CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (the “Company”), announced earnings for the quarter
and the year ended December 31, 2023.
CVB Financial Corp. reported net income of $48.5 million for the
quarter ended December 31, 2023, compared with $57.9 million for
the third quarter of 2023 and $66.2 million for the fourth quarter
of 2022. Diluted earnings per share were $0.35 for the fourth
quarter, compared to $0.42 for the prior quarter and $0.47 for the
same period last year. Fourth quarter net income was negatively
impacted by a $9.2 million expense accrual for the FDIC’s final
rule that implements a special assessment that will be collected
over eight quarters starting in 2024. Net income of $48.5 million
for the fourth quarter of 2023 produced an annualized return on
average equity (“ROAE”) of 9.65%, an annualized return on average
tangible common equity (“ROATCE”) of 16.21%, and an annualized
return on average assets (“ROAA”) of 1.19%.
For the year ended December 31, 2023, the Company reported net
income of $221.4 million, compared with $235.4 million for the year
ended December 31, 2022. Diluted earnings per share were $1.59 for
the year ended December 31, 2023, compared to $1.67 for the same
period last year. For the year ended December 31, 2023, ROAA was
1.35% and ROATCE was 18.48%, which compares to a 1.39% ROAA and
18.85% ROATCE for 2022.
David Brager, President and Chief Executive Officer of Citizens
Business Bank, commented, “During the course of 2023, Citizens
Business Bank not only remained safe and sound but also produced
earnings that were the second highest in the Company’s history,
despite the difficult operating environment. We remain
committed to our strategy of banking the best small to medium sized
businesses and their owners. We work hard to earn and
maintain the trust of our customers and business partners, and we
wish to thank our customers and associates for their loyalty and
dedication over the past year.”
Highlights for the Fourth Quarter of 2023
- Pretax Pre-Provision income was
$72.6 million, down $10 million or 12%, predominately driven by the
$9.2 million FDIC special assessment expense
- Net interest margin of 3.26%,
declined by 5 basis points compared to prior quarter
- $2 million recapture of provision
for credit losses
- Investment securities declined by
$214 million on average compared to prior quarter
- BOLI restructuring resulted in $49
million increase in value from the prior quarter
- Noninterest-bearing deposits were
61% of total deposits, on average, for the quarter
- Total deposits decreased by $429
million on average compared to prior quarter
- Total borrowings increased by $267
million, on average, from the prior quarter
- TCE Ratio = 8.5% & CET1 =
14.6%
Highlights for the Full Year 2023
- Pretax Pre-Provision income was
$317.4 million, down from $338.9 million in 2022, primarily driven
by the FDIC special assessment
- Net interest margin of 3.31%,
compared to 3.30% for 2022
- Efficiency Ratio of 42%, compared
with 39% for 2022
- Investments declined by
approximately $400 million from year end 2022 to December 31,
2023
- Loans declined by approximately $174
million from year end 2022 to December 31, 2023
- Total deposits declined by
approximately $1.4 billion from year end 2022 to December 31,
2023
- Noninterest-bearing deposits were
63% of total deposits at December 31, 2023
- Total borrowings increased by
approximately $1.1 billion from year end 2022 to December 31,
2023
INCOME STATEMENT HIGHLIGHTS
|
Three Months Ended |
|
Year Ended December 31, |
|
December 31,
2023 |
|
September
30, 2023 |
|
December 31,
2022 |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars in
thousands, except per share amounts) |
Net interest
income |
$ |
119,356 |
|
|
$ |
123,371 |
|
|
$ |
137,395 |
|
|
$ |
487,990 |
|
|
$ |
505,513 |
|
|
$ |
414,550 |
|
(Provision
for) recapture of credit losses |
|
2,000 |
|
|
|
(2,000 |
) |
|
|
(2,500 |
) |
|
|
(2,000 |
) |
|
|
(10,600 |
) |
|
|
25,500 |
|
Noninterest
income |
|
19,163 |
|
|
|
14,309 |
|
|
|
12,465 |
|
|
|
59,330 |
|
|
|
49,989 |
|
|
|
47,385 |
|
Noninterest
expense |
|
(65,930 |
) |
|
|
(55,058 |
) |
|
|
(54,419 |
) |
|
|
(229,886 |
) |
|
|
(216,555 |
) |
|
|
(189,787 |
) |
Income
taxes |
|
(26,081 |
) |
|
|
(22,735 |
) |
|
|
(26,773 |
) |
|
|
(93,999 |
) |
|
|
(92,922 |
) |
|
|
(85,127 |
) |
Net earnings |
$ |
48,508 |
|
|
$ |
57,887 |
|
|
$ |
66,168 |
|
|
$ |
221,435 |
|
|
$ |
235,425 |
|
|
$ |
212,521 |
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.35 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
1.59 |
|
|
$ |
1.67 |
|
|
$ |
1.57 |
|
Diluted |
$ |
0.35 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
1.59 |
|
|
$ |
1.67 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NIM |
|
3.26 |
% |
|
|
3.31 |
% |
|
|
3.69 |
% |
|
|
3.31 |
% |
|
|
3.30 |
% |
|
|
2.97 |
% |
ROAA |
|
1.19 |
% |
|
|
1.40 |
% |
|
|
1.60 |
% |
|
|
1.35 |
% |
|
|
1.39 |
% |
|
|
1.38 |
% |
ROAE |
|
9.65 |
% |
|
|
11.33 |
% |
|
|
13.68 |
% |
|
|
11.03 |
% |
|
|
11.39 |
% |
|
|
10.30 |
% |
ROATCE |
|
16.21 |
% |
|
|
18.82 |
% |
|
|
23.65 |
% |
|
|
18.48 |
% |
|
|
18.85 |
% |
|
|
15.93 |
% |
Efficiency
ratio |
|
47.60 |
% |
|
|
39.99 |
% |
|
|
36.31 |
% |
|
|
42.00 |
% |
|
|
38.98 |
% |
|
|
41.09 |
% |
Noninterest
expense to average assets, annualized |
|
1.62 |
% |
|
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.41 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest IncomeNet interest income was
$119.4 million for the fourth quarter of 2023. This represented a
$4.0 million, or 3.25%, decline from the third quarter of 2023, and
an $18.0 million, or 13.13%, decrease from the fourth quarter of
2022. The quarter-over-quarter decrease in net interest income was
primarily due to a $253.4 million decrease in average earning
assets and a five basis point decline in net interest margin. The
decline in net interest income compared to the fourth quarter of
2022 was due to a 43 basis point decrease in net interest margin
and a $216.5 million decline in average earning assets.
Net interest income of $488.0 million for the year ended
December 31, 2023, decreased $17.5 million, or 3.47%, compared to
the same period of 2022. Interest income grew by $91.7 million, or
17.81% in 2023, offset by a $109.2 million increase in interest
expense year-over-year. Cost of funds for 2023 increased by 77
basis points over 2022, while the earning asset yield grew by 74
basis points. Average earning assets declined by $610.4 million
year-over-year.
Net Interest MarginOur tax equivalent net
interest margin was 3.26% for the fourth quarter of 2023, compared
to 3.31% for the third quarter of 2023 and 3.69% for the fourth
quarter of 2022. The five basis point decrease in our net interest
margin compared to the third quarter of 2023, was the result of a
17 basis point increase in our cost of funds, offset by a 12 basis
point increase in our interest-earning asset yield. The 12 basis
point increase in our interest-earning asset yield was due to an 11
basis point increase in loan yields, a seven basis point increase
in security yields, and a quarter-over-quarter change in the
composition of average earning assets, with investment securities
decreasing from approximately 37% of average earnings assets to
36%. Cost of funds increased in the fourth quarter, as cost of
deposits and customer repurchases increased by 10 basis points to
0.61%. Average borrowings for the fourth quarter of 2023 of $1.59
billion had an average cost of 4.91%. On average, borrowings
increased $267.2 million during the fourth quarter. The decrease in
net interest margin of 43 basis points, compared to the fourth
quarter of 2022, was primarily the result of a 96 basis point
increase in cost of funds. Total cost of funds of 1.09% for the
fourth quarter of 2023 increased from 0.13% for the year ago
quarter. This 96 basis point increase in cost of funds was the
result of a 1.37% increase in the cost of interest-bearing deposits
and an increase in average borrowings of $1.42 billion. Borrowings
had an average cost of 4.91% for the fourth quarter of 2023,
compared to an average cost of 4.49% for the prior year quarter. A
49 basis point increase in earning asset yields over the prior year
quarter partially offset the increase in funding costs. Included in
the higher earning asset yields, were higher loan yields, which
grew from 4.78% for the fourth quarter of 2022 to 5.18% for the
fourth quarter of 2023. Additionally, the yield on investment
securities increased by 35 basis points from the prior year
quarter, primarily due to the positive spread generated from the
pay-fixed swaps, in which the Company receives daily SOFR and pays
a weighted average fixed cost of approximately 3.8%.
