CVB Financial Corp. Reports Record Earnings for the Third Quarter 2022
CVB Financial Corp. (NASDAQ: CVBF) reported a strong performance in Q3 2022, with net earnings reaching $64.6 million, or $0.46 per share, marking a 9% increase from Q2 2022. The net interest margin expanded to 3.46%, driven by robust loan growth of 6% and effective expense management. The annualized return on average tangible common equity was an impressive 21.34%. Notably, the company raised its quarterly dividend by 5%. However, provisions for credit losses saw a slight increase to $2.0 million due to anticipated economic challenges.
- Net earnings up 9% to $64.6 million from Q2 2022.
- Diluted EPS increased to $0.46 from $0.42 in the prior quarter.
- Net interest margin expanded to 3.46%, up from 3.16% in Q2 2022.
- Quarterly dividend increased by 5%.
- Provisions for credit losses rose to $2.0 million from $3.6 million in Q2 2022.
Third Quarter Highlights:
- Net Earnings of
$64.6 million , or$0.46 per share - Return on Average Tangible Common Equity of
21.34% - Net Interest Margin expands to
3.46% - Efficiency Ratio of
36.59% - Quarterly annualized loan growth of
6%
ONTARIO, Calif., Oct. 19, 2022 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended September 30, 2022.
CVB Financial Corp. reported net income of
David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “We produced approximately
INCOME STATEMENT HIGHLIGHTS
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Net interest income | $ | 133,338 | $ | 121,940 | $ | 103,299 | $ | 368,118 | $ | 312,155 | |||||||||
| (Provision for) recapture of credit losses | (2,000 | ) | (3,600 | ) | 4,000 | (8,100 | ) | 25,500 | |||||||||||
| Noninterest income | 11,590 | 14,670 | 10,483 | 37,524 | 35,000 | ||||||||||||||
| Noninterest expense | (53,027 | ) | (50,871 | ) | (48,099 | ) | (162,136 | ) | (141,807 | ) | |||||||||
| Income taxes | (25,262 | ) | (23,081 | ) | (19,930 | ) | (66,149 | ) | (66,023 | ) | |||||||||
| Net earnings | $ | 64,639 | $ | 59,058 | $ | 49,753 | $ | 169,257 | $ | 164,825 | |||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 0.46 | $ | 0.42 | $ | 0.37 | $ | 1.20 | $ | 1.21 | |||||||||
| Diluted | $ | 0.46 | $ | 0.42 | $ | 0.37 | $ | 1.20 | $ | 1.21 | |||||||||
| NIM | 3.46 | % | 3.16 | % | 2.89 | % | 3.17 | % | 3.04 | % | |||||||||
| ROAA | 1.52 | % | 1.39 | % | 1.26 | % | 1.32 | % | 1.46 | % | |||||||||
| ROAE | 12.72 | % | 11.33 | % | 9.49 | % | 10.69 | % | 10.73 | % | |||||||||
| ROATCE | 21.34 | % | 18.67 | % | 14.62 | % | 17.48 | % | 16.64 | % | |||||||||
| Efficiency ratio | 36.59 | % | 37.24 | % | 42.27 | % | 39.97 | % | 40.85 | % | |||||||||
| Noninterest expense to average assets, annualized | 1.25 | % | 1.20 | % | 1.22 | % | 1.27 | % | 1.25 | % | |||||||||
Net Interest Income
Net interest income was
Net Interest Margin
Our tax equivalent net interest margin was
Earning Asset and Deposit Growth
On average, earning assets declined by
| Three Months Ended | |||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | September 30, 2022 | June 30, 2022 | September 30, 2021 | ||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Yield on average investment securities (TE) | |||||||||||||||||||||
| Yield on average loans | |||||||||||||||||||||
| Core Loan Yield [1] | |||||||||||||||||||||
| Yield on average earning assets (TE) | |||||||||||||||||||||
| Cost of funds | |||||||||||||||||||||
| Net interest margin (TE) | |||||||||||||||||||||
| Average Earning Asset Mix | Avg | % of Total | Avg | % of Total | Avg | % of Total | |||||||||||||||
| Total investment securities | $ | 6,033,696 | 39.22 | % | $ | 6,104,037 | 39.23 | % | $ | 4,112,147 | 28.55 | % | |||||||||
| Interest-earning deposits with other institutions | 633,152 | 4.12 | % | 804,147 | 5.17 | % | 2,356,121 | 16.36 | % | ||||||||||||
| Loans | 8,699,303 | 56.55 | % | 8,634,575 | 55.49 | % | 7,916,443 | 54.97 | % | ||||||||||||
| Total interest-earning assets | 15,384,163 | 15,560,771 | 14,402,399 | ||||||||||||||||||
| [1] Represents yield on average loans excluding the impact of discount accretion and PPP loans. | |||||||||||||||||||||
Provision for Credit Losses
The third quarter of 2022 included
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense for the third quarter of 2022 was
Income Taxes
Our effective tax rate for the quarter ended September 30, 2022 and year-to-date was
BALANCE SHEET HIGHLIGHTS
Assets
The Company reported total assets of
Total assets increased by
Total assets at September 30, 2022 increased by
On January 7, 2022, we completed the acquisition of Suncrest with approximately
Investment Securities
Total investment securities were
At September 30, 2022, investment securities held-to-maturity (“HTM”) totaled
At September 30, 2022, 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, at amortized cost, of
Total loans and leases increased by
Total loans and leases increased by
Asset Quality
During the third quarter of 2022, we experienced credit charge-offs of
Nonperforming loans, defined as nonaccrual loans and loans 90 days past due accruing interest plus nonperforming TDR loans, and nonperforming assets, defined as nonaccrual loans and loans 90 days past due accruing interest plus OREO, are highlighted below.
