EX-99.1 2 d574940dex991.htm EX-99.1

2Q Results 2013 | cbbank.com July 2013 Exhibit 99.1

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 2Q Results 2013 | cbbank.com Safe Harbor

2Q Results 2013 | cbbank.com Total Assets: $6.4 Billion Gross Loans: $3.3 Billion Total Deposits (Including Repos): $5.3 Billion Total Equity: $752 Million Source: Q2 2013 earnings release & company filings. *non-covered loans 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 = 0.10% 3 CVB Financial Corp. (CVBF)

Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 29 Years 7 Years Richard C. Thomas Executive Vice President Chief Financial Officer 4 Years 3 Years James F. Dowd Executive Vice President Chief Credit Officer 36 Years 5 Years David C. Harvey Executive Vice President Chief Operations Officer 24 Years 4 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 2Q Results 2013 | cbbank.com Experienced Leadership

2Q 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. 1 Year 46 Steve Del Guercio 1 Year 51 Robert Jacoby 7 Years 71 Ray O’Brien 1 Year 56 San Vaccaro 13 Years 80 Chris Myers - CEO 7 Years 51 5

2Q Results 2013 | cbbank.com Who is CVB Financial Corp.

7 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 SVB Financial 23,102 8 East West Bank 22,796 9 Cathay Bank 10,521 10 CapitalSource Inc. 8,483 11 11 CVB Financial Corp. 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 Largest Banks Headquartered in California 2Q Results 2013 | cbbank.com $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Bank Accomplishments & Ratings 145 Consecutive Quarters of Profitability 95 Consecutive Quarters of Cash Dividends #6 Rated Bank: BankDirector Magazine Bank Performance Scorecard (July 2012) BauerFinancial Report Five Star Rating (July 2013) Fitch Rating BBB (October 2012) 2Q Results 2013 | cbbank.com

2Q Results 2013 | cbbank.com Our Markets

10 Existing Locations 40 Business Financial Centers 5 Commercial Banking Centers 3 CitizensTrust Locations 2Q Results 2013 | cbbank.com

2Q Results 2013 | cbbank.com (000’s) # of Center Locations Total Deposits (6/30/12) Total Deposits (6/30/13) Los Angeles County 17 $ 1,926,234 $ 1,892,050 Inland Empire (Riverside & San Bernardino Counties) 10 $ 1,652,751 $ 1,762,673 Central Valley 11 $ 792,246 $ 812,072 Orange County 7 $ 560,978 $ 600,373 Other 0 $ 234,277 $ 256,795 Total 45 $5,166,486 $5,323,963 *Includes Customer Repurchase Agreements; Balance as of balance sheet date Average Cost of Deposits (year to date) 0.16% 0.12% Deposits*

2Q Results 2013 | cbbank.com Non-Interest Bearing Deposits (000’s) 2007 2008 2009 2010 2011 2012 2013 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 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 $ $ $ $ $ $ $ $ $

2Q Results 2013 | cbbank.com 13 Source: Q2 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 03/31/13 Deposit Cost Comparison 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Peers CVBF Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 2013

2Q Results 2013 | cbbank.com Total Loans* as of 6/30/2013 (000’s) Non- Covered Loans* Covered Loans* Total Loans* % Los Angeles County $ 1,187,442 $ 13,838 $ 1,201,280 35.65% Central Valley $ 675,428 $ 165,933 $ 841,361 24.97% Inland Empire (Riverside & San Bernardino Counties) $ 587,831 $ 998 $ 588,829 17.48% Orange County $ 466,674 $ 0 $ 466,674 13.85% Other $ 260,596 $ 10,600 $ 271,196 8.05% Total $3,177,971 $191,369 $3,369,340 100.00% *Prior to MTM discount, loan fees and loan loss reserve (Includes loans Held for Sale)

(000’s) 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2012 2011 2010 2009 2Q Results 2013 | cbbank.com Total Non-Covered Loans $ $ $ $ $ $ $ $ $ $

2Q Results 2013 | cbbank.com 16 Source: Q2 2013 earnings release & company reports |Covered & Non Covered Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Receivables, 3.1% Dairy, Livestock & Agribusiness, 7.8% Commercial & Industrial, 16.3% Construction RE, 1.4% Commercial RE Owner Occupied, 23.4% Commercial RE- Non-Owner, Multi-Family, 3.5% SFR Mortgage, 5.4% Other, 1.8% 37.3% -

• Residential Real Estate • Multi-Family • Asset Based Lending 17 New/Enhanced Lending Initiatives 2Q Results 2013 | cbbank.com

2Q Results 2013 | cbbank.com Other Lending Areas For Future Consideration/Expansion • SBA 7A • Residential and Commercial Construction • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking 18

2Q Results 2013 | cbbank.com (000’s) Net of Discount 184 million 17.5 million Includes Loans Held for Sale Total Covered Loans 500,000 400,000 300,000 200,000 100,000 - 800,000 700,000 600,000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 $ $ $ $ $ $ $ $ $ $ $

