CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (the “Company”), announced earnings for the quarter
ended June 30, 2023.
CVB Financial Corp. reported net income of $55.8 million for the
quarter ended June 30, 2023, compared with $59.3 million for the
first quarter of 2023 and $59.1 million for the second quarter of
2022. Diluted earnings per share were $0.40 for the second quarter,
compared to $0.42 for the prior quarter and $0.42 for the same
period last year. The second quarter of 2023 included $500,000 in
provision for credit losses, compared to $1.5 million in provision
for the first quarter and $3.6 million in the second quarter of
2022. Net income of $55.8 million for the second quarter of 2023
produced an annualized return on average equity (“ROAE”) of 11.03%,
an annualized return on average tangible common equity (“ROATCE”)
of 18.39%, and an annualized return on average assets (“ROAA”) of
1.36%. Our net interest margin, tax equivalent (“NIM”), was 3.22%
for the second quarter of 2023, while our efficiency ratio was
40.86%.
David Brager, President and Chief Executive Officer of Citizens
Business Bank, commented, “We are pleased to present our second
quarter results. Despite the challenging environment, the Bank
continued to produce solid financial performance across our key
operating metrics. We will continue to focus on executing on our
core strategies and supporting our customers through these
demanding times. I would like to thank our customers and associates
for their commitment and loyalty.”
INCOME STATEMENT HIGHLIGHTS
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
(Dollars in
thousands, except per share amounts) |
Net interest income |
$ |
119,535 |
|
|
$ |
125,728 |
|
|
$ |
121,940 |
|
|
$ |
245,263 |
|
|
$ |
234,780 |
|
Provision
for credit losses |
|
(500 |
) |
|
|
(1,500 |
) |
|
|
(3,600 |
) |
|
|
(2,000 |
) |
|
|
(6,100 |
) |
Noninterest
income |
|
12,656 |
|
|
|
13,202 |
|
|
|
14,670 |
|
|
|
25,858 |
|
|
|
25,934 |
|
Noninterest
expense |
|
(54,017 |
) |
|
|
(54,881 |
) |
|
|
(50,871 |
) |
|
|
(108,898 |
) |
|
|
(109,109 |
) |
Income
taxes |
|
(21,904 |
) |
|
|
(23,279 |
) |
|
|
(23,081 |
) |
|
|
(45,183 |
) |
|
|
(40,887 |
) |
Net earnings |
$ |
55,770 |
|
|
$ |
59,270 |
|
|
$ |
59,058 |
|
|
$ |
115,040 |
|
|
$ |
104,618 |
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.42 |
|
|
$ |
0.83 |
|
|
$ |
0.74 |
|
Diluted |
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.42 |
|
|
$ |
0.82 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
NIM |
|
3.22 |
% |
|
|
3.45 |
% |
|
|
3.16 |
% |
|
|
3.33 |
% |
|
|
3.03 |
% |
ROAA |
|
1.36 |
% |
|
|
1.47 |
% |
|
|
1.39 |
% |
|
|
1.42 |
% |
|
|
1.23 |
% |
ROAE |
|
11.03 |
% |
|
|
12.15 |
% |
|
|
11.33 |
% |
|
|
11.58 |
% |
|
|
9.74 |
% |
ROATCE |
|
18.39 |
% |
|
|
20.59 |
% |
|
|
18.67 |
% |
|
|
19.46 |
% |
|
|
15.73 |
% |
Efficiency
ratio |
|
40.86 |
% |
|
|
39.50 |
% |
|
|
37.24 |
% |
|
|
40.17 |
% |
|
|
41.85 |
% |
Noninterest
expense to average assets, annualized |
|
1.32 |
% |
|
|
1.36 |
% |
|
|
1.20 |
% |
|
|
1.34 |
% |
|
|
1.28 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest IncomeNet interest income was
$119.5 million for the second quarter of 2023. This represented a
$6.2 million, or 4.93%, decrease from the first quarter of 2023,
and a $2.4 million, or 1.97%, decrease from the second quarter of
2022. The $6.2 million quarter-over-quarter decline in net interest
income was primarily due to a 0.23% decline in net interest margin.
The decline in net interest income compared to the second quarter
of 2022 was primarily due to a $593.1 million decrease in average
earning assets, that was partially offset by a six basis point
increase in the net interest margin.
Net Interest MarginOur tax equivalent net
interest margin was 3.22% for the second quarter of 2023, compared
to 3.45% for the first quarter of 2023 and 3.16% for the second
quarter of 2022. The 23 basis point decrease in our net interest
margin compared to the first quarter of 2023, was primarily due to
a 34 basis point increase in our cost of funds. Cost of funds
increased in part due to a $555 million increase in short-term
borrowings, which had an average cost of 4.90% during the second
quarter of 2023. The cost of interest-bearing deposits increased by
49 basis points from the first quarter; however, our total cost of
deposits and customer repurchases only increased by 18 basis
points, as noninterest-bearing deposits were more than 63% of
average deposits during the second quarter of 2023. Our
interest-earning asset yield increased by 10 basis points over the
prior quarter, primarily due to an 11 basis point increase in loan
yields. The six basis point increase in net interest margin,
compared to the second quarter of 2022 was the net result of an 81
basis point increase in earning asset yield, offset by a 79 basis
point increase in cost of funds. Loan yields grew from 4.31% for
the second quarter of 2022 to 5.01% for the second quarter of 2023.
Likewise, the yield on investment securities increased by 44 basis
points from the prior year quarter. Loan balances grew to 59.41% of
earning assets on average for the second quarter of 2023, compared
to 55.49% for the second quarter of 2022, while our average balance
at the Fed declined from 5.1% of earning assets in the second
quarter of 2022 to 2.3% in the second quarter of 2023. Total cost
of funds of 0.83% for the second quarter of 2023 increased from
0.04% for the year ago quarter. This 79 basis point increase in
cost of funds was the result of an 87 basis point increase in the
cost of interest-bearing deposits and an average cost of 4.90% on
$1.53 billion of short-term borrowings for the second quarter of
2023. On average, noninterest-bearing deposits were 63.58% of total
deposits during the most recent quarter, compared to 63.65% for the
first quarter of 2023 and 62.96% for the second quarter of
2022.
Earning Assets and DepositsOn average, earning
assets grew by $164.8 million, compared to the first quarter of
2023, while declining by $593.1 million when compared to the second
quarter of 2022. The $164.8 million quarter-over-quarter increase
in earning assets resulted from a $310.2 million increase in
average earning balances due from the Federal Reserve, offset by
average investment securities declining by $73.1 million and
average loans decreasing by $70.9 million. Compared to the second
quarter of 2022, average loans increased by $257.8 million, while
the average balance of investment securities declined by $414.4
million, and the average amount of funds held at the Federal
Reserve declined by $450.1 million. Noninterest-bearing deposits
declined on average by $269.2 million, or 3.33%, from the first
quarter of 2023, while interest-bearing deposits and customer
repurchase agreements declined on average by $195.1 million.
