CVB Financial Corp. Reports Earnings for the First Quarter of 2021
CVB Financial Corp. (NASDAQ: CVBF) reported net earnings of $63.9 million for Q1 2021, translating to $0.47 per share. This marks an increase from $50.1 million in Q4 2020 and $38.0 million in Q1 2020. The company achieved a 19.85% return on average tangible common equity and 1.79% return on average assets. Deposit growth reached $2.97 billion, a 33% year-over-year increase. A notable factor in earnings was the $19.5 million recapture of provision for credit losses following improved economic forecasts.
- Net income increased to $63.9 million, a 27.5% increase from Q4 2020.
- Return on average tangible common equity at 19.85%, up from 15.67% in Q4 2020.
- Deposit growth of $2.97 billion, or 33% year-over-year, indicating strong customer confidence.
- Net interest income fell by $2.4 million (2.25%) from Q4 2020, indicating pressure on margins.
- Net interest margin decreased to 3.18% from 3.33% in Q4 2020, showing declining profitability on assets.
- Net Earnings of
$63.9 million for the first quarter of 2021, or$0.47 per share - Return on Average Tangible Common Equity of
19.85% for the first quarter of 2021 - Return on Average Assets of
1.79% for the first quarter of 2021 - Deposit growth of
$2.97 billion or33% year-over-year
ONTARIO, Calif., April 21, 2021 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended March 31, 2021.
CVB Financial Corp. reported net income of
David Brager, Chief Executive Officer of Citizens Business Bank, commented, “Our first quarter results were greatly impacted by the release of most of the reserves for credit losses that were built up in 2020, as the forecasted impact of COVID-19 on the economy has significantly improved since last year at the beginning of the pandemic. I am extremely proud of our associates as we continue to support our customers with round two Paycheck Protection Program loans, by originating more than 1,500 loans for approximately
Net income of
Net interest income before recapture of provision for credit losses was
During the first quarter of 2021, we recaptured
Noninterest income was
Noninterest expense for the first quarter of 2021 was
Net Interest Income and Net Interest Margin
Net interest income, before provision for credit losses, was
Total cost of funds declined to
Income Taxes
Our effective tax rate for the quarter ended March 31, 2021 was
Assets
The Company reported total assets of
Total assets at March 31, 2021 increased by
Investment Securities
Total investment securities were
At March 31, 2021, investment securities held-to-maturity (“HTM”) totaled
At March 31, 2021 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
Loans
Total loans and leases, net of deferred fees and discounts, of
Total loans and leases, net of deferred fees and discounts increased by
Asset Quality
The allowance for credit losses (“ACL”) totaled
Nonperforming loans, defined as nonaccrual loans and loans 90 days past due accruing interest plus nonperforming TDR loans, were
As of March 31, 2021, we had
At March 31, 2021, we had loans delinquent 30 to 89 days of
At March 31, 2021, we had
Nonperforming assets, defined as nonaccrual loans and loans 90 days past due accruing interest plus OREO, totaled
Classified loans are loans that are graded “substandard” or worse. At March 31, 2021, classified loans totaled
Deposits & Customer Repurchase Agreements
Deposits of
Noninterest-bearing deposits were
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. As of March 31, 2021, the Company’s Tier 1 leverage capital ratio was
CitizensTrust
As of March 31, 2021 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 over
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 22, 2021 to discuss the Company’s first quarter 2021 financial results.
To listen to the conference call, please dial (833) 301-1161, participant passcode 1799106. A taped replay will be made available approximately one hour after the conclusion of the call and will remain available through April 29, 2021 at 6:00 a.m. PDT/9:00 a.m. EDT. To access the replay, please dial (855) 859-2056, participant passcode 1799106.