2Q Results 2013 | cbbank.com Non-Performing Assets Non-Covered 20 (000’s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 OREO Non Performing Loans - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 $ $ $ $ $ $ $ $ $ $ $-

21 (000’s) 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2012 2011 2010 2009 2Q Results 2013 | cbbank.com Classified Loans Non-Covered $ $ $ $ $ $ $ $ $

Profits 2Q Results 2013 | cbbank.com

2Q Results 2013 | cbbank.com Net Income Net Income After Taxes 20.4 million FHLB prepayment charge (000’s) 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 2013 $ $ $ $ $ $ $ $ $ $ $ - $ $

(000’s) 2009 2010 2011 2012 6 Months to 6/30/2013 Net Interest Income $222,264 $259,317 $234,681 $236,950 $107,184 Provision for Credit Losses ($80,500) ($61,200) ($7,068) $ 0 6,200 Other Operating Income/Expenses (Net) ($52,515) ($111,378) ($106,809) ( $ 122,257) ($44,606) Income Taxes ($23,830) ($23,804) ($39,071) ( $ 37,413) ($22,697) Net Profit After Tax $65,419 $62,935 $81,733 $77,280 $46,081 24 2Q Results 2013 | cbbank.com Earnings $

2Q Results 2013 | cbbank.com 25 *Normalized excludes accelerated accretion on covered loans Normalized* Net Interest Margin 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 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

2Q Results 2013 | cbbank.com Expenses

2Q Results 2013 | cbbank.com Expenses 27 *Includes 20.4 million FHLB prepayment charge (000’s) 2010 2011 2012 6 Months to 6/30/2013 Salaries & Employee Benefits 69,419 69,993 68,496 $34,388 Promotion & Entertainment 6,084 4,977 4,869 $2,398 Stationary & Supplies 4,965 3,645 3,592 $1,848 Software Licenses & Maintenance 5,031 3,669 4,269 $2,315 Professional Services 13,308 15,031 6,249 $2,983 OREO Expense 7,490 6,729 2,146 $363 Other 62,195 36,981 48,539* $14,751 Total: 168,492 141,025 138,160 $59,046 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2Q Results 2013 | cbbank.com Bank Borrowings

2Q Results 2013 | cbbank.com Type of Debt Balance at 06/30/2013 Interest Rate FHLB Advance* 199,070 4.52% Fixed Other Borrowings (overnight) 0 Subordinated Debentures CVB Statutory Trust III 25,774 3-Month LIBOR + 1.38% Total $224,844 Outstanding Debt as of 06/30/2013 29 (000’s) $ $ $ *FHLB Advance maturity is November, 28 2016. As of 7/16/13, prepayment penalty was estimated at 22-23 million. $

Capital 2Q Results 2013 | cbbank.com

2Q 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% 31 * CVB Financial Corp. – Consolidated

2Q Results 2013 | cbbank.com Securities & Investments

Source: Q2 2013 earnings release. As of 6/30/2013 securities held-to-maturity were valued at approximately $ 1.9 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.43 billion at 6/30/2013. The portfolio represents 37.9% 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 Yield on securities portfolio = 2.24% for the 2nd Quarter 2013 Securities Portfolio* -- 2.43 Billion-- CMO’s / REMIC’s 17.58% Trust Preferred 0.20% Municipal Bonds 24.75% Government Agency & GSEs 14.85% MBS 42.62% 2Q Results 2013 | cbbank.com $

Securities Portfolio* 2.43 Billion Mark-to-Market (Pre-tax) (000’s) *Securities Available For Sale 6,927 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 2Q Results 2013 | cbbank.com $ $ $ $ $ $ $ $ $ $ $ $

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 Loans, 50.7% Securities, 37.9% Goodwill & Intangibles 0.9% Other, 7.9% Fed Balance*, 2.6% Fed Balance*, 2.4% Other, 4.6% Goodwill & Intangibles 0.7% Loans, 49.9% Securities 42.4% 12/31/06 6.1 Billion 6/30/13 6.4 Billion 2Q Results 2013 | cbbank.com $ $

2Q Results 2013 | cbbank.com Yield on Securities vs. Yield on Loans *Excluding Discount Accretion 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 Yield on Loans* Yield on Securities

2Q Results 2013 | cbbank.com CVBF Liabilities *Includes Customer Repurchase Agreements Total Deposits*, 61.4% Borrowings, 36.0% Junior subordinated Debentures, 1.9% Other Liabilities, 0.7% Other Liabilities, 2.2% Borrowings, 3.5% Total Deposits, 93.8% Junior subordinated Debentures, 0.5% 12/31/06 5.7 Billion $ 6/30/13 5.5 Billion $

Our Growth Strategy 2Q Results 2013 | cbbank.com

2Q Results 2013 | cbbank.com 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. 39 Our Vision

2Q 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 40 $

2Q Results 2013 | cbbank.com 41 DeNovo Same Store Sales Acquisitions --Banks-- --Trust-- Three Areas of Growth

2Q 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 $ $ $ $

2Q 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

2Q Results 2013 | cbbank.com Copy of presentation at www.cbbank.com