CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (the “Company”), announced earnings for the quarter
ended September 30, 2023.
CVB Financial Corp. reported net income of $57.9 million for the
quarter ended September 30, 2023, compared with $55.8 million for
the second quarter of 2023 and $64.6 million for the third quarter
of 2022. Diluted earnings per share were $0.42 for the third
quarter, compared to $0.40 for the prior quarter and $0.46 for the
same period last year. Net income of $57.9 million for the third
quarter of 2023 produced an annualized return on average equity
(“ROAE”) of 11.33%, an annualized return on average tangible common
equity (“ROATCE”) of 18.82%, and an annualized return on average
assets (“ROAA”) of 1.40%.
David Brager, President and Chief Executive Officer of Citizens
Business Bank, commented, “We reported $57.9 million of net income
in the third quarter of 2023. Our focus on banking the best
privately held small to medium sized businesses and building
meaningful long-term relationships has continued to produce solid
results. I would like to thank our customers and associates for
their loyalty and support”.
Highlights for the Third Quarter of 2023
- 5.7% growth in Pretax Pre-Provision
income compared to prior quarter
- Net interest margin of 3.31%
expanded by 9 basis points compared to prior quarter
- 0.52% cost of deposits for the third
quarter, reflects a cumulative through the cycle beta of
<10%
- Cost effective operations reflected
in efficiency ratio < 40%
- Positive operating leverage
reflected by 4.2% revenue growth vs. 1.9% expense growth
- Allowance for Credit Losses as a %
of loans increased to 1.00% after $2 million credit provision
- Net loans declined by $30 million on
average compared to prior quarter
- Total deposits increased by $278
million on average compared to prior quarter
- Noninterest-bearing deposits were
61.4% of total deposits
- TCE Ratio = 7.7% & CET1 =
14.4%
INCOME STATEMENT HIGHLIGHTS
|
Three Months Ended |
|
Nine Months Ended |
|
|
September
30, |
|
June
30, |
|
September
30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Dollars in
thousands, except per share amounts) |
|
Net interest
income |
$ |
123,371 |
|
|
$ |
119,535 |
|
|
$ |
133,338 |
|
|
$ |
368,634 |
|
|
$ |
368,118 |
|
|
Provision
for credit losses |
|
(2,000 |
) |
|
|
(500 |
) |
|
|
(2,000 |
) |
|
|
(4,000 |
) |
|
|
(8,100 |
) |
|
Noninterest
income |
|
14,309 |
|
|
|
12,656 |
|
|
|
11,590 |
|
|
|
40,167 |
|
|
|
37,524 |
|
|
Noninterest
expense |
|
(55,058 |
) |
|
|
(54,017 |
) |
|
|
(53,027 |
) |
|
|
(163,956 |
) |
|
|
(162,136 |
) |
|
Income
taxes |
|
(22,735 |
) |
|
|
(21,904 |
) |
|
|
(25,262 |
) |
|
|
(67,918 |
) |
|
|
(66,149 |
) |
|
Net earnings |
$ |
57,887 |
|
|
$ |
55,770 |
|
|
$ |
64,639 |
|
|
$ |
172,927 |
|
|
$ |
169,257 |
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.46 |
|
|
$ |
1.24 |
|
|
$ |
1.20 |
|
|
Diluted |
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.46 |
|
|
$ |
1.24 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NIM |
|
3.31 |
% |
|
|
3.22 |
% |
|
|
3.46 |
% |
|
|
3.32 |
% |
|
|
3.17 |
% |
|
ROAA |
|
1.40 |
% |
|
|
1.36 |
% |
|
|
1.52 |
% |
|
|
1.41 |
% |
|
|
1.32 |
% |
|
ROAE |
|
11.33 |
% |
|
|
11.03 |
% |
|
|
12.72 |
% |
|
|
11.50 |
% |
|
|
10.69 |
% |
|
ROATCE |
|
18.82 |
% |
|
|
18.39 |
% |
|
|
21.34 |
% |
|
|
19.24 |
% |
|
|
17.48 |
% |
|
Efficiency
ratio |
|
39.99 |
% |
|
|
40.86 |
% |
|
|
36.59 |
% |
|
|
40.11 |
% |
|
|
39.97 |
% |
|
Noninterest
expense to average assets, annualized |
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.25 |
% |
|
|
1.34 |
% |
|
|
1.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest IncomeNet interest income was
$123.4 million for the third quarter of 2023. This represented a
$3.8 million, or 3.21%, increase from the second quarter of 2023,
and a $10.0 million, or 7.47%, decrease from the third quarter of
2022. The $3.8 million quarter-over-quarter increase in net
interest income was primarily due to a nine basis point increase in
net interest margin. The decline in net interest income compared to
the third quarter of 2022 was due to a $484.2 million decrease in
average earning assets and a 15 basis point decrease in net
interest margin.
Net Interest MarginOur tax equivalent net
interest margin was 3.31% for the third quarter of 2023, compared
to 3.22% for the second quarter of 2023 and 3.46% for the third
quarter of 2022. The nine basis point increase in our net interest
margin compared to the second quarter of 2023, was the result of a
17 basis point increase in average earning asset yield, partially
offset by a nine basis point increase in our cost of funds. The 17
basis point increase in our interest-earning asset yield over the
prior quarter was primarily the result of the positive carry on $1
billion in pay fixed rate swaps that were executed in June of 2023
and an increase in loan yields of six basis points. Cost of funds
increased in the third quarter, as cost of deposits and customer
repurchases increased by 17 basis points to 0.52%. The increased
cost of deposits was partially offset by a $208.9 million decrease
in average borrowings, with an average cost of 4.84%, during the
third quarter. The decrease in net interest margin of 15 basis
points, compared to the third quarter of 2022, was primarily the
result of an 87 basis point increase in cost of funds. Total cost
of funds of 0.92% for the third quarter of 2023 increased from
0.05% for the year ago quarter. This 87 basis point increase in
cost of funds was the result of a 1.24% increase in the cost of
interest-bearing deposits and an increase in average short-term
borrowings of $1.32 billion which had an average cost of 4.84% for
the third quarter of 2023. A 67 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 4.56% for the
third quarter of 2022 to 5.07% for the third quarter of 2023.