Earning Assets and DepositsOn average, earning
assets declined by $253.4 million, compared to the third quarter of
2023 and declined by $216.5 million when compared to the fourth
quarter of 2022. The $253.4 million quarter-over-quarter decrease
in earning assets resulted from a $214.4 million decline in average
investment securities and a $30.3 million decrease in average
earning balances due from the Federal Reserve. Compared to the
fourth quarter of 2022, the average balance of investment
securities decreased by $514.1 million, while the average amount of
funds held at the Federal Reserve increased by $312.2
million. Noninterest-bearing deposits declined on
average by $362.3 million, or 4.64%, from the third quarter of 2023
and interest-bearing deposits and customer repurchase agreements
declined on average by $106.2 million. Compared to the fourth
quarter of 2022, total deposits and customer repurchase agreements
declined on average by $1.75 billion, or 12.33%, including a
decline of $1.25 billion in noninterest-bearing deposits. On
average, noninterest-bearing deposits were 61.30% of total deposits
during the most recent quarter, compared to 62.09% for the third
quarter of 2023 and 63.58% for the fourth quarter of 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
SELECTED FINANCIAL HIGHLIGHTS |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
(Dollars in
thousands) |
|
Yield on average investment securities (TE) |
|
2.71% |
|
|
|
2.64% |
|
|
|
2.36% |
|
|
Yield on average loans |
|
5.18% |
|
|
|
5.07% |
|
|
|
4.78% |
|
|
Yield on average earning assets (TE) |
|
4.30% |
|
|
|
4.18% |
|
|
|
3.82% |
|
|
Cost of deposits |
|
0.62% |
|
|
|
0.52% |
|
|
|
0.08% |
|
|
Cost of funds |
|
1.09% |
|
|
|
0.92% |
|
|
|
0.13% |
|
|
Net interest margin (TE) |
|
3.26% |
|
|
|
3.31% |
|
|
|
3.69% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
|
Avg |
|
% of Total |
|
Total investment securities |
$ |
5,328,208 |
|
36.38 |
% |
|
$ |
5,542,590 |
|
37.20 |
% |
|
$ |
5,842,283 |
|
39.31 |
% |
|
|
Interest-earning deposits with other institutions |
|
443,773 |
|
3.03 |
% |
|
|
473,391 |
|
3.18 |
% |
|
|
133,931 |
|
0.90 |
% |
|
|
Loans |
|
8,856,654 |
|
60.47 |
% |
|
|
8,862,462 |
|
59.48 |
% |
|
|
8,868,673 |
|
59.67 |
% |
|
|
Total
interest-earning assets |
|
14,646,647 |
|
|
|
|
14,900,003 |
|
|
|
|
14,863,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
SELECTED FINANCIAL HIGHLIGHTS |
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
(Dollars in
thousands) |
|
Yield on average investment securities (TE) |
|
2.52% |
|
|
|
2.03% |
|
|
|
1.56% |
|
|
Yield on average loans |
|
5.04% |
|
|
|
4.49% |
|
|
|
4.42% |
|
|
Yield on average earning assets (TE) |
|
4.10% |
|
|
|
3.36% |
|
|
|
3.02% |
|
|
Cost of deposits |
|
0.41% |
|
|
|
0.05% |
|
|
|
0.04% |
|
|
Cost of funds |
|
0.83% |
|
|
|
0.06% |
|
|
|
0.05% |
|
|
Net interest margin (TE) |
|
3.31% |
|
|
|
3.30% |
|
|
|
2.97% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
|
Avg |
|
% of Total |
|
Total
investment securities |
$ |
5,579,488 |
|
37.63 |
% |
|
$ |
5,939,554 |
|
38.47 |
% |
|
$ |
4,058,459 |
|
28.79 |
% |
|
|
Interest-earning deposits with other institutions |
|
331,156 |
|
2.23 |
% |
|
|
804,744 |
|
5.21 |
% |
|
|
1,953,209 |
|
13.86 |
% |
|
|
Loans |
|
8,893,335 |
|
59.97 |
% |
|
|
8,676,820 |
|
56.20 |
% |
|
|
8,065,877 |
|
57.22 |
% |
|
|
Total
interest-earning assets |
|
14,829,057 |
|
|
|
|
15,439,427 |
|
|
|
|
14,095,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit Losses The fourth quarter
of 2023 included a $2.0 million recapture of provision for credit
losses, compared to $2.0 million in provision for credit losses in
the third quarter of 2023 and $2.5 million of provision in the
fourth quarter of 2022. The year-to-date provision for credit
losses of $2.0 million was the result of an overall increase in
projected loss rates from 0.94% at the end of 2022 to 0.98% at
December 31, 2023. The modest changes in projected loss rates
continue to be driven primarily by economic forecast changes to
various macroeconomic variables such as GDP growth, commercial real
estate values and the rate of unemployment.
For the year ended December 31, 2022, we recorded $10.6 million
in provision for credit losses, due to both core loan growth of
approximately $600 million and a deteriorating economic forecast of
key macroeconomic variables.
Noninterest IncomeNoninterest income was $19.2
million for the fourth quarter of 2023, compared with $14.3 million
for the third quarter of 2023 and $12.5 million for the fourth
quarter of 2022. Fourth quarter income from Bank Owned Life
Insurance (“BOLI”) increased by $6.4 million from the third quarter
of 2023 and by $6.5 million compared to the fourth quarter of 2022.
At the end of the fourth quarter of 2023, the Company restructured
its BOLI assets by surrendering various policies valued at
approximately $68 million, resulting in a write-down of asset
values of approximately $4.5 million and additional income tax
expense and penalties of approximately $6.5 million. This combined
restructuring charge of $10.9 million, was offset by increases to
the cash surrender value of new policies purchased during the
quarter, resulting in an increase to noninterest income of $6.5
million. The fourth quarter of 2023 included a $1.1 million
increase in CRA investment income due to underlying asset valuation
increases, while the third quarter of 2023 included approximately
$2.6 million in gain from an equity fund distribution related to a
CRA investment. Service charges on deposits decreased by $87,000,
or 1.72% over the third quarter of 2023 and declined by $782,000,
or 13.58% in comparison to the fourth quarter of 2022. Trust and
investment service fees declined by $165,000 or 5.1% from the prior
quarter, but increased by $214,000, or 7.5% compared to the
year-ago quarter.
For the year ended December 31, 2023, noninterest income was
$59.3 million, compared to $50.0 million for 2022. 2023
included the $2.6 million gain from the equity fund distribution,
while 2022 included a $2.4 million net gain on the sale of one of
our properties. Service charges on deposit accounts decreased by
$1.2 million, or 5.44% from the year ended December 31, 2022. Trust
management fees increased by $1.0 million, or 12.1% compared to
2022. Income from BOLI increased by $7.4 million from the prior
year, primarily due to the $6.5 million increase in cash surrender
value resulting from the surrender and redeployment of the BOLI
policies at the end 2023.
Noninterest ExpenseNoninterest expense for the
fourth quarter of 2023 was $65.9 million, compared to $55.0 million
for the third quarter of 2023 and $54.4 million for the fourth
quarter of 2022. The $10.9 million quarter-over-quarter increase
was primarily due to the expense from accruing the estimated FDIC
special assessment. On November 16, 2023, the FDIC Board of
Directors approved a final rule to implement a special assessment
to recover the loss to the Deposit Insurance Fund (DIF) associated
with protecting uninsured depositors following the closures of
Silicon Valley Bank and Signature Bank. As a result, the Company
recorded noninterest expense of $9.2 million associated with the
FDIC special assessment in the fourth quarter of 2023. The fourth
quarter of 2023 included $500,000 in recapture of provision for
unfunded loan commitments, compared to $900,000 in recapture for
the third quarter of 2023 and no provision for the fourth quarter
of 2022. Salaries and employee benefit costs increased $908,000,
marketing and promotion expense increased $464,000, due to
increased donations, professional services increased $300,000, and
legal expense increased $290,000 quarter-over-quarter. The $908,000
quarter-over-quarter increase in staff related expenses included
$250,000 in higher employee benefit costs associated with the
year-end holidays. The $11.5 million increase in noninterest
expense year-over-year was impacted by the $9.2 million FDIC
special assessment. Year-over-year expense growth included
increased staff related expenses of $1.5 million, or 4.4%. This
increase included a $550,000 decline in contra expense for deferred
origination costs, resulting from a decline in loan originations in
the fourth quarter of 2023, when compared to the prior year.
Marketing and promotion expense increased by $380,000, and computer
software expense increased by $317,000, or 9.4%, when compared to
the fourth quarter of 2022. As a percentage of average assets,
noninterest expense was 1.62% for the fourth quarter of 2023,
compared to 1.33% for the third quarter of 2023 and 1.32% for the
fourth quarter of 2022. Excluding the impact of the FDIC special
assessment, the noninterest expense ratio for the fourth quarter of
2023 was 1.39%. The efficiency ratio for the fourth quarter of 2023
was 47.60%, or 40.98% excluding the FDIC special assessment,
compared to 39.99% for the third quarter of 2023 and 36.31% for the
fourth quarter of 2022.
