• CVB Financial Corp. Reports Record Earnings for the Fourth Quarter and the Year Ended 2022

    Source: Nasdaq GlobeNewswire / 25 Jan 2023 15:51:24   America/Chicago

    Fourth Quarter 2022 Highlights

    • Net Earnings of $66.2 million, or $0.47 per share
    • Return on Average Tangible Common Equity of 23.65%
    • Return on average assets of 1.60%
    • Net Interest Margin expands by 0.23% to 3.69%
    • Efficiency Ratio of 36.31%

    Full Year 2022 Highlights

    • Net Earnings grew by 11% to $235.4 million
    • Pretax/Pre-provision income grew by 25%

    ONTARIO, Calif., Jan. 25, 2023 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter and the year ended December 31, 2022.

    CVB Financial Corp. reported net income of $66.2 million for the quarter ended December 31, 2022, compared with $64.6 million for the third quarter of 2022 and $47.7 million for the fourth quarter of 2021. Diluted earnings per share were $0.47 for the fourth quarter, compared to $0.46 for the prior quarter and $0.35 for the same period last year. Pretax pre-provision income grew from $91.9 million for the third quarter of 2022 to $95.4 million in the fourth quarter, while growing by approximately 43% from the fourth quarter of 2021. The fourth quarter of 2022 included $2.5 million in provision for credit losses, compared to $2.0 million in provision for the third quarter and no provision or recapture in the fourth quarter of 2021. Net income of $66.2 million for the fourth quarter of 2022 produced an annualized return on average equity (“ROAE”) of 13.68%, an annualized return on average tangible common equity (“ROATCE”) of 23.65%, and an annualized return on average assets (“ROAA”) of 1.60%. Our net interest margin, tax equivalent (“NIM”), increased to 3.69% for the fourth quarter of 2022, while our efficiency ratio was 36.31%.

    For the year ended December 31, 2022, the Company reported record net income of $235.4 million, compared with $212.5 million for the year ended December 31, 2021. Diluted earnings per share were $1.67 for the year ended December 31, 2022, compared to $1.56 for the same period last year. Pretax pre-provision income grew from $272.1 million for 2021 to $338.9 million for the year ended December 31, 2022.

    David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “We are pleased with our record results in 2022 and remain committed to the mission and vision of Citizens Business Bank. The fourth quarter and full year of 2022 represented record quarterly and annual earnings for the Bank, and we ended the fourth quarter with a return on average assets of 1.60% and a return on tangible common equity of 23.65%. Our focus on banking the best privately held small to medium sized businesses and their owners has stood the test of time. We have reported 183 consecutive quarters of profits and just paid our 133rd consecutive quarterly cash dividend, which was increased twice during 2022. I would like to thank our associates for their hard work and dedication, our customers for their business and ongoing loyalty, and our shareholders for their continued support and trust.”

    INCOME STATEMENT HIGHLIGHTS

       Three Months Ended Year Ended December 31,
     December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021    		 2022 2021 2020
     (Dollars in thousands, except per share amounts)
    Net interest income$137,395  $133,338  $102,395  $505,513  $414,550  $416,053 
    (Provision for) recapture of credit losses (2,500)  (2,000)  -   (10,600)  25,500   (23,500)
    Noninterest income 12,465   11,590   12,385   49,989   47,385   49,870 
    Noninterest expense (54,419)  (53,027)  (47,980)  (216,555)  (189,787)  (192,903)
    Income taxes (26,773)  (25,262)  (19,104)  (92,922)  (85,127)  (72,361)
    Net earnings$66,168  $64,639  $47,696  $235,425  $212,521  $177,159 
    Earnings per common share:           
    Basic$0.47  $0.46  $0.35  $1.67  $1.57  $1.30 
    Diluted$0.47  $0.46  $0.35  $1.67  $1.56  $1.30 
                
    NIM 3.69%  3.46%  2.79%  3.30%  2.97%  3.59%
    ROAA 1.60%  1.52%  1.18%  1.39%  1.38%  1.37%
    ROAE 13.68%  12.72%  9.05%  11.39%  10.30%  8.90%
    ROATCE 23.65%  21.34%  13.89%  18.85%  15.93%  14.25%
    Efficiency ratio 36.31%  36.59%  41.80%  38.98%  41.09%  41.40%
    Noninterest expense to average assets, annualized 1.32%  1.25%  1.19%  1.28%  1.24%  1.49%

    Net Interest Income
    Net interest income was $137.4 million for the fourth quarter of 2022. This represented a $4.1 million, or 3.04%, increase from the third quarter of 2022, and a $35.0 million, or 34.18%, increase from the fourth quarter of 2021. The quarter-over-quarter growth in net interest income was primarily due to the expansion of the net interest margin from 3.46% in the third quarter of 2022 to 3.69% for the fourth quarter of 2022. The year-over-year increase in net interest income was primarily due to a 90 basis point expansion of the net interest margin. Total interest income was $142.1 million for the fourth quarter of 2022, which was $6.9 million, or 5.13%, higher than the third quarter of 2022. The increase in interest income from the third quarter of 2022 to the fourth quarter was primarily the result of a 31 basis point expansion in earning asset yield. Interest expense increased $2.9 million, from the prior quarter, due partially to a $1.0 million increase in interest expense on deposits, as a result of a 9 basis point increase in the cost of interest-bearing deposits. Interest expense also increased from the prior quarter by $1.8 million due to average overnight borrowings of approximately $160 million during the fourth quarter of 2022. In comparison to the fourth quarter of 2021, interest income grew by $38.6 million, or 37.27%, through a combination of $121.1 million of growth in average earnings assets and expansion on the yield for earning assets of 100 basis points. Year-over-year earning asset growth resulted from both the acquisition of Suncrest Bank (“Suncrest”) on January 7, 2022, in addition to core loan growth and a nearly $1.0 billion increase in the average investment portfolio over the prior year quarter. Our average balance of funds on deposit at the Federal Reserve declined by $1.9 billion. The year-over-year increase in interest expense resulted from growth of $262 million in average interest-bearing deposits, $160 million on average of overnight borrowings in the fourth quarter of 2022, and a 10 basis point increase in cost of funds.

