[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section summarizes the company's first-quarter financial performance and strategic commentary [First Quarter 2024 Performance Overview](index=1&type=section&id=First%20Quarter%202024%20Performance%20Overview) CVB Financial Corp. reported net earnings of $48.6 million for Q1 2024, consistent with Q4 2023 but down from Q1 2023, with key performance indicators remaining strong despite a decline in Net Interest Margin (NIM) Q1 2024 Key Financial Performance | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :-------------------------------- | :------ | :------ | :------ | | Net Earnings (millions) | $48.6 | $48.5 | $59.3 | | Diluted EPS | $0.35 | $0.35 | $0.42 | | Return on Average Assets (ROAA) | 1.21% | 1.19% | 1.47% | | Return on Average Equity (ROAE) | 9.31% | 9.65% | 12.15% | | Return on Average Tangible Common Equity (ROATCE) | 15.13% | 16.21% | 20.59% | | Net Interest Margin (NIM) | 3.10% | 3.26% | 3.45% | - Loans decreased by **$134 million (1.5%)** from the end of 2023, with allowance for credit loss declining by **$4 million** due to net charge-offs and related reserves established in 2023[3](index=3&type=chunk) - Total deposits increased by **$461 million** compared to the prior quarter-end, including **$300 million** in new brokered deposits[10](index=10&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) David Brager, President and CEO, highlighted the bank's consistent performance in a challenging environment, emphasizing 188 consecutive quarters of profitability and 138 consecutive quarters of cash dividends, while remaining focused on banking small to medium-sized businesses - Citizens Business Bank has maintained **188 consecutive quarters of profitability** and **138 consecutive quarters of paying cash dividends**[10](index=10&type=chunk) - The company's mission remains focused on banking small to medium-sized businesses and their owners through all economic cycles[10](index=10&type=chunk) [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) This section analyzes the company's net interest income, provision for credit losses, noninterest income, noninterest expense, and income taxes [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income decreased quarter-over-quarter and year-over-year, primarily due to a decline in net interest margin (NIM) driven by increased cost of funds, despite a slight increase in interest-earning asset yield Net Interest Income & Margin Trends | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :-------------------------------- | :------ | :------ | :------ | | Net Interest Income (millions) | $112.5 | $119.4 | $125.7 | | Net Interest Margin (NIM) | 3.10% | 3.26% | 3.45% | | Cost of Funds | 1.31% | 1.09% | 0.49% | | Interest-Earning Asset Yield | 4.34% | 4.30% | 3.91% | - The **16 basis point QoQ decrease in NIM** was due to a **22 basis point increase in cost of funds**, partially offset by a **4 basis point increase in interest-earning asset yield**[3](index=3&type=chunk) - Cost of deposits and customer repurchase agreements increased by **12 basis points to 0.73% QoQ**, including a **116 basis point increase in cost of time deposits**[3](index=3&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses) There was no provision for credit losses in Q1 2024, compared to a recapture in Q4 2023 and a provision in Q1 2023, with projected loss rates slightly increasing due to economic forecast changes Provision for Credit Losses | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :-------------------------------- | :------ | :------ | :------ | | Provision for Credit Losses (millions) | $0.0 | ($2.0) | $1.5 | | Projected Loss Rate (ACL as % of loans) | 0.94% | 0.98% | 0.97% | - The modest increase in projected loss rates for performing loans (from **0.91% to 0.94%**) was primarily driven by economic forecast changes to macroeconomic variables like GDP growth, commercial real estate values, and unemployment rates[44](index=44&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income decreased quarter-over-quarter but increased year-over-year, mainly due to a decline in Bank Owned Life Insurance (BOLI) income and CRA investment-related income Noninterest Income Trends | Metric | Q1 2024 (millions) | Q4 2023 (millions) | Q1 2023 (millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | | Total Noninterest Income | $14.1 | $19.2 | $13.2 | | BOLI Income Change (QoQ) | -$4.3 | N/A | N/A | | BOLI Income Change (YoY) | +$2.4 | N/A | N/A | | CRA Investment Income Decline (QoQ) | ~$0.85 | N/A | N/A | | Trust and Investment Service Fees (YoY Growth) | +10.64% | N/A | N/A | - Q1 2024 included **$531,000 in death benefits** that exceeded the asset value on certain BOLI policies, with no comparable benefits in prior quarters[45](index=45&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense decreased