Exhibit 99.1
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Exhibit 99.1
CVB Financial Corp.
July 2014
2Q Results 2014 | cbbank.com
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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; 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 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, 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.
2Q Results 2014 | cbbank.com 2
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CVB Financial Corp. (CVBF)
Total Assets: $7.4 Billion Gross Loans: $3.6 Billion Total Deposits (Including Repos): $6.2 Billion Total Equity: $841 Million
Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974
Locations in 44 cities with 43 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
Source: Q2 2014 earnings release & company filings.
2Q Results 2014 | cbbank.com
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Experienced Leadership
Name Position Banking Experience CVBF Service
Christopher D. Myers President & CEO 30 Years 8 Years
Richard C. Thomas Executive Vice President 5 Years 4 Years
Chief Financial Officer
James F. Dowd Executive Vice President 37 Years 6 Years
Chief Credit Officer
David C. Harvey Executive Vice President 25 Years 5 Years
Chief Operations Officer
David A. Brager Executive Vice President 26 Years 11 Years
Sales Division
R. Daniel Banis Executive Vice President 32 Years 2 Years
CitizensTrust
Yamynn DeAngelis Executive Vice President 35 Years 27 Years
Chief Risk Officer
Richard Wohl Executive Vice President 26 Years 3 Years
General Counsel
2Q Results 2014 | cbbank.com
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Board of Directors
Name CVB Experience Age
Linn Wiley—Chairman 22 Years 75 George Borba Jr.—Vice Chairman 2 Years 47 Ray O’Brien—Vice Chairman 2 Years 57 Steve Del Guercio 2 Years 52 Robert Jacoby 8 Years 72 Hal Oswalt NEW 66
San Vaccaro 14 Years 81
Chris Myers—CEO 8 Years 52
2Q Results 2014 | cbbank.com
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CVB Financial Corp.
Who is CVB Financial Corp.?
2Q Results 2014 | cbbank.com
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Largest Banks Headquartered in California
Rank Name Asset Size (3/31/14) In millions
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* $9,100
11 CVB Financial Corp. $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
Source: SNL Financial | *CapitalSource merged with Pacific Western Bank (4/7/14)
2Q Results 2014 | cbbank.com
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Bank Accomplishments & Ratings
149 Consecutive Quarters of Profitability
99 Consecutive Quarters of Cash Dividends
#8 Rated Bank: BankDirector Magazine
Bank Performance Scorecard (August 2013)
BauerFinancial Report
Five Star Rating (March 2014)
Fitch Rating
BBB (September 2013)
2Q Results 2014 | cbbank.com
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CVB Financial Corp.
Our Markets
2Q Results 2014 | cbbank.com
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Existing Locations
43 Business Financial Centers
6 Commercial Banking Centers
3 CitizensTrust Locations
San Joaquin
Stanislaus
Merced
Madera
Fresno
Tulare
Kern
San Bernardino
Los Angeles
Riverside
Orange
San Diego
Corporate Office
Business Financial Centers Commercial Banking Centers CitizensTrust
San Diego – NEW Opened 06/02/2014 American Security Bank
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Deposits*
# of Center Total Deposits Total Deposits
(000’s) Locations (6/30/13) (6/30/14)
Los Angeles County 18 $1,892,050 $2,069,542
Inland Empire 11 $1,762,673 $2,148,802
(Riverside & San Bernardino Counties)
Central Valley 9 $812,072 $845,125
Orange County 10 $600,373 $920,300
Other 1 $256,795 $257,036
Total 49 $5,323,963 $6,240,805
Average Cost of Deposits (Year-to-Date) 0.12% 0.11%
*Includes Customer Repurchase Agreements
2Q Results 2014 | cbbank.com
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Total Deposits*
$7,500,000
$6,500,000
$5,500,000
$4,500,000
$3,500,000
$2,500,000
$1,500,000
$500,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
(000’s)
2010 2011 2012 2013 2014
Non-Int Bearing Dep Interest Bearing Deposits*
*Interest Bearing Deposits includes REPOs
2Q Results 2014 | cbbank.com
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Deposit Cost Comparison
Source: Q2 2014 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 3/31/2014
3.00%
CVBF Peers
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
200720082009 2010 2011 2012 2013 2014
2Q Results 2014 | cbbank.com
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Total Loans*
$ 4,400,000
$ 4,200,000
$ 4,000,000
$ 3,800,000
$ 3,600,000
$ 3,400,000
$ 3,200,000
$ 3,000,000
$ 2,800,000
$ 2,600,000
$ 2,400,000
$ 2,200,000
$ 2,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012 2013 2014
(000’s) Total Non-Covered Loans Total Covered Loans
*Before deferred loan fees, discount on covered loans, and loans held for sale
2Q Results 2014 | cbbank.com
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Loan Portfolio Composition
Total Loans by Type
Municipal Lease
Finance
Other, 2.1% Receivables, 2.2% Dairy, Livestock &
SFR Mortgage, Agribusiness,
5.1% 5.0%
Multi-Family, 6.0% Commercial &
Industrial, 14.6%
Construction RE,
1.6%
Commercial RE-
Non-Owner,
40.6% Commercial RE -
Owner
Occupied, 22.8%
Source: Q2 2014 earnings release & company reports |Covered & Non Covered
2Q Results 2014 | cbbank.com
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New/Enhanced Lending Initiatives
Residential Real Estate Multi-Family Asset Based Lending
Residential and Commercial Construction
2Q Results 2014 | cbbank.com
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CVB Financial Corp.
