Exhibit 99.1
|
May/June
2014
1Q Results 2014 | cbbank.com
|
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 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,
1Q Results 2014 | cbbank.com
2013, 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 |
|
|
CVB Financial Corp. (CVBF)
? Total Assets: $6.9 Billion
? Gross Loans: $3.4 Billion
? Total Deposits (Including Repos): $5.7 Billion
? Total Equity: $809 Million
? Largest financial institution headquartered in the Inland Empire region of
Southern California. Founded in 1974
? Locations in 39 cities with 37 business financial centers and 6 commercial
banking centers and 3 trust office locations serving the Inland Empire, LA
County, Orange County, San Diego County and the Central Valley of
California
1Q Results 2014 | cbbank.com
Source: Q1 2014 earnings release & company filings. *non-covered loans
3 |
|
|
Experienced Leadership
Name Position Banking Experience CVBF Service
Christopher D. Myers President & CEO 30 Years 8 Years
Richard C. Thomas Executive Vice President
Chief Financial Officer 4 Years 3 Years
James F. Dowd ECxheiecfu tCivree dViitc Oe fPfirceesirdent 37 Years 6 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 32 Years 2 Years
Yamynn DeAngelis Executive Vice President
Chief Risk Officer 35 Years 27 Years
Richard Wohl Executive Vice President 26 Years 3 Years
1Q Results 2014 | cbbank.com
General Counsel 4
|
Board of Directors
As of May 23rd, 2014
Name CVB Experience Age
Linn Wiley—Chairman 22 Years 75
George Borba Jr.—Vice Chairman 1 Year 46
Ray O’Brien—Vice Chairman 2 Years 57
Steve Del Guercio 2 Years 52
Robert Jacoby 8 Years 72
Hal Oswalt NEW 66
San Vaccaro 14 Years 81
Chris Myers CEO 8 Years 52
1Q Results 2014 | cbbank.com
- 5
|
Who is CVB Financial Corp.?
1Q Results 2014 | cbbank.com
|
Largest Banks Headquartered in California
Rank Name Asset Size (3/31/14)
1 |
| Wells Fargo $1,546,707 |
2 |
| Union Bank $107,237 |
In millions
3 |
| Bank of the West $67,725 |
4 |
| First Republic Bank $44,346 |
5 |
| City National Bank $29,718 |
6 |
| SVB Financial $29,711 |
7 |
| East West Bank $27,401 |
8 |
| OneWest Bank $21,799 |
9 Cathay Bank $11,291
10 CapitalSource* $9,100
11 CVB Financial Corp. $6,903
12 BBCN $6,668
13 Pacific Western Bank* $6,518
14 Farmers & Merchants of Long Beach $5,357
1Q Results 2014 | cbbank.com 7
Source: SNL Financial | *CapitalSource merged with Pacific Western Bank (4/7/14)
15 Westamerica Bank $4,921
|
Bank Accomplishments & Ratings
? 148 Consecutive Quarters of Profitability
? 98 Consecutive Quarters of Cash Dividends
? #8 Rated Bank: BankDirectorMagazine
? Bank Performance Scorecard (August 2013)
? BauerFinancial Report
? Five Star Rating (December 2013)
? Fitch Rating
BBB (S t b 1Q Results 2014 | cbbank.com
? September 2013)
|
Our Markets
1Q Results 2014 | cbbank.com
|
Existing Locations*
42 Business Financial Centers
6 |
| Commercial Banking Centers |
3 |
| CitizensTrust Locations |
Corporate Office
Business Financial Centers
Commercial Banking Centers
1Q Results 2014 | cbbank.com 10
g
CitizensTrust
San Diego Opening June 2nd 2014
American Security Bank
*Locations as of May 15th, 2014
|
Deposits*
(000’s)
# of Center
Locations
Total Deposits
(3/31/13)
Total Deposits
(3/31/14)
Los Angeles County 17 $1,818,916 $1,959,624
Inland Empire
(Riverside & San Bernardino Counties) 9 $1,698,844 $1,948,785
