Slide 1: 1Q Results 2015
May 2015 1Q Results 2015 | cbbank.com
Slide 2: Safe Harbor
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 regard
Slide 3: CVB Financial Corp. (CVBF)
CVB Financial Corp. (CVBF) Total Assets: $7.4 Billion Gross Loans: $3.7 Billion Total Deposits (Including Repos): $6.5 Billion Total Equity: $897 Million Largest financial institution headquartered in the Inland Empire region of Southern California. Founded in 1974 Locations in 43 cities with 40 bus
Slide 4: Experienced Leadership
Experienced Leadership Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 31 Years 9 Years Executive Vice President Richard C. Thomas 5 Years 4 Years Chief Financial Officer Executive Vice President James F. Dowd 38 Years 7 Years Chief Credit Officer Executive Vice Pr
Slide 5: Board of Directors
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 1Q Results 2015 | cbbank.com 5
Slide 6: Who is CVB Financial Corp.?
Who is CVB Financial Corp.? 1Q Results 2015 | cbbank.com
Slide 7: Largest Banks Headquartered in California
Largest Banks Headquartered in California Rank Name Asset Size (12/31/14) In millions 1 Wells Fargo $1,687,155 2 Union Bank $113,120 3 Bank of the West $71,682 4 First Republic Bank $48,353 5 SVB Financial $39,345 6 City National Bank $32,610 7 East West Bank $28,738 8 OneWest Bank $21,805 9 Pacific
Slide 8: Bank Accomplishments & Ratings
Bank Accomplishments & Ratings 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 20
Slide 9: Our Markets
Our Markets 1Q Results 2015 | cbbank.com
Slide 10: Existing Locations
Existing Locations 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
Slide 11: What's New?
What’s New? 1Q Results 2015 | cbbank.com
Slide 12: San Diego County
San Diego County Opened June 2014 | 6 Associates 1Q Results 2015 | cbbank.com 12
Slide 13: Ventura County
Ventura County Opened January 2015 6 Associates 1Q Results 2015 | cbbank.com 13
Slide 14: Deposits
Deposits* # of Center Total Deposits Total Deposits (000’s) Locations (3/31/14) (3/31/15) Los Angeles County 18 $1,959,624 $2,347,804 Inland Empire 9 $1,948,785 $1,992,402 (Riverside & San Bernardino Counties) Central Valley 9 $870,202 $909,278 Orange County 9 $705,761 $907,308 Other 2 $253,216 $301
Slide 15: Total Deposits
Total Deposits* $7,500,000 $6,500,000 $5,500,000 $4,500,000 $3,500,000 $2,500,000 $1,500,000 $500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2010 2011 2012 2013 2014 2015 Non-Int Bearing Dep Interest Bearing Deposits* *Interest Bearing Deposits includes REPOs 1Q Resul
Slide 16: Deposit Cost Comparison
Deposit Cost Comparison 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 as of 12/31/2014 1.00% 0.90% CVBF Peers 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Q1 Q2 Q3 Q4 Q1
Slide 17: Total Loans
Total Loans* Average # of Center Total Loans* Loans per Locations (3/31/2015) (000’s) Location Los Angeles County 18 $83,955 $1,511,185 Central Valley 9 $83,002 $747,017 Inland Empire 9 $71,246 $641,214 (Riverside & San Bernardino Counties) Orange County 9 $59,327 $533,943 Other 2 $148,864 $297,727
Slide 18: Total Loans
Total Loans* $4,400,000 $4,200,000 $4,000,000 $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 (000’s) 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* *Starting in the 4th quarter of
Slide 19: Loan Portfolio Composition
Loan Portfolio Composition Total Loans by Type Municipal Lease Finance Other, 2.2% Receivables, Dairy, Livestock & 2.0% Agribusiness, SFR Mortgage, 4.7% 5.5% Commercial & Industrial, 11.2% Multi-Family, 5.7% Construction RE, 1.5% Commercial RE- Non-Owner, Commercial RE 42.4% Owner Occupied, 24.8% So
Slide 20: Credit Quality
Credit Quality 1Q Results 2015 | cbbank.com
Slide 21: Non-Performing Assets
Non-Performing Assets* $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 (000’s) 2009 2010 2011 2012 2013 2014 2015 Non-Performing Loans OREO *Non-Covered assets | Starting in the 4th quarter of 2014, covered a
Slide 22: Classified Loans
Classified Loans* $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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (000’s) 2009 2010 2011 2012 2013 2014 2015 *Non-Covered loans | Starting in the 4th quarter of 2014, covered and non-covered loans a
Slide 23: Loans: Net Charge-Offs
Loans: Net Charge-Offs* $0 2009 2010 2011 2012 2013 2014 Q1 2015 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 (000’s) Net Charge-Offs (by year) *Non-Covered | Starting in the 4th quarter of 2014, covered and non-covered loans are combined 1Q Results 2015 | cbbank.com 23
Slide 24: Profits
Profits 1Q Results 2015 | cbbank.com
Slide 25: Net Income
Net Income $32,500 $30,000 $27,500 $25,000 $22,500 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $- 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 (000’s) 2009 2010 2011 2012 2013 2014 2015 $20.4 million FHLB prepayment charge Net Income After Taxes $13.9 m
Slide 26: Earnings
Earnings 3 Months to (000’s) 2011 2012 2013 2014 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 ($106,809) ($122,257) ($88,741) ($89,817) ($36,461) Income/Expenses (Net) Income Taxes ($39,071) ($37,4
Slide 27: Net Interest Margin
Net Interest Margin 4.25% 3.92% 4.00% 3.75% 3.50% 3.53% 3.25% 2.92% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 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 2007 2008 2009 2010 2011 2012 2013 2014 2015 Normalized* *Normalized tax-equivalent exclude
Slide 28: Efficiency & Expenses
Efficiency & Expenses 1Q Results 2015 | cbbank.com
Slide 29: Efficiency Ratio
Efficiency Ratio 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Efficiency Ratio $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 1Q Results 2015 | cbbank.com 29
Slide 30: Non-Interest Expense as a % of Average Assets
Non-Interest Expense as a % of Average Assets 3.50% 3.00% 2.42% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Non-Interest Expense as a % of Average Assets $20.4 million FHLB prepayment charge $13.9 million FHLB prepayment charge 1Q Results
Slide 31: Capital
Capital 1Q Results 2015 | cbbank.com
Slide 32: Capital Ratios
Capital Ratios Regulatory Regulatory December 31, 2014* Minimum Ratio Well-Capitalized Ratio Tier 1 Risk-based Capital Ratio 4.0% 6.0% 16.99% Total Risk-based Capital Ratio 8.0% 10.0% 18.24% Tier 1 Leverage Ratio 4.0% 5.0% 10.86% Tangible Capital Ratio 10.97% Core Tier 1 Capital Ratio 16.46% * CVB F
Slide 33: Securities & Investments
Securities & Investments 1Q Results 2015 | cbbank.com
Slide 34: Securities Portfolio
Securities Portfolio* - $3.0 Billion - Trust Preferred Yield on securities 0.17% Municipal portfolio = 2.59% CMO’s / Bonds 18.16% for the 1st Quarter 2015 REMIC’s 9.52% Government Agency & GSEs 10.89% MBS 61.26% Securities portfolio totaled $3.0 billion at 3/31/2015. The portfolio represents 40.71%
Slide 35: Securities Portfolio
Securities Portfolio* $3.0 Billion Mark-to-Market (Pre-tax) $100,000 $73,846 $80,000 $60,000 $40,000 $20,000 $0 -$20,000 -$40,000 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 (000’s) *Securities Available For Sale 1Q Results 2015 | cbbank.com
Slide 36: CVBF Assets
CVBF Assets 12/31/06 $6.1 Billion 3/31/15 $7.4 Billion Loans, Securities net 42.4% 49.9% Loans, Securities net 49.1% 40.7% Goodwill & Fed Intangibles Balance* 0.7% Other 4.6% 2.4% Fed Goodwill & Balance* Intangibles 4.2% 1.0% Other 5.0% *Includes overnight funds held at the Federal Reserve, Interest
Slide 37: Yield on Securities vs. Yield on Loans
Yield on Securities vs. Yield on Loans 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 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 *Excluding Discount Accretion
Slide 38: CVBF Liabilities
CVBF Liabilities 12/31/06 $5.7 Billion 3/31/15 Junior $6.5 Billion subordinated Debentures 1.9% Borrowings Other 0.0% Junior Liabilities subordinated 0.95% Debentures Borrowings 0.39% 36.0% Total Deposits* 61.4% Total Other Deposits* Liabilities 98.66% 0.7% *Includes Customer Repurchase Agreements 1
Slide 39: Our Growth Strategy
Our Growth Strategy 1Q Results 2015 | cbbank.com
Slide 40: Our Vision
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. 1Q Results 2015 | cbbank.com 40
Slide 41: Target Customer
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 1Q Results 2015 | cbbank.com 41
Slide 42: Three Areas of Growth
Three Areas of Growth Same Store DeNovo Sales Acquisitions - Banks - - Trust - 1Q Results 2015 | cbbank.com 42
Slide 43: Acquisition Strategy
Acquisition Strategy -- Banks -- Target size: $200 million to $2 billion in assets Financial & Strategic In-market and/or adjacent geographic market (California only) -- Trust/Investment -- Target size: AUM of $200 million to $1 billion In California -- Banking Teams -- In- market & ‘new’ markets 1Q
Slide 44: Our 'Critical Few'
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
Slide 45: Copy of presentation at www.
Copy of presentation at www.cbbank.com 1Q Results 2015 | cbbank.com