Additionally, the yield on investment securities increased by 52
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 DepositsOn average, earning
assets declined by $67.7 million, compared to the second quarter of
2023, and declined by $484.2 million when compared to the third
quarter of 2022. The $67.7 million quarter-over-quarter decrease in
earning assets resulted from a $147.0 million decline in average
investment securities and a $30 million decrease in average loans,
offset by average earning balances due from the Federal Reserve
increasing by $120.7 million. Compared to the third quarter of
2022, average loans increased by $163.2 million, while the average
balance of investment securities declined by $491.1 million, and
the average amount of funds held at the Federal Reserve declined by
$157.8 million. Noninterest-bearing deposits declined on average by
$10.4 million, or 0.13%, from the second quarter of 2023, while
interest-bearing deposits and customer repurchase agreements
increased on average by $133.8 million. Compared to the third
quarter of 2022, total deposits and customer repurchase agreements
declined on average by $1.81 billion, or 12.27%, including a
decline of $1.2 billion in noninterest-bearing deposits. On
average, noninterest-bearing deposits were 62.09% of total deposits
during the most recent quarter, compared to 63.58% for the second
quarter of 2023 and 63.38% for the third quarter of 2022.
|
|
Three Months Ended |
SELECTED FINANCIAL HIGHLIGHTS |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
|
(Dollars in
thousands) |
Yield on average investment securities (TE) |
|
2.64 |
% |
|
|
2.37 |
% |
|
|
2.12 |
% |
Yield on average loans |
|
5.07 |
% |
|
|
5.01 |
% |
|
|
4.56 |
% |
Core Loan Yield [1] |
|
5.02 |
% |
|
|
4.96 |
% |
|
|
4.42 |
% |
Yield on average earning assets (TE) |
|
4.18 |
% |
|
|
4.01 |
% |
|
|
3.51 |
% |
Cost of deposits |
|
0.52 |
% |
|
|
0.35 |
% |
|
|
0.05 |
% |
Cost of funds |
|
0.92 |
% |
|
|
0.83 |
% |
|
|
0.05 |
% |
Net interest margin (TE) |
|
3.31 |
% |
|
|
3.22 |
% |
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
% of Total |
|
Avg |
|
% of Total |
|
Total investment securities |
$ |
5,542,590 |
|
37.20 |
% |
|
$ |
5,689,606 |
38.01 |
% |
|
$ |
6,033,696 |
|
39.22 |
% |
|
Interest-earning deposits with other institutions |
|
473,391 |
|
3.18 |
% |
|
|
353,610 |
2.36 |
% |
|
|
633,152 |
|
4.12 |
% |
|
Loans |
|
8,862,462 |
|
59.48 |
% |
|
|
8,892,413 |
59.41 |
% |
|
|
8,699,303 |
|
56.55 |
% |
|
Total
interest-earning assets |
|
14,900,003 |
|
|
|
|
14,967,661 |
|
|
|
15,384,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1]
Represents yield on average loans excluding the impact of discount
accretion and PPP loans. |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit Losses The third quarter
of 2023 included $2.0 million in provision for credit losses,
compared to $500,000 in provision for credit losses in the second
quarter of 2023 and $2.0 million in the third quarter of 2022. The
year-to-date provision for credit losses of $4.0 million was the
result of an overall increase in projected loss rates from 0.94% at
the end of 2022 to 1.0% at September 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 $14.3
million for the third quarter of 2023, compared with $12.7 million
for the second quarter of 2023 and $11.6 million for the third
quarter of 2022. Service charges on deposits increased by $224,000,
or 4.63% over the second quarter of 2023 and declined by $171,000,
or 3.27% in comparison to the third quarter of 2022. Trust and
investment services income decreased by $69,000 compared to the
second quarter of 2023 and increased by $379,000 year-over-year.
The third quarter of 2023 included approximately $2.6 million in
gain from an equity fund distribution related to a CRA investment,
partially offset by a $222,000 decrease in CRA investment income
due to underlying asset valuation declines. 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. Compared to the third quarter of 2022, BOLI income decreased
$439,000. The third quarter of 2022 included $1.8 million in death
benefits that exceeded the asset value of certain policy values,
which was offset by a $1.0 million decline in the market value of
separate account life insurance policies that are used to fund our
deferred compensation liabilities.
Noninterest ExpenseNoninterest expense for the
third quarter of 2023 was $55.0 million, compared to $54.0 million
for the second quarter of 2023 and $53.0 million for the third
quarter of 2022. The third quarter of 2023 included $900,000 in
recapture of provision for unfunded loan commitments, compared to
$400,000 in provision for the second quarter of 2023 and no
provision for the third quarter of 2022. The $1.2 million
quarter-over-quarter increase in salaries and employee benefit
costs was primarily due to annual salary increases that were
effective in July. Salary expense grew by $800,000, while the
contra expense associated with deferred loan originations declined
due to lower loan origination volume resulting in an increase in
staff expense of approximately $300,000. The $2.0 million increase
in noninterest expense year-over-year included an increase of $1.5
million in salaries and employee benefits and an increase in
regulatory assessments of approximately $800,000. The increase in
salary and benefit expense includes a 3.5%, or approximately
$840,000 increase in salary expense, combined with an $800,000
decline in the contra expense for deferred origination costs. As a
percentage of average assets, noninterest expense was 1.33% for the
third quarter of 2023, compared to 1.32% for the second quarter of
2023 and 1.25% for the third quarter of 2022. The efficiency ratio
for the third quarter of 2023 was 39.99%, compared to 40.86% for
the second quarter of 2023 and 36.59% for the third quarter of
2022.
Income TaxesOur effective tax rate for the
quarter ended September 30, 2023 and year-to-date was 28.20%,
compared with 28.10% for the same periods 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
$15.90 billion at September 30, 2023. This represented a decrease
of $581.5 million, or 3.53%, from total assets of $16.48 billion at
June 30, 2023. The decrease in assets was primarily due a $322.8
million decrease in interest-earning balances due from the Federal
Reserve, a $218.3 million decrease in investment securities and a
$31.8 million decrease in net loans.
Total assets decreased by $573.5 million, or 3.48%, from total
assets of $16.48 billion at December 31, 2022. The decrease in
assets was primarily due to a $446.9 million decrease in investment
securities and a $205.6 million decrease in net loans.
Total assets at September 30, 2023 decreased by $446.3 million,
or 2.73%, from total assets of $16.35 billion at September 30,
2022. The decrease in assets included a $517.1 million decrease in
investment securities and a $67.7 million decrease in
interest-earning balances due from the Federal Reserve, partially
offset by a $97.1 million increase in net loans.
Investment SecuritiesTotal investment
securities were $5.36 billion at September 30, 2023, a decrease of
$446.9 million, or 7.69%, from $5.81 billion at December 31, 2022
and a decrease of $517.1 million, or 8.80%, from $5.88 billion at
September 30, 2022.
At September 30, 2023, investment securities held-to-maturity
(“HTM”) totaled $2.49 billion, a decrease of $64.9 million, or
2.54%, from December 31, 2022 and a $68.5 million decrease, or
2.68%, from September 30, 2022.
At September 30, 2023, investment securities available-for-sale
(“AFS”) totaled $2.87 billion, inclusive of a pre-tax net
unrealized loss of $628.4 million. AFS securities decreased by
$382.0 million, or 11.74%, from $3.26 billion at December 31, 2022
and decreased by $448.7 million, or 13.51%, from September 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. During the third
quarter of 2023, the positive spread between daily SOFR and the
fixed rates on these derivatives resulted in interest income of
approximately $3.8 million. The fair value of these instruments
totaled approximately $25 million at September 30, 2023.
Combined, the AFS and HTM investments in mortgage-backed
securities (“MBS”) and collateralized mortgage obligations (“CMO”)
totaled $4.30 billion or approximately 80% of our total investment
securities at September 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 September 30, 2023, we held $568.9
million of Government Agency securities that represent
approximately 10.6% of the total investment securities.
