CVB Financial : Statement of Condition - Q3 2023

STATEMENT OF

CONDITION

September 30, 2023

President's Message

CVB Financial Corp. (CVBF) reported net earnings of $57.9 million for the quarter ended September 30, 2023, compared with $55.8 million for the second quarter of 2023. We announced our 186th consecutive quarter of profitability and our 136th consecutive quarter paying a cash dividend to our shareholders. We continued our long history of producing solid quarterly earnings and returns on capital in the third quarter.

Our pretax pre-provision income for the third quarter of 2023 was $82.6 million, compared with $78 million for the second quarter of 2023. This growth in earnings reflects the positive operating leverage we generated this past quarter, with total revenue growing by 4.2% compared to expense growth of 1.9%. We continue to be among the industry leaders with respect to expense control with a 40% efficiency ratio for the third quarter and year-to-date 2023.

CitizensTrust, our wealth management division that provides trust, investment, and brokerage-related services, as well as financial, estate, and business succession planning, had approximately $3.92 billion in assets under management and administration, including $2.67 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.

We will continue to focus on banking the best small and medium sized businesses and their owners in California by providing outstanding service and a wide array of financial products. 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.

President & Chief Executive Officer

CVB Financial Corp., Citizens Business Bank

#1 Best Bank	Five-Star	Super Premier
IN AMERICA	SUPERIOR RATING	PERFORMING BANK
Forbes, 2023	BauerFinancial, 2023	Findley Reports, 2023

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.	Susan M. Mlot
EVP, Deputy Chief Credit Officer	EVP, Head of Operations
Timothy B. Noone	G. Larry Zivelonghi
EVP, Specialty Banking	EVP, Dairy & Livestock Industries
Jeffrey S. Boyer	Michael K. Currie
SVP, Los Angeles Region-North	SVP, Chief Information Officer
Gilbert W. Estrada	Donald E. Evenson
SVP, Inland Empire Region	SVP, Chief Investment Officer
Richard M. Favor	Deborah G. Gallagher
SVP, Central Coast Region	SVP, SBA Group
Derrick I. Hong	Joyce Y. Kwon
SVP, Chief Audit Executive	SVP, Director of Human Resources
Daniel Limon	Michael B. Mulcahy
SVP, Specialty Lending Group	SVP, Los Angeles Region-Metro
Rudy I. Ramirez	Mark C. Richardson
SVP,Chief Information SecurityOfficer	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

136

consecutive quarters of cash dividends paid

186

consecutive quarters

of profitability

$57.9 million

net income

as of 9.30.23

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 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.

Condensed Consolidated Balance Sheets

	(Dollars in thousands, except share amounts)	September 30,		December 31,
	(Unaudited)		2023		2022
Assets
	Cash and due from banks	$	176,488	$	158,236
	Interest-earning balances due from Federal Reserve		64,207		45,225
	Total cash and cash equivalents		240,695		203,461
	Interest-earning balances due from depository institutions		4,108		9,553
	Investment securities available-for-sale, at fair value
	(with amortized cost of $3,526,455 at September 30, 2023,
	and $3,755,297 at December 31, 2022)		2,873,163		3,255,211
	Investment securities held-to-maturity (with fair value of
	$1,969,318 at September 30, 2023, and $2,155,587 at
	December 31, 2022)		2,489,441		2,554,301
	Total investment securities		5,362,604		5,809,512
	Investment in stock of Federal Home Loan Bank (FHLB)		18,012		27,627
	Loans and lease finance receivables		8,877,632		9,079,392
	Allowance for credit losses		(88,995)		(85,117)
	Net loans and lease finance receivables		8,788,637		8,994,275
	Premises and equipment, net		44,561		46,698
	Bank owned life insurance (BOLI)		259,468		255,528
	Accrued interest receivable		45,341		46,692
	Intangibles		16,736		21,742
	Goodwill		765,822		765,822
	Income taxes		214,506		186,684
	Other assets		142,525		108,946
	Total assets	$	15,903,015	$	16,476,540
Liabilities and Stockholders' Equity
	Liabilities:
	Deposits:
	Noninterest-bearing	$	7,586,649	$	8,164,364
	Interest-bearing		4,772,137		4,671,881
	Total deposits		12,358,786		12,836,245
	Customer repurchase agreements		269,552		565,431
	Other borrowings		1,120,000		995,000
	Deferred compensation		22,130		22,092
	Other liabilities		181,146		109,255
	Total liabilities		13,951,614		14,528,023
Commitments and Contingencies
Stockholders' Equity
	Common stock, authorized, 225,000,000 shares without
	par; issued and outstanding 139,337,699 at September 30,
	2023, and 139,818,703 at December 31, 2022		1,286,460		1,300,466
	Retained earnings		1,092,079		1,002,847
	Accumulated other comprehensive loss, net of tax		(427,138)		(354,796)
	Total stockholders' equity		1,951,401		1,948,517
	Total liabilities and stockholders' equity	$	15,903,015	$	16,476,540

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)	Three Months	Ended September 30,
(Unaudited)		2023				2022
Interest income:
Loans and leases, including fees	$	113,190	$	100,077
Investment securities:
Investment securities available-for-sale		22,441				18,543
Investment securities held-to-maturity		13,576				12,834
Total investment income		36,017
				31,377
Dividends from FHLB stock		598				258
Interest-earning deposits with other institutions		6,422				3,476
Total interest income		156,227				135,188
Interest expense:
Deposits		16,517				1,728
Borrowings and customer repurchase agreements		16,339				122
Total interest expense		32,856				1,850
Net interest income before provision for credit losses		123,371				133,338
Provision for credit losses		2,000				2,000
Net interest income after provision for credit losses		121,371				131,338
Noninterest income:
Service charges on deposit accounts		5,062				5,233
Trust and investment services		3,246				2,867
Bankcard services		354				376
BOLI income		1,548				1,987
Other		4,099				1,127
Total noninterest income		14,309
				11,590
Noninterest expense:
Salaries and employee benefits		34,744				33,233
Occupancy and equipment		5,618				5,779
Professional services		2,117				2,438
Computer software expense		3,648				3,243
Marketing and promotion		1,628				1,488
(Recapture of) provision for unfunded loan commitments		(900)				-
Amortization of intangible assets		1,567				1,846
Other		6,636				5,000
Total noninterest expense		55,058				53,027
Earnings before income taxes		80,622				89,901
Income taxes		22,735				25,262
Net earnings	$	57,887	$	64,639
Basic earnings per common share	$	0.42	$	0.46
Diluted earnings per common share	$	0.42		$	0.46
Cash dividends declared per common share	$	0.20	$	0.20

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

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