CVB Financial : Statement of Condition - Q2 2021

STATEMENT OF

CONDITION

June 30, 2021

CEO Message

CVB Financial Corp. reported net earnings of $51.2 million for the quarter ended June 30, 2021, compared with $63.9 million for the first quarter of 2021 and $41.6 million for the second quarter of 2020. Our earnings in the second and first quarter of 2021 were impacted by $2 million and $19.5 million, respectively, in recapture of allowance for credit losses due to the improving economic forecast, while the second quarter of 2020 included a $11.5 million provision for credit losses due to the deterioration in the economy that was forecasted during the early days of the pandemic. We reported total assets of $15.54 billion at June 30, 2021. This represents an increase of $698.9 million, or 4.71%, from total assets of $14.84 billion at March 31, 2021 and was primarily due to an increase in cash resulting from growth in deposits and customer repurchase agreements of $662.3 million from March 31, 2021. We announced our 177th consecutive quarter of profitability, our 127th consecutive cash dividend paid to shareholders, and the second largest acquisition in our Bank's history.

On July 27, 2021, we entered into an agreement to merge with Suncrest Bank, headquartered in Visalia, California. Suncrest Bank was formed in 2008 and has approximately $1.3 billion in total assets with seven branch locations and two loan production offices throughout California's Central Valley. We expect the merger to be finalized in the fourth quarter of this year or the first quarter of 2022. The acquisition will deliver important benefits to our combined customers through our increased presence in the Central Valley and expansion into Sacramento, a sizable and important new market for us that presents significant growth opportunities going forward.

I'm proud of our associates and their dedication to the Bank and our customers over the past 15 months.Over 300 of our associates were involved in providing more than 6,000 Paycheck Protection Program loans, totaling over $1.5 billion, to our customers in support of their businesses. As of June 30, 2021, our customers have received forgiveness on over $860 million of these loans.

CitizensTrust, our wealth management division that provides trust, investment, and brokerage- related services, as well as financial, estate, and business succession planning, had approximately $3.25 billion in assets under management and administration, including $2.40 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, cbbank.com. Additional information about CVB Financial Corp. is available on the website under the "Investors" tab.

On behalf of our Board of Directors and all of our associates, we thank our customers and shareholders for their continued loyalty and support. Please stay healthy and safe.

Chief Executive Officer

CVB Financial Corp., Citizens Business Bank

#1 Best Bank	Five-Star	Super Premier
IN AMERICA	SUPERIOR RATING	PERFORMING BANK
Forbes, 2021	BauerFinancial, 2020	Findley Reports, 2020

Board of Directors
Raymond V. O'Brien III	George A. Borba
Chairman	Vice Chairman
David A. Brager	Kristina M. Leslie
Chief Executive Officer	Director
Stephen A. Del Guercio	Jane Olvera
Director	Director
Anna Kan	Hal W. Oswalt
Director	Director
Marshall V. Laitsch	Rodrigo Guerra, Jr.
Director	Director
Leadership Team
David A. Brager	Brian T. Mauntel
Chief Executive Officer	President
David C. Harvey	E. Allen Nicholson
EVP, Chief Operations Officer	EVP, Chief Financial Officer
R. Daniel Banis	David F. Farnsworth
EVP, CitizensTrust	EVP, Chief Credit Officer
Ted J. Dondanville	Yamynn De Angelis
EVP, Banking Division	EVP, Chief Risk Officer
Susan M. Mlot	Hector G. Gutierrez, Esq.
EVP, Head of Operations	EVP, Deputy Chief Credit Officer
Timothy B. Noone	Richard H. Wohl
EVP, Specialty Banking	EVP, General Counsel
Elsa I. Zavala	G. Larry Zivelonghi
EVP, Chief Information Security Officer	EVP, Dairy & Livestock Industries
Jeffrey S. Boyer	Gilbert W. Estrada
SVP, Los Angeles Region-North	SVP, Inland Empire Region
Donald E. Evenson	Richard M. Favor
SVP, Chief Investment Officer	SVP, Central Coast Region
Deborah G. Gallagher	Derrick I. Hong
SVP, SBA Group	SVP, Chief Audit Executive
Joyce Y. Kwon	David R. Klatt
SVP, Director of Human Resources	SVP, Chief Information Officer
Michael B. Mulcahy	Daniel Limon
SVP, Los Angeles Region-Metro	SVP, Specialty Lending Group
LaVon M. Short	Mark C. Richardson
SVP, Sales Support Group	SVP, Real Estate Banking
David S. Stong	Michael D. Stain
SVP, San Diego Region	SVP, Central Valley Region
Robert E. Zeltner
SVP, Orange County Region

127

consecutive quarters of cash dividends paid

177

consecutive quarters

of profitability

$51.2 million

net income

as of 6.30.21

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 $15 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 through over 50 banking centers and 3 trust office locations serving the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California.