Our combined AFS and HTM municipal securities totaled $493.0
million as of September 30, 2023, or approximately 9.2% 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
15.93%, Minnesota at 11.13%, California at 9.59%, Ohio at 6.32%,
Massachusetts at 6.07%, and Washington at 5.82%.
LoansTotal loans and leases, at amortized cost
of $8.88 billion at September 30, 2023, decreased by $29.8 million,
or 0.33%, from June 30, 2023. The quarter-over quarter decrease in
core loans included decreases of $61.0 million in commercial real
estate loans, $18.2 million in commercial and industrial loans,
$5.8 million in construction loans, and $3.1 million in consumer
and other loans, partially offset by an increase of $53.2 million
in dairy & livestock and agribusiness loans and $4.2 million in
SBA loans.
Total loans and leases, at amortized cost, decreased by $201.8
million, or 2.22%, from December 31, 2022. After adjusting for
seasonality of dairy & livestock loans, our core loans declined
by $114.8 million, or 1.32%, from December 31, 2022. The $201.8
million decrease in total loans included decreases of $87.0 million
in dairy & livestock loans, $41.9 million in commercial real
estate loans, $25.2 million in construction loans, $10.6 million in
commercial and industrial loans, $7.8 million in SBA loans, $5.9
million in PPP loans, and $24.9 million in consumer and other
loans. Commercial and industrial line utilization was 27% at
September 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 73% at September 30, 2023.
Total loans and leases, at amortized cost, increased by $103.5
million, or 1.18%, from September 30, 2022. After adjusting for PPP
loans, which declined by $14.1 million, our core loans grew by
$117.6 million, or 1.34%, from the end of the third quarter of
2022. Commercial real estate loans grew by $157.8 million, dairy
& livestock and agribusiness loans grew by $28.4 million, and
SFR mortgage loans increased by $4.5 million. This core loan growth
was partially offset by decreases of $14.2 million in commercial
and industrial loans, $13.5 million in construction loans, $13.5
million in SBA loans and $30.9 million in consumer and other
loans.
Asset QualityDuring the third quarter of 2023,
we experienced credit charge-offs of $26,000 and total recoveries
of $54,000, resulting in net recoveries of $28,000. The allowance
for credit losses (“ACL”) totaled $89.0 million at September 30,
2023, compared to $87.0 million at June 30, 2023 and $82.6 million
at September 30, 2022. The ACL increased by $3.9 million in 2023,
including a $4.0 million provision for credit losses. At September
30, 2023, ACL as a percentage of total loans and leases outstanding
was 1.00%. This compares to 0.98% and 0.94% at June 30, 2023 and
September 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 |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
Nonperforming loans |
|
(Dollars in
thousands) |
Commercial real estate |
|
$ |
3,655 |
|
|
$ |
3,159 |
|
|
$ |
6,705 |
|
SBA |
|
|
1,050 |
|
|
|
629 |
|
|
|
1,065 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
4,672 |
|
|
|
2,039 |
|
|
|
1,308 |
|
Dairy & livestock and agribusiness |
|
|
243 |
|
|
|
273 |
|
|
|
1,007 |
|
SFR mortgage |
|
|
339 |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
|
4 |
|
|
|
354 |
|
|
|
32 |
|
Total |
|
$ |
9,963 |
|
[1] |
$ |
6,454 |
|
|
$ |
10,117 |
|
% of Total loans |
|
|
0.11 |
% |
|
|
0.07 |
% |
|
|
0.12 |
% |
OREO |
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
9,963 |
|
|
$ |
6,454 |
|
|
$ |
10,117 |
|
% of
Nonperforming assets to total assets |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
Past
due 30-89 days (accruing) |
|
|
|
|
|
|
Commercial real estate |
|
$ |
136 |
|
|
$ |
532 |
|
|
$ |
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
|
- |
|
|
|
555 |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
136 |
|
|
$ |
1,087 |
|
|
$ |
- |
|
% of Total loans |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
Classified Loans |
|
$ |
92,246 |
|
|
$ |
77,834 |
|
|
$ |
63,651 |
|
|
[1]
Includes $2.6 million of nonaccrual loans past due 30-89 days. |
The $3.5 million increase in nonperforming loans from June 30,
2023 was primarily due to an increase of $2.6 million in commercial
and industrial loans. Classified loans are loans that are graded
“substandard” or worse. Classified loans increased $14.4 million
quarter-over-quarter, primarily due to a $24.4 million increase in
classified commercial real estate loans, partially offset by a
$11.4 million decrease in classified dairy & livestock
loans.
Deposits & Customer Repurchase
AgreementsDeposits of $12.36 billion and customer
repurchase agreements of $269.6 million totaled $12.63 billion at
September 30, 2023. This represented a decrease of $38.7 million in
deposits and a decrease of $182.8 million in customer repurchases
compared to June 30, 2023. Deposits and customer repurchase
agreements declined by $773.3 million, or 5.77%, when compared with
$13.40 billion at December 31, 2022. Total deposits and customer
repurchase agreements decreased $1.71 billion, or 11.94% when
compared with $14.34 billion at September 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 $720
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 United States
treasury notes or bonds.
Noninterest-bearing deposits were $7.59 billion at September 30,
2023, a decrease of $292.2 million, or 3.71%, when compared to
$7.88 billion at June 30, 2023. Noninterest-bearing deposits
decreased $577.7 million, or 7.08% when compared to $8.16 billion
at December 31, 2022, and decreased $1.18 billion, or 13.44%, when
compared to $8.77 billion at September 30, 2022. At September 30,
2023, noninterest-bearing deposits were 61.39% of total deposits,
compared to 63.55% at June 30, 2023, 63.60% at December 31, 2022,
and 63.18% at September 30, 2022.
Short–Term BorrowingsAs of September 30, 2023,
total short-term borrowings, consisted of $870 million of one-year
advances from the Federal Reserve’s Bank Term Funding Program, at a
cost of 4.9% and $250 million of short-term Federal Home Loan Bank
advances, at an average cost of approximately 5%.
CapitalThe Company’s total equity was $1.95
billion at September 30, 2023. This represented an overall increase
of $2.9 million from total equity of $1.95 billion at December 31,
2022. Increases to equity included $172.9 million in net earnings,
partially offset by a $72.3 million decrease 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 an after tax fair value remeasurement of
this swap derivative of $17.6 million at September 30, 2023,
resulting in an increase in other comprehensive income. Decreases
from December 31, 2022 included $83.7 million in cash dividends. We
engaged in no stock repurchases during the second and third
quarters 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. Our
tangible book value per share at September 30, 2023 was $8.39.
