EX-99.1 2 d938554dex991.htm EX-99.1

1Q Results 2015 | cbbank.com June 2015 Exhibit 99.1

1Q Results 2015 | 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 the Company’s future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic and market conditions and events and the impact they may have on us and our customers; our ability to attract deposits and other sources of funding or 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 or sales activity; changes in the financial performance and/or condition of our borrowers or certain key vendors or counterparties; changes in the level of nonperforming assets and any accompanying reserves and/or charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws, regulations and relevant judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, bank capital levels, securities and securities trading and hedging, employment, executive compensation, insurance, vendor management and information security) with which we and our subsidiaries must or believe we should 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 rates 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 or money; 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 the perceived overall value of these products and services by customers and potential customers; the Company’s relationships with and reliance upon vendors with respect to the operation of certain of the Company key internal and external systems and applications; changes in consumer spending, borrowing and savings preferences or 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, banks and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy or local or regional 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, compliance and regulatory changes and 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, 2014, 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 2015 | cbbank.com Total Assets: $7.4 Billion Gross Loans: $3.7 Billion Total Deposits (Including Repos): $6.5 Billion Total Equity: $897 Million Source: Q1 2015 earnings release & company filings. CVB Financial Corp. (CVBF) Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974 Locations in 43 cities with 40 business financial centers and 7 commercial banking centers and 3 trust office locations serving the Inland Empire, LA County, Orange County, San Diego County, Ventura County and the Central Valley of California 3

1Q Results 2015 | cbbank.com Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 Years Richard C. Thomas Executive Vice President Chief Financial Officer 5 Years 4 Years James F. Dowd Executive Vice President Chief Credit Officer 38 Years 7 Years David C. Harvey Executive Vice President Chief Operations Officer 25 Years 5 Years David A. Brager Executive Vice President Sales Division 27 Years 12 Years R. Daniel Banis Executive Vice President CitizensTrust 33 Years 3 Years Yamynn DeAngelis Executive Vice President Chief Risk Officer 36 Years 28 Years Richard Wohl Executive Vice President General Counsel 27 Years 4 Years 4

1Q Results 2015 | cbbank.com Board of Directors Name CVB Experience Age Ray O’Brien - Chairman 3 Years 58 George Borba Jr. - Vice Chairman 2 Years 47 Steve Del Guercio 2 Years 53 Robert Jacoby 10 Years 73 Hal Oswalt 1 Year 67 San Vaccaro 16 Years 82 Chris Myers - CEO 9 Years 53 5

1Q Results 2015 | cbbank.com Who is CVB Financial Corp.?

1Q Results 2015 | cbbank.com Largest Banks Headquartered in California 7 Source: SNL Financial In millions Rank Name Asset Size (3/31/15) 1 Wells Fargo $1,737,737 2 Union Bank $113,698 3 Bank of the West $70,938 4 First Republic Bank $51,066 5 SVB Financial $39,696 6 City National Bank $32,699 7 East West Bank $29,907 8 OneWest Bank $21,307 9 Pacific Western Bank $16,644 10 Cathay Bank $11,910 11 CVB Financial Corp. $7,443 12 BBCN $7,268 13 Banc of California, Inc. $6,097 14 Opus Bank $5,562 15 Farmers & Merchants of Long Beach $5,560 16 Westamerica Bank $5,036

1Q Results 2015 | cbbank.com Bank Accomplishments & Ratings 152 Consecutive Quarters of Profitability 102 Consecutive Quarters of Cash Dividends #4 Rated Bank: BankDirector Magazine Bank Performance Scorecard (August 2014) BauerFinancial Report Five Star Rating (September 2014) 78 Consecutive Quarters Fitch Rating BBB (September 2014)

1Q Results 2015 | cbbank.com Our Markets

1Q Results 2015 | cbbank.com Existing Locations 10 40 Business Financial Centers 7 Commercial Banking Centers 3 CitizensTrust Locations Corporate Office Business Financial Centers Commercial Banking Centers CitizensTrust San Diego – NEW Opened 06/02/2014

1Q Results 2015 | cbbank.com What’s New?

