CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (the “Company”), announced earnings for the quarter
ended September 30, 2022.
CVB Financial Corp. reported net income of $64.6 million for the
quarter ended September 30, 2022, compared with $59.1 million for
the second quarter of 2022 and $49.8 million for the third quarter
of 2021. Diluted earnings per share were $0.46 for the third
quarter, compared to $0.42 for the prior quarter and $0.37 for the
same period last year. Pretax pre-provision income grew from $85.7
million for the second quarter of 2022 to $91.9 million in the
third quarter. The third quarter of 2022 included $2.0 million in
provision for credit losses, compared to $3.6 million in provision
for the second quarter and a provision recapture of $4.0 million in
the third quarter of 2021. Net income of $64.6 million for the
third quarter of 2022 produced an annualized return on average
equity (“ROAE”) of 12.72%, an annualized return on average tangible
common equity (“ROATCE”) of 21.34%, and an annualized return on
average assets (“ROAA”) of 1.52%. Our net interest margin, tax
equivalent (“NIM”), was 3.46% for the third quarter of 2022, while
our efficiency ratio was 36.59%.
David Brager, President and Chief Executive Officer of Citizens
Business Bank, commented, “We produced approximately $92 million in
pretax pre-provision income during the third quarter of 2022, which
is a 7% increase from the second quarter. The combination of strong
loan growth, expansion of our net interest margin, and our
continuing efforts to closely manage expenses in the face of
significant inflationary pressure resulted in a record level of
quarterly pretax pre-provision income. This growth supported a 5%
increase in our quarterly dividend for the third quarter, which
represented a dividend payout ratio of 43% and is our second
increase in our quarterly dividend in 2022. We continue to focus on
executing on our core strategies and supporting our customers
through these unpredictable times and I would like to thank our
associates, customers, and shareholders for their commitment and
support.”
INCOME STATEMENT HIGHLIGHTS
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
|
(Dollars in
thousands, except per share amounts) |
Net interest income |
$ |
133,338 |
|
|
$ |
121,940 |
|
|
$ |
103,299 |
|
|
$ |
368,118 |
|
|
$ |
312,155 |
|
(Provision
for) recapture of credit losses |
|
(2,000 |
) |
|
|
(3,600 |
) |
|
|
4,000 |
|
|
|
(8,100 |
) |
|
|
25,500 |
|
Noninterest
income |
|
11,590 |
|
|
|
14,670 |
|
|
|
10,483 |
|
|
|
37,524 |
|
|
|
35,000 |
|
Noninterest
expense |
|
(53,027 |
) |
|
|
(50,871 |
) |
|
|
(48,099 |
) |
|
|
(162,136 |
) |
|
|
(141,807 |
) |
Income
taxes |
|
(25,262 |
) |
|
|
(23,081 |
) |
|
|
(19,930 |
) |
|
|
(66,149 |
) |
|
|
(66,023 |
) |
Net earnings |
$ |
64,639 |
|
|
$ |
59,058 |
|
|
$ |
49,753 |
|
|
$ |
169,257 |
|
|
$ |
164,825 |
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
1.21 |
|
Diluted |
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
NIM |
|
3.46 |
% |
|
|
3.16 |
% |
|
|
2.89 |
% |
|
|
3.17 |
% |
|
|
3.04 |
% |
ROAA |
|
1.52 |
% |
|
|
1.39 |
% |
|
|
1.26 |
% |
|
|
1.32 |
% |
|
|
1.46 |
% |
ROAE |
|
12.72 |
% |
|
|
11.33 |
% |
|
|
9.49 |
% |
|
|
10.69 |
% |
|
|
10.73 |
% |
ROATCE |
|
21.34 |
% |
|
|
18.67 |
% |
|
|
14.62 |
% |
|
|
17.48 |
% |
|
|
16.64 |
% |
Efficiency
ratio |
|
36.59 |
% |
|
|
37.24 |
% |
|
|
42.27 |
% |
|
|
39.97 |
% |
|
|
40.85 |
% |
Noninterest
expense to average assets, annualized |
|
1.25 |
% |
|
|
1.20 |
% |
|
|
1.22 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest IncomeNet interest income was
$133.3 million for the third quarter of 2022. This represented an
$11.4 million, or 9.35%, increase from the second quarter of 2022,
and a $30.0 million, or 29.08%, increase from the third quarter of
2021. The quarter-over-quarter growth in net interest income was
primarily due to the expansion of the net interest margin from
3.16% in the second quarter of 2022 to 3.46% for the third quarter
of 2022. Total interest income was $135.2 million for the third
quarter of 2022, which was $11.9 million, or 9.68%, higher than the
second quarter of 2022 and $30.6 million, or 29.31%, higher than
the same period last year. The increase in interest income from the
second quarter of 2022 to the third quarter was primarily the
result of a 31 basis point expansion in earning asset yield.
Interest expense increased $528,000, from the prior quarter, due to
a 4 basis point increase in cost of interest bearing deposits. In
comparison to the third quarter of 2021, interest income grew in
the most recent quarter through a combination of $981.8 million of
growth in average earnings assets and net interest margin expansion
of 57 basis points. Year-over-year earning asset growth resulted
from both the acquisition of Suncrest Bank (“Suncrest”) on January
7, 2022, in addition to core loan growth and more than a $1.9
billion increase in the investment portfolio over the prior year
quarter. Average interest-bearing deposits grew by approximately
$501.4 million, including $670 million resulting from the Suncrest
acquisition, with interest expense increasing $602,000, compared to
the third quarter of 2021. The year-over-year increase in interest
expense also resulted from modestly higher cost of funds, which
increased to 5 basis points for the third quarter of 2022 from 4
basis points for the third quarter of 2021.
Net Interest MarginOur tax equivalent net
interest margin was 3.46% for the third quarter of 2022, compared
to 3.16% for the second quarter of 2022 and 2.89% for the third
quarter of 2021. Higher yields on earning assets and a change in
the mix of our earning assets resulted in the higher net interest
margin. The 30 basis point increase in our net interest margin
compared to the second quarter of 2022, was primarily due to a 31
basis point increase in our earning asset yield. The increase in
the earning asset yield was due to a 25 basis point increase in
loan yields, a 19 basis point increase in security yields, and a
quarter-over-quarter change in the composition of average earning
assets, with loans growing from 55.49% to 56.55% of earnings
assets, while funds held at the Federal Reserve declined from 5.1%
to 4.1%. The 57 basis point increase in net interest margin,
compared to the third quarter of 2021 was primarily the result of a
59 basis point increase in earning asset yield. The increase in
earning asset yield was impacted by a change in asset mix and
higher yields on loans and investment securities. Loan yields grew
from 4.43% for the third quarter of 2021 to 4.56% for the third
quarter of 2022. Likewise, the yield on investment securities
increased by 58 basis points from the prior year quarter. Excess
liquidity held at the Federal Reserve was invested into higher
yielding investments, which increased to 39.22% of earning assets
on average for the third quarter of 2022 from 28.55% for the third
quarter of 2021. Loan balances grew to 56.55% of earning assets on
average for the third quarter of 2022, compared to 54.97% for the
third quarter of 2021. The average balance of deposits at the
Federal Reserve declined from 16.17% for the third quarter of 2021
to 4.07% in the most recent quarter. Total cost of funds of 0.05%
for the third quarter of 2022 increased from 0.04% for the second
quarter of 2022 and increased from 0.04% for the year ago quarter.
The 1 basis point increase in the cost of funds from the second
quarter of 2022 was the net result of an increase in the cost of
interest-bearing deposits from 0.09% to 0.13% and an $86.9 million
quarter-over-quarter increase in average noninterest-bearing
deposits. Compared to the third quarter of 2021, the 1 basis point
increase in cost of funds was the result of a 4 basis point
increase in the cost of interest bearing deposits, as well as
noninterest-bearing deposits growing on average by $1.02 billion.
On average, noninterest-bearing deposits were 63.38% of total
deposits during the most recent quarter.