Central Valley 9 $834,170 $870,202
Orange County 8 $572,867 $705,761
Other 0 $261,479 $253,216
Total 43 $5,186,276 $5,737,588
Average Cost of Deposits (Year to Date) 0 12% 0 12%
10.6%
1Q Results 2014 | cbbank.com
*Includes Customer Repurchase Agreements; Balance as of balance sheet data
Year-to-0.12% 0.12%
|
Non-Interest Bearing Deposits
$2 400 000
$2,600,000
$2,200,000
2,400,000
$1,800,000
$2,000,000
$1,400,000
$1,600,000
$1,000,000
$1,200,000
1Q Results 2014 | cbbank.com
Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1
2007 2008 2009 2010 2011 2012 2013 2014
(000’s)
|
Deposit Cost Comparison
Source: Q1 2014 earnings release & other company g py filings, SNL Financial—peers represent public
CA , AZ, HI, NV, OR & WA banks with assets $2—$25 billion. | Peer Data as of 12/31/2013
3.00%
CVBF Peers
2.00%
2.50%
1.50%
0 50%
1.00%
0.00%
0.50%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1Q Results 2014 | cbbank.com 13
200720082009 2010 2011 2012 2013 2014
|
Total Loans*
as of 03/31/2014
Non- Covered
(000’s)
Covered
Loans*
Loans* Total Loans* %
Los Angeles County $1,286,219 $9,989 $1,296,208 37.87%
Central Valley $649,941 $137,660 $787,601 23.01%
Inland Empire
( Riverside & San Bernardino Counties) $579,455 $640 $580,095 16.95% )
Orange County $496,791 $0 $496,791 14.51%
Other $253,916 $8,177 $262,093 7.66%
Total $3,266,322 $156,466 $3,422,788 100.00%
1Q Results 2014 | cbbank.com
*Prior to MTM discount, loan fees, loan loss reserve and loans held for sale
|
Total Loans*
$3 800 000
$4,000,000
$4,200,000
$4,400,000
$3 200 000
$3,400,000
$3,600,000
3,800,000
$2 600 000
$2,800,000
$3,000,000
3,200,000
$2 000 000
$2,200,000
$2,400,000
2,600,000
2,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012 2013 2014
( 000’s) Total Non Covered Loans Total Covered Loans
1Q Results 2014 | cbbank.com
) Non-*Before deferred loan fees, discount, and loans held for sale
|
Loan Portfolio Composition
Total Loans by Type
Municipal Lease
Finance
Receivables, 2.4% Dairy, Livestock &
Agribusiness,
6.2%
SFR Mortgage,
5 |
| 6% |
Other, 1.7%
Commercial &
Industrial, 14.9%
Multi-Family, 5.6%
5.6%
Construction RE,
Commercial RE- 1.3%
Non-Owner,
39 3%
Commercial RE -
Owner
Occupied, 23.0%
39.3%
1Q Results 2014 | cbbank.com 16
Source: Q1 2014 earnings release & company reports |Covered & Non Covered
|
New/Enhanced Lending Initiatives
• |
| Residential Real Estate |
• |
| Multi-Family |
• |
| Asset Based Lending |
• |
| Residential and Commercial Construction |
1Q Results 2014 | cbbank.com 17
|
Total Covered Loans
$700,000
$800,000
$184 million
$500,000
$600,000
$300,000
$400,000
$100,000
$200,000
$11.2 million
$-
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
(000’s) 2009 2011 2012 2013 2014
1Q Results 2014 | cbbank.com
000 2010 Includes Loans Held for Sale Net of Discount
|
Non-Performing Assets
Non-Covered
$180,000
$200,000
$120,000
$140,000
$160,000
$80,000
$100,000
$20,000
$40,000
$60,000
$-
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
(000’s)
1Q Results 2014 | cbbank.com
009 0 0 0 0 0 3 0
Non-Performing Loans OREO
19
|
Classified Loans
Non-Covered
$700,000
$800,000
$500 000
$600,000
$400,000
500,000
$200,000
$300,000
$-
$100,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1Q Results 2014 | cbbank.com
2009 2010 2011 2012 2013 2014
20
(000’s)