Compared to the second quarter of 2022, total deposits and customer
repurchase agreements declined on average by $1.95 billion, or
13.24%, including a decline of $1.1 billion in noninterest-bearing
deposits.
|
|
Three Months Ended |
|
SELECTED FINANCIAL HIGHLIGHTS |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
|
|
(Dollars in
thousands) |
|
Yield on average investment securities (TE) |
|
2.37 |
% |
|
|
2.37 |
% |
|
|
1.93 |
% |
|
Yield on average loans |
|
5.01 |
% |
|
|
4.90 |
% |
|
|
4.31 |
% |
|
Core Loan Yield [1] |
|
4.96 |
% |
|
|
4.85 |
% |
|
|
4.20 |
% |
|
Yield on average earning assets (TE) |
|
4.01 |
% |
|
|
3.91 |
% |
|
|
3.20 |
% |
|
Cost of deposits |
|
0.35 |
% |
|
|
0.17 |
% |
|
|
0.03 |
% |
|
Cost of funds |
|
0.83 |
% |
|
|
0.49 |
% |
|
|
0.04 |
% |
|
Net interest margin (TE) |
|
3.22 |
% |
|
|
3.45 |
% |
|
|
3.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
Avg |
|
% of Total |
|
Total investment securities |
$ |
5,689,606 |
|
38.01 |
% |
|
$ |
5,762,728 |
|
38.93 |
% |
|
$ |
6,104,037 |
|
39.23 |
% |
|
|
Interest-earning deposits with other institutions |
|
353,610 |
|
2.36 |
% |
|
|
47,934 |
|
0.32 |
% |
|
|
804,147 |
|
5.17 |
% |
|
|
Loans |
|
8,892,413 |
|
59.41 |
% |
|
|
8,963,323 |
|
60.55 |
% |
|
|
8,634,575 |
|
55.49 |
% |
|
|
Total
interest-earning assets |
|
14,967,661 |
|
|
|
|
14,802,853 |
|
|
|
|
15,560,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Represents yield on average loans excluding the
impact of discount accretion and PPP loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit Losses The second quarter
of 2023 included $500,000 in provision for credit losses, compared
to a $1.5 million in provision for credit losses in the first
quarter of 2023 and $3.6 million in the second 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 June 30, 2023. The increase in
projected loss rates continues to be driven primarily by a
deteriorating economic forecast that assumes modest GDP growth
through 2024, as well as lower commercial real estate values and an
increase in the rate of unemployment.
Noninterest IncomeNoninterest income was $12.7
million for the second quarter of 2023, compared with $13.2 million
for the first quarter of 2023 and $14.7 million for the second
quarter of 2022. Service charges on deposits decreased by $506,000,
or 9.47% over the first quarter of 2023 and declined by $495,000,
or 9.28% in comparison to the second quarter of 2022. Trust and
investment services income grew by $401,000 compared to the first
quarter of 2023 and increased by $353,000 year-over-year. The
second quarter of 2023 included approximately $800,000 in death
benefits that exceeded the asset value of certain BOLI policies,
and approximately $100,000 in swap fees for transitioning swaps out
of LIBOR, partially offset by a $475,000 decrease in CRA investment
income due to underlying asset valuation declines. The first
quarter of 2023 included approximately $500,000 in interest rate
swap related fees for the conversion of instruments from LIBOR to
SOFR and the recapture of a previous impairment charge of $500,000,
as a result of the payoff of a CRA investment that was previously
identified as impaired. Compared to the second quarter of 2022,
BOLI income increased $1.5 million due to valuation changes and
death benefits that exceeded policy values. Income related to CRA
investments declined by $716,000 compared to the year ago quarter.
The second quarter of 2022 also included $2.7 million in net gains
on the sale of properties associated with our banking centers.
Noninterest ExpenseNoninterest expense for the
second quarter of 2023 was $54.0 million, compared to $54.9 million
for the first quarter of 2023 and $50.9 million for the second
quarter of 2022. The second quarter of 2023 included $400,000 in
provision for unfunded loan commitments, compared to $500,000 in
provision for the first quarter of 2023 and no provision for the
second quarter of 2022. The $1.7 million quarter-over-quarter
decrease in salaries and employee benefit costs was primarily due
to the higher payroll taxes typically incurred in the first quarter
of each year. The $866,000 quarter-over-quarter increase in
professional services included increases of $357,000 in legal
expense and $228,000 in other professional services due to the
timing of various projects. The $3.1 million increase in
noninterest expense year-over-year included an increase of $2.0
million in salaries and employee benefits and a $785,000 increase
in FDIC assessments. As a percentage of average assets, noninterest
expense was 1.32% for the second quarter of 2023, compared to 1.36%
for the first quarter of 2023 and 1.20% for the second quarter of
2022. The efficiency ratio for the second quarter of 2023 was
40.86%, compared to 39.50% for the first quarter of 2023 and 37.24%
for the second quarter of 2022.
Income TaxesOur effective tax rate for the
quarter ended June 30, 2023 and year-to-date was 28.20%, compared
with 28.10% for the second quarter of 2022. Our estimated annual
effective tax rate can vary depending upon the level of
tax-advantaged income as well as available tax credits.
BALANCE SHEET HIGHLIGHTS
AssetsThe Company reported total assets of
$16.48 billion at June 30, 2023. This represented an increase of
$210.5 million, or 1.29%, from total assets of $16.27 billion at
March 31, 2023. Interest-earning assets of $14.94 billion at June
30, 2023 increased by $136.8 million, or 0.92%, when compared with
$14.80 billion at March 31, 2023. The increase in interest-earning
assets was primarily due a $322.2 million increase in
interest-earning balances due from the Federal Reserve, partially
offset by a $159.6 million decrease in investment securities and a
$35.1 million decrease in total loans.
Total assets increased by $8.0 million, or 0.05%, from total
assets of $16.48 billion at December 31, 2022. Interest-earning
assets of $14.94 billion at June 30, 2023 decreased by $36.1
million, or 0.24%, when compared with $14.97 billion at December
31, 2022. The decrease in interest-earning assets was primarily due
to a $228.7 million decrease in investment securities and a $172.0
million decrease in total loans, partially offset by a $341.8
million increase in interest-earning balances due from the Federal
Reserve.
Total assets at June 30, 2023 decreased by $275.4 million, or
1.64%, from total assets of $16.76 billion at June 30, 2022.
Interest-earning assets decreased by $344.3 million, or 2.25%, when
compared with $15.28 billion at June 30, 2022. The decrease in
interest-earning assets included a $457.6 million decrease in
investment securities and a $136.4 million decrease in
interest-earning balances due from the Federal Reserve, partially
offset by a $215.2 million increase in total loans. The increase in
total loans from June 30, 2022, included a $61.9 million decrease
in PPP loans with a remaining outstanding balance totaling $5.0
million as of June 30, 2023. Excluding PPP loans, total loans
increased by $277.1 million from June 30, 2022.
Investment SecuritiesTotal investment
securities were $5.58 billion at June 30, 2023, a decrease of
$228.7 million, or 3.94%, from $5.81 billion at December 31, 2022
and a decrease of $457.6 million, or 7.58%, from $6.04 billion at
June 30, 2022.
At June 30, 2023, investment securities held-to-maturity (“HTM”)
totaled $2.51 billion, a decrease of $41.6 million, or 1.63%, from
December 31, 2022 and a $100.4 million increase, or 4.16%, from
June 30, 2022.