1Q Results 2015 | cbbank.com San Diego County 12 Opened June 2014 | 6 Associates

1Q Results 2015 | cbbank.com Ventura County 13 Opened January 2015 | 6 Associates

1Q Results 2015 | cbbank.com Deposits* (000’s) # of Center Locations Total Deposits (3/31/14) Total Deposits (3/31/15) Los Angeles County 18 $1,959,624 $2,347,804 Inland Empire (Riverside & San Bernardino Counties) 9 $1,948,785 $1,992,402 Central Valley 9 $870,202 $909,278 Orange County 9 $705,761 $907,308 Other 2 $253,216 $301,336 Total 47 $5,737,588 $6,458,128 *Includes Customer Repurchase Agreements Average Cost of Deposits (Year-to-Date) 0.12% 0.11%

1Q Results 2015 | cbbank.com Total Deposits* $500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 $5,500,000 $6,500,000 $7,500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 Non-Int Bearing Dep Interest Bearing Deposits* 15 (000’s) *Interest Bearing Deposits includes REPOs

1Q Results 2015 | cbbank.com Deposit Cost Comparison 16 Source: Q1 2015 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. Peer Data is as of 12/31/14 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 CVBF Peers

1Q Results 2015 | cbbank.com *Prior to MTM discount, loan fees, loan loss reserve and loans Held for Sale Starting in the 4 th quarter of 2014, covered and non-covered loans are combined Total Loans* (000’s) # of Center Locations Average Loans per Location Total Loans* (3/31/2015) Los Angeles County 18 $83,955 $1,511,185 Central Valley 9 $83,002 $747,017 Inland Empire (Riverside & San Bernardino Counties) 9 $71,246 $641,214 Orange County 9 $59,327 $533,943 Other 2 $148,864 $297,727 Total 47 $79,385 $3,731,086

1Q Results 2015 | cbbank.com $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 $4,000,000 $4,200,000 $4,400,000 Q1 Q2Q3 Q4 Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 Total Loans* Total Loans* (000’s) *Starting in the 4 th quarter of 2014, covered and non-covered loans are combined (Purchase Credit Impaired or PCI) Before deferred loan fees, discount on PCI loans, and loans held for sale Includes covered and non-covered loans for all periods presented

1Q Results 2015 | cbbank.com 19 Source: Q1 2015 earnings release & company reports Starting in the 4 th quarter of 2014, covered and non-covered loans are combined Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Receivables, 2.0% Dairy, Livestock & Agribusiness, 4.7% Commercial & Industrial, 11.2% Construction RE, 1.5% Commercial RE - Owner Occupied, 24.8% Commercial RE- Non-Owner, 42.4% Multi -Family, 5.7% SFR Mortgage, 5.5% Other, 2.2%

1Q Results 2015 | cbbank.com Credit Quality

1Q Results 2015 | cbbank.com Non-Performing Assets* $- $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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 Non-Performing Loans OREO 21 (000’s) *Non-Covered assets | Starting in the 4 th quarter of 2014, covered and non-covered assets are combined

1Q Results 2015 | cbbank.com Classified Loans* $- $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 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 22 (000’s) *Non-Covered loans| Starting in the 4 th quarter of 2014, covered and non-covered loans are combined

1Q Results 2015 | cbbank.com Loans: Net Charge-Offs* 23 (000’s) *Non-Covered | Starting in the 4 th quarter of 2014, covered and non-covered loans are combined $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2009 2010 2011 2012 2013 2014 Q1 2015 Net Charge - Offs (by year)

1Q Results 2015 | cbbank.com Profits

1Q Results 2015 | cbbank.com Net Income Net Income After Taxes $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge $- $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500 $30,000 $32,500 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 2009 2010 2011 2012 2013 2014 2015

1Q Results 2015 | cbbank.com Earnings (000’s) 2011 2012 2013 2014 3 Months to 03/31/2015 Net Interest Income $234,681 $236,950 $216,266 $236,514 $61,009 Provision for Loan Losses ($7,068) $0 $16,750 $16,100 $0 Other Operating Income/Expenses (Net) ($106,809) ($122,257) ($88,741) ($89,817) ($36,461) Income Taxes ($39,071) ($37,413) ($48,667) ($58,776) ($8,715) Net Profit After Tax $81,733 $77,280 $95,608 $104,021 $15,833 $13.9 million FHLB prepayment charge 26