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 |
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0 |
% |
|
10.0 |
% |
|
9.5 |
% |
|
9.1 |
% |
|
Common
equity Tier 1 capital ratio |
|
7.0 |
% |
|
14.4 |
% |
|
13.6 |
% |
|
13.5 |
% |
|
Tier 1
risk-based capital ratio |
|
8.5 |
% |
|
14.4 |
% |
|
13.6 |
% |
|
13.5 |
% |
|
Total
risk-based capital ratio |
|
10.5 |
% |
|
15.3 |
% |
|
14.4 |
% |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
7.7 |
% |
|
7.4 |
% |
|
7.0 |
% |
|
CitizensTrustAs of September 30, 2023,
CitizensTrust had approximately $3.92 billion in assets under
management and administration, including $2.67 billion in assets
under management. Revenues were $3.2 million for the third quarter
of 2023 and $9.5 million for the nine months ended September 30,
2023, compared to $2.9 million and $8.7 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 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 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,
October 26, 2023 to discuss the Company’s third quarter 2023
financial results. The conference call can be accessed live by
registering at:
https://register.vevent.com/register/BI8fde245f582a446582ace82fc00f555f
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 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 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; 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 potential legislation to combat
cybersecurity threats 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) |
|
|
|
|
|
|
|
|
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
Cash and due from banks |
|
$ |
176,488 |
|
|
$ |
158,236 |
|
|
$ |
186,647 |
|
Interest-earning balances due from Federal Reserve |
|
|
64,207 |
|
|
|
45,225 |
|
|
|
131,892 |
|
Total cash and cash equivalents |
|
|
240,695 |
|
|
|
203,461 |
|
|
|
318,539 |
|
Interest-earning balances due from depository institutions |
|
|
4,108 |
|
|
|
9,553 |
|
|
|
7,594 |
|
Investment securities available-for-sale |
|
|
2,873,163 |
|
|
|
3,255,211 |
|
|
|
3,321,824 |
|
Investment securities held-to-maturity |
|
|
2,489,441 |
|
|
|
2,554,301 |
|
|
|
2,557,922 |
|
Total investment securities |
|
|
5,362,604 |
|
|
|
5,809,512 |
|
|
|
5,879,746 |
|
Investment in stock of Federal Home Loan Bank (FHLB) |
|
|
18,012 |
|
|
|
27,627 |
|
|
|
18,012 |
|
Loans and lease finance receivables |
|
|
8,877,632 |
|
|
|
9,079,392 |
|
|
|
8,774,136 |
|
Allowance for credit losses |
|
|
(88,995 |
) |
|
|
(85,117 |
) |
|
|
(82,601 |
) |
Net loans and lease finance receivables |
|
|
8,788,637 |
|
|
|
8,994,275 |
|
|
|
8,691,535 |
|
Premises and equipment, net |
|
|
44,561 |
|
|
|
46,698 |
|
|
|
47,422 |
|
Bank owned life insurance (BOLI) |
|
|
259,468 |
|
|
|
255,528 |
|
|
|
256,850 |
|
Intangibles |
|
|
16,736 |
|
|
|
21,742 |
|
|
|
23,466 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
Other assets |
|
|
402,372 |
|
|
|
342,322 |
|
|
|
340,290 |
|
Total assets |
|
$ |
15,903,015 |
|
|
$ |
16,476,540 |
|
|
$ |
16,349,276 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,586,649 |
|
|
$ |
8,164,364 |
|
|
$ |
8,764,556 |
|
Investment checking |
|
|
560,223 |
|
|
|
723,870 |
|
|
|
751,618 |
|
Savings and money market |
|
|
3,906,187 |
|
|
|
3,653,385 |
|
|
|
3,991,531 |
|
Time deposits |
|
|
305,727 |
|
|
|
294,626 |
|
|
|
364,694 |
|
Total deposits |
|
|
12,358,786 |
|
|
|
12,836,245 |
|
|
|
13,872,399 |
|
Customer repurchase agreements |
|
|
269,552 |
|
|
|
565,431 |
|
|
|
467,844 |
|
Other borrowings |
|
|
1,120,000 |
|
|
|
995,000 |
|
|
|
- |
|
Payable for securities purchased |
|
|
- |
|
|
|
- |
|
|
|
8,697 |
|
Other liabilities |
|
|
203,276 |
|
|
|
131,347 |
|
|
|
121,450 |
|
Total liabilities |
|
|
13,951,614 |
|
|
|
14,528,023 |
|
|
|
14,470,390 |
|
Stockholders' Equity |
|
|
|
|
|
|
Stockholders' equity |
|
|
2,378,539 |
|
|
|
2,303,313 |
|
|
|
2,262,383 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(427,138 |
) |
|
|
(354,796 |
) |
|
|
(383,497 |
) |
Total stockholders' equity |
|
|
1,951,401 |
|
|
|
1,948,517 |
|
|
|
1,878,886 |
|
Total liabilities and stockholders'
equity |
|
$ |
15,903,015 |
|
|
$ |
16,476,540 |
|
|
$ |
16,349,276 |
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
176,133 |
|
|
$ |
178,405 |
|
|
$ |
184,384 |
|
|
$ |
176,559 |
|
|
$ |
183,389 |
|
Interest-earning balances due from Federal Reserve |
|
|
467,873 |
|
|
|
347,161 |
|
|
|
625,705 |
|
|
|
285,573 |
|
|
|
1,021,676 |
|
Total cash and cash equivalents |
|
|
644,006 |
|
|
|
525,566 |
|
|
|
810,089 |
|
|
|
462,132 |
|
|
|
1,205,065 |
|
Interest-earning balances due from depository institutions |
|
|
5,518 |
|
|
|
6,449 |
|
|
|
7,447 |
|
|
|
7,630 |
|
|
|
9,130 |
|
Investment securities available-for-sale |
|
|
3,040,965 |
|
|
|
3,162,917 |
|
|
|
3,576,649 |
|
|
|
3,139,369 |
|
|
|
3,619,983 |
|
Investment securities held-to-maturity |
|
|
2,501,625 |
|
|
|
2,526,689 |
|
|
|
2,457,047 |
|
|
|
2,524,799 |
|
|
|
2,352,350 |
|
Total investment securities |
|
|
5,542,590 |
|
|
|
5,689,606 |
|
|
|
6,033,696 |
|
|
|
5,664,168 |
|
|
|
5,972,333 |
|
Investment in stock of FHLB |
|
|