At June 30, 2023, investment securities available-for-sale
(“AFS”) totaled $3.07 billion, inclusive of a pre-tax net
unrealized loss of $497.7 million. AFS securities decreased by
$187.1 million, or 5.75%, from $3.26 billion at December 31, 2022
and decreased by $558.0 million, or 15.39%, from June 30,
2022.
In June of 2023, fair value hedging transactions were executed
in which $1 billion notional pay-fixed interest rate swaps were
consummated with maturities ranging from four to five years,
wherein the Company pays a weighted average fixed rate of
approximately 3.8% and receives daily SOFR. The fair value of these
instruments totaled approximately $8 million on June 30, 2023.
Combined, the AFS and HTM investments in mortgage-backed
securities (“MBS”) and collateralized mortgage obligations (“CMO”)
totaled $4.54 billion or approximately 81% of our total investment
securities at June 30, 2023. Virtually all of our MBS and CMOs are
issued or guaranteed by government or government-sponsored
enterprises, which have the implied guarantee of the U.S.
Government. In addition, at June 30, 2023, we held $538.9 million
of Government Agency securities (HTM) that represent approximately
9.7% of the total investment securities.
Our combined AFS and HTM municipal securities totaled $496.6
million as of June 30, 2023, or approximately 8.9% 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 15.84%, Minnesota at
11.20%, California at 9.53%, Ohio at 6.30%, Massachusetts at 6.25%,
and Washington at 5.79%.
LoansTotal loans and leases, at amortized cost
of $8.91 billion at June 30, 2023, decreased by $35.1 million, or
0.39%, from March 31, 2023. The quarter-over quarter decrease in
core loans included decreases of $46.2 million in commercial real
estate loans, $15.2 million in construction loans, $4.6 million in
SBA loans, and $16.1 million in consumer and other loans, partially
offset by an increase of $58.1 million in commercial and industrial
loans.
Total loans and leases, at amortized cost, decreased by $172.0
million, or 1.89%, from December 31, 2022. After adjusting for
seasonality of dairy & livestock and PPP loans, our core loans
declined by $31.9 million, or 0.37%, from December 31, 2022. The
$172.0 million decrease in total loans included decreases of $136.0
million in dairy & livestock loans, $19.4 million in
construction loans, $12.0 million in SBA loans, $4.1 million in PPP
loans, and $21.8 million in consumer and other loans, partially
offset by increases of $19.1 million in commercial real estate
loans, and $7.6 million in commercial and industrial loans.
Commercial and industrial line utilization was 31% at June 30,
2023, compared to 33% at the end of 2022. The decline in dairy
& livestock loans primarily relates to the seasonal peak in
line utilization at the end of every calendar year, demonstrated by
a decline in utilization from 78% at December 31, 2022 to 68% at
June 30, 2023.
Total loans and leases, at amortized cost, increased by $215.2
million, or 2.48%, from June 30, 2022. After adjusting for PPP
loans, our core loans grew by $277.1 million, or 3.21%, from the
end of the second quarter of 2022. Commercial real estate loans
grew by $260.5 million, dairy & livestock and agribusiness
loans grew by $24.7 million, commercial and industrial loans
increased $14.6 million, municipal lease financings increased by
$13.4 million, and SFR mortgage loans increased by $3.0 million.
This core loan growth was partially offset by decreases of $18.2
million in SBA loans and $29.1 million in consumer and other
loans.
Asset QualityDuring the second quarter of 2023,
we experienced credit charge-offs of $88,000 and total recoveries
of $15,000, resulting in net charge-offs of $73,000. The allowance
for credit losses (“ACL”) totaled $87.0 million at June 30, 2023,
compared to $86.5 million at March 31, 2023 and $80.2 million at
June 30, 2022. The ACL was increased by $1.9 million in 2023,
including a $2.0 million provision for credit losses. At June 30,
2023, ACL as a percentage of total loans and leases outstanding was
0.98%. This compares to 0.97% and 0.92% at March 31, 2023 and June
30, 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 loans plus OREO, are highlighted below.
Nonperforming Assets and Delinquency Trends |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
|
|
|
Nonperforming loans |
|
(Dollars in
thousands) |
Commercial real estate |
|
$ |
3,159 |
|
|
$ |
2,634 |
|
|
$ |
6,843 |
|
SBA |
|
|
629 |
|
|
|
702 |
|
|
|
1,075 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
2,039 |
|
|
|
2,049 |
|
|
|
1,655 |
|
Dairy & livestock and agribusiness |
|
|
273 |
|
|
|
406 |
|
|
|
3,354 |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
|
354 |
|
|
|
384 |
|
|
|
37 |
|
Total |
|
$ |
6,454 |
|
|
$ |
6,175 |
|
|
$ |
12,964 |
|
% of Total loans |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.15 |
% |
OREO |
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
6,454 |
|
|
$ |
6,175 |
|
|
$ |
12,964 |
|
% of
Nonperforming assets to total assets |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.08 |
% |
|
|
|
|
|
|
|
Past
due 30-89 days |
|
|
|
|
|
|
Commercial real estate |
|
$ |
532 |
|
|
$ |
425 |
|
|
$ |
559 |
|
SBA |
|
|
- |
|
|
|
575 |
|
|
|
- |
|
Commercial and industrial |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
|
555 |
|
|
|
183 |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
1,087 |
|
|
$ |
1,183 |
|
|
$ |
559 |
|
% of Total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
Classified Loans |
|
$ |
77,834 |
|
|
$ |
66,977 |
|
|
$ |
76,170 |
|
|
The $279,000 increase in nonperforming loans from March 31, 2023
was primarily due to an increase of $525,000 in commercial real
estate loans. Classified loans are loans that are graded
“substandard” or worse. Classified loans increased $10.9 million
quarter-over-quarter, primarily due to a $9.7 million increase in
classified commercial real estate loans and a $6.1 million increase
in classified dairy & livestock and agribusiness loans,
partially offset by a $4.4 million decrease in classified
commercial and industrial loans.
Deposits & Customer Repurchase
AgreementsDeposits of $12.40 billion and customer
repurchase agreements of $452.3 million totaled $12.85 billion at
June 30, 2023. This represented an increase of $125.7 million in
deposits and a decrease of $37.9 million in customer repurchases
compared to March 31, 2023. Deposits and customer repurchase
agreements declined by $551.8 million, or 4.12%, when compared with
$13.40 billion at December 31, 2022. Total deposits and customer
repurchase agreements decreased $1.73 billion, or 11.84% when
compared with $14.58 billion at June 30, 2022. Higher interest
rates that have resulted from the Federal Reserve’s significant
increase in the federal funds rate over the last year have
continued to impact deposit levels, including approximately $550
million of funds on deposit at the end of 2022 that were
transferred from the Bank’s balance sheet to be invested by
Citizens Trust in higher yielding instruments such as treasury
notes.
Noninterest-bearing deposits were $7.88 billion at June 30,
2023, an increase of $34.5 million, or 0.44%, when compared to
$7.84 billion at March 31, 2023. Noninterest-bearing deposits
decreased $285.6 million, or 3.50% when compared to $8.16 billion
at December 31, 2022, and decreased $1.0 billion, or 11.29%, when
compared to $8.88 billion at June 30, 2022. At June 30, 2023,
noninterest-bearing deposits were 63.55% of total deposits,
compared to 63.92% at March 31, 2023, 63.60% at December 31, 2022,
and 63.11% at June 30, 2022.