Net Interest Margin 27 *Normalized tax-equivalent excludes accretion on covered loans (Purchase Credit Impaired) Normalized* 2.92% 3.92% 3.53% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% Q1Q2 Q3Q4 Q1Q2Q3Q4 Q1 Q2Q3 Q4Q1Q2 Q3Q4 Q1Q2Q3 Q4 Q1Q2 Q3 Q4 Q1Q2 Q3Q4Q1 Q2Q3 Q4Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q Results 2015 | cbbank.com

Efficiency & Expenses 1Q Results 2015 | cbbank.com

Efficiency Ratio 29 $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 1Q Results 2015 | cbbank.com 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Efficiency Ratio

Non-Interest Expense as a % of Average Assets 30 2.42% $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 Non-Interest Expense as a % of Average Assets 1Q Results 2015 | cbbank.com 2015

1Q Results 2015 | cbbank.com Capital

Capital Ratios 32 * CVB Financial Corp. - Consolidated Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Tier 1 Leverage Ratio Common Equity Tier 1 Capital Ratio Tangible Capital Ratio Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2015* 6.0% 8.0% 4.0% 4.5% 8.0% 10.0% 5.0% 6.5% 17.35% 18.60% 10.94% 16.81% 11.13%

1Q Results 2015 | cbbank.com Securities & Investments

1Q Results 2015 | cbbank.com Source: Q1 2015 earnings release. As of 3/31/2015 securities held-to-maturity were valued at approximately $1.5 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $3.0 billion at 3/31/2015. The portfolio represents 40.71% 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 4.5% of the municipal bond portfolio Securities portfolio totaled $3.0 billion at 3/31/2015. The portfolio represents 40.71% 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 4.5% of the municipal bond portfolio Securities Portfolio* --$3.0 Billion-- Yield on securities portfolio = 2.59% for the 1st Quarter 2015 CMO's / REMIC's 9.52% Trust Preferred 0.17% Municipal Bonds 18.16% Government Agency & GSEs 10.89% MBS 61.26%

1Q Results 2015 | cbbank.com -$40,000 -$20,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Securities Portfolio* $3.0 Billion Mark-to-Market (Pre-tax) (000’s) *Securities Available For Sale $73,846

1Q Results 2015 | cbbank.com CVBF Assets 36 *Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit Securities 40.7% Fed Balance* 4.2% Other 5.0% Goodwill & Intangibles 1.0% Loans, net 49.1% 3/31/15 $7.4 Billion Securities 42.4% Fed Balance* 2.4% Other 4.6% Goodwill & Intangibles 0.7 % Loans, net 49.9% 12/31/06 $6.1 Billion

1Q Results 2015 | 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 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 Yield on Loans* Yield on Securities

1Q Results 2015 | cbbank.com CVBF Liabilities 12/31/06 $5.7 Billion 3/31/15 $6.5 Billion *Includes Customer Repurchase Agreements Other Liabilities 0.7% Junior subordinated Debentures 1.9% Other Liabilities 0.95% Junior subordinated Debentures 0.39% Borrowings 0.0% Total Deposits* 61.4% Borrowings 36.0% Total Deposits* 98.66%

1Q Results 2015 | cbbank.com Our Growth Strategy

Our Vision Citizens Business Bank will strive to become the premier financial services company operating throughout the state of California, servicing the comprehensive financial needs of successful small to medium sized businesses and their owners. 40 1Q Results 2015 | 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 41 1Q Results 2015 | cbbank.com

1Q Results 2015 | cbbank.com Three Areas of Growth 42 Same Store Sales DeNovo Acquisitions --Banks-- --Trust--

1Q Results 2015 | 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 2015 | cbbank.com Our ‘Critical Few’ • Execute on DeNovo Growth Initiatives • Pursue Strategic Acquisitions • Quality Loan Growth • Provide Customer Solutions Through Technology • Expand Market Share Through Same Store Sales 1Q Results 2015 | cbbank.com

1Q Results 2015 | cbbank.com Copy of presentation at www.cbbank.com