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 matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plans and expectations and our future financial position and operating results. 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. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic and market conditions, political events and public health developments and the impact they may have on us, our customers and our assets and liabilities; our ability to attract deposits and other sources of funding or liquidity; supply and demand for commercial or residential real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend; a sharp or prolonged slowdown or decline in real estate construction, sales or leasing activities; changes in the financial performance and/or condition of our borrowers, depositors, key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for credit losses and charge-offs; the costs or effects of mergers, acquisitions or dispositions we may make, whether we are able to obtain any required governmental approvals in connection with any such mergers, acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits associated with any such mergers, acquisitions or dispositions; the effects of new laws, regulations and/or government programs, including those laws, regulations and programs enacted by federal, state or local governments in the geographic jurisdictions in which we do business in response to the current national emergency declared in connection with the COVID-19 pandemic; the impact of the federal CARES Act and the significant additional lending activities undertaken by the Company in connection with the Small Business Administration’s Paycheck Protection Program enacted thereunder, including risks to the Company with respect to the uncertain application by the Small Business Administration of new borrower and loan eligibility, forgiveness and audit criteria; the effects of the Company’s participation in one or more of the new lending programs recently established by the Federal Reserve, including the Main Street New Loan Facility, the Main Street Priority Loan Facility and the Nonprofit Organization New Loan Facility, and the impact of any related actions or decisions by the Federal Reserve Bank of Boston and its special purpose vehicle established pursuant to such lending programs; the effect of changes in other pertinent laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, bank capital levels, allowance for credit losses, consumer, commercial or secured lending, securities and securities trading and hedging, bank operations, compliance, fair lending, the Community Reinvestment Act, employment, executive compensation, insurance, cybersecurity, vendor management and information security technology) with which we and our subsidiaries must comply or believe we should comply or which may otherwise impact us; changes in estimates of future reserve requirements and minimum capital requirements, based upon the periodic review thereof under relevant regulatory and accounting standards, including changes in the Basel Committee framework establishing capital standards for bank credit, operations and market risks; the accuracy of the assumptions and estimates and the absence of technical error in implementation or calibration of models used to estimate the fair value of financial instruments or currently expected credit losses or delinquencies; inflation, changes in market interest rates, securities market and monetary fluctuations; changes in government-established interest rates, reference rates or monetary policies, including the possible imposition of negative interest rates on bank reserves; the impact of the anticipated phase-out of the London Interbank Offered Rate (LIBOR) on interest rate indexes specified in certain of our customer loan agreements and in our interest rate swap arrangements, including any economic and compliance effects related to the expected change from LIBOR to an alternative reference rate; changes in the amount, cost and availability of deposit insurance; disruptions in the infrastructure that supports our business and the communities where we are located, which are concentrated in California, involving or related to public health, physical site access and/or communication facilities; cyber incidents, attacks, infiltrations, exfiltrations, or theft or loss of Company, customer or employee data or money; political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, the effects of pandemic diseases, climate change or extreme weather events, that may affect electrical, environmental and communications or other services, computer services or facilities we use, or that may affect our assets, customers, employees or third parties with whom we conduct business; our timely development and implementation of new banking products and services and the perceived overall value of these products and services by our customers and potential customers; the Company’s relationships with and reliance upon outside vendors with respect to certain of the Company’s key internal and external systems, applications and controls; changes in commercial or consumer spending, borrowing and savings patterns, preferences or behaviors; technological changes and the expanding use of technology in banking and financial services (including the adoption of mobile banking, funds transfer applications, electronic marketplaces for loans, block-chain technology and other financial products, systems or services); our ability to retain and increase market share, to retain and grow customers and to control expenses; changes in the competitive environment among banks and other financial services and technology providers; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; volatility in the credit and equity markets and its effect on the general economy or local or regional business conditions or on the Company’s capital, deposits, assets or customers; fluctuations in the price of the Company’s common stock or other securities, and the resulting impact on the Company’s ability to raise capital or to make acquisitions; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by the principal regulatory agencies with jurisdiction over the Company, as well as by the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard-setters; changes in our organization, management, compensation and benefit plans, and our ability to recruit and retain or expand or contract our workforce, management team, key executive positions and/or our board of directors; our ability to identify suitable and qualified replacements for any of our executive officers who may leave their employment with us, including our Chief Executive Officer; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, lender liability, bank operations, financial product or service, data privacy, health and safety, consumer or employee class action litigation); regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; our ongoing relations with our various federal and state regulators, including the SEC, Federal Reserve Board, FDIC and California DFPI; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company's public reports, including our Annual Report on Form 10-K for the year ended December 31, 2020, and particularly the discussion of risk factors within that document. Among other risks, the ongoing COVID-19 pandemic may significantly affect the banking industry, the health and safety of the Company’s employees, and the Company’s business prospects. The ultimate impact of the COVID-19 pandemic on our business and financial results will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the impact on the economy, our customers, our employees and our business partners, the safety, effectiveness, distribution and acceptance of vaccines developed to mitigate the pandemic, and actions taken by governmental authorities in response to the pandemic. 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.