21,560 |
|
|
|
32,032 |
|
|
|
18,012 |
|
|
|
27,460 |
|
|
|
18,315 |
|
Loans and lease finance receivables |
|
|
8,862,462 |
|
|
|
8,892,413 |
|
|
|
8,699,303 |
|
|
|
8,905,697 |
|
|
|
8,612,166 |
|
Allowance for credit losses |
|
|
(86,986 |
) |
|
|
(86,508 |
) |
|
|
(80,321 |
) |
|
|
(86,222 |
) |
|
|
(76,658 |
) |
Net loans and lease finance receivables |
|
|
8,775,476 |
|
|
|
8,805,905 |
|
|
|
8,618,982 |
|
|
|
8,819,475 |
|
|
|
8,535,508 |
|
Premises and equipment, net |
|
|
45,315 |
|
|
|
45,629 |
|
|
|
47,348 |
|
|
|
45,731 |
|
|
|
50,965 |
|
Bank owned life insurance (BOLI) |
|
|
258,485 |
|
|
|
257,428 |
|
|
|
259,631 |
|
|
|
257,358 |
|
|
|
259,643 |
|
Intangibles |
|
|
17,526 |
|
|
|
19,298 |
|
|
|
24,396 |
|
|
|
19,256 |
|
|
|
26,308 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
|
|
763,578 |
|
Other assets |
|
|
357,280 |
|
|
|
308,789 |
|
|
|
286,465 |
|
|
|
343,782 |
|
|
|
244,875 |
|
Total assets |
|
$ |
16,433,578 |
|
|
$ |
16,456,524 |
|
|
$ |
16,871,888 |
|
|
$ |
16,412,814 |
|
|
$ |
17,085,720 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,813,120 |
|
|
$ |
7,823,496 |
|
|
$ |
9,009,962 |
|
|
$ |
7,908,749 |
|
|
$ |
8,885,637 |
|
Interest-bearing |
|
|
4,769,897 |
|
|
|
4,481,766 |
|
|
|
5,206,387 |
|
|
|
4,624,848 |
|
|
|
5,305,788 |
|
Total deposits |
|
|
12,583,017 |
|
|
|
12,305,262 |
|
|
|
14,216,349 |
|
|
|
12,533,597 |
|
|
|
14,191,425 |
|
Customer repurchase agreements |
|
|
340,809 |
|
|
|
495,179 |
|
|
|
515,134 |
|
|
|
461,478 |
|
|
|
591,609 |
|
Other borrowings |
|
|
1,318,098 |
|
|
|
1,526,958 |
|
|
|
9 |
|
|
|
1,273,521 |
|
|
|
32 |
|
Payable for securities purchased |
|
|
- |
|
|
|
- |
|
|
|
23,035 |
|
|
|
26 |
|
|
|
84,609 |
|
Other liabilities |
|
|
164,624 |
|
|
|
101,417 |
|
|
|
101,163 |
|
|
|
133,020 |
|
|
|
101,881 |
|
Total liabilities |
|
|
14,406,548 |
|
|
|
14,428,816 |
|
|
|
14,855,690 |
|
|
|
14,401,642 |
|
|
|
14,969,556 |
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
2,383,922 |
|
|
|
2,353,975 |
|
|
|
2,264,490 |
|
|
|
2,357,028 |
|
|
|
2,250,774 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(356,892 |
) |
|
|
(326,267 |
) |
|
|
(248,292 |
) |
|
|
(345,856 |
) |
|
|
(134,610 |
) |
Total stockholders' equity |
|
|
2,027,030 |
|
|
|
2,027,708 |
|
|
|
2,016,198 |
|
|
|
2,011,172 |
|
|
|
2,116,164 |
|
Total liabilities and
stockholders' equity |
|
$ |
16,433,578 |
|
|
$ |
16,456,524 |
|
|
$ |
16,871,888 |
|
|
$ |
16,412,814 |
|
|
$ |
17,085,720 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
$ |
113,190 |
|
|
$ |
110,990 |
|
|
$ |
100,077 |
|
|
$ |
332,574 |
|
|
$ |
282,308 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale |
|
|
22,441 |
|
|
|
19,356 |
|
|
|
18,543 |
|
|
|
61,393 |
|
|
|
48,417 |
|
Investment securities held-to-maturity |
|
|
13,576 |
|
|
|
13,740 |
|
|
|
12,834 |
|
|
|
41,272 |
|
|
|
35,211 |
|
Total investment income |
|
|
36,017 |
|
|
|
33,096 |
|
|
|
31,377 |
|
|
|
102,665 |
|
|
|
83,628 |
|
Dividends from FHLB stock |
|
|
598 |
|
|
|
483 |
|
|
|
258 |
|
|
|
1,430 |
|
|
|
902 |
|
Interest-earning deposits with other institutions |
|
|
6,422 |
|
|
|
4,670 |
|
|
|
3,476 |
|
|
|
11,583 |
|
|
|
5,712 |
|
Total interest income |
|
|
156,227 |
|
|
|
149,239 |
|
|
|
135,188 |
|
|
|
448,252 |
|
|
|
372,550 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
16,517 |
|
|
|
10,765 |
|
|
|
1,728 |
|
|
|
32,647 |
|
|
|
4,056 |
|
Borrowings and junior subordinated debentures |
|
|
16,339 |
|
|
|
18,939 |
|
|
|
122 |
|
|
|
46,971 |
|
|
|
376 |
|
Total interest expense |
|
|
32,856 |
|
|
|
29,704 |
|
|
|
1,850 |
|
|
|
79,618 |
|
|
|
4,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income before provision for credit losses |
|
|
123,371 |
|
|
|
119,535 |
|
|
|
133,338 |
|
|
|
368,634 |
|
|
|
368,118 |
|
Provision for credit losses |
|
|
2,000 |
|
|
|
500 |
|
|
|
2,000 |
|
|
|
4,000 |
|
|
|
8,100 |
|
Net interest income after provision for credit
losses |
|
|
121,371 |
|
|
|
119,035 |
|
|
|
131,338 |
|
|
|
364,634 |
|
|
|
360,018 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
5,062 |
|
|
|
4,838 |
|
|
|
5,233 |
|
|
|
15,244 |
|
|
|
15,625 |
|
Trust and investment services |
|
|
3,246 |
|
|
|
3,315 |
|
|
|
2,867 |
|
|
|
9,475 |
|
|
|
8,651 |
|
Other |
|
|
6,001 |
|
|
|
4,503 |
|
|
|
3,490 |
|
|
|
15,448 |
|
|
|
13,248 |
|
Total noninterest income |
|
|
14,309 |
|
|
|
12,656 |
|
|
|
11,590 |
|
|
|
40,167 |
|
|
|
37,524 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
34,744 |
|
|
|
33,548 |
|
|
|
33,233 |
|
|
|
103,539 |
|
|
|
97,442 |
|
Occupancy and equipment |
|
|
5,618 |
|
|
|
5,517 |
|
|
|
5,779 |
|
|
|
16,585 |
|
|
|
16,917 |
|
Professional services |
|
|
2,117 |
|
|
|
2,562 |
|
|
|
2,438 |
|
|
|
6,375 |
|
|
|
6,788 |
|
Computer software expense |
|
|
3,648 |
|
|
|
3,316 |
|
|
|
3,243 |
|
|
|
10,372 |
|
|
|
10,141 |
|
Marketing and promotion |
|
|
1,628 |
|
|
|
1,321 |
|
|
|
1,488 |
|
|
|
4,664 |
|
|
|
4,584 |
|
Amortization of intangible assets |
|
|
1,567 |
|
|
|
1,719 |
|
|
|
1,846 |
|
|
|
5,006 |
|
|
|
5,842 |
|
(Recapture of) provision for unfunded loan commitments |
|
|
(900 |
) |
|
|