quarter-over-quarter due to a lower FDIC special assessment accrual but increased year-over-year, with staff-related expenses and professional services seeing increases Noninterest Expense Trends | Metric | Q1 2024 (millions) | Q4 2023 (millions) | Q1 2023 (millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | | Total Noninterest Expense | $59.8 | $65.9 | $54.9 | | FDIC Special Assessment (Q1 2024) | $2.3 | $9.2 | $0.0 | | Staff Related Expenses (YoY Increase) | $1.2 | N/A | N/A | | Efficiency Ratio | 47.22% | 47.60% | 39.50% | - The **$6.2 million QoQ decrease** was primarily due to a **$6.8 million expense variance** from accruing the estimated FDIC special assessment in Q4 2023, with an additional **$2.3 million** recorded in Q1 2024 due to a revised estimate[6](index=6&type=chunk) - Staff-related expenses increased **$749,000 QoQ**, including **$1.7 million in higher payroll taxes** for bonuses, offset by a **$900,000 decrease in bonus accruals**[6](index=6&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) The effective tax rate for Q1 2024 was 27.25%, a decrease from 28.20% in Q1 2023, with the rate fluctuating based on tax-advantaged income and tax credits Effective Tax Rate | Metric | Q1 2024 | Q1 2023 | | :---------------- | :------ | :------ | | Effective Tax Rate | 27.25% | 28.20% | - The estimated annual effective tax rate is influenced by the level of tax-advantaged income from municipal securities and Bank Owned Life Insurance (BOLI), as well as available tax credits[47](index=47&type=chunk) [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet%20Analysis) This section analyzes the company's assets, deposits, borrowings, and capital structure, highlighting key changes and trends [Assets Overview](index=5&type=section&id=Assets%20Overview) Total assets increased quarter-over-quarter and year-over-year, primarily driven by a significant increase in interest-earning balances due from the Federal Reserve, partially offset by decreases in investment securities and net loans Total Assets | Metric | March 31, 2024 (billions) | December 31, 2023 (billions) | March 31, 2023 (billions) | | :-------------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Total Assets | $16.47 | $16.02 | $16.27 | | Interest-Earning Balances from Federal Reserve (QoQ Change) | +$707.7 million | N/A | N/A | | Investment Securities (QoQ Change) | -$129.0 million | N/A | N/A | | Net Loans (QoQ Change) | -$130.2 million | N/A | N/A | [Investment Securities and BOLI](index=5&type=section&id=Investment%20Securities%20and%20BOLI) Investment securities decreased both quarter-over-quarter and year-over-year, with a notable increase in the pre-tax net unrealized loss on available-for-sale (AFS) securities, while Bank Owned Life Insurance (BOLI) value increased significantly Investment Securities & BOLI | Metric | March 31, 2024 (billions) | December 31, 2023 (billions) | March 31, 2023 (billions) | | :-------------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Total Investment Securities | $5.29 | $5.42 | $5.74 | | HTM Securities | $2.45 | $2.46 | $2.54 | | AFS Securities | $2.84 | $2.96 | $3.20 | | Pre-tax Net Unrealized Loss (AFS) | $485.6 million | $449.7 million | $459.6 million | | Bank Owned Life Insurance (BOLI) | $310.7 million | $308.7 million | $256.7 million | - Approximately **80% of total investment securities** are in MBS and CMO, virtually all issued or guaranteed by government or government-sponsored enterprises[20](index=20&type=chunk) - The **$54.0 million YoY increase in BOLI value** was primarily due to a restructuring of policies, including a **$4.5 million write-down** offset by a **$10.9 million enhancement to cash surrender values**, and **$41 million in additional policy purchases**[21](index=21&type=chunk) [Loans and Leases](index=5&type=section&id=Loans%20and%20Leases) Total loans and leases decreased both quarter-over-quarter and year-over-year, with significant declines in commercial real estate and dairy & livestock loans, partially offset by growth in SFR mortgage loans Loans and Leases Trends | Metric | March 31, 2024 (billions) | December 31, 2023 (billions) | March 31, 2023 (billions) | | :-------------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Total Loans and Leases (amortized cost) | $8.77 | $8.90 | $8.94 | | QoQ Decrease | -$134.2 million | N/A | N/A | | YoY Decrease | -$171.8 million | N/A | N/A | - QoQ decreases included **$64.0 million in commercial real estate loans** and **$61.3 million in dairy & livestock and agribusiness loans**, partially offset by a **$6.6 million increase in SFR mortgage loans**[22](index=22&type=chunk) - YoY decreases included **$229.8 million in commercial real estate loans**, partially offset by increases of **$65.0 million in commercial and industrial loans** and **$43.8 million in dairy & livestock and agribusiness