STATEMENT OF
CONDITION
June 30, 2023
President's Message
CVB Financial Corp. (CVBF) reported net earnings of $55.8 million for the quarter ended June 30, 2023, compared with $59.3 million for the first quarter of 2023. We announced our 185th consecutive quarter of profitability and our 135th consecutive quarter of paying a cash dividend to our shareholders. Our net interest margin, on a tax equivalent basis, was 3.22% for the second quarter of 2023, while our efficiency ratio was 40.86%. Since our Bank's founding in 1974, we have managed to build a safe, sound, and secure institution with a strategy focused on banking the best small to medium-sized businesses and their owners. We remain focused on our Core Values of Financial Strength, Superior People, Customer Focus, Cost-Effective Operation, and Having Fun. As the premier business bank in California, we have successfully executed on this strategy, and our focus will remain steady and consistent, so we can continue to provide the best banking products and services to these businesses that represent Great American Success Stories.
Our Bank continues to attract new relationships, including the extension of new credit to our customers, as well as the acquisition of new deposit customers. Although current economic conditions have slowed loan demand across the banking industry, our deposit pipeline has strengthened and grown over the second quarter. New deposit accounts opened during the first half of 2023 provided our Bank with approximately $650 million in average new deposits. Importantly, our deposits are 100% core customer relationships, across diversified industries, and our Bank has no brokered deposits. More than 75% of our deposits represent customer relationships that have banked with Citizens Business Bank for three years or more.
In keeping with our commitment to the communities we serve, we recently hosted our 38th Annual Charity Golf Classic, which raised more than $115,000 for the benefit of Orange County charitable community organizations.
CitizensTrust, our wealth management division that provides trust, investment, and brokerage- related services, as well as financial, estate, and business succession planning, had approximately $3.61 billion in assets under management and administration, including $2.41 billion in assets under management, at quarter end.
Shares of CVB Financial Corp. common stock are listed on Nasdaq under the ticker symbol "CVBF". If you are new to CVB Financial Corp. and would like more information about Citizens Business Bank, our principal financial services subsidiary, please visit us on our website at cbbank.com. Additional information about CVB Financial Corp. is available on our Citizens Business Bank website under the "Investors" tab.
We continue to focus on executing on our core strategies and supporting our customers through these demanding times. On behalf of our Board of Directors and all of our hard-working associates, we thank our customers and shareholders for their continued loyalty and support.
President & Chief Executive Officer
CVB Financial Corp., Citizens Business Bank
#1 Best Bank | Five-Star | Super Premier |
IN AMERICA | SUPERIOR RATING | PERFORMING BANK |
Forbes, 2023 | BauerFinancial, 2023 | Findley Reports, 2023 |
Board of Directors | |
Hal W. Oswalt | George A. Borba |
Chairman | Vice Chairman |
David A. Brager | Jane Olvera Majors |
President and CEO | Director |
Stephen A. Del Guercio | Raymond V. O'Brien III |
Director | Director |
Anna Kan | Kimberly Sheehy |
Director | Director |
Leadership Team | |
David A. Brager | E. Allen Nicholson |
President and CEO | EVP, Chief Financial Officer |
David C. Harvey | David F. Farnsworth |
EVP, Chief Operating Officer | EVP, Chief Credit Officer |
Richard H. Wohl | R. Daniel Banis |
EVP, General Counsel | EVP, CitizensTrust |
Yamynn De Angelis | Ted J. Dondanville |
EVP, Chief Risk Officer | EVP, Banking Division |
Hector G. Gutierrez, Esq. | Susan M. Mlot |
EVP, Deputy Chief Credit Officer | EVP, Head of Operations |
Timothy B. Noone | G. Larry Zivelonghi |
EVP, Specialty Banking | EVP, Dairy & Livestock Industries |
Jeffrey S. Boyer | Michael K. Currie |
SVP, Los Angeles Region-North | SVP, Chief Information Officer |
Gilbert W. Estrada | Donald E. Evenson |
SVP, Inland Empire Region | SVP, Chief Investment Officer |
Richard M. Favor | Deborah G. Gallagher |
SVP, Central Coast Region | SVP, SBA Group |
Derrick I. Hong | Joyce Y. Kwon |
SVP, Chief Audit Executive | SVP, Director of Human Resources |
Daniel Limon | Michael B. Mulcahy |
SVP, Specialty Lending Group | SVP, Los Angeles Region-Metro |
Rudy I. Ramirez | Mark C. Richardson |
SVP,Chief Information SecurityOfficer | SVP, Real Estate Banking |
LaVon M. Short | Michael D. Stain |
SVP, Director of Treasury | SVP, Central Valley Region |
Management and Marketing | Robert E. Zeltner |
David S. Stong | |
SVP, Orange County Region | |
SVP, San Diego Region |
135
consecutive quarters of cash dividends paid
185
consecutive quarters
of profitability
$55.8 million
net income
as of 6.30.23
Financials
