CVB Financial Corp. Reports Earnings for the Second Quarter 2024

Source: Nasdaq GlobeNewswire / 24 Jul 2024 16:45:47 America/New_York

Second Quarter 2024

Net Earnings of $50 million, or $0.36 per share
Return on Average Assets of 1.24%
Return on Average Tangible Common Equity of 15.51%
Net Interest Margin of 3.05%

ONTARIO, CA, July 24, 2024 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended June 30, 2024.

CVB Financial Corp. reported net income of $50.0 million for the quarter ended June 30, 2024, compared with $48.6 million for the first quarter of 2024 and $55.8 million for the second quarter of 2023. Diluted earnings per share were $0.36 for the second quarter, compared to $0.35 for the prior quarter and $0.40 for the same period last year. Net income of $50.0 million for the second quarter of 2024 produced an annualized return on average equity (“ROAE”) of 9.57%, an annualized return on average tangible common equity (“ROATCE”) of 15.51%, and an annualized return on average assets (“ROAA”) of 1.24%.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “For nearly 50 years, Citizens Business Bank has focused on benefiting our customers, communities, and our associates. The second quarter financial results represent our 189^th consecutive quarter of profitability and the Bank has maintained its steady and stable performance in the face of a challenging environment.”

Highlights for the Second Quarter of 2024

Average deposits increased $245.3 million compared to the first quarter of 2024
Noninterest-bearing deposits were 60% of total deposits for the second quarter of 2024
Net charge-offs were $31,000 for the second quarter of 2024
CET1 Ratio > 15% and TCE Ratio = 8.7% as of June 30, 2024
Noninterest expense decreased by $3.3 million compared to the first quarter of 2024
Efficiency Ratio improved to 45.1%, compared to 47.2% in the first quarter of 2024
Net interest margin of 3.05%, declined by 5 basis points compared to the first quarter of 2024
Dividend payout ratio was 56% for the second quarter of 2024

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
	(Dollars in thousands, except per share amounts)
Net interest income	$	110,849		$	112,461		$	119,535		$	223,310		$	245,263
Recapure of (provision for) credit losses		-			-			(500	)		-			(2,000	)
Noninterest income		14,424			14,113			12,656			28,537			25,858
Noninterest expense		(56,497	)		(59,771	)		(54,017	)		(116,268	)		(108,898	)
Income taxes		(18,741	)		(18,204	)		(21,904	)		(36,945	)		(45,183	)
Net earnings	$	50,035		$	48,599		$	55,770		$	98,634		$	115,040
Earnings per common share:
Basic	$	0.36		$	0.35		$	0.40		$	0.71		$	0.83
Diluted	$	0.36		$	0.35		$	0.40		$	0.71		$	0.82

NIM		3.05	%		3.10	%		3.22	%		3.07	%		3.33	%
ROAA		1.24	%		1.21	%		1.36	%		1.22	%		1.42	%
ROAE		9.57	%		9.31	%		11.03	%		9.44	%		11.58	%
ROATCE		15.51	%		15.13	%		18.39	%		15.32	%		19.46	%
Efficiency ratio		45.10	%		47.22	%		40.86	%		46.17	%		40.17	%

Net Interest Income
Net interest income was $110.8 million for the second quarter of 2024. This represented a $1.6 million, or 1.43%, decline from the first quarter of 2024, and an $8.7 million, or 7.27%, decrease from the second quarter of 2023. The quarter-over-quarter decrease in net interest income was due to a five basis point decline in net interest margin. The decline in net interest income compared to the second quarter of 2023 was due to a 17 basis point decrease in net interest margin and a $294.2 million decline in average earning assets.

