CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (the “Company”), announced earnings for the quarter
ended March 31, 2023.
CVB Financial Corp. reported net income of $59.3 million for the
quarter ended March 31, 2023, compared with $66.2 million for the
fourth quarter of 2022 and $45.6 million for the first quarter of
2022. Diluted earnings per share were $0.42 for the first quarter
of 2023, compared to $0.47 for the prior quarter and $0.31 for the
same period last year. The first quarter of 2023 included $1.5
million in provision for credit losses, compared to $2.5 million in
the fourth quarter of 2022 and $2.5 million in the first quarter of
2022. Net income of $59.3 million for the first quarter of 2023
produced an annualized return on average equity (“ROAE”) of 12.15%,
an annualized return on average tangible common equity (“ROATCE”)
of 20.59%, and an annualized return on average assets (“ROAA”) of
1.47%. Our net interest margin, tax equivalent (“NIM”), was 3.45%
for the first quarter of 2023, while our efficiency ratio was
39.50%.
David Brager, President and Chief Executive Officer of Citizens
Business Bank, commented, “We produced $59.3 million in net income
in the first quarter of 2023. These results reflect our continued
focus on serving the comprehensive financial needs of our
customers. I would like to thank our customers for their loyalty
and our associates for their commitment to assisting our customers
achieve their goals.”
INCOME STATEMENT HIGHLIGHTS
|
Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in thousands, except per share amounts) |
Net interest income |
$ |
125,728 |
|
|
$ |
137,395 |
|
|
$ |
112,840 |
|
(Provision for) recapture of
credit losses |
(1,500 |
) |
|
(2,500 |
) |
|
(2,500 |
) |
Noninterest income |
13,202 |
|
|
12,465 |
|
|
11,264 |
|
Noninterest expense |
(54,881 |
) |
|
(54,419 |
) |
|
(58,238 |
) |
Income taxes |
(23,279 |
) |
|
(26,773 |
) |
|
(17,806 |
) |
Net earnings |
$ |
59,270 |
|
|
$ |
66,168 |
|
|
$ |
45,560 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.31 |
|
Diluted |
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
NIM |
3.45 |
% |
|
3.69 |
% |
|
2.90 |
% |
ROAA |
1.47 |
% |
|
1.60 |
% |
|
1.06 |
% |
ROAE |
12.15 |
% |
|
13.68 |
% |
|
8.24 |
% |
ROATCE |
20.59 |
% |
|
23.65 |
% |
|
13.08 |
% |
Efficiency ratio |
39.50 |
% |
|
36.31 |
% |
|
46.93 |
% |
Noninterest expense to average
assets, annualized |
1.36 |
% |
|
1.32 |
% |
|
1.36 |
% |
|
|
|
|
|
|
|
|
|
Net Interest IncomeNet interest income was
$125.7 million for the first quarter of 2023. This represented a
$11.7 million, or 8.49%, decrease from the fourth quarter of 2022,
and a $12.9 million, or 11.42%, increase from the first quarter of
2022. The quarter-over-quarter decline in net interest income was
primarily due to a $9.7 million increase in interest expense from
higher levels of short-term borrowings. A nine basis point increase
in the cost of deposits and customer repos, combined with the
higher cost borrowings resulted in a 36 basis point increase in our
cost of funds. The interest-earning asset yield expanded by nine
basis point over the prior quarter, primarily due to an increase in
loan yields from 4.78% in the fourth quarter of 2022 to 4.90% for
the first quarter of 2023. The year-over-year increase in net
interest income was primarily due to a 55 basis point expansion of
the net interest margin. In comparison to the first quarter of
2022, interest income grew by $28.7 million, or 25.14%, primarily
due to a 98 basis point expansion of the yield on earning assets.
The year-over-year increase in interest expense of $15.8 million
resulted primarily from the $972 million in average short term
borrowings in the first quarter of 2023 and a 14 basis point
increase in cost of deposits and customer repurchases.
Net Interest MarginOur tax equivalent net
interest margin was 3.45% for the first quarter of 2023, compared
to 3.69% for the fourth quarter of 2022 and 2.90% for the first
quarter of 2022. The 24 basis point decrease in our net interest
margin compared to the fourth quarter of 2022, was primarily due to
a 36 basis point increase in our cost of funds. Cost of funds
increased in part due to an $810 million increase in short-term
borrowings, which had an average cost of 4.81% during the first
quarter of 2023. The cost of interest-bearing deposits increased by
25 basis points from the fourth quarter, but the total cost of
deposits and customer repurchases only increased by nine basis
points, as noninterest-bearing deposits were more than 63% of
average deposits during the first quarter. The nine basis point
increase in the interest-earning asset yield was due to a 12 basis
point increase in loan yields and a quarter-over-quarter change in
the composition of average earning assets, with loans growing from
59.67% to 60.55% of earnings assets. The 55 basis point
increase in net interest margin, compared to the first quarter of
2022 was primarily the result of a 98 basis point increase in
earning asset yield. Loan yields grew from 4.27% for the first
quarter of 2022 to 4.90% for the first quarter of 2023. Likewise,
the yield on investment securities increased by 67 basis points
from the prior year quarter. Loan balances grew to 60.55% of
earning assets on average for the first quarter of 2023, compared
to 53.25% for the first quarter of 2022. In addition to loan
growth, excess liquidity held at the Federal Reserve was invested
into higher yielding investments, which increased to 38.93% of
earning assets on average for the first quarter of 2023 from 36.19%
for the first quarter of 2022. As a result of growth in loans and
investment securities, our average balance at the Fed declined from
10.4% of earning assets in the first quarter of 2022 to 0.3% in the
first quarter of 2023. Total cost of funds of 0.49% for
the first quarter of 2023 increased from 0.03% for the year ago
quarter. This 46 basis point increase in cost of funds was the
result of a 39 basis point increase in the cost of interest-bearing
deposits and an average cost of 4.81% on $972 million of short-term
borrowings for the first quarter of 2023. On average,
noninterest-bearing deposits were 63.65% of total deposits during
the most recent quarter, compared to 63.58% for the fourth quarter
of 2022 and 61.48% for the first quarter of 2022.