Short–Term BorrowingsAs of June 30, 2023, total
short-term borrowings, consisted of $695 million of one-year
advances from the Federal Reserve’s Bank Term Funding Program, at a
cost of 4.7% and $800 million of short-term Federal Home Loan Bank
advances, at an average cost of approximately 5%.
CapitalThe Company’s total equity was $2.00
billion at June 30, 2023. This represented an overall increase of
$52.9 million from total equity of $1.95 billion at December 31,
2022. Increases to equity included $115.0 million in net earnings
and a $9.9 million increase in other comprehensive income. At the
end of the second quarter of 2023, we entered into pay-fixed rate
swaps to mitigate the risks of rising interest rates. This resulted
in a fair value remeasurement of this swap derivative of $7.8
million at June 30, 2023, resulting in an increase in other
comprehensive income. Decreases from December 31, 2022 included
$55.8 million in cash dividends. We engaged in no stock repurchases
during the second quarter of 2023, compared to the first quarter of
2023, when 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 and no new plan has been put in place since that time. Our
tangible book value per share at June 30, 2023 was $8.74.
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 |
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0 |
% |
|
9.8 |
% |
|
9.5 |
% |
|
8.8 |
% |
|
Common
equity Tier 1 capital ratio |
|
7.0 |
% |
|
14.1 |
% |
|
13.6 |
% |
|
13.4 |
% |
|
Tier 1
risk-based capital ratio |
|
8.5 |
% |
|
14.1 |
% |
|
13.6 |
% |
|
13.4 |
% |
|
Total
risk-based capital ratio |
|
10.5 |
% |
|
14.9 |
% |
|
14.4 |
% |
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
7.8 |
% |
|
7.4 |
% |
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CitizensTrustAs of June 30, 2023 CitizensTrust
had approximately $3.61 billion in assets under management and
administration, including $2.41 billion in assets under management.
Revenues were $3.3 million for the second quarter of 2023 and $6.2
million for the six months ended June 30, 2023, compared to $3.0
million and $5.8 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 OverviewCVB 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 over $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 3 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 CallManagement will hold a
conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, July
27, 2023 to discuss the Company’s second quarter 2023 financial
results. The conference call can be accessed live by registering
at:
https://register.vevent.com/register/BI330d7e9b6832431083833dedd79e1141.
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
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 new 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 taxes, banking, securities, and
insurance, and the application thereof by regulatory bodies; 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; 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 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 potential legislation to combat
cybersecurity at a state, national, or global level; our ability to
recruit and retain key executives, board members and other
employees, and changes in employment laws and regulations;
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 presentation 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
presentation 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
231,316 |
|
|
$ |
158,236 |
|
|
$ |
173,266 |
|
Interest-earning balances due from Federal Reserve |
|
|
387,039 |
|
|
|
45,225 |
|
|
|
523,443 |
|
Total cash and cash equivalents |
|
|
618,355 |
|
|
|
203,461 |
|
|
|
696,709 |
|
Interest-earning balances due from depository institutions |
|
|
30,478 |
|
|
|
9,553 |
|
|
|
7,382 |
|
Investment securities available-for-sale |
|
|
3,068,151 |
|
|
|
3,255,211 |
|
|
|
3,626,157 |
|
Investment securities held-to-maturity |
|
|
2,512,707 |
|
|
|
2,554,301 |
|
|
|
2,412,308 |
|
Total investment securities |
|
|
5,580,858 |
|
|
|
5,809,512 |
|
|
|
6,038,465 |
|
Investment in stock of Federal Home Loan Bank (FHLB) |
|
|
29,484 |
|
|
|
27,627 |
|
|
|
18,012 |
|
Loans and lease finance receivables |
|
|
8,907,397 |
|
|
|
9,079,392 |
|
|
|
8,692,229 |
|
Allowance for credit losses |
|
|
(86,967 |
) |
|
|
(85,117 |
) |
|
|
(80,222 |
) |
Net loans and lease finance receivables |
|
|
8,820,430 |
|
|
|
8,994,275 |
|
|
|
8,612,007 |
|
Premises and equipment, net |
|
|
45,518 |
|
|
|
46,698 |
|
|
|
47,100 |
|
Bank owned life insurance (BOLI) |
|
|
257,348 |
|
|
|
255,528 |
|
|
|
259,958 |
|
Intangibles |
|
|
18,303 |
|
|
|
21,742 |
|
|
|
25,312 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
Other assets |
|
|
317,948 |
|
|
|
342,322 |
|
|
|
289,226 |
|
Total assets |
|
$ |
16,484,544 |
|
|
$ |
16,476,540 |
|
|
$ |
16,759,993 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,878,810 |
|
|
$ |
8,164,364 |
|
|
$ |
8,881,223 |
|
Investment checking |
|
|
574,817 |
|
|
|
723,870 |
|
|
|
695,054 |
|
Savings and money market |
|
|
3,627,858 |
|
|
|
3,653,385 |
|
|
|
4,145,634 |
|
Time deposits |
|
|
316,036 |
|
|
|
294,626 |
|
|
|
350,308 |
|
Total deposits |
|
|
12,397,521 |
|
|
|
12,836,245 |
|
|
|
14,072,219 |
|
Customer repurchase agreements |
|
|
452,373 |
|
|
|
565,431 |
|
|
|
502,829 |
|
Other borrowings |
|
|
1,495,000 |
|
|
|
995,000 |
|
|
|
- |
|
Payable for securities purchased |
|
|
- |
|
|
|
- |
|
|
|
80,230 |
|
Other liabilities |