400 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Acquisition related expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,013 |
|
Other |
|
|
6,636 |
|
|
|
5,634 |
|
|
|
5,000 |
|
|
|
17,415 |
|
|
|
14,409 |
|
Total noninterest expense |
|
|
55,058 |
|
|
|
54,017 |
|
|
|
53,027 |
|
|
|
163,956 |
|
|
|
162,136 |
|
Earnings before income taxes |
|
|
80,622 |
|
|
|
77,674 |
|
|
|
89,901 |
|
|
|
240,845 |
|
|
|
235,406 |
|
Income taxes |
|
|
22,735 |
|
|
|
21,904 |
|
|
|
25,262 |
|
|
|
67,918 |
|
|
|
66,149 |
|
Net earnings |
|
$ |
57,887 |
|
|
$ |
55,770 |
|
|
$ |
64,639 |
|
|
$ |
172,927 |
|
|
$ |
169,257 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.46 |
|
|
$ |
1.24 |
|
|
$ |
1.20 |
|
Diluted earnings per common share |
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.46 |
|
|
$ |
1.24 |
|
|
$ |
1.20 |
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.60 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Interest income - tax equivalent (TE) |
|
$ |
156,771 |
|
|
$ |
149,785 |
|
|
$ |
135,639 |
|
|
$ |
449,888 |
|
|
$ |
373,763 |
|
Interest expense |
|
|
32,856 |
|
|
|
29,704 |
|
|
|
1,850 |
|
|
|
79,618 |
|
|
|
4,432 |
|
Net interest income - (TE) |
|
$ |
123,915 |
|
|
$ |
120,081 |
|
|
$ |
133,789 |
|
|
$ |
370,270 |
|
|
$ |
369,331 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets, annualized |
|
|
1.40 |
% |
|
|
1.36 |
% |
|
|
1.52 |
% |
|
|
1.41 |
% |
|
|
1.32 |
% |
Return on average equity, annualized |
|
|
11.33 |
% |
|
|
11.03 |
% |
|
|
12.72 |
% |
|
|
11.50 |
% |
|
|
10.69 |
% |
Efficiency ratio [1] |
|
|
39.99 |
% |
|
|
40.86 |
% |
|
|
36.59 |
% |
|
|
40.11 |
% |
|
|
39.97 |
% |
Noninterest expense to average assets, annualized |
|
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.25 |
% |
|
|
1.34 |
% |
|
|
1.27 |
% |
Yield on average loans |
|
|
5.07 |
% |
|
|
5.01 |
% |
|
|
4.56 |
% |
|
|
4.99 |
% |
|
|
4.38 |
% |
Yield on average earning assets (TE) |
|
|
4.18 |
% |
|
|
4.01 |
% |
|
|
3.51 |
% |
|
|
4.04 |
% |
|
|
3.21 |
% |
Cost of deposits |
|
|
0.52 |
% |
|
|
0.35 |
% |
|
|
0.05 |
% |
|
|
0.35 |
% |
|
|
0.04 |
% |
Cost of deposits and customer repurchase agreements |
|
|
0.51 |
% |
|
|
0.35 |
% |
|
|
0.05 |
% |
|
|
0.34 |
% |
|
|
0.04 |
% |
Cost of funds |
|
|
0.92 |
% |
|
|
0.83 |
% |
|
|
0.05 |
% |
|
|
0.75 |
% |
|
|
0.04 |
% |
Net interest margin (TE) |
|
|
3.31 |
% |
|
|
3.22 |
% |
|
|
3.46 |
% |
|
|
3.32 |
% |
|
|
3.17 |
% |
[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 |
|
|
7.73 |
% |
|
|
7.75 |
% |
|
|
7.00 |
% |
|
|
|
|
Citizens Business Bank |
|
|
7.63 |
% |
|
|
7.67 |
% |
|
|
6.72 |
% |
|
|
|
|
[2] (Capital - [GW+Intangibles])/(Total Assets -
[GW+Intangibles]) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
138,345,000 |
|
|
|
138,330,131 |
|
|
|
138,887,911 |
|
|
|
138,360,531 |
|
|
|
139,923,280 |
|
Diluted |
|
|
138,480,633 |
|
|
|
138,383,239 |
|
|
|
139,346,975 |
|
|
|
138,481,462 |
|
|
|
140,223,296 |
|
Dividends declared |
|
$ |
27,901 |
|
|
$ |
27,787 |
|
|
$ |
27,965 |
|
|
$ |
83,695 |
|
|
$ |
80,151 |
|
Dividend payout ratio [3] |
|
|
48.20 |
% |
|
|
49.82 |
% |
|
|
43.26 |
% |
|
|
48.40 |
% |
|
|
47.35 |
% |
[3] Dividends declared on common stock divided by net
earnings. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding - (end of period) |
|
|
139,337,699 |
|
|
|
139,343,284 |
|
|
|
139,805,445 |
|
|
|
|
|
Book value per share |
|
$ |
14.00 |
|
|
$ |
14.36 |
|
|
$ |
13.44 |
|
|
|
|
|
Tangible book value per share |
|
$ |
8.39 |
|
|
$ |
8.74 |
|
|
$ |
7.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
9,963 |
|
|
$ |
4,930 |
|
|
$ |
10,117 |
|
|
|
|
|
Total nonperforming assets |
|
$ |
9,963 |
|
|
$ |
4,930 |
|
|
$ |
10,117 |
|
|
|
|
|
Modified loans/performing troubled debt restructured loans (TDR)
[4] |
|
$ |
7,304 |
|
|
$ |
7,817 |
|
|
$ |
5,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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 |
|
|
0.11 |
% |
|
|
0.05 |
% |
|
|
0.12 |
% |
|
|
|
|
Percentage of nonperforming assets to total assets |
|
|
0.06 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
|
|
|
|
Allowance for credit losses to nonperforming assets |
|
|
893.26 |
% |
|
|
1726.51 |
% |
|
|
816.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
86,967 |
|
|
$ |
86,540 |
|
|
$ |
80,222 |
|
|
$ |
85,117 |
|
|
$ |
65,019 |
|
Suncrest FV PCD loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,605 |
|
Total charge-offs |
|
|
(26 |
) |
|
|
(88 |
) |
|
|
(46 |
) |
|
|
(224 |
) |
|
|
(70 |
) |
Total recoveries on loans previously charged-off |
|
|
54 |
|
|
|
15 |
|
|
|
425 |
|
|
|
102 |
|
|
|
947 |
|
Net recoveries (charge-offs) |
|
|
28 |
|
|
|
(73 |
) |
|
|
379 |
|
|
|
(122 |
) |
|
|
877 |
|
Provision for (recapture of) credit losses |
|
|
2,000 |
|
|
|
500 |
|
|
|
2,000 |
|
|
|
4,000 |
|
|
|
8,100 |
|
Allowance for credit losses at end of period |
|
$ |
88,995 |
|
|
$ |
86,967 |
|
|
$ |
82,601 |
|
|
$ |
88,995 |
|
|
$ |
82,601 |
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries (charge-offs) to average loans |
|
|
0.000 |
% |
|
|
-0.001 |
% |
|
|
0.004 |
% |
|
|
-0.001 |
% |
|
|
0.010 |
% |