loans**[23](index=23&type=chunk) [Deposits and Customer Repurchase Agreements](index=7&type=section&id=Deposits%20and%20Customer%20Repurchase%20Agreements) Total deposits and customer repurchase agreements increased quarter-over-quarter, primarily due to new brokered deposits, but decreased year-over-year, with noninterest-bearing deposits continuing to decline Deposits & Customer Repurchase Agreements | Metric | March 31, 2024 (billions) | December 31, 2023 (billions) | March 31, 2023 (billions) | | :-------------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Total Deposits & Customer Repurchase Agreements | $12.17 | $11.71 | $12.76 | | Noninterest-Bearing Deposits | $7.11 | $7.21 | $7.84 | | Noninterest-Bearing Deposits as % of Total Deposits | 59.80% | 63.03% | 63.92% | | New Brokered Deposits (Q1 2024) | $300 million | N/A | N/A | - Noninterest-bearing deposits decreased by **$93.4 million (1.30%) QoQ** and **$731.5 million (9.33%) YoY**[26](index=26&type=chunk) [Borrowings](index=7&type=section&id=Borrowings) Total borrowings remained substantial at $2.0 billion, primarily from the Federal Reserve's Bank Term Funding Program, with significant maturities scheduled for May 2024 and January 2025 Borrowings Overview | Metric | March 31, 2024 (billions) | December 31, 2023 (billions) | March 31, 2023 (billions) | | :-------------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Total Borrowings | ~$2.0 | $2.07 | $1.41 | | Average Cost of Borrowings (Q1 2024) | 4.75% | N/A | N/A | - Borrowings consisted of one-year advances from the Federal Reserve's Bank Term Funding Program[27](index=27&type=chunk) - Maturities include approximately **$695 million in May 2024** and **$1.3 billion in January 2025**[27](index=27&type=chunk) [Capital and Equity](index=7&type=section&id=Capital%20and%20Equity) The Company's total equity increased slightly QoQ, driven by net earnings, partially offset by cash dividends and a decrease in other comprehensive income, with capital ratios remaining well above regulatory standards Capital and Equity Highlights | Metric | March 31, 2024 (billions) | December 31, 2023 (billions) | March 31, 2023 (billions) | | :-------------------------------- | :------------------------ | :--------------------------- | :------------------------ | | Total Equity | $2.09 | $2.08 | $1.99 | | Net Earnings (Q1 2024) | $48.6 million | N/A | N/A | | Cash Dividends (Q1 2024) | $27.9 million | N/A | N/A | | Tangible Book Value Per Share | $9.36 | $9.31 | $8.64 | Regulatory Capital Ratios (March 31, 2024) | Capital Ratio | Minimum Required Plus Capital Conservation Buffer | CVB Financial Corp. Consolidated | | :-------------------------------- | :------------------------------------------------ | :------------------------------- | | Tier 1 Leverage Capital Ratio | 4.0% | 10.5% | | Common Equity Tier 1 Capital Ratio | 7.0% | 14.9% | | Tier 1 Risk-Based Capital Ratio | 8.5% | 14.9% | | Total Risk-Based Capital Ratio | 10.5% | 15.8% | | Tangible Common Equity Ratio | N/A | 8.3% | - The company engaged in no stock repurchases during the first quarter of 2024[28](index=28&type=chunk) [Asset Quality](index=6&type=section&id=Asset%20Quality) This section examines the company's nonperforming assets, delinquency trends, and allowance for credit losses [Nonperforming Assets and Delinquency Trends](index=7&type=section&id=Nonperforming%20Assets%20and%20Delinquency%20Trends) Nonperforming loans decreased significantly quarter-over-quarter, primarily due to payoffs and charge-offs of commercial real estate and industrial loans, while past due 30-89 days (accruing) loans saw a substantial increase Nonperforming Assets and Delinquency Trends | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Total Nonperforming Loans | $13,810 | $21,302 | $6,175 | | % of Total Loans (Nonperforming) | 0.16% | 0.24% | 0.07% | | Past Due 30-89 Days (Accruing) | $20,195 | $639 | $1,183 | | % of Total Loans (Past Due) | 0.23% | 0.01% | 0.01% | | Total Nonperforming Assets | $14,457 | $21,302 | $6,175 | | % of Nonperforming Assets to Total Assets | 0.09% | 0.13% | 0.04% | - The **$7.5 million QoQ decrease in nonperforming loans** was mainly due to the payoff of two nonperforming commercial real estate loans (**$2.5 million**) and charge-offs of commercial real estate (**$2.3 million**) and industrial loans (**$1.1 million**)[54](index=54&type=chunk) - Classified loans increased **$883,000 QoQ**, primarily due to increases in classified construction loans (**$2.1 million**) and commercial real estate loans (**$484,000**), partially offset by a decline in commercial and industrial loans[55](index=55&type=chunk) [Allowance for Credit Losses](index=6&type=section&id=Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses (ACL) decreased quarter-over-quarter due to net charge-offs, with the ACL as a percentage of total loans also declining Allowance