CVB Statutory Trust II
1/7/2013
$20,619
3-Month LIBOR +
2.85%
CVB Statutory Trust II
4/7/2013
$20,619
3-Month LIBOR +
2.85%
Total
$41,238
30
(000’s)
(000’s) |
 1Q
Results 2013 | cbbank.com Type of Debt
Balance at
4/30/2013
Interest Rate
FHLB Advance
$199,002
4.52% Fixed
Other Borrowings (overnight)
$0
Subordinated Debentures
CVB Statutory Trust III
$25,774
3-Month LIBOR + 1.38%
Total
$224,776
Outstanding Debt*
as of 4/30/2013
31
(000’s) |
 1Q
Results 2013 | cbbank.com Capital |
 1Q
Results 2013 | cbbank.com Capital Ratios
Regulatory
Minimum Ratio
Regulatory
Well-Capitalized Ratio
December 31, 2012*
Tier 1 Risk-based Capital Ratio
4.0%
6.0%
18.23%
Total Risk-based Capital Ratio
8.0%
10.0%
19.49%
Tier 1 Leverage Ratio
4.0%
5.0%
11.50%
Tangible Capital Ratio
4.0%
5.0%
11.17%
Core Tier 1 Capital Ratio
16.60%
33 |
 1Q
Results 2013 | cbbank.com 34
Source: Q4 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
1
2
3
Tier 1 Capital Ratio
Total Risk –
Based Capital Ratio
Tangible Common Equity/Tangible Assets |
 1Q
Results 2013 | cbbank.com Securities & Investments
|
 1Q
Results 2013 | cbbank.com Source:
Q1
2013
earnings
release.
As
of
3/31/2013
securities
held-to-maturity
were
valued
at
approximately
$2.0
million
|
Yield
on
securities
represents
the
fully
taxable
equivalent
*Securities Available For Sale
Securities portfolio totaled $2.39 billion at 3/31/2013. The portfolio
represents 38.2% 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
Securities Portfolio*
--$2.39 Billion-- |
 1Q
Results 2013 | cbbank.com Securities Portfolio*
$2.39 Billion
Mark-to-Market (Pre-tax) (000’s)
*Securities Available For Sale |
 1Q
Results 2013 | cbbank.com CVBF Assets
38
*Includes overnight funds held at the Federal Reserve, Interest earning -
due from Correspondent Banks, other short-term money market
accounts or certificates of deposit |
 1Q
Results 2013 | cbbank.com Yield on Securities vs. Yield on Loans
|
 1Q
Results 2013 | cbbank.com CVBF Liabilities
*Includes Customer Repurchase Agreements |
 1Q
Results 2013 | cbbank.com Our Growth Strategy |
 1Q
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.
42 |
 1Q
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
43 |
 1Q
Results 2013 | cbbank.com Three Areas of Growth
44 |
 1Q
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--
--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 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 |
 1Q
Results 2013 | cbbank.com Copy of presentation at
www.cbbank.com |