    Net interest income before provision for (recapture of) credit losses was $505.5 million for the year ended December 31, 2022, compared to $414.6 million for 2021. Interest income grew by $94.0 million, or 22.36% in 2022. The increase in interest income was the result of a 34 basis point expansion in earning asset yield and a $1.3 billion increase in average earning assets. Cost of funds for 2022 increased by 1 basis point over 2021, while the growth in the earning asset yield to 3.36% drove a 33 basis point increase in the net interest margin. The $1.3 billion increase in average earning assets for 2022 benefited from the acquisition of $775 million of loans from Suncrest at the beginning of the year, as well as core loan growth, which excluding the $177.5 million decline in PPP loans, was $634.3 million from the end of 2021 to the end of 2022. Our investment portfolio grew on average by $1.9 billion over the prior year, funded in part by a $1.1 billion decline in average balances at the Federal Reserve. Interest expense increased $3.1 million from the prior year, due to a $600 million increase in the average balance of interest-bearing deposits, which increased in cost by 1 basis point, and overnight borrowings that averaged $40.7 million for the entire year.

    Net Interest Margin
    Our tax equivalent net interest margin was 3.69% for the fourth quarter of 2022, compared to 3.46% for the third quarter of 2022 and 2.79% for the fourth quarter of 2021. The 23 basis point increase in our net interest margin compared to the third quarter of 2022, was primarily due to a 31 basis point increase in our earning asset yield. The increase in the earning asset yield was due to a 22 basis point increase in loan yields, a 24 basis point increase in security yields, and a quarter-over-quarter change in the composition of average earning assets, with loans growing from 56.55% to 59.67% of earnings assets, while funds held at the Federal Reserve declined from 4.1% to 0.9%. The 90 basis point increase in net interest margin, compared to the fourth quarter of 2021 was primarily the result of a 100 basis point increase in earning asset yield. Loan yields grew from 4.29% for the fourth quarter of 2021 to 4.78% for the fourth quarter of 2022. Likewise, the yield on investment securities increased by 84 basis points from the prior year quarter. Loan balances grew to 59.67% of earning assets on average for the fourth quarter of 2022, compared to 53.14% for the fourth quarter of 2021. Excess liquidity held at the Federal Reserve was invested into higher yielding investments, which increased to 39.31% of earning assets on average for the fourth quarter of 2022 from 32.87% for the fourth quarter of 2021, while average funds at the Fed declined from 13.69% or earning assets in the fourth quarter of 2021 to only 0.84% in the fourth quarter of 2022. Total cost of funds of 0.13% for the fourth quarter of 2022 increased from 0.05% for the third quarter of 2022 and increased from 0.03% for the year ago quarter. The 8 basis point increase in the cost of funds from the third quarter of 2022 was the net result of approximately $160 million in average overnight borrowings during the fourth quarter and an increase in the cost of interest-bearing deposits from 0.13% to 0.22%. Compared to the fourth quarter of 2021, the 10 basis point increase in cost of funds was the result of a 14 basis point increase in the cost of interest-bearing deposits and an average cost of overnight borrowings of 4.49% for the fourth quarter of 2022. On average, noninterest-bearing deposits were 63.58% of total deposits during the most recent quarter, compared to 63.38% for the fourth quarter of 2022 and 63.80% for the fourth quarter of 2021.

    Earning Assets and Deposits
    On average, earning assets declined by $521.0 million and grew by $121.1 million, compared to the third quarter of 2022 and the fourth quarter of 2021, respectively. The $521.0 million quarter-over-quarter decline in earning assets resulted from a $500.4 million decrease in interest-earning funds held at the Federal Reserve and average investment securities declining by $191.4 million, which was partially offset by average loans increasing by $169.4 million. Compared to the fourth quarter of 2021, average investments increased by $996.8 million, while the average amount of funds held at the Federal Reserve declined by $1.89 billion.   Average loans increased by $1.03 billion from the fourth quarter of 2021, which included approximately $775 million in loans acquired from Suncrest on January 7, 2022 and a $231.9 million decrease in average PPP loans. Average loans grew by approximately $490 million, or 6.5% from the fourth quarter of 2021, when Suncrest and PPP loans are excluded. Noninterest-bearing deposits declined on average by $307.1 million, or 3.41%, from the third quarter of 2022, while interest-bearing deposits and customer repurchase agreements declined on average by $216.9 million. Compared to the fourth quarter of 2021, total deposits and customer repurchase agreements grew on average by $496.9 million, or 3.62%, including $376.8 million in growth in noninterest bearing deposits.

      Three Months Ended
    SELECTED FINANCIAL HIGHLIGHTSDecember 31, 2022 September 30, 2022 December 31, 2021
      (Dollars in thousands)
    Yield on average investment securities (TE) 2.36%    2.12%    1.52%  
    Yield on average loans 4.78%    4.56%    4.29%  
    Core Loan Yield [1] 4.67%    4.42%    4.08%  
    Yield on average earning assets (TE) 3.82%    3.51%    2.82%  
    Cost of funds 0.13%    0.05%    0.03%  
    Net interest margin (TE) 3.69%    3.46%    2.79%  
                 
    Average Earning Asset MixAvg % of Total Avg % of TotalAvg % of Total
     Total investment securities$5,842,283  39.31% $6,033,696  39.22% $4,845,498  32.87%
     Interest-earning deposits with other institutions 133,931  0.90%  633,152  4.12%  2,045,124  13.87%
     Loans 8,868,673  59.67%  8,699,303  56.55%  7,833,741  53.14%
     Total interest-earning assets 14,863,178     15,384,163     14,742,051   
                 
     [1] Represents yield on average loans excluding the impact of discount accretion and PPP loans.
                 