| CVB FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 139,713 | $ | 122,305 | $ | 138,615 | |||||
| Interest-earning balances due from Federal Reserve | 1,385,586 | 1,835,855 | 567,124 | ||||||||
| Total cash and cash equivalents | 1,525,299 | 1,958,160 | 705,739 | ||||||||
| Interest-earning balances due from depository institutions | 27,748 | 43,563 | 23,799 | ||||||||
| Investment securities available-for-sale | 2,812,348 | 2,398,923 | 1,679,755 | ||||||||
| Investment securities held-to-maturity | 1,086,984 | 578,626 | 642,255 | ||||||||
| Total investment securities | 3,899,332 | 2,977,549 | 2,322,010 | ||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | 17,688 | ||||||||
| Loans and lease finance receivables | 8,293,057 | 8,348,808 | 7,466,152 | ||||||||
| Allowance for credit losses | (71,805 | ) | (93,692 | ) | (82,641 | ) | |||||
| Net loans and lease finance receivables | 8,221,252 | 8,255,116 | 7,383,511 | ||||||||
| Premises and equipment, net | 49,735 | 51,144 | 52,867 | ||||||||
| Bank owned life insurance (BOLI) | 223,905 | 226,818 | 225,455 | ||||||||
| Intangibles | 31,467 | 33,634 | 40,541 | ||||||||
| Goodwill | 663,707 | 663,707 | 663,707 | ||||||||
| Other assets | 180,305 | 191,935 | 171,571 | ||||||||
| Total assets | $ | 14,840,438 | $ | 14,419,314 | $ | 11,606,888 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 7,577,839 | $ | 7,455,387 | $ | 5,572,649 | |||||
| Investment checking | 567,062 | 517,976 | 454,153 | ||||||||
| Savings and money market | 3,526,424 | 3,361,444 | 2,635,364 | ||||||||
| Time deposits | 407,330 | 401,694 | 451,438 | ||||||||
| Total deposits | 12,078,655 | 11,736,501 | 9,113,604 | ||||||||
| Customer repurchase agreements | 506,346 | 439,406 | 368,915 | ||||||||
| Other borrowings | 5,000 | 5,000 | - | ||||||||
| Junior subordinated debentures | 25,774 | 25,774 | 25,774 | ||||||||
| Payable for securities purchased | 80,973 | 60,113 | - | ||||||||
| Other liabilities | 123,024 | 144,530 | 157,209 | ||||||||
| Total liabilities | 12,819,772 | 12,411,324 | 9,665,502 | ||||||||
| Stockholders' Equity | |||||||||||
| Stockholders' equity | 2,013,710 | 1,972,641 | 1,902,980 | ||||||||
| Accumulated other comprehensive income, net of tax | 6,956 | 35,349 | 38,406 | ||||||||
| Total stockholders' equity | 2,020,666 | 2,007,990 | 1,941,386 | ||||||||
| Total liabilities and stockholders' equity | $ | 14,840,438 | $ | 14,419,314 | $ | 11,606,888 | |||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 150,542 | $ | 181,117 | $ | 166,816 | |||||
| Interest-earning balances due from Federal Reserve | 1,622,093 | 1,506,385 | 243,069 | ||||||||
| Total cash and cash equivalents | 1,772,635 | 1,687,502 | 409,885 | ||||||||
| Interest-earning balances due from depository institutions | 42,100 | 43,940 | 17,972 | ||||||||
| Investment securities available-for-sale | 2,553,767 | 2,242,017 | 1,697,480 | ||||||||
| Investment securities held-to-maturity | 779,826 | 568,188 | 658,916 | ||||||||
| Total investment securities | 3,333,593 | 2,810,205 | 2,356,396 | ||||||||
| Investment in stock of FHLB | 17,688 | 17,688 | 17,688 | ||||||||
| Loans and lease finance receivables | 8,270,282 | 8,347,260 | 7,482,805 | ||||||||
| Allowance for credit losses | (93,483 | ) | (93,799 | ) | (70,736 | ) | |||||
| Net loans and lease finance receivables | 8,176,799 | 8,253,461 | 7,412,069 | ||||||||
| Premises and equipment, net | 50,896 | 51,501 | 53,689 | ||||||||
| Bank owned life insurance (BOLI) | 226,914 | 228,753 | 225,463 | ||||||||
