CVB Financial Corp. Reports Earnings for the First Quarter 2024
- First quarter 2024 net earnings stood at $48.6 million, with diluted earnings per share of $0.35.
- Annualized return on average assets (ROAA) was 1.21%, return on average equity (ROAE) was 9.31%, and return on average tangible common equity (ROATCE) was 15.13%.
- Net interest margin was 3.10%, with a decrease compared to the previous quarter.
- Total assets increased to $16.47 billion, while loans decreased slightly to $8.77 billion.
- Noninterest income was $14.1 million, and noninterest expense was $59.8 million for the first quarter of 2024.
- Asset quality metrics showed a decrease in nonperforming loans and an increase in classified loans.
- Deposits and customer repurchase agreements increased, while borrowings included one-year advances from the Federal Reserve.
- Total equity was $2.09 billion, with a tangible book value per share of $9.36.
- CitizensTrust had $4.3 billion in assets under management and administration, with revenues of $3.2 million for the first quarter of 2024.
- Net interest margin declined by 16 basis points, with a 10.55% decrease in net interest income compared to the first quarter of 2023.
- Total loans decreased by $134.2 million, or 1.51%, from the previous quarter.
- Noninterest income decreased from the previous quarter and year, with specific declines in BOLI and CRA investment related income.
- Noninterest expense decreased quarter-over-quarter, primarily due to lower marketing and promotion expense, but increased year-over-year.
- The efficiency ratio increased to 47.22% for the first quarter of 2024.
- There was a modest increase in projected loss rates driven by economic forecast changes.
- Nonperforming assets increased quarter-over-quarter, with an increase in classified loans.
- The company recorded no stock repurchases during the first quarter of 2024.
First Quarter 2024
- Net Earnings of
$48.6 million , or$0.35 per share - Return on Average Assets of
1.21% - Return on Average Tangible Common Equity of
15.13% - Net Interest Margin of
3.10%
ONTARIO, CA, April 24, 2024 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended March 31, 2024.
CVB Financial Corp. reported net income of
David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank continues to perform consistently in a challenging operating environment. Our solid financial performance is highlighted by our 188 consecutive quarters of profitability and 138 consecutive quarters of paying cash dividends. We remain focused on our mission of banking the best small to medium sized businesses and their owners, through all economic cycles. I would like to thank our customers and associates for their commitment and loyalty.”
Highlights for the First Quarter of 2024
- Pretax Pre-Provision income was
$66.8 million , down$5.8 million or8% , from the prior quarter - Net interest margin of
3.10% , declined by 16 basis points compared to the fourth quarter of 2023 - Cost of funds increased from
1.09% in the fourth quarter of 2023 to1.31% in the first quarter of 2024 - Total deposits increased by
$461 million compared to prior quarter end, including$300 million in new brokered deposits at March 31, 2024 - Noninterest-bearing deposits were
59.8% of total deposits at March 31, 2024 or61.7% on average for the first quarter of 2024 - Loans at March 31, 2024 decreased by
$134 million or1.5% from the end of 2023 - Allowance for credit loss declined by
$4 million , due to$4 million of net charge-offs in the first quarter of 2024, as related reserves were previously established in 2023 - TCE Ratio =
8.3% as of March 31, 2024 vs.8.5% at December 31, 2023 - CET1 =
14.9% as of March 31, 2024 vs.14.6% at December 31, 2023
INCOME STATEMENT HIGHLIGHTS
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Net interest income | $ | 112,461 | $ | 119,356 | $ | 125,728 | |||||
| Recapure of (provision for) credit losses | - | 2,000 | (1,500 | ) | |||||||
| Noninterest income | 14,113 | 19,163 | 13,202 | ||||||||
| Noninterest expense | (59,771 | ) | (65,930 | ) | (54,881 | ) | |||||
| Income taxes | (18,204 | ) | (26,081 | ) | (23,279 | ) | |||||
| Net earnings | $ | 48,599 | $ | 48,508 | $ | 59,270 | |||||
| Earnings per common share: | |||||||||||
| Basic | $ | 0.35 | $ | 0.35 | $ | 0.42 | |||||
| Diluted | $ | 0.35 | $ | 0.35 | $ | 0.42 | |||||
| NIM | 3.10 | % | 3.26 | % | 3.45 | % | |||||
| ROAA | 1.21 | % | 1.19 | % | 1.47 | % | |||||