                 
      Year Ended December 31,
    SELECTED FINANCIAL HIGHLIGHTS 2022   2021
    		  2020
      (Dollars in thousands)
    Yield on average investment securities (TE) 2.03%    1.56%    2.10%  
    Yield on average loans 4.49%    4.42%    4.68%  
    Core Loan Yield [1] 4.36%    4.19%    4.46%  
    Yield on average earning assets (TE) 3.36%    3.02%    3.71%  
    Cost of funds 0.06%    0.05%    0.13%  
    Net interest margin (TE) 3.30%    2.97%    3.59%  
                 
    Average Earning Asset MixAvg % of Total Avg % of TotalAvg % of Total
     Total investment securities$5,939,554  38.47% $4,058,459  28.79% $2,504,020  21.43%
     Interest-earning deposits with other institutions 804,744  5.21%  1,953,209  13.86%  1,098,814  9.40%
     Loans 8,676,820  56.20%  8,065,877  57.22%  8,066,483  69.02%
     Total interest-earning assets 15,439,427     14,095,233     11,687,005   
                 
     [1] Represents yield on average loans excluding the impact of discount accretion and PPP loans.

    Provision for Credit Losses
    The fourth quarter of 2022 included $2.5 million in provision for credit losses, compared to $2.0 million in provision for credit losses in the third quarter of 2022 and no provision for credit losses in the fourth quarter of 2021. The $2.5 million provision for credit losses in the most recent quarter was the result of approximately $190 million in core loan growth, excluding the seasonal dairy and livestock borrowings, during the quarter. Projected loss rates continue to be impacted by a deteriorating economic forecast that assumes a modest recession in early 2023 and modest GDP growth through 2024, as well as lower commercial real estate values and an increase in unemployment. Our forecast reflects GDP growth of 0.3% in 2023 and 1.3% in 2024. Unemployment is forecasted to be 4.8% in 2023 and 5.1% in 2024.

    For the year ended December 31, 2022, we recorded $10.6 million in provision for credit losses, due to both core loan growth of approximately $600 million and a deteriorating economic forecast of key macroeconomic variables. During 2022, we experienced credit charge-offs of $197,000 and total recoveries of $1.1 million, resulting in net recoveries of $893,000. A $25.5 million recapture of provision for credit losses was recorded for the year ended December 31, 2021, resulting from improvements in our economic forecast that resulted from the unprecedented impact and uncertainty of the pandemic in 2020.

    Noninterest Income
    Noninterest income was $12.5 million for the fourth quarter of 2022, compared with $11.6 million for the third quarter of 2022 and $12.4 million for the fourth quarter of 2021. Service charges on deposits increased $524,000 quarter-over-quarter and including the impact of additional customers resulting from the Suncrest acquisition, grew by $1.3 million, or 28.36% in comparison to the fourth quarter of 2021. Fourth quarter income from Bank Owned Life Insurance (“BOLI”) declined by $569,000 from the third quarter of 2022 and was relatively flat compared to the fourth quarter of 2021. The fourth quarter of 2022 included $1.0 million in death benefits that exceeded the asset value of certain BOLI policies, compared to $2.0 million in the third quarter.   The fourth quarter of 2022 included higher income from community development investments which increased by approximately $769,000, quarter-over-quarter.

    For the year ended December 31, 2022, noninterest income was $50.0 million, compared to $47.4 million for 2021.   Service charges on deposit accounts increased by $4.2 million, or 24.66% from the year ended December 31, 2021. Income from BOLI declined by $3.1 million from the prior year, as we incurred a $2.7 million decline in the market value of separate account life insurance policies that are used to fund our deferred compensation liabilities. An additional $1.2 million increase in noninterest income was the net result of a $2.4 million net gain on the sale of one of our properties during 2022, offset by a $1.2 million net gain on the sale of Other Real Estate Owned (“OREO”) properties in 2021.

    Noninterest Expense
    Noninterest expense for the fourth quarter of 2022 was $54.4 million, compared to $53.0 million for the third quarter of 2022 and $48.0 million for the fourth quarter of 2021. The $1.4 million quarter-over-quarter increase included a $921,000 increase in staff related expense and a $224,000 increase in marketing and promotion expense. The $6.4 million increase year-over-year included expense growth associated with the acquisition of Suncrest Bank and the remaining five banking centers. Compared to the fourth quarter of 2021, staff related expenses increased by $4.6 million and occupancy and equipment expense grew by $998,000. Professional service expense was $649,000 higher in the most recent quarter, compared to the fourth quarter of 2021, including $270,000 in higher legal and employee recruiting costs. There was no acquisition expense related to the merger of Suncrest for the fourth quarter and third quarter of 2022, compared to $153,000 for the fourth quarter of 2021. As a percentage of average assets, noninterest expense was 1.32% for the fourth quarter of 2022, compared to 1.25% for the third quarter of 2022 and 1.19% for the fourth quarter of 2021. The efficiency ratio for the fourth quarter of 2022 was 36.31%, compared to 36.59% for the third quarter of 2022 and 41.80% for the fourth quarter of 2021.  

    Noninterest expense of $216.6 million for the year ended December 31, 2022 was $26.8 million higher than the prior year. The year-over-year increase included a $13.7 million increase in salaries and employee benefits, which included additional compensation related expenses for the newly hired and former Suncrest associates. Occupancy and equipment increased by $3.0 million due to the addition of seven banking centers resulting from the acquisition of Suncrest, two of which were subsequently consolidated by the end of the second quarter. Acquisition expense related to the merger of Suncrest was $6.0 million for 2022, compared with $962,000 for 2021. The increase in software expense of $1.9 million, included costs associated with the continued use of Suncrest's legacy banking systems, prior to conversions, as well as continued investments in technology. A $1.7 million increase in marketing and promotion expense for 2022 was primarily due to the impact that the COVID-19 pandemic had on marketing and promotional events in 2021. Professional service expense grew by $1.4 million, including increased costs for legal and employee recruiting of $850,000. The year-over-year increase also included a $1.0 million recapture of provision for unfunded loan commitments for year ended December 31, 2021. As a percentage of average assets, noninterest expense was 1.28% for 2022, compared to 1.24% for 2021. The efficiency ratio was 38.98% for the year ended 2022, compared to 41.09% for the same period of 2021.

    Income Taxes
    Our effective tax rate for the fourth quarter of 2022 was 28.81% and was 28.30% for the year ended December 31, 2022, compared with 28.6% for the fourth quarter and year-to-date 2021.   Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income as well as available tax credits.

