CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (the “Company”), announced earnings for the quarter
and the year ended December 31, 2022.
CVB Financial Corp. reported net income of $66.2 million for the
quarter ended December 31, 2022, compared with $64.6 million for
the third quarter of 2022 and $47.7 million for the fourth quarter
of 2021. Diluted earnings per share were $0.47 for the fourth
quarter, compared to $0.46 for the prior quarter and $0.35 for the
same period last year. Pretax pre-provision income grew from $91.9
million for the third quarter of 2022 to $95.4 million in the
fourth quarter, while growing by approximately 43% from the fourth
quarter of 2021. The fourth quarter of 2022 included $2.5 million
in provision for credit losses, compared to $2.0 million in
provision for the third quarter and no provision or recapture in
the fourth quarter of 2021. Net income of $66.2 million for the
fourth quarter of 2022 produced an annualized return on average
equity (“ROAE”) of 13.68%, an annualized return on average tangible
common equity (“ROATCE”) of 23.65%, and an annualized return on
average assets (“ROAA”) of 1.60%. Our net interest margin, tax
equivalent (“NIM”), increased to 3.69% for the fourth quarter of
2022, while our efficiency ratio was 36.31%.
For the year ended December 31, 2022, the Company reported
record net income of $235.4 million, compared with $212.5 million
for the year ended December 31, 2021. Diluted earnings per share
were $1.67 for the year ended December 31, 2022, compared to $1.56
for the same period last year. Pretax pre-provision income grew
from $272.1 million for 2021 to $338.9 million for the year ended
December 31, 2022.
David Brager, President and Chief Executive Officer of Citizens
Business Bank, commented, “We are pleased with our record results
in 2022 and remain committed to the mission and vision of Citizens
Business Bank. The fourth quarter and full year of 2022 represented
record quarterly and annual earnings for the Bank, and we ended the
fourth quarter with a return on average assets of 1.60% and a
return on tangible common equity of 23.65%. Our focus on banking
the best privately held small to medium sized businesses and their
owners has stood the test of time. We have reported 183 consecutive
quarters of profits and just paid our 133rd consecutive quarterly
cash dividend, which was increased twice during 2022. I would like
to thank our associates for their hard work and dedication, our
customers for their business and ongoing loyalty, and our
shareholders for their continued support and trust.”
INCOME STATEMENT HIGHLIGHTS
|
|
|
Three Months Ended |
|
Year Ended December 31, |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
2022 |
|
2021 |
|
2020 |
|
(Dollars in thousands, except per share amounts) |
Net interest income |
$ |
137,395 |
|
|
$ |
133,338 |
|
|
$ |
102,395 |
|
|
$ |
505,513 |
|
|
$ |
414,550 |
|
|
$ |
416,053 |
|
(Provision for) recapture of credit losses |
|
(2,500 |
) |
|
|
(2,000 |
) |
|
|
- |
|
|
|
(10,600 |
) |
|
|
25,500 |
|
|
|
(23,500 |
) |
Noninterest income |
|
12,465 |
|
|
|
11,590 |
|
|
|
12,385 |
|
|
|
49,989 |
|
|
|
47,385 |
|
|
|
49,870 |
|
Noninterest expense |
|
(54,419 |
) |
|
|
(53,027 |
) |
|
|
(47,980 |
) |
|
|
(216,555 |
) |
|
|
(189,787 |
) |
|
|
(192,903 |
) |
Income taxes |
|
(26,773 |
) |
|
|
(25,262 |
) |
|
|
(19,104 |
) |
|
|
(92,922 |
) |
|
|
(85,127 |
) |
|
|
(72,361 |
) |
Net earnings |
$ |
66,168 |
|
|
$ |
64,639 |
|
|
$ |
47,696 |
|
|
$ |
235,425 |
|
|
$ |
212,521 |
|
|
$ |
177,159 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.35 |
|
|
$ |
1.67 |
|
|
$ |
1.57 |
|
|
$ |
1.30 |
|
Diluted |
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.35 |
|
|
$ |
1.67 |
|
|
$ |
1.56 |
|
|
$ |
1.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NIM |
|
3.69 |
% |
|
|
3.46 |
% |
|
|
2.79 |
% |
|
|
3.30 |
% |
|
|
2.97 |
% |
|
|
3.59 |
% |
ROAA |
|
1.60 |
% |
|
|
1.52 |
% |
|
|
1.18 |
% |
|
|
1.39 |
% |
|
|
1.38 |
% |
|
|
1.37 |
% |
ROAE |
|
13.68 |
% |
|
|
12.72 |
% |
|
|
9.05 |
% |
|
|
11.39 |
% |
|
|
10.30 |
% |
|
|
8.90 |
% |
ROATCE |
|
23.65 |
% |
|
|
21.34 |
% |
|
|
13.89 |
% |
|
|
18.85 |
% |
|
|
15.93 |
% |
|
|
14.25 |
% |
Efficiency ratio |
|
36.31 |
% |
|
|
36.59 |
% |
|
|
41.80 |
% |
|
|
38.98 |
% |
|
|
41.09 |
% |
|
|
41.40 |
% |
Noninterest expense to average assets, annualized |
|
1.32 |
% |
|
|
1.25 |
% |
|
|
1.19 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
|
|
1.49 |
% |
Net Interest IncomeNet interest income was
$137.4 million for the fourth quarter of 2022. This represented a
$4.1 million, or 3.04%, increase from the third quarter of 2022,
and a $35.0 million, or 34.18%, increase from the fourth quarter of
2021. The quarter-over-quarter growth in net interest income was
primarily due to the expansion of the net interest margin from
3.46% in the third quarter of 2022 to 3.69% for the fourth quarter
of 2022. The year-over-year increase in net interest income was
primarily due to a 90 basis point expansion of the net interest
margin. Total interest income was $142.1 million for the fourth
quarter of 2022, which was $6.9 million, or 5.13%, higher than the
third quarter of 2022. The increase in interest income from the
third quarter of 2022 to the fourth quarter was primarily the
result of a 31 basis point expansion in earning asset yield.
Interest expense increased $2.9 million, from the prior quarter,
due partially to a $1.0 million increase in interest expense on
deposits, as a result of a 9 basis point increase in the cost of
interest-bearing deposits. Interest expense also increased from the
prior quarter by $1.8 million due to average overnight borrowings
of approximately $160 million during the fourth quarter of 2022. In
comparison to the fourth quarter of 2021, interest income grew by
$38.6 million, or 37.27%, through a combination of $121.1 million
of growth in average earnings assets and expansion on the yield for
earning assets of 100 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 a nearly $1.0 billion increase in the average investment
portfolio over the prior year quarter. Our average balance of funds
on deposit at the Federal Reserve declined by $1.9 billion. The
year-over-year increase in interest expense resulted from growth of
$262 million in average interest-bearing deposits, $160 million on
average of overnight borrowings in the fourth quarter of 2022, and
a 10 basis point increase in cost of funds.
Net interest income before provision for (recapture of) credit
losses was $505.5 million for the year ended December 31, 2022,
compared to $414.6 million for 2021. Interest income grew by $94.0
million, or 22.36% in 2022. The increase in interest income was the
result of a 34 basis point expansion in earning asset yield and a
$1.3 billion increase in average earning assets. Cost of funds for
2022 increased by 1 basis point over 2021, while the growth in the
earning asset yield to 3.36% drove a 33 basis point increase in the
net interest margin. The $1.3 billion increase in average earning
assets for 2022 benefited from the acquisition of $775 million of
loans from Suncrest at the beginning of the year, as well as core
loan growth, which excluding the $177.5 million decline in PPP
loans, was $634.3 million from the end of 2021 to the end of 2022.
Our investment portfolio grew on average by $1.9 billion over the
prior year, funded in part by a $1.1 billion decline in average
balances at the Federal Reserve. Interest expense increased $3.1
million from the prior year, due to a $600 million increase in the
average balance of interest-bearing deposits, which increased in
cost by 1 basis point, and overnight borrowings that averaged $40.7
million for the entire year.
