• CVB Financial Corp. Reports Earnings for the Fourth Quarter and the Year Ended 2023

    ソース: Nasdaq GlobeNewswire / 24 1 2024 16:52:44   America/New_York

    Fourth Quarter 2023

    • Net Earnings of $48.5 million, or $0.35 per share
    • FDIC Special Assessment of $9.2 million ($0.04 decrease in EPS)

    Full Year 2023

    • Net Earnings of $221.4 million, or $1.59 per share
    • Efficiency Ratio of 42.0%
    • Return on Average Assets of 1.35%
    • Return on Average Tangible Common Equity of 18.48%

    ONTARIO, Calif., Jan. 24, 2024 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter and the year ended December 31, 2023.

    CVB Financial Corp. reported net income of $48.5 million for the quarter ended December 31, 2023, compared with $57.9 million for the third quarter of 2023 and $66.2 million for the fourth quarter of 2022. Diluted earnings per share were $0.35 for the fourth quarter, compared to $0.42 for the prior quarter and $0.47 for the same period last year. Fourth quarter net income was negatively impacted by a $9.2 million expense accrual for the FDIC’s final rule that implements a special assessment that will be collected over eight quarters starting in 2024. Net income of $48.5 million for the fourth quarter of 2023 produced an annualized return on average equity (“ROAE”) of 9.65%, an annualized return on average tangible common equity (“ROATCE”) of 16.21%, and an annualized return on average assets (“ROAA”) of 1.19%.

    For the year ended December 31, 2023, the Company reported net income of $221.4 million, compared with $235.4 million for the year ended December 31, 2022. Diluted earnings per share were $1.59 for the year ended December 31, 2023, compared to $1.67 for the same period last year. For the year ended December 31, 2023, ROAA was 1.35% and ROATCE was 18.48%, which compares to a 1.39% ROAA and 18.85% ROATCE for 2022.

    David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “During the course of 2023, Citizens Business Bank not only remained safe and sound but also produced earnings that were the second highest in the Company’s history, despite the difficult operating environment.  We remain committed to our strategy of banking the best small to medium sized businesses and their owners.  We work hard to earn and maintain the trust of our customers and business partners, and we wish to thank our customers and associates for their loyalty and dedication over the past year.”

    Highlights for the Fourth Quarter of 2023

    • Pretax Pre-Provision income was $72.6 million, down $10 million or 12%, predominately driven by the $9.2 million FDIC special assessment expense
    • Net interest margin of 3.26%, declined by 5 basis points compared to prior quarter
    • $2 million recapture of provision for credit losses
    • Investment securities declined by $214 million on average compared to prior quarter
    • BOLI restructuring resulted in $49 million increase in value from the prior quarter
    • Noninterest-bearing deposits were 61% of total deposits, on average, for the quarter
    • Total deposits decreased by $429 million on average compared to prior quarter
    • Total borrowings increased by $267 million, on average, from the prior quarter
    • TCE Ratio = 8.5% & CET1 = 14.6%

    Highlights for the Full Year 2023

    • Pretax Pre-Provision income was $317.4 million, down from $338.9 million in 2022, primarily driven by the FDIC special assessment
    • Net interest margin of 3.31%, compared to 3.30% for 2022
    • Efficiency Ratio of 42%, compared with 39% for 2022
    • Investments declined by approximately $400 million from year end 2022 to December 31, 2023
    • Loans declined by approximately $174 million from year end 2022 to December 31, 2023
    • Total deposits declined by approximately $1.4 billion from year end 2022 to December 31, 2023
    • Noninterest-bearing deposits were 63% of total deposits at December 31, 2023
    • Total borrowings increased by approximately $1.1 billion from year end 2022 to December 31, 2023

    INCOME STATEMENT HIGHLIGHTS

     Three Months Ended Year Ended December 31,
     December 31, 2023 September 30, 2023 December 31, 2022  
      2023   2023   2022   2023   2022   2021 
     (Dollars in thousands, except per share amounts)
    Net interest income$119,356  $123,371  $137,395  $487,990  $505,513  $414,550 
    (Provision for) recapture of credit losses 2,000   (2,000)  (2,500)  (2,000)  (10,600)  25,500 
    Noninterest income 19,163   14,309   12,465   59,330   49,989   47,385 
    Noninterest expense (65,930)  (55,058)  (54,419)  (229,886)  (216,555)  (189,787)
    Income taxes (26,081)  (22,735)  (26,773)  (93,999)  (92,922)  (85,127)
    Net earnings$48,508  $57,887  $66,168  $221,435  $235,425  $212,521 
    Earnings per common share:           
    Basic$0.35  $0.42  $0.47  $1.59  $1.67  $1.57 
    Diluted$0.35  $0.42  $0.47  $1.59  $1.67  $1.56 
                
    NIM 3.26%  3.31%  3.69%  3.31%  3.30%  2.97%
    ROAA 1.19%  1.40%  1.60%  1.35%  1.39%  1.38%
    ROAE 9.65%  11.33%  13.68%  11.03%  11.39%  10.30%
    ROATCE 16.21%  18.82%  23.65%  18.48%  18.85%  15.93%
    Efficiency ratio 47.60%  39.99%  36.31%  42.00%  38.98%  41.09%
    Noninterest expense to average assets, annualized 1.62%  1.33%  1.32%  1.41%  1.28%  1.24%
                

    Net Interest Income
    Net interest income was $119.4 million for the fourth quarter of 2023. This represented a $4.0 million, or 3.25%, decline from the third quarter of 2023, and an $18.0 million, or 13.13%, decrease from the fourth quarter of 2022. The quarter-over-quarter decrease in net interest income was primarily due to a $253.4 million decrease in average earning assets and a five basis point decline in net interest margin. The decline in net interest income compared to the fourth quarter of 2022 was due to a 43 basis point decrease in net interest margin and a $216.5 million decline in average earning assets.

    Net interest income of $488.0 million for the year ended December 31, 2023, decreased $17.5 million, or 3.47%, compared to the same period of 2022. Interest income grew by $91.7 million, or 17.81% in 2023, offset by a $109.2 million increase in interest expense year-over-year. Cost of funds for 2023 increased by 77 basis points over 2022, while the earning asset yield grew by 74 basis points. Average earning assets declined by $610.4 million year-over-year.