| ROAE | 9.31 | % | 9.65 | % | 12.15 | % | |||||
| ROATCE | 15.13 | % | 16.21 | % | 20.59 | % | |||||
| Efficiency ratio | 47.22 | % | 47.60 | % | 39.50 | % | |||||
Net Interest Income
Net interest income was
Net Interest Margin
Our tax equivalent net interest margin was
Earning Assets and Deposits
On average, earning assets were relatively flat compared to the fourth quarter of 2023 and declined by
| Three Months Ended | |||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Yield on average investment securities (TE) | |||||||||||||||
| Yield on average loans | |||||||||||||||
| Yield on average earning assets (TE) | |||||||||||||||
| Cost of deposits | |||||||||||||||
| Cost of funds | |||||||||||||||
| Net interest margin (TE) | |||||||||||||||
| Average Earning Asset Mix | Avg | % of Total | Avg | % of Total | Avg | % of Total | |||||||||
| Total investment securities | $ | 5,357,708 | $ | 5,328,208 | $ | 5,762,728 | |||||||||
| Interest-earning deposits with other institutions | 444,101 | 443,773 | 47,934 | ||||||||||||
| Loans | 8,824,579 | 8,856,654 | 8,963,323 | ||||||||||||
| Total interest-earning assets | 14,644,400 | 14,646,647 | 14,802,853 | ||||||||||||
Provision for Credit Losses
There was no provision for credit losses in the first quarter of 2024, compared to a
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense for the first quarter of 2024 was
The
Income Taxes
Our effective tax rate for the quarter ended March 31, 2024 was
BALANCE SHEET HIGHLIGHTS
Assets
The Company reported total assets of
Total assets at March 31, 2024 increased by
Investment Securities and BOLI
Total investment securities were
At March 31, 2024, investment securities held-to-maturity (“HTM”) totaled
At March 31, 2024, investment securities available-for-sale (“AFS”) totaled
Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled
Our combined AFS and HTM municipal securities totaled
At March 31, 2024, the Company had
Loans
Total loans and leases, at amortized cost, of
Total loans and leases, at amortized cost, decreased by
Asset Quality
During the first quarter of 2024, we experienced credit charge-offs of
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 plus OREO, are highlighted below.
| Nonperforming Assets and Delinquency Trends | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| Nonperforming loans | (Dollars in thousands) | ||||||||||
| Commercial real estate | $ | 10,661 | $ | 15,440 | $ | 2,634 | |||||
| SBA | 54 | 969 | 702 | ||||||||
| Commercial and industrial | 2,727 | 4,509 | 2,049 | ||||||||
| Dairy & livestock and agribusiness | 60 | 60 | 406 | ||||||||
| SFR mortgage | 308 | 324 | 384 | ||||||||
| Consumer and other loans | - | - | - | ||||||||
| Total | $ | 13,810 | $ | 21,302 | $ | 6,175 | |||||
| % of Total loans | 0.16 | % | 0.24 | % | 0.07 | % | |||||
| OREO | |||||||||||
| Commercial real estate | $ | - | $ | - | $ | - | |||||
| Commercial and industrial | 647 | - | - | ||||||||
| SFR mortgage | - | - | - | ||||||||
| Total | $ | 647 | $ | - | $ | - | |||||
| Total nonperforming assets | $ | 14,457 | $ | 21,302 | $ | 6,175 | |||||
| % of Nonperforming assets to total assets | 0.09 | % | 0.13 | % | 0.04 | % | |||||
| Past due 30-89 days (accruing) | |||||||||||
| Commercial real estate | $ | 19,781 | $ | 300 | $ | 425 | |||||
| SBA | 408 | 108 | 575 | ||||||||
| Commercial and industrial | 6 | 12 | - | ||||||||
| Dairy & livestock and agribusiness | - | - | 183 | ||||||||
| SFR mortgage | - | 201 | - | ||||||||
| Consumer and other loans | - | 18 | - | ||||||||
| Total | $ | 20,195 | $ | 639 | $ | 1,183 | |||||
| % of Total loans | 0.23 | % | 0.01 | % | 0.01 | % | |||||
| Classified Loans | $ | 103,080 | $ | 102,197 | $ | 66,977 | |||||
The
Deposits & Customer Repurchase Agreements
Deposits of
Noninterest-bearing deposits were
March 31, 2023.
Borrowings
As of March 31, 2024, total borrowings consisted of approximately
Capital
The Company’s total equity was
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, 2024 | December 31, 2023 | March 31, 2023 | ||||
| Tier 1 leverage capital ratio | ||||||||
| Common equity Tier 1 capital ratio | ||||||||
| Tier 1 risk-based capital ratio | ||||||||
| Total risk-based capital ratio | ||||||||
| Tangible common equity ratio | ||||||||
CitizensTrust
As of March 31, 2024 CitizensTrust had approximately
Corporate Overview
CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with approximately
Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.
Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, April 25, 2024 to discuss the Company’s first quarter 2024 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BI52b6835d64f141e7be89d719f276a3f4
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, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, 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 and key personnel into our operations; the timely development of competitive 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 banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; 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; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer 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 or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment 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, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state in employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; 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 2023 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 earnings release 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 earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Cash and due from banks | $ | 131,955 | $ | 171,396 | $ | 162,668 | ||||||
| Interest-earning balances due from Federal Reserve | 817,634 | 109,889 | 64,866 | |||||||||
| Total cash and cash equivalents | 949,589 | 281,285 | 227,534 | |||||||||
| Interest-earning balances due from depository institutions | 12,632 | 8,216 | 11,944 | |||||||||
| Investment securities available-for-sale | 2,837,100 | 2,956,125 | 3,204,524 | |||||||||
| Investment securities held-to-maturity | 2,454,586 | 2,464,610 | 2,535,979 | |||||||||
| Total investment securities | 5,291,686 | 5,420,735 | 5,740,503 | |||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 18,012 | 18,012 | 38,697 | |||||||||
| Loans and lease finance receivables | 8,770,713 | 8,904,910 | 8,942,489 | |||||||||
| Allowance for credit losses | (82,817 | ) | (86,842 | ) | (86,540 | ) | ||||||
| Net loans and lease finance receivables | 8,687,896 | 8,818,068 | 8,855,949 | |||||||||
| Premises and equipment, net | 43,448 | 44,709 | 45,310 | |||||||||
| Bank owned life insurance (BOLI) | 310,744 | 308,706 | 256,717 | |||||||||
| Intangibles | 13,853 | 15,291 | 20,023 | |||||||||
| Goodwill | 765,822 | 765,822 | 765,822 | |||||||||
| Other assets | 374,464 | 340,149 | 311,542 | |||||||||
| Total assets | $ | 16,468,146 | $ | 16,020,993 | $ | 16,274,041 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 7,112,789 | $ | 7,206,175 | $ | 7,844,329 | ||||||
| Investment checking | 545,066 | 552,408 | 668,947 | |||||||||
| Savings and money market | 3,561,512 | 3,278,664 | 3,474,651 | |||||||||
| Time deposits | 675,554 | 396,395 | 283,943 | |||||||||
| Total deposits | 11,894,921 | 11,433,642 | 12,271,870 | |||||||||
| Customer repurchase agreements | 275,720 | 271,642 | 490,235 | |||||||||
| Other borrowings | 1,995,000 | 2,070,000 | 1,405,000 | |||||||||
| Other liabilities | 215,680 | 167,737 | 117,167 | |||||||||
| Total liabilities | 14,381,321 | 13,943,021 | 14,284,272 | |||||||||
| Stockholders' Equity | ||||||||||||
| Stockholders' equity | 2,422,110 | 2,401,541 | 2,315,896 | |||||||||
| Accumulated other comprehensive loss, net of tax | (335,285 | ) | (323,569 | ) | (326,127 | ) | ||||||
| Total stockholders' equity | 2,086,825 | 2,077,972 | 1,989,769 | |||||||||
| Total liabilities and stockholders' equity | $ | 16,468,146 | $ | 16,020,993 | $ | 16,274,041 | ||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 162,049 | $ | 155,556 | $ | 175,129 | ||||||
| Interest-earning balances due from Federal Reserve | 433,421 | 437,554 | 36,950 | |||||||||