Net Interest MarginOur tax equivalent net
interest margin was 3.69% for the fourth quarter of 2022, compared
to 3.46% for the third quarter of 2022 and 2.79% for the fourth
quarter of 2021. The 23 basis point increase in our net interest
margin compared to the third 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 22 basis point increase in
loan yields, a 24 basis point increase in security yields, and a
quarter-over-quarter change in the composition of average earning
assets, with loans growing from 56.55% to 59.67% of earnings
assets, while funds held at the Federal Reserve declined from 4.1%
to 0.9%. The 90 basis point increase in net interest margin,
compared to the fourth quarter of 2021 was primarily the result of
a 100 basis point increase in earning asset yield. Loan yields grew
from 4.29% for the fourth quarter of 2021 to 4.78% for the fourth
quarter of 2022. Likewise, the yield on investment securities
increased by 84 basis points from the prior year quarter. Loan
balances grew to 59.67% of earning assets on average for the fourth
quarter of 2022, compared to 53.14% for the fourth quarter of 2021.
Excess liquidity held at the Federal Reserve was invested into
higher yielding investments, which increased to 39.31% of earning
assets on average for the fourth quarter of 2022 from 32.87% for
the fourth quarter of 2021, while average funds at the Fed declined
from 13.69% or earning assets in the fourth quarter of 2021 to only
0.84% in the fourth quarter of 2022. Total cost of funds of 0.13%
for the fourth quarter of 2022 increased from 0.05% for the third
quarter of 2022 and increased from 0.03% for the year ago quarter.
The 8 basis point increase in the cost of funds from the third
quarter of 2022 was the net result of approximately $160 million in
average overnight borrowings during the fourth quarter and an
increase in the cost of interest-bearing deposits from 0.13% to
0.22%. Compared to the fourth quarter of 2021, the 10 basis point
increase in cost of funds was the result of a 14 basis point
increase in the cost of interest-bearing deposits and an average
cost of overnight borrowings of 4.49% for the fourth quarter of
2022. On average, noninterest-bearing deposits were 63.58% of total
deposits during the most recent quarter, compared to 63.38% for the
fourth quarter of 2022 and 63.80% for the fourth quarter of
2021.
Earning Assets and DepositsOn average, earning
assets declined by $521.0 million and grew by $121.1 million,
compared to the third quarter of 2022 and the fourth quarter of
2021, respectively. The $521.0 million quarter-over-quarter decline
in earning assets resulted from a $500.4 million decrease in
interest-earning funds held at the Federal Reserve and average
investment securities declining by $191.4 million, which was
partially offset by average loans increasing by $169.4 million.
Compared to the fourth quarter of 2021, average investments
increased by $996.8 million, while the average amount of funds held
at the Federal Reserve declined by $1.89 billion.
Average loans increased by $1.03 billion from the fourth quarter of
2021, which included approximately $775 million in loans acquired
from Suncrest on January 7, 2022 and a $231.9 million decrease in
average PPP loans. Average loans grew by approximately $490
million, or 6.5% from the fourth quarter of 2021, when Suncrest and
PPP loans are excluded. Noninterest-bearing deposits declined on
average by $307.1 million, or 3.41%, from the third quarter of
2022, while interest-bearing deposits and customer repurchase
agreements declined on average by $216.9 million. Compared to the
fourth quarter of 2021, total deposits and customer repurchase
agreements grew on average by $496.9 million, or 3.62%, including
$376.8 million in growth in noninterest bearing deposits.
|
|
Three Months Ended |
SELECTED FINANCIAL HIGHLIGHTS |
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
(Dollars in thousands) |
Yield on average investment securities (TE) |
|
2.36 |
% |
|
|
|
|
2.12 |
% |
|
|
|
|
1.52 |
% |
|
|
Yield on average loans |
|
4.78 |
% |
|
|
|
|
4.56 |
% |
|
|
|
|
4.29 |
% |
|
|
Core Loan Yield [1] |
|
4.67 |
% |
|
|
|
|
4.42 |
% |
|
|
|
|
4.08 |
% |
|
|
Yield on average earning assets (TE) |
|
3.82 |
% |
|
|
|
|
3.51 |
% |
|
|
|
|
2.82 |
% |
|
|
Cost of funds |
|
0.13 |
% |
|
|
|
|
0.05 |
% |
|
|
|
|
0.03 |
% |
|
|
Net interest margin (TE) |
|
3.69 |
% |
|
|
|
|
3.46 |
% |
|
|
|
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
Avg |
|
% of Total |
|
Total investment securities |
$ |
5,842,283 |
|
|
39.31 |
% |
|
$ |
6,033,696 |
|
|
39.22 |
% |
|
$ |
4,845,498 |
|
|
32.87 |
% |
|
Interest-earning deposits with other institutions |
|
133,931 |
|
|
0.90 |
% |
|
|
633,152 |
|
|
4.12 |
% |
|
|
2,045,124 |
|
|
13.87 |
% |
|
Loans |
|
8,868,673 |
|
|
59.67 |
% |
|
|
8,699,303 |
|
|
56.55 |
% |
|
|
7,833,741 |
|
|
53.14 |
% |
|
Total interest-earning assets |
|
14,863,178 |
|
|
|
|
|
15,384,163 |
|
|
|
|
|
14,742,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Represents yield on average loans excluding the impact of
discount accretion and PPP loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
SELECTED FINANCIAL HIGHLIGHTS |
2022 |
|
2021 |
|
2020 |
|
|
(Dollars in thousands) |
Yield on average investment securities (TE) |
|
2.03 |
% |
|
|
|
|
1.56 |
% |
|
|
|
|
2.10 |
% |
|
|
Yield on average loans |
|
4.49 |
% |
|
|
|
|
4.42 |
% |
|
|
|
|
4.68 |
% |
|
|
Core Loan Yield [1] |
|
4.36 |
% |
|
|
|
|
4.19 |
% |
|
|
|
|
4.46 |
% |
|
|
Yield on average earning assets (TE) |
|
3.36 |
% |
|
|
|
|
3.02 |
% |
|
|
|
|
3.71 |
% |
|
|
Cost of funds |
|
0.06 |
% |
|
|
|
|
0.05 |
% |
|
|
|
|
0.13 |
% |
|
|
Net interest margin (TE) |
|
3.30 |
% |
|
|
|
|
2.97 |
% |
|
|
|
|
3.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
Avg |
|
% of Total |
|
Total investment securities |
$ |
5,939,554 |
|
|
38.47 |
% |
|
$ |
4,058,459 |
|
|
28.79 |
% |
|
$ |
2,504,020 |
|
|
21.43 |
% |
|
Interest-earning deposits with other institutions |
|
804,744 |
|
|
5.21 |
% |
|
|
1,953,209 |
|
|
13.86 |
% |
|
|
1,098,814 |
|
|
9.40 |
% |
|
Loans |
|
8,676,820 |
|
|
56.20 |
% |
|
|
8,065,877 |
|
|
57.22 |
% |
|
|
8,066,483 |
|
|
69.02 |
% |
|
Total interest-earning assets |
|
15,439,427 |
|
|
|
|
|
14,095,233 |
|
|
|
|
|
11,687,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Represents yield on average loans excluding the impact of
discount accretion and PPP loans. |
Provision for Credit Losses The fourth quarter
of 2022 included $2.5 million in provision for credit losses,
compared to $2.0 million in provision for credit losses in the
third quarter of 2022 and no provision for credit losses in the
fourth quarter of 2021. The $2.5 million provision for credit
losses in the most recent quarter was the result of approximately
$190 million in core loan growth, excluding the seasonal dairy and
livestock borrowings, during the quarter. Projected loss rates
continue to be impacted by 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 0.3%
in 2023 and 1.3% in 2024. Unemployment is forecasted to be 4.8% in
2023 and 5.1% in 2024.
