EX-99.1 2 d539987dex991.htm EX-99.1

1Q Results 2013 | cbbank.com th 38 Annual Shareholder’s Meeting May 15 2013 th Exhibit 99.1

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; 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. 2 1Q Results 2013 | cbbank.com

Senior Leadership Team 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 De Angelis Executive Vice President Chief Risk Officer 34 Years 26 Years Richard Wohl Executive Vice President General Counsel 25 Years 2 Years Elsa Zavala Executive Vice President Chief Information Officer 33 Years 20 Years Larry Zivelonghi Executive Vice President Dairy & Livestock Industries Group 33 Years 20 Years 3 1Q Results 2013 | cbbank.com

Senior Leadership Team Name Position Banking Experience CVBF Service Ted Dondanville Senior Vice President Senior Lender 31 Years 15 Years Hector Gutierrez Senior Vice President Deputy Chief Credit Officer 31 Years 2 Years David Krebs Senior Vice President Human Resources 19 Years 10 Years Eric Lucero Senior Vice President The Marketing Group 12 Years NEW James Mead Senior Vice President Region Manager (Inland Empire) 38 Years 20 Years Michael Mulcahy Senior Vice President Region Manager (Los Angeles) 35 Years 5 Years Tim Noone Senior Vice President Specialty Banking 30 Years 5 Years Mark Richardson Senior Vice President Real Estate Banking Group 23 Years 19 Years Michael Stain Senior Vice President Region Manager (Central Valley) 32 Years NEW Average: Average: 27 Years 27 Years 10 Years 10 Years 4 1Q Results 2013 | cbbank.com

Senior Managers Steven Caseldine SVP |Corona Manager Francene LaPoint SVP | Controller Ken Clark SVP | Riverside Manager Thomas Trine SVP | Trust Services Manager Mary Wilson SVP | Tri-City Manager Mary Hernandez SVP | Specialty Banking Group Greg Armstrong SVP | Upland CBC Manager John Hillier SVP | Specialty Banking Group Duane Keene SVP | Covina Manager Mary McElwee SVP | Credit Management LaVon Short SVP | Treasury Services Manager Terry Naffziger SVP | Asset Based Lending Sue Haynes SVP | Bankcard Services Manager Vince Gottuso SVP | Ontario Airport Manager Greg Grande SVP | Pasadena Manager Ron Fields SVP | Chino Manager 5 1Q Results 2013 | cbbank.com

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. Average Cost of Deposits = 0.11% 7 1Q Results 2013 | cbbank.com

Largest Banks Headquartered in California 8 Source: SNL Financial Rank Name Asset Size (3/31/13) 1 Wells Fargo $1,436,634 2 Union Bank $96,959 3 Bank of the West $62,493 4 First Republic Bank $35,083 5 City National Bank $27,434 6 OneWest Bank $25,369 7 East West Bank $23,102 8 SVB Financial $22,796 9 Cathay Bank $10,521 10 CapitalSource Inc. $8,483 11 11 CVB Financial Corp. CVB Financial Corp. $6,266 $6,266 12 BBCN $5,839 13 Pacific Western Bank $5,300 14 Farmers & Merchants of Long Beach $5,071 15 Westamerica Bank $4,888 In millions In millions 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

1Q Results 2013 | cbbank.com Our Markets

1Q Results 2013 | cbbank.com Existing Locations 11 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 Inland Empire (Riverside & San Bernardino Counties) 10 Central Valley 11 Orange County 7 Other 0 Total 45 *Includes Customer Repurchase Agreements; Balance as of balance sheet date 1Q Results 2013 | cbbank.com Average Cost of Deposits (year to date) 0.17% 0.12% $1,932,495 $1,617,447 $817,461 $545,356 $244,916 $5,157,675 $1,818,916 $1,698,844 $834,170 $572,867 $261,479 $5,186,276

Non-Interest Bearing Deposits (000’s) 1Q Results 2013 | cbbank.com $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 Q1 Q1 Q2 Q3 Q4 2013 2012 2011 2010 2009 2008 2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Loans* *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale) | As of 3/31/13 1Q Results 2013 | cbbank.com (000’s) Los Angeles County Central Valley Inland Empire (Riverside & San Bernardino Counties) Orange County Other Total Non-Covered Loans* $1,198,804 $646,987 $601,204 $455,543 $294,463 $3,197,001 Covered Loans* $14,194 $173,133 $1,034 $0 $11,241 $199,602 Total Loans* $1,212,998 $820,120 $602,238 $455,543 $305,704 $3,396,603 % 35.71% 24.15% 17.73% 13.41% 9.00% 100.00% 1Q Results 2013 | cbbank.com