    Net Interest Margin
    Our tax equivalent net interest margin was 3.26% for the fourth quarter of 2023, compared to 3.31% for the third quarter of 2023 and 3.69% for the fourth quarter of 2022. The five basis point decrease in our net interest margin compared to the third quarter of 2023, was the result of a 17 basis point increase in our cost of funds, offset by a 12 basis point increase in our interest-earning asset yield. The 12 basis point increase in our interest-earning asset yield was due to an 11 basis point increase in loan yields, a seven basis point increase in security yields, and a quarter-over-quarter change in the composition of average earning assets, with investment securities decreasing from approximately 37% of average earnings assets to 36%. Cost of funds increased in the fourth quarter, as cost of deposits and customer repurchases increased by 10 basis points to 0.61%. Average borrowings for the fourth quarter of 2023 of $1.59 billion had an average cost of 4.91%. On average, borrowings increased $267.2 million during the fourth quarter. The decrease in net interest margin of 43 basis points, compared to the fourth quarter of 2022, was primarily the result of a 96 basis point increase in cost of funds. Total cost of funds of 1.09% for the fourth quarter of 2023 increased from 0.13% for the year ago quarter. This 96 basis point increase in cost of funds was the result of a 1.37% increase in the cost of interest-bearing deposits and an increase in average borrowings of $1.42 billion. Borrowings had an average cost of 4.91% for the fourth quarter of 2023, compared to an average cost of 4.49% for the prior year quarter. A 49 basis point increase in earning asset yields over the prior year quarter partially offset the increase in funding costs. Included in the higher earning asset yields, were higher loan yields, which grew from 4.78% for the fourth quarter of 2022 to 5.18% for the fourth quarter of 2023. Additionally, the yield on investment securities increased by 35 basis points from the prior year quarter, primarily due to the positive spread generated from the pay-fixed swaps, in which the Company receives daily SOFR and pays a weighted average fixed cost of approximately 3.8%.

    Earning Assets and Deposits
    On average, earning assets declined by $253.4 million, compared to the third quarter of 2023 and declined by $216.5 million when compared to the fourth quarter of 2022. The $253.4 million quarter-over-quarter decrease in earning assets resulted from a $214.4 million decline in average investment securities and a $30.3 million decrease in average earning balances due from the Federal Reserve. Compared to the fourth quarter of 2022, the average balance of investment securities decreased by $514.1 million, while the average amount of funds held at the Federal Reserve increased by $312.2 million.   Noninterest-bearing deposits declined on average by $362.3 million, or 4.64%, from the third quarter of 2023 and interest-bearing deposits and customer repurchase agreements declined on average by $106.2 million. Compared to the fourth quarter of 2022, total deposits and customer repurchase agreements declined on average by $1.75 billion, or 12.33%, including a decline of $1.25 billion in noninterest-bearing deposits. On average, noninterest-bearing deposits were 61.30% of total deposits during the most recent quarter, compared to 62.09% for the third quarter of 2023 and 63.58% for the fourth quarter of 2022.

                  
      Three Months Ended 
    SELECTED FINANCIAL HIGHLIGHTSDecember 31, 2023 September 30, 2023 December 31, 2022 
      (Dollars in thousands) 
    Yield on average investment securities (TE) 2.71%   2.64%   2.36%  
    Yield on average loans 5.18%   5.07%   4.78%  
    Yield on average earning assets (TE) 4.30%   4.18%   3.82%  
    Cost of deposits 0.62%   0.52%   0.08%  
    Cost of funds 1.09%   0.92%   0.13%  
    Net interest margin (TE) 3.26%   3.31%   3.69%  
                  
    Average Earning Asset MixAvg % of Total Avg % of Total Avg % of Total
     Total investment securities$5,328,208 36.38% $5,542,590 37.20% $5,842,283 39.31% 
     Interest-earning deposits with other institutions 443,773 3.03%  473,391 3.18%  133,931 0.90% 
     Loans 8,856,654 60.47%  8,862,462 59.48%  8,868,673 59.67% 
     Total interest-earning assets 14,646,647    14,900,003    14,863,178   
                  
                  
      Year Ended December 31, 
    SELECTED FINANCIAL HIGHLIGHTS 2023   2022   2021  
      (Dollars in thousands) 
    Yield on average investment securities (TE) 2.52%   2.03%   1.56%  
    Yield on average loans 5.04%   4.49%   4.42%  
    Yield on average earning assets (TE) 4.10%   3.36%   3.02%  
    Cost of deposits 0.41%   0.05%   0.04%  
    Cost of funds 0.83%   0.06%   0.05%  
    Net interest margin (TE) 3.31%   3.30%   2.97%  
                  
    Average Earning Asset MixAvg % of Total Avg % of Total Avg % of Total
     Total investment securities$5,579,488 37.63% $5,939,554 38.47% $4,058,459 28.79% 
     Interest-earning deposits with other institutions 331,156 2.23%  804,744 5.21%  1,953,209
    		 13.86
    		% 
     Loans 8,893,335 59.97%  8,676,820 56.20%  8,065,877
    		 57.22
    		% 
     Total interest-earning assets 14,829,057    15,439,427    14,095,233
    		   
                  

    Provision for Credit Losses
    The fourth quarter of 2023 included a $2.0 million recapture of provision for credit losses, compared to $2.0 million in provision for credit losses in the third quarter of 2023 and $2.5 million of provision in the fourth quarter of 2022. The year-to-date provision for credit losses of $2.0 million was the result of an overall increase in projected loss rates from 0.94% at the end of 2022 to 0.98% at December 31, 2023. The modest changes in projected loss rates continue to be driven primarily by economic forecast changes to various macroeconomic variables such as GDP growth, commercial real estate values and the rate of unemployment.

    For the year ended December 31, 2022, we recorded $10.6 million in provision for credit losses, due to both core loan growth of approximately $600 million and a deteriorating economic forecast of key macroeconomic variables.