Earning Asset and Deposit GrowthOn average,
earning assets declined by $176.6 million and grew by $981.8
million, compared to the second quarter of 2022 and the third
quarter of 2021, respectively. The $176.6 million
quarter-over-quarter decline in earning assets resulted from a
$171.6 million decrease in interest-earning funds held at the
Federal Reserve and average investment securities declining by
$70.3 million, which was partially offset by average loans
increasing by $64.7 million. Compared to the third quarter of 2021,
average investments increased by $1.92 billion, while the average
amount of funds held at the Federal Reserve declined by more than
$1.7 billion. Average loans increased by $782.9 million from the
third quarter of 2021, which included approximately $775 million in
loans acquired from Suncrest on January 7, 2022 and a $463.6
million decrease in average PPP loans. Average loans grew by
approximately $471.5 million, when Suncrest and PPP loans are
excluded. Noninterest-bearing deposits grew on average by $86.9
million, or 0.97%, from the second quarter of 2022, while
interest-bearing deposits and customer repurchase agreements
declined on average by $109.3 million. Compared to the third
quarter of 2021, total deposits and customer repurchase agreements
grew on average by $1.4 billion, or 10.49%, including $1 billion in
growth in noninterest bearing deposits.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
SELECTED FINANCIAL HIGHLIGHTS |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
|
(Dollars in
thousands) |
Yield on average investment securities (TE) |
|
2.12% |
|
|
1.93% |
|
|
1.54% |
Yield on average loans |
|
4.56% |
|
|
4.31% |
|
|
4.43% |
Core Loan Yield [1] |
|
4.42% |
|
|
4.20% |
|
|
4.14% |
Yield on average earning assets (TE) |
|
3.51% |
|
|
3.20% |
|
|
2.92% |
Cost of funds |
|
0.05% |
|
|
0.04% |
|
|
0.04% |
Net interest margin (TE) |
|
3.46% |
|
|
3.16% |
|
|
2.89% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
|
Avg |
|
% of Total |
|
Total investment securities |
$ |
6,033,696 |
|
|
39.22 |
% |
|
$ |
6,104,037 |
|
|
39.23 |
% |
|
$ |
4,112,147 |
|
|
28.55 |
% |
|
Interest-earning deposits with other institutions |
|
633,152 |
|
|
4.12 |
% |
|
|
804,147 |
|
|
5.17 |
% |
|
|
2,356,121 |
|
|
16.36 |
% |
|
Loans |
|
8,699,303 |
|
|
56.55 |
% |
|
|
8,634,575 |
|
|
55.49 |
% |
|
|
7,916,443 |
|
|
54.97 |
% |
|
Total
interest-earning assets |
|
15,384,163 |
|
|
|
|
|
15,560,771 |
|
|
|
|
|
14,402,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Represents yield
on average loans excluding the impact of discount accretion and PPP
loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit Losses The third quarter
of 2022 included $2.0 million in provision for credit losses,
compared to a $3.6 million in provision for credit losses in the
second quarter of 2022. A $4.0 million recapture of provision for
credit losses was recorded in the third quarter of 2021. The $2.0
million provision for credit losses in the most recent quarter was
the result of approximately $132 million in core loan growth during
the quarter and an increase in projected loss rates from a
deteriorating economic forecast that assumes a modest recession in
early 2023 and modest GDP growth through 2024, as well as lower
commercial real estate values and an increase in unemployment. Our
forecast reflects GDP growth of 0.4% in 2023 and 1.6% in 2024.
Unemployment is forecasted to exceed 5% in 2023 and 2024. The
increase in loss rates resulting from the change in forecasted
macroeconomic variables, were partially offset by reductions in the
expected loss on individually evaluated loans established for
certain purchased credit deteriorated (“PCD”) loans acquired from
Suncrest.
Noninterest IncomeNoninterest income was $11.6
million for the third quarter of 2022, compared with $14.7 million
for the second quarter of 2022 and $10.5 million for the third
quarter of 2021. Service charges on deposits were relatively flat
quarter-over-quarter and grew by $720,000, or 15.95% in comparison
to the third quarter of 2021. Third quarter income from Bank Owned
Life Insurance (“BOLI”) increased by $1.4 million from the second
quarter of 2022 and by $758,000 from the third quarter of 2021. The
third quarter of 2022 included $1.8 million in death benefits that
exceeded the asset value of certain BOLI policies. The second
quarter of 2022 included $2.7 million in net gains on the sale of
properties associated with banking centers, including $2.4 million
from the sale of one property. Income from various community
development investments declined by approximately $1.8 million,
quarter-over-quarter.
Noninterest ExpenseNoninterest expense for the
third quarter of 2022 was $53.0 million, compared to $50.9 million
for the second quarter of 2022 and $48.1 million for the third
quarter of 2021. The $2.2 million quarter-over-quarter increase
included a $1.7 million increase in salaries and employee benefits
as annual salary increases were effective in July. The $4.9 million
increase year-over-year includes expense growth associated with the
acquisition of Suncrest Bank and the remaining five banking centers
that were not consolidated during the second quarter. Compared to
the third quarter of 2021, staff related expenses increased by $3.5
million and occupancy and equipment expense grew by $657,000.
Professional service expense was $813,000 higher in the most recent
quarter, compared to the third quarter of 2021 due to higher
consulting expense and employee recruiting fees. There was no
acquisition expense related to the merger of Suncrest for the third
quarter of 2022, compared to $375,000 for the second quarter of
2022 and $809,000 for the third quarter of 2021. As a percentage of
average assets, noninterest expense was 1.25% for the third quarter
of 2022, compared to 1.20% for the second quarter of 2022 and 1.22%
for the third quarter of 2021. The efficiency ratio for the third
quarter of 2022 was 36.59%, compared to 37.24% for the second
quarter of 2022 and 42.27% for the third quarter of 2021.
Income Taxes Our effective tax rate for the
quarter ended September 30, 2022 and year-to-date was 28.10%,
compared with 28.60% for the third quarter of 2021. Our estimated
annual effective tax rate can vary depending upon the level of
tax-advantaged income as well as available tax credits.
BALANCE SHEET HIGHLIGHTS
AssetsThe Company reported total assets of
$16.35 billion at September 30, 2022. This represented a decrease
of $410.7 million, or 2.45%, from total assets of $16.76 billion at
June 30, 2022. Interest-earning assets of $14.81 billion at
September 30, 2022 decreased by $468.2 million, or 3.06%, when
compared with $15.28 billion at June 30, 2022. The decrease in
interest-earning assets was primarily due a $391.6 million decrease
in interest-earning balances due from the Federal Reserve and
$158.7 million decrease in investment securities, partially offset
by an $81.9 million increase in total loans.
Total assets increased by $465.6 million, or 2.93%, from total
assets of $15.88 billion at December 31, 2021. Interest-earning
assets of $14.81 billion at September 30, 2022 increased by $127.6
million, or 0.87%, when compared with $14.68 billion at December
31, 2021. The increase in interest-earning assets was primarily due
to a $769.9 million increase in investment securities and an $886.4
million increase in total loans, partially offset by a $1.51
billion decrease in interest-earning balances due from the Federal
Reserve.
Total assets at September 30, 2022 increased by $147.7 million,
or 0.91%, from total assets of $16.20 billion at September 30,
2021. Interest-earning assets decreased by $120.9 million, or
0.81%, when compared with $14.93 billion at September 30, 2021. The
decrease in interest-earning assets included a $2.27 billion
decrease in interest-earning balances due from the Federal Reserve,
partially offset by a $1.24 billion increase in investment
securities, and a $924.6 million increase in total loans. The
increase in total loans included a $313.6 million decrease in PPP
loans with a remaining outstanding balance totaling $17.3 million
as of September 30, 2022. Excluding PPP loans, total loans
increased by $1.24 billion from September 30, 2021.
On January 7, 2022, we completed the acquisition of Suncrest
with approximately $1.4 billion in total assets, acquired at fair
value, and 7 banking centers, two of which were consolidated at the
end of the second quarter of 2022. The increase in total assets at
September 30, 2022 included $765.9 million of acquired net loans,
$131 million of investment securities, and $9 million in bank-owned
life insurance. The acquisition resulted in $102.1 million of
goodwill and $3.9 million in core deposit premium. Net cash
proceeds were used to fund the $39.6 million in cash paid to the
former shareholders of Suncrest as part of the merger
consideration.
Investment SecuritiesTotal investment
securities were $5.88 billion at September 30, 2022, a decrease of
$158.7 million, or 2.63% from June 30, 2022, an increase of $769.9
million, or 15.07%, from $5.11 billion at December 31, 2021 and an
increase of $1.24 billion, or 26.83%, from $4.64 billion at
September 30, 2021.
At September 30, 2022, investment securities held-to-maturity
(“HTM”) totaled $2.56 billion, an increase of $145.6, or 6.04% from
June 30, 2022, an increase of $632 million, or 32.81%, from
December 31, 2021, and an $847 million increase, or 49.50%, from
September 30, 2021.
At September 30, 2022, investment securities available-for-sale
(“AFS”) totaled $3.32 billion, inclusive of a pre-tax net
unrealized loss of $540.4 million. AFS securities decreased by
$304.3 million, or 8.39% from June 30, 2022, increased by $137.9
million, or 4.33%, from $3.18 billion at December 31, 2021, and
increased by $396.8 million, or 13.56%, from September 30,
2021.