| Nonperforming Assets and Delinquency Trends | September 30, 2022 | June 30, 2022 | September 30, 2021 | |||||||||
| Nonperforming loans | (Dollars in thousands) | |||||||||||
| Commercial real estate | $ | 6,705 | $ | 6,843 | $ | 4,073 | ||||||
| SBA | 1,065 | 1,075 | 1,513 | |||||||||
| SBA - PPP | - | - | - | |||||||||
| Commercial and industrial | 1,308 | 1,655 | 2,038 | |||||||||
| Dairy & livestock and agribusiness | 1,007 | 3,354 | 118 | |||||||||
| SFR mortgage | - | - | 399 | |||||||||
| Consumer and other loans | 32 | 37 | 305 | |||||||||
| Total | $ | 10,117 | $ | 12,964 | $ | 8,446 | ||||||
| % of Total loans | 0.12 | % | 0.15 | % | 0.11 | % | ||||||
| OREO | ||||||||||||
| Commercial real estate | $ | - | $ | - | $ | - | ||||||
| SFR mortgage | - | - | - | |||||||||
| Total | $ | - | $ | - | $ | - | ||||||
| Total nonperforming assets | $ | 10,117 | $ | 12,964 | $ | 8,446 | ||||||
| % of Nonperforming assets to total assets | 0.06 | % | 0.08 | % | 0.05 | % | ||||||
| Past due 30-89 days | ||||||||||||
| Commercial real estate | $ | - | $ | 559 | $ | - | ||||||
| SBA | - | - | - | |||||||||
| Commercial and industrial | - | - | 122 | |||||||||
| Dairy & livestock and agribusiness | - | - | 1,000 | |||||||||
| SFR mortgage | - | - | - | |||||||||
| Consumer and other loans | - | - | - | |||||||||
| Total | $ | - | $ | 559 | $ | 1,122 | ||||||
| % of Total loans | 0.00 | % | 0.01 | % | 0.01 | % | ||||||
| Classified Loans | $ | 63,651 | $ | 76,170 | $ | 49,755 | ||||||
Of the
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.
| CVB Financial Corp. Consolidated | |||||||||
| Capital Ratios | Minimum Required Plus Capital Conservation Buffer | September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||
| Tier 1 leverage capital ratio | |||||||||
| Common equity Tier 1 capital ratio | |||||||||
| Tier 1 risk-based capital ratio | |||||||||
| Total risk-based capital ratio | |||||||||
| Tangible common equity ratio | |||||||||
CitizensTrust
As of September 30, 2022 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, October 20, 2022 to discuss the Company’s third quarter 2022 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BI3576222718e14e9c87c7145dbbc0ffe5
The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call, and will be available on the website for approximately 12 months.
Safe Harbor
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause our actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors in addition to those set forth below could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.
Given the ongoing and dynamic nature of the COVID-19 pandemic, the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, workforce, operating platform and prospects remain uncertain. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, could affect us in substantial and unpredictable ways.
General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; the effectiveness of our risk management framework and quantitative models; changes in the levels of our nonperforming assets and charge-offs; the transition away from USD LIBOR and uncertainties regarding potential alternative reference rates, including SOFR; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the CECL model, which has changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; possible credit related impairments or declines in the fair value of securities held by us; possible impairment charges to goodwill; changes in consumer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract deposits and other sources of liquidity; the possibility that we may reduce or discontinue the payments of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services , including alternative forms of payment or currency that could result in the disintermediation of traditional banks; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, such as the COVID-19 pandemic, and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; cybersecurity and fraud risks and threats to the Company, our vendors and our customers, and the costs of defending against them, including the costs of compliance with potential legislation to bolster cybersecurity at a state, national, or global level; our ability to recruit and retain key executives, board members and other employees, and changes in employment laws and regulations; unanticipated regulatory or legal proceedings; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2021 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).
The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.