    BALANCE SHEET HIGHLIGHTS

    Assets
    The Company reported total assets of $16.48 billion at December 31, 2022. This represented an increase of $127.3 million, or 0.78%, from total assets of $16.35 billion at September 30, 2022. Interest-earning assets of $14.97 billion at December 31, 2022 increased by $159.9 million, or 1.08%, when compared with $14.81 billion at September 30, 2022. The increase in interest-earning assets was primarily due a $305.3 million increase in total loans, partially offset by an $86.7 million decrease in interest-earning balances due from the Federal Reserve and a $70.2 million decrease in investment securities.

    Total assets at December 31, 2022 increased by $592.8 million, or 3.73%, from total assets of $15.88 billion at December 31, 2021. Interest-earning assets increased by $287.5 million, or 1.96%, when compared with $14.68 billion at December 31, 2021. The increase in interest-earning assets included a $1.19 billion increase in total loans and a $699.6 million increase in investment securities, partially offset by a $1.60 billion decrease in interest-earning balances due from the Federal Reserve.

    On January 7, 2022, we completed the acquisition of Suncrest with approximately $1.4 billion in total assets, acquired at fair value. The increase in total assets from December 31, 2021 included $765.9 million of acquired net loans, $131 million of investment securities, and $9 million in bank-owned life insurance. The acquisition resulted in $102.1 million of goodwill and $3.9 million in core deposit premium. Net cash proceeds were used to fund the $39.6 million in cash paid to the former shareholders of Suncrest as part of the merger consideration.

    Investment Securities
    Total investment securities were $5.81 billion at December 31, 2022, a decrease of $70.2 million, or 1.19% from September 30, 2022, and an increase of $699.6 million, or 13.69%, from $5.11 billion at December 31, 2021.  

    At December 31, 2022, investment securities held-to-maturity (“HTM”) totaled $2.55 billion, a decrease of $3.6 million, or 0.14% from September 30, 2022, and an increase of $628.3 million, or 32.62%, from December 31, 2021.

    At December 31, 2022, investment securities available-for-sale (“AFS”) totaled $3.26 billion, inclusive of a pre-tax net unrealized loss of $500.1 million. AFS securities decreased by $66.6 million, or 2.01% from September 30, 2022 and increased by $71.3 million, or 2.24%, from $3.18 billion at December 31, 2021.

    Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled $4.76 billion or approximately 82% of the total investment securities at December 31, 2022. Virtually all of our MBS and CMO are issued or guaranteed by government or government sponsored enterprises, which have the implied guarantee of the U.S. Government. In addition, we had $548.8 million of Government Agency securities (HTM) at December 31, 2022, that represent approximately 9% of the total investment securities.

    Our combined AFS and HTM municipal securities totaled $497.1 million as of December 31, 2022, or 8.6% of our total investment portfolio. These securities are located in 35 states. Our largest concentrations of holdings by state, as a percentage of total municipal bonds, are located in Texas at 15.87%, Minnesota at 11.27%, California at 9.14%, Ohio at 6.32%, Massachusetts at 6.27%, and Washington at 5.81%.

    Loans
    Total loans and leases, at amortized cost, of $9.08 billion at December 31, 2022 increased by $305.3 million, or 3.48%, from September 30, 2022. After adjusting for seasonality of dairy and livestock and PPP loans, our core loans grew by $189.7 million, or approximately 9% annualized from the end of the third quarter. The $305.3 million increase in total loans quarter-over-quarter included $123.8 million in dairy & livestock loans, $199.7 million in commercial real estate loans, $11.8 million in construction loans, partially offset by decreases of $13.3 million in agribusiness loans, $8.3 million in PPP loans, $5.8 million in SBA loans ,and $3.5 million in commercial and industrial loans .

    Total loans and leases increased by $1.19 billion, or 15.11%, from December 31, 2021. The increase in total loans included $774.5 million of loans acquired from Suncrest in the first quarter of 2022. After adjusting for acquired loans and forgiveness of PPP loans, our core loans grew by $634.3 million, or 8.24% from December 31, 2021.   The $634.3 million core loan growth included $514.4 million in commercial real estate loans, $51.2 million in commercial and industrial loans, $31.9 million in dairy & livestock and agribusiness loans, $25.1 million in SFR mortgage loans, $17.9 million in municipal lease financings, and $9.3 million in construction loans, partially offset by a decrease of $17.8 million in SBA loans. PPP loans decreased by $217.1 million, resulting in a remaining balance of $9.1 million at December 31, 2022.

    Asset Quality
    During the fourth quarter of 2022, we experienced credit charge-offs of $127,000 and total recoveries of $143,000, resulting in net recoveries of $16,000. The allowance for credit losses (“ACL”) totaled $85.1 million at December 31, 2022, compared to $82.6 million at September 30, 2022 and $65.0 million at December 31, 2021. The ACL was increased by $20.1 million in 2022, including an $8.6 million increase on January 7 for the acquired Suncrest PCD loans, $10.6 million in provision for credit losses for non-PCD loans, and $893,000 in net loan recoveries. At December 31, 2022, ACL as a percentage of total loans and leases outstanding was 0.94%. This compares to 0.94% and 0.82% at September 30, 2022 and December 31, 2021, respectively.

    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 TrendsDecember 31,
    2022
    		 September 30,
    2022
    		 December 31, 
    2021
    Nonperforming loans(Dollars in thousands)
    Commercial real estate$2,657  $6,705  $3,607 
    SBA 443   1,065   1,034 
    SBA - PPP -   -   - 
    Commercial and industrial 1,320   1,308   1,714 
    Dairy & livestock and agribusiness 477   1,007   - 
    SFR mortgage -   -   380 
    Consumer and other loans 33   32   158 
    Total$4,930  $10,117  $6,893 
    % of Total loans 0.05%  0.12%  0.09%
    OREO     
    Commercial real estate$-  $-  $- 
    SFR mortgage -   -   - 
    Total$-  $-  $- 
          
    Total nonperforming assets$4,930  $10,117  $6,893 
    % of Nonperforming assets to total assets 0.03%  0.06%  0.04%
          
    Past due 30-89 days     
    Commercial real estate$-  $-  $438 
    SBA 556   -   979 
    Commercial and industrial -   -   - 
    Dairy & livestock and agribusiness -   -   - 
    SFR mortgage 388   -   1,040 
    Consumer and other loans 175   -   - 
    Total$1,119  $-  $2,457 
    % of Total loans 0.01%  0.00%  0.03%
          
    Classified Loans$78,658  $63,651  $56,102 

    The $5.2 million decrease in nonperforming loans was primarily due to a decrease of $4.0 million in commercial real estate nonperforming loans resulting from the payoff of PCD loans acquired from Suncrest. Classified loans are loans that are graded “substandard” or worse. Classified loans increased $15.0 million quarter-over-quarter, primarily due to an $18.1 million increase in classified commercial real estate loans. Total classified loans at December 31, 2022 included $22.8 million of classified loans acquired from Suncrest. Excluding the $22.8 million of acquired classified Suncrest loans, classified loans decreased from December 31, 2021 by approximately $250,000.