for Credit Losses | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Allowance for Credit Losses (ACL) | $82,817 | $86,842 | $86,540 | | ACL as % of Total Loans | 0.94% | 0.98% | 0.97% | | Net Charge-offs (Q1 2024) | $4,025 | N/A | N/A | - During Q1 2024, the company experienced credit charge-offs of **$4.3 million** and total recoveries of **$242,000**, resulting in net charge-offs of **$4.0 million**[24](index=24&type=chunk) [Other Business Segments](index=8&type=section&id=Other%20Business%20Segments) This section provides an overview of the company's CitizensTrust segment, detailing its performance and services [CitizensTrust](index=8&type=section&id=CitizensTrust) CitizensTrust reported increased revenues for Q1 2024 compared to the prior year, managing approximately $4.3 billion in assets, including $3.09 billion under management CitizensTrust Performance | Metric | Q1 2024 (millions) | Q1 2023 (millions) | | :-------------------------------- | :----------------- | :----------------- | | Revenues | $3.2 | $2.9 | | Assets Under Management and Administration | ~$4.3 billion | N/A | | Assets Under Management | $3.09 billion | N/A | - CitizensTrust provides trust, investment, brokerage, financial, estate, and business succession planning services[30](index=30&type=chunk) [Corporate Information](index=8&type=section&id=Corporate%20Information) This section provides an overview of CVB Financial Corp., details of the conference call, and the safe harbor statement regarding forward-looking information [Corporate Overview](index=8&type=section&id=Corporate%20Overview) CVB Financial Corp. is the holding company for Citizens Business Bank, one of California's largest bank holding companies with approximately $16 billion in total assets, offering a wide range of banking, lending, and investing services - CVB Financial Corp. (NASDAQ:CVBF) is among the **top 10 largest bank holding companies** headquartered in California[31](index=31&type=chunk) - Citizens Business Bank operates over **60 banking centers** and **three trust office locations** in California[31](index=31&type=chunk) [Conference Call Details](index=8&type=section&id=Conference%20Call%20Details) Management scheduled a conference call for April 25, 2024, to discuss Q1 2024 financial results, accessible via live webcast and replay on the company's website - A conference call was scheduled for **7:30 a.m. PDT/10:30 a.m. EDT on Thursday, April 25, 2024**[75](index=75&type=chunk) - The conference call was simultaneously webcast and recorded for replay on the Citizens Business Bank website (www.cbbank.com) under the 'Investors' tab[60](index=60&type=chunk) [Safe Harbor Statement](index=8&type=section&id=Safe%20Harbor%20Statement) The report includes forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from projections, with the company disclaiming any obligation to update these statements - Forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and beyond the company's control[75](index=75&type=chunk) - Key risk factors include economic conditions, regulatory changes, interest rate fluctuations, credit quality, cybersecurity threats, and the ability to attract and retain deposits and employees[61](index=61&type=chunk)[76](index=76&type=chunk) - The company explicitly disclaims any obligation to update forward-looking statements to reflect future events or circumstances, except as legally required[62](index=62&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section provides disclosures and reconciliations for non-GAAP financial measures, including tangible book value and return on average tangible common equity [Non-GAAP Financial Measures Disclosure](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Disclosure) The earnings release includes certain non-GAAP financial measures to provide supplemental information on performance, advising investors to consider these measures in addition to, not as a substitute for, GAAP-prepared measures - Non-GAAP financial measures are provided as supplemental information and should not be considered a substitute for or superior to GAAP measures[35](index=35&type=chunk) - These non-GAAP measures may not be comparable to similarly titled measures used by other companies[35](index=35&type=chunk) [Tangible Book Value Reconciliations](index=19&type=section&id=Tangible%20Book%20Value%20Reconciliations) The report provides a reconciliation of tangible book value to GAAP stockholders' equity, showing the calculation of tangible book value per share Tangible Book Value Reconciliation | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Stockholders' Equity | $2,086,825 | $2,077,972 | $1,989,769 | | Less: Goodwill | ($765,822) | ($765,822) | ($765,822) | | Less: Intangible Assets | ($13,853) | ($15,291) | ($20,023) | | Tangible Book Value | $1,307,150 | $1,296,859 | $1,203,924 | | Common Shares Outstanding | 