Net Interest Margin
Our tax equivalent net interest margin was 3.05% for the second quarter of 2024, compared to 3.10% for the first quarter of 2024 and 3.22% for the second quarter of 2023. The five basis point decrease in our net interest margin compared to the first quarter of 2024, was the result of a seven basis point increase in our cost of funds, offset by a three basis point increase in our interest-earning asset yield. The three basis point increase in our interest-earning asset yield was due to the net impact of a seven basis point increase in the yield on investment securities, an increase in funds held at the Federal Reserve and a four basis point decrease in loan yields. The increase in investment yields was primarily due to the increased spread on pay-fixed swaps. The mix of earning assets was positively impacted by the increase in average funds held at the Federal Reserve, yielding 5.4%, which increased from 3% of earning assets in the prior quarter to nearly 5% in the second quarter of 2024. Our cost of funds increased in the second quarter to 1.38%, as our cost of deposits and customer repurchase agreements increased by 14 basis points to 0.87%. Non-maturity interest-bearing deposits also increased in cost from the prior quarter by 14 basis points, while time deposits increased on average by $286 million, with an increase to the cost of time deposits of 79 basis points. On average, borrowings decreased by $142 million compared to the first quarter, while continuing to have an average cost of 4.76%. The decrease in net interest margin of 17 basis points, compared to the second quarter of 2023, was primarily the result of a 55 basis point increase in cost of funds. This increase in cost of funds from the prior year was the result of a 53 basis point increase in the cost of deposits and an increase in the level of borrowings, which grew on average by $323 million. A 36 basis point increase in earning asset yields over the prior year quarter partially offset the increase in funding costs. Included in the higher earning asset yields, were higher loan yields, which grew from 5.01% for the second quarter of 2023 to 5.26% for the second quarter of 2024. Additionally, the yield on investment securities increased by 34 basis points from the prior year quarter, primarily due to the positive spread generated from the Company’s pay-fixed swaps, in which the Company receives daily SOFR and pays a weighted average fixed cost of approximately 3.8%.

Earning Assets and Deposits
On average, total earning assets were stable between the first and second quarter of 2024 but declined by $294.2 million when compared to the second quarter of 2023. Compared to the second quarter of 2023, the mix of assets changed modestly, with the average balance of investment securities decreasing by $482.6 million and declining from 38% to 35.5% of total earning assets. Conversely, the average amount of funds held at the Federal Reserve increased by $356.9 million, growing from 2.4% of total earning assets in the second quarter of 2023 to 4.9% for the second quarter of 2024. Noninterest-bearing deposits declined on average by $29.4 million, or 0.41%, from the first quarter of 2024 and interest-bearing deposits and customer repurchase agreements increased on average by $252.6 million, including an increase in average time deposits of $285.8 million. Compared to the second quarter of 2023, total deposits and customer repurchase agreements declined on average by $631.1 million, or 4.93%, including a decline of $670 million in noninterest-bearing deposits. Non-maturity interest-bearing deposits and customer repurchase agreements decreased by $398.5 million on average, while time deposits grew on average by $437.5 million. On average, noninterest-bearing deposits were 60.20% of total deposits during the most recent quarter, compared to 61.72% for the first quarter of 2024 and 63.58% for the second quarter of 2023.

		Three Months Ended
SELECTED FINANCIAL HIGHLIGHTS		June 30, 2024			March 31, 2024			June 30, 2023
		(Dollars in thousands)
Yield on average investment securities (TE)		2.71%			2.64%			2.37%
Yield on average loans		5.26%			5.30%			5.01%
Yield on average earning assets (TE)		4.37%			4.34%			4.01%
Cost of deposits		0.88%			0.74%			0.35%
Cost of funds		1.38%			1.31%			0.83%
Net interest margin (TE)		3.05%			3.10%			3.22%

*Average Earning Asset Mix*		Avg		% of Total	Avg		% of Total	Avg		% of Total
	Total investment securities	$	5,206,959	35.49%	$	5,357,708	36.59%	$	5,689,606	38.01%
	Interest-earning deposits with other institutions	716,916		4.89%	444,101		3.03%	353,610		2.36%
	Loans	8,731,587		59.51%	8,824,579		60.26%	8,892,413		59.41%
	Total interest-earning assets	14,673,474			14,644,400			14,967,661

Provision for Credit Losses
There was no provision for credit losses in the first and second quarter of 2024, compared to $500,000 in provision in the second quarter of 2023. Net charge-offs for the second quarter of 2024 were $31,000, compared to $4.0 million in the prior quarter. Projected loss rates were 0.95% at June 30, 2024, compared to 0.94% at March 31, 2024.