    Noninterest Income
    Noninterest income was $19.2 million for the fourth quarter of 2023, compared with $14.3 million for the third quarter of 2023 and $12.5 million for the fourth quarter of 2022. Fourth quarter income from Bank Owned Life Insurance (“BOLI”) increased by $6.4 million from the third quarter of 2023 and by $6.5 million compared to the fourth quarter of 2022. At the end of the fourth quarter of 2023, the Company restructured its BOLI assets by surrendering various policies valued at approximately $68 million, resulting in a write-down of asset values of approximately $4.5 million and additional income tax expense and penalties of approximately $6.5 million. This combined restructuring charge of $10.9 million, was offset by increases to the cash surrender value of new policies purchased during the quarter, resulting in an increase to noninterest income of $6.5 million. The fourth quarter of 2023 included a $1.1 million increase in CRA investment income due to underlying asset valuation increases, while the third quarter of 2023 included approximately $2.6 million in gain from an equity fund distribution related to a CRA investment. Service charges on deposits decreased by $87,000, or 1.72% over the third quarter of 2023 and declined by $782,000, or 13.58% in comparison to the fourth quarter of 2022. Trust and investment service fees declined by $165,000 or 5.1% from the prior quarter, but increased by $214,000, or 7.5% compared to the year-ago quarter.

    For the year ended December 31, 2023, noninterest income was $59.3 million, compared to $50.0 million for 2022.   2023 included the $2.6 million gain from the equity fund distribution, while 2022 included a $2.4 million net gain on the sale of one of our properties. Service charges on deposit accounts decreased by $1.2 million, or 5.44% from the year ended December 31, 2022. Trust management fees increased by $1.0 million, or 12.1% compared to 2022. Income from BOLI increased by $7.4 million from the prior year, primarily due to the $6.5 million increase in cash surrender value resulting from the surrender and redeployment of the BOLI policies at the end 2023.

    Noninterest Expense
    Noninterest expense for the fourth quarter of 2023 was $65.9 million, compared to $55.0 million for the third quarter of 2023 and $54.4 million for the fourth quarter of 2022. The $10.9 million quarter-over-quarter increase was primarily due to the expense from accruing the estimated FDIC special assessment. On November 16, 2023, the FDIC Board of Directors approved a final rule to implement a special assessment to recover the loss to the Deposit Insurance Fund (DIF) associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. As a result, the Company recorded noninterest expense of $9.2 million associated with the FDIC special assessment in the fourth quarter of 2023. The fourth quarter of 2023 included $500,000 in recapture of provision for unfunded loan commitments, compared to $900,000 in recapture for the third quarter of 2023 and no provision for the fourth quarter of 2022. Salaries and employee benefit costs increased $908,000, marketing and promotion expense increased $464,000, due to increased donations, professional services increased $300,000, and legal expense increased $290,000 quarter-over-quarter. The $908,000 quarter-over-quarter increase in staff related expenses included $250,000 in higher employee benefit costs associated with the year-end holidays. The $11.5 million increase in noninterest expense year-over-year was impacted by the $9.2 million FDIC special assessment. Year-over-year expense growth included increased staff related expenses of $1.5 million, or 4.4%. This increase included a $550,000 decline in contra expense for deferred origination costs, resulting from a decline in loan originations in the fourth quarter of 2023, when compared to the prior year. Marketing and promotion expense increased by $380,000, and computer software expense increased by $317,000, or 9.4%, when compared to the fourth quarter of 2022. As a percentage of average assets, noninterest expense was 1.62% for the fourth quarter of 2023, compared to 1.33% for the third quarter of 2023 and 1.32% for the fourth quarter of 2022. Excluding the impact of the FDIC special assessment, the noninterest expense ratio for the fourth quarter of 2023 was 1.39%. The efficiency ratio for the fourth quarter of 2023 was 47.60%, or 40.98% excluding the FDIC special assessment, compared to 39.99% for the third quarter of 2023 and 36.31% for the fourth quarter of 2022.  

    Noninterest expense of $229.9 million for the year ended December 31, 2023 was $13.3 million higher than the prior year. The year-over-year increase included a $12.2 million increase in regulatory assessments, including the $9.2 million FDIC special assessment, and a $7.6 million increase in salaries and employee benefits, primarily due to inflationary pressures on salaries and benefits and a $2.9 million decline in the contra expense for deferred origination costs due to fewer loan originations. These increases were partially offset by a $6.0 million decrease in acquisition expense. As a percentage of average assets, noninterest expense was 1.41% for 2023, compared to 1.28% for 2022. The efficiency ratio was 42.00% for the year ended 2023, compared to 38.98% for the same period of 2022.

    Income Taxes
    Our effective tax rate for the fourth quarter of 2023 was 34.97% and was 29.80% for the year ended December 31, 2023, compared with 28.81% for the fourth quarter and 28.30% for year-to-date 2022. During the fourth quarter and full year of 2023, our effective tax rate was impacted by approximately $6.5 million in income tax expense and penalties resulting from the surrender of certain BOLI policies. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

    BALANCE SHEET HIGHIGHTS

    Assets
    The Company reported total assets of $16.02 billion at December 31, 2023. This represented an increase of $118.0 million, or 0.74%, from total assets of $15.90 billion at September 30, 2023. The increase in assets includes a $58.1 million increase in investment securities, a $45.7 million increase in interest-earning balances due from the Federal Reserve, a $49.2 million increase in BOLI and a $29.4 million increase in net loans.

    Total assets at December 31, 2023 decreased by $455.5 million, or 2.76%, from total assets of $16.48 billion at December 31, 2022. The decrease in assets was primarily due to a $388.8 million decrease in investment securities and a $176.2 million decrease in net loans, partially offset by an increase of $64.7 million in interest-earning balances due from the Federal Reserve and a $53.2 million increase in the cash surrender value of BOLI.

    Investment Securities and BOLI
    Total investment securities were $5.42 billion at December 31, 2023, an increase of $58.1 million, or 1.08% from September 30, 2023, and a decrease of $388.8 million, or 6.69%, from $5.81 billion at December 31, 2022.  

    At December 31, 2023, investment securities held-to-maturity (“HTM”) totaled $2.46 billion, a decrease of $24.8 million, or 1.00% from September 30, 2023, and a decrease of $89.7 million, or 3.51%, from December 31, 2022.

    At December 31, 2023, investment securities available-for-sale (“AFS”) totaled $2.96 billion, inclusive of a pre-tax net unrealized loss of $449.8 million. AFS securities increased by $83.0 million, or 2.89% from September 30, 2023 and decreased by $299.1 million, or 9.19%, from $3.26 billion at December 31, 2022. Pre-tax unrealized loss declined by $178.7 million from September 30, 2023 and decreased by $50.3 million from December 31, 2022.

    Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled $4.36 billion or approximately 80% of the total investment securities at December 31, 2023. Virtually all of our MBS and CMO are issued or guaranteed by government or government sponsored enterprises, which have the implied guarantee of the U.S. Government. In addition, at December 31, 2023, we had $562.9 million of Government Agency securities, that represent approximately 10.4% of the total investment securities.

    Our combined AFS and HTM municipal securities totaled $493.6 million as of December 31, 2023, or 9.1% of our total investment portfolio. These securities are located in 35 states. Our largest concentrations of holdings by state, as a percentage of total municipal bonds, are located in Texas at 15.89%, Minnesota at 11.28%, California at 9.58%, Ohio at 6.25%, Massachusetts at 6.15%, and Washington at 5.80%.

    At December 31, 2023, the Company had $308.7 million of Bank Owned Life insurance (“BOLI”). The $49.2 million increase in value of BOLI, when compared to September 30, 2023, was primarily due to a restructuring of the Company’s life insurance policies, including a $4.5 million write-down in value on surrender policies that was offset by a $10.9 million enhancement to cash surrender values, as well as additional policy purchases totaling $41 million. This restructuring is expected to increase future returns on our BOLI policies resulting in additional non-taxable noninterest income in future years.

    Loans
    Total loans and leases, at amortized cost, of $8.90 billion at December 31, 2023 increased by $27.3 million, or 0.31%, from September 30, 2023. The quarter-over quarter increase in loans included increases of $61.4 million in dairy & livestock and agribusiness loans, $31.8 million in commercial and industrial loans, and $3.7 million in construction loans, partially offset by decreases of $58.6 million in commercial real estate loans and $12.5 million in SBA loans.

    Total loans and leases, at amortized cost, decreased by $174.5 million, or 1.92%, from December 31, 2022. After adjusting for PPP loans, which declined by $6.4 million, our core loans decreased by $168.1 million, or 1.85% from December 31, 2022.   The $168.1 million decreases included $100.4 million in commercial real estate loans, $21.5 million in construction loans, $20.7 million in dairy & livestock and agribusiness loans, $20.3 million in SBA loans, $7.5 million in municipal lease financings, and $22.7 million in consumer and other loans, partially offset by an increase of $21.2 million in commercial and industrial loans.

    Asset Quality
    During the fourth quarter of 2023, we experienced credit charge-offs of $181,000 and total recoveries of $28,000, resulting in net charge-offs of $153,000. The allowance for credit losses (“ACL”) totaled $86.8 million at December 31, 2023, compared to $89.0 million at September 30, 2023 and $85.1 million at December 31, 2022. The ACL was increased by $1.7 million in 2023, including a $2.0 million provision for credit losses. At December 31, 2023, ACL as a percentage of total loans and leases outstanding was 0.98%. This compares to 1.00% and 0.94% at September 30, 2023 and December 31, 2022, respectively.

    Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

    Nonperforming Assets and Delinquency TrendsDecember 31,
    2023
    		 September 30,
    2023
    		 December 31,
    2022
    		 
                  
    Nonperforming loans (Dollars in thousands) 
    Commercial real estate $15,440  $3,655  $2,657  
    SBA  969   1,050   443  
    SBA - PPP  -   -   -  
    Commercial and industrial  4,509   4,672   1,320  
    Dairy & livestock and agribusiness  60   243   477  
    SFR mortgage  324   339   -  
    Consumer and other loans  -   4   33  
    Total $ 21,302  $ 9,963 [1]$ 4,930  
    % of Total loans  0.24%  0.11%  0.05% 
    OREO       
    Commercial real estate $-  $-  $-  
    SFR mortgage  -   -   -  
    Total $ -  $ -  $ -  
            
    Total nonperforming assets $ 21,302  $ 9,963  $ 4,930  
    % of Nonperforming assets to total assets  0.13%  0.06%  0.03% 
            
    Past due 30-89 days (accruing)       
    Commercial real estate $300  $136  $-  
    SBA  108   -   556  
    Commercial and industrial  12   -   -  
    Dairy & livestock and agribusiness  -   -   -  
    SFR mortgage  201   -   388  
    Consumer and other loans  18   -   175  
    Total $ 639  $ 136  $ 1,119  
    % of Total loans  0.01%  0.00%  0.01% 
            
    Classified Loans $ 102,197  $ 92,246  $ 78,658  
      
    [1] Includes $2.6 million of nonaccrual loans past due 30-89 days. 
            

    The $11.3 million increase in nonperforming loans from September 30,2023 was primarily due to one nonperforming commercial real estate loan. Classified loans are loans that are graded “substandard” or worse. Classified loans increased $10 million quarter-over-quarter, primarily due to a $9.8 million increase in classified commercial real estate loans.

    Deposits & Customer Repurchase Agreements
    Deposits of $11.43 billion and customer repurchase agreements of $271.6 million totaled $11.71 billion at December 31, 2023. This represented a net decrease of $923.1 million compared to September 30, 2023. Deposits and customer repurchases decreased on average from the prior quarter by $468.5 million, or 3.63%. Total deposits and customer repurchase agreements decreased $1.7 billion, or 12.66% when compared to $13.4 billion at December 31, 2022.

    Noninterest-bearing deposits were $7.21 billion at December 31, 2023, a decrease of $380.5 million, or 5.02%, when compared to $7.59 billion at September 30, 2023. Noninterest-bearing deposits decreased by $958.2 million, or 11.74% when compared to $8.16 billion at December 31, 2022. At December 31, 2023, noninterest-bearing deposits were 63.03% of total deposits, compared to 61.39% at September 30, 2023 and 63.60% at December 31, 2022.

    Borrowings
    As of December 31, 2023, total borrowings, consisted of $1.91 billion of one-year advances from the Federal Reserve’s Bank Term Funding Program, at an average cost of 4.8% and $160 million of overnight Federal Home Loan Bank advances, at an average cost of approximately 5.7%. The Bank Term Funding Program advances include maturities of approximately $700,000 in May and $1.2 million in December of 2024.