Noninterest expense of $229.9 million for the year ended
December 31, 2023 was $13.3 million higher than the prior year. The
year-over-year increase included a $12.2 million increase in
regulatory assessments, including the $9.2 million FDIC special
assessment, and a $7.6 million increase in salaries and employee
benefits, primarily due to inflationary pressures on salaries and
benefits and a $2.9 million decline in the contra expense for
deferred origination costs due to fewer loan originations. These
increases were partially offset by a $6.0 million decrease in
acquisition expense. As a percentage of average assets, noninterest
expense was 1.41% for 2023, compared to 1.28% for 2022. The
efficiency ratio was 42.00% for the year ended 2023, compared to
38.98% for the same period of 2022.
Income Taxes Our effective tax rate for the
fourth quarter of 2023 was 34.97% and was 29.80% for the year ended
December 31, 2023, compared with 28.81% for the fourth quarter and
28.30% for year-to-date 2022. During the fourth quarter and full
year of 2023, our effective tax rate was impacted by approximately
$6.5 million in income tax expense and penalties resulting from the
surrender of certain BOLI policies. Our estimated annual effective
tax rate can vary depending upon the level of tax-advantaged income
from municipal securities and BOLI, as well as available tax
credits.
BALANCE SHEET HIGHIGHTS
AssetsThe Company reported total assets of
$16.02 billion at December 31, 2023. This represented an increase
of $118.0 million, or 0.74%, from total assets of $15.90 billion at
September 30, 2023. The increase in assets includes a $58.1 million
increase in investment securities, a $45.7 million increase in
interest-earning balances due from the Federal Reserve, a $49.2
million increase in BOLI and a $29.4 million increase in net
loans.
Total assets at December 31, 2023 decreased by $455.5 million,
or 2.76%, from total assets of $16.48 billion at December 31, 2022.
The decrease in assets was primarily due to a $388.8 million
decrease in investment securities and a $176.2 million decrease in
net loans, partially offset by an increase of $64.7 million in
interest-earning balances due from the Federal Reserve and a $53.2
million increase in the cash surrender value of BOLI.
Investment Securities and BOLITotal investment
securities were $5.42 billion at December 31, 2023, an increase of
$58.1 million, or 1.08% from September 30, 2023, and a decrease of
$388.8 million, or 6.69%, from $5.81 billion at December 31,
2022.
At December 31, 2023, investment securities held-to-maturity
(“HTM”) totaled $2.46 billion, a decrease of $24.8 million, or
1.00% from September 30, 2023, and a decrease of $89.7 million, or
3.51%, from December 31, 2022.
At December 31, 2023, investment securities available-for-sale
(“AFS”) totaled $2.96 billion, inclusive of a pre-tax net
unrealized loss of $449.8 million. AFS securities increased by
$83.0 million, or 2.89% from September 30, 2023 and decreased by
$299.1 million, or 9.19%, from $3.26 billion at December 31, 2022.
Pre-tax unrealized loss declined by $178.7 million from September
30, 2023 and decreased by $50.3 million from December 31, 2022.
Combined, the AFS and HTM investments in mortgage backed
securities (“MBS”) and collateralized mortgage obligations (“CMO”)
totaled $4.36 billion or approximately 80% of the total investment
securities at December 31, 2023. Virtually all of our MBS and CMO
are issued or guaranteed by government or government sponsored
enterprises, which have the implied guarantee of the U.S.
Government. In addition, at December 31, 2023, we had $562.9
million of Government Agency securities, that represent
approximately 10.4% of the total investment securities.
Our combined AFS and HTM municipal securities totaled $493.6
million as of December 31, 2023, or 9.1% of our total investment
portfolio. These securities are located in 35 states. Our largest
concentrations of holdings by state, as a percentage of total
municipal bonds, are located in Texas at 15.89%, Minnesota at
11.28%, California at 9.58%, Ohio at 6.25%, Massachusetts at 6.15%,
and Washington at 5.80%.
At December 31, 2023, the Company had $308.7 million of Bank
Owned Life insurance (“BOLI”). The $49.2 million increase in value
of BOLI, when compared to September 30, 2023, was primarily due to
a restructuring of the Company’s life insurance policies, including
a $4.5 million write-down in value on surrender policies that was
offset by a $10.9 million enhancement to cash surrender values, as
well as additional policy purchases totaling $41 million. This
restructuring is expected to increase future returns on our BOLI
policies resulting in additional non-taxable noninterest income in
future years.
LoansTotal loans and leases, at amortized cost,
of $8.90 billion at December 31, 2023 increased by $27.3 million,
or 0.31%, from September 30, 2023. The quarter-over quarter
increase in loans included increases of $61.4 million in dairy
& livestock and agribusiness loans, $31.8 million in commercial
and industrial loans, and $3.7 million in construction loans,
partially offset by decreases of $58.6 million in commercial real
estate loans and $12.5 million in SBA loans.
Total loans and leases, at amortized cost, decreased by $174.5
million, or 1.92%, from December 31, 2022. After adjusting for PPP
loans, which declined by $6.4 million, our core loans decreased by
$168.1 million, or 1.85% from December 31, 2022. The
$168.1 million decreases included $100.4 million in commercial real
estate loans, $21.5 million in construction loans, $20.7 million in
dairy & livestock and agribusiness loans, $20.3 million in SBA
loans, $7.5 million in municipal lease financings, and $22.7
million in consumer and other loans, partially offset by an
increase of $21.2 million in commercial and industrial loans.
Asset QualityDuring the fourth quarter of 2023,
we experienced credit charge-offs of $181,000 and total recoveries
of $28,000, resulting in net charge-offs of $153,000. The allowance
for credit losses (“ACL”) totaled $86.8 million at December 31,
2023, compared to $89.0 million at September 30, 2023 and $85.1
million at December 31, 2022. The ACL was increased by $1.7 million
in 2023, including a $2.0 million provision for credit losses. At
December 31, 2023, ACL as a percentage of total loans and leases
outstanding was 0.98%. This compares to 1.00% and 0.94% at
September 30, 2023 and December 31, 2022, respectively.
Nonperforming loans, defined as nonaccrual loans, including
modified loans on nonaccrual, plus loans 90 days past due and
accruing interest, and nonperforming assets, defined as
nonperforming plus OREO, are highlighted below.
Nonperforming Assets and Delinquency Trends |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
(Dollars in
thousands) |
|
Commercial real estate |
|
$ |
15,440 |
|
|
$ |
3,655 |
|
|
$ |
2,657 |
|
|
SBA |
|
|
969 |
|
|
|
1,050 |
|
|
|
443 |
|
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Commercial and industrial |
|
|
4,509 |
|
|
|
4,672 |
|
|
|
1,320 |
|
|
Dairy & livestock and agribusiness |
|
|
60 |
|
|
|
243 |
|
|
|
477 |
|
|
SFR mortgage |
|
|
324 |
|
|
|
339 |
|
|
|
- |
|
|
Consumer and other loans |
|
|
- |
|
|
|
4 |
|
|
|
33 |
|
|
Total |
|
$ |
21,302 |
|
|
$ |
9,963 |
|
[1] |
$ |
4,930 |
|
|
% of Total loans |
|
|
0.24 |
% |
|
|
0.11 |
% |
|
|
0.05 |
% |
|
OREO |
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
21,302 |
|
|
$ |
9,963 |
|
|
$ |
4,930 |
|
|
% of
Nonperforming assets to total assets |
|
|
0.13 |
% |
|
|
0.06 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
Past
due 30-89 days (accruing) |
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
300 |
|
|
$ |
136 |
|
|
$ |
- |
|
|
SBA |
|
|
108 |
|
|
|
- |
|
|
|
556 |
|
|
Commercial and industrial |
|
|
12 |
|
|
|
- |
|
|
|
- |
|
|
Dairy & livestock and agribusiness |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
SFR mortgage |
|
|
201 |
|
|
|
- |
|
|
|
388 |
|
|
Consumer and other loans |
|
|
18 |
|
|
|
- |
|
|
|
175 |
|
|
Total |
|
$ |
639 |
|
|
$ |
136 |
|
|
$ |
1,119 |
|
|
% of Total loans |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
Classified Loans |
|
$ |
102,197 |
|
|
$ |
92,246 |
|
|
$ |
78,658 |
|
|
|
|
[1] Includes $2.6
million of nonaccrual loans past due 30-89 days. |
|
|
|
|
|
|
|
|
|
The $11.3 million increase in nonperforming loans from September
30,2023 was primarily due to one nonperforming commercial real
estate loan. Classified loans are loans that are graded
“substandard” or worse. Classified loans increased $10 million
quarter-over-quarter, primarily due to a $9.8 million increase in
classified commercial real estate loans.
Deposits & Customer Repurchase
AgreementsDeposits of $11.43 billion and customer
repurchase agreements of $271.6 million totaled $11.71 billion at
December 31, 2023. This represented a net decrease of $923.1
million compared to September 30, 2023. Deposits and customer
repurchases decreased on average from the prior quarter by $468.5
million, or 3.63%. Total deposits and customer repurchase
agreements decreased $1.7 billion, or 12.66% when compared to $13.4
billion at December 31, 2022.
Noninterest-bearing deposits were $7.21 billion at December 31,
2023, a decrease of $380.5 million, or 5.02%, when compared to
$7.59 billion at September 30, 2023. Noninterest-bearing deposits
decreased by $958.2 million, or 11.74% when compared to $8.16
billion at December 31, 2022. At December 31, 2023,
noninterest-bearing deposits were 63.03% of total deposits,
compared to 61.39% at September 30, 2023 and 63.60%
at December 31, 2022.