Combined, the AFS and HTM investments in mortgage backed
securities (“MBS”) and collateralized mortgage obligations (“CMO”)
totaled $4.86 billion or approximately 83% of the total investment
securities at September 30, 2022. Virtually all of our MBS and CMO
are issued or guaranteed by government or government sponsored
enterprises, which have the implied guarantee of the U.S.
Government. In addition, we had $555.8 million of Government Agency
securities (HTM) at September 30, 2022, that represent
approximately 9% of the total investment securities.
Our combined AFS and HTM municipal securities totaled $467.8
million as of September 30, 2022, or approximately 8% of our total
investment portfolio. These securities are located in 35 states.
Our largest concentrations of holdings by state, as a percentage of
total municipal bonds, are located in Texas at 15.13%, Minnesota at
11.34%, California at 9.59%, Ohio at 6.93%, Massachusetts at 6.61%,
and Washington at 6.19%.
LoansTotal loans and leases, at amortized cost,
of $8.77 billion at September 30, 2022 increased by $81.9 million,
or 0.94%, from June 30, 2022. After adjusting for PPP loans, our
core loans grew by $131.5 million, or approximately 6% annualized
from the end of the second quarter. The $131.5 million core loan
growth quarter-over-quarter included $49.5 million in dairy &
livestock and agribusiness loans, $41.6 million in commercial real
estate loans, $15.9 million in construction loans, $12.2 million in
municipal lease financings, and $10.6 million in commercial and
industrial loans.
Total loans and leases increased by $886.4 million, or 11.24%,
from December 31, 2021. The increase in total loans included $774.5
million of loans acquired from Suncrest in the first quarter of
2022. After adjusting for acquired loans, seasonality and
forgiveness of PPP loans, our core loans grew by $407.8 million, or
approximately 7% annualized from December 31. 2021. The $407.8
million core loan growth included $314.7 million in commercial real
estate loans, $54.7 million in commercial and industrial loans,
$22.7 million in SFR mortgage loans, $13.4 million in municipal
lease financings, $8.4 million in agribusiness loans, and $8.4
million in consumer and other loans, partially offset by decreases
of $12.0 million in SBA loans, and $2.5 million in construction
loans.
Total loans and leases increased by $924.6 million, or 11.78%,
from September 30, 2021. Total loans, excluding PPP loans, grew by
$1.24 billion, or 16.47%, from the end of the third quarter of
2021. After adjusting for acquired loans and forgiveness of PPP
loans, our core loans grew by $503.3 million, or approximately 7%,
from the end of the third quarter of 2021. Commercial real estate
loans grew by $369.7 million, commercial and industrial loans
increased $97.8 million, SFR mortgage loans increased by $32.1
million, dairy & livestock and agribusiness loans increased by
$28.0 million, municipal lease financings increased by $12.0
million, and consumer and other loans increased by $12.3 million.
This core loan growth was offset by decreases of $31.0 million in
SBA loans and $17.7 million in construction loans.
Asset QualityDuring the third quarter of 2022,
we experienced credit charge-offs of $46,000 and total recoveries
of $425,000, resulting in net recoveries of $379,000. The allowance
for credit losses (“ACL”) totaled $82.6 million at September 30,
2022, compared to $80.2 million at June 30, 2022 and $65.4 million
at September 30, 2021. The ACL was increased by $17.6 million in
2022, including an $8.6 million increase on January 7 for the
acquired Suncrest PCD loans and $8.1 million in provision for
credit losses for non-PCD loans. At September 30, 2022, ACL as a
percentage of total loans and leases outstanding was 0.94%. This
compares to 0.92% and 0.83% at June 30, 2022 and September 30,
2021, respectively. When PPP loans are excluded, the ACL as a
percentage of total loans and leases outstanding was 0.94% at
September 30, 2022, compared to 0.93% at June 30, 2022 and 0.87% at
September 30, 2021.
Nonperforming loans, defined as nonaccrual loans and loans 90
days past due accruing interest plus nonperforming TDR loans, and
nonperforming assets, defined as nonaccrual loans and loans 90 days
past due accruing interest plus OREO, are highlighted below.
Nonperforming Assets and Delinquency Trends |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
|
|
|
Nonperforming loans |
|
(Dollars in
thousands) |
Commercial real estate |
|
$ |
6,705 |
|
|
$ |
6,843 |
|
|
$ |
4,073 |
|
SBA |
|
|
1,065 |
|
|
|
1,075 |
|
|
|
1,513 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
1,308 |
|
|
|
1,655 |
|
|
|
2,038 |
|
Dairy & livestock and agribusiness |
|
|
1,007 |
|
|
|
3,354 |
|
|
|
118 |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
399 |
|
Consumer and other loans |
|
|
32 |
|
|
|
37 |
|
|
|
305 |
|
Total |
|
$ |
10,117 |
|
|
$ |
12,964 |
|
|
$ |
8,446 |
|
% of Total loans |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.11 |
% |
OREO |
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
10,117 |
|
|
$ |
12,964 |
|
|
$ |
8,446 |
|
% of
Nonperforming assets to total assets |
|
|
0.06 |
% |
|
|
0.08 |
% |
|
|
0.05 |
% |
|
|
|
|
|
|
|
Past
due 30-89 days |
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
- |
|
|
|
- |
|
|
|
122 |
|
Dairy & livestock and agribusiness |
|
|
- |
|
|
|
- |
|
|
|
1,000 |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Consumer and other loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
1,122 |
|
% of Total loans |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
Classified Loans |
|
$ |
63,651 |
|
|
$ |
76,170 |
|
|
$ |
49,755 |
|
|
Of the $10.1 million in nonperforming loans, $4.5 million were
acquired from Suncrest. The decrease of $2.3 million in dairy &
livestock and agribusiness loans was primarily related to the
payoff of PCD loans acquired from Suncrest. Classified loans are
loans that are graded “substandard” or worse. Classified loans
decreased $12.5 million quarter-over-quarter. Total classified
loans at September 30, 2022 included $14.4 million of classified
loans acquired from Suncrest. Excluding the $14.4 million of
acquired classified Suncrest loans, classified loans decreased $9.1
million quarter-over-quarter and included an $8.1 million decrease
in classified commercial real estate loans and a $4.3 million
decrease in classified SBA loans, offset by increases of $1.9
million in classified dairy & livestock and agribusiness loans
and $1.4 million in classified commercial and industrial loans.
Deposits & Customer Repurchase
AgreementsDeposits of $13.87 billion and customer
repurchase agreements of $467.8 million totaled $14.34 billion at
September 30, 2022. This represented a decrease of $234.8 million,
or 1.61%, when compared with $14.58 billion at June 30, 2022. Total
deposits and customer repurchase agreements increased $721.4
million, or 5.30% when compared to $13.62 billion at December 31,
2021, or 5.52% when compared with $13.59 billion at September 30,
2021.
Noninterest-bearing deposits were $8.77 billion at September 30,
2022, a decrease of $116.7 million, or 1.31%, when compared to
$8.88 billion at June 30, 2022. Noninterest-bearing deposits
increased $660.5 million, or 8.15% when compared to $8.10 billion
at December 31, 2021 and increased $453.8 million, or 5.46%, when
compared to $8.31 billion at September 30, 2021. At September 30,
2022, noninterest-bearing deposits were 63.18% of total deposits,
compared to 63.11% at June 30, 2022, 62.45% at December 31, 2021,
and 64.27% at September 30, 2021.
CapitalThe Company’s total equity was $1.88
billion at September 30, 2022. This represented an overall decrease
of $202.6 million from total equity of $2.08 billion at December
31, 2021. Increases to equity included $197.1 million for issuance
of 8.6 million shares to acquire Suncrest and $169.3 million in net
earnings. Decreases included $80.2 million in cash dividends and a
$379.5 million decrease in other comprehensive income from the tax
effected impact of the decline in market value of
available-for-sale securities. During 2022, we executed on a $70
million accelerated stock repurchase program and retired 2,993,551
shares of common stock at an average price of $23.38. We also
repurchased, under our 10b5-1 stock repurchase plan, 1,914,590
shares of common stock, at an average repurchase price of $23.43,
totaling $44.9 million. Our tangible book value per share at
September 30, 2022 was $7.79.