Credit Quality
2Q Results 2014 | cbbank.com
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Non-Performing Assets*
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
(000’s)
2009 2010 2011 2012 2013 2014
*Non-Covered Non-Performing Loans OREO
2Q Results 2014 | cbbank.com
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Classified Loans*
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
(000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2011 2012 2013 2014
*Non-Covered
2Q Results 2014 | cbbank.com 19
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Loans: Net Charge Offs*
$10,000
$-
2009 2010 2011 2012 2013 YTD 2014
$(10,000)
$(20,000)
$(30,000)
$(40,000)
$(50,000)
$(60,000)
$(70,000)
Net Charge Offs (by year)
*Non-Covered
2Q Results 2014 | cbbank.com 20
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CVB Financial Corp.
Profits
2Q Results 2014 | cbbank.com
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Net Income
$32,500
$30,000
$27,500
$25,000
$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 Q2
(000’s)
2009 2010 2011 2012 2013 2014
Net Income After Taxes
$20.4 million FHLB prepayment charge
2Q Results 2014 | cbbank.com
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Earnings
(000’s) 2010 2011 2012 2013 6 Months to
6/30/2014
Net Interest Income $259,317 $234,681 $236,950 $216,266 $114,101
Provision for Loan Losses ($61,200) ($7,068) $0 $16,750 $15,100
Other Operating Income/Expenses (Net) ($111,378) ($106,809) ($122,257) ($88,741) ($43,933)
Income Taxes ($23,804) ($39,071) ($37,413) ($48,667) ($31,123)
Net Profit After Tax $62,935 $81,733 $77,280 $95,608 $54,145
2Q Results 2014 | cbbank.com 23
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Net Interest Margin
4.25%
4.00%
375%.
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2008 2009 2010 2011 2012 2013 2014
Normalized*
*Normalized excludes accretion on covered loans
2Q Results 2014 | cbbank.com 24
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CVB Financial Corp.
Efficiency & Expenses
2Q Results 2014 | cbbank.com
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Efficiency Ratio
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2012 2013 2014
Efficiency Ratio
$20.4 million FHLB prepayment charge
2Q Results 2014 | cbbank.com 26
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Non-Interest Expense
as a % of Average Assets
3.50%
3.00%
2.50%
2.00%
1.50% 1.79%
1.00%
0.50%
0.00%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2012 2013 2014
Non-Interest Expense as a % of Average Assets
$20.4 million FHLB prepayment charge
2Q Results 2014 | cbbank.com 27
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CVB Financial Corp.
Capital
2Q Results 2014 | cbbank.com
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Capital Ratios
Regulatory Regulatory
Minimum Ratio Well-Capitalized Ratio March 31, 2014*
Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.98%
Total Risk-based Capital Ratio 8.0% 10.0% 20.24%
Tier 1 Leverage Ratio 4.0% 5.0% 11.48%
Tangible Capital Ratio 10.98%
Core Tier 1 Capital Ratio 18.36%
* CVB Financial Corp. - Consolidated 29
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2nd Quarter 2014
‘CVBF’ Share Repurchases
7,420,678= remaining shares authorized
344,493 = shares repurchased at an average price of $14.15 per share
2Q Results 2014 | cbbank.com 30
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CVB Financial Corp.