Non-GAAP Financial Measures — Certain financial information provided in this presentation has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this presentation and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| September 30, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 186,647 | $ | 90,012 | $ | 159,563 | ||||||
| Interest-earning balances due from Federal Reserve | 131,892 | 1,642,536 | 2,401,800 | |||||||||
| Total cash and cash equivalents | 318,539 | 1,732,548 | 2,561,363 | |||||||||
| Interest-earning balances due from depository institutions | 7,594 | 25,999 | 27,260 | |||||||||
| Investment securities available-for-sale | 3,321,824 | 3,183,923 | 2,925,060 | |||||||||
| Investment securities held-to-maturity | 2,557,922 | 1,925,970 | 1,710,938 | |||||||||
| Total investment securities | 5,879,746 | 5,109,893 | 4,635,998 | |||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 18,012 | 17,688 | 17,688 | |||||||||
| Loans and lease finance receivables | 8,774,136 | 7,887,713 | 7,849,520 | |||||||||
| Allowance for credit losses | (82,601 | ) | (65,019 | ) | (65,364 | ) | ||||||
| Net loans and lease finance receivables | 8,691,535 | 7,822,694 | 7,784,156 | |||||||||
| Premises and equipment, net | 47,422 | 49,096 | 49,812 | |||||||||
| Bank owned life insurance (BOLI) | 256,850 | 251,570 | 251,781 | |||||||||
| Intangibles | 23,466 | 25,394 | 27,286 | |||||||||
| Goodwill | 765,822 | 663,707 | 663,707 | |||||||||
| Other assets | 340,290 | 185,108 | 182,547 | |||||||||
| Total assets | $ | 16,349,276 | $ | 15,883,697 | $ | 16,201,598 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 8,764,556 | $ | 8,104,056 | $ | 8,310,709 | ||||||
| Investment checking | 751,618 | 655,333 | 594,347 | |||||||||
| Savings and money market | 3,991,531 | 3,889,371 | 3,680,721 | |||||||||
| Time deposits | 364,694 | 327,682 | 344,439 | |||||||||
| Total deposits | 13,872,399 | 12,976,442 | 12,930,216 | |||||||||
| Customer repurchase agreements | 467,844 | 642,388 | 659,579 | |||||||||
| Other borrowings | - | 2,281 | - | |||||||||
| Payable for securities purchased | 8,697 | 50,340 | 421,751 | |||||||||
| Other liabilities | 121,450 | 130,743 | 126,132 | |||||||||
| Total liabilities | 14,470,390 | 13,802,194 | 14,137,678 | |||||||||
| Stockholders' Equity | ||||||||||||
| Stockholders' equity | 2,262,383 | 2,085,471 | 2,060,842 | |||||||||
| Accumulated other comprehensive (loss) income, net of tax | (383,497 | ) | (3,968 | ) | 3,078 | |||||||
| Total stockholders' equity | 1,878,886 | 2,081,503 | 2,063,920 | |||||||||
| Total liabilities and stockholders' equity | $ | 16,349,276 | $ | 15,883,697 | $ | 16,201,598 | ||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 184,384 | $ | 178,752 | $ | 156,575 | $ | 183,389 | $ | 154,861 | ||||||||||
| Interest-earning balances due from Federal Reserve | 625,705 | 797,268 | 2,328,745 | 1,021,676 | 1,890,160 | |||||||||||||||
| Total cash and cash equivalents | 810,089 | 976,020 | 2,485,320 | 1,205,065 | 2,045,021 | |||||||||||||||
| Interest-earning balances due from depository institutions | 7,447 | 6,879 | 27,376 | 9,130 | 32,074 | |||||||||||||||
| Investment securities available-for-sale | 3,576,649 | 3,736,076 | 2,942,255 | 3,619,983 | 2,787,617 | |||||||||||||||
| Investment securities held-to-maturity | 2,457,047 | 2,367,961 | 1,169,892 | 2,352,350 | 1,005,613 | |||||||||||||||
| Total investment securities | 6,033,696 | 6,104,037 | 4,112,147 | 5,972,333 | 3,793,230 | |||||||||||||||
| Investment in stock of FHLB | 18,012 | 18,012 | 17,688 | 18,315 | 17,688 | |||||||||||||||
| Loans and lease finance receivables | 8,699,303 | 8,634,575 | 7,916,443 | 8,612,166 | 8,144,105 | |||||||||||||||
| Allowance for credit losses | (80,321 | ) | (76,492 | ) | (69,309 | ) | (76,658 | ) | (78,094 | ) | ||||||||||
| Net loans and lease finance receivables | 8,618,982 | 8,558,083 | 7,847,134 | 8,535,508 | 8,066,011 | |||||||||||||||
| Premises and equipment, net | 47,348 | 51,607 | 50,105 | 50,965 | 50,348 | |||||||||||||||
| Bank owned life insurance (BOLI) | 259,631 | 259,500 | 251,099 | 259,643 | 239,137 | |||||||||||||||