    Capital
    The Company’s total equity was $2.08 billion at December 31, 2023. This represented an overall increase of $129.5 million from total equity of $1.95 billion at December 31, 2022. Increases to equity included $221.4 million in net earnings and a $31.2 million increase in other comprehensive income, that were partially offset by $111.6 million in cash dividends. We engaged in no stock repurchases during the second, third and fourth quarters of 2023. In the first quarter of 2023, we repurchased, under our 10b5-1 stock repurchase plan, 791,800 shares of common stock, at an average repurchase price of $23.43, totaling $18.5 million. This 10b5-1 plan expired on March 2, 2023. Our tangible book value per share at December 31, 2023 was $9.31.

    Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

        CVB Financial Corp. Consolidated 
    Capital Ratios Minimum Required Plus Capital Conservation Buffer December 31, 2023 September 30, 2023 December 31, 2022 
              
    Tier 1 leverage capital ratio 4.0% 10.3% 10.0% 9.5% 
    Common equity Tier 1 capital ratio 7.0% 14.6% 14.4% 13.5% 
    Tier 1 risk-based capital ratio 8.5% 14.6% 14.4% 13.5% 
    Total risk-based capital ratio 10.5% 15.5% 15.3% 14.4% 
              
    Tangible common equity ratio   8.5% 7.7% 7.4% 
              

    CitizensTrust
    As of December 31, 2023 CitizensTrust had approximately $4.0 billion in assets under management and administration, including $2.81 billion in assets under management. Revenues were $3.1 million for the fourth quarter of 2023 and $12.6 million for the year ended December 31, 2023, compared to $2.9 million and $11.5 million, respectively, for the same periods of 2022. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

    Corporate Overview
    CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with approximately $16 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

    Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

    Conference Call

    Management will hold a conference call at 7:30 a.m. PST/10:30 a.m. EST on Thursday, January 25, 2024 to discuss the Company’s fourth quarter and year-ended 2023 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BIcc59d6a452a8423c98659899447afe0e

    The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

    Safe Harbor
    Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

    General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target and key personnel into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the transition away from USD LIBOR and uncertainties regarding potential alternative reference rates, including SOFR; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and the costs of defending against them, including the costs of compliance with legislation or regulations to combat cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state in employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2022 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

    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. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

    Contact:David A. Brager
     President and Chief Executive Officer
     (909) 980-4030
      


    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
           
           
      December 31, 2023 September 30, 2023 December 31, 2022
     
    Cash and due from banks $171,396  $176,488  $158,236 
    Interest-earning balances due from Federal Reserve  109,889   64,207   45,225 
    Total cash and cash equivalents  281,285   240,695   203,461 
    Interest-earning balances due from depository institutions  8,216   4,108   9,553 
    Investment securities available-for-sale  2,956,125   2,873,163   3,255,211 
    Investment securities held-to-maturity  2,464,610   2,489,441   2,554,301 
    Total investment securities  5,420,735   5,362,604   5,809,512 
    Investment in stock of Federal Home Loan Bank (FHLB)  18,012   18,012   27,627 
    Loans and lease finance receivables  8,904,910   8,877,632   9,079,392 
    Allowance for credit losses  (86,842)  (88,995)  (85,117)
    Net loans and lease finance receivables  8,818,068   8,788,637   8,994,275 
    Premises and equipment, net  44,709   44,561   46,698 
    Bank owned life insurance (BOLI)  308,706   259,468   255,528 
    Intangibles  15,291   16,736   21,742 
    Goodwill  765,822   765,822   765,822 
    Other assets  340,149   402,372   342,322 
    Total assets $16,020,993  $15,903,015  $16,476,540 
    Liabilities and Stockholders' Equity      
    Liabilities:      
    Deposits:      
    Noninterest-bearing $7,206,175  $7,586,649  $8,164,364 
    Investment checking  552,408   560,223   723,870 
    Savings and money market  3,278,664   3,906,187   3,653,385 
    Time deposits  396,395   305,727   294,626 
    Total deposits  11,433,642   12,358,786   12,836,245 
    Customer repurchase agreements  271,642   269,552   565,431 
    Other borrowings  2,070,000   1,120,000   995,000 
    Other liabilities  167,737   203,276   131,347 
    Total liabilities  13,943,021   13,951,614   14,528,023 
    Stockholders' Equity      
    Stockholders' equity  2,401,541   2,378,539   2,303,313 
    Accumulated other comprehensive loss, net of tax  (323,569)  (427,138)  (354,796)
    Total stockholders' equity  2,077,972   1,951,401   1,948,517 
    Total liabilities and stockholders' equity $16,020,993  $15,903,015  $16,476,540 
           



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
               
               
        Three Months Ended
    		 Year Ended
      December 31,
    2023    		 September 30,
    2023    		 December 31,
    2022    		  2023   2022 
    Assets          
    Cash and due from banks $155,556  $176,133  $180,661  $171,265  $182,701 
    Interest-earning balances due from Federal Reserve  437,554   467,873   125,350   323,881   795,753 
    Total cash and cash equivalents  593,110   644,006   306,011   495,146   978,454 
    Interest-earning balances due from depository institutions  6,219   5,518   8,581   7,275   8,991 
    Investment securities available-for-sale  2,849,423   3,040,965   3,273,149   3,066,287   3,532,587 
    Investment securities held-to-maturity  2,478,785   2,501,625   2,569,134   2,513,201   2,406,967 
    Total investment securities  5,328,208   5,542,590   5,842,283   5,579,488   5,939,554 
    Investment in stock of FHLB  18,012   21,560   18,291   25,078   18,309 
    Loans and lease finance receivables  8,856,654   8,862,462   8,868,673   8,893,335   8,676,820 
    Allowance for credit losses  (88,943)  (86,986)  (82,612)  (86,908)  (78,159)
    Net loans and lease finance receivables  8,767,711   8,775,476   8,786,061   8,806,427   8,598,661 
    Premises and equipment, net  44,768   45,315   47,327   45,488   50,048 
    Bank owned life insurance (BOLI)  236,055   258,485   256,216   251,989   258,779 
    Intangibles  15,993   17,526   22,610   18,434   25,376 
    Goodwill  765,822   765,822   765,822   765,822   764,143 
    Other assets  393,227   357,280   341,958   351,025   269,346 
    Total assets $16,169,125  $16,433,578  $16,395,160  $16,346,172  $16,911,661 
    Liabilities and Stockholders' Equity          
    Liabilities:          
    Deposits:          
    Noninterest-bearing $7,450,856  $7,813,120  $8,702,899  $7,793,336  $8,839,577 
    Interest-bearing  4,703,144   4,769,897   4,985,591   4,644,582   5,225,081 
    Total deposits  12,154,000   12,583,017   13,688,490   12,437,918   14,064,658 
    Customer repurchase agreements  301,330   340,809   518,996   421,112   573,307 
    Other borrowings  1,585,272   1,318,098   161,197   1,352,099   40,655 
    Payable for securities purchased  551   -   6,022   158   64,801 
    Other liabilities  133,822   164,624   101,472   128,003   101,777 
    Total liabilities  14,174,975   14,406,548   14,476,177   14,339,290   14,845,198 
    Stockholders' Equity          
    Stockholders' equity  2,411,269   2,383,922   2,301,770   2,370,700   2,263,627 
    Accumulated other comprehensive loss, net of tax  (417,119)  (356,892)  (382,787)  (363,818)  (197,164)
    Total stockholders' equity  1,994,150   2,027,030   1,918,983   2,006,882   2,066,463 
    Total liabilities and stockholders' equity $16,169,125  $16,433,578  $16,395,160  $16,346,172  $16,911,661 
               



