CVB Financial : Statement of Condition - Q3 2024

CVBF

STATEMENT OF

CONDITION

September 30, 2024

President's Message

CVB Financial Corp. (CVBF) reported net income of $51.2 million for the quarter ended September 30, 2024, compared with $50.0 million for the second quarter of 2024. The Bank continues to execute on our strategy of banking the best small to medium sized businesses in the markets we serve. The results in the third quarter represent our 190th consecutive quarter of profitability. Our solid financial performance is also highlighted by our 140th consecutive quarter of paying cash dividends.

In August, we celebrated the 50th anniversary of our Bank. Founded in 1974 as Chino Valley Bank, Citizens Business Bank has grown to more than $15 billion in assets with 3 trust offices and over 60 banking locations throughout California. We were honored to have our Board of Directors invited by Nasdaq to ring the closing bell in celebration of 50 years of creating banking relationships by focusing on our customer and helping them achieve more for their business, their employees, and the communities they serve.

As one of the top-performing banks in the nation, we are regularly recognized by local and national organizations. The Los Angeles Business Journal showcased Citizens Business Bank in their Top Financial Institutions List 2024. Awardco, an employee recognition platform, awarded Citizens Business Bank as the 2024 Best Employee Engagement Winner. Some of the factors considered in the Awardco recognition were a 97% participation rate in our annual engagement survey and a 150+% increase in associates participating in quarterly wellness programs.

CitizensTrust, our wealth management division that provides trust, investment, and brokerage-related services, as well as financial, estate, and business succession planning, had approximately $4.7 billion in assets under management and administration, including $3.3 billion in assets under management, at quarter end.

Shares of CVB Financial Corp. common stock are listed on Nasdaq under the ticker symbol "CVBF". If you are new to CVB Financial Corp. and would like more information about Citizens Business Bank, our principal financial services subsidiary, please visit us on our website at cbbank.com. Additional information about CVB Financial Corp. is available on our Citizens Business Bank website under the "Investors" tab.

On behalf of our Board of Directors and our hard-working associates, we want to thank our customers for their continued loyalty and support.

President & Chief Executive Officer

CVB Financial Corp., Citizens Business Bank

Board of Directors

Hal W. Oswalt

George A. Borba

Chairman

Vice Chairman

David A. Brager

Jane Olvera Majors

President and CEO

Director

Stephen A. Del Guercio

Raymond V. O'Brien III

Director

Director

Anna Kan

Kimberly Sheehy

Director

Director

Leadership Team

David A. Brager

E. Allen Nicholson

President and CEO

EVP, Chief Financial Officer

David C. Harvey

David F. Farnsworth

EVP, Chief Operating Officer

EVP, Chief Credit Officer

Richard H. Wohl

R. Daniel Banis

EVP, General Counsel

EVP, CitizensTrust

Yamynn De Angelis

Ted J. Dondanville

EVP, Chief Risk Officer

EVP, Banking Division

Hector G. Gutierrez, Esq.

Joyce Y. Kwon

EVP, Deputy Chief Credit Officer

EVP, Director of Human Resources

Daniel Limon

Susan M. Mlot

EVP, Specialty Lending Group

EVP, Head of Operations

Timothy B. Noone

LaVon M. Short

EVP, Specialty Banking

EVP, Director of Treasury

G. Larry Zivelonghi

Management and Marketing

Jeffrey S. Boyer

EVP, Dairy & Livestock Industries

Michael K. Currie

SVP, Los Angeles Region-North

Gilbert W. Estrada

SVP, Chief Information Officer

Donald E. Evenson

SVP, Inland Empire Region

Richard M. Favor

SVP, Chief Investment Officer

Deborah G. Gallagher

SVP, Central Coast Region

Michael B. Mulcahy

SVP, SBA Group

Rudy I. Ramirez

SVP, Los Angeles Region-Metro

Mark C. Richardson

SVP,Chief Information SecurityOfficer

Walter J. Smiechewicz

SVP, Real Estate Banking

Michael D. Stain

SVP, Chief Audit Executive

David S. Stong

SVP, Central Valley Region

Robert E. Zeltner

SVP, San Diego Region

SVP, Orange County Region

140

consecutive quarters of cash dividends paid

190

consecutive quarters

of profitability

$51.2 million

net income

as of 9.30.24

Top 50 Public Banks

Super Premier

Five-Star

America's Greatest

S&P Global Market

Performing Bank

Superior Rating

Workplaces for Women

Intelligence, 2024

Findley Reports, 2024

BauerFinancial, 2024

Newsweek, 2024

Financials

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 more than $15 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.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