| Intangibles | 24,396 | 26,381 | 28,240 | 26,308 | 30,377 | |||||||||||||||
| Goodwill | 765,822 | 765,822 | 663,707 | 763,578 | 663,707 | |||||||||||||||
| Other assets | 286,465 | 240,607 | 190,445 | 244,875 | 190,034 | |||||||||||||||
| Total assets | $ | 16,871,888 | $ | 17,006,948 | $ | 15,673,261 | $ | 17,085,720 | $ | 15,127,627 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing | $ | 9,009,962 | $ | 8,923,043 | $ | 7,991,462 | $ | 8,885,637 | $ | 7,646,283 | ||||||||||
| Interest-bearing | 5,206,387 | 5,249,262 | 4,704,976 | 5,305,788 | 4,591,779 | |||||||||||||||
| Total deposits | 14,216,349 | 14,172,305 | 12,696,438 | 14,191,425 | 12,238,062 | |||||||||||||||
| Customer repurchase agreements | 515,134 | 581,574 | 636,393 | 591,609 | 593,543 | |||||||||||||||
| Other borrowings | 9 | 39 | 4 | 32 | 2,658 | |||||||||||||||
| Junior subordinated debentures | - | - | - | - | 15,483 | |||||||||||||||
| Payable for securities purchased | 23,035 | 66,693 | 151,866 | 84,609 | 113,685 | |||||||||||||||
| Other liabilities | 101,163 | 94,883 | 108,322 | 101,881 | 110,064 | |||||||||||||||
| Total liabilities | 14,855,690 | 14,915,494 | 13,593,023 | 14,969,556 | 13,073,495 | |||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Stockholders' equity | 2,264,490 | 2,238,788 | 2,067,072 | 2,250,774 | 2,035,787 | |||||||||||||||
| Accumulated other comprehensive (loss) income, net of tax | (248,292 | ) | (147,334 | ) | 13,166 | (134,610 | ) | 18,345 | ||||||||||||
| Total stockholders' equity | 2,016,198 | 2,091,454 | 2,080,238 | 2,116,164 | 2,054,132 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 16,871,888 | $ | 17,006,948 | $ | 15,673,261 | $ | 17,085,720 | $ | 15,127,627 | ||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans and leases, including fees | $ | 100,077 | $ | 92,770 | $ | 88,390 | $ | 282,308 | $ | 271,911 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Investment securities available-for-sale | 18,543 | 17,042 | 9,813 | 48,417 | 28,382 | |||||||||||||||
| Investment securities held-to-maturity | 12,834 | 11,714 | 5,188 | 35,211 | 14,258 | |||||||||||||||
| Total investment income | 31,377 | 28,756 | 15,001 | 83,628 | 42,640 | |||||||||||||||
| Dividends from FHLB stock | 258 | 273 | 258 | 902 | 758 | |||||||||||||||
| Interest-earning deposits with other institutions | 3,476 | 1,463 | 898 | 5,712 | 1,790 | |||||||||||||||
| Total interest income | 135,188 | 123,262 | 104,547 | 372,550 | 317,099 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 1,728 | 1,201 | 1,113 | 4,056 | 4,350 | |||||||||||||||
| Borrowings and junior subordinated debentures | 122 | 121 | 135 | 376 | 594 | |||||||||||||||
| Total interest expense | 1,850 | 1,322 | 1,248 | 4,432 | 4,944 | |||||||||||||||
| Net interest income before provision for (recapture of) credit losses | 133,338 | 121,940 | 103,299 | 368,118 | 312,155 | |||||||||||||||
| Provision for (recapture of) credit losses | 2,000 | 3,600 | (4,000 | ) | 8,100 | (25,500 | ) | |||||||||||||
| Net interest income after provision for (recapture of) credit losses | 131,338 | 118,340 | 107,299 | 360,018 | 337,655 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Service charges on deposit accounts | 5,233 | 5,333 | 4,513 | 15,625 | 12,667 | |||||||||||||||
| Trust and investment services | 2,867 | 2,962 | 2,681 | 8,651 | 8,459 | |||||||||||||||
| Gain on OREO, net | - | - | - | - | 477 | |||||||||||||||
| Other | 3,490 | 6,375 | 3,289 | 13,248 | 13,397 | |||||||||||||||
| Total noninterest income | 11,590 | 14,670 | 10,483 | 37,524 | 35,000 | |||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 33,233 | 31,553 | 29,741 | 97,442 | 88,283 | |||||||||||||||
| Occupancy and equipment | 5,779 | 5,567 | 5,122 | 16,917 | 14,934 | |||||||||||||||
| Professional services | 2,438 | 2,305 | 1,626 | 6,788 | 6,042 | |||||||||||||||
| Computer software expense | 3,243 | 3,103 | 3,020 | 10,141 | 8,521 | |||||||||||||||
| Marketing and promotion | 1,488 | 1,638 | 857 | 4,584 | 3,381 | |||||||||||||||
| Amortization of intangible assets | 1,846 | 1,998 | 2,014 | 5,842 | 6,348 | |||||||||||||||
| (Recapture of) unfunded loan commitments | - | - | - | - | (1,000 | ) | ||||||||||||||