BorrowingsAs of December 31, 2023, total
borrowings, consisted of $1.91 billion of one-year advances from
the Federal Reserve’s Bank Term Funding Program, at an average cost
of 4.8% and $160 million of overnight Federal Home Loan Bank
advances, at an average cost of approximately 5.7%. The Bank Term
Funding Program advances include maturities of approximately
$700,000 in May and $1.2 million in December of 2024.
CapitalThe Company’s total equity was $2.08
billion at December 31, 2023. This represented an overall increase
of $129.5 million from total equity of $1.95 billion at December
31, 2022. Increases to equity included $221.4 million in net
earnings and a $31.2 million increase in other comprehensive
income, that were partially offset by $111.6 million in cash
dividends. We engaged in no stock repurchases during the second,
third and fourth quarters of 2023. In the first quarter of 2023, we
repurchased, under our 10b5-1 stock repurchase plan, 791,800 shares
of common stock, at an average repurchase price of $23.43, totaling
$18.5 million. This 10b5-1 plan expired on March 2, 2023. Our
tangible book value per share at December 31, 2023 was $9.31.
Our capital ratios under the revised capital framework referred
to as Basel III remain well-above regulatory standards.
|
|
|
|
CVB Financial Corp. Consolidated |
|
Capital Ratios |
|
Minimum Required Plus Capital Conservation
Buffer |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0% |
|
10.3% |
|
10.0% |
|
9.5% |
|
Common
equity Tier 1 capital ratio |
|
7.0% |
|
14.6% |
|
14.4% |
|
13.5% |
|
Tier 1
risk-based capital ratio |
|
8.5% |
|
14.6% |
|
14.4% |
|
13.5% |
|
Total
risk-based capital ratio |
|
10.5% |
|
15.5% |
|
15.3% |
|
14.4% |
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
8.5% |
|
7.7% |
|
7.4% |
|
|
|
|
|
|
|
|
|
|
|
CitizensTrustAs of December 31, 2023
CitizensTrust had approximately $4.0 billion in assets under
management and administration, including $2.81 billion in assets
under management. Revenues were $3.1 million for the fourth quarter
of 2023 and $12.6 million for the year ended December 31, 2023,
compared to $2.9 million and $11.5 million, respectively, for the
same periods of 2022. CitizensTrust provides trust, investment and
brokerage related services, as well as financial, estate and
business succession planning.
Corporate 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 three
trust office locations serving California.
Shares of CVB Financial Corp. common stock are listed on the
NASDAQ under the ticker symbol “CVBF”. For investor information on
CVB Financial Corp., visit our Citizens Business Bank website at
www.cbbank.com and click on the “Investors” tab.
Conference Call
Management will hold a conference call at 7:30 a.m. PST/10:30
a.m. EST on Thursday, January 25, 2024 to discuss the Company’s
fourth quarter and year-ended 2023 financial results. The
conference call can be accessed live by registering at:
https://register.vevent.com/register/BIcc59d6a452a8423c98659899447afe0e
The conference call will also be simultaneously webcast over the
Internet; please visit our Citizens Business Bank website at
www.cbbank.com and click on the “Investors” tab to access the call
from the site. Please access the website 15 minutes prior to the
call to download any necessary audio software. This webcast will be
recorded and available for replay on the Company’s website
approximately two hours after the conclusion of the conference call
and will be available on the website for approximately 12
months.
Safe HarborCertain statements set forth herein
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as
“will likely result”, “aims”, “anticipates”, “believes”, “could”,
“estimates”, “expects”, “hopes”, “intends”, “may”, “plans”,
“projects”, “seeks”, “should”, “will,” “strategy”, “possibility”,
and variations of these words and similar expressions help to
identify these forward-looking statements, which involve risks and
uncertainties that could cause actual results or performance to
differ materially from those projected. These forward-looking
statements are based on management’s current expectations and
beliefs concerning future developments and their potential effects
on the Company including, without limitation, plans, strategies,
goals and statements about the Company’s outlook regarding revenue
and asset growth, financial performance and profitability, capital
and liquidity levels, loan and deposit levels, growth and
retention, yields and returns, loan diversification and credit
management, stockholder value creation, tax rates, the impact of
economic developments, and the impact of acquisitions we have made
or may make. Such statements involve inherent risks and
uncertainties, many of which are difficult to predict and are
generally beyond the control of the Company, and there can be no
assurance that future developments affecting the Company will be
the same as those anticipated by management. The Company cautions
readers that a number of important factors, in addition to those
set forth below, could cause actual results to differ materially
from those expressed in, or implied or projected by, such
forward-looking statements.
General risks and uncertainties include, but are not limited to,
the following: the strength of the United States economy in general
and the strength of the local economies in which we conduct
business; the effects of, and changes in, trade, monetary, and
fiscal policies and laws, including interest rate policies of the
Board of Governors of the Federal Reserve System;
inflation/deflation, interest rate, market and monetary
fluctuations; the effect of acquisitions we have made or may make,
including, without limitation, the failure to obtain the necessary
regulatory approvals, the failure to achieve the expected revenue
growth and/or expense savings from such acquisitions, and/or the
failure to effectively integrate an acquisition target and key
personnel into our operations; the timely development of
competitive products and services and the acceptance of these
products and services by new and existing customers; the impact of
changes in financial services policies, laws, and regulations,
including those concerning banking, taxes, securities, and
insurance, and the application thereof by regulatory agencies; the
effectiveness of our risk management framework and quantitative
models; changes in the level of our nonperforming assets and
charge-offs; the transition away from USD LIBOR and uncertainties
regarding potential alternative reference rates, including SOFR;
the effect of changes in accounting policies and practices or
accounting standards, as may be adopted from time-to-time by bank
regulatory agencies, the U.S. Securities and Exchange Commission
(“SEC”), the Public Company Accounting Oversight Board, the
Financial Accounting Standards Board or other accounting standards
setters; possible credit related impairments or declines in the
fair value of loans and securities held by us; possible impairment
charges to goodwill on our balance sheet; changes in customer
spending, borrowing, and savings habits; the effects of our lack of
a diversified loan portfolio, including the risks of geographic and
industry concentrations; periodic fluctuations in commercial or
residential real estate prices or values; our ability to attract or
retain deposits or to access government or private lending
facilities and other sources of liquidity; the possibility that we
may reduce or discontinue the payment of dividends on our common
stock; changes in the financial performance and/or condition of our
borrowers; changes in the competitive environment among financial
and bank holding companies and other financial service providers;
technological changes in banking and financial services;
geopolitical conditions, including acts or threats of terrorism,
actions taken by the United States or other governments in response
to acts or threats of terrorism, and/or military conflicts, which
could impact business and economic conditions in the United States
and abroad; catastrophic events or natural disasters, including
earthquakes, drought, climate change or extreme weather events that
may affect our assets, communications or computer services,
customers, employees or third party vendors; public health crises
and pandemics, and their effects on the economic and business
environments in which we operate, including on our asset credit
quality, business operations, and employees, as well as the impact
on general economic and financial market conditions; cybersecurity
threats and the costs of defending against them, including the
costs of compliance with legislation or regulations to combat
cybersecurity threats; our ability to recruit and retain key
executives, board members and other employees, and our ability to
comply with federal and state in employment laws and regulations;
ongoing or unanticipated regulatory or legal proceedings or
outcomes; and our ability to manage the risks involved in the
foregoing. Additional factors that could cause actual results to
differ materially from those expressed in the forward-looking
statements are discussed in the Company's 2022 Annual Report on
Form 10-K filed with the SEC and available at the SEC’s Internet
site (http://www.sec.gov).
The Company does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date
of such statements, except as required by law. Any statements about
future operating results, such as those concerning accretion and
dilution to the Company’s earnings or shareholders, are for
illustrative purposes only, are not forecasts, and actual results
may differ.
Non-GAAP Financial Measures — Certain financial
information provided in this earnings release has not been prepared
in accordance with U.S. generally accepted accounting principles
(“GAAP”) and is presented on a non-GAAP basis. Investors and
analysts should refer to the reconciliations included in this
earnings release and should consider the Company’s non-GAAP
measures in addition to, not as a substitute for or as superior to,
measures prepared in accordance with GAAP. These measures may or
may not be comparable to similarly titled measures used by other
companies.