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
AllowanceFor CreditLosses |
|
Allowanceas a % ofTotal Loansby RespectiveLoan
Type |
|
AllowanceFor CreditLosses |
|
Allowanceas a % ofTotal Loansby RespectiveLoan
Type |
|
AllowanceFor CreditLosses |
|
Allowanceas a % ofTotal Loansby RespectiveLoan
Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
70.9 |
|
|
1.04 |
% |
|
$ |
64.8 |
|
|
0.94 |
% |
|
$ |
64.9 |
|
|
0.97 |
% |
Construction |
|
|
1.0 |
|
|
1.59 |
% |
|
|
1.7 |
|
|
1.93 |
% |
|
|
1.7 |
|
|
2.25 |
% |
SBA |
|
|
3.0 |
|
|
1.08 |
% |
|
|
2.8 |
|
|
0.97 |
% |
|
|
2.8 |
|
|
0.95 |
% |
Commercial and industrial |
|
|
9.3 |
|
|
0.99 |
% |
|
|
10.2 |
|
|
1.08 |
% |
|
|
7.1 |
|
|
0.75 |
% |
Dairy & livestock and agribusiness |
|
|
3.6 |
|
|
1.01 |
% |
|
|
4.4 |
|
|
1.01 |
% |
|
|
5.0 |
|
|
1.55 |
% |
Municipal lease finance receivables |
|
|
0.3 |
|
|
0.33 |
% |
|
|
0.3 |
|
|
0.36 |
% |
|
|
0.2 |
|
|
0.31 |
% |
SFR mortgage |
|
|
0.5 |
|
|
0.20 |
% |
|
|
0.4 |
|
|
0.14 |
% |
|
|
0.4 |
|
|
0.12 |
% |
Consumer and other loans |
|
|
0.4 |
|
|
0.82 |
% |
|
|
0.5 |
|
|
0.69 |
% |
|
|
0.5 |
|
|
0.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
89.0 |
|
|
1.00 |
% |
|
$ |
85.1 |
|
|
0.94 |
% |
|
$ |
82.6 |
|
|
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, |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
29.25 |
|
|
$ |
25.26 |
|
|
$ |
21.85 |
|
|
$ |
19.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
|
|
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
|
|
$ |
113,190 |
|
|
$ |
110,990 |
|
|
$ |
108,394 |
|
|
$ |
106,884 |
|
|
$ |
100,077 |
|
Investment securities and other |
|
|
|
|
43,037 |
|
|
|
38,249 |
|
|
|
34,392 |
|
|
|
35,234 |
|
|
|
35,111 |
|
Total interest income |
|
|
|
|
156,227 |
|
|
|
149,239 |
|
|
|
142,786 |
|
|
|
142,118 |
|
|
|
135,188 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
16,517 |
|
|
|
10,765 |
|
|
|
5,365 |
|
|
|
2,774 |
|
|
|
1,728 |
|
Other borrowings |
|
|
|
|
16,339 |
|
|
|
18,939 |
|
|
|
11,693 |
|
|
|
1,949 |
|
|
|
122 |
|
Total interest expense |
|
|
|
|
32,856 |
|
|
|
29,704 |
|
|
|
17,058 |
|
|
|
4,723 |
|
|
|
1,850 |
|
Net interest income before provision for credit losses |
|
|
|
|
123,371 |
|
|
|
119,535 |
|
|
|
125,728 |
|
|
|
137,395 |
|
|
|
133,338 |
|
Provision for credit losses |
|
|
|
|
2,000 |
|
|
|
500 |
|
|
|
1,500 |
|
|
|
2,500 |
|
|
|
2,000 |
|
Net interest income after provision for credit losses |
|
|
|
|
121,371 |
|
|
|
119,035 |
|
|
|
124,228 |
|
|
|
134,895 |
|
|
|
131,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
14,309 |
|
|
|
12,656 |
|
|
|
13,202 |
|
|
|
12,465 |
|
|
|
11,590 |
|
Noninterest expense |
|
|
|
|
55,058 |
|
|
|
54,017 |
|
|
|
54,881 |
|
|
|
54,419 |
|
|
|
53,027 |
|
Earnings before income taxes |
|
|
|
|
80,622 |
|
|
|
77,674 |
|
|
|
82,549 |
|
|
|
92,941 |
|
|
|
89,901 |
|
Income taxes |
|
|
|
|
22,735 |
|
|
|
21,904 |
|
|
|
23,279 |
|
|
|
26,773 |
|
|
|
25,262 |
|
Net earnings |
|
|
|
$ |
57,887 |
|
|
$ |
55,770 |
|
|
$ |
59,270 |
|
|
$ |
66,168 |
|
|
$ |
64,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
|
28.20 |
% |
|
|
28.20 |
% |
|
|
28.20 |
% |
|
|
28.81 |
% |
|
|
28.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
Diluted earnings per common share |
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared |
|
|
|
$ |
27,901 |
|
|
$ |
27,787 |
|
|
$ |
28,007 |
|
|
$ |
27,995 |
|
|
$ |
27,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio by Type |
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
6,843,059 |
|
|
$ |
6,904,095 |
|
|
$ |
6,950,302 |
|
|
$ |
6,884,948 |
|
|
$ |
6,685,245 |
|
Construction |
|
|
63,022 |
|
|
|
68,836 |
|
|
|
83,992 |
|
|
|
88,271 |
|
|
|
76,495 |
|
SBA |
|
|
283,124 |
|
|
|
278,904 |
|
|
|
283,464 |
|
|
|
290,908 |
|
|
|
296,664 |
|
SBA - PPP |
|
|
3,233 |
|
|
|
5,017 |
|
|
|
5,824 |
|
|
|
9,087 |
|
|
|
17,348 |
|
Commercial and industrial |
|
|
938,064 |
|
|
|
956,242 |
|
|
|
898,167 |
|
|
|
948,683 |
|
|
|
952,231 |
|
Dairy & livestock and agribusiness |
|
|
351,463 |
|
|
|
298,247 |
|
|
|
307,820 |
|
|
|
433,564 |
|
|
|
323,105 |
|
Municipal lease finance receivables |
|
|
75,621 |
|
|
|
77,867 |
|
|
|
79,552 |
|
|
|
81,126 |
|
|
|
76,656 |
|
SFR mortgage |
|
|
268,171 |
|
|
|
263,201 |
|
|
|
262,324 |
|
|
|
266,024 |
|
|
|
263,646 |
|
Consumer and other loans |
|
|
51,875 |
|
|
|
54,988 |
|
|
|
71,044 |
|
|
|
76,781 |
|
|
|
82,746 |
|
Gross loans, at amortized cost |
|
|
8,877,632 |
|
|
|
8,907,397 |
|
|
|
8,942,489 |
|
|
|
9,079,392 |
|
|
|
8,774,136 |
|
Allowance for credit losses |
|
|
(88,995 |
) |
|
|
(86,967 |
) |
|
|
(86,540 |
) |
|
|
(85,117 |
) |
|
|
(82,601 |
) |
Net loans |
|
$ |
8,788,637 |
|
|
$ |
8,820,430 |
|
|
$ |
8,855,949 |
|
|
$ |
8,994,275 |
|
|
$ |
8,691,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Composition by Type and Customer Repurchase
Agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,586,649 |
|
|
$ |
7,878,810 |
|
|
$ |
7,844,329 |
|
|
$ |
8,164,364 |
|
|
$ |
8,764,556 |
|
Investment checking |
|
|
560,223 |
|
|
|
574,817 |
|
|
|
668,947 |
|
|
|
723,870 |
|
|
|
751,618 |
|
Savings and money market |
|
|
3,906,187 |