Earning Assets and Deposits On average, earning
assets declined by $60.3 million and by $1.16 billion, compared to
the fourth and first quarters of 2022, respectively. The $60.3
million quarter-over-quarter decline in earning assets resulted
from an $88.4 million decrease in interest-earning funds held at
the Federal Reserve and average investment securities declining by
$79.6 million, which was partially offset by average loans
increasing by $94.7 million. Compared to the first quarter of 2022,
average loans increased by $462.9 million, while the average amount
of funds held at the Federal Reserve declined by $1.62 billion from
the first quarter of 2022. Noninterest-bearing deposits declined on
average by $610.2 million, or 7.01%, from the fourth quarter of
2022, while interest-bearing deposits and customer repurchase
agreements declined on average by $332.6 million. Compared to the
first quarter of 2022, total deposits and customer repurchase
agreements declined on average by $1.6 billion, or 10.77%,
including a decline of $628.0 million in noninterest-bearing
deposits.
|
Three Months Ended |
SELECTED FINANCIAL HIGHLIGHTS |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in
thousands) |
Yield on
average investment securities (TE) |
|
2.37% |
|
|
|
2.36% |
|
|
|
1.70% |
|
Yield on
average loans |
|
4.90% |
|
|
|
4.78% |
|
|
|
4.27% |
|
Core Loan
Yield [1] |
|
4.85% |
|
|
|
4.67% |
|
|
|
4.11% |
|
Yield on
average earning assets (TE) |
|
3.91% |
|
|
|
3.82% |
|
|
|
2.93% |
|
Cost of
deposits |
|
0.17% |
|
|
|
0.08% |
|
|
|
0.03% |
|
Cost of
funds |
|
0.49% |
|
|
|
0.13% |
|
|
|
0.03% |
|
Net interest
margin (TE) |
|
3.45% |
|
|
|
3.69% |
|
|
|
2.90% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Asset Mix |
Avg |
|
% of Total |
|
Avg |
|
% of Total |
Avg |
|
% of Total |
Total investment securities |
$ |
5,762,728 |
|
38.93 |
% |
|
$ |
5,842,283 |
|
39.31 |
% |
|
$ |
5,776,440 |
|
36.19 |
% |
Interest-earning deposits with other institutions |
|
47,934 |
|
0.32 |
% |
|
|
133,931 |
|
0.90 |
% |
|
|
1,666,473 |
|
10.44 |
% |
Loans |
|
8,963,323 |
|
60.55 |
% |
|
|
8,868,673 |
|
59.67 |
% |
|
|
8,500,436 |
|
53.25 |
% |
Total interest-earning assets |
|
14,802,853 |
|
|
|
|
14,863,178 |
|
|
|
|
15,962,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Represents yield on average loans excluding the impact of
discount accretion and PPP loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit LossesThe first quarter of
2023 included $1.5 million in provision for credit losses, compared
to a $2.5 million in provision for credit losses in the fourth
quarter of 2022 and $2.5 million in the first quarter of 2022. The
$1.5 million provision for credit losses in the most recent quarter
was the result of an overall increase in projected loss rates from
0.94% at the end of 2022 to 0.97% at March 31, 2023. Projected loss
rates continue to be impacted by a deteriorating economic forecast
that assumes a modest recession starting in late 2023 and modest
GDP growth through 2024, as well as lower commercial real estate
values and an increase in the rate of unemployment. Our forecast
reflects GDP growth of 1.4% for all of 2023 and 0.9% in 2024.
Unemployment is forecasted to be 4.2% in 2023 and 5.1% in 2024.
Noninterest IncomeNoninterest income was $13.2
million for the first quarter of 2023, compared with $12.5 million
for the fourth quarter of 2022 and $11.3 million for the first
quarter of 2022. Service charges on deposits decreased by $413,000,
or 7.17% over the fourth quarter of 2022 and increased by $285,000,
or 5.63% in comparison to the first quarter of 2022. Trust and
investment services income was relatively flat compared to the
fourth quarter of 2022 but grew by $92,000 year-over-year. The
first quarter of 2023 included approximately $500,000 in interest
rate swap related fees and a recapture of a previous impairment
charge of $500,000 as a result of the payoff of a CRA investment
that was previously identified as impaired. The fourth quarter of
2022 included $1.0 million in death benefits that exceeded the
asset value of certain BOLI policies.
Noninterest ExpenseNoninterest expense for the
first quarter of 2023 was $54.9 million, compared to $54.4 million
for the fourth quarter of 2022 and $58.2 million for the first
quarter of 2022. The first quarter of 2023 included $500,000 in
provision for unfunded loan commitments. Acquisition expense
related to the merger of Suncrest Bank was $5.6 million for the
first quarter of 2022. As a percentage of average assets,
noninterest expense was 1.36% for the first quarter of 2023,
compared to 1.32% for the fourth quarter of 2022 and 1.36% for the
first quarter of 2022. The efficiency ratio for the first quarter
of 2023 was 39.50%, compared to 36.31% for the fourth quarter of
2022 and 46.93% for the first quarter of 2022.
Income TaxesOur effective tax rate for the
quarter ended March 31, 2023, was 28.20%, compared with 28.10% for
the same period of 2022. 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
$16.27 billion at March 31, 2023. This represented a decrease of
$202.5 million, or 1.23%, from total assets of $16.48 billion at
December 31, 2022. Interest-earning assets of $14.80 billion at
March 31, 2023, decreased by $172.8 million, or 1.15%, when
compared with $14.97 billion at December 31, 2022. The decrease in
interest-earning assets was primarily due to a $136.9 million
decrease in total loans and a $69.0 million decrease in investment
securities.
Total assets at March 31, 2023, decreased by $1.27 billion, or
7.21%, from total assets of $17.54 billion at March 31, 2022.
Interest-earning assets decreased by $1.31 billion, or 8.13%, when
compared with $16.11 billion at March 31, 2022. The decrease in
interest-earning assets included a $1.42 billion decrease in
interest-earning balances due from the Federal Reserve and a $269.6
million decrease in investment securities, partially offset by a
$350.8 million increase in total loans. The increase in total loans
included a $115.4 million decrease in PPP loans with a remaining
outstanding balance totaling $5.8 million as of March 31, 2023.
Excluding PPP loans, total loans increased by $466.2 million from
March 31, 2022.
Investment SecuritiesTotal investment
securities were $5.74 billion at March 31, 2023, a decrease of
$69.0 million, or 1.19%, from $5.81 billion at December 31, 2022
and a decrease of $269.6 million, or 4.49%, from $6.01 billion at
March 31, 2022.
At March 31, 2023, investment securities held-to-maturity
(“HTM”) totaled $2.54 billion, a decrease of $18.3 million, or
0.72%, from December 31, 2022 and a $173.2 million increase, or
7.33%, from March 31, 2022.
At March 31, 2023, investment securities available-for-sale
(“AFS”) totaled $3.20 billion, inclusive of a pre-tax net
unrealized loss of $459.7 million. AFS securities decreased by
$50.7 million, or 1.56%, from $3.26 billion at December 31, 2022
and decreased by $442.8 million, or 12.14%, from March 31,
2022.