    Deposits & Customer Repurchase Agreements
    Deposits of $12.84 billion and customer repurchase agreements of $565.4 million totaled $13.40 billion at December 31, 2022. This represented a decrease of $938.6 million, or 6.54%, when compared with $14.34 billion at September 30, 2022. Total deposits and customer repurchases decreased on average from the prior quarter by $524 million, or 3.56%. Total deposits and customer repurchase agreements decreased $217.2 million, or 1.59% when compared to $13.62 billion at December 31, 2021.

    Noninterest-bearing deposits were $8.70 billion on average for the fourth quarter of 2022, a decrease of $307.1 million, or 3.41%, when compared to $9.01 billion on average for the third quarter. Noninterest-bearing deposits increased on average by $376.8 million, or 4.53% when compared to $8.33 billion on average for the fourth quarter of 2021. For the fourth quarter of 2022, average noninterest-bearing deposits were 63.58% of total deposits, compared to 63.38% for the prior quarter, and 63.80% for the year ago quarter.

    Capital
    The Company’s total equity was $1.95 billion at December 31, 2022. This represented an overall decrease of $133.0 million from total equity of $2.08 billion at December 31, 2021. Increases to equity during 2022, included $197.1 million for the issuance of 8.6 million shares to acquire Suncrest and $235.4 million in net earnings. Decreases included $108.1 million in cash dividends and a $350.8 million decrease in other comprehensive income from the tax effected impact of the decline in market value of available-for-sale securities. During 2022, we executed on a $70 million accelerated stock repurchase program and retired 2,993,551 shares of common stock at an average price of $23.38. We also repurchased, under our 10b5-1 stock repurchase plan, 1,914,590 shares of common stock, at an average repurchase price of $23.43, totaling $44.9 million. Our tangible book value per share at December 31, 2022 was $8.30.

    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    		 December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021
             
    Tier 1 leverage capital ratio 4.0% 9.5% 9.1% 9.2%
    Common equity Tier 1 capital ratio 7.0% 13.5% 13.5% 14.9%
    Tier 1 risk-based capital ratio 8.5% 13.5% 13.5% 14.9%
    Total risk-based capital ratio 10.5% 14.4% 14.3% 15.6%
             
    Tangible common equity ratio   7.4% 7.0% 9.2%
             

    CitizensTrust
    As of December 31, 2022 CitizensTrust had approximately $2.9 billion in assets under management and administration, including $1.92 billion in assets under management. Revenues were $2.9 million for the fourth quarter of 2022 and $11.5 million for the year ended December 31, 2022, compared to $3.1 million and $11.6 million, respectively, for the same periods of 2021. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

    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 $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.

    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. PST/10:30 a.m. EST on Thursday, January 26, 2023 to discuss the Company’s fourth quarter and year-ended 2022 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BIf10422a29f10466b84392192ee328a64

    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.

    General risks and uncertainties include, but are not limited to, the following: changes in the U.S. economy and in 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 business or 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, business and legal 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 and on our customers; cybersecurity, privacy and fraud risks, the associated threats to the Company, our vendors and our customers, and the costs of defending against such risks and threats, including the costs of compliance with potential legislation to bolster cybersecurity, privacy protection and fraud prevention 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 or ongoing 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.

    Contact: David A. Brager 
     President and Chief Executive Officer
     (909) 980-4030


    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
          
          
     December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021
    Assets     
    Cash and due from banks$158,236  $186,647  $90,012 
    Interest-earning balances due from Federal Reserve 45,225   131,892   1,642,536 
    Total cash and cash equivalents 203,461   318,539   1,732,548 
    Interest-earning balances due from depository institutions 9,553   7,594   25,999 
    Investment securities available-for-sale 3,255,211   3,321,824   3,183,923 
    Investment securities held-to-maturity 2,554,301   2,557,922   1,925,970 
    Total investment securities 5,809,512   5,879,746   5,109,893 
    Investment in stock of Federal Home Loan Bank (FHLB) 27,627   18,012   17,688 
    Loans and lease finance receivables 9,079,392   8,774,136   7,887,713 
    Allowance for credit losses (85,117)  (82,601)  (65,019)
       Net loans and lease finance receivables 8,994,275   8,691,535   7,822,694 
    Premises and equipment, net 46,698   47,422   49,096 
    Bank owned life insurance (BOLI) 255,528   256,850   251,570 
    Intangibles 21,742   23,466   25,394 
    Goodwill 765,822   765,822   663,707 
    Other assets 342,322   340,290   185,108 
              Total assets$16,476,540  $16,349,276  $15,883,697 
    Liabilities and Stockholders' Equity     
    Liabilities:     
    Deposits:     
    Noninterest-bearing$8,164,364  $8,764,556  $8,104,056 
    Investment checking 723,870   751,618   655,333 
    Savings and money market 3,653,385   3,991,531   3,889,371 
    Time deposits 294,626   364,694   327,682 
       Total deposits 12,836,245   13,872,399   12,976,442 
    Customer repurchase agreements 565,431   467,844   642,388 
    Other borrowings 995,000   -   2,281 
    Payable for securities purchased -   8,697   50,340 
    Other liabilities 131,347   121,450   130,743 
          Total liabilities 14,528,023   14,470,390   13,802,194 
    Stockholders' Equity     
    Stockholders' equity 2,303,313   2,262,383   2,085,471 
    Accumulated other comprehensive loss, net of tax (354,796)  (383,497)  (3,968)
          Total stockholders' equity 1,948,517   1,878,886   2,081,503 
              Total liabilities and stockholders' equity$16,476,540  $16,349,276  $15,883,697 