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
               
               
      Three Months Ended
    		 
    Year Ended
      December 31,
    2023    		 September 30,
    2023    		 December 31,
    2022    		  2023   2022
    Interest income:          
    Loans and leases, including fees $115,721  $113,190  $106,884 $448,295  $389,192
    Investment securities:          
    Investment securities available-for-sale  22,170   22,441   20,091  83,563   68,508
    Investment securities held-to-maturity  13,478   13,576   13,837  54,750   49,048
    Total investment income  35,648   36,017   33,928  138,313   117,556
    Dividends from FHLB stock  431   598   305  1,861   1,207
    Interest-earning deposits with other institutions  6,278   6,422   1,001  17,861   6,713
    Total interest income  158,078   156,227   142,118  606,330   514,668
    Interest expense:          
    Deposits  18,888   16,517   2,774  51,535   6,830
    Borrowings and junior subordinated debentures  19,834   16,339   1,949  66,805   2,325
    Total interest expense  38,722   32,856   4,723  118,340   9,155
    Net interest income before provision for (recapture of) credit losses  119,356   123,371   137,395  487,990   505,513
    Provision for (recapture of) credit losses  (2,000)  2,000   2,500  2,000   10,600
    Net interest income after provision for (recapture of) credit losses  121,356   121,371   134,895  485,990   494,913
    Noninterest income:          
    Service charges on deposit accounts  4,975   5,062   5,757  20,219   21,382
    Trust and investment services  3,081   3,246   2,867  12,556   11,518
    Other  11,107   6,001   3,841  26,555   17,089
    Total noninterest income  19,163   14,309   12,465  59,330   49,989
    Noninterest expense:          
    Salaries and employee benefits  35,652   34,744   34,154  139,191   131,596
    Occupancy and equipment  5,524   5,618   5,820  22,109   22,737
    Professional services  2,707   2,117   2,574  9,082   9,362
    Computer software expense  3,679   3,648   3,362  14,051   13,503
    Marketing and promotion  2,092   1,628   1,712  6,756   6,296
    Amortization of intangible assets  1,446   1,567   1,724  6,452   7,566
    (Recapture of) provision for unfunded loan commitments  (500)  (900)  -  (500)  -
    Acquisition related expenses  -   -   -  -   6,013
    Other  15,330   6,636   5,073  32,745   19,482
    Total noninterest expense  65,930   55,058   54,419  229,886   216,555
    Earnings before income taxes  74,589   80,622   92,941  315,434   328,347
    Income taxes  26,081   22,735   26,773  93,999   92,922
    Net earnings $48,508  $57,887  $66,168 $221,435  $235,425
               
    Basic earnings per common share $0.35  $0.42  $0.47 $1.59  $1.67
    Diluted earnings per common share $0.35  $0.42  $0.47 $1.59  $1.67
    Cash dividends declared per common share $0.20  $0.20  $0.20 $0.80  $0.77
               



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
               
      Three Months Ended Year Ended
      December 31,
    2023    		 September 30,
    2023    		 December 31,
    2022    		  2023   2022 
    Interest income - tax equivalent (TE) $158,620  $156,771  $142,646  $608,508  $516,409 
    Interest expense  38,722   32,856   4,723   118,340   9,155 
    Net interest income - (TE) $119,898  $123,915  $137,923  $490,168  $507,254 
               
    Return on average assets, annualized  1.19%  1.40%  1.60%  1.35%  1.39%
    Return on average equity, annualized  9.65%  11.33%  13.68%  11.03%  11.39%
    Efficiency ratio [1]  47.60%  39.99%  36.31%  42.00%  38.98%
    Noninterest expense to average assets, annualized  1.62%  1.33%  1.32%  1.41%  1.28%
    Yield on average loans  5.18%  5.07%  4.78%  5.04%  4.49%
    Yield on average earning assets (TE)  4.30%  4.18%  3.82%  4.10%  3.36%
    Cost of deposits  0.62%  0.52%  0.08%  0.41%  0.05%
    Cost of deposits and customer repurchase agreements  0.61%  0.51%  0.08%  0.41%  0.05%
    Cost of funds  1.09%  0.92%  0.13%  0.83%  0.06%
    Net interest margin (TE)  3.26%  3.31%  3.69%  3.31%  3.30%
    [1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.    
               
    Tangible Common Equity Ratio (TCE) [2]          
    CVB Financial Corp. Consolidated  8.51%  7.73%  7.40%    
    Citizens Business Bank  8.40%  7.63%  7.29%    
    [2] (Capital - [GW+Intangibles])/(Total Assets - [GW+Intangibles])    
               
    Weighted average shares outstanding          
    Basic  138,368,496   138,345,000   138,890,705   138,332,598   139,652,019 
    Diluted  138,569,762   138,480,633   139,438,103   138,461,507   140,012,135 
    Dividends declared $27,945  $27,901  $27,995  $111,640  $108,146 
    Dividend payout ratio [3]  57.61%  48.20%  42.31%  50.42%  45.94%
    [3] Dividends declared on common stock divided by net earnings.    
               