Noninterest Income
Noninterest income was $14.4 million for the second quarter of 2024, compared with $14.1 million for the first quarter of 2024 and $12.7 million for the second quarter of 2023. Second quarter income from Bank Owned Life Insurance (“BOLI”) decreased by $651,000 from the first quarter of 2024 and increased by $845,000 compared to the second quarter of 2023. We experienced $531,000 in death benefits that exceeded the asset value on certain policies in the first quarter of 2024 and approximately $800,000 in death benefits in the second quarter of 2023. There were no death benefits in the second quarter of 2024. As a result of the restructuring and enhancements in BOLI policies during the fourth quarter of 2023, the income derived from increases in the cash-surrender value of the policies was $1.6 million higher in the second quarter of 2024, when compared to the year-ago quarter.

Noninterest Expense
Noninterest expense for the second quarter of 2024 was $56.5 million, compared to $59.8 million for the first quarter of 2024 and $54.0 million for the second quarter of 2023. The $3.3 million quarter-over-quarter decrease was primarily due to the $3.0 million expense variance resulting from changes in the amount accrued as an estimate of the FDIC special assessment. In the first quarter of 2024, the FDIC revised and increased their initial loss estimate described in their final rule to implement a special assessment to recover the loss to the Deposit Insurance Fund (DIF) associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank by 25%, which resulted in the Company recording an additional $2.3 million for the FDIC special assessment in the first quarter. In the second quarter of 2024, the loss estimate was revised and reduced to reflect the initial amount assessed by the FDIC, resulting in a $700,000 reduction in this accrual. There was a $500,000 recapture of provision for unfunded loan commitments in the second quarter of 2024, compared to no provision or recapture in the first quarter of 2024. The $975,000 quarter-over-quarter decrease in staff related expenses included $1.5 million in lower payroll taxes, due to the timing of related payroll taxes, including the impact from the payment of bonuses in the first quarter of 2024. Software expense increased by $424,000 or 12% compared to the prior quarter. Marketing and promotion expense increased by $326,000 due to higher donations of $587,000 in the second quarter and professional services increased $471,000, including a $285,000 increase in legal expense, quarter-over-quarter.

The $2.5 million increase in noninterest expense year-over-year included increased staff related expenses of $1.9 million, or 5.60%. Marketing and promotion expense increased by $635,000 due to $673,000 in higher donations in the second quarter of 2024 and software expense increased $633,000, or 19% year-over-year. As a percentage of average assets, noninterest expense was 1.40% for the second quarter of 2024, compared to 1.48% for the first quarter of 2024 and 1.32% for the second quarter of 2023. The efficiency ratio for the second quarter of 2024 was 45.10%, compared to 47.22% for the first quarter of 2024 and 40.86% for the second quarter of 2023.

Income Taxes
Our effective tax rate for the quarter ended June 30, 2024 was 27.25%, compared with 28.20% for the same period of 2023. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHIGHTS

Assets
The Company reported total assets of $16.15 billion at June 30, 2024. This represented a decrease of $316.7 million, or 1.92%, from total assets of $16.47 billion at March 31, 2024. The decrease in assets included a $147.9 million decrease in interest-earning balances due from the Federal Reserve, a $116.0 million decrease in investment securities, and an $88.8 million decrease in net loans.

Total assets increased by $130.5 million, or 0.81%, from total assets of $16.02 billion at December 31, 2023. The increase in assets included a $559.9 million increase in interest-earning balances due from the Federal Reserve, offset by a $245.1 million decrease in investment securities, and a $219.0 million decrease in net loans.

Total assets at June 30, 2024 decreased by $333.0 million, or 2.02%, from total assets of $16.48 billion at June 30, 2023. The decrease in assets was primarily due to a $405.2 million decrease in investment securities and a $221.4 million decrease in net loans, partially offset by an increase of $282.7 million in interest-earning balances due from the Federal Reserve and a $57.0 million increase in the cash surrender value of BOLI.