For the year ended December 31, 2022, we recorded $10.6 million
in provision for credit losses, due to both core loan growth of
approximately $600 million and a deteriorating economic forecast of
key macroeconomic variables. During 2022, we experienced credit
charge-offs of $197,000 and total recoveries of $1.1 million,
resulting in net recoveries of $893,000. A $25.5 million recapture
of provision for credit losses was recorded for the year ended
December 31, 2021, resulting from improvements in our economic
forecast that resulted from the unprecedented impact and
uncertainty of the pandemic in 2020.
Noninterest IncomeNoninterest income was $12.5
million for the fourth quarter of 2022, compared with $11.6 million
for the third quarter of 2022 and $12.4 million for the fourth
quarter of 2021. Service charges on deposits increased $524,000
quarter-over-quarter and including the impact of additional
customers resulting from the Suncrest acquisition, grew by $1.3
million, or 28.36% in comparison to the fourth quarter of 2021.
Fourth quarter income from Bank Owned Life Insurance (“BOLI”)
declined by $569,000 from the third quarter of 2022 and was
relatively flat compared to the fourth quarter of 2021. The fourth
quarter of 2022 included $1.0 million in death benefits that
exceeded the asset value of certain BOLI policies, compared to $2.0
million in the third quarter. The fourth quarter of
2022 included higher income from community development investments
which increased by approximately $769,000,
quarter-over-quarter.
For the year ended December 31, 2022, noninterest income was
$50.0 million, compared to $47.4 million for 2021.
Service charges on deposit accounts increased by $4.2 million, or
24.66% from the year ended December 31, 2021. Income from BOLI
declined by $3.1 million from the prior year, as we incurred a $2.7
million decline in the market value of separate account life
insurance policies that are used to fund our deferred compensation
liabilities. An additional $1.2 million increase in noninterest
income was the net result of a $2.4 million net gain on the sale of
one of our properties during 2022, offset by a $1.2 million net
gain on the sale of Other Real Estate Owned (“OREO”) properties in
2021.
Noninterest ExpenseNoninterest expense for the
fourth quarter of 2022 was $54.4 million, compared to $53.0 million
for the third quarter of 2022 and $48.0 million for the fourth
quarter of 2021. The $1.4 million quarter-over-quarter increase
included a $921,000 increase in staff related expense and a
$224,000 increase in marketing and promotion expense. The $6.4
million increase year-over-year included expense growth associated
with the acquisition of Suncrest Bank and the remaining five
banking centers. Compared to the fourth quarter of 2021, staff
related expenses increased by $4.6 million and occupancy and
equipment expense grew by $998,000. Professional service expense
was $649,000 higher in the most recent quarter, compared to the
fourth quarter of 2021, including $270,000 in higher legal and
employee recruiting costs. There was no acquisition expense related
to the merger of Suncrest for the fourth quarter and third quarter
of 2022, compared to $153,000 for the fourth quarter of 2021. As a
percentage of average assets, noninterest expense was 1.32% for the
fourth quarter of 2022, compared to 1.25% for the third quarter of
2022 and 1.19% for the fourth quarter of 2021. The efficiency ratio
for the fourth quarter of 2022 was 36.31%, compared to 36.59% for
the third quarter of 2022 and 41.80% for the fourth quarter of
2021.
Noninterest expense of $216.6 million for the year ended
December 31, 2022 was $26.8 million higher than the prior year. The
year-over-year increase included a $13.7 million increase in
salaries and employee benefits, which included additional
compensation related expenses for the newly hired and former
Suncrest associates. Occupancy and equipment increased by $3.0
million due to the addition of seven banking centers resulting from
the acquisition of Suncrest, two of which were subsequently
consolidated by the end of the second quarter. Acquisition expense
related to the merger of Suncrest was $6.0 million for 2022,
compared with $962,000 for 2021. The increase in software expense
of $1.9 million, included costs associated with the continued use
of Suncrest's legacy banking systems, prior to conversions, as well
as continued investments in technology. A $1.7 million increase in
marketing and promotion expense for 2022 was primarily due to the
impact that the COVID-19 pandemic had on marketing and promotional
events in 2021. Professional service expense grew by $1.4 million,
including increased costs for legal and employee recruiting of
$850,000. The year-over-year increase also included a $1.0 million
recapture of provision for unfunded loan commitments for year ended
December 31, 2021. As a percentage of average assets, noninterest
expense was 1.28% for 2022, compared to 1.24% for 2021. The
efficiency ratio was 38.98% for the year ended 2022, compared to
41.09% for the same period of 2021.
Income Taxes Our effective tax rate for the
fourth quarter of 2022 was 28.81% and was 28.30% for the year ended
December 31, 2022, compared with 28.6% for the fourth quarter and
year-to-date 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
$16.48 billion at December 31, 2022. This represented an increase
of $127.3 million, or 0.78%, from total assets of $16.35 billion at
September 30, 2022. Interest-earning assets of $14.97 billion at
December 31, 2022 increased by $159.9 million, or 1.08%, when
compared with $14.81 billion at September 30, 2022. The increase in
interest-earning assets was primarily due a $305.3 million increase
in total loans, partially offset by an $86.7 million decrease in
interest-earning balances due from the Federal Reserve and a $70.2
million decrease in investment securities.
Total assets at December 31, 2022 increased by $592.8 million,
or 3.73%, from total assets of $15.88 billion at December 31, 2021.
Interest-earning assets increased by $287.5 million, or 1.96%, when
compared with $14.68 billion at December 31, 2021. The increase in
interest-earning assets included a $1.19 billion increase in total
loans and a $699.6 million increase in investment securities,
partially offset by a $1.60 billion decrease in interest-earning
balances due from the Federal Reserve.
On January 7, 2022, we completed the acquisition of Suncrest
with approximately $1.4 billion in total assets, acquired at fair
value. The increase in total assets from December 31, 2021 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 $5.81 billion at December 31, 2022, a decrease of
$70.2 million, or 1.19% from September 30, 2022, and an increase of
$699.6 million, or 13.69%, from $5.11 billion at December 31,
2021.
At December 31, 2022, investment securities held-to-maturity
(“HTM”) totaled $2.55 billion, a decrease of $3.6 million, or 0.14%
from September 30, 2022, and an increase of $628.3 million, or
32.62%, from December 31, 2021.
At December 31, 2022, investment securities available-for-sale
(“AFS”) totaled $3.26 billion, inclusive of a pre-tax net
unrealized loss of $500.1 million. AFS securities decreased by
$66.6 million, or 2.01% from September 30, 2022 and increased by
$71.3 million, or 2.24%, from $3.18 billion at December 31,
2021.
Combined, the AFS and HTM investments in mortgage backed
securities (“MBS”) and collateralized mortgage obligations (“CMO”)
totaled $4.76 billion or approximately 82% of the total investment
securities at December 31, 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 $548.8 million of Government Agency
securities (HTM) at December 31, 2022, that represent approximately
9% of the total investment securities.
Our combined AFS and HTM municipal securities totaled $497.1
million as of December 31, 2022, or 8.6% 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 15.87%, Minnesota at
11.27%, California at 9.14%, Ohio at 6.32%, Massachusetts at 6.27%,
and Washington at 5.81%.
LoansTotal loans and leases, at amortized cost,
of $9.08 billion at December 31, 2022 increased by $305.3 million,
or 3.48%, from September 30, 2022. After adjusting for seasonality
of dairy and livestock and PPP loans, our core loans grew by $189.7
million, or approximately 9% annualized from the end of the third
quarter. The $305.3 million increase in total loans
quarter-over-quarter included $123.8 million in dairy &
livestock loans, $199.7 million in commercial real estate loans,
$11.8 million in construction loans, partially offset by decreases
of $13.3 million in agribusiness loans, $8.3 million in PPP loans,
$5.8 million in SBA loans ,and $3.5 million in commercial and
industrial loans .