    Number of shares outstanding - (end of period)  139,344,981   139,337,699   139,818,703     
    Book value per share $14.91  $14.00  $13.94     
    Tangible book value per share $9.31  $8.39  $8.30     
               
      December 31, 2023 September 30, 2023 December 31, 2022    
            
    Nonperforming assets:          
    Nonaccrual loans $21,302  $9,963  $4,930     
    Total nonperforming assets $21,302  $9,963  $4,930     
    Modified loans/performing troubled debt restructured loans (TDR) [4] $9,460  $7,304  $7,817     
               
    [4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.    
               
    Percentage of nonperforming assets to total loans outstanding and OREO  0.24%  0.11%  0.05%    
    Percentage of nonperforming assets to total assets  0.13%  0.06%  0.03%    
    Allowance for credit losses to nonperforming assets  407.67%  893.26%  1726.51%    
               
      Three Months Ended Year Ended
      December 31,
    2023    		 September 30,
    2023    		 December 31,
    2022    		  2023   2022 
    Allowance for credit losses:          
    Beginning balance $88,995  $86,967  $82,601  $85,117  $65,019 
    Suncrest FV PCD loans  -   -   -   -   8,605 
    Total charge-offs  (181)  (26)  (127)  (405)  (197)
    Total recoveries on loans previously charged-off  28   54   143   130   1,090 
    Net recoveries (charge-offs)  (153)  28   16   (275)  893 
    Provision for (recapture of) credit losses  (2,000)  2,000   2,500   2,000   10,600 
    Allowance for credit losses at end of period $86,842  $88,995  $85,117  $86,842  $85,117 
               
    Net recoveries (charge-offs) to average loans  -0.002%  0.000%  0.000%  -0.003%  0.010%



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in millions)
                        
    Allowance for Credit Losses by Loan Type                 
                        
      December 31, 2023 September 30, 2023 December 31, 2022 
      Allowance For Credit Losses Allowance as a % of Total Loans by Respective Loan Type Allowance For Credit Losses Allowance as a % of Total Loans by Respective Loan Type Allowance For Credit Losses Allowance as a % of Total Loans by Respective Loan Type 
                        
    Commercial real estate $69.5  1.02%  $70.9  1.04%  $64.8  0.94%  
    Construction  1.3  1.91%   1.0  1.59%   1.7  1.93%  
    SBA  2.7  0.99%   3.0  1.08%   2.8  0.97%  
    Commercial and industrial  9.1  0.94%   9.3  0.99%   10.2  1.08%  
    Dairy & livestock and agribusiness  3.1  0.75%   3.6  1.01%   4.4  1.01%  
    Municipal lease finance receivables  0.2  0.29%   0.3  0.33%   0.3  0.36%  
    SFR mortgage  0.5  0.20%   0.5  0.20%   0.4  0.14%  
    Consumer and other loans  0.4  0.85%   0.4  0.82%   0.5  0.69%  
                        
    Total $86.8  0.98%  $89.0  1.00%  $85.1  0.94%  
                        



    CVB FINANCIAL CORP. AND SUBSIDIARIES 
    SELECTED FINANCIAL HIGHLIGHTS 
    (Unaudited) 
    (Dollars in thousands, except per share amounts) 
                  
    Quarterly Common Stock Price 
                  
       2023   2022   2021  
    Quarter End High Low High Low High Low 
    March 31, $25.98 $16.34  $24.37  $21.36  $25.00  $19.15  
    June 30, $16.89 $10.66  $25.59  $22.37  $22.98  $20.50  
    September 30, $19.66 $12.89  $28.14  $22.63  $20.86  $18.72  
    December 31, $21.77 $14.62  $29.25  $25.26  $21.85  $19.00  
                  
    Quarterly Consolidated Statements of Earnings 
                  
        Q4 Q3 Q2 Q1 Q4 
         2023   2023   2023   2023   2022  
    Interest income             
    Loans and leases, including fees   $115,721  $113,190  $110,990  $108,394  $106,884  
    Investment securities and other    42,357   43,037   38,249   34,392   35,234  
    Total interest income    158,078   156,227   149,239   142,786   142,118  
    Interest expense             
    Deposits    18,888   16,517   10,765   5,365   2,774  
    Other borrowings    19,834   16,339   18,939   11,693   1,949  
    Total interest expense    38,722   32,856   29,704   17,058   4,723  
    Net interest income before (recapture of)           
    provision for credit losses    119,356   123,371   119,535   125,728   137,395  
    (Recapture of) provision for credit losses  (2,000)  2,000   500   1,500   2,500  
    Net interest income after (recapture of)           
    provision for credit losses    121,356   121,371   119,035   124,228   134,895  
                  
    Noninterest income    19,163   14,309   12,656   13,202   12,465  
    Noninterest expense    65,930   55,058   54,017   54,881   54,419  
    Earnings before income taxes    74,589   80,622   77,674   82,549   92,941  
    Income taxes    26,081   22,735   21,904   23,279   26,773  
    Net earnings   $48,508  $57,887  $55,770  $59,270  $66,168  
                  
    Effective tax rate    34.97%  28.20%  28.20%  28.20%  28.81% 
                  
    Basic earnings per common share  $0.35  $0.42  $0.40  $0.42  $0.47  
    Diluted earnings per common share $0.35  $0.42  $0.40  $0.42  $0.47  
                  
    Cash dividends declared per common share $0.20  $0.20  $0.20  $0.20  $0.20  
                  
    Cash dividends declared   $27,945  $27,901  $27,787  $28,007  $27,995  



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
               
    Loan Portfolio by Type
      December 31, September 30,June 30, March 31, December 31,
       2023   2023   2023   2023   2022 
               