Investment Securities and BOLI
Total investment securities were $5.18 billion at June 30, 2024, a decrease of $245.1 million, or 4.52% from December 31, 2023, and a decrease of $405.2 million, or 7.26%, from $5.58 billion at June 30, 2023.

At June 30, 2024, investment securities held-to-maturity (“HTM”) totaled $2.43 billion, a decrease of $24.7 million from the prior quarter end, a $34.7 million, or 1.41% decline from December 31, 2023, and a decrease of $82.8 million, or 3.30%, from June 30, 2023.

At June 30, 2024, investment securities available-for-sale (“AFS”) totaled $2.75 billion, inclusive of a pre-tax net unrealized loss of $487.9 million. AFS securities decreased by $91.3 million from the prior quarter end, by $210.3 million, or 7.12% from December 31, 2023 and decreased by $322.4 million, or 10.51%, from $3.07 billion at June 30, 2023. Pre-tax unrealized loss increased by $2.3 million from the end of the prior quarter, while increasing by $38.1 million from December 31, 2023 and declining by $9.8 million from June 30, 2023.

Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled $4.12 billion or approximately 80% of the total investment securities at June 30, 2024. 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, at June 30, 2024, we had $556.2 million of Government Agency securities that represent approximately 10.8% of the total investment securities.

Our combined AFS and HTM municipal securities totaled $486.5 million as of June 30, 2024, or 9.4% 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 16.08%, Minnesota at 11.05%, and California at 9.70%.

At June 30, 2024, the Company had $314.3 million of Bank Owned Life insurance (“BOLI”), compared to $308.7 million at December 31, 2023 and $257.3 million at June 30, 2023. The $57.0 million increase in value of BOLI, when compared to June 30, 2023, was primarily due to a restructuring of the Company’s life insurance policies at the end of 2023, including a $4.5 million write-down in value on surrender policies that was offset by a $10.9 million enhancement to cash surrender values, as well as additional policy purchases totaling $41 million. This restructuring has increased returns on our BOLI policies resulting in additional non-taxable noninterest income in 2024.

Loans
Total loans and leases, at amortized cost, of $8.68 billion at June 30, 2024 decreased by $88.9 million, or 1.01%, from March 31, 2024. The quarter-over quarter decrease in loans included decreases of $55.6 million in commercial real estate loans, $8.9 million in SFR mortgage loans, $6.9 million in commercial and industrial, $6.6 million in construction loans, and $7.8 million in consumer and other loans.

Total loans and leases, at amortized cost, decreased by $223.1 million, or 2.50%, from December 31, 2023. The decrease in total loans included decreases of $119.6 million in commercial real estate loans, $62.3 million in dairy & livestock and agribusiness loans, $14.5 million in construction loans, and $13.7 million in commercial and industrial loans.

Total loans and leases, at amortized cost, decreased by $225.6 million, or 2.53%, from June 30, 2023. The $225.6 million decrease included decreases of $239.2 million in commercial real estate loans, $16.6 million in construction loans, $14.2 million in SBA loans, $7.0 million in municipal lease financings, and $5.2 million in consumer and other loans, partially offset by increases of $52.3 million in dairy & livestock and agribusiness loans and $4.4 million in SFR mortgage loans.

Asset Quality
During the second quarter of 2024, we experienced credit charge-offs of $51,000 and total recoveries of $20,000, resulting in net charge-offs of $31,000. The allowance for credit losses (“ACL”) totaled $82.8 million at June 30, 2024 and March 31, 2024, compared to $87.0 million at June 30, 2023. At June 30, 2024, ACL as a percentage of total loans and leases outstanding was 0.95%. This compares to 0.94% at March 31, 2024 and 0.98% at December 31, 2023 and June 30, 2023.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

Nonperforming Assets and Delinquency Trends	June 30, 2024			March 31, 2024			June 30, 2023
	June 30, 2024			March 31, 2024			June 30, 2023
Nonperforming loans	(Dollars in thousands)
Commercial real estate	$	21,908		$	10,661		$	3,159
SBA	337			54			629
Commercial and industrial	2,712			2,727			2,039
Dairy & livestock and agribusiness	-			60			273
SFR mortgage	-			308			354
Consumer and other loans	-			-			-
Total	$	24,957		$	13,810		$	6,454
% of Total loans	0.29		%	0.16		%	0.07		%
OREO
Commercial real estate	$	-		$	-		$	-
Commercial and industrial	647			647			-
SFR mortgage	-			-			-
Total	$	647		$	647		$	-