Our capital ratios under the revised capital framework referred
to as Basel III remain well-above regulatory standards.
|
|
|
|
CVB Financial Corp. Consolidated |
|
Capital Ratios |
|
Minimum Required Plus Capital Conservation
Buffer |
|
September 30, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage capital ratio |
|
4.0% |
|
9.1% |
|
9.2% |
|
9.2% |
|
Common
equity Tier 1 capital ratio |
|
7.0% |
|
13.5% |
|
14.9% |
|
14.9% |
|
Tier 1
risk-based capital ratio |
|
8.5% |
|
13.5% |
|
14.9% |
|
14.9% |
|
Total
risk-based capital ratio |
|
10.5% |
|
14.3% |
|
15.6% |
|
15.7% |
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
7.0% |
|
9.2% |
|
8.9% |
|
|
|
|
|
|
|
|
|
|
|
CitizensTrustAs of September 30, 2022
CitizensTrust had approximately $2.6 billion in assets under
management and administration, including $1.72 billion in assets
under management. Revenues were $2.9 million for the third quarter
of 2022 and $8.7 million for the nine months ended September 30,
2022, compared to $2.7 million and $8.5 million, respectively, for
the same periods of 2021. CitizensTrust provides trust, investment
and brokerage related services, as well as financial, estate and
business succession planning.
Corporate OverviewCVB 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 $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 4 trust office
locations serving California.
Shares of CVB Financial Corp. common stock are listed on the
NASDAQ under the ticker symbol “CVBF”. For investor information on
CVB Financial Corp., visit our Citizens Business Bank website at
www.cbbank.com and click on the “Investors” tab.
Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30
a.m. EDT on Thursday, October 20, 2022 to discuss the Company’s
third quarter 2022 financial results. The conference call can be
accessed live by registering at:
https://register.vevent.com/register/BI3576222718e14e9c87c7145dbbc0ffe5
The conference call will also be simultaneously webcast over the
Internet; please visit our Citizens Business Bank website at
www.cbbank.com and click on the “Investors” tab to access the call
from the site. Please access the website 15 minutes prior to the
call to download any necessary audio software. This webcast will be
recorded and available for replay on the Company’s website
approximately two hours after the conclusion of the conference
call, and will be available on the website for approximately 12
months.
Safe HarborCertain statements set forth herein
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as
“will likely result”, “aims”, “anticipates”, “believes”, “could”,
“estimates”, “expects”, “hopes”, “intends”, “may”, “plans”,
“projects”, “seeks”, “should”, “will,” “strategy”, “possibility”,
and variations of these words and similar expressions help to
identify these forward-looking statements, which involve risks and
uncertainties that could cause our actual results or performance to
differ materially from those projected. These forward-looking
statements are based on management’s current expectations and
beliefs concerning future developments and their potential effects
on the Company including, without limitation, plans, strategies and
goals, and statements about the Company’s outlook regarding revenue
and asset growth, financial performance and profitability, loan and
deposit growth, yields and returns, loan diversification and credit
management, stockholder value creation, tax rates, and the impact
of acquisitions we have made or may make. Such statements involve
inherent risks and uncertainties, many of which are difficult to
predict and are generally beyond the control of the Company, and
there can be no assurance that future developments affecting the
Company will be the same as those anticipated by management. The
Company cautions readers that a number of important factors in
addition to those set forth below could cause actual results to
differ materially from those expressed in, or implied or projected
by, such forward-looking statements.
Given the ongoing and dynamic nature of the COVID-19 pandemic,
the ultimate extent of the impacts on our business, financial
position, results of operations, liquidity, workforce, operating
platform and prospects remain uncertain. In addition, changes to
statutes, regulations, or regulatory policies or practices as a
result of, or in response to the COVID-19 pandemic, could affect us
in substantial and unpredictable ways.
General risks and uncertainties include, but are not limited to,
the following: the strength of the United States economy in general
and the strength of the local economies in which we conduct
business; the effects of, and changes in, trade, monetary, and
fiscal policies and laws, including interest rate policies of the
Board of Governors of the Federal Reserve System;
inflation/deflation, interest rate, market, and monetary
fluctuations; the effect of acquisitions we have made or may make,
including, without limitation, the failure to obtain the necessary
regulatory approvals, the failure to achieve the expected revenue
growth and/or expense savings from such acquisitions, and/or the
failure to effectively integrate an acquisition target into our
operations; the timely development of competitive new products and
services and the acceptance of these products and services by new
and existing customers; the impact of changes in financial services
policies, laws, and regulations, including those concerning taxes,
banking, securities, and insurance, and the application thereof by
regulatory bodies; the effectiveness of our risk management
framework and quantitative models; changes in the levels of our
nonperforming assets and charge-offs; the transition away from USD
LIBOR and uncertainties regarding potential alternative reference
rates, including SOFR; the effect of changes in accounting policies
and practices or accounting standards, as may be adopted from
time-to-time by bank regulatory agencies, the U.S. Securities and
Exchange Commission (“SEC”), the Public Company Accounting
Oversight Board, the Financial Accounting Standards Board or other
accounting standards setters, including ASU 2016-13 (Topic 326),
“Measurement of Credit Losses on Financial Instruments,” commonly
referenced as the CECL model, which has changed how we estimate
credit losses and may further increase the required level of our
allowance for credit losses in future periods; possible credit
related impairments or declines in the fair value of securities
held by us; possible impairment charges to goodwill; changes in
consumer spending, borrowing, and savings habits; the effects of
our lack of a diversified loan portfolio, including the risks of
geographic and industry concentrations; periodic fluctuations in
commercial or residential real estate prices or values; our ability
to attract deposits and other sources of liquidity; the possibility
that we may reduce or discontinue the payments of dividends on our
common stock; changes in the financial performance and/or condition
of our borrowers; changes in the competitive environment among
financial and bank holding companies and other financial service
providers; technological changes in banking and financial services
, including alternative forms of payment or currency that could
result in the disintermediation of traditional banks; geopolitical
conditions, including acts or threats of terrorism, actions taken
by the United States or other governments in response to acts or
threats of terrorism, and/or military conflicts, which could impact
business and economic conditions in the United States and abroad;
catastrophic events or natural disasters, including earthquakes,
drought, climate change or extreme weather events that may affect
our assets, communications or computer services, customers,
employees or third party vendors; public health crises and
pandemics, such as the COVID-19 pandemic, and their effects on the
economic and business environments in which we operate, including
on our credit quality and business operations, as well as the
impact on general economic and financial market conditions;
cybersecurity and fraud risks and threats to the Company, our
vendors and our customers, and the costs of defending against them,
including the costs of compliance with potential legislation to
bolster cybersecurity at a state, national, or global level; our
ability to recruit and retain key executives, board members and
other employees, and changes in employment laws and regulations;
unanticipated regulatory or legal proceedings; and our ability to
manage the risks involved in the foregoing. Additional factors that
could cause actual results to differ materially from those
expressed in the forward-looking statements are discussed in the
Company's 2021 Annual Report on Form 10-K filed with the SEC and
available at the SEC’s Internet site (http://www.sec.gov).
The Company does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date
of such statements, except as required by law. Any statements about
future operating results, such as those concerning accretion and
dilution to the Company’s earnings or shareholders, are for
illustrative purposes only, are not forecasts, and actual results
may differ.
Non-GAAP Financial Measures — Certain financial
information provided in this presentation has not been prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”) and is presented on a non-GAAP basis. Investors and
analysts should refer to the reconciliations included in this
presentation and should consider the Company’s non-GAAP measures in
addition to, not as a substitute for or as superior to, measures
prepared in accordance with GAAP. These measures may or may not be
comparable to similarly titled measures used by other
companies.
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
September 30,2022 |
|
December 31,2021 |
|
September 30,2021 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
186,647 |
|
|
$ |
90,012 |
|
|
$ |
159,563 |
|
Interest-earning balances due from Federal Reserve |
|
|
131,892 |
|
|
|
1,642,536 |
|
|
|
2,401,800 |
|
Total cash and cash equivalents |
|
|
318,539 |
|
|
|
1,732,548 |
|
|
|
2,561,363 |
|
Interest-earning balances due from depository institutions |
|
|
7,594 |
|
|
|
25,999 |
|
|
|
27,260 |
|
Investment securities available-for-sale |
|
|
3,321,824 |
|
|
|
3,183,923 |
|
|
|
2,925,060 |
|
Investment securities held-to-maturity |
|
|
2,557,922 |
|
|
|
1,925,970 |
|
|
|
1,710,938 |
|
Total investment securities |
|
|
5,879,746 |
|
|
|
5,109,893 |
|
|
|
4,635,998 |
|
Investment in stock of Federal Home Loan Bank (FHLB) |
|
|
18,012 |
|
|
|
17,688 |
|
|
|
17,688 |
|
Loans and lease finance receivables |
|
|
8,774,136 |
|
|
|
7,887,713 |
|
|
|
7,849,520 |
|
Allowance for credit losses |
|
|
(82,601 |
) |
|
|
(65,019 |
) |
|
|
(65,364 |
) |
Net loans and lease finance receivables |
|
|
8,691,535 |
|
|
|
7,822,694 |
|
|
|
7,784,156 |
|
Premises and equipment, net |
|
|
47,422 |
|
|
|
49,096 |
|
|
|
49,812 |
|
Bank owned life insurance (BOLI) |
|
|
256,850 |
|
|
|
251,570 |
|
|
|
251,781 |
|
Intangibles |
|
|
23,466 |
|
|
|
25,394 |
|
|
|
27,286 |
|
Goodwill |
|
|
765,822 |
|
|
|
663,707 |
|
|
|
663,707 |
|
Other assets |
|
|
340,290 |
|
|
|
185,108 |
|
|
|
182,547 |
|
Total assets |
|
$ |
16,349,276 |
|
|
$ |
15,883,697 |
|
|
$ |
16,201,598 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
8,764,556 |
|
|
$ |
8,104,056 |
|
|
$ |
8,310,709 |
|
Investment checking |
|
|
751,618 |
|
|
|
655,333 |
|
|
|
594,347 |
|
Savings and money market |
|
|
3,991,531 |
|
|
|
3,889,371 |
|
|
|
3,680,721 |
|
Time deposits |
|
|
364,694 |
|
|
|
327,682 |
|
|
|
344,439 |
|
Total deposits |
|
|
13,872,399 |
|
|
|
12,976,442 |
|
|
|
12,930,216 |
|
Customer repurchase agreements |
|
|
467,844 |
|
|
|
642,388 |
|
|
|
659,579 |
|
Other borrowings |
|
|
- |
|
|
|
2,281 |
|
|
|
- |
|
Payable for securities purchased |
|
|
8,697 |
|
|
|
50,340 |
|
|
|
421,751 |
|
Other liabilities |
|
|
121,450 |
|
|
|
130,743 |
|
|
|
126,132 |
|
Total liabilities |
|
|
14,470,390 |
|
|
|
13,802,194 |
|
|
|
14,137,678 |
|
Stockholders' Equity |
|
|
|
|
|
|
Stockholders' equity |
|
|
2,262,383 |
|
|
|
2,085,471 |
|
|
|
2,060,842 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
|
(383,497 |
) |
|
|
(3,968 |
) |
|
|
3,078 |
|
Total stockholders' equity |
|
|
1,878,886 |
|
|
|
2,081,503 |
|
|
|
2,063,920 |
|
Total liabilities and stockholders'
equity |
|
$ |
16,349,276 |
|
|
$ |
15,883,697 |
|
|
$ |
16,201,598 |
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2022 |
|
September 30,2021 |
|
September 30,2022 |
|
September 30,2021 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
184,384 |
|
|
$ |
178,752 |
|
|
$ |
156,575 |
|
|
$ |
183,389 |
|
|
$ |
154,861 |
|
Interest-earning balances due from Federal Reserve |
|
|
625,705 |
|
|
|
797,268 |
|
|
|
2,328,745 |
|
|
|
1,021,676 |
|
|
|
1,890,160 |
|
Total cash and cash equivalents |
|
|
810,089 |
|
|
|
976,020 |
|
|
|
2,485,320 |
|
|
|
1,205,065 |
|
|
|
2,045,021 |
|
Interest-earning balances due from depository institutions |
|
|
7,447 |
|
|
|
6,879 |
|
|
|
27,376 |
|
|
|
9,130 |
|
|
|
32,074 |
|
Investment securities available-for-sale |
|
|
3,576,649 |
|
|
|
3,736,076 |
|
|
|
2,942,255 |
|
|
|
3,619,983 |
|
|
|
2,787,617 |
|
Investment securities held-to-maturity |
|
|
2,457,047 |
|
|
|
2,367,961 |
|
|
|
1,169,892 |
|
|
|
2,352,350 |
|
|
|
1,005,613 |
|
Total investment securities |
|
|
6,033,696 |
|
|
|
6,104,037 |
|
|
|
4,112,147 |
|
|
|
5,972,333 |
|
|
|
3,793,230 |
|
Investment in stock of FHLB |
|
|
18,012 |
|
|
|
18,012 |
|
|
|
17,688 |
|
|
|
18,315 |
|
|
|
17,688 |
|
Loans and lease finance receivables |
|
|
8,699,303 |
|
|
|
8,634,575 |
|
|
|
7,916,443 |
|
|
|
8,612,166 |
|
|
|
8,144,105 |
|
Allowance for credit losses |
|
|
(80,321 |
) |
|
|
(76,492 |
) |
|
|
(69,309 |
) |
|
|
(76,658 |
) |
|
|
(78,094 |
) |
Net loans and lease finance receivables |
|
|
8,618,982 |
|
|
|
8,558,083 |
|
|
|
7,847,134 |
|
|
|
8,535,508 |
|
|
|
8,066,011 |
|
Premises and equipment, net |
|
|
47,348 |
|
|
|
51,607 |
|
|
|
50,105 |
|
|
|
50,965 |
|
|
|
50,348 |
|
Bank owned life insurance (BOLI) |
|
|
259,631 |
|
|
|
259,500 |
|
|
|
251,099 |
|
|
|
259,643 |
|
|
|
239,137 |
|
Intangibles |
|
|
24,396 |
|
|
|
26,381 |
|
|
|
28,240 |
|
|
|
26,308 |
|
|
|
30,377 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
663,707 |
|
|
|
763,578 |
|
|
|
663,707 |
|
Other assets |
|
|
286,465 |
|
|
|
240,607 |
|
|
|
190,445 |
|
|
|
244,875 |
|
|
|
190,034 |
|
Total assets |
|
$ |
16,871,888 |
|
|
$ |
17,006,948 |
|
|
$ |
15,673,261 |
|
|
$ |
17,085,720 |
|
|
$ |
15,127,627 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
9,009,962 |
|
|
$ |
8,923,043 |
|
|
$ |
7,991,462 |
|
|
$ |
8,885,637 |
|
|
$ |
7,646,283 |
|
Interest-bearing |
|
|
5,206,387 |
|
|
|
5,249,262 |
|
|
|
4,704,976 |
|
|
|
5,305,788 |
|
|
|
4,591,779 |
|
Total deposits |
|
|
14,216,349 |
|
|
|
14,172,305 |
|
|
|
12,696,438 |
|
|
|
14,191,425 |
|
|
|
12,238,062 |
|
Customer repurchase agreements |
|
|
515,134 |
|
|
|
581,574 |
|
|
|
636,393 |
|
|
|
591,609 |
|
|
|
593,543 |
|
Other borrowings |
|
|
9 |
|
|
|
39 |
|
|
|
4 |
|
|
|
32 |
|
|
|
2,658 |
|
Junior subordinated debentures |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,483 |
|
Payable for securities purchased |
|
|
23,035 |
|
|
|
66,693 |
|
|
|
151,866 |
|
|
|
84,609 |
|
|
|
113,685 |
|
Other liabilities |
|
|
101,163 |
|
|
|
94,883 |
|
|
|
108,322 |
|
|
|
101,881 |
|
|
|
110,064 |
|
Total liabilities |
|
|
14,855,690 |
|
|
|
14,915,494 |
|
|
|
13,593,023 |
|
|
|
14,969,556 |
|
|
|
13,073,495 |
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
2,264,490 |
|
|
|
2,238,788 |
|
|
|
2,067,072 |
|
|
|
2,250,774 |
|
|
|
2,035,787 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
|
(248,292 |
) |
|
|
(147,334 |
) |
|
|
13,166 |
|
|
|
(134,610 |
) |
|
|
18,345 |
|
Total stockholders' equity |
|
|
2,016,198 |
|
|
|
2,091,454 |
|
|
|
2,080,238 |
|
|
|
2,116,164 |
|
|
|
2,054,132 |
|
Total liabilities and stockholders'
equity |
|
$ |
16,871,888 |
|
|
$ |
17,006,948 |
|
|
$ |
15,673,261 |
|
|
$ |
17,085,720 |
|
|
$ |
15,127,627 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2022 |
|
September 30,2021 |
|
September 30,2022 |
|
September 30,2021 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
$ |
100,077 |
|
|
$ |
92,770 |
|
|
$ |
88,390 |
|
|
$ |
282,308 |
|
|
$ |
271,911 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale |
|
|
18,543 |
|
|
|
17,042 |
|
|
|
9,813 |
|
|
|
48,417 |
|
|
|
28,382 |
|
Investment securities held-to-maturity |
|
|
12,834 |
|
|
|
11,714 |
|
|
|
5,188 |
|
|
|
35,211 |
|
|
|
14,258 |
|
Total investment income |
|
|
31,377 |
|
|
|
28,756 |
|
|
|
15,001 |
|
|
|
83,628 |
|
|
|
42,640 |
|
Dividends from FHLB stock |
|
|
258 |
|
|
|
273 |
|
|
|
258 |
|
|
|
902 |
|
|
|
758 |
|
Interest-earning deposits with other institutions |
|
|
3,476 |
|
|
|
1,463 |
|
|
|
898 |
|
|
|
5,712 |
|
|
|
1,790 |
|
Total interest income |
|
|
135,188 |
|
|
|
123,262 |
|
|
|
104,547 |
|
|
|
372,550 |
|
|
|
317,099 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,728 |
|
|
|
1,201 |
|
|
|
1,113 |
|
|
|
4,056 |
|
|
|
4,350 |
|
Borrowings and junior subordinated debentures |
|
|
122 |
|
|
|
121 |
|
|
|
135 |
|
|
|
376 |
|
|
|
594 |
|
Total interest expense |
|
|
1,850 |
|
|
|
1,322 |
|
|
|
1,248 |
|
|
|
4,432 |
|
|
|
4,944 |
|
Net interest income before provision for (recapture of) credit
losses |
|
|
133,338 |
|
|
|
121,940 |
|
|
|
103,299 |
|
|
|
368,118 |
|
|
|
312,155 |
|
Provision for (recapture of) credit losses |
|
|
2,000 |
|
|
|
3,600 |
|
|
|
(4,000 |
) |
|
|
8,100 |
|
|
|
(25,500 |
) |
Net interest income after provision for (recapture of)
credit losses |
|
|
131,338 |
|
|
|
118,340 |
|
|
|
107,299 |
|
|
|
360,018 |
|
|
|
337,655 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
5,233 |
|
|
|
5,333 |
|
|
|
4,513 |
|
|
|
15,625 |
|
|
|
12,667 |
|
Trust and investment services |
|
|
2,867 |
|
|
|
2,962 |
|
|
|
2,681 |
|
|
|
8,651 |
|
|
|
8,459 |
|
Gain on OREO, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
477 |
|
Other |
|
|
3,490 |
|
|
|
6,375 |
|
|
|
3,289 |
|
|
|
13,248 |
|
|
|
13,397 |
|
Total noninterest income |
|
|
11,590 |
|
|
|
14,670 |
|
|
|
10,483 |
|
|
|
37,524 |
|
|
|
35,000 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
33,233 |
|
|
|
31,553 |
|
|
|
29,741 |
|
|
|
97,442 |
|
|
|
88,283 |
|
Occupancy and equipment |
|
|
5,779 |
|
|
|
5,567 |
|
|
|
5,122 |
|
|
|
16,917 |
|
|
|
14,934 |
|
Professional services |
|
|
2,438 |
|
|
|
2,305 |
|
|
|
1,626 |
|
|
|
6,788 |
|
|
|
6,042 |
|
Computer software expense |
|
|
3,243 |
|
|
|
3,103 |
|
|
|
3,020 |
|
|
|
10,141 |
|
|
|
8,521 |
|
Marketing and promotion |
|
|
1,488 |
|
|
|
1,638 |
|
|
|
857 |
|
|
|
4,584 |
|
|
|
3,381 |
|
Amortization of intangible assets |
|
|
1,846 |
|
|
|
1,998 |
|
|
|
2,014 |
|
|
|
5,842 |
|
|
|
6,348 |
|
(Recapture of) unfunded loan commitments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,000 |
) |
Acquisition related expenses |
|
|
- |
|
|
|
375 |
|
|
|
809 |
|
|
|
6,013 |
|
|
|
809 |
|
Other |
|
|
5,000 |
|
|
|
4,332 |
|
|
|
4,910 |
|
|
|
14,409 |
|
|
|
14,489 |
|
Total noninterest expense |
|
|
53,027 |
|
|
|
50,871 |
|
|
|
48,099 |
|
|
|
162,136 |
|
|
|
141,807 |
|
Earnings before income taxes |
|
|
89,901 |
|
|
|
82,139 |
|
|
|
69,683 |
|
|
|
235,406 |
|
|
|
230,848 |
|
Income taxes |
|
|
25,262 |
|
|
|
23,081 |
|
|
|
19,930 |
|
|
|
66,149 |
|
|
|
66,023 |
|
Net earnings |
|
$ |
64,639 |
|
|
$ |
59,058 |
|
|
$ |
49,753 |
|
|
$ |
169,257 |
|
|
$ |
164,825 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
1.21 |
|
Diluted earnings per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
1.21 |
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.57 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2022 |
|
September 30,2021 |
|
September 30,2022 |
|
September 30,2021 |
Interest income - tax equivalent (TE) |
|
$ |
135,639 |
|
|
$ |
123,661 |
|
|
$ |
104,812 |
|
|
$ |
373,763 |
|
|
$ |
317,909 |
|
Interest expense |
|
|
1,850 |
|
|
|
1,322 |
|
|
|
1,248 |
|
|
|
4,432 |
|
|
|
4,944 |
|
Net interest income - (TE) |
|
$ |
133,789 |
|
|
$ |
122,339 |
|
|
$ |
103,564 |
|
|
$ |
369,331 |
|
|
$ |
312,965 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets, annualized |
|
|
1.52 |
% |
|
|
1.39 |
% |
|
|
1.26 |
% |
|
|
1.32 |
% |
|
|
1.46 |
% |
Return on average equity, annualized |
|
|
12.72 |
% |
|
|
11.33 |
% |
|
|
9.49 |
% |
|
|
10.69 |
% |
|
|
10.73 |
% |
Efficiency ratio [1] |
|
|
36.59 |
% |
|
|
37.24 |
% |
|
|
42.27 |
% |
|
|
39.97 |
% |
|
|
40.85 |
% |
Noninterest expense to average assets, annualized |
|
|
1.25 |
% |
|
|
1.20 |
% |
|
|
1.22 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
Yield on average loans |
|
|
4.56 |
% |
|
|
4.31 |
% |
|
|
4.43 |
% |
|
|
4.38 |
% |
|
|
4.46 |
% |
Yield on average earning assets (TE) |
|
|
3.51 |
% |
|
|
3.20 |
% |
|
|
2.92 |
% |
|
|
3.21 |
% |
|
|
3.09 |
% |
Cost of deposits |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
Cost of deposits and customer repurchase agreements |
|
|
0.05 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
Cost of funds |
|
|
0.05 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
Net interest margin (TE) |
|
|
3.46 |
% |
|
|
3.16 |
% |
|
|
2.89 |
% |
|
|
3.17 |
% |
|
|
3.04 |
% |
[1] Noninterest expense divided by net interest income before
provision for credit losses plus noninterest income. |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
138,887,911 |
|
|
|
139,748,311 |
|
|
|
135,200,249 |
|
|
|
139,923,280 |
|
|
|
135,225,605 |
|
Diluted |
|
|
139,346,975 |
|
|
|
140,053,074 |
|
|
|
135,383,614 |
|
|
|
140,223,296 |
|
|
|
135,441,390 |
|
Dividends declared |
|
$ |
27,965 |
|
|
$ |
26,719 |
|
|
$ |
24,421 |
|
|
$ |
80,151 |
|
|
$ |
73,413 |
|
Dividend payout ratio [2] |
|
|
43.26 |
% |
|
|
45.24 |
% |
|
|
49.08 |
% |
|
|
47.35 |
% |
|
|
44.54 |
% |
[2] Dividends declared on common stock divided by net
earnings. |
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding - (end of period) |
|
|
139,805,445 |
|
|
|
140,025,579 |
|
|
|
135,516,404 |
|
|
|
|
|
Book value per share |
|
$ |
13.44 |
|
|
$ |
14.16 |
|
|
$ |
15.23 |
|
|
|
|
|
Tangible book value per share |
|
$ |
7.79 |
|
|
$ |
8.51 |
|
|
$ |
10.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
September 30, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
10,117 |
|
|
$ |
6,893 |
|
|
$ |
8,446 |
|
|
|
|
|
Loans past due 90 days or more and still accruing interest |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Troubled debt restructured loans (nonperforming) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Other real estate owned (OREO), net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Total nonperforming assets |
|
$ |
10,117 |
|
|
$ |
6,893 |
|
|
$ |
8,446 |
|
|
|
|
|
Troubled debt restructured performing loans |
|
$ |
5,828 |
|
|
$ |
5,293 |
|
|
$ |
7,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of nonperforming assets to total loans outstanding and
OREO |
|
|
0.12 |
% |
|
|
0.09 |
% |
|
|
0.11 |
% |
|
|
|
|
