EX-99.1 2 d620896dex991.htm EX-99.1

October 2013 3Q Results 2013 | cbbank.com Exhibit 99.1

3Q 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; 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, 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.

3Q Results 2013 | cbbank.com Total Assets: $6.6 Billion Gross Loans: $3.4 Billion Total Deposits (Including Repos): $5.5 Billion Total Equity: $768 Million Source: Q3 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 39 business financial centers and 6 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

3Q 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 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 26 Years 11 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

3Q Results 2013 | cbbank.com Board of Directors Name CVB Experience Age Ronald Kruse – Chairman 38 Years 74 Linn Wiley - Vice Chairman 21 Years 75 George Borba Jr. 1 Year 46 Steve Del Guercio 1 Year 52 Robert Jacoby 7 Years 72 Ray O’Brien 1 Year 56 San Vaccaro 13 Years 80 Chris Myers - CEO 7 Years 51 5

Who is CVB Financial Corp. 3Q Results 2013 | cbbank.com

3Q Results 2013 | cbbank.com Largest Banks Headquartered in California 7 Source: SNL Financial Rank Name Asset Size (6/30/13) 1 Wells Fargo $1,440,563 2 Union Bank $102,279 3 Bank of the West $63,530 4 First Republic Bank $37,313 5 City National Bank $27,380 6 OneWest Bank $25,421 7 East West Bank $23,308 8 SVB Financial $22,154 9 Cathay Bank $10,603 10 CapitalSource Inc. $8,679 11 Pacific Western Bank $6,709 12 12 CVB Financial Corp. CVB Financial Corp. $6,426 $6,426 13 BBCN $5,863 14 Farmers & Merchants of Long Beach $5,146 15 Westamerica Bank $4,814 In millions

3Q Results 2013 | cbbank.com Bank Accomplishments & Ratings 146 Consecutive Quarters of Profitability 96 Consecutive Quarters of Cash Dividends #8 Rated Bank: BankDirector Magazine Bank Performance Scorecard (August 2013) BauerFinancial Report Five Star Rating (July 2013) Fitch Rating BBB (September 2013)

Our Markets 3Q Results 2013 | cbbank.com

3Q Results 2013 | cbbank.com 10 39 Business Financial Centers 6 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego Opening February 2014 Existing Locations

3Q Results 2013 | cbbank.com Deposits* (000’s) # of Center Locations Total Deposits (9/30/12) Total Deposits (9/30/13) Los Angeles County 17 $1,962,327 $1,913,762 Inland Empire (Riverside & San Bernardino Counties) 9 $1,603,850 $1,763,235 Central Valley 11 $830,490 $863,738 Orange County 8 $586,297 $662,013 Other 0 $246,940 $258,621 Total 45 $5,229,904 $5,461,369 *Includes Customer Repurchase Agreements; Balance as of balance sheet date 0.12% 0.15% Average Cost of Deposits (year to date)

3Q Results 2013 | cbbank.com Non-Interest Bearing Deposits (000’s) $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

3Q Results 2013 | cbbank.com Deposit Cost Comparison 13 Source: Q3 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 06/30/13 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 2012 2013 CVBF Peers

3Q Results 2013 | cbbank.com Total Loans* as of 9/30/2013 *Prior to MTM discount, loan fees and loan loss reserve (Includes loans Held for Sale) (000’s) Non- Covered Loans* Covered Loans* Total Loans* % Los Angeles County $1,242,392 $10,580 $1,252,972 36.13% Central Valley $689,656 $156,076 $845,732 24.38% Inland Empire (Riverside & San Bernardino Counties) $605,779 $962 $606,741 17.49% Orange County $490,385 $0 $490,385 14.14% Other $262,259 $10,245 $272,504 7.86% Total $3,290,471 $177,863 $3,468,334 100%

3Q Results 2013 | cbbank.com Total Non-Covered Loans (000’s) Net of deferred fees $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 $3,200,000 $3,400,000 $3,600,000 $3,800,000

3Q Results 2013 | cbbank.com 16 Source: Q3 2013 earnings release & company reports |Covered & Non Covered Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Receivables, 2.9% Dairy, Livestock & Agribusiness, 7.7% Commercial & Industrial, 15.3% Construction RE, 1.4% Commercial RE - Owner Occupied, 22.9% Commercial RE- Non-Owner, 38.5% Multi -Family, 4.1% SFR Mortgage, 5.5% Other, 1.7%

3Q Results 2013 | cbbank.com New/Enhanced Lending Initiatives • Residential Real Estate • Multi-Family • Asset Based Lending 17

Other Lending Areas For Future Consideration/Expansion • Residential and Commercial Construction • Medical Equipment/Office • Equipment Lending & Leasing • Private Banking 18 3Q Results 2013 | cbbank.com

3Q Results 2013 | cbbank.com Total Covered Loans Net of Discount Net of Discount Includes Loans Held for Sale $184 million $184 million $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 (000’s) $14.5 million $14.5 million