Loan Portfolio Composition* 15 1Q Results 2013 | cbbank.com Other, 1.8% SFR Mortgage, 5.1% Municipal Lease Finance Receivables, 3.4% Multi-Family, 3.6% Dairy, Livestock & Agribusiness, 8.9% Commercial & Industrial, 16.7% Commercial RE- Non-Owner, 37.2% Construction RE, 1.7% Commercial RE – Owner Occupied, 21.6% Total Loans by Type Source: Q1 2013 earnings release & company reports | *Non-covered loans

Dairy & Livestock as of 03/31/2013 Territory Number of Loan Outstandings Total Loan Outstandings Central Valley 65 $123,862 Inland Empire 40 $38,284 Idaho 13 $47,051 New Mexico 15 $32,017 Washington 8 $26,394 Other Areas 13 $10,894 Total 154 $278,502 Dairy: Real Estate 53 $137,964 Grand Total Grand Total 207 207 $416,466 $416,466 16 1Q Results 2013 | cbbank.com

Loans* *Covered Loans net of SJB purchase discount $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 (000’s) 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 2007 2008 2009 2010 2011 2012 2013 Non Covered Loans Covered Loans* 1Q Results 2013 | cbbank.com 17

• Residential Real Estate • Multi-Family (Apartments) • Asset Based Lending 18 2013 New/Enhanced Lending Initiatives 1Q Results 2013 | cbbank.com

Other Lending Areas For Future Consideration/Expansion • SBA 7A • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking 19 1Q Results 2013 | cbbank.com

Profits 1Q Results 2013 | cbbank.com

Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge $25,000 $22,500 $20,000 $17,500 $12,500 $15,000 $10,000 $7,500 $5,000 $2,500 $0 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 2007 2008 2009 2010 2011 2012 2013 1Q Results 2013 | cbbank.com

22 (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 1Q Results 2013 | cbbank.com Earnings

Net Interest Margin 23 *Normalized excludes accelerated accretion on covered loans Normalized* 1Q Results 2013 | cbbank.com 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 2007 2008 2009 2010 2011 2012 2013 4.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00%

Bank Borrowings 1Q Results 2013 | cbbank.com

Bank Borrowings 25 (000’s) Trust Preferred (Jr. Subordinated Debentures) Federal Home Loan Bank Debt & Other Borrowings 1Q Results 2013 | cbbank.com 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 $2,500,000 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $140,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

Debt Repayment Activity 2013 Type of Debt Payoff Date Amount Weighted Average Interest Rate 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 26 (000’s) 1Q Results 2013 | cbbank.com

Type of Debt Balance at 4/30/2013 Interest Rate Maturity FHLB Advance $199,002 4.52% Fixed 11/28/2016 CVB Statutory Trust III $25,774 3-Month LIBOR + 1.38% 3/15/2036 Total $224,776 Outstanding Debt 27 (000’s) 1Q Results 2013 | cbbank.com

Capital 1Q Results 2013 | cbbank.com

Capital Ratios Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31,2013* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.36% Total Risk-based Capital Ratio 8.0% 10.0% 19.63% Tier 1 Leverage Ratio 4.0% 5.0% 11.54% Tangible Capital Ratio 4.0% 5.0% 11.44% Core Tier 1 Capital Ratio 17.21% 29 *CVB Financial Corp. - Consolidated 1Q Results 2013 | cbbank.com

Total Shareholder Equity 30 (000’s) $825,000 $0 1Q Results 2013 | cbbank.com $75,000 $150,000 $225,000 $300,000 $375,000 $450,000 $525,000 $600,000 $675,000 $750,000 2006 2012 2011 2010 2009 2008 2007

Securities & Investments 1Q Results 2013 | cbbank.com

*Securities Available For Sale Yield on securities portfolio = 2.39% for the 1st Quarter 2013 Securities Portfolio* --$2.39 Billion-- CMO’s / REMIC’s 19.98% MBS 37.34% Trust Preferred 0.21% Municipal Bonds 26.13% Government Agency & GSEs 16.34% 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 1Q Results 2013 | cbbank.com

