CVB Financial : Statement of Condition - Q3 2022

STATEMENT OF

CONDITION

September 30, 2022

President's Message

CVB Financial Corp. (CVBF) reported net earnings of $64.6 million for the quarter ended September 30, 2022, compared with $59.1 million for the second quarter of 2022, our 182nd consecutive quarter of profitability. The combination of strong loan growth, expansion of our net interest margin, and our continuing efforts to closely manage expenses in the face of significant inflationary pressures resulted in a record $91.9 million in pretax pre-provision income during the third quarter of 2022, a 7% increase from the second quarter. This growth supported a 5% increase in our quarterly dividend for the third quarter, our 132nd consecutive quarter of paying a cash dividend. The increased dividend represents the second increase in our quarterly dividend in 2022.

The California economy continues to face challenges related to supply chains, a tight labor market, and the same prevailing inflationary pressures, which have contributed to an uncertain business environment. Despite the challenging times, we are thankful and excited about our results for the third quarter, while remaining cautiously optimistic about the future.

In keeping with our commitment to the communities we serve, we recently hosted our 37th Annual Charity Golf Classic, which raised more than $95,000 for Orange County community benefit organizations. We continued one of our oldest community traditions by presenting the Pasadena Tournament of Roses® 2023 Rose Queen® Coronation. We also launched our first Small Business Showcase to support entrepreneurs in Sacramento's small business community, with the winners receiving custom partnership packages to amplify and expand their business reach.

CitizensTrust, our wealth management division that provides trust, investment, and brokerage- related services, as well as financial, estate, and business succession planning, had approximately $2.6 billion in assets under management and administration, including $1.72 billion in assets under management, at quarter end.

Shares of CVB Financial Corp. common stock are listed on the 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 the website under the "Investors" tab.

We continue to focus on executing on our core strategies and supporting our customers through these unpredictable 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

Top 4 Banks	Five-Star	Super Premier
IN AMERICA	SUPERIOR RATING	PERFORMING BANK
Forbes, 2022	BauerFinancial, 2022	Findley Reports, 2022

Board of Directors
Hal W. Oswalt	George A. Borba
Chairman	Vice Chairman
David A. Brager	Jane Olvera
President and CEO	Director
Stephen A. Del Guercio	Raymond V. O'Brien III
Director	Director
Anna Kan	Rodrigo Guerra, Jr.
Director	Director
Kimberly Sheehy
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

132

consecutive quarters of cash dividends paid

182

consecutive quarters

of profitability

$64.6 million

net income

as of 9.30.22

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 4 trust office locations serving California.

Condensed Consolidated Balance Sheets

	(Dollars in thousands, except share amounts)	September 30,		December 31,
	(Unaudited)		2022		2021
Assets
	Cash and due from banks	$	186,647	$	90,012
	Interest-earning balances due from Federal Reserve		131,892		1,642,536
	Total cash and cash equivalents		318,539		1,732,548
	Interest-earning balances due from depository institutions		7,594		25,999
	Investment securities available-for-sale, at fair value
	(with amortized cost of $3,862,216 at September 30, 2022,
	and $3,185,249 at December 31, 2021)		3,321,824		3,183,923
	Investment securities held-to-maturity (with fair value of
	$2,150,988 at September 30, 2022, and $1,921,693 at
	December 31, 2021)		2,557,922		1,925,970
	Total investment securities		5,879,746		5,109,893
	Investment in stock of Federal Home Loan Bank (FHLB)		18,012		17,688
	Loans and lease finance receivables		8,774,136		7,887,713
	Allowance for credit losses		(82,601)		(65,019)
	Net loans and lease finance receivables		8,691,535		7,822,694
	Premises and equipment, net		47,422		49,096
	Bank owned life insurance (BOLI)		256,850		251,570
	Accrued interest receivable		40,745		34,204
	Intangibles		23,466		25,394
	Goodwill		765,822		663,707
	Income taxes		189,172		32,603
	Other assets		110,373		118,301
	Total assets	$	16,349,276	$	15,883,697
Liabilities and Stockholders' Equity
	Liabilities:
	Deposits:
	Noninterest-bearing	$	8,764,556	$	8,104,056
	Interest-bearing		5,107,843		4,872,386
	Total deposits		13,872,399		12,976,442
	Customer repurchase agreements		467,844		642,388
	Other borrowings		-		2,281
	Deferred compensation		21,898		20,879
	Payable for securities purchased		8,697		50,340
	Other liabilities		99,552		109,864
	Total liabilities		14,470,390		13,802,194
Commitments and Contingencies
Stockholders' Equity
	Common stock, authorized, 225,000,000 shares without par;
	issued and outstanding 139,805,445 at September 30,
	2022, and 135,526,025 at December 31, 2021		1,297,709		1,209,903
	Retained earnings		964,674		875,568
	Accumulated other comprehensive (loss) income, net of tax		(383,497)		(3,968)
	Total stockholders' equity		1,878,886		2,081,503
	Total liabilities and stockholders' equity	$	16,349,276	$	15,883,697

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)	Three Months Ended September 30,
(Unaudited)		2022				2021
Interest income:
Loans and leases, including fees	$	100,077		$	88,390
Investment securities:
Investment securities available-for-sale		18,543				9,813
Investment securities held-to-maturity		12,834				5,188
Total investment income		31,377
				15,001
Dividends from FHLB stock		258				258
Interest-earning deposits with other institutions		3,476				898
Total interest income		135,188				104,547
Interest expense:
Deposits		1,728				1,113
Borrowings and customer repurchase agreements		122				135
Junior subordinated debentures		-				-
Total interest expense		1,850				1,248
Net interest income before provision for (recapture of)
credit losses		133,338				103,299
Provision for (recapture of) credit losses		2,000				(4,000)
Net interest income after provision for (recapture of)
credit losses		131,338				107,299
Noninterest income:
Service charges on deposit accounts		5,233				4,513
Trust and investment services		2,867				2,681
Bankcard services		376				479
BOLI income		1,987				1,229
Gain on OREO, net		-				-
Gain on sale of building, net		-				-
Other		1,127				1,581
Total noninterest income		11,590				10,483
Noninterest expense:
Salaries and employee benefits		33,233				29,741
Occupancy and equipment		5,779				5,122
Professional services		2,438				1,626
Computer software expense		3,243				3,020
Marketing and promotion		1,488				857
Amortization of intangible assets		1,846				2,014
(Recapture of) provision for unfunded loan commitments		-				-
Acquisition related expenses		-				809
Other		5,000				4,910
Total noninterest expense		53,027				48,099
Earnings before income taxes		89,901				69,683
Income taxes		25,262				19,930
Net earnings	$	64,639		$	49,753
Basic earnings per common share	$	0.46		$	0.37
Diluted earnings per common share	$	0.46
		$	0.37
Cash dividends declared per common share	$	0.20		$	0.18

CVB Financial Corp.
Citizens Business Bank
Corporate Headquarters
909.980.4030 | cbbank.com	Equal Housing Lender | Member FDIC