Total loans and leases increased by $1.19 billion, or 15.11%,
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 and forgiveness of PPP
loans, our core loans grew by $634.3 million, or 8.24% from
December 31, 2021. The $634.3 million core loan growth
included $514.4 million in commercial real estate loans, $51.2
million in commercial and industrial loans, $31.9 million in dairy
& livestock and agribusiness loans, $25.1 million in SFR
mortgage loans, $17.9 million in municipal lease financings, and
$9.3 million in construction loans, partially offset by a decrease
of $17.8 million in SBA loans. PPP loans decreased by $217.1
million, resulting in a remaining balance of $9.1 million at
December 31, 2022.
Asset QualityDuring the fourth quarter of 2022,
we experienced credit charge-offs of $127,000 and total recoveries
of $143,000, resulting in net recoveries of $16,000. The allowance
for credit losses (“ACL”) totaled $85.1 million at December 31,
2022, compared to $82.6 million at September 30, 2022 and $65.0
million at December 31, 2021. The ACL was increased by $20.1
million in 2022, including an $8.6 million increase on January 7
for the acquired Suncrest PCD loans, $10.6 million in provision for
credit losses for non-PCD loans, and $893,000 in net loan
recoveries. At December 31, 2022, ACL as a percentage of total
loans and leases outstanding was 0.94%. This compares to 0.94% and
0.82% at September 30, 2022 and December 31, 2021,
respectively.
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 |
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
Nonperforming loans |
(Dollars in
thousands) |
Commercial real estate |
$ |
2,657 |
|
|
$ |
6,705 |
|
|
$ |
3,607 |
|
SBA |
|
443 |
|
|
|
1,065 |
|
|
|
1,034 |
|
SBA - PPP |
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and industrial |
|
1,320 |
|
|
|
1,308 |
|
|
|
1,714 |
|
Dairy & livestock and agribusiness |
|
477 |
|
|
|
1,007 |
|
|
|
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
380 |
|
Consumer and other loans |
|
33 |
|
|
|
32 |
|
|
|
158 |
|
Total |
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
6,893 |
|
% of Total loans |
|
0.05 |
% |
|
|
0.12 |
% |
|
|
0.09 |
% |
OREO |
|
|
|
|
|
Commercial real estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
Total nonperforming assets |
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
6,893 |
|
% of
Nonperforming assets to total assets |
|
0.03 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
|
|
|
|
Past
due 30-89 days |
|
|
|
|
|
Commercial real estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
438 |
|
SBA |
|
556 |
|
|
|
- |
|
|
|
979 |
|
Commercial and industrial |
|
- |
|
|
|
- |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
388 |
|
|
|
- |
|
|
|
1,040 |
|
Consumer and other loans |
|
175 |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
1,119 |
|
|
$ |
- |
|
|
$ |
2,457 |
|
% of Total loans |
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
Classified Loans |
$ |
78,658 |
|
|
$ |
63,651 |
|
|
$ |
56,102 |
|
The $5.2 million decrease in nonperforming loans was primarily
due to a decrease of $4.0 million in commercial real estate
nonperforming loans resulting from the payoff of PCD loans acquired
from Suncrest. Classified loans are loans that are graded
“substandard” or worse. Classified loans increased $15.0 million
quarter-over-quarter, primarily due to an $18.1 million increase in
classified commercial real estate loans. Total classified loans at
December 31, 2022 included $22.8 million of classified loans
acquired from Suncrest. Excluding the $22.8 million of acquired
classified Suncrest loans, classified loans decreased from December
31, 2021 by approximately $250,000.
Deposits & Customer Repurchase
AgreementsDeposits of $12.84 billion and customer
repurchase agreements of $565.4 million totaled $13.40 billion at
December 31, 2022. This represented a decrease of $938.6 million,
or 6.54%, when compared with $14.34 billion at September 30, 2022.
Total deposits and customer repurchases decreased on average from
the prior quarter by $524 million, or 3.56%. Total deposits and
customer repurchase agreements decreased $217.2 million, or 1.59%
when compared to $13.62 billion at December 31, 2021.
Noninterest-bearing deposits were $8.70 billion on average for
the fourth quarter of 2022, a decrease of $307.1 million, or 3.41%,
when compared to $9.01 billion on average for the third quarter.
Noninterest-bearing deposits increased on average by $376.8
million, or 4.53% when compared to $8.33 billion on average for the
fourth quarter of 2021. For the fourth quarter of 2022, average
noninterest-bearing deposits were 63.58% of total deposits,
compared to 63.38% for the prior quarter, and 63.80% for the year
ago quarter.
CapitalThe Company’s total equity was $1.95
billion at December 31, 2022. This represented an overall decrease
of $133.0 million from total equity of $2.08 billion at December
31, 2021. Increases to equity during 2022, included $197.1 million
for the issuance of 8.6 million shares to acquire Suncrest and
$235.4 million in net earnings. Decreases included $108.1 million
in cash dividends and a $350.8 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 December 31, 2022 was $8.30.
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 |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0% |
|
9.5% |
|
9.1% |
|
9.2% |
Common
equity Tier 1 capital ratio |
|
7.0% |
|
13.5% |
|
13.5% |
|
14.9% |
Tier 1
risk-based capital ratio |
|
8.5% |
|
13.5% |
|
13.5% |
|
14.9% |
Total
risk-based capital ratio |
|
10.5% |
|
14.4% |
|
14.3% |
|
15.6% |
|
|
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
7.4% |
|
7.0% |
|
9.2% |
|
|
|
|
|
|
|
|
|
CitizensTrustAs of December 31, 2022
CitizensTrust had approximately $2.9 billion in assets under
management and administration, including $1.92 billion in assets
under management. Revenues were $2.9 million for the fourth quarter
of 2022 and $11.5 million for the year ended December 31, 2022,
compared to $3.1 million and $11.6 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. PST/10:30
a.m. EST on Thursday, January 26, 2023 to discuss the Company’s
fourth quarter and year-ended 2022 financial results. The
conference call can be accessed live by registering at:
https://register.vevent.com/register/BIf10422a29f10466b84392192ee328a64
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 Harbor Certain 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.
General risks and uncertainties include, but are not limited to,
the following: changes in the U.S. economy and in 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
business or 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, business and
legal 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 and on our customers;
cybersecurity, privacy and fraud risks, the associated threats to
the Company, our vendors and our customers, and the costs of
defending against such risks and threats, including the costs of
compliance with potential legislation to bolster cybersecurity,
privacy protection and fraud prevention 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 or ongoing 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.