| Intangibles | 32,590 | 34,711 | 41,732 | ||||||||
| Goodwill | 663,707 | 663,707 | 663,707 | ||||||||
| Other assets | 189,733 | 193,398 | 177,199 | ||||||||
| Total assets | $ | 14,506,655 | $ | 13,984,866 | $ | 11,375,800 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 7,240,494 | $ | 6,932,797 | $ | 5,247,025 | |||||
| Interest-bearing | 4,434,282 | 4,368,786 | 3,502,174 | ||||||||
| Total deposits | 11,674,776 | 11,301,583 | 8,749,199 | ||||||||
| Customer repurchase agreements | 559,395 | 494,410 | 478,373 | ||||||||
| Other borrowings | 5,001 | 8,181 | 438 | ||||||||
| Junior subordinated debentures | 25,774 | 25,774 | 25,774 | ||||||||
| Payable for securities purchased | 89,735 | 19,162 | - | ||||||||
| Other liabilities | 119,298 | 128,116 | 115,552 | ||||||||
| Total liabilities | 12,473,979 | 11,977,226 | 9,369,336 | ||||||||
| Stockholders' Equity | |||||||||||
| Stockholders' equity | 1,997,618 | 1,971,726 | 1,993,560 | ||||||||
| Accumulated other comprehensive income, net of tax | 35,058 | 35,914 | 12,904 | ||||||||
| Total stockholders' equity | 2,032,676 | 2,007,640 | 2,006,464 | ||||||||
| Total liabilities and stockholders' equity | $ | 14,506,655 | $ | 13,984,866 | $ | 11,375,800 | |||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||
| (Unaudited) | |||||||||
| (Dollars in thousands, except per share amounts) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2021 | 2020 | 2020 | |||||||
| Interest income: | |||||||||
| Loans and leases, including fees | $ | 91,795 | $ | 95,733 | $ | 92,117 | |||
| Investment securities: | |||||||||
| Investment securities available-for-sale | 9,159 | 9,107 | 10,049 | ||||||
| Investment securities held-to-maturity | 3,940 | 3,190 | 3,998 | ||||||
| Total investment income | 13,099 | 12,297 | 14,047 | ||||||
| Dividends from FHLB stock | 217 | 217 | 332 | ||||||
| Interest-earning deposits with other institutions | 413 | 397 | 613 | ||||||
| Total interest income | 105,524 | 108,644 | 107,109 | ||||||
| Interest expense: | |||||||||
| Deposits | 1,812 | 2,525 | 4,124 | ||||||
| Borrowings and junior subordinated debentures | 244 | 266 | 679 | ||||||
| Total interest expense | 2,056 | 2,791 | 4,803 | ||||||
| Net interest income before (recapture of) provision for credit losses | 103,468 | 105,853 | 102,306 | ||||||
| (Recapture of) provision for credit losses | (19,500 | ) | - | 12,000 | |||||
| Net interest income after (recapture of) provision for credit losses | 122,968 | 105,853 | 90,306 | ||||||
| Noninterest income: | |||||||||
| Service charges on deposit accounts | 3,985 | 4,006 | 4,776 | ||||||
| Trust and investment services | 2,611 | 2,676 | 2,420 | ||||||
| Gain on OREO, net | 429 | 365 | 10 | ||||||
| Other | 6,656 | 5,878 | 4,434 | ||||||
| Total noninterest income | 13,681 | 12,925 | 11,640 | ||||||
| Noninterest expense: | |||||||||
| Salaries and employee benefits | 29,706 | 29,142 | 30,877 | ||||||
| Occupancy and equipment | 4,863 | 5,479 | 4,837 | ||||||
| Professional services | 2,168 | 2,817 | 2,256 | ||||||
| Computer software expense | 2,844 | 2,895 | 2,816 | ||||||
| Marketing and promotion | 725 | 950 | 1,555 | ||||||
| Amortization of intangible assets | 2,167 | 2,170 | 2,445 | ||||||
| Other | 4,690 | 4,823 | 3,855 | ||||||
| Total noninterest expense | 47,163 | 48,276 | 48,641 | ||||||
| Earnings before income taxes | 89,486 | 70,502 | 53,305 | ||||||
| Income taxes | 25,593 | 20,446 | 15,325 | ||||||