Contact: |
David A. Brager |
|
President and Chief Executive Officer |
|
(909) 980-4030 |
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
Cash and due from banks |
|
$ |
171,396 |
|
|
$ |
176,488 |
|
|
$ |
158,236 |
|
Interest-earning balances due from Federal Reserve |
|
|
109,889 |
|
|
|
64,207 |
|
|
|
45,225 |
|
Total cash and cash equivalents |
|
|
281,285 |
|
|
|
240,695 |
|
|
|
203,461 |
|
Interest-earning balances due from depository institutions |
|
|
8,216 |
|
|
|
4,108 |
|
|
|
9,553 |
|
Investment securities available-for-sale |
|
|
2,956,125 |
|
|
|
2,873,163 |
|
|
|
3,255,211 |
|
Investment securities held-to-maturity |
|
|
2,464,610 |
|
|
|
2,489,441 |
|
|
|
2,554,301 |
|
Total investment securities |
|
|
5,420,735 |
|
|
|
5,362,604 |
|
|
|
5,809,512 |
|
Investment in stock of Federal Home Loan Bank (FHLB) |
|
|
18,012 |
|
|
|
18,012 |
|
|
|
27,627 |
|
Loans and lease finance receivables |
|
|
8,904,910 |
|
|
|
8,877,632 |
|
|
|
9,079,392 |
|
Allowance for credit losses |
|
|
(86,842 |
) |
|
|
(88,995 |
) |
|
|
(85,117 |
) |
Net loans and lease finance receivables |
|
|
8,818,068 |
|
|
|
8,788,637 |
|
|
|
8,994,275 |
|
Premises and equipment, net |
|
|
44,709 |
|
|
|
44,561 |
|
|
|
46,698 |
|
Bank owned life insurance (BOLI) |
|
|
308,706 |
|
|
|
259,468 |
|
|
|
255,528 |
|
Intangibles |
|
|
15,291 |
|
|
|
16,736 |
|
|
|
21,742 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
Other assets |
|
|
340,149 |
|
|
|
402,372 |
|
|
|
342,322 |
|
Total assets |
|
$ |
16,020,993 |
|
|
$ |
15,903,015 |
|
|
$ |
16,476,540 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,206,175 |
|
|
$ |
7,586,649 |
|
|
$ |
8,164,364 |
|
Investment checking |
|
|
552,408 |
|
|
|
560,223 |
|
|
|
723,870 |
|
Savings and money market |
|
|
3,278,664 |
|
|
|
3,906,187 |
|
|
|
3,653,385 |
|
Time deposits |
|
|
396,395 |
|
|
|
305,727 |
|
|
|
294,626 |
|
Total deposits |
|
|
11,433,642 |
|
|
|
12,358,786 |
|
|
|
12,836,245 |
|
Customer repurchase agreements |
|
|
271,642 |
|
|
|
269,552 |
|
|
|
565,431 |
|
Other borrowings |
|
|
2,070,000 |
|
|
|
1,120,000 |
|
|
|
995,000 |
|
Other liabilities |
|
|
167,737 |
|
|
|
203,276 |
|
|
|
131,347 |
|
Total liabilities |
|
|
13,943,021 |
|
|
|
13,951,614 |
|
|
|
14,528,023 |
|
Stockholders' Equity |
|
|
|
|
|
|
Stockholders' equity |
|
|
2,401,541 |
|
|
|
2,378,539 |
|
|
|
2,303,313 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(323,569 |
) |
|
|
(427,138 |
) |
|
|
(354,796 |
) |
Total stockholders' equity |
|
|
2,077,972 |
|
|
|
1,951,401 |
|
|
|
1,948,517 |
|
Total liabilities and stockholders' equity |
|
$ |
16,020,993 |
|
|
$ |
15,903,015 |
|
|
$ |
16,476,540 |
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED AVERAGE BALANCE SHEETS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
155,556 |
|
|
$ |
176,133 |
|
|
$ |
180,661 |
|
|
$ |
171,265 |
|
|
$ |
182,701 |
|
Interest-earning balances due from Federal Reserve |
|
|
437,554 |
|
|
|
467,873 |
|
|
|
125,350 |
|
|
|
323,881 |
|
|
|
795,753 |
|
Total cash and cash equivalents |
|
|
593,110 |
|
|
|
644,006 |
|
|
|
306,011 |
|
|
|
495,146 |
|
|
|
978,454 |
|
Interest-earning balances due from depository institutions |
|
|
6,219 |
|
|
|
5,518 |
|
|
|
8,581 |
|
|
|
7,275 |
|
|
|
8,991 |
|
Investment securities available-for-sale |
|
|
2,849,423 |
|
|
|
3,040,965 |
|
|
|
3,273,149 |
|
|
|
3,066,287 |
|
|
|
3,532,587 |
|
Investment securities held-to-maturity |
|
|
2,478,785 |
|
|
|
2,501,625 |
|
|
|
2,569,134 |
|
|
|
2,513,201 |
|
|
|
2,406,967 |
|
Total investment securities |
|
|
5,328,208 |
|
|
|
5,542,590 |
|
|
|
5,842,283 |
|
|
|
5,579,488 |
|
|
|
5,939,554 |
|
Investment in stock of FHLB |
|
|
18,012 |
|
|
|
21,560 |
|
|
|
18,291 |
|
|
|
25,078 |
|
|
|
18,309 |
|
Loans and lease finance receivables |
|
|
8,856,654 |
|
|
|
8,862,462 |
|
|
|
8,868,673 |
|
|
|
8,893,335 |
|
|
|
8,676,820 |
|
Allowance for credit losses |
|
|
(88,943 |
) |
|
|
(86,986 |
) |
|
|
(82,612 |
) |
|
|
(86,908 |
) |
|
|
(78,159 |
) |
Net loans and lease finance receivables |
|
|
8,767,711 |
|
|
|
8,775,476 |
|
|
|
8,786,061 |
|
|
|
8,806,427 |
|
|
|
8,598,661 |
|
Premises and equipment, net |
|
|
44,768 |
|
|
|
45,315 |
|
|
|
47,327 |
|
|
|
45,488 |
|
|
|
50,048 |
|
Bank owned life insurance (BOLI) |
|
|
236,055 |
|
|
|
258,485 |
|
|
|
256,216 |
|
|
|
251,989 |
|
|
|
258,779 |
|
Intangibles |
|
|
15,993 |
|
|
|
17,526 |
|
|
|
22,610 |
|
|
|
18,434 |
|
|
|
25,376 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
|
|
764,143 |
|
Other assets |
|
|
393,227 |
|
|
|
357,280 |
|
|
|
341,958 |
|
|
|
351,025 |
|
|
|
269,346 |
|
Total assets |
|
$ |
16,169,125 |
|
|
$ |
16,433,578 |
|
|
$ |
16,395,160 |
|
|
$ |
16,346,172 |
|
|
$ |
16,911,661 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,450,856 |
|
|
$ |
7,813,120 |
|
|
$ |
8,702,899 |
|
|
$ |
7,793,336 |
|
|
$ |
8,839,577 |
|
Interest-bearing |
|
|
4,703,144 |
|
|
|
4,769,897 |
|
|
|
4,985,591 |
|
|
|
4,644,582 |
|
|
|
5,225,081 |
|
Total deposits |
|
|
12,154,000 |
|
|
|
12,583,017 |
|
|
|
13,688,490 |
|
|
|
12,437,918 |
|
|
|
14,064,658 |
|
Customer repurchase agreements |
|
|
301,330 |
|
|
|
340,809 |
|
|
|
518,996 |
|
|
|
421,112 |
|
|
|
573,307 |
|
Other borrowings |
|
|
1,585,272 |
|
|
|
1,318,098 |
|
|
|
161,197 |
|
|
|
1,352,099 |
|
|
|
40,655 |
|
Payable for securities purchased |
|
|
551 |
|
|
|
- |
|
|
|
6,022 |
|
|
|
158 |
|
|
|
64,801 |
|
Other liabilities |
|
|
133,822 |
|
|
|
164,624 |
|
|
|
101,472 |
|
|
|
128,003 |
|
|
|
101,777 |
|
Total liabilities |
|
|
14,174,975 |
|
|
|
14,406,548 |
|
|
|
14,476,177 |
|
|
|
14,339,290 |
|
|
|
14,845,198 |
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
2,411,269 |
|
|
|
2,383,922 |
|
|
|
2,301,770 |
|
|
|
2,370,700 |
|
|
|
2,263,627 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(417,119 |
) |
|
|
(356,892 |
) |
|
|
(382,787 |
) |
|
|
(363,818 |
) |
|
|
(197,164 |
) |
Total stockholders' equity |
|
|
1,994,150 |
|
|
|
2,027,030 |
|
|
|
1,918,983 |
|
|
|
2,006,882 |
|
|
|
2,066,463 |
|
Total liabilities and stockholders' equity |
|
$ |
16,169,125 |
|
|
$ |
16,433,578 |
|
|
$ |
16,395,160 |
|
|
$ |
16,346,172 |
|
|
$ |
16,911,661 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
2023 |
|
|
|
2022 |
Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
$ |
115,721 |
|
|
$ |
113,190 |
|
|
$ |
106,884 |
|
$ |
448,295 |
|
|
$ |
389,192 |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale |
|
|
22,170 |
|
|
|
22,441 |
|
|
|
20,091 |
|
|
83,563 |
|
|
|
68,508 |
Investment securities held-to-maturity |
|
|
13,478 |
|
|
|
13,576 |
|
|
|
13,837 |
|
|
54,750 |
|
|
|
49,048 |
Total investment income |
|
|
35,648 |
|
|
|
36,017 |
|
|
|
33,928 |
|
|