| Acquisition related expenses | - | 375 | 809 | 6,013 | 809 | |||||||||||||||
| Other | 5,000 | 4,332 | 4,910 | 14,409 | 14,489 | |||||||||||||||
| Total noninterest expense | 53,027 | 50,871 | 48,099 | 162,136 | 141,807 | |||||||||||||||
| Earnings before income taxes | 89,901 | 82,139 | 69,683 | 235,406 | 230,848 | |||||||||||||||
| Income taxes | 25,262 | 23,081 | 19,930 | 66,149 | 66,023 | |||||||||||||||
| Net earnings | $ | 64,639 | $ | 59,058 | $ | 49,753 | $ | 169,257 | $ | 164,825 | ||||||||||
| Basic earnings per common share | $ | 0.46 | $ | 0.42 | $ | 0.37 | $ | 1.20 | $ | 1.21 | ||||||||||
| Diluted earnings per common share | $ | 0.46 | $ | 0.42 | $ | 0.37 | $ | 1.20 | $ | 1.21 | ||||||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.19 | $ | 0.18 | $ | 0.57 | $ | 0.54 | ||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||
| Interest income - tax equivalent (TE) | $ | 135,639 | $ | 123,661 | $ | 104,812 | $ | 373,763 | $ | 317,909 | ||||||||||
| Interest expense | 1,850 | 1,322 | 1,248 | 4,432 | 4,944 | |||||||||||||||
| Net interest income - (TE) | $ | 133,789 | $ | 122,339 | $ | 103,564 | $ | 369,331 | $ | 312,965 | ||||||||||
| Return on average assets, annualized | 1.52 | % | 1.39 | % | 1.26 | % | 1.32 | % | 1.46 | % | ||||||||||
| Return on average equity, annualized | 12.72 | % | 11.33 | % | 9.49 | % | 10.69 | % | 10.73 | % | ||||||||||
| Efficiency ratio [1] | 36.59 | % | 37.24 | % | 42.27 | % | 39.97 | % | 40.85 | % | ||||||||||
| Noninterest expense to average assets, annualized | 1.25 | % | 1.20 | % | 1.22 | % | 1.27 | % | 1.25 | % | ||||||||||
| Yield on average loans | 4.56 | % | 4.31 | % | 4.43 | % | 4.38 | % | 4.46 | % | ||||||||||
| Yield on average earning assets (TE) | 3.51 | % | 3.20 | % | 2.92 | % | 3.21 | % | 3.09 | % | ||||||||||
| Cost of deposits | 0.05 | % | 0.03 | % | 0.03 | % | 0.04 | % | 0.05 | % | ||||||||||
| Cost of deposits and customer repurchase agreements | 0.05 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.05 | % | ||||||||||
| Cost of funds | 0.05 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.05 | % | ||||||||||
| Net interest margin (TE) | 3.46 | % | 3.16 | % | 2.89 | % | 3.17 | % | 3.04 | % | ||||||||||
| [1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. | ||||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 138,887,911 | 139,748,311 | 135,200,249 | 139,923,280 | 135,225,605 | |||||||||||||||
| Diluted | 139,346,975 | 140,053,074 | 135,383,614 | 140,223,296 | 135,441,390 | |||||||||||||||
| Dividends declared | $ | 27,965 | $ | 26,719 | $ | 24,421 | $ | 80,151 | $ | 73,413 | ||||||||||
| Dividend payout ratio [2] | 43.26 | % | 45.24 | % | 49.08 | % | 47.35 | % | 44.54 | % | ||||||||||
| [2] Dividends declared on common stock divided by net earnings. | ||||||||||||||||||||
| Number of shares outstanding - (end of period) | 139,805,445 | 140,025,579 | 135,516,404 | |||||||||||||||||
| Book value per share | $ | 13.44 | $ | 14.16 | $ | 15.23 | ||||||||||||||
| Tangible book value per share | $ | 7.79 | $ | 8.51 | $ | 10.13 | ||||||||||||||
| September 30, | December 31, | September 30, | ||||||||||||||||||
| 2022 | 2021 | 2021 | ||||||||||||||||||
| Nonperforming assets: | ||||||||||||||||||||
| Nonaccrual loans | $ | 10,117 | $ | 6,893 | $ | 8,446 | ||||||||||||||
| Loans past due 90 days or more and still accruing interest | - | - | - | |||||||||||||||||
| Troubled debt restructured loans (nonperforming) | - | - | - | |||||||||||||||||
| Other real estate owned (OREO), net | - | - | - | |||||||||||||||||
| Total nonperforming assets | $ | 10,117 | $ | 6,893 | $ | 8,446 | ||||||||||||||
| Troubled debt restructured performing loans | $ | 5,828 | $ | 5,293 | $ | 7,975 | ||||||||||||||
| Percentage of nonperforming assets to total loans outstanding and OREO | 0.12 | % | 0.09 | % | 0.11 | % | ||||||||||||||
| Percentage of nonperforming assets to total assets | 0.06 | % | 0.04 | % | 0.05 | % | ||||||||||||||
| Allowance for credit losses to nonperforming assets | 816.46 | % | 943.26 | % | 773.90 | % | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||