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
              
              
       Three Months Ended  Year Ended
     December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021    		  2022   2021 
    Assets         
    Cash and due from banks$180,661  $184,384  $159,086  $182,701  $155,926 
    Interest-earning balances due from Federal Reserve 125,350   625,705   2,018,516   795,753   1,922,513 
    Total cash and cash equivalents 306,011   810,089   2,177,602   978,454   2,078,439 
    Interest-earning balances due from depository institutions 8,581   7,447   26,608   8,991   30,696 
    Investment securities available-for-sale 3,273,149   3,576,649   3,034,487   3,532,587   2,849,905 
    Investment securities held-to-maturity 2,569,134   2,457,047   1,811,011   2,406,967   1,208,554 
    Total investment securities 5,842,283   6,033,696   4,845,498   5,939,554   4,058,459 
    Investment in stock of FHLB 18,291   18,012   17,688   18,309   17,688 
    Loans and lease finance receivables 8,868,673   8,699,303   7,833,741   8,676,820   8,065,877 
    Allowance for credit losses (82,612)  (80,321)  (65,304)  (78,159)  (74,871)
       Net loans and lease finance receivables 8,786,061   8,618,982   7,768,437   8,598,661   7,991,006 
    Premises and equipment, net 47,327   47,348   49,711   50,048   50,188 
    Bank owned life insurance (BOLI) 256,216   259,631   252,210   258,779   242,432 
    Intangibles 22,610   24,396   26,216   25,376   29,328 
    Goodwill 765,822   765,822   663,707   764,143   663,707 
    Other assets 341,958   286,465   184,258   269,346   188,578 
              Total assets$16,395,160  $16,871,888  $16,011,935  $16,911,661  $15,350,521 
    Liabilities and Stockholders' Equity         
    Liabilities:         
    Deposits:         
    Noninterest-bearing$8,702,899  $9,009,962  $8,326,073  $8,839,577  $7,817,627 
    Interest-bearing 4,985,591   5,206,387   4,723,759   5,225,081   4,625,045 
       Total deposits 13,688,490   14,216,349   13,049,832   14,064,658   12,442,672 
    Customer repurchase agreements 518,996   515,134   660,734   573,307   610,479 
    Other borrowings 161,197   9   81   40,655   2,008 
    Junior subordinated debentures -   -   -   -   11,581 
    Payable for securities purchased 6,022   23,035   103,635   64,801   111,152 
    Other liabilities 101,472   101,163   106,907   101,777   109,269 
          Total liabilities 14,476,177   14,855,690   13,921,189   14,845,198   13,287,161 
    Stockholders' Equity         
    Stockholders' equity 2,301,770   2,264,490   2,087,716   2,263,627   2,048,876 
    Accumulated other comprehensive (loss) income, net of tax (382,787)  (248,292)  3,030   (197,164)  14,484 
          Total stockholders' equity 1,918,983   2,016,198   2,090,746   2,066,463   2,063,360 
              Total liabilities and stockholders' equity$16,395,160  $16,871,888  $16,011,935  $16,911,661  $15,350,521 



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
              
              
       Three Months Ended  Year Ended
     December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021    		    2022    2021 
    Interest income:         
    Loans and leases, including fees$106,884 $100,077 $84,683 $389,192 $356,594 
    Investment securities:         
    Investment securities available-for-sale 20,091  18,543  9,891  68,508  38,273 
    Investment securities held-to-maturity 13,837  12,834  7,917  49,048  22,175 
         Total investment income 33,928  31,377  17,808  117,556  60,448 
    Dividends from FHLB stock 305  258  261  1,207  1,019 
    Interest-earning deposits with other institutions 1,001  3,476  779  6,713  2,569 
         Total interest income 142,118  135,188  103,531  514,668  420,630 
    Interest expense:         
    Deposits 2,774  1,728  996  6,830  5,346 
    Borrowings and junior subordinated debentures 1,949  122  140  2,325  734 
         Total interest expense 4,723  1,850  1,136  9,155  6,080 
    Net interest income before provision for (recapture of) credit losses 137,395  133,338  102,395  505,513  414,550 
    Provision for (recapture of) credit losses 2,500  2,000  -  10,600  (25,500)
    Net interest income after provision for (recapture of) credit losses 134,895  131,338  102,395  494,913  440,050 
    Noninterest income:         
    Service charges on deposit accounts 5,757  5,233  4,485  21,382  17,152 
    Trust and investment services 2,867  2,867  3,112  11,518  11,571 
    Gain on OREO, net -  -  700  -  1,177 
    Other 3,841  3,490  4,088  17,089  17,485 
         Total noninterest income  12,465  11,590  12,385  49,989  47,385 
    Noninterest expense:         
    Salaries and employee benefits 34,154  33,233  29,588  131,596  117,871 
    Occupancy and equipment 5,820  5,779  4,822  22,737  19,756 
    Professional services 2,574  2,438  1,925  9,362  7,967 
    Computer software expense 3,362  3,243  3,063  13,503  11,584 
    Marketing and promotion 1,712  1,488  1,242  6,296  4,623 
    Amortization of intangible assets 1,724  1,846  1,892  7,566  8,240 
    (Recapture of) unfunded loan commitments -  -  -  -  (1,000)
    Acquisition related expenses -  -  153  6,013  962 
    Other 5,073  5,000  5,295  19,482  19,784 
         Total noninterest expense 54,419  53,027  47,980  216,555  189,787 
    Earnings before income taxes 92,941  89,901  66,800  328,347  297,648 
    Income taxes 26,773  25,262  19,104  92,922  85,127 
    Net earnings$66,168 $64,639 $47,696 $235,425 $212,521 
              
    Basic earnings per common share$0.47 $0.46 $0.35 $1.67 $1.57 
    Diluted earnings per common share$0.47 $0.46 $0.35 $1.67 $1.56 
    Cash dividends declared per common share$0.20 $0.20 $0.18 $0.77 $0.72 



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
              
     Three Months Ended  Year Ended
     December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021    		      2022         2021 
    Interest income - tax equivalent (TE)$142,646  $135,639  $103,795  $516,409  $421,704 
    Interest expense 4,723   1,850   1,136   9,155   6,080 
    Net interest income - (TE)$137,923  $133,789  $102,659  $507,254  $415,624 
              