|
|
138,283 |
|
|
|
131,347 |
|
|
|
122,504 |
|
Total liabilities |
|
|
14,483,177 |
|
|
|
14,528,023 |
|
|
|
14,777,782 |
|
Stockholders’ Equity |
|
|
|
|
|
|
Stockholders’ equity |
|
|
2,346,243 |
|
|
|
2,303,313 |
|
|
|
2,229,050 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(344,876 |
) |
|
|
(354,796 |
) |
|
|
(246,839 |
) |
Total stockholders’ equity |
|
|
2,001,367 |
|
|
|
1,948,517 |
|
|
|
1,982,211 |
|
Total liabilities and stockholders’ equity |
|
$ |
16,484,544 |
|
|
$ |
16,476,540 |
|
|
$ |
16,759,993 |
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED AVERAGE BALANCE SHEETS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
178,405 |
|
|
$ |
175,129 |
|
|
$ |
178,752 |
|
|
$ |
176,776 |
|
|
$ |
182,884 |
|
Interest-earning balances due from Federal Reserve |
|
347,161 |
|
|
|
36,950 |
|
|
|
797,268 |
|
|
|
192,913 |
|
|
|
1,222,943 |
|
Total cash and cash equivalents |
|
525,566 |
|
|
|
212,079 |
|
|
|
976,020 |
|
|
|
369,689 |
|
|
|
1,405,827 |
|
Interest-earning balances due from depository institutions |
|
6,449 |
|
|
|
10,984 |
|
|
|
6,879 |
|
|
|
8,704 |
|
|
|
9,985 |
|
Investment securities available-for-sale |
|
3,162,917 |
|
|
|
3,216,143 |
|
|
|
3,736,076 |
|
|
|
3,189,384 |
|
|
|
3,642,009 |
|
Investment securities held-to-maturity |
|
2,526,689 |
|
|
|
2,546,585 |
|
|
|
2,367,961 |
|
|
|
2,536,580 |
|
|
|
2,299,134 |
|
Total investment securities |
|
5,689,606 |
|
|
|
5,762,728 |
|
|
|
6,104,037 |
|
|
|
5,725,964 |
|
|
|
5,941,143 |
|
Investment in stock of FHLB |
|
32,032 |
|
|
|
28,868 |
|
|
|
18,012 |
|
|
|
30,459 |
|
|
|
18,470 |
|
Loans and lease finance receivables |
|
8,892,413 |
|
|
|
8,963,323 |
|
|
|
8,634,575 |
|
|
|
8,927,672 |
|
|
|
8,567,876 |
|
Allowance for credit losses |
|
(86,508 |
) |
|
|
(85,151 |
) |
|
|
(76,492 |
) |
|
|
(85,833 |
) |
|
|
(74,796 |
) |
Net loans and lease finance receivables |
|
8,805,905 |
|
|
|
8,878,172 |
|
|
|
8,558,083 |
|
|
|
8,841,839 |
|
|
|
8,493,080 |
|
Premises and equipment, net |
|
45,629 |
|
|
|
46,258 |
|
|
|
51,607 |
|
|
|
45,942 |
|
|
|
52,804 |
|
Bank owned life insurance (BOLI) |
|
257,428 |
|
|
|
256,137 |
|
|
|
259,500 |
|
|
|
256,786 |
|
|
|
259,649 |
|
Intangibles |
|
19,298 |
|
|
|
20,983 |
|
|
|
26,381 |
|
|
|
20,136 |
|
|
|
27,280 |
|
Goodwill |
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
|
|
762,437 |
|
Other assets |
|
308,789 |
|
|
|
331,105 |
|
|
|
240,607 |
|
|
|
319,885 |
|
|
|
223,733 |
|
Total assets |
$ |
16,456,524 |
|
|
$ |
16,313,136 |
|
|
$ |
17,006,948 |
|
|
$ |
16,385,226 |
|
|
$ |
17,194,408 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
7,823,496 |
|
|
$ |
8,092,704 |
|
|
$ |
8,923,043 |
|
|
$ |
7,957,357 |
|
|
$ |
8,822,444 |
|
Interest-bearing |
|
4,481,766 |
|
|
|
4,621,247 |
|
|
|
5,249,262 |
|
|
|
4,551,121 |
|
|
|
5,356,312 |
|
Total deposits |
|
12,305,262 |
|
|
|
12,713,951 |
|
|
|
14,172,305 |
|
|
|
12,508,478 |
|
|
|
14,178,756 |
|
Customer repurchase agreements |
|
495,179 |
|
|
|
550,754 |
|
|
|
581,574 |
|
|
|
522,813 |
|
|
|
630,481 |
|
Other borrowings |
|
1,526,958 |
|
|
|
971,701 |
|
|
|
39 |
|
|
|
1,250,863 |
|
|
|
45 |
|
Payable for securities purchased |
|
- |
|
|
|
79 |
|
|
|
66,693 |
|
|
|
39 |
|
|
|
115,906 |
|
Other liabilities |
|
101,417 |
|
|
|
98,407 |
|
|
|
94,883 |
|
|
|
99,921 |
|
|
|
102,245 |
|
Total liabilities |
|
14,428,816 |
|
|
|
14,334,892 |
|
|
|
14,915,494 |
|
|
|
14,382,114 |
|
|
|
15,027,433 |
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
2,353,975 |
|
|
|
2,332,625 |
|
|
|
2,238,788 |
|
|
|
2,343,358 |
|
|
|
2,243,801 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
(326,267 |
) |
|
|
(354,381 |
) |
|
|
(147,334 |
) |
|
|
(340,246 |
) |
|
|
(76,826 |
) |
Total stockholders’ equity |
|
2,027,708 |
|
|
|
1,978,244 |
|
|
|
2,091,454 |
|
|
|
2,003,112 |
|
|
|
2,166,975 |
|
Total liabilities and stockholders’ equity |
$ |
16,456,524 |
|
|
$ |
16,313,136 |
|
|
$ |
17,006,948 |
|
|
$ |
16,385,226 |
|
|
$ |
17,194,408 |
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
$ |
110,990 |
|
$ |
108,394 |
|
$ |
92,770 |
|
$ |
219,384 |
|
$ |
182,231 |
Investment securities: |
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale |
|
19,356 |
|
|
19,596 |
|
|
17,042 |
|
|
38,952 |
|
|
29,874 |
Investment securities held-to-maturity |
|
13,740 |
|
|
13,956 |
|
|
11,714 |
|
|
27,696 |
|
|
22,377 |
Total investment income |
|
33,096 |
|
|
33,552 |
|
|
28,756 |
|
|
66,648 |
|
|
52,251 |
Dividends from FHLB stock |
|
483 |
|
|
349 |
|
|
273 |
|
|
832 |
|
|
644 |
Interest-earning deposits with other institutions |
|
4,670 |
|
|
491 |
|
|
1,463 |
|
|
5,161 |
|
|
2,236 |
Total interest income |
|
149,239 |
|
|
142,786 |
|
|
123,262 |
|
|
292,025 |
|
|
237,362 |
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
10,765 |
|
|
5,365 |
|
|
1,201 |
|
|
16,130 |
|
|
2,328 |
Borrowings and junior subordinated debentures |
|
18,939 |
|
|
11,693 |
|
|
121 |
|
|
30,632 |
|
|
254 |
Total interest expense |
|
29,704 |
|
|
17,058 |
|
|
1,322 |
|
|
46,762 |
|
|
2,582 |
Net interest income before provision for credit losses |
|
119,535 |
|
|
125,728 |
|
|
121,940 |
|
|
245,263 |
|
|
234,780 |
Provision
for credit losses |
|
500 |
|
|
1,500 |
|
|
3,600 |
|
|
2,000 |
|
|
6,100 |
Net interest income after provision for credit
losses |
|
119,035 |
|
|
124,228 |
|
|
118,340 |
|
|
243,263 |
|
|
228,680 |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
4,838 |
|
|
5,344 |
|
|
5,333 |
|
|
10,182 |
|
|
