EX-99.1 2 d533062dex991.htm EX-99.1

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