| Total cash and cash equivalents | 595,470 | 593,110 | 212,079 | |||||||||
| Interest-earning balances due from depository institutions | 10,680 | 6,219 | 10,984 | |||||||||
| Investment securities available-for-sale | 2,900,097 | 2,849,423 | 3,216,143 | |||||||||
| Investment securities held-to-maturity | 2,457,611 | 2,478,785 | 2,546,585 | |||||||||
| Total investment securities | 5,357,708 | 5,328,208 | 5,762,728 | |||||||||
| Investment in stock of FHLB | 18,012 | 18,012 | 28,868 | |||||||||
| Loans and lease finance receivables | 8,824,579 | 8,856,654 | 8,963,323 | |||||||||
| Allowance for credit losses | (85,751 | ) | (88,943 | ) | (85,151 | ) | ||||||
| Net loans and lease finance receivables | 8,738,828 | 8,767,711 | 8,878,172 | |||||||||
| Premises and equipment, net | 44,380 | 44,768 | 46,258 | |||||||||
| Bank owned life insurance (BOLI) | 309,609 | 236,055 | 256,137 | |||||||||
| Intangibles | 14,585 | 15,993 | 20,983 | |||||||||
| Goodwill | 765,822 | 765,822 | 765,822 | |||||||||
| Other assets | 350,319 | 393,227 | 331,105 | |||||||||
| Total assets | $ | 16,205,413 | $ | 16,169,125 | $ | 16,313,136 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 7,182,718 | $ | 7,450,856 | $ | 8,092,704 | ||||||
| Interest-bearing | 4,454,135 | 4,703,144 | 4,621,247 | |||||||||
| Total deposits | 11,636,853 | 12,154,000 | 12,713,951 | |||||||||
| Customer repurchase agreements | 309,272 | 301,330 | 550,754 | |||||||||
| Other borrowings | 1,991,978 | 1,585,272 | 971,701 | |||||||||
| Payable for securities purchased | - | 551 | 79 | |||||||||
| Other liabilities | 168,442 | 133,822 | 98,407 | |||||||||
| Total liabilities | 14,106,545 | 14,174,975 | 14,334,892 | |||||||||
| Stockholders' Equity | ||||||||||||
| Stockholders' equity | 2,432,075 | 2,411,269 | 2,332,625 | |||||||||
| Accumulated other comprehensive loss, net of tax | (333,207 | ) | (417,119 | ) | (354,381 | ) | ||||||
| Total stockholders' equity | 2,098,868 | 1,994,150 | 1,978,244 | |||||||||
| Total liabilities and stockholders' equity | $ | 16,205,413 | $ | 16,169,125 | $ | 16,313,136 | ||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Interest income: | ||||||||||||
| Loans and leases, including fees | $ | 116,349 | $ | 115,721 | $ | 108,394 | ||||||
| Investment securities: | ||||||||||||
| Investment securities available-for-sale | 21,446 | 22,170 | 19,596 | |||||||||
| Investment securities held-to-maturity | 13,402 | 13,478 | 13,956 | |||||||||
| Total investment income | 34,848 | 35,648 | 33,552 | |||||||||
| Dividends from FHLB stock | 419 | 431 | 349 | |||||||||
| Interest-earning deposits with other institutions | 6,073 | 6,278 | 491 | |||||||||
| Total interest income | 157,689 | 158,078 | 142,786 | |||||||||
| Interest expense: | ||||||||||||
| Deposits | 21,366 | 18,888 | 5,365 | |||||||||
| Borrowings and junior subordinated debentures | 23,862 | 19,834 | 11,693 | |||||||||
| Total interest expense | 45,228 | 38,722 | 17,058 | |||||||||
| Net interest income before provision for (recapture of) credit losses | 112,461 | 119,356 | 125,728 | |||||||||
| (Recapture of) provision for credit losses | - | (2,000 | ) | 1,500 | ||||||||
| Net interest income after provision for (recapture of) credit losses | 112,461 | 121,356 | 124,228 | |||||||||
| Noninterest income: | ||||||||||||
| Service charges on deposit accounts | 5,036 | 4,975 | 5,344 | |||||||||
| Trust and investment services | 3,224 | 3,081 | 2,914 | |||||||||
| Other | 5,853 | 11,107 | 4,944 | |||||||||
| Total noninterest income | 14,113 | 19,163 | 13,202 | |||||||||
| Noninterest expense: | ||||||||||||
| Salaries and employee benefits | 36,401 | 35,652 | 35,247 | |||||||||
| Occupancy and equipment | 5,565 | 5,524 | 5,450 | |||||||||