Combined, the AFS and HTM investments in mortgage backed
securities (“MBS”) and collateralized mortgage obligations (“CMO”)
totaled $4.70 billion or approximately 82% of the total investment
securities at March 31, 2023. 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 $543.3 million of Government Agency
securities (HTM) at March 31, 2023, that represent approximately
9.5% of the total investment securities.
Our combined AFS and HTM municipal securities totaled $498.5
million as of March 31, 2023, or approximately 8.7% 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 15.80%, Minnesota at
11.20%, California at 9.51%, Ohio at 6.30%, Massachusetts at 6.26%,
and Washington at 5.78%.
LoansTotal loans and leases, at amortized cost,
of $8.94 billion at March 31, 2023, decreased by $136.9 million, or
1.51%, from December 31, 2022. After adjusting for seasonality of
dairy and livestock and PPP loans, our core loans declined by $6.5
million, or 0.07%, from the end of the fourth quarter. The $136.9
million decrease in total loans quarter-over-quarter included
decreases of $127.2 million in dairy & livestock loans, $50.5
million in commercial and industrial loans, $7.4 million in SBA
loans, $4.3 million in construction loans, $3.7 million in SFR
mortgage loans, $3.3 million in PPP loans, and $5.7 million in
consumer and other loans, partially offset by an increase of $65.4
million in commercial real estate loans. The decline in dairy and
livestock loans primarily relates to the seasonal peak in line
utilization at the end of every calendar year, demonstrated by a
decline in utilization from 78% at the end of 2022 to 68%.
Likewise, the decline in commercial and industrial loans was
impacted by a decrease in line utilization from 33% at the end of
2022 to 28% at March 31, 2023.
Total loans and leases, at amortized cost, increased by $350.8
million, or 4.08%, from March 31, 2022. After adjusting for PPP
loans, our core loans grew by $466.2 million, or 5.50%, from the
end of the first quarter of 2022. Commercial real estate loans grew
by $479.5 million, dairy & livestock and agribusiness loans
grew by $15.0 million, municipal lease financings increased by
$14.0 million, construction loans increased by $10.5 million, and
SFR mortgage loans grew by $7.2 million. This core loan growth was
partially offset by decreases of $27.8 million in SBA loans, $26.6
million in commercial and industrial loans, and $5.6 million in
consumer and other loans.
Asset QualityDuring the first quarter of 2023,
we experienced credit charge-offs of $110,000 and total recoveries
of $33,000, resulting in net charge-offs of $77,000. The allowance
for credit losses (“ACL”) totaled $86.5 million at March 31, 2023,
compared to $85.1 million at December 31, 2022 and $76.1 million at
March 31, 2022. The ACL increased by $1.4 million for the first
quarter of 2023, including $1.5 million in provision for credit
losses. At March 31, 2023, ACL as a percentage of total loans and
leases outstanding was 0.97%. This compares to 0.94% and 0.89% at
December 31, 2022 and March 31, 2022, respectively.
Nonperforming loans, defined as nonaccrual loans, including
modified loans on nonaccrual, plus loans 90 days past due and
accruing interest, and nonperforming assets, defined as
nonperforming loans plus OREO, are highlighted below.
Nonperforming Assets and Delinquency Trends |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Nonperforming loans |
(Dollars in
thousands) |
Commercial real estate |
$ |
2,634 |
|
|
$ |
2,657 |
|
|
$ |
7,055 |
|
SBA |
|
702 |
|
|
|
443 |
|
|
|
1,575 |
|
SBA - PPP |
|
- |
|
|
|
- |
|
|
|
2 |
|
Commercial and industrial |
|
2,049 |
|
|
|
1,320 |
|
|
|
1,771 |
|
Dairy & livestock and agribusiness |
|
406 |
|
|
|
477 |
|
|
|
2,655 |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
167 |
|
Consumer and other loans |
|
384 |
|
|
|
33 |
|
|
|
40 |
|
Total |
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
13,265 |
|
% of Total loans |
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.15 |
% |
OREO |
|
|
|
|
|
Commercial real estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SFR mortgage |
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
Total nonperforming assets |
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
13,265 |
|
% of
Nonperforming assets to total assets |
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.08 |
% |
|
|
|
|
|
|
Past
due 30-89 days |
|
|
|
|
|
Commercial real estate |
$ |
425 |
|
|
$ |
- |
|
|
$ |
565 |
|
SBA |
|
575 |
|
|
|
556 |
|
|
|
549 |
|
Commercial and industrial |
|
- |
|
|
|
- |
|
|
|
6 |
|
Dairy & livestock and agribusiness |
|
183 |
|
|
|
- |
|
|
|
1,099 |
|
SFR mortgage |
|
- |
|
|
|
388 |
|
|
|
403 |
|
Consumer and other loans |
|
- |
|
|
|
175 |
|
|
|
- |
|
Total |
$ |
1,183 |
|
|
$ |
1,119 |
|
|
$ |
2,622 |
|
% of Total loans |
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
Classified Loans |
$ |
66,977 |
|
|
$ |
78,658 |
|
|
$ |
64,108 |
|
|
The $1.2 million increase in nonperforming loans from December
31, 2022 was primarily due to an increase of $729,000 in commercial
and industrial loans. Classified loans are loans that are graded
“substandard” or worse. Classified loans decreased $11.7 million
quarter-over-quarter, primarily due to a $7.9 million decrease in
classified commercial real estate loans. Total classified loans at
March 31, 2023, included $22.3 million of classified loans acquired
from Suncrest. Excluding the $22.3 million of acquired classified
Suncrest loans, classified loans decreased from December 31, 2022
by approximately $11.1 million.
Deposits & Customer Repurchase
AgreementsDeposits of $12.27 billion and customer
repurchase agreements of $490.2 million totaled $12.76 billion at
March 31, 2023. This represented a decrease of $639.6 million, or
4.77%, when compared with $13.40 billion at December 31, 2022.
Total deposits and customer repurchase agreements decreased $2.32
billion, or 15.41% when compared with $15.09 billion at March 31,
2022. Higher interest rates that have resulted from the Federal
Reserve’s significant increase in the federal funds rate over the
last year have continued to impact deposit levels, including
approximately $370 million of funds on deposit at the end of 2022
that were transferred from the Bank’s balance sheet to Citizens
Trust for investment in higher yielding securities such as treasury
notes.
Noninterest-bearing deposits were $8.09 billion on average for
the first quarter of 2023, a decrease of $610.2 million, or 7.01%,
when compared to $8.70 billion on average for the fourth quarter of
2022. Noninterest-bearing deposits decreased on average by $628.0
million, or 7.20% when compared to $8.72 billion on average for the
first quarter of 2022. For the first quarter of 2023, average
noninterest-bearing deposits were 63.65% of total deposits,
compared to 63.58% for the prior quarter, and 61.48% for the year
ago quarter.
