Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Forward-looking statements
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 o
Slide 3: CVB Financial Corp. (CVBF)
Total Assets: $6.5 Billion Gross Loans: $3.5 Billion Total Equity: $730 Million Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974. Serves 40 cities with 42 business financial centers and 5 commercial banking centers throughout the Inland
Slide 4: Experienced Leadership
Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 28 Years 6 Years Richard C. Thomas Executive Vice President Chief Financial Officer 2 Years 1 Year James F. Dowd Executive Vice President Chief Credit Officer 35 Years 4 Years David C. Harvey Executive Vice President
Slide 5: Who is … CVB Financial Corp.?
Who is … CVB Financial Corp.?
Slide 6: Largest Banks Headquartered in California
In millions Largest Banks Headquartered in California Rank Name Asset Size (3/31/12) In millions Wells Fargo $1,333,799 Union Bank $92,323 Bank of the West $62,343 First Republic Bank $29,719 OneWest Bank $25,010 City National Bank $24,038 East West Bank $21,750 SVB Financial $20,818 Cathay Bank $10
Slide 7: Bank Accomplishments & Ratings
• 140 Consecutive Quarters of Profitability • 90 Consecutive Quarters of Cash Dividends • #11 Forbes Magazine Best Banks (December 2011) • BauerFinancial Report Five Star Rating (September 2011) • Fitch Rating BBB (October 2011) Bank Accomplishments & Ratings
Slide 8: Our Markets
Our Markets
Slide 9: Business Financial Centers and Commercial Banking Centers
42 Business Financial Centers 5 Commercial Banking Centers 42 Business Financial Centers 5 Commercial Banking Centers Existing Existing Locations Locations
Slide 10: Deposits by Region
(000’s) # of Center Locations Total Deposits (3/31/11) Total Deposits (3/31/12) *Includes Customer Repurchase Agreements Deposits* Los Angeles County $1,932,495 Inland Empire (Riverside & San Bernardino Counties) $1,617,447 Central Valley $817,461 Orange County $545,356 Other $244,916 Total $5,157,6
Slide 11: Deposit Cost Comparison
Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 CVBF Peers Depo
Slide 12: Service Charge Income
3 Months 3/31/2012 3 Months 3/31/2011 % Change *Includes Customer Repurchase Agreements Service Charges on Deposit Accounts $4,124,231 $3,723,296 10.77% Service Charges/Total Deposits (Annualized) 0.32% 0.30% Service Charge Income* Average Cost of Deposits 0.27% 0.17%
Slide 13: Total Loans by Region
(000’s) Non-Covered Loans Covered Loans* Total Loans* % *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale) Total Loans as of 3/31/2012 Los Angeles County $1,115,483 $14,858 $1,130,341 32.32% Central Valley $586,531 $238,542 $807,241 23.59% Inland Empire (Riverside & San Bern
Slide 14: Adjusted Non-Covered Loans
*Removed Mortgage Pools and Construction Loans Adjusted Non-Covered Loans* $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 Q3 2009 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 $515 million $193 million Total Non-Covered Loans *Removed Mor
Slide 15: Loan Portfolio Composition
Source: Q1 2012 earnings release & company reports | *Non-covered loans Total Loans by Type Commercial RE Non-Owner Occupied 40.0% Consumer 1.6% SFR Mortgage 5.2% Municipal Lease Finance Receivables 3.6% Auto & Equipment 0.5% Dairy, Livestock & Agribusiness 9.1% Commercial & Industrial 15.6% Constru
Slide 16: Dairy & Livestock
Territory Number of Loan Outstandings Total Loan Outstandings Central Valley 74 $148,391 Inland Empire 57 $63,333 Idaho 21 $60,321 New Mexico 19 $38,212 Washington 15 $22,339 Other Areas 12 $10,953 Total 198 $343,549 Dairy: Real Estate 62 $151,714 Grand Total 260 $495,263 (000’s) Dairy & Livestock 1
Slide 17: Total Covered Loans
(000’s) Net of Discount $184 million $59.3 million Includes Loans Held for Sale $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q4 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Total Covered Loans
Slide 18: Non-Performing Assets
(000’s) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Non-Performing Loans OREO Non-Performing Assets Non-Covered
Slide 19: Loan Loss Allowance / Charge-Offs
Loan Loss Allowance/ Charge-Offs -- Non-Covered-- 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% -0.25% Allowance to Non-Covered Loans Net Charge-Offs / Average Loans (Non-Covered) 2007 2008 2009 2010 2011 2012
Slide 20: Classified Loans Non-Covered
$ $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 (000’s) - Classified Loans Non-Covered
Slide 21: Texas Ratio and Superior Credit Quality
Texas Ratio NPA’s/Loans & OREO Superior Credit Quality 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2007 2008 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 CVBF Peer 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2007 2008 2009 Q1 2010 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 CVBF Peer 2011 Sour