Percentage of nonperforming assets to total assets |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
|
|
|
|
Allowance for credit losses to nonperforming assets |
|
|
816.46 |
% |
|
|
943.26 |
% |
|
|
773.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2022 |
|
September 30,2021 |
|
September 30,2022 |
|
September 30,2021 |
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
80,222 |
|
|
$ |
76,119 |
|
|
$ |
69,342 |
|
|
$ |
65,019 |
|
|
$ |
93,692 |
|
Suncrest FV PCD loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,605 |
|
|
|
- |
|
Total charge-offs |
|
|
(46 |
) |
|
|
(8 |
) |
|
|
(11 |
) |
|
|
(70 |
) |
|
|
(2,996 |
) |
Total recoveries on loans previously charged-off |
|
|
425 |
|
|
|
511 |
|
|
|
33 |
|
|
|
947 |
|
|
|
168 |
|
Net recoveries (charge-offs) |
|
|
379 |
|
|
|
503 |
|
|
|
22 |
|
|
|
877 |
|
|
|
(2,828 |
) |
Provision for (recapture of) credit losses |
|
|
2,000 |
|
|
|
3,600 |
|
|
|
(4,000 |
) |
|
|
8,100 |
|
|
|
(25,500 |
) |
Allowance for credit losses at end of period |
|
$ |
82,601 |
|
|
$ |
80,222 |
|
|
$ |
65,364 |
|
|
$ |
82,601 |
|
|
$ |
65,364 |
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries (charge-offs) to average loans |
|
|
0.004 |
% |
|
|
0.006 |
% |
|
|
0.000 |
% |
|
|
0.010 |
% |
|
|
-0.035 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
|
AllowanceFor CreditLosses |
|
Allowanceas a % ofTotal Loansby RespectiveLoan
Type |
|
AllowanceFor CreditLosses |
|
Allowanceas a % ofTotal Loansby RespectiveLoan
Type |
|
AllowanceFor CreditLosses |
|
Allowanceas a % ofTotal Loansby RespectiveLoan
Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
64.9 |
|
|
|
1.0 |
% |
|
|
$ |
50.9 |
|
|
|
0.9 |
% |
|
|
$ |
52.3 |
|
|
|
0.9 |
% |
|
Construction |
|
|
1.7 |
|
|
|
2.3 |
% |
|
|
|
0.8 |
|
|
|
1.2 |
% |
|
|
|
1.1 |
|
|
|
1.4 |
% |
|
SBA |
|
|
2.8 |
|
|
|
0.9 |
% |
|
|
|
2.7 |
|
|
|
0.9 |
% |
|
|
|
2.9 |
|
|
|
1.0 |
% |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Commercial and industrial |
|
|
7.1 |
|
|
|
0.7 |
% |
|
|
|
6.7 |
|
|
|
0.8 |
% |
|
|
|
4.9 |
|
|
|
0.6 |
% |
|
Dairy & livestock and agribusiness |
|
|
5.0 |
|
|
|
1.5 |
% |
|
|
|
3.0 |
|
|
|
0.8 |
% |
|
|
|
3.2 |
|
|
|
1.1 |
% |
|
Municipal lease finance receivables |
|
|
0.2 |
|
|
|
0.3 |
% |
|
|
|
0.1 |
|
|
|
0.2 |
% |
|
|
|
0.1 |
|
|
|
0.2 |
% |
|
SFR mortgage |
|
|
0.4 |
|
|
|
0.1 |
% |
|
|
|
0.2 |
|
|
|
0.1 |
% |
|
|
|
0.2 |
|
|
|
0.1 |
% |
|
Consumer and other loans |
|
|
0.5 |
|
|
|
0.6 |
% |
|
|
|
0.6 |
|
|
|
0.8 |
% |
|
|
|
0.7 |
|
|
|
1.0 |
% |
|
Total |
|
$ |
82.6 |
|
|
|
0.9 |
% |
|
|
$ |
65.0 |
|
|
|
0.8 |
% |
|
|
$ |
65.4 |
|
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Common Stock Price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
Quarter End |
|
High |
|
Low |
|
High |
|
Low |
|
High |
|
Low |
March 31, |
|
$ |
24.37 |
|
|
$ |
21.36 |
|
|
$ |
25.00 |
|
|
$ |
19.15 |
|
|
$ |
22.01 |
|
|
$ |
14.92 |
|
June 30, |
|
$ |
25.59 |
|
|
$ |
22.37 |
|
|
$ |
22.98 |
|
|
$ |
20.50 |
|
|
$ |
22.22 |
|
|
$ |
15.97 |
|
September 30, |
|
$ |
28.14 |
|
|
$ |
22.63 |
|
|
$ |
20.86 |
|
|
$ |
18.72 |
|
|
$ |
19.87 |
|
|
$ |
15.57 |
|
December 31, |
|
|
|
|
|
$ |
21.85 |
|
|
$ |
19.00 |
|
|
$ |
21.34 |
|
|
$ |
16.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
|
|
$ |
100,077 |
|
|
$ |
92,770 |
|
|
$ |
89,461 |
|
|
$ |
84,683 |
|
|
$ |
88,390 |
|
Investment securities and other |
|
|
|
|
35,111 |
|
|
|
30,492 |
|
|
|
24,639 |
|
|
|
18,848 |
|
|
|
16,157 |
|
Total interest income |
|
|
|
|
135,188 |
|
|
|
123,262 |
|
|
|
114,100 |
|
|
|
103,531 |
|
|
|
104,547 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
1,728 |
|
|
|
1,201 |
|
|
|
1,127 |
|
|
|
996 |
|
|
|
1,113 |
|
Other borrowings |
|
|
|
|
122 |
|
|
|
121 |
|
|
|
133 |
|
|
|
140 |
|
|
|
135 |
|
Total interest expense |
|
|
|
|
1,850 |
|
|
|
1,322 |
|
|
|
1,260 |
|
|
|
1,136 |
|
|
|
1,248 |
|
Net interest income before provision for |
|
|
|
|
|
|
|
|
|
|
(recapture of) credit losses |
|
|
|
|
133,338 |
|
|
|
121,940 |
|
|
|
112,840 |
|
|
|
102,395 |
|
|
|
103,299 |
|
Provision for (recapture of) credit losses |
|
|
2,000 |
|
|
|
3,600 |
|
|
|
2,500 |
|
|
|
- |
|
|
|
(4,000 |
) |
Net interest income after provision for |
|
|
|
|
|
|
|
|
|
|
(recapture of) credit losses |
|
|
|
|
131,338 |
|
|
|
118,340 |
|
|
|
110,340 |
|
|
|
102,395 |
|
|
|
107,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
11,590 |
|
|
|
14,670 |
|
|
|
11,264 |
|
|
|
12,385 |
|
|
|
10,483 |
|
Noninterest expense |
|
|
|
|
53,027 |
|
|
|
50,871 |
|
|
|
58,238 |
|
|
|
47,980 |
|
|
|
48,099 |
|
Earnings before income taxes |
|
|
|
|
89,901 |
|
|
|
82,139 |
|
|
|
63,366 |
|
|
|
66,800 |
|
|
|
69,683 |
|
Income taxes |
|
|
|
|
25,262 |
|
|
|
23,081 |
|
|
|
17,806 |
|
|
|
19,104 |
|
|
|
19,930 |
|
Net earnings |
|
|
|
$ |
64,639 |
|
|
$ |
59,058 |
|
|
$ |
45,560 |
|
|
$ |
47,696 |
|
|
$ |
49,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
28.60 |
% |
|
|
28.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
0.37 |
|
Diluted earnings per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared |
|
|
|
$ |
27,965 |
|
|
$ |
26,719 |
|
|
$ |
25,467 |
|
|
$ |
24,401 |
|
|
$ |
24,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio by Type |
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
6,685,245 |
|
|
$ |
6,643,628 |
|
|
$ |
6,470,841 |
|
|
$ |
5,789,730 |
|
|
$ |
5,734,699 |
|
Construction |
|
|
76,495 |
|
|
|
60,584 |
|
|
|
73,478 |
|
|
|
62,264 |
|
|
|
77,398 |
|
SBA |
|
|
296,664 |
|
|
|
297,109 |
|
|
|
311,238 |
|
|
|
288,600 |
|
|
|
307,533 |
|
SBA - PPP |
|
|
17,348 |
|
|
|
66,955 |
|
|
|
121,189 |
|
|
|
186,585 |
|
|
|
330,960 |
|
Commercial and industrial |
|
|
952,231 |
|
|
|
941,595 |
|
|
|
924,780 |
|
|
|
813,063 |
|
|
|
769,977 |
|
Dairy & livestock and agribusiness |
|
|
323,105 |
|
|
|
273,594 |
|
|
|
292,784 |
|
|
|
386,219 |
|
|
|
279,584 |
|
Municipal lease finance receivables |
|
|
76,656 |
|
|
|
64,437 |
|
|
|
65,543 |
|
|
|
45,933 |
|
|
|
47,305 |
|
SFR mortgage |
|
|
263,646 |
|
|
|
260,218 |
|
|
|
255,136 |
|
|
|
240,654 |
|
|
|
231,323 |
|
Consumer and other loans |
|
|
82,746 |
|
|
|
84,109 |
|
|
|
76,695 |
|
|
|
74,665 |
|
|
|
70,741 |
|
Gross loans, net of deferred loan fees and discounts |
|
|
8,774,136 |
|
|
|
8,692,229 |
|
|
|
8,591,684 |
|
|
|
7,887,713 |
|
|
|
7,849,520 |
|
Allowance for credit losses |
|
|
(82,601 |
) |
|
|
(80,222 |
) |
|
|
(76,119 |
) |
|
|
(65,019 |
) |
|
|
(65,364 |
) |
Net loans |
|
$ |
8,691,535 |
|
|
$ |
8,612,007 |
|
|
$ |
8,515,565 |
|
|
$ |
7,822,694 |
|
|
$ |
7,784,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Composition by Type and Customer Repurchase
Agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