10,392 |
Trust and investment services |
|
3,315 |
|
|
2,914 |
|
|
2,962 |
|
|
6,229 |
|
|
5,784 |
Other |
|
4,503 |
|
|
4,944 |
|
|
6,375 |
|
|
9,447 |
|
|
9,758 |
Total noninterest income |
|
12,656 |
|
|
13,202 |
|
|
14,670 |
|
|
25,858 |
|
|
25,934 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
33,548 |
|
|
35,247 |
|
|
31,553 |
|
|
68,795 |
|
|
64,209 |
Occupancy and equipment |
|
5,517 |
|
|
5,450 |
|
|
5,567 |
|
|
10,967 |
|
|
11,138 |
Professional services |
|
2,562 |
|
|
1,696 |
|
|
2,305 |
|
|
4,258 |
|
|
4,350 |
Computer software expense |
|
3,316 |
|
|
3,408 |
|
|
3,103 |
|
|
6,724 |
|
|
6,898 |
Marketing and promotion |
|
1,321 |
|
|
1,715 |
|
|
1,638 |
|
|
3,036 |
|
|
3,096 |
Amortization of intangible assets |
|
1,719 |
|
|
1,720 |
|
|
1,998 |
|
|
3,439 |
|
|
3,996 |
Provision for unfunded loan commitments |
|
400 |
|
|
500 |
|
|
- |
|
|
900 |
|
|
- |
Acquisition related expenses |
|
- |
|
|
- |
|
|
375 |
|
|
- |
|
|
6,013 |
Other |
|
5,634 |
|
|
5,145 |
|
|
4,332 |
|
|
10,779 |
|
|
9,409 |
Total noninterest expense |
|
54,017 |
|
|
54,881 |
|
|
50,871 |
|
|
108,898 |
|
|
109,109 |
Earnings
before income taxes |
|
77,674 |
|
|
82,549 |
|
|
82,139 |
|
|
160,223 |
|
|
145,505 |
Income
taxes |
|
21,904 |
|
|
23,279 |
|
|
23,081 |
|
|
45,183 |
|
|
40,887 |
Net earnings |
$ |
55,770 |
|
$ |
59,270 |
|
$ |
59,058 |
|
$ |
115,040 |
|
$ |
104,618 |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
$ |
0.40 |
|
$ |
0.42 |
|
$ |
0.42 |
|
$ |
0.83 |
|
$ |
0.74 |
Diluted
earnings per common share |
$ |
0.40 |
|
$ |
0.42 |
|
$ |
0.42 |
|
$ |
0.82 |
|
$ |
0.74 |
Cash
dividends declared per common share |
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.19 |
|
$ |
0.40 |
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
Interest income - tax equivalent (TE) |
$ |
149,785 |
|
|
$ |
143,332 |
|
|
$ |
123,661 |
|
|
$ |
293,117 |
|
|
$ |
238,124 |
|
Interest
expense |
|
29,704 |
|
|
|
17,058 |
|
|
|
1,322 |
|
|
|
46,762 |
|
|
|
2,582 |
|
Net interest
income - (TE) |
$ |
120,081 |
|
|
$ |
126,274 |
|
|
$ |
122,339 |
|
|
$ |
246,355 |
|
|
$ |
235,542 |
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets, annualized |
|
1.36 |
% |
|
|
1.47 |
% |
|
|
1.39 |
% |
|
|
1.42 |
% |
|
|
1.23 |
% |
Return on
average equity, annualized |
|
11.03 |
% |
|
|
12.15 |
% |
|
|
11.33 |
% |
|
|
11.58 |
% |
|
|
9.74 |
% |
Efficiency
ratio [1] |
|
40.86 |
% |
|
|
39.50 |
% |
|
|
37.24 |
% |
|
|
40.17 |
% |
|
|
41.85 |
% |
Noninterest
expense to average assets, annualized |
|
1.32 |
% |
|
|
1.36 |
% |
|
|
1.20 |
% |
|
|
1.34 |
% |
|
|
1.28 |
% |
Yield on
average loans |
|
5.01 |
% |
|
|
4.90 |
% |
|
|
4.31 |
% |
|
|
4.95 |
% |
|
|
4.29 |
% |
Yield on
average earning assets (TE) |
|
4.01 |
% |
|
|
3.91 |
% |
|
|
3.20 |
% |
|
|
3.96 |
% |
|
|
3.06 |
% |
Cost of
deposits |
|
0.35 |
% |
|
|
0.17 |
% |
|
|
0.03 |
% |
|
|
0.26 |
% |
|
|
0.03 |
% |
Cost of
deposits and customer repurchase agreements |
|
0.35 |
% |
|
|
0.17 |
% |
|
|
0.04 |
% |
|
|
0.26 |
% |
|
|
0.04 |
% |
Cost of
funds |
|
0.83 |
% |
|
|
0.49 |
% |
|
|
0.04 |
% |
|
|
0.66 |
% |
|
|
0.04 |
% |
Net interest
margin (TE) |
|
3.22 |
% |
|
|
3.45 |
% |
|
|
3.16 |
% |
|
|
3.33 |
% |
|
|
3.03 |
% |
[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 |
|
7.75 |
% |
|
|
7.77 |
% |
|
|
7.46 |
% |
|
|
|
|
Citizens Business Bank |
|
7.67 |
% |
|
|
7.69 |
% |
|
|
7.17 |
% |
|
|
|
|
[2] (Capital - [GW+Intangibles])/(Total Assets -
[GW+Intangibles]) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
138,330,131 |
|
|
|
138,592,371 |
|
|
|
139,748,311 |
|
|
|
138,420,067 |
|
|
|
140,467,038 |
|
Diluted |
|
138,383,239 |
|
|
|
138,953,172 |
|
|
|
140,053,074 |
|
|
|
138,556,510 |
|
|
|
140,730,309 |
|
Dividends
declared |
$ |
27,787 |
|
|
$ |
28,007 |
|
|
$ |
26,719 |
|
|
$ |
55,794 |
|
|
$ |
52,186 |
|
Dividend
payout ratio [3] |
|
49.82 |
% |
|
|
47.25 |
% |
|
|
45.24 |
% |
|
|
48.50 |
% |
|
|
49.88 |
% |
[3] Dividends declared on common stock divided by net
earnings. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares outstanding - (end of period) |
|
139,343,284 |
|
|
|
139,302,451 |
|
|
|
140,025,579 |
|
|
|
|
|
Book value
per share |
$ |
14.36 |
|
|
$ |
14.28 |
|
|
$ |
14.16 |
|
|
|
|
|
Tangible
book value per share |
$ |
8.74 |
|
|
$ |
8.64 |
|
|
$ |
8.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,2023 |
|
December 31,2022 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
Nonaccrual
loans |
$ |
6,454 |
|
|
$ |
4,930 |
|
|
$ |
12,964 |
|
|
|
|
|
Total
nonperforming assets |
$ |
6,454 |
|
|
$ |
4,930 |
|
|
$ |
12,964 |
|
|
|
|
|
Modified
loans/performing troubled debt restructured loans (TDR) [4] |
$ |
3,307 |
|
|
$ |
7,817 |
|
|
$ |
5,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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 |
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.15 |
% |
|
|
|
|
Percentage
of nonperforming assets to total assets |
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.08 |
% |
|
|
|
|
Allowance
for credit losses to nonperforming assets |
|
1347.49 |
% |
|
|
1726.51 |
% |
|
|
618.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
Allowance
for credit losses: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
86,540 |
|
|
$ |
85,117 |
|
|
$ |
76,119 |
|
|
$ |
85,117 |
|
|
$ |
65,019 |
|
Suncrest FV PCD loans |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,605 |
|
Total charge-offs |
|
(88 |
) |
|
|
(110 |
) |
|
|
(8 |
) |
|
|
(198 |
) |
|
|
(24 |