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 $16 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and 3 trust office locations serving California.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts) | June 30, | December 31, | |||||
(Unaudited) | 2023 | 2022 | |||||
Assets | |||||||
Cash and due from banks | $ | 231,316 | $ | 158,236 | |||
Interest-earning balances due from Federal Reserve | 387,039 | 45,225 | |||||
Total cash and cash equivalents | 618,355 | 203,461 | |||||
Interest-earning balances due from depository institutions | 30,478 | 9,553 | |||||
Investment securities available-for-sale, at fair value | |||||||
(with amortized cost of $3,576,937 at June 30, 2023, | |||||||
and $3,755,297 at December 31, 2022) | 3,068,151 | 3,255,211 | |||||
Investment securities held-to-maturity (with fair value of | |||||||
$2,108,653 at June 30, 2023, and $2,155,587 at | |||||||
December 31, 2022) | 2,512,707 | 2,554,301 | |||||
Total investment securities | 5,580,858 | 5,809,512 | |||||
Investment in stock of Federal Home Loan Bank (FHLB) | 29,484 | 27,627 | |||||
Loans and lease finance receivables | 8,907,397 | 9,079,392 | |||||
Allowance for credit losses | (86,967) | (85,117) | |||||
Net loans and lease finance receivables | 8,820,430 | 8,994,275 | |||||
Premises and equipment, net | 45,518 | 46,698 | |||||
Bank owned life insurance (BOLI) | 257,348 | 255,528 | |||||
Accrued interest receivable | 46,545 | 46,692 | |||||
Intangibles | 18,303 | 21,742 | |||||
Goodwill | 765,822 | 765,822 | |||||
Income taxes | 146,977 | 186,684 | |||||
Other assets | 124,426 | 108,946 | |||||
Total assets | $ | 16,484,544 | $ | 16,476,540 | |||
Liabilities and Stockholders' Equity | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 7,878,810 | $ | 8,164,364 | |||
Interest-bearing | 4,518,711 | 4,671,881 | |||||
Total deposits | 12,397,521 | 12,836,245 | |||||
Customer repurchase agreements | 452,373 | 565,431 | |||||
Other borrowings | 1,495,000 | 995,000 | |||||
Deferred compensation | 23,095 | 22,092 | |||||
Other liabilities | 115,188 | 109,255 | |||||
Total liabilities | 14,483,177 | 14,528,023 | |||||
Commitments and Contingencies | |||||||
Stockholders' Equity | |||||||
Common stock, authorized, 225,000,000 shares without | |||||||
par; issued and outstanding 139,343,284 at June 30, | |||||||
2023, and 139,818,703 at December 31, 2022 | 1,284,150 | 1,300,466 | |||||
Retained earnings | 1,062,093 | 1,002,847 | |||||
Accumulated other comprehensive (loss) income, net of tax | (344,876) | (354,796) | |||||
Total stockholders' equity | 2,001,367 | 1,948,517 | |||||
Total liabilities and stockholders' equity | $ | 16,484,544 | $ | 16,476,540 | |||
Condensed Consolidated Statements of Earnings
(Dollars in thousands, except per share amounts) | Three Months Ended June 30, | |||||
(Unaudited) | 2023 | 2022 | ||||
Interest income: | ||||||
Loans and leases, including fees | $ | 110,990 | $ | 92,770 | ||
Investment securities: | ||||||
Investment securities available-for-sale | 19,356 | 17,042 | ||||
Investment securities held-to-maturity | 13,740 | 11,714 | ||||
Total investment income | 33,096 | |||||
28,756 | ||||||
Dividends from FHLB stock | 483 | 273 | ||||
Interest-earning deposits with other institutions | 4,670 | 1,463 | ||||
Total interest income | 149,239 | 123,262 | ||||
Interest expense: | ||||||
Deposits | 10,765 | 1,201 | ||||
Borrowings and customer repurchase agreements | 18,939 | 121 | ||||
Total interest expense | 29,704 | 1,322 | ||||
Net interest income before provision for credit losses | 119,535 | 121,940 | ||||
Provision for credit losses | 500 | 3,600 | ||||
Net interest income after provision for credit losses | 119,035 | 118,340 | ||||
Noninterest income: | ||||||
Service charges on deposit accounts | 4,838 | 5,333 | ||||
Trust and investment services | 3,315 | 2,962 | ||||
Bankcard services | 490 | 310 | ||||
BOLI income | 2,097 | 603 | ||||
Gain on sale of building, net | - | 2,717 | ||||
Other | 1,916 | 2,745 | ||||
Total noninterest income | 12,656 | 14,670 | ||||
Noninterest expense: | ||||||
Salaries and employee benefits | 33,548 | 31,553 | ||||
Occupancy and equipment | 5,517 | 5,567 | ||||
Professional services | 2,562 | 2,305 | ||||
Computer software expense | 3,316 | 3,103 | ||||
Marketing and promotion | 1,321 | 1,638 | ||||
Provision for unfunded loan commitments | 400 | - | ||||
Amortization of intangible assets | 1,719 | 1,998 | ||||
Acquisition related expenses | - | 375 | ||||
Other | 5,634 | 4,332 | ||||
Total noninterest expense | 54,017 | 50,871 | ||||
Earnings before income taxes | 77,674 | 82,139 | ||||
Income taxes | 21,904 | 23,081 | ||||
Net earnings | $ | 55,770 | $ | 59,058 | ||
Basic earnings per common share | $ | 0.40 | $ | 0.42 | ||
Diluted earnings per common share | $ | 0.40 | $ | 0.42 | ||
Cash dividends declared per common share | $ | 0.20 | $ | 0.19 | ||
CVB Financial Corp. | |
Citizens Business Bank | |
Corporate Headquarters | |
909.980.4030 | cbbank.com | Equal Housing Lender | Member FDIC |
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CVB Financial Corporation published this content on 18 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2023 15:44:09 UTC.