CapitalThe Company’s total equity was $1.99
billion at March 31, 2023. This represented an overall increase of
$41.3 million from total equity of $1.95 billion at December 31,
2022. Increases to equity included $59.3 million in net earnings
and a $28.7 million increase in other comprehensive income from the
tax effected impact of the increase in market value of
available-for-sale securities. Decreases included $28.0 million in
cash dividends. During the first quarter of 2023, we repurchased,
under our 10b5-1 stock repurchase plan, 791,800 shares of common
stock, at an average repurchase price of $23.43, totaling $18.5
million. The 10b5-1 plan expired on March 2, 2023. Our tangible
book value per share at March 31, 2023 was $8.64.
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 |
|
March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
|
|
|
|
|
|
|
Tier 1
leverage capital ratio |
|
4.0% |
|
9.7% |
9.5% |
8.7% |
Common
equity Tier 1 capital ratio |
|
7.0% |
|
13.8% |
13.6% |
13.6% |
Tier 1
risk-based capital ratio |
|
8.5% |
|
13.8% |
13.6% |
13.6% |
Total
risk-based capital ratio |
|
10.5% |
|
14.6% |
14.4% |
14.4% |
|
|
|
|
|
|
|
Tangible
common equity ratio |
|
|
|
7.8% |
7.4% |
7.7% |
|
|
|
|
|
|
|
CitizensTrustAs of March 31, 2023,
CitizensTrust had approximately $3.38 billion in assets under
management and administration, including $2.25 billion in assets
under management. Revenues were $2.9 million for the first quarter
of 2023, compared to $2.8 million for the same period of 2022.
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 3 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 CallManagement will hold a
conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, April
27, 2023 to discuss the Company’s first quarter 2023 financial
results. The conference call can be accessed live by registering
at:
https://register.vevent.com/register/BI9ddd4df47ee3452fb259d35cbf1a8db7.
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 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, capital and liquidity levels, loan and deposit
growth and retention, 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: 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 level 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 loans and
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 or retain 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; 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,
business operations, and employees, as well as the impact on
general economic and financial market conditions; cybersecurity
threats and the cost of defending against them, including the costs
of compliance with potential legislation to combat 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 2022
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
162,668 |
|
|
$ |
158,236 |
|
|
$ |
171,000 |
|
Interest-earning balances due from Federal Reserve |
|
|
64,866 |
|
|
|
45,225 |
|
|
|
1,482,039 |
|
Total cash and cash equivalents |
|
|
227,534 |
|
|
|
203,461 |
|
|
|
1,653,039 |
|
Interest-earning balances due from depository institutions |
|
|
11,944 |
|
|
|
9,553 |
|
|
|
6,859 |
|
Investment securities available-for-sale |
|
|
3,204,524 |
|
|
|
3,255,211 |
|
|
|
3,647,330 |
|
Investment securities held-to-maturity |
|
|
2,535,979 |
|
|
|
2,554,301 |
|
|
|
2,362,741 |
|
Total investment securities |
|
|
5,740,503 |
|
|
|
5,809,512 |
|
|
|
6,010,071 |
|
Investment in stock of Federal Home Loan Bank (FHLB) |
|
|
38,697 |
|
|
|
27,627 |
|
|
|
18,012 |
|
Loans and lease finance receivables |
|
|
8,942,489 |
|
|
|
9,079,392 |
|
|
|
8,591,684 |
|
Allowance for credit losses |
|
|
(86,540 |
) |
|
|
(85,117 |
) |
|
|
(76,119 |
) |
Net loans and lease finance receivables |
|
|
8,855,949 |
|
|
|
8,994,275 |
|
|
|
8,515,565 |
|
Premises and equipment, net |
|
|
45,310 |
|
|
|
46,698 |
|
|
|
53,435 |
|
Bank owned life insurance (BOLI) |
|
|
256,717 |
|
|
|
255,528 |
|
|
|
259,254 |
|
Intangibles |
|
|
20,023 |
|
|
|
21,742 |
|
|
|
27,310 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
765,822 |
|
Other assets |
|
|
311,542 |
|
|
|
342,322 |
|
|
|
229,770 |
|
Total assets |
|
$ |
16,274,041 |
|
|
$ |
16,476,540 |
|
|
$ |
17,539,137 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,844,329 |
|
|
$ |
8,164,364 |
|
|
$ |
9,107,304 |
|
Investment checking |
|
|
668,947 |
|
|
|
723,870 |
|
|
|
714,567 |
|
Savings and money market |
|
|
3,474,651 |
|
|
|
3,653,385 |
|
|
|
4,289,550 |
|
Time deposits |
|
|
283,943 |
|
|
|
294,626 |
|
|
|
376,357 |
|
Total deposits |
|
|
12,271,870 |
|
|
|
12,836,245 |
|
|
|
14,487,778 |
|
Customer repurchase agreements |
|
|
490,235 |
|
|
|
565,431 |
|
|
|
598,909 |
|
Other borrowings |
|
|
1,405,000 |
|
|
|
995,000 |
|
|
|
- |
|
Payable for securities purchased |
|
|
- |
|
|
|
- |
|
|
|
257,979 |
|
Other liabilities |
|
|
117,167 |
|
|
|
131,347 |
|
|
|
119,428 |
|
Total liabilities |
|
|
14,284,272 |
|
|
|
14,528,023 |
|
|
|
15,464,094 |
|
Stockholders' Equity |
|
|
|
|
|
|
Stockholders' equity |
|
|
2,315,896 |
|
|
|
2,303,313 |
|
|
|