) |
Total recoveries on loans previously charged-off |
|
15 |
|
|
|
33 |
|
|
|
511 |
|
|
|
48 |
|
|
|
522 |
|
Net
recoveries (charge-offs) |
|
(73 |
) |
|
|
(77 |
) |
|
|
503 |
|
|
|
(150 |
) |
|
|
498 |
|
Provision
for (recapture of) credit losses |
|
500 |
|
|
|
1,500 |
|
|
|
3,600 |
|
|
|
2,000 |
|
|
|
6,100 |
|
Allowance
for credit losses at end of period |
$ |
86,967 |
|
|
$ |
86,540 |
|
|
$ |
80,222 |
|
|
$ |
86,967 |
|
|
$ |
80,222 |
|
|
|
|
|
|
|
|
|
|
|
Net
recoveries (charge-offs) to average loans |
|
-0.001 |
% |
|
|
-0.001 |
% |
|
|
0.006 |
% |
|
|
-0.002 |
% |
|
|
0.006 |
% |
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
Credit Losses by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 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 |
$ |
67.9 |
|
0.98% |
|
$ |
64.8 |
|
0.94% |
|
$ |
61.5 |
|
0.93% |
Construction |
|
1.2 |
|
1.69% |
|
|
1.7 |
|
1.93% |
|
|
1.1 |
|
1.75% |
SBA |
|
2.7 |
|
0.95% |
|
|
2.8 |
|
0.97% |
|
|
2.6 |
|
0.88% |
Commercial
and industrial |
|
9.1 |
|
0.95% |
|
|
10.2 |
|
1.08% |
|
|
7.2 |
|
0.76% |
Dairy &
livestock and agribusiness |
|
5.0 |
|
1.66% |
|
|
4.4 |
|
1.01% |
|
|
6.8 |
|
2.50% |
Municipal
lease finance receivables |
|
0.3 |
|
0.35% |
|
|
0.3 |
|
0.36% |
|
|
0.2 |
|
0.28% |
SFR
mortgage |
|
0.4 |
|
0.17% |
|
|
0.4 |
|
0.14% |
|
|
0.2 |
|
0.10% |
Consumer and
other loans |
|
0.4 |
|
0.73% |
|
|
0.5 |
|
0.69% |
|
|
0.6 |
|
0.68% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
87.0 |
|
0.98% |
|
$ |
85.1 |
|
0.94% |
|
$ |
80.2 |
|
0.92% |
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
$ |
- |
|
$ |
- |
|
|
$ |
28.14 |
|
|
$ |
22.63 |
|
|
$ |
20.86 |
|
|
$ |
18.72 |
|
December
31, |
|
$ |
- |
|
$ |
- |
|
|
$ |
29.25 |
|
|
$ |
25.26 |
|
|
$ |
21.85 |
|
|
$ |
19.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
|
|
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
|
|
$ |
110,990 |
|
|
$ |
108,394 |
|
|
$ |
106,884 |
|
|
$ |
100,077 |
|
|
$ |
92,770 |
|
Investment securities and other |
|
|
|
|
38,249 |
|
|
|
34,392 |
|
|
|
35,234 |
|
|
|
35,111 |
|
|
|
30,492 |
|
Total interest income |
|
|
|
|
149,239 |
|
|
|
142,786 |
|
|
|
142,118 |
|
|
|
135,188 |
|
|
|
123,262 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
10,765 |
|
|
|
5,365 |
|
|
|
2,774 |
|
|
|
1,728 |
|
|
|
1,201 |
|
Other borrowings |
|
|
|
|
18,939 |
|
|
|
11,693 |
|
|
|
1,949 |
|
|
|
122 |
|
|
|
121 |
|
Total interest expense |
|
|
|
|
29,704 |
|
|
|
17,058 |
|
|
|
4,723 |
|
|
|
1,850 |
|
|
|
1,322 |
|
Net interest income before provision for |
|
|
|
|
|
|
|
|
|
|
credit losses |
|
|
|
|
119,535 |
|
|
|
125,728 |
|
|
|
137,395 |
|
|
|
133,338 |
|
|
|
121,940 |
|
Provision
for credit losses |
|
|
|
|
500 |
|
|
|
1,500 |
|
|
|
2,500 |
|
|
|
2,000 |
|
|
|
3,600 |
|
Net interest income after provision for |
|
|
|
|
|
|
|
|
|
|
credit losses |
|
|
|
|
119,035 |
|
|
|
124,228 |
|
|
|
134,895 |
|
|
|
131,338 |
|
|
|
118,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
12,656 |
|
|
|
13,202 |
|
|
|
12,465 |
|
|
|
11,590 |
|
|
|
14,670 |
|
Noninterest
expense |
|
|
|
|
54,017 |
|
|
|
54,881 |
|
|
|
54,419 |
|
|
|
53,027 |
|
|
|
50,871 |
|
Earnings
before income taxes |
|
|
|
|
77,674 |
|
|
|
82,549 |
|
|
|
92,941 |
|
|
|
89,901 |
|
|
|
82,139 |
|
Income
taxes |
|
|
|
|
21,904 |
|
|
|
23,279 |
|
|
|
26,773 |
|
|
|
25,262 |
|
|
|
23,081 |
|
Net earnings |
|
|
|
$ |
55,770 |
|
|
$ |
59,270 |
|
|
$ |
66,168 |
|
|
$ |
64,639 |
|
|
$ |
59,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective
tax rate |
|
|
|
|
28.20 |
% |
|
|
28.20 |
% |
|
|
28.81 |
% |
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
Diluted earnings per common share |
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared |
|
|
|
$ |
27,787 |
|
|
$ |
28,007 |
|
|
$ |
27,995 |
|
|
$ |
27,965 |
|
|
$ |
26,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
by Type |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
June
30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate |
$ |
6,904,095 |
|
|
$ |
6,950,302 |
|
|
$ |
6,884,948 |
|
|
$ |
6,685,245 |
|
|
$ |
6,643,628 |
|
Construction |
|
68,836 |
|
|
|
83,992 |
|
|
|
88,271 |
|
|
|
76,495 |
|
|
|
60,584 |
|
SBA |
|
278,904 |
|
|
|
283,464 |
|
|
|
290,908 |
|
|
|
296,664 |
|
|
|
297,109 |
|
SBA -
PPP |
|
5,017 |
|
|
|
5,824 |
|
|
|
9,087 |
|
|
|
17,348 |
|
|
|
66,955 |
|
Commercial
and industrial |
|
956,242 |
|
|
|
898,167 |
|
|
|
948,683 |
|
|
|
952,231 |
|
|
|
941,595 |
|
Dairy &
livestock and agribusiness |
|
298,247 |
|
|
|
307,820 |
|
|
|
433,564 |
|
|
|
323,105 |
|
|
|
273,594 |
|
Municipal
lease finance receivables |
|
77,867 |
|
|
|
79,552 |
|
|
|
81,126 |
|
|
|
76,656 |
|
|
|
64,437 |
|
SFR
mortgage |
|
263,201 |
|
|
|
262,324 |
|
|
|
266,024 |
|
|
|
263,646 |
|
|
|
260,218 |
|
Consumer and
other loans |
|
54,988 |
|
|
|
71,044 |
|
|
|
76,781 |
|
|
|
82,746 |
|
|
|
84,109 |
|
Gross loans, at amortized cost |
|
8,907,397 |
|
|
|
8,942,489 |
|
|
|
9,079,392 |
|
|
|
8,774,136 |
|
|
|
8,692,229 |
|
Allowance for credit losses |
|
(86,967 |
) |
|
|
(86,540 |
) |
|
|
(85,117 |
) |
|
|
(82,601 |
) |
|
|
(80,222 |
) |
Net loans |
$ |
8,820,430 |
|
|
$ |
8,855,949 |
|
|
$ |
8,994,275 |
|
|
$ |
8,691,535 |
|
|
$ |
8,612,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Composition by Type and Customer Repurchase
Agreements |
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
June
30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
7,878,810 |
|
|
$ |
7,844,329 |
|
|
$ |
8,164,364 |