September 30,

December 31,

(Unaudited)

2024

2023

Assets

Cash and due from banks

$

200,651

$ 171,396

Interest-earning balances due from Federal Reserve

252,809

109,889

Total cash and cash equivalents

453,460

281,285

Interest-earning balances due from depository institutions

24,338

8,216

Investment securities available-for-sale, at fair value

(with amortized cost of $2,818,313 at September 30,

2024, and $3,398,942 at December 31, 2023)

2,465,585

2,956,125

Investment securities held-to-maturity (with fair value

of $2,063,694 at September 30, 2024, and $2,082,881

at December 31, 2023)

2,405,254

2,464,610

Total investment securities

4,870,839

5,420,735

Investment in stock of Federal Home Loan Bank (FHLB)

18,012

18,012

Loans and lease finance receivables

8,572,565

8,904,910

Allowance for credit losses

(82,942)

(86,842)

Net loans and lease finance receivables

8,489,623

8,818,068

Premises and equipment, net

36,275

44,709

Bank owned life insurance (BOLI)

316,553

308,706

Accrued interest receivable

45,450

48,994

Intangibles

11,130

15,291

Goodwill

765,822

765,822

Income taxes

155,478

163,968

Other assets

216,236

127,187

Total assets

$

15,403,216

$16,020,993

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Noninterest-bearing

$7,136,824

$7,206,175

Interest-bearing

4,935,665

4,227,467

Total deposits

12,072,489

11,433,642

Customer repurchase agreements

394,515

271,642

Other borrowings

500,000

2,070,000

Deferred compensation

22,633

22,335

Accrued interest payable

6,675

23,268

Other liabilities

209,073

122,134

Total liabilities

13,205,385

13,943,021

Commitments and Contingencies

Stockholders' Equity

Common stock, authorized, 225,000,000 shares without

par; issued and outstanding 139,678,314 at September

30, 2024, and 139,344,981 at December 31, 2023

1,294,041

1,288,899

Retained earnings

1,178,619

1,112,642

Accumulated other comprehensive loss, net of tax

(274,829)

(323,569)

Total stockholders' equity

2,197,831

2,077,972

Total liabilities and stockholders' equity

$

15,403,216

$16,020,993

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)

Three Months Ended September 30,

(Unaudited)

2024

2023

Interest income:

Loans and leases, including fees

$

114,929

$

113,190

Investment securities:

Investment securities available-for-sale

20,178

22,441

Investment securities held-to-maturity

13,284

13,576

Total investment income

33,462

36,017

Dividends from FHLB stock

375

598

Interest-earning deposits with other institutions

16,986

6,422

Total interest income

165,752

156,227

Interest expense:

Deposits

29,821

16,517

Borrowings and customer repurchase agreements

22,312

16,339

Total interest expense

52,133

32,856

Net interest income before provision for credit losses

113,619

123,371

Provision for credit losses

-

2,000

Net interest income after provision for credit losses

113,619

121,371

Noninterest income:

Service charges on deposit accounts

5,120

5,062

Trust and investment services

3,565

3,246

Bankcard services

355

354

BOLI income

3,499

1,548

Loss on sale of investment securities

(11,582)

-

Gain on sale leaseback transactions

9,106

-

Other

2,771

4,099

Total noninterest income

12,834

14,309

Noninterest expense:

Salaries and employee benefits

36,647

34,744

Occupancy and equipment

6,204

5,618

Professional services

2,855

2,117

Computer software expense

3,906

3,648

Marketing and promotion

1,964

1,628

(Recapture of) provision for unfunded loan commitments

(750)

(900)

Amortization of intangible assets

1,286

1,567

Other

6,723

6,636

Total noninterest expense

58,835

55,058

Earnings before income taxes

67,618

80,622

Income taxes

16,394

22,735

Net earnings

$

51,224

$

57,887

Basic earnings per common share

$

0.37

$

0.42

Diluted earnings per common share

$

0.37

$

0.42

CVB Financial Corp. Citizens Business Bank Corporate Headquarters 909.980.4030 | cbbank.com

Equal Housing Lender | Member FDIC

Disclaimer

CVB Financial Corporation published this content on November 21, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 21, 2024 at 04:17:00.922.