2,221,305 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(326,127 |
) |
|
|
(354,796 |
) |
|
|
(146,262 |
) |
Total stockholders' equity |
|
|
1,989,769 |
|
|
|
1,948,517 |
|
|
|
2,075,043 |
|
Total liabilities and stockholders' equity |
|
$ |
16,274,041 |
|
|
$ |
16,476,540 |
|
|
$ |
17,539,137 |
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
175,129 |
|
|
$ |
180,661 |
|
|
$ |
187,061 |
|
Interest-earning balances due from Federal Reserve |
|
|
36,950 |
|
|
|
125,350 |
|
|
|
1,653,349 |
|
Total cash and cash equivalents |
|
|
212,079 |
|
|
|
306,011 |
|
|
|
1,840,410 |
|
Interest-earning balances due from depository institutions |
|
|
10,984 |
|
|
|
8,581 |
|
|
|
13,124 |
|
Investment securities available-for-sale |
|
|
3,216,143 |
|
|
|
3,273,149 |
|
|
|
3,546,957 |
|
Investment securities held-to-maturity |
|
|
2,546,585 |
|
|
|
2,569,134 |
|
|
|
2,229,483 |
|
Total investment securities |
|
|
5,762,728 |
|
|
|
5,842,283 |
|
|
|
5,776,440 |
|
Investment in stock of FHLB |
|
|
28,868 |
|
|
|
18,291 |
|
|
|
18,933 |
|
Loans and lease finance receivables |
|
|
8,963,323 |
|
|
|
8,868,673 |
|
|
|
8,500,436 |
|
Allowance for credit losses |
|
|
(85,151 |
) |
|
|
(82,612 |
) |
|
|
(73,082 |
) |
Net loans and lease finance receivables |
|
|
8,878,172 |
|
|
|
8,786,061 |
|
|
|
8,427,354 |
|
Premises and equipment, net |
|
|
46,258 |
|
|
|
47,327 |
|
|
|
54,015 |
|
Bank owned life insurance (BOLI) |
|
|
256,137 |
|
|
|
256,216 |
|
|
|
259,799 |
|
Intangibles |
|
|
20,983 |
|
|
|
22,610 |
|
|
|
28,190 |
|
Goodwill |
|
|
765,822 |
|
|
|
765,822 |
|
|
|
759,014 |
|
Other assets |
|
|
331,105 |
|
|
|
341,958 |
|
|
|
206,671 |
|
Total assets |
|
$ |
16,313,136 |
|
|
$ |
16,395,160 |
|
|
$ |
17,383,950 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
8,092,704 |
|
|
$ |
8,702,899 |
|
|
$ |
8,720,728 |
|
Interest-bearing |
|
|
4,621,247 |
|
|
|
4,985,591 |
|
|
|
5,464,552 |
|
Total deposits |
|
|
12,713,951 |
|
|
|
13,688,490 |
|
|
|
14,185,280 |
|
Customer repurchase agreements |
|
|
550,754 |
|
|
|
518,996 |
|
|
|
679,931 |
|
Other borrowings |
|
|
971,701 |
|
|
|
161,197 |
|
|
|
51 |
|
Payable for securities purchased |
|
|
79 |
|
|
|
6,022 |
|
|
|
165,665 |
|
Other liabilities |
|
|
98,407 |
|
|
|
101,472 |
|
|
|
109,688 |
|
Total liabilities |
|
|
14,334,892 |
|
|
|
14,476,177 |
|
|
|
15,140,615 |
|
Stockholders' Equity |
|
|
|
|
|
|
Stockholders' equity |
|
|
2,332,625 |
|
|
|
2,301,770 |
|
|
|
2,248,871 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
|
(354,381 |
) |
|
|
(382,787 |
) |
|
|
(5,536 |
) |
Total stockholders' equity |
|
|
1,978,244 |
|
|
|
1,918,983 |
|
|
|
2,243,335 |
|
Total liabilities and stockholders' equity |
|
$ |
16,313,136 |
|
|
$ |
16,395,160 |
|
|
$ |
17,383,950 |
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Interest income: |
|
|
|
|
|
|
Loans and leases, including fees |
|
$ |
108,394 |
|
$ |
106,884 |
|
$ |
89,461 |
Investment securities: |
|
|
|
|
|
|
Investment securities available-for-sale |
|
|
19,596 |
|
|
20,091 |
|
|
12,832 |
Investment securities held-to-maturity |
|
|
13,956 |
|
|
13,837 |
|
|
10,663 |
Total investment income |
|
|
33,552 |
|
|
33,928 |
|
|
23,495 |
Dividends from FHLB stock |
|
|
349 |
|
|
305 |
|
|
371 |
Interest-earning deposits with other institutions |
|
|
491 |
|
|
1,001 |
|
|
773 |
Total interest income |
|
|
142,786 |
|
|
142,118 |
|
|
114,100 |
Interest expense: |
|
|
|
|
|
|
Deposits |
|
|
5,365 |
|
|
2,774 |
|
|
1,127 |
Borrowings and junior subordinated debentures |
|
|
11,693 |
|
|
1,949 |
|
|
133 |
Total interest expense |
|
|
17,058 |
|
|
4,723 |
|
|
1,260 |
Net interest income before provision for credit losses |
|
|
125,728 |
|
|
137,395 |
|
|
112,840 |
Provision for credit losses |
|
|
1,500 |
|
|
2,500 |
|
|
2,500 |
Net interest income after provision for credit
losses |
|
|
124,228 |
|
|
134,895 |
|
|
110,340 |
Noninterest income: |
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
5,344 |
|
|
5,757 |
|
|
5,059 |
Trust and investment services |
|
|
2,914 |
|
|
2,867 |
|
|
2,822 |
Other |
|
|
4,944 |
|
|
3,841 |
|
|
3,383 |
Total noninterest income |
|
|
13,202 |
|
|
12,465 |
|
|
11,264 |
Noninterest expense: |
|
|
|
|
|
|
Salaries and employee benefits |
|
|
35,247 |
|
|
34,154 |
|
|
32,656 |
Occupancy and equipment |
|
|
5,450 |
|
|
5,820 |
|
|
5,571 |
Professional services |
|
|
1,696 |
|
|
2,574 |
|
|
2,045 |
Computer software expense |
|
|
3,408 |
|
|
3,362 |
|
|
3,795 |
Marketing and promotion |
|
|
1,715 |
|
|
1,712 |
|
|
1,458 |
Amortization of intangible assets |
|
|
1,720 |
|
|
1,724 |
|
|
1,998 |
Provision for unfunded loan commitments |
|
|
500 |
|
|
- |
|
|
- |
Acquisition related expenses |
|
|
- |
|
|
- |
|
|
5,638 |
Other |
|
|
5,145 |
|
|
5,073 |
|
|
5,077 |
Total noninterest expense |
|
|
54,881 |
|
|
54,419 |
|
|
58,238 |
Earnings before income taxes |
|
|
82,549 |
|
|
92,941 |
|
|
63,366 |
Income taxes |
|
|
23,279 |
|
|
26,773 |
|
|
17,806 |
Net earnings |
|
$ |
59,270 |
|
$ |
66,168 |
|
$ |
45,560 |
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.31 |