    Return on average assets, annualized 1.60%  1.52%  1.18%  1.39%  1.38%
    Return on average equity, annualized 13.68%  12.72%  9.05%  11.39%  10.30%
    Efficiency ratio [1] 36.31%  36.59%  41.80%  38.98%  41.09%
    Noninterest expense to average assets, annualized 1.32%  1.25%  1.19%  1.28%  1.24%
    Yield on average loans 4.78%  4.56%  4.29%  4.49%  4.42%
    Yield on average earning assets (TE) 3.82%  3.51%  2.82%  3.36%  3.02%
    Cost of deposits 0.08%  0.05%  0.03%  0.05%  0.04%
    Cost of deposits and customer repurchase agreements 0.08%  0.05%  0.03%  0.05%  0.05%
    Cost of funds 0.13%  0.05%  0.03%  0.06%  0.05%
    Net interest margin (TE) 3.69%  3.46%  2.79%  3.30%  2.97%
    [1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.    
              
    Weighted average shares outstanding         
    Basic 138,890,705   138,887,911   134,955,690   139,652,019   135,164,972 
    Diluted 139,438,103   139,346,975   135,183,895   140,012,135   135,381,867 
    Dividends declared$27,995  $27,965  $24,401  $108,146  $97,814 
    Dividend payout ratio [2] 42.31%  43.26%  51.16%  45.94%  46.03%
    [2] Dividends declared on common stock divided by net earnings.    
              
    Number of shares outstanding - (end of period) 139,818,703   139,805,445   135,526,025     
    Book value per share$13.94  $13.44  $15.36     
    Tangible book value per share$8.30  $7.79  $10.27     
              
     December 31, September 30, December 31,    
      2022   2022   2021     
    Nonperforming assets:         
    Nonaccrual loans$4,930  $10,117  $6,893     
    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$4,930  $10,117  $6,893     
    Troubled debt restructured performing loans$7,817  $5,828  $5,293     
              
    Percentage of nonperforming assets to total loans outstanding and OREO 0.05%  0.12%  0.09%    
    Percentage of nonperforming assets to total assets 0.03%  0.06%  0.04%    
    Allowance for credit losses to nonperforming assets 1726.51%  816.46%  943.26%    
              
     Three Months Ended  Year Ended
     December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021    		       2022          2021 
    Allowance for credit losses:         
    Beginning balance$82,601  $80,222  $65,364  $65,019  $93,692 
    Suncrest FV PCD loans -   -   -   8,605   - 
    Total charge-offs (127)  (46)  (375)  (197)  (3,371)
    Total recoveries on loans previously charged-off 143   425   30   1,090   198 
    Net recoveries (charge-offs) 16   379   (345)  893   (3,173)
    Provision for (recapture of) credit losses 2,500   2,000   -   10,600   (25,500)
    Allowance for credit losses at end of period$85,117  $82,601  $65,019  $85,117  $65,019 
              
    Net recoveries (charge-offs) to average loans 0.000%  0.004%  -0.004%  0.010%  -0.039%



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in millions)
                
    Allowance for Credit Losses by Loan Type          
                
     December 31, 2022 September 30, 2022 December 31, 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$64.8 0.94% $64.9 0.97% $50.9 0.88%
    Construction 1.7 1.93%  1.7 2.25%  0.8 1.23%
    SBA 2.8 0.97%  2.8 0.95%  2.7 0.92%
    SBA - PPP - -   - -   - - 
    Commercial and industrial 10.2 1.08%  7.1 0.75%  6.7 0.82%
    Dairy & livestock and agribusiness 4.4 1.01%  5.0 1.55%  3.0 0.79%
    Municipal lease finance receivables 0.3 0.36%  0.2 0.31%  0.1 0.22%
    SFR mortgage 0.4 0.14%  0.4 0.12%  0.2 0.08%
    Consumer and other loans 0.5 0.69%  0.5 0.60%  0.6 0.82%
                
    Total$85.1 0.94% $82.6 0.94% $65.0 0.82%



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                
    Quarterly Common Stock Price
                
      2022   2021   2020 
    Quarter EndHigh 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,$29.25 $25.26  $21.85  $19.00  $21.34  $16.26 
                
    Quarterly Consolidated Statements of Earnings
                
       Q4 Q3 Q2 Q1 Q4
        2022   2022   2022   2022   2021 
    Interest income           
    Loans and leases, including fees  $106,884  $100,077  $92,770  $89,461  $84,683 
    Investment securities and other   35,234   35,111   30,492   24,639   18,848 
    Total interest income   142,118   135,188   123,262   114,100   103,531 
    Interest expense           
    Deposits   2,774   1,728   1,201   1,127   996 
    Other borrowings   1,949   122   121   133   140 
    Total interest expense   4,723   1,850   1,322   1,260   1,136 
    Net interest income before provision for          
    credit losses   137,395   133,338   121,940   112,840   102,395 
    Provision for credit losses   2,500   2,000   3,600   2,500   - 
    Net interest income after provision for          
    credit losses   134,895   131,338   118,340   110,340   102,395 
                
    Noninterest income   12,465   11,590   14,670   11,264   12,385 
    Noninterest expense   54,419   53,027   50,871   58,238   47,980 
    Earnings before income taxes   92,941   89,901   82,139   63,366   66,800 
    Income taxes   26,773   25,262   23,081   17,806   19,104 
    Net earnings  $66,168  $64,639  $59,058  $45,560  $47,696 
                
    Effective tax rate   28.81%  28.10%  28.10%  28.10%  28.60%
                
    Basic earnings per common share  $0.47  $0.46  $0.42  $0.31  $0.35 
    Diluted earnings per common share $0.47  $0.46  $0.42  $0.31  $0.35 
                
    Cash dividends declared per common share $0.20  $0.20  $0.19  $0.18  $0.18 
                
    Cash dividends declared  $27,995  $27,965  $26,719  $25,467  $24,401 



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
              
    Loan Portfolio by Type
     December 31, September 30,June 30, March 31, December 31,
      2022   2022   2022   2022   2021 
              