Contact: |
David
A. Brager |
|
President and Chief Executive Officer |
|
(909) 980-4030 |
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
158,236 |
|
|
$ |
186,647 |
|
|
$ |
90,012 |
|
Interest-earning balances due from Federal Reserve |
|
45,225 |
|
|
|
131,892 |
|
|
|
1,642,536 |
|
Total cash and cash equivalents |
|
203,461 |
|
|
|
318,539 |
|
|
|
1,732,548 |
|
Interest-earning balances due from depository institutions |
|
9,553 |
|
|
|
7,594 |
|
|
|
25,999 |
|
Investment securities available-for-sale |
|
3,255,211 |
|
|
|
3,321,824 |
|
|
|
3,183,923 |
|
Investment securities held-to-maturity |
|
2,554,301 |
|
|
|
2,557,922 |
|
|
|
1,925,970 |
|
Total investment securities |
|
5,809,512 |
|
|
|
5,879,746 |
|
|
|
5,109,893 |
|
Investment in stock of Federal Home Loan Bank (FHLB) |
|
27,627 |
|
|
|
18,012 |
|
|
|
17,688 |
|
Loans and lease finance receivables |
|
9,079,392 |
|
|
|
8,774,136 |
|
|
|
7,887,713 |
|
Allowance for credit losses |
|
(85,117 |
) |
|
|
(82,601 |
) |
|
|
(65,019 |
) |
Net loans and lease finance receivables |
|
8,994,275 |
|
|
|
8,691,535 |
|
|
|
7,822,694 |
|
Premises and equipment, net |
|
46,698 |
|
|
|
47,422 |
|
|
|
49,096 |
|
Bank owned life insurance (BOLI) |
|
255,528 |
|
|
|
256,850 |
|
|
|
251,570 |
|
Intangibles |
|
21,742 |
|
|
|
23,466 |
|
|
|
25,394 |
|
Goodwill |
|
765,822 |
|
|
|
765,822 |
|
|
|
663,707 |
|
Other assets |
|
342,322 |
|
|
|
340,290 |
|
|
|
185,108 |
|
Total
assets |
$ |
16,476,540 |
|
|
$ |
16,349,276 |
|
|
$ |
15,883,697 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ |
8,164,364 |
|
|
$ |
8,764,556 |
|
|
$ |
8,104,056 |
|
Investment checking |
|
723,870 |
|
|
|
751,618 |
|
|
|
655,333 |
|
Savings and money market |
|
3,653,385 |
|
|
|
3,991,531 |
|
|
|
3,889,371 |
|
Time deposits |
|
294,626 |
|
|
|
364,694 |
|
|
|
327,682 |
|
Total deposits |
|
12,836,245 |
|
|
|
13,872,399 |
|
|
|
12,976,442 |
|
Customer repurchase agreements |
|
565,431 |
|
|
|
467,844 |
|
|
|
642,388 |
|
Other borrowings |
|
995,000 |
|
|
|
- |
|
|
|
2,281 |
|
Payable for securities purchased |
|
- |
|
|
|
8,697 |
|
|
|
50,340 |
|
Other liabilities |
|
131,347 |
|
|
|
121,450 |
|
|
|
130,743 |
|
Total liabilities |
|
14,528,023 |
|
|
|
14,470,390 |
|
|
|
13,802,194 |
|
Stockholders'
Equity |
|
|
|
|
|
Stockholders' equity |
|
2,303,313 |
|
|
|
2,262,383 |
|
|
|
2,085,471 |
|
Accumulated other comprehensive loss, net of tax |
|
(354,796 |
) |
|
|
(383,497 |
) |
|
|
(3,968 |
) |
Total stockholders'
equity |
|
1,948,517 |
|
|
|
1,878,886 |
|
|
|
2,081,503 |
|
Total liabilities
and stockholders' equity |
$ |
16,476,540 |
|
|
$ |
16,349,276 |
|
|
$ |
15,883,697 |
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
180,661 |
|
|
$ |
184,384 |
|
|
$ |
159,086 |
|
|
$ |
182,701 |
|
|
$ |
155,926 |
|
Interest-earning balances due from Federal Reserve |
|
125,350 |
|
|
|
625,705 |
|
|
|
2,018,516 |
|
|
|
795,753 |
|
|
|
1,922,513 |
|
Total cash and cash equivalents |
|
306,011 |
|
|
|
810,089 |
|
|
|
2,177,602 |
|
|
|
978,454 |
|
|
|
2,078,439 |
|
Interest-earning balances due from depository institutions |
|
8,581 |
|
|
|
7,447 |
|
|
|
26,608 |
|
|
|
8,991 |
|
|
|
30,696 |
|
Investment securities available-for-sale |
|
3,273,149 |
|
|
|
3,576,649 |
|
|
|
3,034,487 |
|
|
|
3,532,587 |
|
|
|
2,849,905 |
|
Investment securities held-to-maturity |
|
2,569,134 |
|
|
|
2,457,047 |
|
|
|
1,811,011 |
|
|
|
2,406,967 |
|
|
|
1,208,554 |
|
Total investment securities |
|
5,842,283 |
|
|
|
6,033,696 |
|
|
|
4,845,498 |
|
|
|
5,939,554 |
|
|
|
4,058,459 |
|
Investment in stock of FHLB |
|
18,291 |
|
|
|
18,012 |
|
|
|
17,688 |
|
|
|
18,309 |
|
|
|
17,688 |
|
Loans and lease finance receivables |
|
8,868,673 |
|
|
|
8,699,303 |
|
|
|
7,833,741 |
|
|
|
8,676,820 |
|
|
|
8,065,877 |
|
Allowance for credit losses |
|
(82,612 |
) |
|
|
(80,321 |
) |
|
|
(65,304 |
) |
|
|
(78,159 |
) |
|
|
(74,871 |
) |
Net loans and lease finance receivables |
|
8,786,061 |
|
|
|
8,618,982 |
|
|
|
7,768,437 |
|
|
|
8,598,661 |
|
|
|
7,991,006 |
|
Premises and equipment, net |
|
47,327 |
|
|
|
47,348 |
|
|
|
49,711 |
|
|
|
50,048 |
|
|
|
50,188 |
|
Bank owned life insurance (BOLI) |
|
256,216 |
|
|
|
259,631 |
|
|
|
252,210 |
|
|
|
258,779 |
|
|
|
242,432 |
|
Intangibles |
|
22,610 |
|
|
|
24,396 |
|
|
|
26,216 |
|
|
|
25,376 |
|
|
|
29,328 |
|
Goodwill |
|
765,822 |
|
|
|
765,822 |
|
|
|
663,707 |
|
|
|
764,143 |
|
|
|
663,707 |
|
Other assets |
|
341,958 |
|
|
|
286,465 |
|
|
|
184,258 |
|
|
|
269,346 |
|
|
|
188,578 |
|
Total
assets |
$ |
16,395,160 |
|
|
$ |
16,871,888 |
|
|
$ |
16,011,935 |
|
|
$ |
16,911,661 |
|
|
$ |
15,350,521 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
8,702,899 |
|
|
$ |
9,009,962 |
|
|
$ |
8,326,073 |
|
|
$ |
8,839,577 |
|
|
$ |
7,817,627 |
|
Interest-bearing |
|
4,985,591 |
|
|
|
5,206,387 |
|
|
|
4,723,759 |
|
|
|
5,225,081 |
|
|
|
4,625,045 |
|
Total deposits |
|
13,688,490 |
|
|
|
14,216,349 |
|
|
|
13,049,832 |
|
|
|
14,064,658 |
|
|
|
12,442,672 |
|
Customer repurchase agreements |
|
518,996 |
|
|
|
515,134 |
|
|
|
660,734 |
|
|
|
573,307 |
|
|
|
610,479 |
|
Other borrowings |
|
161,197 |
|
|
|
9 |
|
|
|
81 |
|
|
|
40,655 |
|
|
|
2,008 |
|
Junior subordinated debentures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,581 |
|
Payable for securities purchased |
|
6,022 |
|
|
|
23,035 |
|
|
|
103,635 |
|
|
|
64,801 |
|
|
|
111,152 |
|
Other liabilities |
|
101,472 |
|
|
|
101,163 |
|
|
|
106,907 |
|
|
|
101,777 |
|
|
|
109,269 |
|
Total liabilities |
|
14,476,177 |
|
|
|
14,855,690 |
|
|
|
13,921,189 |
|
|
|
14,845,198 |
|
|
|
13,287,161 |
|
Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
2,301,770 |
|
|
|
2,264,490 |
|
|
|
2,087,716 |
|
|
|
2,263,627 |
|
|
|
2,048,876 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
(382,787 |
) |
|
|
(248,292 |
) |
|
|
3,030 |
|
|
|
(197,164 |
) |
|
|
14,484 |
|
Total stockholders'
equity |
|
1,918,983 |
|
|
|
2,016,198 |
|
|
|
2,090,746 |
|
|
|
2,066,463 |
|
|
|
2,063,360 |
|
Total liabilities
and stockholders' equity |
$ |
16,395,160 |
|
|
$ |
16,871,888 |
|
|
$ |
16,011,935 |