Diluted earnings per common share |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.31 |
Cash dividends declared per common share |
|
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.18 |
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Interest income - tax equivalent (TE) |
|
$ |
143,332 |
|
|
$ |
142,646 |
|
|
$ |
114,463 |
|
Interest expense |
|
|
17,058 |
|
|
|
4,723 |
|
|
|
1,260 |
|
Net interest income - (TE) |
|
$ |
126,274 |
|
|
$ |
137,923 |
|
|
$ |
113,203 |
|
|
|
|
|
|
|
|
Return on average assets, annualized |
|
|
1.47 |
% |
|
|
1.60 |
% |
|
|
1.06 |
% |
Return on average equity, annualized |
|
|
12.15 |
% |
|
|
13.68 |
% |
|
|
8.24 |
% |
Efficiency ratio [1] |
|
|
39.50 |
% |
|
|
36.31 |
% |
|
|
46.93 |
% |
Noninterest expense to average assets, annualized |
|
|
1.36 |
% |
|
|
1.32 |
% |
|
|
1.36 |
% |
Yield on average loans |
|
|
4.90 |
% |
|
|
4.78 |
% |
|
|
4.27 |
% |
Yield on average earning assets (TE) |
|
|
3.91 |
% |
|
|
3.82 |
% |
|
|
2.93 |
% |
Cost of deposits |
|
|
0.17 |
% |
|
|
0.08 |
% |
|
|
0.03 |
% |
Cost of deposits and customer repurchase agreements |
|
|
0.17 |
% |
|
|
0.08 |
% |
|
|
0.03 |
% |
Cost of funds |
|
|
0.49 |
% |
|
|
0.13 |
% |
|
|
0.03 |
% |
Net interest margin (TE) |
|
|
3.45 |
% |
|
|
3.69 |
% |
|
|
2.90 |
% |
[1] Noninterest expense divided by net interest income before
provision for credit losses plus noninterest income. |
|
|
|
|
|
|
|
Tangible Common Equity Ratio (TCE) [2] |
|
|
|
|
|
|
CVB Financial Corp. Consolidated |
|
|
7.77 |
% |
|
|
7.40 |
% |
|
|
7.66 |
% |
Citizens Business Bank |
|
|
7.69 |
% |
|
|
7.29 |
% |
|
|
7.42 |
% |
[2] (Capital - [GW+Intangibles])/(Total Assets -
[GW+Intangibles]) |
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
Basic |
|
|
138,592,371 |
|
|
|
138,890,705 |
|
|
|
144,725,296 |
|
Diluted |
|
|
138,953,172 |
|
|
|
139,438,103 |
|
|
|
145,018,517 |
|
Dividends declared |
|
$ |
28,007 |
|
|
$ |
27,995 |
|
|
$ |
25,467 |
|
Dividend payout ratio [3] |
|
|
47.25 |
% |
|
|
42.31 |
% |
|
|
55.90 |
% |
[3] Dividends declared on common stock divided by net
earnings. |
|
|
|
|
|
|
|
Number of shares outstanding - (end of period) |
|
|
139,302,451 |
|
|
|
139,818,703 |
|
|
|
141,626,059 |
|
Book value per share |
|
$ |
14.28 |
|
|
$ |
13.94 |
|
|
$ |
14.65 |
|
Tangible book value per share |
|
$ |
8.64 |
|
|
$ |
8.30 |
|
|
$ |
9.05 |
|
|
|
|
|
|
|
|
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Nonperforming assets: |
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
13,265 |
|
Total nonperforming assets |
|
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
13,265 |
|
Modified loans/performing troubled debt restructured loans (TDR)
[4] |
|
$ |
5,836 |
|
|
$ |
7,817 |
|
|
$ |
5,259 |
|
|
|
|
|
|
|
|
[4] Effective January 1, 2023, performing and nonperforming TDRs
are reflected as Loan Modifications to borrowers experiencing
financial difficulty. |
|
|
|
|
|
|
|
Percentage of nonperforming assets to total loans outstanding and
OREO |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.15 |
% |
Percentage of nonperforming assets to total assets |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.08 |
% |
Allowance for credit losses to nonperforming assets |
|
|
1401.46 |
% |
|
|
1726.51 |
% |
|
|
573.83 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
Allowance for credit losses: |
|
|
|
|
|
|
Beginning balance |
|
$ |
85,117 |
|
|
$ |
82,601 |
|
|
$ |
65,019 |
|
Suncrest FV PCD loans |
|
|
- |
|
|
|
- |
|
|
|
8,605 |
|
Total charge-offs |
|
|
(110 |
) |
|
|
(127 |
) |
|
|
(16 |
) |
Total recoveries on loans previously charged-off |
|
|
33 |
|
|
|
143 |
|
|
|
11 |
|
Net recoveries (charge-offs) |
|
|
(77 |
) |
|
|
16 |
|
|
|
(5 |
) |
Provision for (recapture of) credit losses |
|
|
1,500 |
|
|
|
2,500 |
|
|
|
2,500 |
|
Allowance for credit losses at end of period |
|
$ |
86,540 |
|
|
$ |
85,117 |
|
|
$ |
76,119 |
|
|
|
|
|
|
|
|
Net recoveries (charge-offs) to average loans |
|
|
-0.001 |
% |
|
|
0.000 |
% |
|
|
-0.000 |
% |
CVB FINANCIAL CORP. AND SUBSIDIARIES |
|
SELECTED FINANCIAL HIGHLIGHTS |
|
(Unaudited) |
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
AllowanceFor CreditLosses |
|
Allowance as a %of Total Loans byRespective Loan
Type |
|
AllowanceFor CreditLosses |
|
Allowance as a %of Total Loans byRespective Loan
Type |
|
AllowanceFor CreditLosses |
|
Allowance as a %of Total Loans byRespective Loan
Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
67.1 |
|
|
0.97 |
% |
|
|
$ |
64.8 |
|
|
0.94 |
% |
|
|
$ |
57.8 |
|
|
0.90 |
% |
|
|
Construction |
|
|
1.7 |
|
|
1.99 |
% |
|
|
|
1.7 |
|
|
1.93 |
% |
|
|
|
1.0 |
|
|
1.30 |
% |
|
|
SBA |
|
|
2.7 |
|
|
0.96 |
% |
|
|
|
2.8 |
|
|
0.97 |
% |
|
|
|
2.8 |
|
|
0.90 |
% |
|
|
Commercial and industrial |
|
|
8.9 |
|
|
1.00 |
% |
|
|
|
10.2 |
|
|
1.08 |
% |
|
|
|
6.8 |
|
|
0.70 |
% |
|
|
Dairy & livestock and agribusiness |
|
|
4.8 |
|
|
1.55 |
% |
|
|
|
4.4 |
|
|
1.01 |
% |
|
|
|
6.7 |
|
|
2.30 |
% |
|
|
Municipal lease finance receivables |
|
|
0.3 |
|
|
0.36 |
% |
|
|
|
0.3 |
|
|
0.36 |
% |
|
|
|
0.2 |
|
|
0.20 |
% |