    Commercial real estate$6,884,948  $6,685,245  $6,643,628  $6,470,841  $5,789,730 
    Construction 88,271   76,495   60,584   73,478   62,264 
    SBA 290,908   296,664   297,109   311,238   288,600 
    SBA - PPP 9,087   17,348   66,955   121,189   186,585 
    Commercial and industrial 948,683   952,231   941,595   924,780   813,063 
    Dairy & livestock and agribusiness 433,564   323,105   273,594   292,784   386,219 
    Municipal lease finance receivables 81,126   76,656   64,437   65,543   45,933 
    SFR mortgage 266,024   263,646   260,218   255,136   240,654 
    Consumer and other loans 76,781   82,746   84,109   76,695   74,665 
    Gross loans, net of deferred loan fees and discounts 9,079,392   8,774,136   8,692,229   8,591,684   7,887,713 
    Allowance for credit losses (85,117)  (82,601)  (80,222)  (76,119)  (65,019)
    Net loans$8,994,275  $8,691,535  $8,612,007  $8,515,565  $7,822,694 
              
              
              
    Deposit Composition by Type and Customer Repurchase Agreements
              
     December 31, September 30,June 30, March 31, December 31,
      2022   2022   2022   2022   2021 
              
    Noninterest-bearing$8,164,364  $8,764,556  $8,881,223  $9,107,304  $8,104,056 
    Investment checking 723,870   751,618   695,054   714,567   655,333 
    Savings and money market 3,653,385   3,991,531   4,145,634   4,289,550   3,889,371 
    Time deposits 294,626   364,694   350,308   376,357   327,682 
    Total deposits 12,836,245   13,872,399   14,072,219   14,487,778   12,976,442 
              
    Customer repurchase agreements 565,431   467,844   502,829   598,909   642,388 
    Total deposits and customer repurchase agreements$13,401,676  $14,340,243  $14,575,048  $15,086,687  $13,618,830 



    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
              
    Nonperforming Assets and Delinquency Trends
     December 31, September 30,June 30, March 31, December 31,
      2022   2022   2022   2022   2021 
    Nonperforming loans:         
    Commercial real estate$2,657  $6,705  $6,843  $7,055  $3,607 
    Construction -   -   -   -   - 
    SBA 443   1,065   1,075   1,575   1,034 
    SBA - PPP -   -   -   2   - 
    Commercial and industrial 1,320   1,308   1,655   1,771   1,714 
    Dairy & livestock and agribusiness 477   1,007   3,354   2,655   - 
    SFR mortgage -   -   -   167   380 
    Consumer and other loans 33   32   37   40   158 
    Total$ 4,930  $ 10,117  $ 12,964  $ 13,265  $ 6,893 
    % of Total loans 0.05%  0.12%  0.15%  0.15%  0.09%
              
    Past due 30-89 days:         
    Commercial real estate$-  $-  $559  $565  $438 
    Construction -   -   -   -   - 
    SBA 556   -   -   549   979 
    Commercial and industrial -   -   -   6   - 
    Dairy & livestock and agribusiness -   -   -   1,099   - 
    SFR mortgage 388   -   -   403   1,040 
    Consumer and other loans 175   -   -   -   - 
    Total$ 1,119  $ -  $ 559  $ 2,622  $ 2,457 
    % of Total loans 0.01%  0.00%  0.01%  0.03%  0.03%
              
    OREO:         
    Commercial real estate$-  $-  $-  $-  $- 
    SBA -   -   -   -   - 
    SFR mortgage -   -   -   -   - 
    Total$ -  $ -  $ -  $ -  $ - 
         Total nonperforming, past due, and OREO$ 6,049  $ 10,117  $ 13,523  $ 15,887  $ 9,350 
         % of Total loans 0.07%  0.12%  0.16%  0.18%  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    		 December 31,
    2022    		 September 30,
    2022    		 December 31,
    2021
             
    Tier 1 leverage capital ratio 4.0% 9.5% 9.1% 9.2%
    Common equity Tier 1 capital ratio 7.0% 13.5% 13.5% 14.9%
    Tier 1 risk-based capital ratio 8.5% 13.5% 13.5% 14.9%
    Total risk-based capital ratio 10.5% 14.4% 14.3% 15.6%
             
    Tangible common equity ratio   7.4% 7.0% 9.2%



    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 December 31, 2022, September 30, 2022 and December 31, 2021.
                 
                 
      December 31,
    2022
    		 September 30,
    2022
    		 December 31,
    2021
      (Dollars in thousands, except per share amounts)
                 
     Stockholders' equity$1,948,517  $1,878,886  $2,081,503 
     Less: Goodwill (765,822)  (765,822)  (663,707)
     Less: Intangible assets (21,742)  (23,466)  (25,394)
     Tangible book value$1,160,953  $1,089,598  $1,392,402 
     Common shares issued and outstanding 139,818,703   139,805,445   135,526,025 
     Tangible book value per share$8.30  $7.79  $10.27 



    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
    		 Year Ended
      December 31,
    		 September 30,
    		 December 31,
    		        
       2022   2022   2021   2022   2021 
      (Dollars in thousands)
                         
     Net Income$66,168  $64,639  $47,696  $235,425  $212,521 
     Add: Amortization of intangible assets 1,724   1,846   1,892   7,566   8,240 
     Less: Tax effect of amortization of intangible assets [1] (510)  (546)  (559)  (2,237)  (2,436)
     Tangible net income$67,382  $65,939  $49,029  $240,754  $218,325 
                         
     Average stockholders' equity$1,918,983  $2,016,198  $2,090,746  $2,066,463  $2,063,360 
     Less: Average goodwill (765,822)  (765,822)  (663,707)  (764,143)  (663,707)
     Less: Average intangible assets (22,610)  (24,396)  (26,216)  (25,376)  (29,328)
     Average tangible common equity$1,130,551  $1,225,980  $1,400,823  $1,276,944  $1,370,325 
                         
     Return on average equity, annualized 13.68%  12.72%  9.05%  11.39%  10.30%
     Return on average tangible common equity, annualized 23.65%  21.34%  13.89%  18.85%  15.93%
                         
                         
     [1] Tax effected at respective statutory rates.                   

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