Securities & Investments
2Q Results 2014 | cbbank.com
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Securities Portfolio*
—$3.0 Billion—
CMO’s / Trust Preferred
Yield on securities REMIC’s 0.17% Municipal
portfolio = 2.64% 11.38% Bonds 19.48%
for the 2nd Quarter 2014
Government
Agency &
GSEs 11.04%
MBS 57.93%
Securities portfolio totaled $3.02 billion at 6/30/2014. The portfolio represents 40.7% 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. 98% of the Bank’s municipal portfolio contains securities which have an underlying rating of investment grade. California municipals represent only 5% of the municipal bond portfolio
*Securities Available For Sale
2Q Results 2014 | cbbank.com Source: Q2 2014 earnings release. As of 6/30/2014 securities held-to-maturity were valued at approximately $1.6 million | Yield on securities represents the fully taxable equivalent
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Securities Portfolio*
$3.0 Billion
Mark-to-Market (Pre-tax)
$100,000
$80,000
$60,000
$41,478
$40,000
$20,000
$0
-$20,000
-$40,000
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sept Dec Mar Jun
09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14
(000’s) *Securities Available For Sale
2Q Results 2014 | cbbank.com
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CVBF Assets
12/31/06
$6.1 Billion
Loans, Securities
net 42.4%
49.9%
Goodwill & Fed
Intangibles Balance*
0.7% Other 4.6% 2.4%
6/30/14
$7.4 Billion
Loans, Securities
net 48.0% 40.7%
Fed
Goodwill & Other 5.6% Balance*
Intangibles 4.7%
1.0%
*Includes overnight funds held at the Federal Reserve, Interest earning -due from Correspondent Banks, other short-term money market accounts or certificates of deposit
2Q Results 2014 | cbbank.com
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Yield on Securities vs. Yield on Loans
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2011 2012 2013 2014
Yield on Loans* Yield on Securities
2Q Results 2014 | cbbank.com *Excluding Discount Accretion
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CVBF Liabilities
12/31/06
$5.7 Billion Junior
subordinated
Debentures 1.9%
Borrowings
36.0% Total
Deposits*
61.4%
Other
Liabilities
0.7%
6/30/14
$6.6 Billion
Other Borrowings
Liabilities 3.0% Junior
subordinated
1.8% Debentures
0.4%
Total
Deposits*
94.8%
*Includes Customer Repurchase Agreements
2Q Results 2014 | cbbank.com
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CVB Financial Corp.
New Acquisition “American Security Bank”
2Q Results 2014 | cbbank.com 37
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Transaction Highlights
Merger Completed: May 15, 2014
Price: $57 million (cash)
Number of Locations: ‘5’ Branch Locations
‘2’ Electronic Banking Vestibules
Total Assets: $433 million
Total Loans: $247 million
Non-Interest Bearing Deposits: $193.6 million
Total Deposits: $378.2 million
2Q Results 2014 | cbbank.com 38
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Closure/Consolidations
Branch Date Closure/Consolidation
Apple Valley– Electronic Banking August 2014 Closure
Vestibule
Victorville - Electronic Banking
Vestibule & Operations Center September 2014 Closure
Orange County CBC (CBB) September 2014 Consolidate into Newport Beach (ASB)
Corona (ASB) September 2014 Consolidate into
Corona BFC (CBB)
Victorville BFC (CBB) October 2014 Consolidate into
Apple Valley (ASB)
2Q Results 2014 | cbbank.com 39
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CVB Financial Corp.
Our Growth Strategy
2Q Results 2014 | cbbank.com
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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.
2Q Results 2014 | cbbank.com
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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
2Q Results 2014 | cbbank.com
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Three Areas of Growth
Same Store
DeNovo
Sales
Acquisitions
—Banks—
— Trust—
2Q Results 2014 | cbbank.com
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Acquisition Strategy
—Banks—
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
—Banking Teams—
In- market & ‘new’ markets
2Q Results 2014 | cbbank.com
CVB Financial Corp.
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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
2Q Results 2014 | cbbank.com
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CVB Financial Corp.
Copy of presentation at www.cbbank.com
2Q Results 2014 | cbbank.com