Condensed Consolidated Balance Sheets

	(Dollars in thousands, except share amounts)		June 30,		December 31,
	(Unaudited)		2021		2020
Assets
	Cash and due from banks	$	153,475	$	122,305
	Interest-earning balances due from Federal Reserve		2,178,390		1,835,855
	Total cash and cash equivalents		2,331,865		1,958,160
	Interest-earning balances due from depository institutions		26,258		43,563
	Investment securities available-for-sale, at fair value
	(with amortized cost of $2,908,746 at June 30, 2021,
	and $2,344,174 at December 31, 2020)		2,932,021		2,398,923
	Investment securities held-to-maturity (with fair value of
	$1,055,523 at June 30, 2021, and $604,223 at December
31, 2020)		1,036,924		578,626
	Total investment securities		3,968,945		2,977,549
	Investment in stock of Federal Home Loan Bank (FHLB)		17,688		17,688
	Loans and lease finance receivables		8,071,310		8,348,808
	Allowance for credit losses		(69,342)		(93,692)
	Net loans and lease finance receivables		8,001,968		8,255,116
	Premises and equipment, net		49,914		51,144
	Bank owned life insurance (BOLI)		250,305		226,818
	Accrued interest receivable		35,124		31,306
	Intangibles		29,300		33,634
	Goodwill		663,707		663,707
	Other real estate owned (OREO)		-		3,392
	Income taxes		40,710		29,540
	Other assets		123,504		127,697
	Total assets	$	15,539,288	$ 14,419,314
Liabilities and Stockholders' Equity
	Liabilities:
	Deposits:
	Noninterest-bearing		$8,065,400		$7,455,387
	Interest-bearing		4,603,657		4,281,114
	Total deposits		12,669,057		11,736,501
	Customer repurchase agreements		578,207		439,406
	Other borrowings		-		5,000
	Deferred compensation		22,253		21,611
	Junior subordinated debentures		-		25,774
	Payable for securities purchased		110,430		60,113
	Other liabilities		104,267		122,919
	Total liabilities		13,484,214		12,411,324
Commitments and Contingencies
Stockholders' Equity
	Common stock, authorized, 225,000,000 shares without par;
	issued and outstanding 135,927,287 at June 30, 2021, and
	135,600,501 at December 31, 2020		1,214,882		1,211,780
	Retained earnings		826,941		760,861
	Accumulated other comprehensive income, net of tax		13,251		35,349
	Total stockholders' equity		2,055,074
			2,007,990
	Total liabilities and stockholders' equity	$	15,539,288	$	14,419,314

CVB Financial Corp. Citizens Business Bank Corporate Headquarters 909.980.4030 | cbbank.com

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)		Three Months Ended June 30,
(Unaudited)		2021			2020
Interest income:
Loans and leases, including fees	$	91,726		$	95,352
Investment securities:
Investment securities available-for-sale		9,410			8,449
Investment securities held-to-maturity		5,130			3,660
Total investment income		14,540
			12,109
Dividends from FHLB stock		283			214
Interest-earning deposits with other institutions		479			283
Total interest income		107,028			107,958
Interest expense:
Deposits		1,425			2,995
Borrowings and customer repurchase agreements		132			261
Junior subordinated debentures		83			133
Total interest expense		1,640
			3,389
Net interest income before (recapture of) provision
for credit losses		105,388			104,569
(Recapture of) provision for credit losses		(2,000)			11,500
Net interest income after (recapture of) provision
for credit losses		107,388			93,069
Noninterest income:
Service charges on deposit accounts		4,169			3,809
Trust and investment services		3,167			2,477
Bankcard services		533			405
BOLI income		1,240			1,683
Gain on OREO, net		48			-
Other		1,679			3,778
Total noninterest income		10,836			12,152
Noninterest expense:
Salaries and employee benefits		28,836			28,706
Occupancy and equipment		4,949			5,031
Professional services		2,248			2,368
Computer software expense		2,657			2,754
Marketing and promotion		1,799			1,255
Amortization of intangible assets		2,167			2,445
(Recapture of) provision for unfunded loan commitments		(1,000)			-
Other		4,889			3,839
Total noninterest expense		46,545			46,398
Earnings before income taxes		71,679
		58,823
Income taxes		20,500			17,192
Net earnings	$	51,179		$	41,631
Basic earnings per common share	$	0.38		$	0.31
Diluted earnings per common share	$	0.38		$	0.31
Cash dividends declared per common share	$	0.18		$	0.18

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