CVB Financial : Statement of Condition - Q3 2021

STATEMENT OF

CONDITION

September 30, 2021

President's Message

CVB Financial Corp.reported net earnings of $49.8 million for the quarter ended September 30,2021, compared with $51.2 million for the second quarter of 2021 and $47.5 million for the third quarter of 2020. We announced our 178th consecutive quarter of profitability and our 128th consecutive cash dividend paid to shareholders.

Citizens Business Bank remains well positioned to take advantage of the improving economic environment in California. According to various economic reports, many sectors of the California economy have recovered to their pre-pandemic levels. However, over the past three to six months, supply chain interruptions and labor shortages have impacted many of the businesses and industries that we serve. We continue to remain focused on assisting our customers with any negative effects of these issues on their businesses.

The third quarter of 2021 included relatively strong core loan growth, as well as sound credit metrics and a declining allowance for credit losses. We recorded a recapture of provision for credit losses of $4 million for the third quarter of 2021. As of September 30, 2021, greater than 99% of our customers' $1.1 billion in Paycheck Protection Program (PPP) round one loans have been forgiven by the Small Business Administration. Of the $420 million of loans we originated in PPP round two, we had remaining loans outstanding of $287 million as of September 30, 2021.

Our pre-taxpre-provision earnings remain strong despite the ongoing impact of the low interest rate environment and prevailing lower line utilization rates due to strong customer liquidity. We believe that our net interest margin will increase in a rising rate environment and we are seeing the steady improvement in our loan pipeline from previous quarters translate into solid loan growth. In August, we officially opened a de novo office, our Modesto Business Financial Center, to increase our presence in California's Central Valley area. We are excited about our announced acquisition of Suncrest Bank and the opportunities it provides to expand into the Sacramento market as well as to solidify our significant position in the Central Valley.

CitizensTrust, our wealth management division that provides trust, investment, and brokerage- related services, as well as financial, estate, and business succession planning, had approximately $3.28 billion in assets under management and administration, including $2.39 billion in assets under management, at quarter end.

Shares of CVB Financial Corp. common stock are listed on the 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 the website under the "Investors" tab.

On behalf of our Board of Directors and all of our hard-working associates, we thank our customers and shareholders for their continued loyalty and support. Please stay healthy and safe.

President & Chief Executive Officer

CVB Financial Corp., Citizens Business Bank

#1 Best Bank	Five-Star	Super Premier
IN AMERICA	SUPERIOR RATING	PERFORMING BANK
Forbes, 2021	BauerFinancial, 2020	Findley Reports, 2020

Board of Directors
Raymond V. O'Brien III	George A. Borba
Chairman	Vice Chairman
David A. Brager	Kristina M. Leslie
President and CEO	Director
Stephen A. Del Guercio	Jane Olvera
Director	Director
Anna Kan	Hal W. Oswalt
Director	Director
Marshall V. Laitsch	Rodrigo Guerra, Jr.
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 Operations Officer	EVP, Chief Credit Officer
R. Daniel Banis	Yamynn De Angelis
EVP, CitizensTrust	EVP, Chief Risk Officer
Ted J. Dondanville	Hector G. Gutierrez, Esq.
EVP, Banking Division	EVP, Deputy Chief Credit Officer
Susan M. Mlot	Timothy B. Noone
EVP, Head of Operations	EVP, Specialty Banking
Richard H. Wohl	Elsa I. Zavala
EVP, General Counsel	EVP, Chief Information Security Officer
G. Larry Zivelonghi	Jeffrey S. Boyer
EVP, Dairy & Livestock Industries	SVP, Los Angeles Region-North
Michael K. Currie	Gilbert W. Estrada
SVP, Chief Information Officer	SVP, Inland Empire Region
Donald E. Evenson	Richard M. Favor
SVP, Chief Investment Officer	SVP, Central Coast Region
Deborah G. Gallagher	Derrick I. Hong
SVP, SBA Group	SVP, Chief Audit Executive
Joyce Y. Kwon	Daniel Limon
SVP, Director of Human Resources	SVP, Specialty Lending Group
Michael B. Mulcahy	Mark C. Richardson
SVP, Los Angeles Region-Metro	SVP, Real Estate Banking
LaVon M. Short	Michael D. Stain
SVP, Director of Treasury	SVP, Central Valley Region
Management and Marketing	Robert E. Zeltner
David S. Stong
SVP, Orange County Region
SVP, San Diego Region

128

consecutive quarters of cash dividends paid

178

consecutive quarters

of profitability

$49.8 million

net income

as of 9.30.21

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 over $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 through over 50 banking centers and 3 trust office locations serving the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California.