139,641,884 | 139,344,981 | 139,302,451 | | Tangible Book Value Per Share ($) | $9.36 | $9.31 | $8.64 | [Return on Average Tangible Common Equity Reconciliations](index=20&type=section&id=Return%20on%20Average%20Tangible%20Common%20Equity%20Reconciliations) The report reconciles net income and average stockholders' equity to their tangible counterparts to calculate the return on average tangible common equity (ROATCE), a non-GAAP measure Return on Average Tangible Common Equity Reconciliation | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Net Income | $48,599 | $48,508 | $59,270 | | Add: Amortization of Intangible Assets | $1,438 | $1,446 | $1,720 | | Less: Tax Effect of Amortization | ($425) | ($427) | ($508) | | Tangible Net Income | $49,612 | $49,527 | $60,482 | | Average Stockholders' Equity | $2,098,868 | $1,994,150 | $1,978,244 | | Less: Average Goodwill | ($765,822) | ($765,822) | ($765,822) | | Less: Average Intangible Assets | ($14,585) | ($15,993) | ($20,983) | | Average Tangible Common Equity | $1,318,461 | $1,212,335 | $1,191,439 | | Return on Average Tangible Common Equity, Annualized (%) | 15.13% | 16.21% | 20.59% | [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated balance sheets, average balance sheets, and statements of earnings for recent periods [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's condensed consolidated balance sheets, detailing assets, liabilities, and stockholders' equity at the end of Q1 2024, Q4 2023, and Q1 2023 Condensed Consolidated Balance Sheets (Selected Items) | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Total Assets | $16,468,146 | $16,020,993 | $16,274,041 | | Total Investment Securities | $5,291,686 | $5,420,735 | $5,740,503 | | Net Loans and Lease Finance Receivables | $8,687,896 | $8,818,068 | $8,855,949 | | Total Deposits | $11,894,921 | $11,433,642 | $12,271,870 | | Total Liabilities | $14,381,321 | $13,943,021 | $14,284,272 | | Total Stockholders' Equity | $2,086,825 | $2,077,972 | $1,989,769 | [Condensed Consolidated Average Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Average%20Balance%20Sheets) This section provides the condensed consolidated average balance sheets, offering insights into the average balances of assets, liabilities, and equity over Q1 2024, Q4 2023, and Q1 2023 Condensed Consolidated Average Balance Sheets (Selected Items) | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Total Assets | $16,205,413 | $16,169,125 | $16,313,136 | | Total Investment Securities | $5,357,708 | $5,328,208 | $5,762,728 | | Net Loans and Lease Finance Receivables | $8,738,828 | $8,767,711 | $8,878,172 | | Total Deposits | $11,636,853 | $12,154,000 | $12,713,951 | | Total Liabilities | $14,106,545 | $14,174,975 | $14,334,892 | | Total Stockholders' Equity | $2,098,868 | $1,994,150 | $1,978,244 | [Condensed Consolidated Statements of Earnings](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This section provides the condensed consolidated statements of earnings, detailing interest income, interest expense, net interest income, noninterest income, noninterest expense, and net earnings for Q1 2024, Q4 2023, and Q1 2023 Condensed Consolidated Statements of Earnings (Selected Items) | Metric | March 31, 2024 (thousands) | December 31, 2023 (thousands) | March 31, 2023 (thousands) | | :-------------------------------- | :------------------------- | :---------------------------- | :------------------------- | | Total Interest Income | $157,689 | $158,078 | $142,786 | | Total Interest Expense | $45,228 | $38,722 | $17,058 | | Net Interest Income | $112,461 | $119,356 | $125,728 | | Total Noninterest Income | $14,113 | $19,163 | $13,202 | | Total Noninterest Expense | $59,771 | $65,930 | $54,881 | | Net Earnings | $48,599 | $48,508 | $59,270 | | Diluted Earnings Per Common Share ($) | $0.35 | $0.35 | $0.42 | [Selected Financial Highlights (Detailed Tables)](index=13&type=section&id=Selected%20Financial%20Highlights%20(Detailed%20Tables)) This section provides comprehensive detailed tables of selected financial highlights, including income statement, balance sheet, asset quality, and regulatory capital ratios [Selected Financial Highlights (Income Statement & Ratios)](index=13&type=section&id=Selected%20Financial%20Highlights%20(Income%20Statement%20%26%20Ratios)) This section provides a detailed table of selected financial highlights, including tax-equivalent net interest income, key profitability ratios, and yield/cost metrics for recent quarters Selected Financial Highlights (Income Statement & Ratios) | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Net Interest Income - (TE) (thousands) | $113,000 | $119,898 | $126,274 | | Return on Average Assets, Annualized (%) | 1.21% | 1.19% | 1.47% | | Return on Average Equity, Annualized (%) | 9.31% | 9.65% | 12.15% | | Efficiency Ratio (%) | 47.22% | 47.60% | 39.50% | | Yield