| Professional services | 2,255 | 2,707 | 1,696 | |||||||||
| Computer software expense | 3,525 | 3,679 | 3,408 | |||||||||
| Marketing and promotion | 1,630 | 2,092 | 1,715 | |||||||||
| Amortization of intangible assets | 1,438 | 1,446 | 1,720 | |||||||||
| (Recapture of) provision for unfunded loan commitments | - | (500 | ) | 500 | ||||||||
| Other | 8,957 | 15,330 | 5,145 | |||||||||
| Total noninterest expense | 59,771 | 65,930 | 54,881 | |||||||||
| Earnings before income taxes | 66,803 | 74,589 | 82,549 | |||||||||
| Income taxes | 18,204 | 26,081 | 23,279 | |||||||||
| Net earnings | $ | 48,599 | $ | 48,508 | $ | 59,270 | ||||||
| Basic earnings per common share | $ | 0.35 | $ | 0.35 | $ | 0.42 | ||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.35 | $ | 0.42 | ||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Interest income - tax equivalent (TE) | $ | 158,228 | $ | 158,620 | $ | 143,332 | ||||||
| Interest expense | 45,228 | 38,722 | 17,058 | |||||||||
| Net interest income - (TE) | $ | 113,000 | $ | 119,898 | $ | 126,274 | ||||||
| Return on average assets, annualized | 1.21 | % | 1.19 | % | 1.47 | % | ||||||
| Return on average equity, annualized | 9.31 | % | 9.65 | % | 12.15 | % | ||||||
| Efficiency ratio [1] | 47.22 | % | 47.60 | % | 39.50 | % | ||||||
| Noninterest expense to average assets, annualized | 1.48 | % | 1.62 | % | 1.36 | % | ||||||
| Yield on average loans | 5.30 | % | 5.18 | % | 4.90 | % | ||||||
| Yield on average earning assets (TE) | 4.34 | % | 4.30 | % | 3.91 | % | ||||||
| Cost of deposits | 0.74 | % | 0.62 | % | 0.17 | % | ||||||
| Cost of deposits and customer repurchase agreements | 0.73 | % | 0.61 | % | 0.17 | % | ||||||
| Cost of funds | 1.31 | % | 1.09 | % | 0.49 | % | ||||||
| Net interest margin (TE) | 3.10 | % | 3.26 | % | 3.45 | % | ||||||
| [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 | 8.33 | % | 8.51 | % | 7.77 | % | ||||||
| Citizens Business Bank | 8.23 | % | 8.40 | % | 7.69 | % | ||||||
| [2] (Capital - [GW+Intangibles])/(Total Assets - [GW+Intangibles]) | ||||||||||||
| Weighted average shares outstanding | ||||||||||||
| Basic | 138,428,596 | 138,368,496 | 138,592,371 | |||||||||
| Diluted | 138,603,324 | 138,569,762 | 138,953,172 | |||||||||
| Dividends declared | $ | 27,886 | $ | 27,945 | $ | 28,007 | ||||||
| Dividend payout ratio [3] | 57.38 | % | 57.61 | % | 47.25 | % | ||||||
| [3] Dividends declared on common stock divided by net earnings. | ||||||||||||
| Number of shares outstanding - (end of period) | 139,641,884 | 139,344,981 | 139,302,451 | |||||||||
| Book value per share | $ | 14.94 | $ | 14.91 | $ | 14.28 | ||||||
| Tangible book value per share | $ | 9.36 | $ | 9.31 | $ | 8.64 | ||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Nonperforming assets: | ||||||||||||
| Nonaccrual loans | $ | 13,810 | $ | 21,302 | $ | 6,175 | ||||||
| Other real estate owned (OREO), net | 647 | - | - | |||||||||
| Total nonperforming assets | $ | 14,457 | $ | 21,302 | $ | 6,175 | ||||||
| Modified loans/performing troubled debt restructured loans (TDR) [4] | $ | 10,765 | $ | 9,460 | $ | 5,836 | ||||||
| [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 | 0.16 | % | 0.24 | % | 0.07 | % | ||||||
| Percentage of nonperforming assets to total assets | 0.09 | % | 0.13 | % | 0.04 | % | ||||||
| Allowance for credit losses to nonperforming assets | 572.85 | % | 407.67 | % | 1401.46 | % | ||||||
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Allowance for credit losses: | ||||||||||||
| Beginning balance | $ | 86,842 | $ | 88,995 | $ | 85,117 | ||||||
| Total charge-offs | (4,267 | ) | (181 | ) | (110 | ) | ||||||
| Total recoveries on loans previously charged-off | 242 | 28 | 33 | |||||||||