Non-Performing Assets Non-Covered 20 (000’s) $ $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 Non Performing Loans OREO - - 3Q Results 2013 | cbbank.com Q3

21 Classified Loans Non-Covered 3Q Results 2013 | cbbank.com $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 (000’s)

Profits 3Q Results 2013 | cbbank.com

Net Income (000’s) Net Income After Taxes $20.4 million FHLB prepayment charge 3Q Results 2013 | cbbank.com $- $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 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 2012 2013

3Q Results 2013 | cbbank.com Earnings 24 (000’s) 2009 2010 2011 2012 9 Months to 9/30/2013 Net Interest Income $222,264 $259,317 $234,681 $236,950 $161,157 Provision for Loan Losses ($80,500) ($61,200) ($7,068) $0 ($9,950) Other Operating Income/Expenses (Net) ($52,515) ($111,378) ($106,809) ($122,257) ($65,363) Income Taxes ($23,830) ($23,804) ($39,071) ($37,413) ($35,424) Net Profit After Tax $65,419 $62,935 $81,733 $77,280 $70,320

Net Interest Margin 25 *Normalized excludes accelerated accretion on covered loans Normalized* 3Q Results 2013 | cbbank.com 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 Q3 2007 2008 2009 2010 2011 2012 2013

Expenses 3Q Results 2013 | cbbank.com

3Q Results 2013 | cbbank.com Expenses 27 *Includes $20.4 million FHLB prepayment charge (000’s) 2010 2011 2012 9 Months to 9/30/2013 Salaries & Employee Benefits $69,419 $69,993 $68,496 $52,777 Promotion & Entertainment $6,084 $4,977 $4,869 $3,503 Stationary & Supplies $4,965 $3,645 $3,592 $2,681 Software Licenses & Maintenance $5,031 $3,669 $4,269 $3,392 Professional Services $13,308 $15,031 $6,249 $4,299 OREO Expense $7,490 $6,729 $2,146 $384 Other $62,195 $36,981 $48,539* $17,724 Total: $168,492 $141,025 $138,160 $84,760

Bank Borrowings 3Q Results 2013 | cbbank.com

Type of Debt Balance at 09/30/2013 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 09/30/2013 29 (000’s) *FHLB Advance maturity is November, 28 2016. As of 10/23/13, prepayment penalty was estimated at $22.1 million. 3Q Results 2013 | cbbank.com

Capital 3Q Results 2013 | cbbank.com

Capital Ratios 31 3Q Results 2013 | cbbank.com Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio June 30, 2013* Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.13% Total Risk-based Capital Ratio 8.0% 10.0% 19.39% Tier 1 Leverage Ratio 4.0% 5.0% 11.55% Tangible Capital Ratio 10.91 % Core Tier 1 Capital Ratio 17.49% * CVB Financial Corp. – Consolidated

Securities & Investments 3Q Results 2013 | cbbank.com

3Q Results 2013 | cbbank.com *Securities Available For Sale Securities portfolio totaled $2.62 billion at 9/30/2013. The portfolio represents 39.9% 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. 98% 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 = 2.38% for the 3 rd Quarter 2013 Securities Portfolio* --$2.62 Billion-- REMIC's 14.87% 0.18% Source: Q3 2013 earnings release. As of 9/30/2013 securities held-to-maturity were valued at approximately $1.8 million | Yield on securities represents the fully taxable equivalent Municipal Bonds 22.95% Government Agency & GSEs 12.72% MBS 49.28% CMO's / Trust Preferred

Securities Portfolio* $2.62 Billion Mark-to-Market (Pre-tax) *Securities Available For Sale $7,348 3Q Results 2013 | cbbank.com $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 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 Sept 13 (000’s)

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 9/30/13 $6.6 Billion 12/31/06 $6.1 Billion 3Q Results 2013 | cbbank.com

3Q 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% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 Yield on Loans* Yield on Securities

3Q Results 2013 | cbbank.com CVBF Liabilities 12/31/06 $5.7 Billion 9/30/13 $5.8 Billion *Includes Customer Repurchase Agreements Junior subordinated Debentures, 0.5% Other Liabilities, 1.0% Junior subordinated Debentures, 1.9% Other Liabilities, 0.7% Total Deposits*, 61.4% Borrowings, 36.0% Total Deposits*, 94.3% Borrowings, 4.2%

Our Growth Strategy 3Q 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. 3Q Results 2013 | cbbank.com 39 Our Vision

3Q 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

3Q Results 2013 | cbbank.com Three Areas of Growth 41

• Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) Acquisition Strategy • Target size: AUM of $200 million to $1 billion • In California • In- market & ‘new’ markets 3Q Results 2013 | cbbank.com --Banks-- --Trust/Investment-- --Banking Teams--

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 3Q Results 2013 | cbbank.com

Copy of presentation at www.cbbank.com 3Q Results 2013 | cbbank.com