| Beginning balance | $ | 80,222 | $ | 76,119 | $ | 69,342 | $ | 65,019 | $ | 93,692 | ||||||||||
| Suncrest FV PCD loans | - | - | - | 8,605 | - | |||||||||||||||
| Total charge-offs | (46 | ) | (8 | ) | (11 | ) | (70 | ) | (2,996 | ) | ||||||||||
| Total recoveries on loans previously charged-off | 425 | 511 | 33 | 947 | 168 | |||||||||||||||
| Net recoveries (charge-offs) | 379 | 503 | 22 | 877 | (2,828 | ) | ||||||||||||||
| Provision for (recapture of) credit losses | 2,000 | 3,600 | (4,000 | ) | 8,100 | (25,500 | ) | |||||||||||||
| Allowance for credit losses at end of period | $ | 82,601 | $ | 80,222 | $ | 65,364 | $ | 82,601 | $ | 65,364 | ||||||||||
| Net recoveries (charge-offs) to average loans | 0.004 | % | 0.006 | % | 0.000 | % | 0.010 | % | -0.035 | % | ||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||
| Allowance for Credit Losses by Loan Type | |||||||||||||||||||||||||||
| September 30, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Allowance For Credit Losses | Allowance as a % of Total Loans by Respective Loan Type | Allowance For Credit Losses | Allowance as a % of Total Loans by Respective Loan Type | Allowance For Credit Losses | Allowance as a % of Total Loans by Respective Loan Type | ||||||||||||||||||||||
| Commercial real estate | $ | 64.9 | 1.0 | % | $ | 50.9 | 0.9 | % | $ | 52.3 | 0.9 | % | |||||||||||||||
| Construction | 1.7 | 2.3 | % | 0.8 | 1.2 | % | 1.1 | 1.4 | % | ||||||||||||||||||
| SBA | 2.8 | 0.9 | % | 2.7 | 0.9 | % | 2.9 | 1.0 | % | ||||||||||||||||||
| SBA - PPP | - | - | - | - | - | - | |||||||||||||||||||||
| Commercial and industrial | 7.1 | 0.7 | % | 6.7 | 0.8 | % | 4.9 | 0.6 | % | ||||||||||||||||||
| Dairy & livestock and agribusiness | 5.0 | 1.5 | % | 3.0 | 0.8 | % | 3.2 | 1.1 | % | ||||||||||||||||||
| Municipal lease finance receivables | 0.2 | 0.3 | % | 0.1 | 0.2 | % | 0.1 | 0.2 | % | ||||||||||||||||||
| SFR mortgage | 0.4 | 0.1 | % | 0.2 | 0.1 | % | 0.2 | 0.1 | % | ||||||||||||||||||
| Consumer and other loans | 0.5 | 0.6 | % | 0.6 | 0.8 | % | 0.7 | 1.0 | % | ||||||||||||||||||
| Total | $ | 82.6 | 0.9 | % | $ | 65.0 | 0.8 | % | $ | 65.4 | 0.8 | % | |||||||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||
| Quarterly Common Stock Price | ||||||||||||||||||||||||
| 2022 | 2021 | 2020 | ||||||||||||||||||||||
| Quarter End | High | Low | High | Low | High | Low | ||||||||||||||||||
| March 31, | $ | 24.37 | $ | 21.36 | $ | 25.00 | $ | 19.15 | $ | 22.01 | $ | 14.92 | ||||||||||||
| June 30, | $ | 25.59 | $ | 22.37 | $ | 22.98 | $ | 20.50 | $ | 22.22 | $ | 15.97 | ||||||||||||
| September 30, | $ | 28.14 | $ | 22.63 | $ | 20.86 | $ | 18.72 | $ | 19.87 | $ | 15.57 | ||||||||||||
| December 31, | $ | 21.85 | $ | 19.00 | $ | 21.34 | $ | 16.26 | ||||||||||||||||
| Quarterly Consolidated Statements of Earnings | ||||||||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||
| Loans and leases, including fees | $ | 100,077 | $ | 92,770 | $ | 89,461 | $ | 84,683 | $ | 88,390 | ||||||||||||||
| Investment securities and other | 35,111 | 30,492 | 24,639 | 18,848 | 16,157 | |||||||||||||||||||
| Total interest income | 135,188 | 123,262 | 114,100 | 103,531 | 104,547 | |||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||
| Deposits | 1,728 | 1,201 | 1,127 | 996 | 1,113 | |||||||||||||||||||
| Other borrowings | 122 | 121 | 133 | 140 | 135 | |||||||||||||||||||
| Total interest expense | 1,850 | 1,322 | 1,260 | 1,136 | 1,248 | |||||||||||||||||||
| Net interest income before provision for | ||||||||||||||||||||||||
| (recapture of) credit losses | 133,338 | 121,940 | 112,840 | 102,395 | 103,299 | |||||||||||||||||||
| Provision for (recapture of) credit losses | 2,000 | 3,600 | 2,500 | - | (4,000 | ) | ||||||||||||||||||
| Net interest income after provision for | ||||||||||||||||||||||||
| (recapture of) credit losses | 131,338 | 118,340 | 110,340 | 102,395 | 107,299 | |||||||||||||||||||
| Noninterest income | 11,590 | 14,670 | 11,264 | 12,385 | 10,483 | |||||||||||||||||||
| Noninterest expense | 53,027 | 50,871 | 58,238 | 47,980 | 48,099 | |||||||||||||||||||
| Earnings before income taxes | 89,901 | 82,139 | 63,366 | 66,800 | 69,683 | |||||||||||||||||||
