• CVB Financial Corp. Reports Earnings for the Third Quarter 2023

    来源: Nasdaq GlobeNewswire / 25 10月 2023 15:45:42   America/Chicago

    • Net Earnings of $57.9 million, or $0.42 per share
    • Return on Average Tangible Common Equity of 18.82%
    • Return on Average Assets of 1.40%
    • Efficiency Ratio of 39.99%

    ONTARIO, Calif., Oct. 25, 2023 (GLOBE NEWSWIRE) -- 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 Income
    Net 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 Margin
    Our 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 Deposits
    On 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 HIGHLIGHTSSeptember 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 MixAvg % of Total Avg% of Total Avg % of Total
     Total investment securities$5,542,590 37.20% $5,689,60638.01% $6,033,696 39.22%
     Interest-earning deposits with other institutions 473,391 3.18%  353,6102.36%  633,152 4.12%
     Loans 8,862,462 59.48%  8,892,41359.41%  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 Income
    Noninterest 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 Expense
    Noninterest 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 Taxes
    Our 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

    Assets
    The 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 Securities
    Total 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%.

    Loans
    Total 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 Quality
    During 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 TrendsSeptember 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 Agreements
    Deposits 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 Borrowings
    As 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%.

    Capital
    The 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% 

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


    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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