Securities Portfolio* $2.39 Billion Mark-to-Market (Pre-tax) (000’s) *Securities Available For Sale $60,781 $60,781 MBS & CMO’s $24,607 Municipal Bonds $36,850 Other Securities ($676) $89,000 $79,000 $69,000 $59,000 $49,000 $39,000 $29,000 $19,000 $9,000 -$1,000 Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Jun Sep Dec Sep Dec Mar 13 12 12 12 12 11 11 11 11 10 10 10 10 09 09 09 1Q Results 2013 | cbbank.com

Yield on Securities vs. Yield on Loans *Excluding Discount Accretion Yield on Loans* Yield on Securities 6.00% Q1 2013 2012 2011 2010 2009 1Q Results 2013 | cbbank.com 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

CVBF Assets 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 3/31/13 $6.3 Billion 12/31/06 $6.1 Billion Loans 49.9% Securities 42.4% Fed Balance* 2.4% Other 4.6% Goodwill & Intangibles 0.7% Loans, 52.3% Securities, 38.2% Fed Balance*, 0.9% Other, 7.7% Goodwill & Intangibles, 0.9% 1Q Results 2013 | cbbank.com

CVBF Liabilities 12/31/06 $5.7 Billion 3/31/13 $5.5 Billion *Includes Customer Repurchase Agreements Junior subordinated Debentures, 1.9% Borrowings, 36.0% Total Deposits*, 61.4% Other Liabilities, 0.7% Other Liabilities, 1.2% Junior subordinated Debentures, 0.9% Total Deposits*, 94.3% 1Q Results 2013 | cbbank.com Borrowings, 3.6%

May 2013 -Shareholder Update- 37 1Q Results 2013 | cbbank.com

SEC Investigation 38 • SEC investigation related to CBB loan loss reserves was initiated in late July 2010 • CVBF and outside counsel have fully cooperated with the SEC • We are hopeful the investigation will be positively resolved but have no specific insight as to timing or outcome 1Q Results 2013 | cbbank.com

Lawsuits: Shareholder & Derivative 39 • The federal securities class action was initiated in January 2011, and the complaint was dismissed by the district court judge in January 2012. An amended complaint was filed in February 2012 and was dismissed by the court in August 2012. • Plaintiffs filed another amended complaint in September 2012, which was dismissed (for the third time) by the court in May 2013. However, plaintiffs were given leave to re-file yet another amended complaint. • We intend to continue to vigorously contest the plaintiff’s claims, which we believe are without merit. • The companion state law derivative action has been deferred pending the outcome of the federal class action lawsuit. 1Q Results 2013 | cbbank.com

CVBF Stock Price 40 $10.38 Shareholders Meeting 05/18/10 $9.22 Shareholders Meeting 05/18/11 $11.35 05/15/13 $6.56 Shareholders Meeting 05/13/09 --Press Release-- SEC Investigation 08/10/10 $11.07 Shareholders Meeting 05/16/12 1Q Results 2013 | cbbank.com 1Q Results 2013 | cbbank.com $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14

1Q Results 2013 | cbbank.com --2013 & Beyond— Our Growth Strategy

1Q Results 2013 | cbbank.com Our Mission 42 “The mission of CVB Financial Corp. is to achieve superior performance and rank in the top 10% of all financial institutions in the nation in return on equity and return on assets. This will be achieved by delivering the finest in financial products and services through relationship banking commitments with businesses and professionals in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. It will be supported by an unqualified commitment to our five core values.”

1Q Results 2013 | cbbank.com Five Core Values 43 1. Financial Strength 2. Superior People 3. Customer Focus 4. Cost Effective Operation 5. Having Fun

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. 44

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 45

Three Areas of Growth 46 Acquisitions --Banks-- --Trust-- DeNovo Same Store Sales 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-- --Trust/Investment-- • Target size: AUM of $200 million to $1 billion • In California --Banking Teams-- • In- market & ‘new’ markets 1Q Results 2013 | cbbank.com

2013 Strategy: Key Objectives 48 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 1Q Results 2013 | cbbank.com