|
|
$ |
8,764,556 |
|
|
$ |
8,881,223 |
|
Investment
checking |
|
574,817 |
|
|
|
668,947 |
|
|
|
723,870 |
|
|
|
751,618 |
|
|
|
695,054 |
|
Savings and
money market |
|
3,627,858 |
|
|
|
3,474,651 |
|
|
|
3,653,385 |
|
|
|
3,991,531 |
|
|
|
4,145,634 |
|
Time
deposits |
|
316,036 |
|
|
|
283,943 |
|
|
|
294,626 |
|
|
|
364,694 |
|
|
|
350,308 |
|
Total deposits |
|
12,397,521 |
|
|
|
12,271,870 |
|
|
|
12,836,245 |
|
|
|
13,872,399 |
|
|
|
14,072,219 |
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
452,373 |
|
|
|
490,235 |
|
|
|
565,431 |
|
|
|
467,844 |
|
|
|
502,829 |
|
Total deposits and customer repurchase agreements |
$ |
12,849,894 |
|
|
$ |
12,762,105 |
|
|
$ |
13,401,676 |
|
|
$ |
14,340,243 |
|
|
$ |
14,575,048 |
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets and Delinquency Trends |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
June
30, |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
3,159 |
|
|
$ |
2,634 |
|
|
$ |
2,657 |
|
|
$ |
6,705 |
|
|
$ |
6,843 |
|
Construction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
629 |
|
|
|
702 |
|
|
|
443 |
|
|
|
1,065 |
|
|
|
1,075 |
|
SBA - PPP |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
2,039 |
|
|
|
2,049 |
|
|
|
1,320 |
|
|
|
1,308 |
|
|
|
1,655 |
|
Dairy & livestock and agribusiness |
|
273 |
|
|
|
406 |
|
|
|
477 |
|
|
|
1,007 |
|
|
|
3,354 |
|
SFR mortgage |
|
354 |
|
|
|
384 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
- |
|
|
|
- |
|
|
|
33 |
|
|
|
32 |
|
|
|
37 |
|
Total |
$ |
6,454 |
|
|
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
12,964 |
|
% of Total loans |
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
Past
due 30-89 days: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
532 |
|
|
$ |
425 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
559 |
|
Construction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
- |
|
|
|
575 |
|
|
|
556 |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
555 |
|
|
|
183 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
388 |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
- |
|
|
|
- |
|
|
|
175 |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
1,087 |
|
|
$ |
1,183 |
|
|
$ |
1,119 |
|
|
$ |
- |
|
|
$ |
559 |
|
% of Total loans |
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
OREO: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SBA |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Total nonperforming, past due, and OREO |
$ |
7,541 |
|
|
$ |
7,358 |
|
|
$ |
6,049 |
|
|
$ |
10,117 |
|
|
$ |
13,523 |
|
% of Total loans |
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.12 |
% |
|
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB Financial Corp. Consolidated |
Capital Ratios |
|
Minimum Required Plus Capital Conservation
Buffer |
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0% |
|
9.8% |
|
9.5% |
|
8.8% |
Common
equity Tier 1 capital ratio |
|
7.0% |
|
14.1% |
|
13.6% |
|
13.4% |
Tier 1
risk-based capital ratio |
|
8.5% |
|
14.1% |
|
13.6% |
|
13.4% |
Total
risk-based capital ratio |
|
10.5% |
|
14.9% |
|
14.4% |
|
14.2% |
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
7.8% |
|
7.4% |
|
7.5% |
|
|
|
|
|
|
|
|
|
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 June 30, 2023, December 31,
2022 and June 30, 2022. |
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
June
30, |
|
|
|
2023 |
|
2022 |
|
2022 |
|
|
|
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
$ |
2,001,367 |
|
|
$ |
1,948,517 |
|
|
$ |
1,982,211 |
|
|
Less: Goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
Less: Intangible assets |
|
|
(18,303 |
) |
|
|
(21,742 |
) |
|
|
(25,312 |
) |
|
Tangible book value |
|
$ |
1,217,242 |
|
|
$ |
1,160,953 |
|
|
$ |
1,191,077 |
|
|
Common
shares issued and outstanding |
|
|
139,343,284 |
|
|
|
139,818,703 |
|
|
|
140,025,579 |
|
|
Tangible book value per share |
|
$ |
8.74 |
|
|
$ |
8.30 |
|
|
$ |
8.51 |
|
|
|
|
|
|
|
|
|
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 |
|
Six Months Ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
55,770 |
|
|
$ |
59,270 |
|
|
$ |
59,058 |
|
|
$ |
115,040 |
|
|
$ |
104,618 |
|
|
Add: Amortization of intangible assets |
|
|
1,719 |
|
|
|
1,720 |
|
|
|
1,998 |
|
|
|
3,439 |
|
|
|
3,996 |
|
|
Less: Tax effect of amortization of intangible assets [1] |
|
|
(508 |
) |
|
|
(508 |
) |
|
|
(591 |
) |
|
|
(1,017 |
) |
|
|
(1,181 |
) |
|
Tangible net income |
|
$ |
56,981 |
|
|
$ |
60,482 |
|
|
$ |
60,465 |
|
|
$ |
117,462 |
|
|
$ |
107,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
stockholders’ equity |
|
$ |
2,027,708 |
|
|
$ |
1,978,244 |
|
|
$ |
2,091,454 |
|
|
$ |
2,003,112 |
|
|
$ |
2,166,975 |
|
|
Less: Average goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(762,437 |
) |
|
Less: Average intangible assets |
|
|
(19,298 |
) |
|
|
(20,983 |
) |
|
|
(26,381 |
) |
|
|
(20,136 |
) |
|
|
(27,280 |
) |
|
Average tangible common equity |
|
$ |
1,242,588 |
|
|
$ |
1,191,439 |
|
|
$ |
1,299,251 |
|
|
$ |
1,217,154 |
|
|
$ |
1,377,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average equity, annualized |
|
|
11.03 |
% |
|
|
12.15 |
% |
|
|
11.33 |
% |
|
|
11.58 |
% |
|
|
9.74 |
% |
|
Return on
average tangible common equity, annualized |
|
|
18.39 |
% |
|
|
20.59 |
% |
|
|
18.67 |
% |
|
|
19.46 |
% |
|
|
15.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Tax effected at respective statutory rates. |
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