on Average Loans (%) | 5.30% | 5.18% | 4.90% | | Cost of Deposits (%) | 0.74% | 0.62% | 0.17% | | Net Interest Margin (TE) (%) | 3.10% | 3.26% | 3.45% | [Selected Financial Highlights (Balance Sheet & Ratios)](index=13&type=section&id=Selected%20Financial%20Highlights%20(Balance%20Sheet%20%26%20Ratios)) This table presents key balance sheet ratios and metrics, including tangible common equity ratio, weighted average shares outstanding, dividends, and nonperforming assets Selected Financial Highlights (Balance Sheet & Ratios) | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Tangible Common Equity Ratio (%) | 8.33% | 8.51% | 7.77% | | Weighted Average Shares Outstanding (Diluted) | 138,603,324 | 138,569,762 | 138,953,172 | | Dividends Declared (thousands) | $27,886 | $27,945 | $28,007 | | Dividend Payout Ratio (%) | 57.38% | 57.61% | 47.25% | | Book Value Per Share ($) | $14.94 | $14.91 | $14.28 | | Tangible Book Value Per Share ($) | $9.36 | $9.31 | $8.64 | | Nonaccrual Loans (thousands) | $13,810 | $21,302 | $6,175 | | Net Recoveries (Charge-offs) to Average Loans (%) | -0.046% | -0.002% | -0.001% | [Allowance for Credit Losses by Loan Type](index=14&type=section&id=Allowance%20for%20Credit%20Losses%20by%20Loan%20Type) This table breaks down the Allowance for Credit Losses (ACL) by various loan types and presents the ACL as a percentage of total loans for each respective loan type Allowance for Credit Losses by Loan Type (March 31, 2024) | Loan Type | Allowance for Credit Losses (millions) | Allowance as a % of Total Loans by Respective Loan Type | | :-------------------------------- | :------------------------------------- | :------------------------------------------------------ | | Commercial Real Estate | $69.4 | 1.03% | | Construction | $1.3 | 2.20% | | SBA | $2.5 | 0.94% | | Commercial and Industrial | $5.1 | 0.53% | | Dairy & Livestock and Agribusiness | $3.3 | 0.92% | | Municipal Lease Finance Receivables | $0.2 | 0.27% | | SFR Mortgage | $0.5 | 0.17% | | Consumer and Other Loans | $0.5 | 0.97% | | Total | $82.8 | 0.94% | [Quarterly Common Stock Price & Consolidated Statements of Earnings](index=15&type=section&id=Quarterly%20Common%20Stock%20Price%20%26%20Consolidated%20Statements%20of%20Earnings) This section provides historical quarterly common stock price ranges and a detailed breakdown of consolidated statements of earnings over several quarters Quarterly Common Stock Price (High/Low) | Quarter End | 2024 High ($) | 2024 Low ($) | 2023 High ($) | 2023 Low ($) | | :---------------- | :-------- | :------- | :-------- | :------- | | March 31 | $20.45 | $15.95 | $25.98 | $16.34 | | June 30 | - | - | $16.89 | $10.66 | | September 30 | - | - | $19.66 | $12.89 | | December 31 | - | - | $21.77 | $14.62 | Quarterly Consolidated Statements of Earnings (Selected Items, thousands) | Metric | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total Interest Income | $157,689 | $158,078 | $156,227 | $149,239 | $142,786 | | Total Interest Expense | $45,228 | $38,722 | $32,856 | $29,704 | $17,058 | | Net Interest Income | $112,461 | $119,356 | $123,371 | $119,535 | $125,728 | | Noninterest Income | $14,113 | $19,163 | $14,309 | $12,656 | $13,202 | | Noninterest Expense | $59,771 | $65,930 | $55,058 | $54,017 | $54,881 | | Net Earnings | $48,599 | $48,508 | $57,887 | $55,770 | $59,270 | | Diluted Earnings Per Common Share ($) | $0.35 | $0.35 | $0.42 | $0.40 | $0.42 | [Loan Portfolio by Type](index=16&type=section&id=Loan%20Portfolio%20by%20Type) This table provides a detailed breakdown of the gross loan portfolio by type, at amortized cost, for several recent quarters, along with the allowance for credit losses and net loans Loan Portfolio by Type (thousands) | Loan Type | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Commercial Real Estate | $6,720,538 | $6,784,505 | $6,843,059 | $6,904,095 | $6,950,302 | | Construction | $58,806 | $66,734 | $63,022 | $68,836 | $83,992 | | SBA | $268,320 | $270,619 | $283,124 | $278,904 | $283,464 | | Commercial and Industrial | $963,120 | $969,895 | $938,064 | $956,242 | $898,167 | | Dairy & Livestock and Agribusiness | $351,624 | $412,891 | $351,463 | $298,247 | $307,820 | | SFR Mortgage | $276,475 | $269,868 | $268,171 | $263,201 | $262,324 | | Gross Loans, at Amortized Cost | $8,770,713 | $8,904,910 | $8,877,632 | $8,907,397 | $8,942,489 | | Allowance for Credit Losses | ($82,817) | ($86,842) | ($88,995) | ($86,967) | ($86,540) | | Net Loans | $8,687,896 | $8,818,068 | $8,788,637 | $8,820,430 | $8,855,949 | [Deposit Composition by Type and Customer Repurchase Agreements](index=16&type=section&id=Deposit%20Composition%20by%20Type%20and%20Customer%20Repurchase%20Agreements) This table details the composition of deposits by type (noninterest-bearing, investment checking, savings and money market, time deposits) and customer repurchase agreements for several