| Income taxes | 25,262 | 23,081 | 17,806 | 19,104 | 19,930 | |||||||||||||||||||
| Net earnings | $ | 64,639 | $ | 59,058 | $ | 45,560 | $ | 47,696 | $ | 49,753 | ||||||||||||||
| Effective tax rate | 28.10 | % | 28.10 | % | 28.10 | % | 28.60 | % | 28.60 | % | ||||||||||||||
| Basic earnings per common share | $ | 0.46 | $ | 0.42 | $ | 0.31 | $ | 0.35 | $ | 0.37 | ||||||||||||||
| Diluted earnings per common share | $ | 0.46 | $ | 0.42 | $ | 0.31 | $ | 0.35 | $ | 0.37 | ||||||||||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.19 | $ | 0.18 | $ | 0.18 | $ | 0.18 | ||||||||||||||
| Cash dividends declared | $ | 27,965 | $ | 26,719 | $ | 25,467 | $ | 24,401 | $ | 24,421 | ||||||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Loan Portfolio by Type | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||
| Commercial real estate | $ | 6,685,245 | $ | 6,643,628 | $ | 6,470,841 | $ | 5,789,730 | $ | 5,734,699 | ||||||||||
| Construction | 76,495 | 60,584 | 73,478 | 62,264 | 77,398 | |||||||||||||||
| SBA | 296,664 | 297,109 | 311,238 | 288,600 | 307,533 | |||||||||||||||
| SBA - PPP | 17,348 | 66,955 | 121,189 | 186,585 | 330,960 | |||||||||||||||
| Commercial and industrial | 952,231 | 941,595 | 924,780 | 813,063 | 769,977 | |||||||||||||||
| Dairy & livestock and agribusiness | 323,105 | 273,594 | 292,784 | 386,219 | 279,584 | |||||||||||||||
| Municipal lease finance receivables | 76,656 | 64,437 | 65,543 | 45,933 | 47,305 | |||||||||||||||
| SFR mortgage | 263,646 | 260,218 | 255,136 | 240,654 | 231,323 | |||||||||||||||
| Consumer and other loans | 82,746 | 84,109 | 76,695 | 74,665 | 70,741 | |||||||||||||||
| Gross loans, net of deferred loan fees and discounts | 8,774,136 | 8,692,229 | 8,591,684 | 7,887,713 | 7,849,520 | |||||||||||||||
| Allowance for credit losses | (82,601 | ) | (80,222 | ) | (76,119 | ) | (65,019 | ) | (65,364 | ) | ||||||||||
| Net loans | $ | 8,691,535 | $ | 8,612,007 | $ | 8,515,565 | $ | 7,822,694 | $ | 7,784,156 | ||||||||||
| Deposit Composition by Type and Customer Repurchase Agreements | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||
| Noninterest-bearing | $ | 8,764,556 | $ | 8,881,223 | $ | 9,107,304 | $ | 8,104,056 | $ | 8,310,709 | ||||||||||
| Investment checking | 751,618 | 695,054 | 714,567 | 655,333 | 594,347 | |||||||||||||||
| Savings and money market | 3,991,531 | 4,145,634 | 4,289,550 | 3,889,371 | 3,680,721 | |||||||||||||||
| Time deposits | 364,694 | 350,308 | 376,357 | 327,682 | 344,439 | |||||||||||||||
| Total deposits | 13,872,399 | 14,072,219 | 14,487,778 | 12,976,442 | 12,930,216 | |||||||||||||||
| Customer repurchase agreements | 467,844 | 502,829 | 598,909 | 642,388 | 659,579 | |||||||||||||||
| Total deposits and customer repurchase agreements | $ | 14,340,243 | $ | 14,575,048 | $ | 15,086,687 | $ | 13,618,830 | $ | 13,589,795 | ||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Nonperforming Assets and Delinquency Trends | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||
| Nonperforming loans: | ||||||||||||||||||||
| Commercial real estate | $ | 6,705 | $ | 6,843 | $ | 7,055 | $ | 3,607 | $ | 4,073 | ||||||||||
| Construction | - | - | - | - | - | |||||||||||||||
| SBA | 1,065 | 1,075 | 1,575 | 1,034 | 1,513 | |||||||||||||||
| SBA - PPP | - | - | 2 | - | - | |||||||||||||||
| Commercial and industrial | 1,308 | 1,655 | 1,771 | 1,714 | 2,038 | |||||||||||||||
| Dairy & livestock and agribusiness | 1,007 | 3,354 | 2,655 | - | 118 | |||||||||||||||
| SFR mortgage | - | - | 167 | 380 | 399 | |||||||||||||||
| Consumer and other loans | 32 | 37 | 40 | 158 | 305 | |||||||||||||||
| Total | $ | 10,117 | $ | 12,964 | $ | 13,265 | $ | 6,893 | $ | 8,446 | ||||||||||
| % of Total loans | 0.12 | % | 0.15 | % | 0.15 | % | 0.09 | % | 0.11 | % | ||||||||||
| Past due 30-89 days: | ||||||||||||||||||||
| Commercial real estate | $ | - | $ | 559 | $ | 565 | $ | 438 | $ | - | ||||||||||
| Construction | - | - | - | - | - | |||||||||||||||
| SBA | - | - | 549 | 979 | - | |||||||||||||||
| Commercial and industrial | - | - | 6 | - | 122 | |||||||||||||||
| Dairy & livestock and agribusiness | - | - | 1,099 | - | 1,000 | |||||||||||||||