| Net earnings | $ | 63,893 | $ | 50,056 | $ | 37,980 | |||
| Basic earnings per common share | $ | 0.47 | $ | 0.37 | $ | 0.27 | |||
| Diluted earnings per common share | $ | 0.47 | $ | 0.37 | $ | 0.27 | |||
| Cash dividends declared per common share | $ | 0.18 | $ | 0.18 | $ | 0.18 | |||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Interest income - tax equivalent (TE) | $ | 105,797 | $ | 108,959 | $ | 107,477 | |||||
| Interest expense | 2,056 | 2,791 | 4,803 | ||||||||
| Net interest income - (TE) | $ | 103,741 | $ | 106,168 | $ | 102,674 | |||||
| Return on average assets, annualized | 1.79 | % | 1.42 | % | 1.34 | % | |||||
| Return on average equity, annualized | 12.75 | % | 9.92 | % | 7.61 | % | |||||
| Efficiency ratio [1] | 40.26 | % | 40.64 | % | 42.69 | % | |||||
| Noninterest expense to average assets, annualized | 1.32 | % | 1.37 | % | 1.72 | % | |||||
| Yield on average loans | 4.50 | % | 4.56 | % | 4.95 | % | |||||
| Yield on average earning assets (TE) | 3.24 | % | 3.41 | % | 4.27 | % | |||||
| Cost of deposits | 0.06 | % | 0.09 | % | 0.19 | % | |||||
| Cost of deposits and customer repurchase agreements | 0.06 | % | 0.09 | % | 0.20 | % | |||||
| Cost of funds | 0.07 | % | 0.09 | % | 0.21 | % | |||||
| Net interest margin (TE) | 3.18 | % | 3.33 | % | 4.08 | % | |||||
| [1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. | |||||||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 135,175,494 | 135,063,751 | 139,106,596 | ||||||||
| Diluted | 135,427,982 | 135,281,882 | 139,315,514 | ||||||||
| Dividends declared | $ | 24,495 | $ | 24,413 | $ | 24,416 | |||||
| Dividend payout ratio [2] | 38.34 | % | 48.77 | % | 64.29 | % | |||||
| [2] Dividends declared on common stock divided by net earnings. | |||||||||||
| Number of shares outstanding - (end of period) | 135,919,625 | 135,600,501 | 135,510,960 | ||||||||
| Book value per share | $ | 14.87 | $ | 14.81 | $ | 14.33 | |||||
| Tangible book value per share | $ | 9.75 | $ | 9.67 | $ | 9.13 | |||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Nonperforming assets: | |||||||||||
| Nonaccrual loans | $ | 13,769 | $ | 14,347 | $ | 6,428 | |||||
| Loans past due 90 days or more and still accruing interest | - | - | - | ||||||||
| Troubled debt restructured loans (nonperforming) | - | - | - | ||||||||
| Other real estate owned (OREO), net | 1,575 | 3,392 | 4,889 | ||||||||
| Total nonperforming assets | $ | 15,344 | $ | 17,739 | $ | 11,317 | |||||
| Troubled debt restructured performing loans | $ | 5,813 | $ | 2,159 | $ | 2,813 | |||||
| Percentage of nonperforming assets to total loans outstanding and OREO | 0.18 | % | 0.21 | % | 0.15 | % | |||||
| Percentage of nonperforming assets to total assets | 0.10 | % | 0.12 | % | 0.10 | % | |||||
| Allowance for credit losses to nonperforming assets | 467.97 | % | 528.17 | % | 730.24 | % | |||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Allowance for credit losses: | |||||||||||
| Beginning balance | $ | 93,692 | $ | 93,869 | $ | 68,660 | |||||
| Impact of adopting ASU 2016-13 | - | - | 1,840 | ||||||||
| Total charge-offs | (2,475 | ) | (182 | ) | (86 | ) | |||||
| Total recoveries on loans previously charged-off | 88 | 5 | 227 | ||||||||
| Net (charge-offs) recoveries | (2,387 | ) | (177 | ) | 141 | ||||||
| (Recapture of) provision for credit losses | (19,500 | ) | - | 12,000 | |||||||
| Allowance for credit losses at end of period | $ | 71,805 | $ | 93,692 | $ | 82,641 | |||||