| Net recoveries (charge-offs) | (4,025 | ) | (153 | ) | (77 | ) | ||||||
| (Recapture of) provision for credit losses | - | (2,000 | ) | 1,500 | ||||||||
| Allowance for credit losses at end of period | $ | 82,817 | $ | 86,842 | $ | 86,540 | ||||||
| Net recoveries (charge-offs) to average loans | -0.046 | % | -0.002 | % | -0.001 | % | ||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||
| Allowance for Credit Losses by Loan Type | ||||||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||||||
| 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 | $ | 69.4 | 1.03 | % | $ | 69.5 | 1.02 | % | $ | 67.1 | 0.97 | % | ||||||||||||
| Construction | 1.3 | 2.20 | % | 1.3 | 1.91 | % | 1.7 | 1.99 | % | |||||||||||||||
| SBA | 2.5 | 0.94 | % | 2.7 | 0.99 | % | 2.7 | 0.96 | % | |||||||||||||||
| Commercial and industrial | 5.1 | 0.53 | % | 9.1 | 0.94 | % | 8.9 | 1.00 | % | |||||||||||||||
| Dairy & livestock and agribusiness | 3.3 | 0.92 | % | 3.1 | 0.75 | % | 4.8 | 1.55 | % | |||||||||||||||
| Municipal lease finance receivables | 0.2 | 0.27 | % | 0.2 | 0.29 | % | 0.3 | 0.36 | % | |||||||||||||||
| SFR mortgage | 0.5 | 0.17 | % | 0.5 | 0.20 | % | 0.4 | 0.16 | % | |||||||||||||||
| Consumer and other loans | 0.5 | 0.97 | % | 0.4 | 0.85 | % | 0.6 | 0.84 | % | |||||||||||||||
| Total | $ | 82.8 | 0.94 | % | $ | 86.8 | 0.98 | % | $ | 86.5 | 0.97 | % | ||||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||
| Quarterly Common Stock Price | ||||||||||||||||||||||||
| 2024 | 2023 | 2022 | ||||||||||||||||||||||
| Quarter End | High | Low | High | Low | High | Low | ||||||||||||||||||
| March 31, | $ | 20.45 | $ | 15.95 | $ | 25.98 | $ | 16.34 | $ | 24.37 | $ | 21.36 | ||||||||||||
| June 30, | $ | - | $ | - | $ | 16.89 | $ | 10.66 | $ | 25.59 | $ | 22.37 | ||||||||||||
| September 30, | $ | - | $ | - | $ | 19.66 | $ | 12.89 | $ | 28.14 | $ | 22.63 | ||||||||||||
| December 31, | $ | - | $ | - | $ | 21.77 | $ | 14.62 | $ | 29.25 | $ | 25.26 | ||||||||||||
| Quarterly Consolidated Statements of Earnings | ||||||||||||||||||||||||
| Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||
| Loans and leases, including fees | $ | 116,349 | $ | 115,721 | $ | 113,190 | $ | 110,990 | $ | 108,394 | ||||||||||||||
| Investment securities and other | 41,340 | 42,357 | 43,037 | 38,249 | 34,392 | |||||||||||||||||||
| Total interest income | 157,689 | 158,078 | 156,227 | 149,239 | 142,786 | |||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||
| Deposits | 21,366 | 18,888 | 16,517 | 10,765 | 5,365 | |||||||||||||||||||
| Other borrowings | 23,862 | 19,834 | 16,339 | 18,939 | 11,693 | |||||||||||||||||||
| Total interest expense | 45,228 | 38,722 | 32,856 | 29,704 | 17,058 | |||||||||||||||||||
| Net interest income before (recapture of) | ||||||||||||||||||||||||
| provision for credit losses | 112,461 | 119,356 | 123,371 | 119,535 | 125,728 | |||||||||||||||||||
| (Recapture of) provision for credit losses | - | (2,000 | ) | 2,000 | 500 | 1,500 | ||||||||||||||||||
| Net interest income after (recapture of) | ||||||||||||||||||||||||
| provision for credit losses | 112,461 | 121,356 | 121,371 | 119,035 | 124,228 | |||||||||||||||||||
| Noninterest income | 14,113 | 19,163 | 14,309 | 12,656 | 13,202 | |||||||||||||||||||
| Noninterest expense | 59,771 | 65,930 | 55,058 | 54,017 | 54,881 | |||||||||||||||||||
| Earnings before income taxes | 66,803 | 74,589 | 80,622 | 77,674 | 82,549 | |||||||||||||||||||
| Income taxes | 18,204 | 26,081 | 22,735 | 21,904 | 23,279 | |||||||||||||||||||
| Net earnings | $ | 48,599 | $ | 48,508 | $ | 57,887 | $ | 55,770 | $ | 59,270 | ||||||||||||||
| Effective tax rate | 27.25 | % | 34.97 | % | 28.20 | % | 28.20 | % | 28.20 | % | ||||||||||||||