| SFR mortgage | - | - | 403 | 1,040 | - | |||||||||||||||
| Consumer and other loans | - | - | - | - | - | |||||||||||||||
| Total | $ | - | $ | 559 | $ | 2,622 | $ | 2,457 | $ | 1,122 | ||||||||||
| % of Total loans | 0.00 | % | 0.01 | % | 0.03 | % | 0.03 | % | 0.01 | % | ||||||||||
| OREO: | ||||||||||||||||||||
| Commercial real estate | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| SBA | - | - | - | - | - | |||||||||||||||
| SFR mortgage | - | - | - | - | - | |||||||||||||||
| Total | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Total nonperforming, past due, and OREO | $ | 10,117 | $ | 13,523 | $ | 15,887 | $ | 9,350 | $ | 9,568 | ||||||||||
| % of Total loans | 0.12 | % | 0.16 | % | 0.18 | % | 0.12 | % | 0.12 | % | ||||||||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES | ||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||
| (Unaudited) | ||||||||||||
| Regulatory Capital Ratios | ||||||||||||
| CVB Financial Corp. Consolidated | ||||||||||||
| Capital Ratios | Minimum Required Plus Capital Conservation Buffer | September 30, 2022 | December 31, 2021 | September 30, 2021 | ||||||||
| Tier 1 leverage capital ratio | 4.0 | % | 9.1 | % | 9.2 | % | 9.2 | % | ||||
| Common equity Tier 1 capital ratio | 7.0 | % | 13.5 | % | 14.9 | % | 14.9 | % | ||||
| Tier 1 risk-based capital ratio | 8.5 | % | 13.5 | % | 14.9 | % | 14.9 | % | ||||
| Total risk-based capital ratio | 10.5 | % | 14.3 | % | 15.6 | % | 15.7 | % | ||||
| Tangible common equity ratio | 7.0 | % | 9.2 | % | 8.9 | % | ||||||
| Tangible Book Value Reconciliations (Non-GAAP) | ||||||||||||||
| The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of tangible book value to the Company stockholders' equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2022, December 31, 2021 and September 30, 2021. | ||||||||||||||
| September 30, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||
| Stockholders' equity | $ | 1,878,886 | $ | 2,081,503 | $ | 2,063,920 | ||||||||
| Less: Goodwill | (765,822 | ) | (663,707 | ) | (663,707 | ) | ||||||||
| Less: Intangible assets | (23,466 | ) | (25,394 | ) | (27,286 | ) | ||||||||
| Tangible book value | $ | 1,089,598 | $ | 1,392,402 | $ | 1,372,927 | ||||||||
| Common shares issued and outstanding | 139,805,445 | 135,526,025 | 135,516,404 | |||||||||||
| Tangible book value per share | $ | 7.79 | $ | 10.27 | $ | 10.13 | ||||||||
| Return on Average Tangible Common Equity Reconciliations (Non-GAAP) | ||||||||||||||||||||||
| The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity. | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| Net Income | $ | 64,639 | $ | 59,058 | $ | 49,753 | $ | 169,257 | $ | 164,825 | ||||||||||||
| Add: Amortization of intangible assets | 1,846 | 1,998 | 2,014 | 5,842 | 6,348 | |||||||||||||||||
| Less: Tax effect of amortization of intangible assets [1] | (546 | ) | (591 | ) | (595 | ) | (1,727 | ) | (1,877 | ) | ||||||||||||
| Tangible net income | $ | 65,939 | $ | 60,465 | $ | 51,172 | $ | 173,372 | $ | 169,296 | ||||||||||||
| Average stockholders' equity | $ | 2,016,198 | $ | 2,091,454 | $ | 2,080,238 | $ | 2,116,164 | $ | 2,054,132 | ||||||||||||
| Less: Average goodwill | (765,822 | ) | (765,822 | ) | (663,707 | ) | (763,578 | ) | (663,707 | ) | ||||||||||||
| Less: Average intangible assets | (24,396 | ) | (26,381 | ) | (28,240 | ) | (26,308 | ) | (30,377 | ) | ||||||||||||
| Average tangible common equity | $ | 1,225,980 | $ | 1,299,251 | $ | 1,388,291 | $ | 1,326,278 | $ | 1,360,048 | ||||||||||||
| Return on average equity, annualized | 12.72 | % | 11.33 | % | 9.49 | % | 10.69 | % | 10.73 | % | ||||||||||||
| Return on average tangible common equity, annualized | 21.34 | % | 18.67 | % | 14.62 | % | 17.48 | % | 16.64 | % | ||||||||||||
| [1] Tax effected at respective statutory rates. | ||||||||||||||||||||||
| Contact: | David A. Brager |
| President and Chief Executive Officer | |
| (909) 980-4030 |
FAQ
What were CVBF's earnings for Q3 2022?
How did CVB Financial Corp. perform in terms of net interest margin in Q3 2022?
What is the quarterly dividend announced by CVBF for Q3 2022?
What are the projected economic challenges impacting CVBF?