|
|
$ |
16,911,661 |
|
|
$ |
15,350,521 |
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
2021 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
$ |
106,884 |
|
$ |
100,077 |
|
$ |
84,683 |
|
$ |
389,192 |
|
$ |
356,594 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale |
|
20,091 |
|
|
18,543 |
|
|
9,891 |
|
|
68,508 |
|
|
38,273 |
|
Investment securities held-to-maturity |
|
13,837 |
|
|
12,834 |
|
|
7,917 |
|
|
49,048 |
|
|
22,175 |
|
Total investment income |
|
33,928 |
|
|
31,377 |
|
|
17,808 |
|
|
117,556 |
|
|
60,448 |
|
Dividends from FHLB stock |
|
305 |
|
|
258 |
|
|
261 |
|
|
1,207 |
|
|
1,019 |
|
Interest-earning deposits with other institutions |
|
1,001 |
|
|
3,476 |
|
|
779 |
|
|
6,713 |
|
|
2,569 |
|
Total interest income |
|
142,118 |
|
|
135,188 |
|
|
103,531 |
|
|
514,668 |
|
|
420,630 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
2,774 |
|
|
1,728 |
|
|
996 |
|
|
6,830 |
|
|
5,346 |
|
Borrowings and junior subordinated debentures |
|
1,949 |
|
|
122 |
|
|
140 |
|
|
2,325 |
|
|
734 |
|
Total interest expense |
|
4,723 |
|
|
1,850 |
|
|
1,136 |
|
|
9,155 |
|
|
6,080 |
|
Net interest income before provision for (recapture of) credit
losses |
|
137,395 |
|
|
133,338 |
|
|
102,395 |
|
|
505,513 |
|
|
414,550 |
|
Provision for (recapture of) credit losses |
|
2,500 |
|
|
2,000 |
|
|
- |
|
|
10,600 |
|
|
(25,500 |
) |
Net interest income after provision for (recapture of)
credit losses |
|
134,895 |
|
|
131,338 |
|
|
102,395 |
|
|
494,913 |
|
|
440,050 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
5,757 |
|
|
5,233 |
|
|
4,485 |
|
|
21,382 |
|
|
17,152 |
|
Trust and investment services |
|
2,867 |
|
|
2,867 |
|
|
3,112 |
|
|
11,518 |
|
|
11,571 |
|
Gain on OREO, net |
|
- |
|
|
- |
|
|
700 |
|
|
- |
|
|
1,177 |
|
Other |
|
3,841 |
|
|
3,490 |
|
|
4,088 |
|
|
17,089 |
|
|
17,485 |
|
Total noninterest income |
|
12,465 |
|
|
11,590 |
|
|
12,385 |
|
|
49,989 |
|
|
47,385 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
34,154 |
|
|
33,233 |
|
|
29,588 |
|
|
131,596 |
|
|
117,871 |
|
Occupancy and equipment |
|
5,820 |
|
|
5,779 |
|
|
4,822 |
|
|
22,737 |
|
|
19,756 |
|
Professional services |
|
2,574 |
|
|
2,438 |
|
|
1,925 |
|
|
9,362 |
|
|
7,967 |
|
Computer software expense |
|
3,362 |
|
|
3,243 |
|
|
3,063 |
|
|
13,503 |
|
|
11,584 |
|
Marketing and promotion |
|
1,712 |
|
|
1,488 |
|
|
1,242 |
|
|
6,296 |
|
|
4,623 |
|
Amortization of intangible assets |
|
1,724 |
|
|
1,846 |
|
|
1,892 |
|
|
7,566 |
|
|
8,240 |
|
(Recapture of) unfunded loan commitments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,000 |
) |
Acquisition related expenses |
|
- |
|
|
- |
|
|
153 |
|
|
6,013 |
|
|
962 |
|
Other |
|
5,073 |
|
|
5,000 |
|
|
5,295 |
|
|
19,482 |
|
|
19,784 |
|
Total noninterest expense |
|
54,419 |
|
|
53,027 |
|
|
47,980 |
|
|
216,555 |
|
|
189,787 |
|
Earnings before income taxes |
|
92,941 |
|
|
89,901 |
|
|
66,800 |
|
|
328,347 |
|
|
297,648 |
|
Income taxes |
|
26,773 |
|
|
25,262 |
|
|
19,104 |
|
|
92,922 |
|
|
85,127 |
|
Net earnings |
$ |
66,168 |
|
$ |
64,639 |
|
$ |
47,696 |
|
$ |
235,425 |
|
$ |
212,521 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.47 |
|
$ |
0.46 |
|
$ |
0.35 |
|
$ |
1.67 |
|
$ |
1.57 |
|
Diluted earnings per common share |
$ |
0.47 |
|
$ |
0.46 |
|
$ |
0.35 |
|
$ |
1.67 |
|
$ |
1.56 |
|
Cash dividends declared per common share |
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.18 |
|
$ |
0.77 |
|
$ |
0.72 |
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
Interest income - tax equivalent (TE) |
$ |
142,646 |
|
|
$ |
135,639 |
|
|
$ |
103,795 |
|
|
$ |
516,409 |
|
|
$ |
421,704 |
|
Interest expense |
|
4,723 |
|
|
|
1,850 |
|
|
|
1,136 |
|
|
|
9,155 |
|
|
|
6,080 |
|
Net interest income - (TE) |
$ |
137,923 |
|
|
$ |
133,789 |
|
|
$ |
102,659 |
|
|
$ |
507,254 |
|
|
$ |
415,624 |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets, annualized |
|
1.60 |
% |
|
|
1.52 |
% |
|
|
1.18 |
% |
|
|
1.39 |
% |
|
|
1.38 |
% |
Return on average equity, annualized |
|
13.68 |
% |
|
|
12.72 |
% |
|
|
9.05 |
% |
|
|
11.39 |
% |
|
|
10.30 |
% |
Efficiency ratio [1] |
|
36.31 |
% |
|
|
36.59 |
% |
|
|
41.80 |
% |
|
|
38.98 |
% |
|
|
41.09 |
% |
Noninterest expense to average assets, annualized |
|
1.32 |
% |
|
|
1.25 |
% |
|
|
1.19 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
Yield on average loans |
|
4.78 |
% |
|
|
4.56 |
% |
|
|
4.29 |
% |
|
|
4.49 |
% |
|
|
4.42 |
% |
Yield on average earning assets (TE) |
|
3.82 |
% |
|
|
3.51 |
% |
|
|
2.82 |
% |
|
|
3.36 |
% |
|
|
3.02 |
% |
Cost of deposits |
|
0.08 |
% |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.05 |
% |
|
|
0.04 |
% |
Cost of deposits and customer repurchase agreements |
|
0.08 |
% |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
Cost of funds |
|
0.13 |
% |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
|
|
0.05 |
% |
Net interest margin (TE) |
|
3.69 |
% |
|
|
3.46 |
% |
|
|
2.79 |
% |
|
|
3.30 |
% |
|
|
2.97 |
% |
[1] Noninterest expense divided by net interest income before
provision for credit losses plus noninterest income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
138,890,705 |
|
|
|
138,887,911 |
|
|
|
134,955,690 |
|
|
|
139,652,019 |
|
|
|
135,164,972 |
|
Diluted |
|
139,438,103 |
|
|
|
139,346,975 |
|
|
|
135,183,895 |
|
|
|
140,012,135 |
|
|
|
135,381,867 |
|
Dividends declared |
$ |
27,995 |
|
|
$ |
27,965 |
|
|
$ |
24,401 |
|
|
$ |
108,146 |
|
|
$ |
97,814 |
|
Dividend payout ratio [2] |
|
42.31 |
% |
|
|
43.26 |
% |
|
|
51.16 |
% |
|
|
45.94 |
% |
|
|
46.03 |
% |
[2] Dividends declared on common stock divided by net
earnings. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding - (end of period) |
|
139,818,703 |
|
|
|
139,805,445 |
|
|
|
135,526,025 |
|
|
|
|
|
Book value per share |
$ |
13.94 |
|
|
$ |
13.44 |
|
|
$ |
15.36 |
|
|
|
|
|
Tangible book value per share |
$ |
8.30 |
|
|
$ |
7.79 |
|
|
$ |
10.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
6,893 |
|
|
|
|
|
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 |
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