8,764,556 |
|
|
$ |
8,881,223 |
|
|
$ |
9,107,304 |
|
|
$ |
8,104,056 |
|
|
$ |
8,310,709 |
|
Investment checking |
|
|
751,618 |
|
|
|
695,054 |
|
|
|
714,567 |
|
|
|
655,333 |
|
|
|
594,347 |
|
Savings and money market |
|
|
3,991,531 |
|
|
|
4,145,634 |
|
|
|
4,289,550 |
|
|
|
3,889,371 |
|
|
|
3,680,721 |
|
Time deposits |
|
|
364,694 |
|
|
|
350,308 |
|
|
|
376,357 |
|
|
|
327,682 |
|
|
|
344,439 |
|
Total deposits |
|
|
13,872,399 |
|
|
|
14,072,219 |
|
|
|
14,487,778 |
|
|
|
12,976,442 |
|
|
|
12,930,216 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
|
467,844 |
|
|
|
502,829 |
|
|
|
598,909 |
|
|
|
642,388 |
|
|
|
659,579 |
|
Total deposits and customer repurchase agreements |
|
$ |
14,340,243 |
|
|
$ |
14,575,048 |
|
|
$ |
15,086,687 |
|
|
$ |
13,618,830 |
|
|
$ |
13,589,795 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets and Delinquency Trends |
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
6,705 |
|
|
$ |
6,843 |
|
|
$ |
7,055 |
|
|
$ |
3,607 |
|
|
$ |
4,073 |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
1,065 |
|
|
|
1,075 |
|
|
|
1,575 |
|
|
|
1,034 |
|
|
|
1,513 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
|
1,308 |
|
|
|
1,655 |
|
|
|
1,771 |
|
|
|
1,714 |
|
|
|
2,038 |
|
Dairy & livestock and agribusiness |
|
|
1,007 |
|
|
|
3,354 |
|
|
|
2,655 |
|
|
|
- |
|
|
|
118 |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
167 |
|
|
|
380 |
|
|
|
399 |
|
Consumer and other loans |
|
|
32 |
|
|
|
37 |
|
|
|
40 |
|
|
|
158 |
|
|
|
305 |
|
Total |
|
$ |
10,117 |
|
|
$ |
12,964 |
|
|
$ |
13,265 |
|
|
$ |
6,893 |
|
|
$ |
8,446 |
|
% of Total loans |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.09 |
% |
|
|
0.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
Past due 30-89 days: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
565 |
|
|
$ |
438 |
|
|
$ |
- |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
549 |
|
|
|
979 |
|
|
|
- |
|
Commercial and industrial |
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
|
122 |
|
Dairy & livestock and agribusiness |
|
|
- |
|
|
|
- |
|
|
|
1,099 |
|
|
|
- |
|
|
|
1,000 |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
403 |
|
|
|
1,040 |
|
|
|
- |
|
Consumer and other loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
2,622 |
|
|
$ |
2,457 |
|
|
$ |
1,122 |
|
% of Total loans |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
OREO: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Total nonperforming, past due, and OREO |
|
$ |
10,117 |
|
|
$ |
13,523 |
|
|
$ |
15,887 |
|
|
$ |
9,350 |
|
|
$ |
9,568 |
|
% of Total loans |
|
|
0.12 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB Financial Corp. Consolidated |
Capital Ratios |
|
Minimum Required PlusCapital Conservation
Buffer |
|
September 30,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0 |
% |
|
9.1 |
% |
|
9.2 |
% |
|
9.2 |
% |
Common equity Tier 1 capital ratio |
|
7.0 |
% |
|
13.5 |
% |
|
14.9 |
% |
|
14.9 |
% |
Tier 1 risk-based capital ratio |
|
8.5 |
% |
|
13.5 |
% |
|
14.9 |
% |
|
14.9 |
% |
Total risk-based capital ratio |
|
10.5 |
% |
|
14.3 |
% |
|
15.6 |
% |
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
|
|
7.0 |
% |
|
9.2 |
% |
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
Tangible Book Value Reconciliations
(Non-GAAP) |
|
|
|
|
|
|
|
|
|
The tangible book value per share is a Non-GAAP disclosure. The
Company uses certain non-GAAP financial measures to provide
supplemental information regarding the Company's performance. The
following is a reconciliation of tangible book value to the Company
stockholders' equity computed in accordance with GAAP, as well as a
calculation of tangible book value per share as of September 30,
2022, December 31, 2021 and September 30, 2021. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
|
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
$ |
1,878,886 |
|
|
$ |
2,081,503 |
|
|
$ |
2,063,920 |
|
|
|
Less: Goodwill |
|
|
(765,822 |
) |
|
|
(663,707 |
) |
|
|
(663,707 |
) |
|
|
Less: Intangible assets |
|
|
(23,466 |
) |
|
|
(25,394 |
) |
|
|
(27,286 |
) |
|
|
Tangible book value |
|
$ |
1,089,598 |
|
|
$ |
1,392,402 |
|
|
$ |
1,372,927 |
|
|
|
Common shares issued and outstanding |
|
|
139,805,445 |
|
|
|
135,526,025 |
|
|
|
135,516,404 |
|
|
|
Tangible book value per share |
|
$ |
7.79 |
|
|
$ |
10.27 |
|
|
$ |
10.13 |
|
|
|
|
|
|
|
|
|
|
|
Return on Average Tangible Common Equity Reconciliations
(Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The return on average tangible common equity is a non-GAAP
disclosure. The Company uses certain non-GAAP financial measures to
provide supplemental information regarding the Company's
performance. The following is a reconciliation of net income,
adjusted for tax-effected amortization of intangibles, to net
income computed in accordance with GAAP; a reconciliation of
average tangible common equity to the Company's average
stockholders' equity computed in accordance with GAAP; as well as a
calculation of return on average tangible common equity. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
64,639 |
|
|
$ |
59,058 |
|
|
$ |
49,753 |
|
|
$ |
169,257 |
|
|
$ |
164,825 |
|
|
|
Add: Amortization of intangible assets |
|
|
1,846 |
|
|
|
1,998 |
|
|
|
2,014 |
|
|
|
5,842 |
|
|
|
6,348 |
|
|
|
Less: Tax effect of amortization of intangible assets [1] |
|
|
(546 |
) |
|
|
(591 |
) |
|
|
(595 |
) |
|
|
(1,727 |
) |
|
|
(1,877 |
) |
|
|
Tangible net income |
|
$ |
65,939 |
|
|
$ |
60,465 |
|
|
$ |
51,172 |
|
|
$ |
173,372 |
|
|
$ |
169,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
|
$ |
2,016,198 |
|
|
$ |
2,091,454 |
|
|
$ |
2,080,238 |
|
|
$ |
2,116,164 |
|
|
$ |
2,054,132 |
|
|
|
Less: Average goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(663,707 |
) |
|
|
(763,578 |
) |
|
|
(663,707 |
) |
|
|
Less: Average intangible assets |
|
|
(24,396 |
) |
|
|
(26,381 |
) |
|
|
(28,240 |
) |
|
|
(26,308 |
) |
|
|
(30,377 |
) |
|
|
Average tangible common equity |
|
$ |
1,225,980 |
|
|
$ |
1,299,251 |
|
|
$ |
1,388,291 |
|
|
$ |
1,326,278 |
|
|
$ |
1,360,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity, annualized |
|
|
12.72 |
% |
|
|
11.33 |
% |
|
|
9.49 |
% |
|
|
10.69 |
% |
|
|
10.73 |
% |
|
|
Return on average tangible common equity, annualized |
|
|
21.34 |
% |
|
|
18.67 |
% |
|
|
14.62 |
% |
|
|
17.48 |
% |
|
|
16.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Tax effected at respective statutory rates. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: |
David A.
Brager |
|
President and Chief Executive Officer |
|
(909) 980-4030 |
CVB Financial (NASDAQ:CVBF)
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