138,313 |
|
|
|
117,556 |
Dividends from FHLB stock |
|
|
431 |
|
|
|
598 |
|
|
|
305 |
|
|
1,861 |
|
|
|
1,207 |
Interest-earning deposits with other institutions |
|
|
6,278 |
|
|
|
6,422 |
|
|
|
1,001 |
|
|
17,861 |
|
|
|
6,713 |
Total interest income |
|
|
158,078 |
|
|
|
156,227 |
|
|
|
142,118 |
|
|
606,330 |
|
|
|
514,668 |
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
18,888 |
|
|
|
16,517 |
|
|
|
2,774 |
|
|
51,535 |
|
|
|
6,830 |
Borrowings and junior subordinated debentures |
|
|
19,834 |
|
|
|
16,339 |
|
|
|
1,949 |
|
|
66,805 |
|
|
|
2,325 |
Total interest expense |
|
|
38,722 |
|
|
|
32,856 |
|
|
|
4,723 |
|
|
118,340 |
|
|
|
9,155 |
Net interest income before provision for (recapture of) credit
losses |
|
|
119,356 |
|
|
|
123,371 |
|
|
|
137,395 |
|
|
487,990 |
|
|
|
505,513 |
Provision
for (recapture of) credit losses |
|
|
(2,000 |
) |
|
|
2,000 |
|
|
|
2,500 |
|
|
2,000 |
|
|
|
10,600 |
Net interest income after provision for (recapture of)
credit losses |
|
|
121,356 |
|
|
|
121,371 |
|
|
|
134,895 |
|
|
485,990 |
|
|
|
494,913 |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
4,975 |
|
|
|
5,062 |
|
|
|
5,757 |
|
|
20,219 |
|
|
|
21,382 |
Trust and investment services |
|
|
3,081 |
|
|
|
3,246 |
|
|
|
2,867 |
|
|
12,556 |
|
|
|
11,518 |
Other |
|
|
11,107 |
|
|
|
6,001 |
|
|
|
3,841 |
|
|
26,555 |
|
|
|
17,089 |
Total noninterest income |
|
|
19,163 |
|
|
|
14,309 |
|
|
|
12,465 |
|
|
59,330 |
|
|
|
49,989 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
35,652 |
|
|
|
34,744 |
|
|
|
34,154 |
|
|
139,191 |
|
|
|
131,596 |
Occupancy and equipment |
|
|
5,524 |
|
|
|
5,618 |
|
|
|
5,820 |
|
|
22,109 |
|
|
|
22,737 |
Professional services |
|
|
2,707 |
|
|
|
2,117 |
|
|
|
2,574 |
|
|
9,082 |
|
|
|
9,362 |
Computer software expense |
|
|
3,679 |
|
|
|
3,648 |
|
|
|
3,362 |
|
|
14,051 |
|
|
|
13,503 |
Marketing and promotion |
|
|
2,092 |
|
|
|
1,628 |
|
|
|
1,712 |
|
|
6,756 |
|
|
|
6,296 |
Amortization of intangible assets |
|
|
1,446 |
|
|
|
1,567 |
|
|
|
1,724 |
|
|
6,452 |
|
|
|
7,566 |
(Recapture of) provision for unfunded loan commitments |
|
|
(500 |
) |
|
|
(900 |
) |
|
|
- |
|
|
(500 |
) |
|
|
- |
Acquisition related expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
6,013 |
Other |
|
|
15,330 |
|
|
|
6,636 |
|
|
|
5,073 |
|
|
32,745 |
|
|
|
19,482 |
Total noninterest expense |
|
|
65,930 |
|
|
|
55,058 |
|
|
|
54,419 |
|
|
229,886 |
|
|
|
216,555 |
Earnings
before income taxes |
|
|
74,589 |
|
|
|
80,622 |
|
|
|
92,941 |
|
|
315,434 |
|
|
|
328,347 |
Income
taxes |
|
|
26,081 |
|
|
|
22,735 |
|
|
|
26,773 |
|
|
93,999 |
|
|
|
92,922 |
Net earnings |
|
$ |
48,508 |
|
|
$ |
57,887 |
|
|
$ |
66,168 |
|
$ |
221,435 |
|
|
$ |
235,425 |
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.35 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
$ |
1.59 |
|
|
$ |
1.67 |
Diluted
earnings per common share |
|
$ |
0.35 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
$ |
1.59 |
|
|
$ |
1.67 |
Cash
dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
$ |
0.80 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
2023 |
|
|
|
2022 |
|
Interest income - tax equivalent (TE) |
|
$ |
158,620 |
|
|
$ |
156,771 |
|
|
$ |
142,646 |
|
|
$ |
608,508 |
|
|
$ |
516,409 |
|
Interest
expense |
|
|
38,722 |
|
|
|
32,856 |
|
|
|
4,723 |
|
|
|
118,340 |
|
|
|
9,155 |
|
Net interest
income - (TE) |
|
$ |
119,898 |
|
|
$ |
123,915 |
|
|
$ |
137,923 |
|
|
$ |
490,168 |
|
|
$ |
507,254 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets, annualized |
|
|
1.19 |
% |
|
|
1.40 |
% |
|
|
1.60 |
% |
|
|
1.35 |
% |
|
|
1.39 |
% |
Return on
average equity, annualized |
|
|
9.65 |
% |
|
|
11.33 |
% |
|
|
13.68 |
% |
|
|
11.03 |
% |
|
|
11.39 |
% |
Efficiency
ratio [1] |
|
|
47.60 |
% |
|
|
39.99 |
% |
|
|
36.31 |
% |
|
|
42.00 |
% |
|
|
38.98 |
% |
Noninterest
expense to average assets, annualized |
|
|
1.62 |
% |
|
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.41 |
% |
|
|
1.28 |
% |
Yield on
average loans |
|
|
5.18 |
% |
|
|
5.07 |
% |
|
|
4.78 |
% |
|
|
5.04 |
% |
|
|
4.49 |
% |
Yield on
average earning assets (TE) |
|
|
4.30 |
% |
|
|
4.18 |
% |
|
|
3.82 |
% |
|
|
4.10 |
% |
|
|
3.36 |
% |
Cost of
deposits |
|
|
0.62 |
% |
|
|
0.52 |
% |
|
|
0.08 |
% |
|
|
0.41 |
% |
|
|
0.05 |
% |
Cost of
deposits and customer repurchase agreements |
|
|
0.61 |
% |
|
|
0.51 |
% |
|
|
0.08 |
% |
|
|
0.41 |
% |
|
|
0.05 |
% |
Cost of
funds |
|
|
1.09 |
% |
|
|
0.92 |
% |
|
|
0.13 |
% |
|
|
0.83 |
% |
|
|
0.06 |
% |
Net interest
margin (TE) |
|
|
3.26 |
% |
|
|
3.31 |
% |
|
|
3.69 |
% |
|
|
3.31 |
% |
|
|
3.30 |
% |
[1] Noninterest expense divided by net interest income before
provision for credit losses plus noninterest
income. |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity Ratio (TCE) [2] |
|
|
|
|
|
|
|
|
|
|
CVB
Financial Corp. Consolidated |
|
|
8.51 |
% |
|
|
7.73 |
% |
|
|
7.40 |
% |
|
|
|
|
Citizens
Business Bank |
|
|
8.40 |
% |
|
|
7.63 |
% |
|
|
7.29 |
% |
|
|
|
|
[2] (Capital - [GW+Intangibles])/(Total Assets -
[GW+Intangibles]) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
138,368,496 |
|
|
|
138,345,000 |
|
|
|
138,890,705 |
|
|
|
138,332,598 |
|
|
|
139,652,019 |
|
Diluted |
|
|
138,569,762 |
|
|
|
138,480,633 |
|
|
|
139,438,103 |
|
|
|
138,461,507 |
|
|
|
140,012,135 |
|
Dividends
declared |
|
$ |
27,945 |
|
|
$ |
27,901 |
|
|
$ |
27,995 |
|
|
$ |
111,640 |
|
|
$ |
108,146 |
|
Dividend
payout ratio [3] |
|
|
57.61 |
% |
|
|
48.20 |
% |
|
|
42.31 |
% |
|
|
50.42 |
% |
|
|
45.94 |
% |
[3] Dividends declared on common stock divided by net
earnings. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares outstanding - (end of period) |
|
|
139,344,981 |
|
|
|
139,337,699 |
|
|
|
139,818,703 |
|
|
|
|
|
Book value
per share |
|
$ |
14.91 |
|
|
$ |
14.00 |
|
|
$ |
13.94 |
|
|
|
|
|
Tangible
book value per share |
|
$ |
9.31 |
|
|
$ |
8.39 |
|
|
$ |
8.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans |
|
$ |
21,302 |
|
|
$ |
9,963 |
|
|
$ |
4,930 |
|
|
|
|
|
Total
nonperforming assets |
|
$ |
21,302 |
|
|
$ |
9,963 |
|
|
$ |
4,930 |
|
|
|
|
|
Modified
loans/performing troubled debt restructured loans (TDR) [4] |
|
$ |
9,460 |
|
|
$ |
7,304 |
|
|
$ |
7,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[4] Effective January 1, 2023, performing and nonperforming TDRs
are reflected as Loan Modifications to borrowers experiencing
financial difficulty. |
|
|
|
|
|
|
|
|
|
|
|
Percentage
of nonperforming assets to total loans outstanding and OREO |
|
|
0.24 |
% |
|
|
0.11 |
% |
|
|
0.05 |
% |
|
|
|
|
Percentage
of nonperforming assets to total assets |
|
|
0.13 |
% |
|
|
0.06 |
% |
|
|
0.03 |
% |
|
|