recent quarters Deposit Composition by Type and Customer Repurchase Agreements (thousands) | Deposit Type | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Noninterest-Bearing | $7,112,789 | $7,206,175 | $7,586,649 | $7,878,810 | $7,844,329 | | Investment Checking | $545,066 | $552,408 | $560,223 | $574,817 | $668,947 | | Savings and Money Market | $3,561,512 | $3,278,664 | $3,906,187 | $3,627,858 | $3,474,651 | | Time Deposits | $675,554 | $396,395 | $305,727 | $316,036 | $283,943 | | Total Deposits | $11,894,921 | $11,433,642 | $12,358,786 | $12,397,521 | $12,271,870 | | Customer Repurchase Agreements | $275,720 | $271,642 | $269,552 | $452,373 | $490,235 | | Total Deposits and Customer Repurchase Agreements | $12,170,641 | $11,705,284 | $12,628,338 | $12,849,894 | $12,762,105 | [Nonperforming Assets and Delinquency Trends (Detailed)](index=17&type=section&id=Nonperforming%20Assets%20and%20Delinquency%20Trends%20(Detailed)) This detailed table provides a multi-quarter view of nonperforming loans, past due (accruing) loans, and other real estate owned (OREO) by loan type, along with their percentages of total loans Nonperforming Assets and Delinquency Trends (thousands) | Metric | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total Nonperforming Loans | $13,810 | $21,302 | $9,963 | $6,454 | $6,175 | | % of Total Loans (Nonperforming) | 0.16% | 0.24% | 0.11% | 0.07% | 0.07% | | Total Past Due 30-89 Days (Accruing) | $20,195 | $639 | $136 | $1,087 | $1,183 | | % of Total Loans (Past Due) | 0.23% | 0.01% | 0.00% | 0.01% | 0.01% | | Total OREO | $647 | $0 | $0 | $0 | $0 | | Total Nonperforming, Past Due, and OREO | $34,652 | $21,941 | $10,099 | $7,541 | $7,358 | | % of Total Loans (Combined) | 0.40% | 0.25% | 0.11% | 0.08% | 0.08% | [Regulatory Capital Ratios (Detailed)](index=18&type=section&id=Regulatory%20Capital%20Ratios%20(Detailed)) This table provides a detailed comparison of the company's regulatory capital ratios against minimum required levels, including the capital conservation buffer, for recent quarters Regulatory Capital Ratios | Capital Ratio | Minimum Required Plus Capital Conservation Buffer | CVB Financial Corp. Consolidated (March 31, 2024) | December 31, 2023 | March 31, 2023 | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :---------------- | :------------- | | Tier 1 Leverage Capital Ratio | 4.0% | 10.5% | 10.3% | 9.7% | | Common Equity Tier 1 Capital Ratio | 7.0% | 14.9% | 14.6% | 13.8% | | Tier 1 Risk-Based Capital Ratio | 8.5% | 14.9% | 14.6% | 13.8% | | Total Risk-Based Capital Ratio | 10.5% | 15.8% | 15.5% | 14.6% | | Tangible Common Equity Ratio | N/A | 8.3% | 8.5% | 7.8% |

For the quarter ended March 2024, CVB Financial (CVBF) reported revenue of $126.57 million, down 8.9% over the same period last year. EPS came in at $0.35, compared to $0.42 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $127.87 million, representing a surprise of -1.01%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.35.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

CVB Financial (CVBF) came out with quarterly earnings of $0.35 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this bank holding company would post earnings of $0.38 per share when it actually produced earnings of $0.39, delivering a surprise of 2.63%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.CVB Financial, whic ...

First Quarter 2024 Net Earnings of $48.6 million, or $0.35 per share Return on Average Assets of 1.21%Return on Average Tangible Common Equity of 15.13% Net Interest Margin of 3.10% ONTARIO, CA, April 24, 2024 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the "Company"), announced earnings for the quarter ended March 31, 2024. CVB Financial Corp. reported net income of $48.6 million for the quarter ended March 31, 2024, compared with $48.5 million for the ...

ONTARIO, CA, March 20, 2024 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) (the "Company") announced a twenty cent ($0.20) per share cash dividend with respect to the first quarter of 2024. This dividend was approved at the Company's regularly scheduled Board of Directors meeting held on March 20, 2024. The quarterly dividend will be payable on or about April 17, 2024 to shareholders of record as of April 3, 2024. "We are pleased to announce our 138th consecutive quarterly cash dividend paid to our s ...

sshepard Shares of California bank holding company CVB Financial Corp. (NASDAQ:CVBF) have fallen some 20% since December 2023 on a plethora of nagging concerns regarding the regional bank sector. That said, 2023 was the business-centric bank's second most profitable year in its history, and it has been in the black every quarter since 1977. With a 4.8% dividend yield but 76% of its loan portfolio in commercial real estate, the recent insider buying merited a deeper dive. An analysis follows below. Seeking A ...