|
|
|
3,627,858 |
|
|
|
3,474,651 |
|
|
|
3,653,385 |
|
|
|
3,991,531 |
|
Time deposits |
|
|
305,727 |
|
|
|
316,036 |
|
|
|
283,943 |
|
|
|
294,626 |
|
|
|
364,694 |
|
Total deposits |
|
|
12,358,786 |
|
|
|
12,397,521 |
|
|
|
12,271,870 |
|
|
|
12,836,245 |
|
|
|
13,872,399 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
|
269,552 |
|
|
|
452,373 |
|
|
|
490,235 |
|
|
|
565,431 |
|
|
|
467,844 |
|
Total deposits and customer repurchase agreements |
|
$ |
12,628,338 |
|
|
$ |
12,849,894 |
|
|
$ |
12,762,105 |
|
|
$ |
13,401,676 |
|
|
$ |
14,340,243 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets and Delinquency Trends |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
3,655 |
|
|
$ |
3,159 |
|
|
$ |
2,634 |
|
|
$ |
2,657 |
|
|
$ |
6,705 |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
1,050 |
|
|
|
629 |
|
|
|
702 |
|
|
|
443 |
|
|
|
1,065 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
4,672 |
|
|
|
2,039 |
|
|
|
2,049 |
|
|
|
1,320 |
|
|
|
1,308 |
|
Dairy & livestock and agribusiness |
|
|
243 |
|
|
|
273 |
|
|
|
406 |
|
|
|
477 |
|
|
|
1,007 |
|
SFR mortgage |
|
|
339 |
|
|
|
354 |
|
|
|
384 |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
|
4 |
|
|
|
- |
|
|
|
- |
|
|
|
33 |
|
|
|
32 |
|
Total |
|
$ |
9,963 |
|
[1] |
$ |
6,454 |
|
|
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
10,117 |
|
% of Total loans |
|
|
0.11 |
% |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
Past due 30-89 days (accruing): |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
136 |
|
|
$ |
532 |
|
|
$ |
425 |
|
|
$ |
- |
|
|
$ |
- |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
575 |
|
|
|
556 |
|
|
|
- |
|
Commercial and industrial |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
|
- |
|
|
|
555 |
|
|
|
183 |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
388 |
|
|
|
- |
|
Consumer and other loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
175 |
|
|
|
- |
|
Total |
|
$ |
136 |
|
|
$ |
1,087 |
|
|
$ |
1,183 |
|
|
$ |
1,119 |
|
|
$ |
- |
|
% of Total loans |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
OREO: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Total nonperforming, past due, and OREO |
|
$ |
10,099 |
|
|
$ |
7,541 |
|
|
$ |
7,358 |
|
|
$ |
6,049 |
|
|
$ |
10,117 |
|
% of Total loans |
|
|
0.11 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
[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 PlusCapital Conservation
Buffer |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0% |
|
10.0% |
|
9.5% |
|
9.1% |
Common equity Tier 1 capital ratio |
|
7.0% |
|
14.4% |
|
13.6% |
|
13.5% |
Tier 1 risk-based capital ratio |
|
8.5% |
|
14.4% |
|
13.6% |
|
13.5% |
Total risk-based capital ratio |
|
10.5% |
|
15.3% |
|
14.4% |
|
14.3% |
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
|
|
7.7% |
|
7.4% |
|
7.0% |
|
|
|
|
|
|
|
|
|
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 September 30,
2023, December 31, 2022 and September 30, 2022. |
|
|
|
|
|
|
|
|
|
|
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
$ |
1,951,401 |
|
|
$ |
1,948,517 |
|
|
$ |
1,878,886 |
|
|
Less: Goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
Less: Intangible assets |
|
|
(16,736 |
) |
|
|
(21,742 |
) |
|
|
(23,466 |
) |
|
Tangible book value |
|
$ |
1,168,843 |
|
|
$ |
1,160,953 |
|
|
$ |
1,089,598 |
|
|
Common shares issued and outstanding |
|
|
139,337,699 |
|
|
|
139,818,703 |
|
|
|
139,805,445 |
|
|
Tangible book value per share |
|
$ |
8.39 |
|
|
$ |
8.30 |
|
|
$ |
7.79 |
|
|
|
|
|
|
|
|
|
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 |
|
Nine Months Ended |
|
|
|
September 30, |
June 30, |
|
September 30, |
September 30, |
September 30, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
57,887 |
|
|
$ |
55,770 |
|
|
$ |
64,639 |
|
|
$ |
172,927 |
|
|
$ |
169,257 |
|
|
Add: Amortization of intangible assets |
|
|
1,567 |
|
|
|
1,719 |
|
|
|
1,846 |
|
|
|
5,006 |
|
|
|
5,842 |
|
|
Less: Tax effect of amortization of intangible assets [1] |
|
|
(463 |
) |
|
|
(508 |
) |
|
|
(546 |
) |
|
|
(1,480 |
) |
|
|
(1,727 |
) |
|
Tangible net income |
|
$ |
58,991 |
|
|
$ |
56,981 |
|
|
$ |
65,939 |
|
|
$ |
176,453 |
|
|
$ |
173,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
|
$ |
2,027,030 |
|
|
$ |
2,027,708 |
|
|
$ |
2,016,198 |
|
|
$ |
2,011,172 |
|
|
$ |
2,116,164 |
|
|
Less: Average goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(763,578 |
) |
|
Less: Average intangible assets |
|
|
(17,526 |
) |
|
|
(19,298 |
) |
|
|
(24,396 |
) |
|
|
(19,256 |
) |
|
|
(26,308 |
) |
|
Average tangible common equity |
|
$ |
1,243,682 |
|
|
$ |
1,242,588 |
|
|
$ |
1,225,980 |
|
|
$ |
1,226,094 |
|
|
$ |
1,326,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity, annualized |
|
|
11.33 |
% |
|
|
11.03 |
% |
|
|
12.72 |
% |
|
|
11.50 |
% |
|
|
10.69 |
% |
|
Return on average tangible common equity, annualized |
|
|
18.82 |
% |
|
|
18.39 |
% |
|
|
21.34 |
% |
|
|
19.24 |
% |
|
|
17.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Tax effected at respective statutory rates. |
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