|
|
Allowance
for credit losses to nonperforming assets |
|
|
407.67 |
% |
|
|
893.26 |
% |
|
|
1726.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
2023 |
|
|
|
2022 |
|
Allowance
for credit losses: |
|
|
|
|
|
|
|
|
|
|
Beginning
balance |
|
$ |
88,995 |
|
|
$ |
86,967 |
|
|
$ |
82,601 |
|
|
$ |
85,117 |
|
|
$ |
65,019 |
|
Suncrest FV PCD loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,605 |
|
Total charge-offs |
|
|
(181 |
) |
|
|
(26 |
) |
|
|
(127 |
) |
|
|
(405 |
) |
|
|
(197 |
) |
Total recoveries on loans previously charged-off |
|
|
28 |
|
|
|
54 |
|
|
|
143 |
|
|
|
130 |
|
|
|
1,090 |
|
Net
recoveries (charge-offs) |
|
|
(153 |
) |
|
|
28 |
|
|
|
16 |
|
|
|
(275 |
) |
|
|
893 |
|
Provision
for (recapture of) credit losses |
|
|
(2,000 |
) |
|
|
2,000 |
|
|
|
2,500 |
|
|
|
2,000 |
|
|
|
10,600 |
|
Allowance
for credit losses at end of period |
|
$ |
86,842 |
|
|
$ |
88,995 |
|
|
$ |
85,117 |
|
|
$ |
86,842 |
|
|
$ |
85,117 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
recoveries (charge-offs) to average loans |
|
|
-0.002 |
% |
|
|
0.000 |
% |
|
|
0.000 |
% |
|
|
-0.003 |
% |
|
|
0.010 |
% |
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
Allowance For Credit Losses |
|
Allowance as a % of Total Loans by Respective Loan
Type |
|
Allowance For Credit Losses |
|
Allowance as a % of Total Loans by Respective Loan
Type |
|
Allowance For Credit Losses |
|
Allowance as a % of Total Loans by Respective Loan
Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
69.5 |
|
|
1.02 |
% |
|
|
$ |
70.9 |
|
|
1.04 |
% |
|
|
$ |
64.8 |
|
|
0.94 |
% |
|
|
Construction |
|
|
1.3 |
|
|
1.91 |
% |
|
|
|
1.0 |
|
|
1.59 |
% |
|
|
|
1.7 |
|
|
1.93 |
% |
|
|
SBA |
|
|
2.7 |
|
|
0.99 |
% |
|
|
|
3.0 |
|
|
1.08 |
% |
|
|
|
2.8 |
|
|
0.97 |
% |
|
|
Commercial
and industrial |
|
|
9.1 |
|
|
0.94 |
% |
|
|
|
9.3 |
|
|
0.99 |
% |
|
|
|
10.2 |
|
|
1.08 |
% |
|
|
Dairy &
livestock and agribusiness |
|
|
3.1 |
|
|
0.75 |
% |
|
|
|
3.6 |
|
|
1.01 |
% |
|
|
|
4.4 |
|
|
1.01 |
% |
|
|
Municipal
lease finance receivables |
|
|
0.2 |
|
|
0.29 |
% |
|
|
|
0.3 |
|
|
0.33 |
% |
|
|
|
0.3 |
|
|
0.36 |
% |
|
|
SFR
mortgage |
|
|
0.5 |
|
|
0.20 |
% |
|
|
|
0.5 |
|
|
0.20 |
% |
|
|
|
0.4 |
|
|
0.14 |
% |
|
|
Consumer and
other loans |
|
|
0.4 |
|
|
0.85 |
% |
|
|
|
0.4 |
|
|
0.82 |
% |
|
|
|
0.5 |
|
|
0.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
86.8 |
|
|
0.98 |
% |
|
|
$ |
89.0 |
|
|
1.00 |
% |
|
|
$ |
85.1 |
|
|
0.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
|
SELECTED
FINANCIAL HIGHLIGHTS |
|
(Unaudited) |
|
(Dollars in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Common Stock Price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Quarter End |
|
High |
|
Low |
|
High |
|
Low |
|
High |
|
Low |
|
March 31, |
|
$ |
25.98 |
|
$ |
16.34 |
|
|
$ |
24.37 |
|
|
$ |
21.36 |
|
|
$ |
25.00 |
|
|
$ |
19.15 |
|
|
June
30, |
|
$ |
16.89 |
|
$ |
10.66 |
|
|
$ |
25.59 |
|
|
$ |
22.37 |
|
|
$ |
22.98 |
|
|
$ |
20.50 |
|
|
September
30, |
|
$ |
19.66 |
|
$ |
12.89 |
|
|
$ |
28.14 |
|
|
$ |
22.63 |
|
|
$ |
20.86 |
|
|
$ |
18.72 |
|
|
December
31, |
|
$ |
21.77 |
|
$ |
14.62 |
|
|
$ |
29.25 |
|
|
$ |
25.26 |
|
|
$ |
21.85 |
|
|
$ |
19.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
|
|
$ |
115,721 |
|
|
$ |
113,190 |
|
|
$ |
110,990 |
|
|
$ |
108,394 |
|
|
$ |
106,884 |
|
|
Investment securities and other |
|
|
|
|
42,357 |
|
|
|
43,037 |
|
|
|
38,249 |
|
|
|
34,392 |
|
|
|
35,234 |
|
|
Total interest income |
|
|
|
|
158,078 |
|
|
|
156,227 |
|
|
|
149,239 |
|
|
|
142,786 |
|
|
|
142,118 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
18,888 |
|
|
|
16,517 |
|
|
|
10,765 |
|
|
|
5,365 |
|
|
|
2,774 |
|
|
Other borrowings |
|
|
|
|
19,834 |
|
|
|
16,339 |
|
|
|
18,939 |
|
|
|
11,693 |
|
|
|
1,949 |
|
|
Total interest expense |
|
|
|
|
38,722 |
|
|
|
32,856 |
|
|
|
29,704 |
|
|
|
17,058 |
|
|
|
4,723 |
|
|
Net interest income before (recapture of) |
|
|
|
|
|
|
|
|
|
|
|
provision for credit losses |
|
|
|
|
119,356 |
|
|
|
123,371 |
|
|
|
119,535 |
|
|
|
125,728 |
|
|
|
137,395 |
|
|
(Recapture of) provision for credit losses |
|
|
(2,000 |
) |
|
|
2,000 |
|
|
|
500 |
|
|
|
1,500 |
|
|
|
2,500 |
|
|
Net interest income after (recapture of) |
|
|
|
|
|
|
|
|
|
|
|
provision for credit losses |
|
|
|
|
121,356 |
|
|
|
121,371 |
|
|
|
119,035 |
|
|
|
124,228 |
|
|
|
134,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
19,163 |
|
|
|
14,309 |
|
|
|
12,656 |
|
|
|
13,202 |
|
|
|
12,465 |
|
|
Noninterest
expense |
|
|
|
|
65,930 |
|
|
|
55,058 |
|
|
|
54,017 |
|
|
|
54,881 |
|
|
|
54,419 |
|
|
Earnings
before income taxes |
|
|
|
|
74,589 |
|
|
|
80,622 |
|
|
|
77,674 |
|
|
|
82,549 |
|
|
|
92,941 |
|
|
Income
taxes |
|
|
|
|
26,081 |
|
|
|
22,735 |
|
|
|
21,904 |
|
|
|
23,279 |
|
|
|
26,773 |
|
|
Net earnings |
|
|
|
$ |
48,508 |
|
|
$ |
57,887 |
|
|
$ |
55,770 |
|
|
$ |
59,270 |
|
|
$ |
66,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective
tax rate |
|
|
|
|
34.97 |
% |
|
|
28.20 |
% |
|
|
28.20 |
% |
|
|
28.20 |
% |
|
|
28.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
$ |
0.35 |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
Diluted earnings per common share |
|
$ |
0.35 |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared |
|
|
|
$ |
27,945 |
|
|
$ |
27,901 |
|
|
$ |
27,787 |
|
|
$ |
28,007 |
|
|
$ |
27,995 |
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
by Type |
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate |
|
$ |
6,784,505 |
|
|
$ |
6,843,059 |
|
|
$ |
6,904,095 |
|
|
$ |
6,950,302 |
|
|
$ |
6,884,948 |
|
Construction |
|
|
66,734 |
|
|
|
63,022 |
|
|
|
68,836 |
|
|
|
83,992 |
|
|
|
88,271 |
|
SBA |
|
|
270,619 |
|
|
|
283,124 |
|
|
|
278,904 |
|
|
|
283,464 |
|
|
|
290,908 |
|
SBA -
PPP |
|
|
2,736 |
|
|
|
3,233 |
|
|
|
5,017 |
|
|
|
5,824 |
|
|
|
9,087 |
|
Commercial
and industrial |
|
|
969,895 |
|
|
|
938,064 |
|
|
|
956,242 |
|
|
|
898,167 |
|
|
|
948,683 |
|
Dairy &
livestock and agribusiness |
|
|
412,891 |
|
|
|
351,463 |
|
|
|
298,247 |
|
|
|
307,820 |
|
|
|
433,564 |
|
Municipal
lease finance receivables |
|
|
73,590 |
|
|
|
75,621 |
|
|
|
77,867 |
|
|
|
79,552 |
|
|
|
81,126 |
|
SFR
mortgage |
|
|
269,868 |
|
|
|
268,171 |
|
|
|
263,201 |
|
|
|
262,324 |
|
|
|
266,024 |
|
Consumer and
other loans |
|
|
54,072 |
|
|
|
51,875 |
|
|
|
54,988 |
|
|
|
71,044 |
|
|
|
76,781 |
|
Gross loans, at amortized cost |
|
|
8,904,910 |
|
|
|
8,877,632 |
|
|
|
8,907,397 |
|
|
|
8,942,489 |
|
|
|
9,079,392 |
|
Allowance for credit losses |
|
|
(86,842 |
) |
|
|
(88,995 |
) |
|
|
(86,967 |
) |
|
|
(86,540 |
) |
|
|
(85,117 |
) |
Net loans |
|
$ |
8,818,068 |
|
|
$ |
8,788,637 |
|
|