Financial Performance - For the year ended December 31, 2023, the company reported net earnings of $221.4 million, a decrease of $14.0 million, or 5.94%, compared to $235.4 million for 2022[63] - Diluted earnings per share for 2023 were $1.59, down by $0.08, or 4.8%, from $1.67 in 2022[63] - The company's net interest income for 2023 was $488.0 million, a decrease of $17.5 million, or 3.47%, compared to $505.5 million for 2022[76] - Noninterest income increased by $2.6 million, driven by a $4.2 million (24.66%) rise in service charges on deposit accounts and a $2.4 million net gain from property sales[82] - Total interest income and fees on loans for 2023 reached $448.3 million, an increase of $59.1 million, or 15.19%, compared to 2022, driven by a growth in average loans of $216.5 million and higher loan yields of 5.04%[110] Equity and Assets - The company's total equity increased to $2.08 billion as of December 31, 2023, up $129.5 million from $1.95 billion at the end of 2022[68] - The bank's total assets as of December 31, 2023, were $16.03 billion, with net loans at $8.82 billion and total deposits at $11.48 billion[164] - As of December 31, 2023, the Company had total consolidated assets of $16.02 billion, net loans of $8.82 billion, deposits of $11.43 billion, and shareholders' equity of $2.08 billion[198] Loans and Credit Quality - The percentage of nonperforming assets to total assets was 0.13% as of December 31, 2023[100] - Nonperforming loans increased to $21.3 million, or 0.24% of total loans, from $4.9 million, or 0.05% at the end of 2022[138] - The allowance for credit losses (ACL) totaled $86.8 million as of December 31, 2023, representing 0.98% of total loans, up from 0.94% in 2022[139] - Classified loans increased by $10 million quarter-over-quarter to $102.2 million, with a percentage of total loans rising to 1.15%[138] - The loan coverage ratio increased to 0.98% as of December 31, 2023, compared to 0.94% in the previous year[153] Deposits and Funding - Total liabilities decreased by $585 million (4.03%) to $13.94 billion as of December 31, 2023, with total deposits declining by $1.4 billion (10.93%)[87] - Average interest-bearing deposits decreased by $444.4 million, or 9.51%, to $4.23 billion at December 31, 2023, compared to $4.67 billion at the end of 2022[67] - Average savings deposits decreased by $526 million, or 10.81%, to $4.34 billion in 2023 from $4.87 billion in 2022[144] - Average noninterest-bearing deposits decreased by $1.05 billion, or 11.84%, from $8.84 billion in 2022 to $7.79 billion in 2023, accounting for 62.66% of total average deposits[155] Regulatory and Compliance - The Company is subject to significant regulation and restrictions by Federal and State laws, which may affect the cost of doing business and limit permissible activities[254] - The Company must maintain a Tier 1 Risk-Based Capital Ratio of 6.0% or greater and a Total Risk-Based Capital Ratio of 10.0% or greater to meet regulatory requirements[215] - The Capital Conservation Buffer is currently at its fully phased-in level of 2.5%, increasing the required minimum risk-based capital ratios[216] - The FDIC finalized a special assessment of approximately 13.4 basis points annually based on uninsured deposits, resulting in an accrued expense of $9.2 million for the Bank in December 2023[235] Workforce and Corporate Culture - The Company employed 1,107 associates as of December 31, 2023, reflecting a 3.3% increase from 1,072 associates at the end of 2022[179] - 93% of associates earned an incentive bonus in 2023, compared to 94% in 2022[183] - The Company reported a 61% increase in nominations for the Citizens Experience Service Awards in 2023, with 708 nominations received[180] - The Company’s Diversity and Inclusion Program aims to enhance workplace diversity, with 38% of the Board of Directors being female or ethnically diverse[181] Economic Outlook - The economic forecast predicts a modest decline in GDP during the first three quarters of 2024, with a return to positive growth in Q4 2024, and a full-year GDP increase of 0.92% in 2025, followed by 2.6% in 2026[106] - The unemployment rate is forecasted to exceed 5% in 2024, peaking at 5.7% in Q1 2025, before declining to less than 5% in Q3 2026[106] Cybersecurity and Risk Management - The Company has implemented multiple layers of cybersecurity controls to manage risks associated with cyber-attacks, which are expected to remain high[239] - The Company does not undertake any obligation to update forward-looking statements, which may involve risks and uncertainties affecting actual results[170]

CVB Financial Corp. (NASDAQ:CVBF) Q4 2023 Earnings Conference Call January 25, 2024 10:30 AM ET Company Participants Christina Carrabino - Investor Relations Dave Brager - President & Chief Executive Officer Allen Nicholson - Executive Vice President & Chief Financial Officer Conference Call Participants Matthew Clark - Piper Sandler Tim Coffey - Janney Montgomery Scott Matt Fedorjaka - KBW Operator Good morning, ladies and gentlemen, and welcome to the Fourth Quarter and Year Ended 2023 CVB Financial Corpo ...

0.8% 0.8% 0.6% 0.7% 0.7% 0.7% 0.8% 1.0% 1.1% 1.0% 0.9% 0.9% 0.8% 0.6% 0.6% 0.7% 0.7% 0.9% 0.7% 0.9% 0.7% 0.9% 1.0% 1.2% 1.8% 1.7% 1.6% 1.5% 1.5%1.5% 1.5% 1.4% 1.5% 1.6% 1.9% 2.1% 2.1% 2.0% 1.8% 1.6% 1.5% 1.4% 1.3%1.2% 1.2% 1.2% 1.4% 26 SFR mortgage CRE - Non-owner occupied Loans by Type Loan Trends $6,885 $6,950 $6,904 $6,843 $6,785 $521 $503 $470 $462 $467 Commercial Real Estate Loans Owner/Non-Owner Occupied 30 cbbank.com | --- | --- | --- | --- | |--------------------------------------------------------- ...

For the quarter ended December 2023, CVB Financial (CVBF) reported revenue of $138.52 million, down 7.6% over the same period last year. EPS came in at $0.39, compared to $0.47 in the year-ago quarter.The reported revenue represents a surprise of +2.70% over the Zacks Consensus Estimate of $134.88 million. With the consensus EPS estimate being $0.38, the EPS surprise was +2.63%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...