| Net (charge-offs) recoveries to average loans | -0.029 | % | -0.002 | % | 0.002 | % | |||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Allowance for Credit Losses by Loan Type | |||||||||||||||||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||
| 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 | $ | 56.6 | 1.0 | % | $ | 75.4 | 1.4 | % | $ | 58.4 | 1.1 | % | |||||
| Construction | 1.9 | 1.9 | % | 1.9 | 2.3 | % | 4.6 | 3.6 | % | ||||||||
| SBA | 2.5 | 0.8 | % | 3.0 | 1.0 | % | 3.9 | 1.3 | % | ||||||||
| SBA - PPP | - | - | - | - | - | - | |||||||||||
| Commercial and industrial | 6.4 | 0.9 | % | 7.1 | 0.9 | % | 9.4 | 1.0 | % | ||||||||
| Dairy & livestock and agribusiness | 2.7 | 1.0 | % | 4.0 | 1.1 | % | 4.3 | 1.6 | % | ||||||||
| Municipal lease finance receivables | - | 0.1 | % | 0.1 | 0.2 | % | 0.3 | 0.5 | % | ||||||||
| SFR mortgage | 0.3 | 0.1 | % | 0.4 | 0.1 | % | 0.3 | 0.1 | % | ||||||||
| Consumer and other loans | 1.4 | 1.6 | % | 1.8 | 2.1 | % | 1.4 | 1.2 | % | ||||||||
| Total | $ | 71.8 | 0.9 | % | $ | 93.7 | 1.1 | % | $ | 82.6 | 1.1 | % | |||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
| Quarterly Common Stock Price | ||||||||||||||||||||||
| 2021 | 2020 | 2019 | ||||||||||||||||||||
| Quarter End | High | Low | High | Low | High | Low | ||||||||||||||||
| March 31, | $ | 25.00 | $ | 19.15 | $ | 22.01 | $ | 14.92 | $ | 23.18 | $ | 19.94 | ||||||||||
| June 30, | $ | 22.22 | $ | 15.97 | $ | 22.22 | $ | 20.40 | ||||||||||||||
| September 30, | $ | 19.87 | $ | 15.57 | $ | 22.23 | $ | 20.00 | ||||||||||||||
| December 31, | $ | 21.34 | $ | 16.26 | $ | 22.18 | $ | 19.83 | ||||||||||||||
| Quarterly Consolidated Statements of Earnings | ||||||||||||||||||||||
| Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||
| Interest income | ||||||||||||||||||||||
| Loans and leases, including fees | $ | 91,795 | $ | 95,733 | $ | 94,200 | $ | 95,352 | $ | 92,117 | ||||||||||||
| Investment securities and other | 13,729 | 12,911 | 12,426 | 12,606 | 14,992 | |||||||||||||||||
| Total interest income | 105,524 | 108,644 | 106,626 | 107,958 | 107,109 | |||||||||||||||||
| Interest expense | ||||||||||||||||||||||
| Deposits | 1,812 | 2,525 | 2,958 | 2,995 | 4,124 | |||||||||||||||||
| Other borrowings | 244 | 266 | 343 | 394 | 679 | |||||||||||||||||
| Total interest expense | 2,056 | 2,791 | 3,301 | 3,389 | 4,803 | |||||||||||||||||
| Net interest income before (recapture of) provision for credit losses | 103,468 | 105,853 | 103,325 | 104,569 | 102,306 | |||||||||||||||||
| (Recapture of) provision for credit losses | (19,500 | ) | - | - | 11,500 | 12,000 | ||||||||||||||||
| Net interest income after (recapture of) provision for credit losses | 122,968 | 105,853 | 103,325 | 93,069 | 90,306 | |||||||||||||||||
| Noninterest income | 13,681 | 12,925 | 13,153 | 12,152 | 11,640 | |||||||||||||||||
| Noninterest expense | 47,163 | 48,276 | 49,588 | 46,398 | 48,641 | |||||||||||||||||
| Earnings before income taxes | 89,486 | 70,502 | 66,890 | 58,823 | 53,305 | |||||||||||||||||
| Income taxes | 25,593 | 20,446 | 19,398 | 17,192 | 15,325 | |||||||||||||||||
| Net earnings | $ | 63,893 | $ | 50,056 | $ | 47,492 | $ | 41,631 | $ | 37,980 | ||||||||||||
| Effective tax rate | 28.60 | % | 29.00 | % | 29.00 | % | 29.23 | % | 28.75 | % | ||||||||||||
| Basic earnings per common share | $ | 0.47 | $ | 0.37 | $ | 0.35 | $ | 0.31 | $ | 0.27 | ||||||||||||
| Diluted earnings per common share | $ | 0.47 | $ | 0.37 | $ | 0.35 | $ | 0.31 | $ | 0.27 | ||||||||||||