Total nonperforming assets	$	25,604		$	14,457		$	6,454
% of Nonperforming assets to total assets	0.16		%	0.09		%	0.04		%

Past due 30-89 days (accruing)
Commercial real estate	$	43		$	19,781		$	532
SBA	-			408			-
Commercial and industrial	103			6			-
Dairy & livestock and agribusiness	-			-			555
SFR mortgage	-			-			-
Consumer and other loans	-			-			-
Total	$	146		$	20,195		$	1,087
% of Total loans	0.00		%	0.23		%	0.01		%

Classified Loans	$	124,728		$	103,080		$	77,834

The $11.1 million increase in nonperforming loans from March 31, 2024 was primarily due to the addition of three nonperforming commercial real estate loans totaling $10.9 million. Classified loans are loans that are graded “substandard” or worse. Classified loans increased $21.6 million quarter-over-quarter, primarily due to the addition of five classified dairy & livestock and agribusiness loans totaling $12.5 million and one classified commercial real estate loan of $7.6 million.

Deposits & Customer Repurchase Agreements
Deposits of $11.79 billion and customer repurchase agreements of $268.8 million totaled $12.06 billion at June 30, 2024. This represented a net decrease of $111.5 million compared to March 31, 2024. Total deposits at June 30, 2024 included $400 million in brokered time deposits. Deposits and customer repurchases increased on average from the prior quarter by $223.2 million, due to the growth in brokered deposits. Total deposits and customer repurchase agreements increased $353.9 million, or 3.02% when compared to $11.71 billion at December 31, 2023 and decreased $790.7 million, or 6.15% when compared to $12.85 billion at June 30, 2023.

Noninterest-bearing deposits were $7.09 billion at June 30, 2024, a decrease of $22.7 million, or 0.32%, when compared to $7.11 billion at March 31, 2024. Noninterest-bearing deposits decreased by $116.1 million, or 1.61% when compared to $7.21 billion at December 31, 2023, and decreased by $788.7 million, or 10.01% when compared to $7.88 billion at June 30, 2023. At June 30, 2024, noninterest-bearing deposits were 60.13% of total deposits, compared to 59.80% at March 31, 2024, 63.03% at December 31, 2023, and 63.55% at June 30, 2023.

Borrowings
As of June 30, 2024, total borrowings of $1.8 billion consisted of $1.3 billion from the Federal Reserve’s Bank Term Funding Program, at a cost of 4.76%, maturing in January of 2025, and $500 million of FHLB advances. The FHLB advances include maturities of $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027.

Capital
The Company’s total equity was $2.11 billion at June 30, 2024. This represented an overall increase of $34.5 million from total equity of $2.08 billion at December 31, 2023. Increases to equity included $98.6 million in net earnings, that were partially offset by $55.9 million in cash dividends and a $10.8 million decrease in other comprehensive income. We engaged in no stock repurchases during the first half of 2024. Our tangible book value per share at June 30, 2024 was $9.55.

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	June 30, 2024	December 31, 2023	June 30, 2023

Tier 1 leverage capital ratio	4.0%	10.5%	10.3%	9.8%
Common equity Tier 1 capital ratio	7.0%	15.3%	14.6%	14.1%
Tier 1 risk-based capital ratio	8.5%	15.3%	14.6%	14.1%
Total risk-based capital ratio	10.5%	16.1%	15.5%	14.9%

Tangible common equity ratio		8.7%	8.5%	7.8%

CitizensTrust
As of June 30, 2024, CitizensTrust had approximately $4.3 billion in assets under management and administration, including $3.0 billion in assets under management. Revenues were $3.4 million for the second quarter of 2024, compared to $3.3 million for the same period of 2023. 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 approximately $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 three 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. PDT/10:30 a.m. EDT on Thursday, July 25, 2024 to discuss the Company’s second quarter 2024 financial results. The conference call can be accessed live by registering at:
https://register.vevent.com/register/BI4328ad5286e54a1c985328a9dd4a9a98