|
Profits
1Q Results 2014 | cbbank.com
|
Net Income
$27,500
$30,000
$32,500
$20,000
$22,500
$25,000
$12,500
$15,000
$17,500
$2 500
$5,000
$7,500
$10,000
$-
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 Q2 Q3 Q4 Q1
2007 2008 2009 2010 2011 2012 2013 2014
(000’s)
1Q Results 2014 | cbbank.com
Net Income After Taxes
$20.4 million FHLB prepayment charge
|
Earnings
(000’s) 2010 2011 2012 2013 3 Months to
3/31/2014
Net Interest Income $259,317 $234,681 $236,950 $216,266 $56,942
Provision for Loan Losses ($61,200) ($7,068) $0 $16,750 $7,500
Other Operating
Income/Expenses (Net) ($111,378) ($106,809) ($122,257) ($88,741) ($19,659)
Income Taxes ($23,804) ($39,071) ($37,413) ($48,667) ($16,122)
Net Profit After Tax $62,935 $81,733 $77,280 $95,608 $28,661
Last four quarters = $102,654
1Q Results 2014 | cbbank.com 23
|
Net Interest Margin
3 |
| 75% |
4.00%
4.25%
3 |
| 00% |
3.25%
3.50%
3.75%
2.50%
2.75%
3.00%
1.75%
2.00%
2.25%
1.50%
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1
2007 2008 2009 2010 2011 2012 2013 2014
1Q Results 2014 | cbbank.com 24
*Normalized excludes accelerated accretion on covered loans
Normalized*
|
Expenses
1Q Results 2014 | cbbank.com
|
Expenses
(000’s) 2011 2012 2013 3 Months to
3/31/2014
Salaries & Employee
Benefits $69,993 $68,496 $71,015 $19,417
Promotion &
Entertainment $4,977 $4,869 $4,681 $1,266
Stationery & Supplies** $3,645 $3,582 $3,535 $924
Software Licenses &
Maintenance $3,669 $4,279 $4,671 $1,065
Professional Services $15,031 $7,170 $5,709 $1,791
OREO Expense $6,729 $2,146 $856 $25
Other $36,981 $47,618* $23,561 $6,669
Total: $ 141,025 $ 138,160 $ 114,028 $ 31,157
1Q Results 2014 | cbbank.com 26
*Includes $20.4 million FHLB prepayment charge
**Includes telecommunications expense
, , , ,
|
Capital
1Q Results 2014 | cbbank.com
|
Capital Ratios
Regulatory
Minimum Ratio
Regulatory
Well-Capitalized Ratio March 31, 2014*
Tier 1 Risk-based Capital Ratio 4.0% 6.0% 18.98%
Total Risk-based Capital Ratio 8.0% 10.0% 20.24%
Tier 1 Leverage Ratio 4.0% 5.0% 11.48%
Tangible Capital Ratio 10.98%
Core Tier 1 Capital Ratio 18.36%
1Q Results 2014 | cbbank.com 28
* |
| CVB Financial Corp. – Consolidated |
|
Recent ‘CVBF’ Share Repurchases
• |
| 7,420,678= remaining shares authorized for |
repurchase as of May 19th, 2014
• |
| 344,493 = shares repurchased in April/May |
of 2014 at an average price of $14.15 per
share
1Q Results 2014 | cbbank.com 29
|
Securities & Investments
1Q Results 2014 | cbbank.com
|
Securities Portfolio*
—$2.75 Billion—
Municipal
Bonds 20.53%
CMO’s /
REMIC’s
12.78%
Trust Preferred
Yield on securities 0.18%
portfolio = 2.67%
for the 1st Quarter 2014
Government
1 |
| Agency & |
GSEs 11.52%
MBS 54.99%
? Securities portfolio totaled $2.75 billion at 3/31/2014. 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
1Q Results 2014 | cbbank.com Source: Q1 2014 earnings release. As of 3/31/2014 securities held-to-maturity were valued at
approximately $1.7 million | Yield on securities represents the fully taxable equivalent
*Securities Available For Sale
|
Securities Portfolio*
$2.75 Billion
M kt M k t
$100,000
Mark-to-Market (Pre-tax)
$60,000
$80,000
$20,000
$40,000
$8 696
$20 000
$0
8,696
-$40,000
-$20,000
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sept Dec Mar
1Q Results 2014 | cbbank.com
09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14