Slide 22: Profits
Profits
Slide 23: Net Income After Taxes
Net Income After Taxes Net Income (000’s) $- $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 $87.4 Million Net Income After Taxes $87.4 Million
Slide 24: Earnings
2008 2009 2010 2011 3/31/2012 (000’s) Earnings 3/31/2012 Net Interest Income $193,679 $222,264 $259,317 $234,681 $58,602 Provision for Credit Losses ($26,600) ($80,500) ($61,200) ($7,068) $0 Other Operating Income/Expenses (Net) ($81,331) ($52,515) ($111,378) ($106,809) ($24,956) Income Taxes ($22,6
Slide 25: 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 2007 2008 2009 2010 2011 2012 Net Interest Margin
Slide 26: Peer Profitability Metrics
Peer Profitability Metrics Return on Average Assets Return on Average Tangible Equity Net Interest Margin Source: Q1 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion Return on Average Assets Return on Aver
Slide 27: Capital
Capital
Slide 28: Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio March 31, 2012 Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Tier 1 Leverage Ratio Tangible Capital Ratio Core Tier 1 Capital Ratio 4.0% 8.0% 4.0% 4.0% 6.0% 10.0% 5.0% 5.0% 18.18% 19.44% 11.35% 10.38% 15.57% Capital Ratios
Slide 29: Peer Capital Metrics
Tier 1 Capital Ratio Total Risk – – Based Capital Ratio Tangible Common Equity/Tangible Assets 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 20.00% 10.00% 8.00% 6.00% 4.00% 3.00% 2.00% 5.00% 7.00% 9.00% 11.00% CVBF Peer CVBF Peer
Slide 30: Securities/Investments
Securities/Investments
Slide 31: Securities Portfolio
Source: Q1 2012 earnings release. As of 03/31/2012 securities held-to-maturity were valued at approximately $2.3 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.4 billion at 3/31/2012. The portfolio represents 36.5%
Slide 32: Securities Mark-to-Market
(000’s) *Securities Available For Sale $71,425 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 $71,425 Securities Portfolio* $2.4 Billion Mark-to-Market (Pre-tax)
Slide 33: CVBF Assets
33 *Includes overnight funds held at the Federal Reserve, due from Correspondent Banks, other short-term money market accounts or certificates of deposit Loans Securities Fed Balance* Other Goodwill & Intangibles 3/31/12 $6.5 Billion 12/31/06 $6.1 Billion Securities Fed Balance* Goodwill & Intangibl
Slide 34: CVBF Liabilities
12/31/06 $5.7 Billion 3/31/12 $5.8 Billion TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements CVBF Liabilities
Slide 35: Our Growth Strategy
Our Growth Strategy
Slide 36: 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. Our Vision
Slide 37: 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 Target Customer The best privately-held and/or family-owned businesses throughout Californ
Slide 38: Three Areas of Growth
Three Areas of Growth Same Store Sales DeNovo Acquisitions --Banks-- --Trust--
Slide 39: Acquisition Strategy
• Conventional M&A • Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) • Target size: AUM of $200 million to $1 billion • In California Acquisition Strategy --Banks-- --Trust/Investment--
Slide 40: Our 'Critical Few'
• Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition Our ‘Critical Few’
Slide 41: Total Loans
*Total Loans net of SJB purchase discount $2,000,000 $2,250,000 $2,500,000 $2,750,000 $3,000,000 $3,250,000 $3,500,000 $3,750,000 $4,000,000 $4,250,000 Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Total Loans* (000’s) *Total Loans net of SJB purchase d
Slide 42: 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 Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Non-Interest Bearing Deposits
Slide 43: Non-Interest Income
(000’s) *Net of Loss/Gain on OREO and Investment Securities Sales $5,000 $5,500 $6,000 $6,500 $7,000 $7,500 $8,000 $8,500 $9,000 $9,500 Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Non-Interest Income*
Slide 44: Expenses
2009 2010 2011 Q1 2012 Annualized Salaries and Employee Benefits $62,985 $69,419 $69,993 $67,251 Promotion & Entertainment $6,528 $6,084 $4,977 $5,031 Supplies $2,989 $3,314 $2,558 $2,369 Software Licenses & Maintenance $2,320 $5,031 $3,669 $3,656 Professional Services $6,965 $13,308 $15,031 $8,008
Slide 45: Our Strategic Focus
• Strong Capital position • Strong, disciplined credit underwriting/credit culture • Drive low-cost, sustainable deposits • Multiple forms of growth (don’t depend on one) • Same Store Sales • DeNovo • Acquisitions • Cross-sell: capture the whole wallet • Build new Fee Income opportunities • Long-ter
Slide 46: Copy of Presentation: www.cbbank.com
www.cbbank.com Copy of Presentation: