February 2012 1 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 plan 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; oversupply of inventory and continued deterioration in values of California real estate, both residential and commercial; a prolonged slowdown 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 effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, 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; 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; 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 effect 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, 2010, 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 |
3 Source: Q4 2011 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Formed in 1974. Serves 40 cities with 42 business financial centers and 5 commercial banking centers throughout the Inland Empire, LA County, Orange County and the Central Valley of California Average Cost of Deposits = 0.15% Significant equity ownership board of directors: approximately 16% Total Assets: $6.5 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): $5.1 Billion Total Equity: $715 Million |
4 Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 27 Years 5 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 Chief Operations Officer 22 Years 2 Years David A. Brager Executive Vice President Sales Division 24 Years 9 Years Chris A. Walters Executive Vice President CitizensTrust 25 Years 5 Years Yamynn DeAngelis Executive Vice President Chief Risk Officer 32 Years 24 Years |
5 |
6 Rank Name Asset Size (12/31/11) 1 Wells Fargo $1,313,867 2 Union Bank $89,676 3 Bank of the West $62,408 4 First Republic Bank $27,792 5 OneWest Bank* $27,391 6 City National Bank $23,666 7 East West Bank $21,969 8 SVB Financial $19,969 9 Cathay Bank $10,645 10 10 CVB Financial Corp CVB Financial Corp $6,483 $6,483 11 Pacific Capital Bank $5,850 12 Pacific Western Bank $5,528 13 Westamerica Bank $5,042 14 Farmers & Merchants of Long Beach $4,659 In millions In millions *One West Bank’s asset size is as of 9/30/11 |
• 139 Consecutive Quarters of Profitability • 89 Consecutive Quarters of Cash Dividends • BauerFinancial Report – Five Star Rating (September 2011) • Fitch Rating – BBB (October 2011) 7 |
8 |
9 42 Business Financial Centers 42 Business Financial Centers 5 Commercial Banking Centers 5 Commercial Banking Centers Existing Locations |
(000’s) # of Center Locations Total Deposits (12/31/10) Total Deposits (12/31/11) Los Angeles County 17 $1,793,171 $1,872,623 Inland Empire (Riverside & San Bernardino Counties) 11 $1,529,042 $1,592,445 Central Valley 11 $838,198 $821,994 Orange County 8 $578,570 $598,426 Other 0 $322,035 $228,430 Total 47 $5,061,016 $5,113,918 10 *Includes Customer Repurchase Agreements; full-year average Average Cost of Deposits (full year) 0.44% 0.21% |
11 Source: Q4 2011 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 9/30/2011 |
(000’s) Non-Covered Loans Covered Loans* Total Loans* % Los Angeles County $1,118,619 $15,632 $1,134,251 31.90% Central Valley $593,133 $252,072 $845,205 23.77% Inland Empire (Riverside & San Bernardino Counties) $633,881 $2,753 $636,634 17.90% Orange County $471,508 $120 $471,628 13.26% Other $408,329 $59,835 $468,164 13.17% Total $3,225,470 $330,412 $3,555,882 100% 12 *Prior to MTM discount and loan loss reserve |
(000’s) *Removed Mortgage Pools and Construction Adjusted Non-Covered Loans* $527 million $210 million |
14 Source: Q4 2011 earnings release & company reports | *Non-covered loans Total Loans by Type Commercial RE Non-Owner Occupied 38.7% Consumer 1.6% SFR Mortgage 5.5% Municipal Lease Finance Receivables 3.5% Auto & Equipment 0.5% Dairy, Livestock & Agribusiness 10.8% Commercial & Industrial 15.3% Construction RE 2.4% Commercial RE Owner Occupied 21.7% |
15 (000’s) Net of Discount $200 million $67.9 million |
16 (000’s) |
17 |
18 (000’s) |
CVBF’s strong loan underwriting culture has limited its exposure to problem credits Continued profitability has allowed CVB to build its capital base and reserves for loan losses. Texas Ratio NPA’s/Loans & OREO Source: Q4 2011earnings 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 9/30/11 Non-Covered |
20 |
21 (000’s) Net Income After Taxes Highest in CVBF History! $- $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 |
2007 2008 2009 2010 2011 2011 Net Interest Income $161,142 $193,679 $222,264 $259,317 $234,681 Provision for Credit Losses ($4,000) ($26,600) ($80,500) ($61,200) ($7,068) Other Operating Income/Expenses (Net) ($74,079) ($81,331) ($52,515) ($111,378) ($106,809) Income Taxes ($22,479) ($22,675) ($23,830) ($23,804) ($39,071) Net Profit After Tax $60,584 $63,073 $65,419 $62,935 $81,733 $81,733 22 (000’s) |
23 |
24 *Normalized excludes accelerated accretion on covered loans Normalized* |
Return on Average Assets Return on Average Tangible Equity Net Interest Margin Source: Q4 2011 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 9/30/11 |
26 |
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio September 30, 2011 Tier 1 Risk-based Capital Ratio 4.0% 6.0% 17.6% Total Risk-based Capital Ratio 8.0% 10.0% 18.8% Tier 1 Leverage Ratio 4.0% 5.0% 11.2% Tangible Capital Ratio 4.0% 5.0% 9.9% Core Tier 1 Capital Ratio 14.8% 27 *12/31/11 ratios should be at or above 9/30/11 numbers. Information will be available in the 10K filing for 2011 |
28 Source: Q3 2011 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion Tier 1 Capital Ratio Total Risk – Based Capital Ratio Tangible Common Equity/Tangible Assets |
29 |
Source: Q4 2011 earnings release. As of 12/31/2011 securities held-to-maturity were valued at approximately $2.4 million | Yield on securities represents the fully taxable equivalent *Securities Available For Sale Securities portfolio totaled $2.2 billion at 12/31/2011. The portfolio represents 34% 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 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 6 % of the municipal bond portfolio Government Agency & GSEs 2.1% MBS 40.3% CMO 27.5% Municipal Bonds 29.6% Yield on securities portfolio: 3.56% Trust Preferred 0.5% |
(000’s) *Securities Available For Sale |
32 *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 12/31/11 $6.5 Billion 12/31/06 $6.1 Billion Securities Fed Balance* Goodwill & Intangibles Other Loans 4.8% |
12/31/06 $5.7 Billion 12/31/11 $5.8 Billion TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements |
34 |
35 • The class action lawsuit against CVBF, which sought to draft onto the SEC's investigation, was dismissed in its entirety by the federal court in Los Angeles. However, an amended and restated complaint by the plaintiffs is possible. • In late December 2011, Citizens Business Bank prepaid $100 million in Federal Home Loan Bank (“FHLB”) debt and took a $3.3 million charge. • On January 7, 2012, we redeemed trust preferred securities totaling $6.8 million. These securities were priced at 3-month LIBOR plus 3.25%. Source: Q4 2011 earnings release & company filings. Source: Q4 2011 earnings release & company filings. |
36 |
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. 37 |
38 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 |
39 Acquisitions --Banks-- --Trust-- Same Store Sales DeNovo |
• Conventional M&A • Target size: $300 million to $3 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) 40 --Banks-- --Trust/Investment-- • Target size: AUM of $300 million to $1.5 billion • In California |
• Quality Loan Growth • Non-Interest Bearing Deposit Growth • Non-Interest Income Growth • Expense Control • Grow Through Acquisition 41 |
42 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-term outlook |
Copy of Presentation: www.cbbank.com 43 |