| Basic earnings per common share | $ | 0.35 | $ | 0.35 | $ | 0.42 | $ | 0.40 | $ | 0.42 | ||||||||||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.35 | $ | 0.42 | $ | 0.40 | $ | 0.42 | ||||||||||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||||||||||
| Cash dividends declared | $ | 27,886 | $ | 27,945 | $ | 27,901 | $ | 27,787 | $ | 28,007 | ||||||||||||||
| 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, | ||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Commercial real estate | $ | 6,720,538 | $ | 6,784,505 | $ | 6,843,059 | $ | 6,904,095 | $ | 6,950,302 | ||||||||||
| Construction | 58,806 | 66,734 | 63,022 | 68,836 | 83,992 | |||||||||||||||
| SBA | 268,320 | 270,619 | 283,124 | 278,904 | 283,464 | |||||||||||||||
| SBA - PPP | 2,249 | 2,736 | 3,233 | 5,017 | 5,824 | |||||||||||||||
| Commercial and industrial | 963,120 | 969,895 | 938,064 | 956,242 | 898,167 | |||||||||||||||
| Dairy & livestock and agribusiness | 351,624 | 412,891 | 351,463 | 298,247 | 307,820 | |||||||||||||||
| Municipal lease finance receivables | 72,032 | 73,590 | 75,621 | 77,867 | 79,552 | |||||||||||||||
| SFR mortgage | 276,475 | 269,868 | 268,171 | 263,201 | 262,324 | |||||||||||||||
| Consumer and other loans | 57,549 | 54,072 | 51,875 | 54,988 | 71,044 | |||||||||||||||
| Gross loans, at amortized cost | 8,770,713 | 8,904,910 | 8,877,632 | 8,907,397 | 8,942,489 | |||||||||||||||
| Allowance for credit losses | (82,817 | ) | (86,842 | ) | (88,995 | ) | (86,967 | ) | (86,540 | ) | ||||||||||
| Net loans | $ | 8,687,896 | $ | 8,818,068 | $ | 8,788,637 | $ | 8,820,430 | $ | 8,855,949 | ||||||||||
| Deposit Composition by Type and Customer Repurchase Agreements | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Noninterest-bearing | $ | 7,112,789 | $ | 7,206,175 | $ | 7,586,649 | $ | 7,878,810 | $ | 7,844,329 | ||||||||||
| Investment checking | 545,066 | 552,408 | 560,223 | 574,817 | 668,947 | |||||||||||||||
| Savings and money market | 3,561,512 | 3,278,664 | 3,906,187 | 3,627,858 | 3,474,651 | |||||||||||||||
| Time deposits | 675,554 | 396,395 | 305,727 | 316,036 | 283,943 | |||||||||||||||
| Total deposits | 11,894,921 | 11,433,642 | 12,358,786 | 12,397,521 | 12,271,870 | |||||||||||||||
| Customer repurchase agreements | 275,720 | 271,642 | 269,552 | 452,373 | 490,235 | |||||||||||||||
| Total deposits and customer repurchase agreements | $ | 12,170,641 | $ | 11,705,284 | $ | 12,628,338 | $ | 12,849,894 | $ | 12,762,105 | ||||||||||
| 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, | ||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Nonperforming loans: | ||||||||||||||||||||
| Commercial real estate | $ | 10,661 | $ | 15,440 | $ | 3,655 | $ | 3,159 | $ | 2,634 | ||||||||||
| Construction | - | - | - | - | - | |||||||||||||||
| SBA | 54 | 969 | 1,050 | 629 | 702 | |||||||||||||||
| Commercial and industrial | 2,727 | 4,509 | 4,672 | 2,039 | 2,049 | |||||||||||||||
| Dairy & livestock and agribusiness | 60 | 60 | 243 | 273 | 406 | |||||||||||||||
| SFR mortgage | 308 | 324 | 339 | 354 | 384 | |||||||||||||||
| Consumer and other loans | - | - | 4 | - | - | |||||||||||||||
| Total | $ | 13,810 | $ | 21,302 | $ | 9,963 | [1] | $ | 6,454 | $ | 6,175 | |||||||||
| % of Total loans | 0.16 | % | 0.24 | % | 0.11 | % | 0.07 | % | 0.07 | % | ||||||||||
| Past due 30-89 days (accruing): | ||||||||||||||||||||
| Commercial real estate | $ | 19,781 | $ | 300 | $ | 136 | $ | 532 | $ | 425 | ||||||||||
| Construction | - | - | - | - | - | |||||||||||||||
| SBA | 408 | 108 | - | - | 575 | |||||||||||||||
| Commercial and industrial | 6 | 12 | - | - | - | |||||||||||||||
| Dairy & livestock and agribusiness | - | - | - | 555 | 183 | |||||||||||||||
| SFR mortgage | - | 201 | - | - | - | |||||||||||||||