| Cash dividends declared per common share | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | ||||||||||||
| Cash dividends declared | $ | 24,495 | $ | 24,413 | $ | 24,419 | $ | 24,417 | $ | 24,416 | ||||||||||||
| 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, | ||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||
| Commercial real estate | $ | 5,596,781 | $ | 5,501,509 | $ | 5,428,223 | $ | 5,365,120 | $ | 5,347,925 | ||||||||||
| Construction | 96,356 | 85,145 | 101,903 | 125,815 | 128,045 | |||||||||||||||
| SBA | 307,727 | 303,896 | 304,987 | 300,156 | 313,071 | |||||||||||||||
| SBA - PPP | 897,724 | 882,986 | 1,101,142 | 1,097,150 | - | |||||||||||||||
| Commercial and industrial | 753,708 | 812,062 | 817,056 | 840,738 | 960,761 | |||||||||||||||
| Dairy & livestock and agribusiness | 261,088 | 361,146 | 252,802 | 251,821 | 272,114 | |||||||||||||||
| Municipal lease finance receivables | 42,349 | 45,547 | 38,040 | 49,876 | 51,287 | |||||||||||||||
| SFR mortgage | 255,400 | 270,511 | 274,731 | 286,526 | 278,743 | |||||||||||||||
| Consumer and other loans | 81,924 | 86,006 | 88,988 | 85,332 | 114,206 | |||||||||||||||
| Gross loans, net of deferred loan fees and discounts | 8,293,057 | 8,348,808 | 8,407,872 | 8,402,534 | 7,466,152 | |||||||||||||||
| Allowance for credit losses | (71,805 | ) | (93,692 | ) | (93,869 | ) | (93,983 | ) | (82,641 | ) | ||||||||||
| Net loans | $ | 8,221,252 | $ | 8,255,116 | $ | 8,314,003 | $ | 8,308,551 | $ | 7,383,511 | ||||||||||
| Deposit Composition by Type and Customer Repurchase Agreements | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||
| Noninterest-bearing | $ | 7,577,839 | $ | 7,455,387 | $ | 6,919,423 | $ | 6,901,368 | $ | 5,572,649 | ||||||||||
| Investment checking | 567,062 | 517,976 | 447,910 | 472,509 | 454,153 | |||||||||||||||
| Savings and money market | 3,526,424 | 3,361,444 | 3,356,353 | 3,150,013 | 2,635,364 | |||||||||||||||
| Time deposits | 407,330 | 401,694 | 445,148 | 459,690 | 451,438 | |||||||||||||||
| Total deposits | 12,078,655 | 11,736,501 | 11,168,834 | 10,983,580 | 9,113,604 | |||||||||||||||
| Customer repurchase agreements | 506,346 | 439,406 | 483,420 | 468,156 | 368,915 | |||||||||||||||
| Total deposits and customer repurchase agreements | $ | 12,585,001 | $ | 12,175,907 | $ | 11,652,254 | $ | 11,451,736 | $ | 9,482,519 | ||||||||||
| 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, | ||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||
| Nonperforming loans [1]: | ||||||||||||||||||||
| Commercial real estate | $ | 7,395 | $ | 7,563 | $ | 6,481 | $ | 2,628 | $ | 947 | ||||||||||
| Construction | - | - | - | - | - | |||||||||||||||
| SBA | 2,412 | 2,273 | 1,724 | 1,598 | 2,748 | |||||||||||||||
| Commercial and industrial | 2,967 | 3,129 | 1,822 | 1,222 | 1,703 | |||||||||||||||
| Dairy & livestock and agribusiness | 259 | 785 | 849 | - | - | |||||||||||||||
| SFR mortgage | 424 | 430 | 675 | 1,080 | 864 | |||||||||||||||
| Consumer and other loans | 312 | 167 | 224 | 289 | 166 | |||||||||||||||
| Total | $ | 13,769 | $ | 14,347 | $ | 11,775 | $ | 6,817 | $ | 6,428 | ||||||||||
| % of Total loans | 0.17 | % | 0.17 | % | 0.14 | % | 0.08 | % | 0.09 | % | ||||||||||
| Past due 30-89 days: | ||||||||||||||||||||
| Commercial real estate | $ | 178 | $ | - | $ | - | $ | 4 | $ | 210 | ||||||||||
| Construction | - | - | - | - | - | |||||||||||||||
| SBA | 258 | 1,965 | 66 | 214 | 3,086 | |||||||||||||||
| Commercial and industrial | 952 | 1,101 | 3,627 | 630 | 665 | |||||||||||||||