    Commercial real estate $6,784,505  $6,843,059  $6,904,095  $6,950,302  $6,884,948 
    Construction  66,734   63,022   68,836   83,992   88,271 
    SBA  270,619   283,124   278,904   283,464   290,908 
    SBA - PPP  2,736   3,233   5,017   5,824   9,087 
    Commercial and industrial  969,895   938,064   956,242   898,167   948,683 
    Dairy & livestock and agribusiness  412,891   351,463   298,247   307,820   433,564 
    Municipal lease finance receivables  73,590   75,621   77,867   79,552   81,126 
    SFR mortgage  269,868   268,171   263,201   262,324   266,024 
    Consumer and other loans  54,072   51,875   54,988   71,044   76,781 
    Gross loans, at amortized cost  8,904,910   8,877,632   8,907,397   8,942,489   9,079,392 
    Allowance for credit losses  (86,842)  (88,995)  (86,967)  (86,540)  (85,117)
    Net loans $8,818,068  $8,788,637  $8,820,430  $8,855,949  $8,994,275 
               
               
               
    Deposit Composition by Type and Customer Repurchase Agreements
               
      December 31, September 30,June 30, March 31, December 31,
       2023   2023   2023   2023   2022 
               
    Noninterest-bearing $7,206,175  $7,586,649  $7,878,810  $7,844,329  $8,164,364 
    Investment checking  552,408   560,223   574,817   668,947   723,870 
    Savings and money market  3,278,664   3,906,187   3,627,858   3,474,651   3,653,385 
    Time deposits  396,395   305,727   316,036   283,943   294,626 
    Total deposits  11,433,642   12,358,786   12,397,521   12,271,870   12,836,245 
               
    Customer repurchase agreements  271,642   269,552   452,373   490,235   565,431 
    Total deposits and customer repurchase agreements $11,705,284  $12,628,338  $12,849,894  $12,762,105  $13,401,676 
               



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
               
    Nonperforming Assets and Delinquency Trends
      December 31, September 30,June 30, March 31, December 31,
       2023   2023   2023   2023   2022 
    Nonperforming loans:          
    Commercial real estate $15,440  $3,655  $3,159  $2,634  $2,657 
    Construction  -   -   -   -   - 
    SBA  969   1,050   629   702   443 
    SBA - PPP  -   -   -   -   - 
    Commercial and industrial  4,509   4,672   2,039   2,049   1,320 
    Dairy & livestock and agribusiness  60   243   273   406   477 
    SFR mortgage  324   339   354   384   - 
    Consumer and other loans  -   4   -   -   33 
    Total $21,302  $9,963 [1]$6,454  $6,175  $4,930 
    % of Total loans  0.24%  0.11%  0.07%  0.07%  0.05%
               
    Past due 30-89 days (accruing):          
    Commercial real estate $300  $136  $532  $425  $- 
    Construction  -   -   -   -   - 
    SBA  108   -   -   575   556 
    Commercial and industrial  12   -   -   -   - 
    Dairy & livestock and agribusiness  -   -   555   183   - 
    SFR mortgage  201   -   -   -   388 
    Consumer and other loans  18   -   -   -   175 
    Total $639  $136  $1,087  $1,183  $1,119 
    % of Total loans  0.01%  0.00%  0.01%  0.01%  0.01%
               
    OREO:          
    Commercial real estate $-  $-  $-  $-  $- 
    SBA  -   -   -   -   - 
    SFR mortgage  -   -   -   -   - 
    Total $-  $-  $-  $-  $- 
    Total nonperforming, past due, and OREO $21,941  $10,099  $7,541  $7,358  $6,049 
    % of Total loans  0.25%  0.11%  0.08%  0.08%  0.07%
               
    [1] Includes $2.6 million of nonaccrual loans past due 30-89 days.       
               
     



    CVB FINANCIAL CORP. AND SUBSIDIARIES 
    SELECTED FINANCIAL HIGHLIGHTS 
    (Unaudited) 
              
    Regulatory Capital Ratios 
              
              
              
        CVB Financial Corp. Consolidated 
    Capital Ratios Minimum Required Plus Capital Conservation Buffer December 31,
    2023    		 September 30,
    2023    		 December 31,
    2022    		 
              
    Tier 1 leverage capital ratio 4.0% 10.3% 10.0% 9.5% 
    Common equity Tier 1 capital ratio 7.0% 14.6% 14.4% 13.5% 
    Tier 1 risk-based capital ratio 8.5% 14.6% 14.4% 13.5% 
    Total risk-based capital ratio 10.5% 15.5% 15.3% 14.4% 
              
    Tangible common equity ratio   8.5% 7.7% 7.4% 
              



    Tangible Book Value Reconciliations (Non-GAAP)

    The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of tangible book value to the Company stockholders' equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of December 31, 2023, September 30, 2023 and December 31, 2022.

      December 31,
    2023    		 September 30,
    2023    		 December 31,
    2022
      (Dollars in thousands, except per share amounts)
           
    Stockholders' equity $         2,077,972 $         1,951,401 $         1,948,517
    Less: Goodwill (765,822) (765,822) (765,822)
    Less: Intangible assets (15,291) (16,736) (21,742)
    Tangible book value $         1,296,859 $         1,168,843 $         1,160,953
    Common shares issued and outstanding 139,344,981 139,337,699 139,818,703
    Tangible book value per share $                   9.31 $                   8.39 $                   8.30


    Return on Average Tangible Common Equity Reconciliations (Non-GAAP)

    The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.

      Three Months Ended Year Ended
      December 31, September 30, December 31,    
      2023 2023 2022 2023 2022
      (Dollars in thousands)
               
    Net Income $        48,508 $        57,887 $        66,168 $      221,435 $      235,425
    Add: Amortization of intangible assets 1,446 1,567 1,724 6,452 7,566
    Less: Tax effect of amortization of
    intangible assets [1]    		 (427) (463) (510) (1,907) (2,237)
    Tangible net income $        49,527 $        58,991 $        67,382 $      225,980 $      240,754
               
    Average stockholders' equity $   1,994,150 $   2,027,030 $   1,918,983 $   2,006,882 $   2,066,463
    Less: Average goodwill (765,822) (765,822) (765,822) (765,822) (764,143)
    Less: Average intangible assets (15,993) (17,526) (22,610) (18,434) (25,376)
    Average tangible common equity $   1,212,335 $   1,243,682 $   1,130,551 $   1,222,626 $   1,276,944
               
    Return on average equity, annualized [2] 9.65% 11.33% 13.68% 11.03% 11.39%
    Return on average tangible common equity,
    annualized [2]    		 16.21% 18.82% 23.65% 18.48% 18.85%
               
               
    [1] Tax effected at respective statutory rates.
    [2] Annualized where applicable.
               

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