|
|
SFR mortgage |
|
|
0.4 |
|
|
0.16 |
% |
|
|
|
0.4 |
|
|
0.14 |
% |
|
|
|
0.2 |
|
|
0.10 |
% |
|
|
Consumer and other loans |
|
|
0.6 |
|
|
0.84 |
% |
|
|
|
0.5 |
|
|
0.69 |
% |
|
|
|
0.6 |
|
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
86.5 |
|
|
0.97 |
% |
|
|
$ |
85.1 |
|
|
0.94 |
% |
|
|
$ |
76.1 |
|
|
0.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Common Stock Price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Quarter End |
|
High |
|
Low |
|
High |
|
Low |
|
High |
|
Low |
March 31, |
|
$ |
25.98 |
|
$ |
16.34 |
|
|
$ |
24.37 |
|
|
$ |
21.36 |
|
|
$ |
25.00 |
|
|
$ |
19.15 |
|
June 30, |
|
$ |
- |
|
$ |
- |
|
|
$ |
25.59 |
|
|
$ |
22.37 |
|
|
$ |
22.98 |
|
|
$ |
20.50 |
|
September 30, |
|
$ |
- |
|
$ |
- |
|
|
$ |
28.14 |
|
|
$ |
22.63 |
|
|
$ |
20.86 |
|
|
$ |
18.72 |
|
December 31, |
|
$ |
- |
|
$ |
- |
|
|
$ |
29.25 |
|
|
$ |
25.26 |
|
|
$ |
21.85 |
|
|
$ |
19.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
|
|
|
$ |
108,394 |
|
|
$ |
106,884 |
|
|
$ |
100,077 |
|
|
$ |
92,770 |
|
|
$ |
89,461 |
|
Investment securities and other |
|
|
|
|
34,392 |
|
|
|
35,234 |
|
|
|
35,111 |
|
|
|
30,492 |
|
|
|
24,639 |
|
Total interest income |
|
|
|
|
142,786 |
|
|
|
142,118 |
|
|
|
135,188 |
|
|
|
123,262 |
|
|
|
114,100 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
5,365 |
|
|
|
2,774 |
|
|
|
1,728 |
|
|
|
1,201 |
|
|
|
1,127 |
|
Other borrowings |
|
|
|
|
11,693 |
|
|
|
1,949 |
|
|
|
122 |
|
|
|
121 |
|
|
|
133 |
|
Total interest expense |
|
|
|
|
17,058 |
|
|
|
4,723 |
|
|
|
1,850 |
|
|
|
1,322 |
|
|
|
1,260 |
|
Net interest income before provision for |
|
|
|
|
|
|
|
|
|
|
credit losses |
|
|
|
|
125,728 |
|
|
|
137,395 |
|
|
|
133,338 |
|
|
|
121,940 |
|
|
|
112,840 |
|
Provision for credit losses |
|
|
|
|
1,500 |
|
|
|
2,500 |
|
|
|
2,000 |
|
|
|
3,600 |
|
|
|
2,500 |
|
Net interest income after provision for |
|
|
|
|
|
|
|
|
|
|
credit losses |
|
|
|
|
124,228 |
|
|
|
134,895 |
|
|
|
131,338 |
|
|
|
118,340 |
|
|
|
110,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
13,202 |
|
|
|
12,465 |
|
|
|
11,590 |
|
|
|
14,670 |
|
|
|
11,264 |
|
Noninterest expense |
|
|
|
|
54,881 |
|
|
|
54,419 |
|
|
|
53,027 |
|
|
|
50,871 |
|
|
|
58,238 |
|
Earnings before income taxes |
|
|
|
|
82,549 |
|
|
|
92,941 |
|
|
|
89,901 |
|
|
|
82,139 |
|
|
|
63,366 |
|
Income taxes |
|
|
|
|
23,279 |
|
|
|
26,773 |
|
|
|
25,262 |
|
|
|
23,081 |
|
|
|
17,806 |
|
Net earnings |
|
|
|
$ |
59,270 |
|
|
$ |
66,168 |
|
|
$ |
64,639 |
|
|
$ |
59,058 |
|
|
$ |
45,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
|
28.20 |
% |
|
|
28.81 |
% |
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
28.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.31 |
|
Diluted earnings per common share |
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared |
|
|
|
$ |
28,007 |
|
|
$ |
27,995 |
|
|
$ |
27,965 |
|
|
$ |
26,719 |
|
|
$ |
25,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio by Type |
|
|
March 31, |
|
December 31, |
|
September 30, |
June 30, |
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
6,950,302 |
|
|
$ |
6,884,948 |
|
|
$ |
6,685,245 |
|
|
$ |
6,643,628 |
|
|
$ |
6,470,841 |
|
Construction |
|
|
83,992 |
|
|
|
88,271 |
|
|
|
76,495 |
|
|
|
60,584 |
|
|
|
73,478 |
|
SBA |
|
|
283,464 |
|
|
|
290,908 |
|
|
|
296,664 |
|
|
|
297,109 |
|
|
|
311,238 |
|
SBA - PPP |
|
|
5,824 |
|
|
|
9,087 |
|
|
|
17,348 |
|
|
|
66,955 |
|
|
|
121,189 |
|
Commercial and industrial |
|
|
898,167 |
|
|
|
948,683 |
|
|
|
952,231 |
|
|
|
941,595 |
|
|
|
924,780 |
|
Dairy & livestock and agribusiness |
|
|
307,820 |
|
|
|
433,564 |
|
|
|
323,105 |
|
|
|
273,594 |
|
|
|
292,784 |
|
Municipal lease finance receivables |
|
|
79,552 |
|
|
|
81,126 |
|
|
|
76,656 |
|
|
|
64,437 |
|
|
|
65,543 |
|
SFR mortgage |
|
|
262,324 |
|
|
|
266,024 |
|
|
|
263,646 |
|
|
|
260,218 |
|
|
|
255,136 |
|
Consumer and other loans |
|
|
71,044 |
|
|
|
76,781 |
|
|
|
82,746 |
|
|
|
84,109 |
|
|
|
76,695 |
|
Gross loans, net of deferred loan fees and discounts |
|
|
8,942,489 |
|
|
|
9,079,392 |
|
|
|
8,774,136 |
|
|
|
8,692,229 |
|
|
|
8,591,684 |
|
Allowance for credit losses |
|
|
(86,540 |
) |
|
|
(85,117 |
) |
|
|
(82,601 |
) |
|
|
(80,222 |
) |
|
|
(76,119 |
) |
Net loans |
|
$ |
8,855,949 |
|
|
$ |
8,994,275 |
|
|
$ |
8,691,535 |
|
|
$ |
8,612,007 |
|
|
$ |
8,515,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Composition by Type and Customer Repurchase
Agreements |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
June 30, |
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
7,844,329 |
|
|
$ |
8,164,364 |
|
|
$ |
8,764,556 |
|
|
$ |
8,881,223 |
|
|
$ |
9,107,304 |
|
Investment checking |
|
|
668,947 |
|
|
|
723,870 |
|
|
|
751,618 |
|
|
|
695,054 |
|
|
|
714,567 |
|
Savings and money market |
|
|
3,474,651 |
|
|
|
3,653,385 |
|
|
|
3,991,531 |
|
|
|
4,145,634 |
|
|
|
4,289,550 |
|
Time deposits |
|
|
283,943 |
|
|
|
294,626 |
|
|
|
364,694 |
|
|
|
350,308 |
|
|
|
376,357 |
|
Total deposits |
|
|
12,271,870 |
|
|
|
12,836,245 |
|
|
|
13,872,399 |
|
|
|
14,072,219 |
