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 ...

CVB Financial (CVBF) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.63%. A quarter ago, it was expected that this bank holding company would post earnings of $0.40 per share when it actually produced earnings of $0.42, delivering a surprise of 5%.Over the last four quarters, the co ...

Fourth Quarter 2023 Net Earnings of $48.5 million, or $0.35 per share FDIC Special Assessment of $9.2 million ($0.04 decrease in EPS) Full Year 2023 Net Earnings of $221.4 million, or $1.59 per shareEfficiency Ratio of 42.0%Return on Average Assets of 1.35%Return on Average Tangible Common Equity of 18.48% ONTARIO, Calif., Jan. 24, 2024 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the "Company"), announced earnings for the quarter and the year ended De ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------|-------|---------------------|-------|-------|-----------|----------|--------------------------------------------------|-------|-------------------|-------|-----------| | Assets | | Carrying \nAmount | | | Level 1 | | Estimated \nLevel 2 \n(Dollars in thousands) | Fair | Value \nLevel 3 | | Total | | Total cash and cash equivalents | $ ...

Financial Data and Key Metrics Changes - The company reported net earnings of $57.9 million or $0.42 per share for Q3 2023, compared to $55.8 million or $0.40 per share in Q2 2023 and $64.6 million or $0.46 per share in Q3 2022 [4][31] - Return on average tangible common equity was 18.82% and return on average assets was 1.4% for Q3 2023 [9] - Pretax pre-provision income grew by 5.7% from Q2 2023 to $82.6 million, with total revenue increasing by 4.2% while expenses grew by only 1.9% [9] - The net interest margin increased by 9 basis points to 3.31% in Q3 2023, reversing a declining trend from the previous two quarters [32][48] Business Line Data and Key Metrics Changes - Total loans outstanding decreased by approximately $30 million to $8.88 billion at the end of Q3 2023, with a notable decline in commercial real estate loans by $61 million [10][35] - Dairy and livestock loans increased by $49 million, while C&I loans decreased by approximately $11 million [14][15] - New loan production at the end of Q3 2023 was generated at average yields of approximately 7% [15] Market Data and Key Metrics Changes - Noninterest-bearing deposits declined by $292 million, while interest-bearing deposits increased by $253 million from the end of Q2 2023 [11] - The cost of deposits averaged 52 basis points in Q3 2023, up from 35 basis points in Q2 2023 [12] - Total deposits were $12.4 billion at the end of Q3 2023, a decrease from June 30, 2023, with a significant decline of $773 million in deposits from the end of 2022 [33][34] Company Strategy and Development Direction - The company aims to continue growing deposits and managing its capital effectively, with a focus on maintaining a strong capital position [20][24] - The management expressed a cautious outlook on loan growth, anticipating challenges in the pipeline but remaining optimistic about seasonal increases in the fourth quarter [85] - The company is actively evaluating opportunities in the M&A environment, particularly for banks willing to sell below book value [94] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds in the current operating environment but emphasized a strong history of solid quarterly earnings [4] - The economic forecast includes a modest decline in GDP in early 2024, with an expected unemployment rate of 5.2% in 2024 [42] - Management remains cautious about credit quality, with stable trends observed despite some increases in classified loans [39][98] Other Important Information - The company's tangible common equity ratio was 7.73% at the end of Q3 2023, consistent with the prior quarter [22] - Noninterest income for Q3 2023 was $14.3 million, an increase from $12.7 million in the prior quarter [51] - The efficiency ratio improved to 39.99% for Q3 2023, compared to 40.86% in the prior quarter [55] Q&A Session Summary Question: Plans for $850 million due next year - The company aims to grow deposits and pay it off with deposits and security paydowns over time [57] Question: Update on deposit pipeline - The deposit pipeline remains strong, although the sales cycle is longer [58][60] Question: Appetite for restructuring the securities portfolio - The company is always evaluating opportunities but does not foresee significant changes at this time [61] Question: Increase in classified loans - The increase was primarily due to one relationship, which is well collateralized and expected to close in Q4 [62] Question: Outlook for loan growth - The company anticipates low single-digit growth, with new loan originations being lower than the previous year [86] Question: Changes in prospective sellers' willingness - The company is actively looking for opportunities, especially those willing to sell below book value [74] Question: Credit quality outlook - Credit trends have remained stable, with no significant changes observed in the loan book [98]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or Commission File Number: 000-10140 California 95-3629339 (State or other jurisdiction of Incorporation or organization) (I.R.S. Employer Identification No.) (909) 980-4030 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d ...