Condensed Consolidated Balance Sheets

	(Dollars in thousands, except share amounts)	September 30,			December 31,
	(Unaudited)		2021				2020
Assets
	Cash and due from banks	$	159,563	$	122,305
	Interest-earning balances due from Federal Reserve			2,401,800				1,835,855
	Total cash and cash equivalents			2,561,363				1,958,160
	Interest-earning balances due from depository institutions		27,260				43,563
	Investment securities available-for-sale, at fair value
	(with amortized cost of $2,916,300 at September 30, 2021,
	and $2,344,174 at December 31, 2020)		2,925,060				2,398,923
	Investment securities held-to-maturity (with fair value of
	$1,717,230 at September 30, 2021, and $604,223 at
	December 31, 2020)			1,710,938				578,626
	Total investment securities			4,635,998				2,977,549
	Investment in stock of Federal Home Loan Bank (FHLB)		17,688				17,688
	Loans and lease finance receivables		7,849,520				8,348,808
	Allowance for credit losses		(65,364)				(93,692)
	Net loans and lease finance receivables			7,784,156				8,255,116
	Premises and equipment, net		49,812				51,144
	Bank owned life insurance (BOLI)		251,781				226,818
	Accrued interest receivable		30,253				31,306
	Intangibles		27,286				33,634
	Goodwill		663,707				663,707
	Other real estate owned (OREO)		-				3,392
	Income taxes		36,870				29,540
	Other assets			115,424				127,697
	Total assets		$	16,201,598		$	14,419,314
Liabilities and Stockholders' Equity
	Liabilities:
	Deposits:
	Noninterest-bearing	$	8,310,709	$	7,455,387
	Interest-bearing			4,619,507				4,281,114
	Total deposits			12,930,216				11,736,501
	Customer repurchase agreements		659,579				439,406
	Other borrowings		-				5,000
	Deferred compensation		20,675				21,611
	Junior subordinated debentures		-				25,774
	Payable for securities purchased		421,751				60,113
	Other liabilities		105,457				122,919
	Total liabilities			14,137,678				12,411,324
Commitments and Contingencies
Stockholders' Equity
	Common stock, authorized, 225,000,000 shares without
	par; issued and outstanding 135,516,404 at September
	30, 2021, and 135,600,501 at December 31, 2020		1,208,569				1,211,780
	Retained earnings		852,273				760,861
	Accumulated other comprehensive income, net of tax			3,078				35,349
	Total stockholders' equity			2,063,920
					2,007,990
	Total liabilities and stockholders' equity		$	16,201,598		$	14,419,314

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

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)	Three Months Ended September 30,
(Unaudited)		2021			2020
Interest income:
Loans and leases, including fees	$	88,390		$	94,200
Investment securities:
Investment securities available-for-sale		9,813			8,447
Investment securities held-to-maturity		5,188			3,375
Total investment income		15,001
			11,822
Dividends from FHLB stock		258			215
Interest-earning deposits with other institutions		898			389
Total interest income		104,547			106,626
Interest expense:
Deposits		1,113			2,958
Borrowings and customer repurchase agreements		135			232
Junior subordinated debentures		-			111
Total interest expense		1,248
			3,301
Net interest income before (recapture of) provision for
credit losses		103,299			103,325
(Recapture of) provision for credit losses		(4,000)			-
Net interest income after (recapture of) provision
for credit losses		107,299			103,325
Noninterest income:
Service charges on deposit accounts		4,513			3,970
Trust and investment services		2,681			2,405
Bankcard services		479			456
BOLI income		1,229			1,469
Gain on OREO, net		-			13
Gain on sale of building, net		-			1,680
Other		1,581			3,160
Total noninterest income		10,483			13,153
Noninterest expense:
Salaries and employee benefits		29,741			31,034
Occupancy and equipment		5,122			5,275
Professional services		1,626			2,019
Computer software expense		3,020			2,837
Marketing and promotion		857			728
Amortization of intangible assets		2,014			2,292
(Recapture of) provision for unfunded loan commitments		-			-
Acquisition related expenses		809			-
Other		4,910			5,403
Total noninterest expense		48,099			49,588
Earnings before income taxes		69,683			66,890
Income taxes		19,930			19,398
Net earnings	$	49,753		$	47,492
Basic earnings per common share		$0.37			$0.35
Diluted earnings per common share		$0.37			$0.35
Cash dividends declared per common share		$0.18			$0.18

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