$ |
8,820,430 |
|
|
$ |
8,855,949 |
|
|
$ |
8,994,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Composition by Type and Customer Repurchase
Agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,206,175 |
|
|
$ |
7,586,649 |
|
|
$ |
7,878,810 |
|
|
$ |
7,844,329 |
|
|
$ |
8,164,364 |
|
Investment
checking |
|
|
552,408 |
|
|
|
560,223 |
|
|
|
574,817 |
|
|
|
668,947 |
|
|
|
723,870 |
|
Savings and
money market |
|
|
3,278,664 |
|
|
|
3,906,187 |
|
|
|
3,627,858 |
|
|
|
3,474,651 |
|
|
|
3,653,385 |
|
Time
deposits |
|
|
396,395 |
|
|
|
305,727 |
|
|
|
316,036 |
|
|
|
283,943 |
|
|
|
294,626 |
|
Total deposits |
|
|
11,433,642 |
|
|
|
12,358,786 |
|
|
|
12,397,521 |
|
|
|
12,271,870 |
|
|
|
12,836,245 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
|
271,642 |
|
|
|
269,552 |
|
|
|
452,373 |
|
|
|
490,235 |
|
|
|
565,431 |
|
Total deposits and customer repurchase agreements |
|
$ |
11,705,284 |
|
|
$ |
12,628,338 |
|
|
$ |
12,849,894 |
|
|
$ |
12,762,105 |
|
|
$ |
13,401,676 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED
FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets and Delinquency Trends |
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
15,440 |
|
|
$ |
3,655 |
|
|
$ |
3,159 |
|
|
$ |
2,634 |
|
|
$ |
2,657 |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
969 |
|
|
|
1,050 |
|
|
|
629 |
|
|
|
702 |
|
|
|
443 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
4,509 |
|
|
|
4,672 |
|
|
|
2,039 |
|
|
|
2,049 |
|
|
|
1,320 |
|
Dairy & livestock and agribusiness |
|
|
60 |
|
|
|
243 |
|
|
|
273 |
|
|
|
406 |
|
|
|
477 |
|
SFR mortgage |
|
|
324 |
|
|
|
339 |
|
|
|
354 |
|
|
|
384 |
|
|
|
- |
|
Consumer and other loans |
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
- |
|
|
|
33 |
|
Total |
|
$ |
21,302 |
|
|
$ |
9,963 |
|
[1] |
$ |
6,454 |
|
|
$ |
6,175 |
|
|
$ |
4,930 |
|
% of Total loans |
|
|
0.24 |
% |
|
|
0.11 |
% |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
Past
due 30-89 days (accruing): |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
300 |
|
|
$ |
136 |
|
|
$ |
532 |
|
|
$ |
425 |
|
|
$ |
- |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
108 |
|
|
|
- |
|
|
|
- |
|
|
|
575 |
|
|
|
556 |
|
Commercial and industrial |
|
|
12 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
|
- |
|
|
|
- |
|
|
|
555 |
|
|
|
183 |
|
|
|
- |
|
SFR mortgage |
|
|
201 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
388 |
|
Consumer and other loans |
|
|
18 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
175 |
|
Total |
|
$ |
639 |
|
|
$ |
136 |
|
|
$ |
1,087 |
|
|
$ |
1,183 |
|
|
$ |
1,119 |
|
% of Total loans |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
OREO: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Total nonperforming, past due, and OREO |
|
$ |
21,941 |
|
|
$ |
10,099 |
|
|
$ |
7,541 |
|
|
$ |
7,358 |
|
|
$ |
6,049 |
|
% of Total loans |
|
|
0.25 |
% |
|
|
0.11 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
[1] Includes $2.6
million of nonaccrual loans past due 30-89
days. |
|
|
|
|
|
|
|
|
|
|
|
|
CVB
FINANCIAL CORP. AND SUBSIDIARIES |
|
SELECTED
FINANCIAL HIGHLIGHTS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB Financial Corp. Consolidated |
|
Capital Ratios |
|
Minimum Required Plus Capital Conservation
Buffer |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0% |
|
10.3% |
|
10.0% |
|
9.5% |
|
Common
equity Tier 1 capital ratio |
|
7.0% |
|
14.6% |
|
14.4% |
|
13.5% |
|
Tier 1
risk-based capital ratio |
|
8.5% |
|
14.6% |
|
14.4% |
|
13.5% |
|
Total
risk-based capital ratio |
|
10.5% |
|
15.5% |
|
15.3% |
|
14.4% |
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
8.5% |
|
7.7% |
|
7.4% |
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value Reconciliations (Non-GAAP)
The tangible book value per share is a Non-GAAP disclosure. The
Company uses certain non-GAAP financial measures to provide
supplemental information regarding the Company's performance. The
following is a reconciliation of tangible book value to the Company
stockholders' equity computed in accordance with GAAP, as well as a
calculation of tangible book value per share as of December 31,
2023, September 30, 2023 and December 31, 2022.
|
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
Stockholders' equity |
|
$ |
2,077,972 |
|
$ |
1,951,401 |
|
$ |
1,948,517 |
Less: Goodwill |
|
(765,822) |
|
(765,822) |
|
(765,822) |
Less: Intangible assets |
|
(15,291) |
|
(16,736) |
|
(21,742) |
Tangible book value |
|
$ |
1,296,859 |
|
$ |
1,168,843 |
|
$ |
1,160,953 |
Common shares issued and
outstanding |
|
139,344,981 |
|
139,337,699 |
|
139,818,703 |
Tangible book value per share |
|
$ |
9.31 |
|
$ |
8.39 |
|
$ |
8.30 |
Return on Average Tangible Common Equity Reconciliations
(Non-GAAP) The return on average tangible common equity is
a non-GAAP disclosure. The Company uses certain non-GAAP financial
measures to provide supplemental information regarding the
Company's performance. The following is a reconciliation of net
income, adjusted for tax-effected amortization of intangibles, to
net income computed in accordance with GAAP; a reconciliation of
average tangible common equity to the Company's average
stockholders' equity computed in accordance with GAAP; as well as a
calculation of return on average tangible common equity.
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
48,508 |
|
$ |
57,887 |
|
$ |
66,168 |
|
$ |
221,435 |
|
$ |
235,425 |
Add: Amortization of intangible assets |
|
1,446 |
|
1,567 |
|
1,724 |
|
6,452 |
|
7,566 |
Less: Tax effect of amortization ofintangible assets [1] |
|
(427) |
|
(463) |
|
(510) |
|
(1,907) |
|
(2,237) |
Tangible net income |
|
$ |
49,527 |
|
$ |
58,991 |
|
$ |
67,382 |
|
$ |
225,980 |
|
$ |
240,754 |
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity |
|
$ |
1,994,150 |
|
$ |
2,027,030 |
|
$ |
1,918,983 |
|
$ |
2,006,882 |
|
$ |
2,066,463 |
Less: Average goodwill |
|
(765,822) |
|
(765,822) |
|
(765,822) |
|
(765,822) |
|
(764,143) |
Less: Average intangible assets |
|
(15,993) |
|
(17,526) |
|
(22,610) |
|
(18,434) |
|
(25,376) |
Average tangible common equity |
|
$ |
1,212,335 |
|
$ |
1,243,682 |
|
$ |
1,130,551 |
|
$ |
1,222,626 |
|
$ |
1,276,944 |
|
|
|
|
|
|
|
|
|
|
|
Return on average equity,
annualized [2] |
|
9.65% |
|
11.33% |
|
13.68% |
|
11.03% |
|
11.39% |
Return on average tangible
common equity,annualized [2] |
|
16.21% |
|
18.82% |
|
23.65% |
|
18.48% |
|
18.85% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Tax effected at respective statutory rates. |
[2] Annualized
where applicable. |
|
|
|
|
|
|
|
|
|
|
|
CVB Financial (NASDAQ:CVBF)
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