6,893 |
|
|
|
|
|
Troubled debt restructured performing loans |
$ |
7,817 |
|
|
$ |
5,828 |
|
|
$ |
5,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of nonperforming assets to total loans outstanding and
OREO |
|
0.05 |
% |
|
|
0.12 |
% |
|
|
0.09 |
% |
|
|
|
|
Percentage of nonperforming assets to total assets |
|
0.03 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
|
|
Allowance for credit losses to nonperforming assets |
|
1726.51 |
% |
|
|
816.46 |
% |
|
|
943.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
2022 |
|
|
|
2021 |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
82,601 |
|
|
$ |
80,222 |
|
|
$ |
65,364 |
|
|
$ |
65,019 |
|
|
$ |
93,692 |
|
Suncrest FV PCD loans |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,605 |
|
|
|
- |
|
Total charge-offs |
|
(127 |
) |
|
|
(46 |
) |
|
|
(375 |
) |
|
|
(197 |
) |
|
|
(3,371 |
) |
Total recoveries on loans previously charged-off |
|
143 |
|
|
|
425 |
|
|
|
30 |
|
|
|
1,090 |
|
|
|
198 |
|
Net recoveries (charge-offs) |
|
16 |
|
|
|
379 |
|
|
|
(345 |
) |
|
|
893 |
|
|
|
(3,173 |
) |
Provision for (recapture of) credit losses |
|
2,500 |
|
|
|
2,000 |
|
|
|
- |
|
|
|
10,600 |
|
|
|
(25,500 |
) |
Allowance for credit losses at end of period |
$ |
85,117 |
|
|
$ |
82,601 |
|
|
$ |
65,019 |
|
|
$ |
85,117 |
|
|
$ |
65,019 |
|
|
|
|
|
|
|
|
|
|
|
Net recoveries (charge-offs) to average loans |
|
0.000 |
% |
|
|
0.004 |
% |
|
|
-0.004 |
% |
|
|
0.010 |
% |
|
|
-0.039 |
% |
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
Allowance For Credit Losses |
|
Allowance as a % of Total Loans by Respective Loan
Type |
|
Allowance For Credit Losses |
|
Allowance as a % of Total Loans by Respective Loan
Type |
|
Allowance For Credit Losses |
|
Allowance as a % of Total Loans by Respective Loan
Type |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
64.8 |
|
0.94 |
% |
|
$ |
64.9 |
|
0.97 |
% |
|
$ |
50.9 |
|
0.88 |
% |
Construction |
|
1.7 |
|
1.93 |
% |
|
|
1.7 |
|
2.25 |
% |
|
|
0.8 |
|
1.23 |
% |
SBA |
|
2.8 |
|
0.97 |
% |
|
|
2.8 |
|
0.95 |
% |
|
|
2.7 |
|
0.92 |
% |
SBA - PPP |
|
- |
|
- |
|
|
|
- |
|
- |
|
|
|
- |
|
- |
|
Commercial and industrial |
|
10.2 |
|
1.08 |
% |
|
|
7.1 |
|
0.75 |
% |
|
|
6.7 |
|
0.82 |
% |
Dairy & livestock and agribusiness |
|
4.4 |
|
1.01 |
% |
|
|
5.0 |
|
1.55 |
% |
|
|
3.0 |
|
0.79 |
% |
Municipal lease finance receivables |
|
0.3 |
|
0.36 |
% |
|
|
0.2 |
|
0.31 |
% |
|
|
0.1 |
|
0.22 |
% |
SFR mortgage |
|
0.4 |
|
0.14 |
% |
|
|
0.4 |
|
0.12 |
% |
|
|
0.2 |
|
0.08 |
% |
Consumer and other loans |
|
0.5 |
|
0.69 |
% |
|
|
0.5 |
|
0.60 |
% |
|
|
0.6 |
|
0.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
85.1 |
|
0.94 |
% |
|
$ |
82.6 |
|
0.94 |
% |
|
$ |
65.0 |
|
0.82 |
% |
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, |
$ |
29.25 |
|
$ |
25.26 |
|
|
$ |
21.85 |
|
|
$ |
19.00 |
|
|
$ |
21.34 |
|
|
$ |
16.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
|
$ |
106,884 |
|
|
$ |
100,077 |
|
|
$ |
92,770 |
|
|
$ |
89,461 |
|
|
$ |
84,683 |
|
Investment securities and other |
|
|
|
35,234 |
|
|
|
35,111 |
|
|
|
30,492 |
|
|
|
24,639 |
|
|
|
18,848 |
|
Total interest income |
|
|
|
142,118 |
|
|
|
135,188 |
|
|
|
123,262 |
|
|
|
114,100 |
|
|
|
103,531 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
2,774 |
|
|
|
1,728 |
|
|
|
1,201 |
|
|
|
1,127 |
|
|
|
996 |
|
Other borrowings |
|
|
|
1,949 |
|
|
|
122 |
|
|
|
121 |
|
|
|
133 |
|
|
|
140 |
|
Total interest expense |
|
|
|
4,723 |
|
|
|
1,850 |
|
|
|
1,322 |
|
|
|
1,260 |
|
|
|
1,136 |
|
Net interest income before provision for |
|
|
|
|
|
|
|
|
|
|
credit losses |
|
|
|
137,395 |
|
|
|
133,338 |
|
|
|
121,940 |
|
|
|
112,840 |
|
|
|
102,395 |
|
Provision for credit losses |
|
|
|
2,500 |
|
|
|
2,000 |
|
|
|
3,600 |
|
|
|
2,500 |
|
|
|
- |
|
Net interest income after provision for |
|
|
|
|
|
|
|
|
|
|
credit losses |
|
|
|
134,895 |
|
|
|
131,338 |
|
|
|
118,340 |
|
|
|
110,340 |
|
|
|
102,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
12,465 |
|
|
|
11,590 |
|
|
|
14,670 |
|
|
|
11,264 |
|
|
|
12,385 |
|
Noninterest expense |
|
|
|
54,419 |
|
|
|
53,027 |
|
|
|
50,871 |
|
|
|
58,238 |
|
|
|
47,980 |
|
Earnings before income taxes |
|
|
|
92,941 |
|
|
|
89,901 |
|
|
|
82,139 |
|
|
|
63,366 |
|
|
|
66,800 |
|
Income taxes |
|
|
|
26,773 |
|
|
|
25,262 |
|
|
|
23,081 |
|
|
|
17,806 |
|
|
|
19,104 |
|
Net earnings |
|
|
$ |
66,168 |
|
|
$ |
64,639 |
|
|
$ |
59,058 |
|
|
$ |
45,560 |
|
|
$ |
47,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
28.81 |
% |
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
28.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.31 |
|
|
$ |
0.35 |
|
Diluted earnings per common share |
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared |
|
|
$ |
27,995 |
|
|
$ |
27,965 |
|
|
$ |
26,719 |
|
|
$ |
25,467 |
|
|
$ |
24,401 |
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Loan Portfolio by Type |
|
December 31, |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
6,884,948 |
|
|
$ |
6,685,245 |
|
|
$ |
6,643,628 |
|
|
$ |
6,470,841 |
|
|
$ |
5,789,730 |
|
Construction |
|
88,271 |
|
|
|
76,495 |
|
|
|
60,584 |
|
|
|
73,478 |
|
|
|
62,264 |
|
SBA |
|
290,908 |
|
|
|
296,664 |
|
|
|
297,109 |
|
|
|
311,238 |
|
|
|
288,600 |
|
SBA - PPP |
|
9,087 |
|
|
|
17,348 |
|
|
|
66,955 |
|
|
|
121,189 |
|
|
|
186,585 |
|
Commercial and industrial |
|
948,683 |
|
|
|
952,231 |
|
|
|
941,595 |
|
|
|
924,780 |
|
|
|
813,063 |
|
Dairy & livestock and agribusiness |
|
433,564 |
|
|
|
323,105 |
|
|
|
273,594 |
|
|
|
292,784 |
|
|
|
386,219 |
|
Municipal lease finance receivables |
|
81,126 |
|
|
|
76,656 |
|
|
|
64,437 |
|
|
|
65,543 |
|
|
|
45,933 |
|
SFR mortgage |
|
266,024 |
|
|
|
263,646 |
|
|
|
260,218 |
|
|
|
255,136 |
|
|
|
240,654 |
|
Consumer and other loans |
|
76,781 |
|
|
|
82,746 |
|
|
|
84,109 |
|
|
|
76,695 |
|
|
|
74,665 |
|
Gross loans, net of deferred loan fees and discounts |
|
9,079,392 |
|
|
|
8,774,136 |
|
|
|
8,692,229 |
|
|
|
8,591,684 |
|
|
|
7,887,713 |
|
Allowance for credit losses |
|
(85,117 |
) |