|
|
|
14,487,778 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
|
490,235 |
|
|
|
565,431 |
|
|
|
467,844 |
|
|
|
502,829 |
|
|
|
598,909 |
|
Total deposits and customer repurchase agreements |
|
$ |
12,762,105 |
|
|
$ |
13,401,676 |
|
|
$ |
14,340,243 |
|
|
$ |
14,575,048 |
|
|
$ |
15,086,687 |
|
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
SELECTED FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets and Delinquency Trends |
|
|
March 31, |
|
December 31, |
|
September 30, |
June 30, |
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
2,634 |
|
|
$ |
2,657 |
|
|
$ |
6,705 |
|
|
$ |
6,843 |
|
|
$ |
7,055 |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
702 |
|
|
|
443 |
|
|
|
1,065 |
|
|
|
1,075 |
|
|
|
1,575 |
|
SBA - PPP |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
Commercial and industrial |
|
|
2,049 |
|
|
|
1,320 |
|
|
|
1,308 |
|
|
|
1,655 |
|
|
|
1,771 |
|
Dairy & livestock and agribusiness |
|
|
406 |
|
|
|
477 |
|
|
|
1,007 |
|
|
|
3,354 |
|
|
|
2,655 |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
167 |
|
Consumer and other loans |
|
|
384 |
|
|
|
33 |
|
|
|
32 |
|
|
|
37 |
|
|
|
40 |
|
Total |
|
$ |
6,175 |
|
|
$ |
4,930 |
|
|
$ |
10,117 |
|
|
$ |
12,964 |
|
|
$ |
13,265 |
|
% of Total loans |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
Past due 30-89 days: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
425 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
565 |
|
Construction |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SBA |
|
|
575 |
|
|
|
556 |
|
|
|
- |
|
|
|
- |
|
|
|
549 |
|
Commercial and industrial |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
Dairy & livestock and agribusiness |
|
|
183 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,099 |
|
SFR mortgage |
|
|
- |
|
|
|
388 |
|
|
|
- |
|
|
|
- |
|
|
|
403 |
|
Consumer and other loans |
|
|
- |
|
|
|
175 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
1,183 |
|
|
$ |
1,119 |
|
|
$ |
- |
|
|
$ |
559 |
|
|
$ |
2,622 |
|
% of Total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
OREO: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
SBA |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
SFR mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Total nonperforming, past due, and OREO |
|
$ |
7,358 |
|
|
$ |
6,049 |
|
|
$ |
10,117 |
|
|
$ |
13,523 |
|
|
$ |
15,887 |
|
% of Total loans |
|
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.12 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
CVB FINANCIAL CORP. AND SUBSIDIARIES |
|
SELECTED FINANCIAL HIGHLIGHTS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVB Financial Corp. Consolidated |
|
Capital Ratios |
|
Minimum Required PlusCapital Conservation
Buffer |
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
4.0% |
|
9.7% |
|
9.5% |
|
8.7% |
|
Common equity Tier 1 capital ratio |
|
7.0% |
|
13.8% |
|
13.6% |
|
13.6% |
|
Tier 1 risk-based capital ratio |
|
8.5% |
|
13.8% |
|
13.6% |
|
13.6% |
|
Total risk-based capital ratio |
|
10.5% |
|
14.6% |
|
14.4% |
|
14.4% |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio |
|
|
|
7.8% |
|
7.4% |
|
7.7% |
|
|
|
|
|
|
|
|
|
|
|
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 March 31, 2023,
December 31, 2022 and March 31, 2022. |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,2023 |
|
December 31,2022 |
|
March 31,2022 |
|
|
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
$ |
1,989,769 |
|
|
$ |
1,948,517 |
|
|
$ |
2,075,043 |
|
|
|
Less: Goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
Less: Intangible assets |
|
|
(20,023 |
) |
|
|
(21,742 |
) |
|
|
(27,310 |
) |
|
|
Tangible book value |
|
$ |
1,203,924 |
|
|
$ |
1,160,953 |
|
|
$ |
1,281,911 |
|
|
|
Common shares issued and outstanding |
|
|
139,302,451 |
|
|
|
139,818,703 |
|
|
|
141,626,059 |
|
|
|
Tangible book value per share |
|
$ |
8.64 |
|
|
$ |
8.30 |
|
|
$ |
9.05 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
March 31, |
|
December 31, |
March 31, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
59,270 |
|
|
$ |
66,168 |
|
|
$ |
45,560 |
|
|
|
Add: Amortization of intangible assets |
|
|
1,720 |
|
|
|
1,724 |
|
|
|
1,998 |
|
|
|
Less: Tax effect of amortization of intangible assets [1] |
|
|
(508 |
) |
|
|
(510 |
) |
|
|
(591 |
) |
|
|
Tangible net income |
|
$ |
60,482 |
|
|
$ |
67,382 |
|
|
$ |
46,967 |
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
|
$ |
1,978,244 |
|
|
$ |
1,918,983 |
|
|
$ |
2,243,335 |
|
|
|
Less: Average goodwill |
|
|
(765,822 |
) |
|
|
(765,822 |
) |
|
|
(759,014 |
) |
|
|
Less: Average intangible assets |
|
|
(20,983 |
) |
|
|
(22,610 |
) |
|
|
(28,190 |
) |
|
|
Average tangible common equity |
|
$ |
1,191,439 |
|
|
$ |
1,130,551 |
|
|
$ |
1,456,131 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity, annualized |
|
|
12.15 |
% |
|
|
13.68 |
% |
|
|
8.24 |
% |
|
|
Return on average tangible common equity, annualized |
|
|
20.59 |
% |
|
|
23.65 |
% |
|
|
13.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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