| Consumer and other loans | - | 18 | - | - | - | |||||||||||||||
| Total | $ | 20,195 | $ | 639 | $ | 136 | $ | 1,087 | $ | 1,183 | ||||||||||
| % of Total loans | 0.23 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.01 | % | ||||||||||
| OREO: | ||||||||||||||||||||
| Commercial real estate | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| SBA | - | - | - | - | - | |||||||||||||||
| Commercial and industrial | 647 | - | - | - | - | |||||||||||||||
| SFR mortgage | - | - | - | - | - | |||||||||||||||
| Total | $ | 647 | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Total nonperforming, past due, and OREO | $ | 34,652 | $ | 21,941 | $ | 10,099 | $ | 7,541 | $ | 7,358 | ||||||||||
| % of Total loans | 0.40 | % | 0.25 | % | 0.11 | % | 0.08 | % | 0.08 | % | ||||||||||
| [1] Includes | ||||||||||||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Regulatory Capital Ratios | ||||||||||||||
| CVB Financial Corp. Consolidated | ||||||||||||||
| Capital Ratios | Minimum Required Plus Capital Conservation Buffer | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Tier 1 leverage capital ratio | 10.5 | % | 10.3 | % | 9.7 | % | ||||||||
| Common equity Tier 1 capital ratio | 14.9 | % | 14.6 | % | 13.8 | % | ||||||||
| Tier 1 risk-based capital ratio | 14.9 | % | 14.6 | % | 13.8 | % | ||||||||
| Total risk-based capital ratio | 15.8 | % | 15.5 | % | 14.6 | % | ||||||||
| Tangible common equity ratio | 8.3 | % | 8.5 | % | 7.8 | % | ||||||||
| 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, 2024, December 31, 2023 and March 31, 2023. | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Stockholders' equity | $ | 2,086,825 | $ | 2,077,972 | $ | 1,989,769 | ||||||
| Less: Goodwill | (765,822 | ) | (765,822 | ) | (765,822 | ) | ||||||
| Less: Intangible assets | (13,853 | ) | (15,291 | ) | (20,023 | ) | ||||||
| Tangible book value | $ | 1,307,150 | $ | 1,296,859 | $ | 1,203,924 | ||||||
| Common shares issued and outstanding | 139,641,884 | 139,344,981 | 139,302,451 | |||||||||
| Tangible book value per share | $ | 9.36 | $ | 9.31 | $ | 8.64 | ||||||
| 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, | |||||||||||
| 2024 | 2023 | 2023 | |||||||||||
| (Dollars in thousands) | |||||||||||||
| Net Income | $ | 48,599 | $ | 48,508 | $ | 59,270 | |||||||
| Add: Amortization of intangible assets | 1,438 | 1,446 | 1,720 | ||||||||||
| Less: Tax effect of amortization of intangible assets [1] | (425 | ) | (427 | ) | (508 | ) | |||||||
| Tangible net income | $ | 49,612 | $ | 49,527 | $ | 60,482 | |||||||
| Average stockholders' equity | $ | 2,098,868 | $ | 1,994,150 | $ | 1,978,244 | |||||||
| Less: Average goodwill | (765,822 | ) | (765,822 | ) | (765,822 | ) | |||||||
| Less: Average intangible assets | (14,585 | ) | (15,993 | ) | (20,983 | ) | |||||||
| Average tangible common equity | $ | 1,318,461 | $ | 1,212,335 | $ | 1,191,439 | |||||||
| Return on average equity, annualized [2] | 9.31 | % | 9.65 | % | 12.15 | % | |||||||
| Return on average tangible common equity, annualized [2] | 15.13 | % | 16.21 | % | 20.59 | % | |||||||
| [1] Tax effected at respective statutory rates. | |||||||||||||
| [2] Annualized where applicable | |||||||||||||
| Contact: | David A. Brager |
| President and | |
| Chief Executive Officer | |
| (909) 980-4030 |
FAQ
What were CVB Financial Corp.'s net earnings for the first quarter of 2024?
What was the return on average assets for CVB Financial Corp. in the first quarter of 2024?
How did the net interest margin change for CVB Financial Corp. in the first quarter of 2024?
What was the total equity for CVB Financial Corp. at the end of the first quarter of 2024?
Did CVB Financial Corp. engage in any stock repurchases during the first quarter of 2024?