|
|
(82,601 |
) |
|
|
(80,222 |
) |
|
|
(76,119 |
) |
|
|
(65,019 |
) |
Net loans |
$ |
8,994,275 |
|
|
$ |
8,691,535 |
|
|
$ |
8,612,007 |
|
|
$ |
8,515,565 |
|
|
$ |
7,822,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Composition by Type and Customer Repurchase
Agreements |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
8,164,364 |
|
|
$ |
8,764,556 |
|
|
$ |
8,881,223 |
|
|
$ |
9,107,304 |
|
|
$ |
8,104,056 |
|
Investment checking |
|
723,870 |
|
|
|
751,618 |
|
|
|
695,054 |
|
|
|
714,567 |
|
|
|
655,333 |
|
Savings and money market |
|
3,653,385 |
|
|
|
3,991,531 |
|
|
|
4,145,634 |
|
|
|
4,289,550 |
|
|
|
3,889,371 |
|
Time deposits |
|
294,626 |
|
|
|
364,694 |
|
|
|
350,308 |
|
|
|
376,357 |
|
|
|
327,682 |
|
Total deposits |
|
12,836,245 |
|
|
|
13,872,399 |
|
|
|
14,072,219 |
|
|
|
14,487,778 |
|
|
|
12,976,442 |
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
565,431 |
|
|
|
467,844 |
|
|
|
502,829 |
|
|
|
598,909 |
|
|
|
642,388 |
|
Total deposits and customer repurchase agreements |
$ |
13,401,676 |
|
|
$ |
14,340,243 |
|
|
$ |
14,575,048 |
|
|
$ |
15,086,687 |
|
|
$ |
13,618,830 |
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets and Delinquency Trends |
|
December 31, |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
2,657 |
|
|
$ |
6,705 |
|
|
$ |
6,843 |
|
|
$ |
7,055 |
|
|
$ |
3,607 |
|
Construction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
443 |
|
|
|
1,065 |
|
|
|
1,075 |
|
|
|
1,575 |
|
|
|
1,034 |
|
SBA - PPP |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
Commercial and industrial |
|
1,320 |
|
|
|
1,308 |
|
|
|
1,655 |
|
|
|
1,771 |
|
|
|
1,714 |
|
Dairy & livestock and agribusiness |
|
477 |
|
|
|
1,007 |
|
|
|
3,354 |
|
|
|
2,655 |
|
|
|
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
167 |
|
|
|
380 |
|
Consumer and other loans |
|
33 |
|
|
|
32 |
|
|
|
37 |
|
|
|
40 |
|
|
|
158 |
|
Total |
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
12,964 |
|
|
$ |
13,265 |
|
|
$ |
6,893 |
|
% of Total loans |
|
0.05 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.09 |
% |
|
|
|
|
|
|
|
|
|
|
Past due 30-89 days: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
565 |
|
|
$ |
438 |
|
Construction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
556 |
|
|
|
- |
|
|
|
- |
|
|
|
549 |
|
|
|
979 |
|
Commercial and industrial |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
Dairy & livestock and agribusiness |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,099 |
|
|
|
- |
|
SFR mortgage |
|
388 |
|
|
|
- |
|
|
|
- |
|
|
|
403 |
|
|
|
1,040 |
|
Consumer and other loans |
|
175 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
1,119 |
|
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
2,622 |
|
|
$ |
2,457 |
|
% of Total loans |
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
OREO: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SBA |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Total nonperforming, past due, and
OREO |
$ |
6,049 |
|
|
$ |
10,117 |
|
|
$ |
13,523 |
|
|
$ |
15,887 |
|
|
$ |
9,350 |
|
% of Total loans |
|
0.07 |
% |
|
|
0.12 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.12 |
% |
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB Financial Corp. Consolidated |
Capital Ratios |
|
Minimum Required Plus Capital Conservation
Buffer |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0 |
% |
|
9.5 |
% |
|
9.1 |
% |
|
9.2 |
% |
Common equity Tier 1 capital ratio |
|
7.0 |
% |
|
13.5 |
% |
|
13.5 |
% |
|
14.9 |
% |
Tier 1 risk-based capital ratio |
|
8.5 |
% |
|
13.5 |
% |
|
13.5 |
% |
|
14.9 |
% |
Total risk-based capital ratio |
|
10.5 |
% |
|
14.4 |
% |
|
14.3 |
% |
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
|
|
7.4 |
% |
|
7.0 |
% |
|
9.2 |
% |
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 December 31,
2022, September 30, 2022 and December 31, 2021. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
1,948,517 |
|
|
$ |
1,878,886 |
|
|
$ |
2,081,503 |
|
|
Less: Goodwill |
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(663,707 |
) |
|
Less: Intangible assets |
|
(21,742 |
) |
|
|
(23,466 |
) |
|
|
(25,394 |
) |
|
Tangible book value |
$ |
1,160,953 |
|
|
$ |
1,089,598 |
|
|
$ |
1,392,402 |
|
|
Common shares issued and outstanding |
|
139,818,703 |
|
|
|
139,805,445 |
|
|
|
135,526,025 |
|
|
Tangible book value per share |
$ |
8.30 |
|
|
$ |
7.79 |
|
|
$ |
10.27 |
|
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 |
|
Year Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
66,168 |
|
|
$ |
64,639 |
|
|
$ |
47,696 |
|
|
$ |
235,425 |
|
|
$ |
212,521 |
|
|
Add: Amortization of intangible assets |
|
1,724 |
|
|
|
1,846 |
|
|
|
1,892 |
|
|
|
7,566 |
|
|
|
8,240 |
|
|
Less: Tax effect of amortization of intangible assets [1] |
|
(510 |
) |
|
|
(546 |
) |
|
|
(559 |
) |
|
|
(2,237 |
) |
|
|
(2,436 |
) |
|
Tangible net income |
$ |
67,382 |
|
|
$ |
65,939 |
|
|
$ |
49,029 |
|
|
$ |
240,754 |
|
|
$ |
218,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
$ |
1,918,983 |
|
|
$ |
2,016,198 |
|
|
$ |
2,090,746 |
|
|
$ |
2,066,463 |
|
|
$ |
2,063,360 |
|
|
Less: Average goodwill |
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(663,707 |
) |
|
|
(764,143 |
) |
|
|
(663,707 |
) |
|
Less: Average intangible assets |
|
(22,610 |
) |
|
|
(24,396 |
) |
|
|
(26,216 |
) |
|
|
(25,376 |
) |
|
|
(29,328 |
) |
|
Average tangible common equity |
$ |
1,130,551 |
|
|
$ |
1,225,980 |
|
|
$ |
1,400,823 |
|
|
$ |
1,276,944 |
|
|
$ |
1,370,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity, annualized |
|
13.68 |
% |
|
|
12.72 |
% |
|
|
9.05 |
% |
|
|
11.39 |
% |
|
|
10.30 |
% |
|
Return on average tangible common equity, annualized |
|
23.65 |
% |
|
|
21.34 |
% |
|
|
13.89 |
% |
|
|
18.85 |
% |
|
|
15.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Tax effected at respective statutory rates. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB Financial (NASDAQ:CVBF)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
CVB Financial (NASDAQ:CVBF)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024