(000’s) *Securities Available For Sale
|
CVBF Assets
12/31/06
$6.1 Billion
3/31/14
$6.9 Billion
L Securities
Securities
39 9%
Loans,
42.4%
Loans,
net
49.9%
net 48.3% 39.9%
Fed
Balance*
Other 4.6% 2.4%
Goodwill &
Intangibles
0.7%
Fed
Balance*
5.3%
Other 5.7%
Goodwill &
Intangibles
0.8%
1Q Results 2014 | cbbank.com 33
*Includes overnight funds held at the Federal Reserve, Interest earning -
due from Correspondent Banks, other short-term money market
accounts or certificates of deposit
|
Yield on Securities vs. Yield on Loans
5.00%
6.00%
4.00%
2 |
| 00% |
3.00%
1.00%
2.00%
0.00%
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
1Q Results 2014 | cbbank.com
Yield on Loans* Yield on Securities
*Excluding Discount Accretion
|
CVBF Liabilities
12/31/06
$5 7 Junior
subordinated
Debentures 1.9%
5.7 Billion
3/31/14
$6.1 Billion
Total
Deposits*
61 4%
Borrowings
36.0%
Other
Liabilities
2.1%
Borrowings
3.3% Junior
subordinated
Debentures
0.4%
61.4%
Other
Liabilities
0.7%
Total
Deposits*
94 2%
1Q Results 2014 | cbbank.com
94.2%
*Includes Customer Repurchase Agreements
|
New Acquisition
“American Security Bank”
1Q Results 2014 | cbbank.com 36
|
Overview of American Security Bank
Overview Profitability Metrics
(LTM as of 12/31/13)
Balance Sheet
(12/31/13)
Headquarters Newport Beach, CA
Establishment Date 1990
Net Income (S-Corp, $000s) $2,939
Net Interest Margin 3 71%
Total Assets ($000s) $412,295
Total Loans ($000s) $252 605
Total Branches 5
3.71%
Efficiency Ratio 83.63%
ROAA (S-Corp,%) 0.71%
ROATE (S-Corp,%) 6.85%
252,605
Total Deposits ($000s) $356,203
Total Equity ($000s) $55,039
Tangible Equity ($000s) $42,774
TCE/TA 10.69%
Tier 1 Leverage Ratio 10.76%
Total RBC Ratio 16.76%
Loan / Deposit Ratio 70.92%
Loan Composition
(12/31/13)
Deposit Composition
(12/31/13)
C&D,
Oth F il
Brokered
2 |
| 81% |
Jumbo
CDs Asset Quality
(12/31/13)
NPLs ($000s) $7,457
,
3.41% Family,
5.75%
Multifamily,
7.46%
Other,
1.76%
, 2.81%
Retail
CDs,
10.41%
CDs,
3.49%
OREO ($000s) $827
NPAs ($000s) $8,284
NPAs / Assets 2.01%
NPAs / Loans 2.95%
C&I,
9.12%
CRE,
72.50%
Non-
Interest
Bearing,
Interest 49.78%
Bearing,
33 51%
1Q Results 2014 | cbbank.com
Reserves / Loans 1.45%
LTM NCOs / Average Loans 0.43%
33.51%
|
Pro Forma Branch Map
1Q Results 2014 | cbbank.com
Citizens Business Bank
American Security Bank
|
Transaction Summary & Pro Forma Assumptions
• |
| $57.0 million |
• |
| 133% Tangible Equity |
Valuation
g q y
• |
| 4.3% Core Deposit Premium |
Consideration • 100% cash
Acquisition Date • May 15th, 2014
P F A ti
Estimated Cost Savings • 40%+ of American Security noninterest
Pro Forma Assumptions
expense base
2015e EPS • 5% EPS Accretion (estimated)
1Q Results 2014 | cbbank.com
|
Our Growth Strategy
1Q Results 2014 | 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
1Q Results 2014 | cbbank.com 42
|
Three Areas of Growth
Same Store DeNovo
Sales
Acquisitions
—Banks— —Trust—
1Q Results 2014 | cbbank.com 43
|
Acquisition Strategy
• |
| Target size: $200 million to $2 billion in assets |
q gy
—Banks—
• |
| 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—
I k t & ‘ ’ k t
1Q Results 2014 | cbbank.com
• |
| In- market new’ markets |
|
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 2014 | cbbank.com
|
Copy of presentation at
www.cbbank.com
1Q Results 2014 | cbbank.com