EX-99.2 3 d356548dex992.htm SLIDE PRESENTATION

1 Exhibit 99.2

2 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.

3 Total Assets: $6.5 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): Total Equity: $730 Million 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 = 0.14% Significant equity ownership board of directors: approximately 16% CVB Financial Corp. (CVBF) Source: Q1 2012 earnings release & company filings. *non-covered loans $5.2 Billion

4 Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 28 Years 6 Years Richard C. Thomas Executive Vice President Chief Financial Officer 2 Years 1 Year James F. Dowd Executive Vice President Chief Credit Officer 35 Years 4 Years David C. Harvey Executive Vice President Chief Operations Officer 22 Years 2 Years David A. Brager Executive Vice President Sales Division 24 Years 9 Years Chris A. Walters Executive Vice President CitizensTrust 25 Years 5 Years Yamynn DeAngelis Executive Vice President Chief Risk Officer 32 Years 24 Years Experienced Leadership

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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 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 In millions In millions CVB Financial Corp CVB Financial Corp 10 10 $6,506 $6,506 Largest Banks Headquartered in California

• 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) 7 Bank Accomplishments & Ratings

8 Our Markets

9 42 Business Financial Centers 42 Business Financial Centers 5 Commercial Banking Centers 5 Commercial Banking Centers Existing Existing Locations Locations

(000’s) # of Center Locations Total Deposits (3/31/11) Total Deposits (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 10 *Includes Customer Repurchase Agreements Deposits*

11 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. Deposit Cost Comparison

3 Months 3/31/2012 3 Months 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% 12 *Includes Customer Repurchase Agreements Average Cost of Deposits 0.17% 0.27% Service Charge Income*

(000’s) Non-Covered Loans Covered Loans* Total 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 (Riverside & San Bernardino Counties) $633,955 $2,604 $636,559 18.20% 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% 13 *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale) Total Loans as of 3/31/2012

Total Non-Covered Loans *Removed Mortgage Pools and Construction Loans *Removed Mortgage Pools and Construction Loans Adjusted Non-Covered Loans* $515 million $193 million $193 million (000’s)

15 Source: Q1 2012 earnings release & company reports | *Non-covered loans Commercial RE Non-Owner Occupied 40.0% Consumer 1.6% SFR Mortgage 5.2% Municipal Lease Finance Receivables 3.6% Auto & Equipment 0.5% Dairy, Livestock & Agribusiness 9.1% Commercial & Industrial 15.6% Construction RE 2.1% Commercial RE Owner Occupied 22.3% Loan Portfolio Composition* Total Loans by Type

16 Dairy & Livestock 12/31/11 Territory Number of Loan Outstandings Total Loan Outstandings Central Valley Inland Empire Idaho New Mexico Washington Other Areas Total Dairy: Real Estate Grand Total Grand Total 74 57 21 19 15 12 198 62 260 260 $148,391 $63,333 $60,321 $38,212 $22,339 $10,953 $343,549 $151,714 $495,263 $495,263 (000’s)

17 Net of Discount $184 million $59.3 million Includes Loans Held for Sale Total Covered Loans

18 Non-Performing Assets Non-Covered

19 Loan Loss Allowance/ Charge-Offs -- Non-Covered--

20 (000’s) 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. Texas Ratio Texas Ratio NPA’s/Loans & OREO NPA’s/Loans & OREO 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. Non-Covered

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23 (000’s) Net Income After Taxes $87.4 Million $87.4 Million $20,000 $22,500 2007 2008 2009 2010 2011 2012 Q2 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Income $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $-

2008 2009 2010 2011 2011 3/31/2012 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 $22,268 24 (000’s) Earnings

25 Normalized* 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 2007 2008 2009 2010 2011 2012 Q2 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Interest Margin *Normalized excludes accelerated accretion on covered loans

Return on Average Assets Return on Average Tangible Equity Net Interest Margin Net Interest Margin Peer Profitability Metrics 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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28 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% Capital Ratios

29 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 2007 2008 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 2007 2008 2009 Q1 2010 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 Tier 1 Capital Ratio Tier 1 Capital Ratio Total Risk – Total Risk &#150; – Based Capital Ratio Based Capital Ratio Tangible Common Equity/Tangible Assets Tangible Common Equity/Tangible Assets CVBF Peer CVBF Peer Peer Capital Metrics 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

30 Securities/Investments

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 Available For Sale 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 Government Agency & GSEs 1.6% MBS 39.6% CMO 31.1% Municipal Bonds 27.3% Yield on securities Yield on securities portfolio = 3.03% portfolio = 3.03% Trust Preferred 0.4% Securities Portfolio* --$2.4 Billion--

(000’s) *Securities Available For Sale $71,425 $71,425 Securities Portfolio* $2.4 Billion Mark-to-Market (Pre-tax)

33 *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit Loans Securities Fed Balance* Other Goodwill & Intangibles 3/31/12 $ $6.5 Billion 12/31/06 $6.1 $6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans 2.8%

12/31/06 $5.7 Billion 3/31/12 $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

35 Our Growth Strategy

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. 36 Our Vision

37 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 Target Customer

38 Acquisitions --Banks-- --Trust-- Three Areas of Growth Same Store Sales DeNovo

• Conventional M&A • Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) 39 --Banks-- --Trust/Investment-- • Target size: AUM of $200 million to $1 billion • In California Acquisition Strategy

• Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition 40 Our ‘Critical Few’

*Total Loans net of SJB purchase discount *Total Loans net of SJB purchase discount Total Loans*

Non-Interest Bearing Deposits

43 *Net of Loss/Gain on OREO and Investment Securities Sales Non-Interest Income*

44 (000’s) 2009 2009 2010 2010 2011 2011 Q1 2012 Q1 2012 Annualized 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 Expenses

45 • 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 Our Strategic Focus

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