| Dairy & livestock and agribusiness | - | - | - | 882 | 166 | |||||||||||||||
| SFR mortgage | 266 | - | - | 446 | 233 | |||||||||||||||
| Consumer and other loans | 21 | - | 67 | 413 | - | |||||||||||||||
| Total | $ | 1,675 | $ | 3,066 | $ | 3,760 | $ | 2,589 | $ | 4,360 | ||||||||||
| % of Total loans | 0.02 | % | 0.04 | % | 0.04 | % | 0.03 | % | 0.06 | % | ||||||||||
| OREO: | ||||||||||||||||||||
| Commercial real estate | $ | 1,575 | $ | 1,575 | $ | 1,575 | $ | 2,275 | $ | 2,275 | ||||||||||
| SBA | - | - | 797 | 797 | 797 | |||||||||||||||
| SFR mortgage | - | 1,817 | 1,817 | 1,817 | 1,817 | |||||||||||||||
| Total | $ | 1,575 | $ | 3,392 | $ | 4,189 | $ | 4,889 | $ | 4,889 | ||||||||||
| Total nonperforming, past due, and OREO | $ | 17,019 | $ | 20,805 | $ | 19,724 | $ | 14,295 | $ | 15,677 | ||||||||||
| % of Total loans | 0.21 | % | 0.25 | % | 0.23 | % | 0.17 | % | 0.21 | % | ||||||||||
| [1] As of June 30, 2020, nonperforming loans included | ||||||||||||||||||||
| 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, 2021 | December 31, 2020 | March 31, 2020 | ||||||||
| Tier 1 leverage capital ratio | 4.0 | % | 9.8 | % | 9.9 | % | 11.6 | % | ||||
| Common equity Tier 1 capital ratio | 7.0 | % | 14.9 | % | 14.8 | % | 14.1 | % | ||||
| Tier 1 risk-based capital ratio | 8.5 | % | 15.1 | % | 15.1 | % | 14.4 | % | ||||
| Total risk-based capital ratio | 10.5 | % | 16.1 | % | 16.2 | % | 15.5 | % | ||||
| Tangible common equity ratio | 9.4 | % | 9.6 | % | 11.3 | % | ||||||
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, 2021, December 31, 2020 and March 31, 2020.
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Stockholders' equity | $ | 2,020,666 | $ | 2,007,990 | $ | 1,941,386 | |||||
| Less: Goodwill | (663,707 | ) | (663,707 | ) | (663,707 | ) | |||||
| Less: Intangible assets | (31,467 | ) | (33,634 | ) | (40,541 | ) | |||||
| Tangible book value | $ | 1,325,492 | $ | 1,310,649 | $ | 1,237,138 | |||||
| Common shares issued and outstanding | 135,919,625 | 135,600,501 | 135,510,960 | ||||||||
| Tangible book value per share | $ | 9.75 | $ | 9.67 | $ | 9.13 | |||||
Return on Average Tangible Common Equity Reconciliations (Non-GAAP)
The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Net Income | $ | 63,893 | $ | 50,056 | $ | 37,980 | ||||||
| Add: Amortization of intangible assets | 2,167 | 2,170 | 2,445 | |||||||||
| Less: Tax effect of amortization of intangible assets [1] | (641 | ) | (642 | ) | (723 | ) | ||||||
| Tangible net income | $ | 65,419 | $ | 51,584 | $ | 39,702 | ||||||
| Average stockholders' equity | $ | 2,032,676 | $ | 2,007,640 | $ | 2,006,464 | ||||||
| Less: Average goodwill | (663,707 | ) | (663,707 | ) | (663,707 | ) | ||||||
| Less: Average intangible assets | (32,590 | ) | (34,711 | ) | (41,732 | ) | ||||||
| Average tangible common equity | $ | 1,336,379 | $ | 1,309,222 | $ | 1,301,025 | ||||||
| Return on average equity, annualized | 12.75 | % | 9.92 | % | 7.61 | % | ||||||
| Return on average tangible common equity, annualized | 19.85 | % | 15.67 | % | 12.27 | % | ||||||
| [1] Tax effected at respective statutory rates. | ||||||||||||
| Contact: | David A. Brager |
| Chief Executive Officer | |
| (909) 980-4030 |
FAQ
What are the Q1 2021 earnings for CVBF?
How much did CVB Financial Corp grow its deposits in Q1 2021?
What was the return on average assets for CVB Financial Corp in Q1 2021?
What was the provision for credit losses in Q1 2021 for CVBF?