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 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, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, 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: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target and key personnel into our operations; the timely development of competitive 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 banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; 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; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer 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 or retain deposits or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment 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; 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, and their effects on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; 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 2023 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 earnings release 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 earnings release 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)


	June 30, 2024			December 31, 2023			June 30, 2023

Cash and due from banks	$	174,454		$	171,396		$	231,316
Interest-earning balances due from Federal Reserve		669,740			109,889			387,039
Total cash and cash equivalents		844,194			281,285			618,355
Interest-earning balances due from depository institutions		7,345			8,216			30,478
Investment securities available-for-sale		2,745,796			2,956,125			3,068,151
Investment securities held-to-maturity		2,429,886			2,464,610			2,512,707
Total investment securities		5,175,682			5,420,735			5,580,858
Investment in stock of Federal Home Loan Bank (FHLB)		18,012			18,012			29,484
Loans and lease finance receivables		8,681,846			8,904,910			8,907,397
Allowance for credit losses		(82,786	)		(86,842	)		(86,967	)
Net loans and lease finance receivables		8,599,060			8,818,068			8,820,430
Premises and equipment, net		43,232			44,709			45,518
Bank owned life insurance (BOLI)		314,329			308,706			257,348
Intangibles		12,416			15,291			18,303
Goodwill		765,822			765,822			765,822
Other assets		371,403			340,149			317,948
Total assets	$	16,151,495		$	16,020,993		$	16,484,544
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,090,095		$	7,206,175		$	7,878,810
Investment checking		515,930			552,408			574,817
Savings and money market		3,409,320			3,278,664			3,627,858
Time deposits		774,980			396,395			316,036
Total deposits		11,790,325			11,433,642			12,397,521
Customer repurchase agreements		268,826			271,642			452,373
Other borrowings		1,800,000			2,070,000			1,495,000
Other liabilities		179,917			167,737			138,283
Total liabilities		14,039,068			13,943,021			14,483,177
Stockholders' Equity
Stockholders' equity		2,446,755			2,401,541			2,346,243
Accumulated other comprehensive loss, net of tax		(334,328	)		(323,569	)		(344,876	)
Total stockholders' equity		2,112,427			2,077,972			2,001,367
Total liabilities and stockholders' equity	$	16,151,495		$	16,020,993		$	16,484,544

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Assets
Cash and due from banks	$	162,724		$	162,049		$	178,405		$	162,387		$	176,776
Interest-earning balances due from Federal Reserve		704,023			433,421			347,161			568,722			192,913
Total cash and cash equivalents		866,747			595,470			525,566			731,109			369,689
Interest-earning balances due from depository institutions		12,893			10,680			6,449			11,786			8,704
Investment securities available-for-sale		2,764,096			2,900,097			3,162,917			2,832,097			3,189,384
Investment securities held-to-maturity		2,442,863			2,457,611			2,526,689			2,450,237			2,536,580
Total investment securities		5,206,959			5,357,708			5,689,606			5,282,334			5,725,964
Investment in stock of FHLB		18,012			18,012			32,032			18,012			30,459
Loans and lease finance receivables		8,731,587			8,824,579			8,892,413			8,778,083			8,927,672
Allowance for credit losses		(82,815	)		(85,751	)		(86,508	)		(84,283	)		(85,833	)
Net loans and lease finance receivables		8,648,772			8,738,828			8,805,905			8,693,800			8,841,839
Premises and equipment, net		43,624			44,380			45,629			44,002			45,942
Bank owned life insurance (BOLI)		312,645			309,609			257,428			311,127			256,786
Intangibles		13,258			14,585			19,298			13,922			20,136
Goodwill		765,822			765,822			765,822			765,822			765,822
Other assets		390,834			350,319			308,789			370,575			319,885
Total assets	$	16,279,566		$	16,205,413		$	16,456,524		$	16,242,489		$	16,385,226
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,153,315		$	7,182,718		$	7,823,496		$	7,168,016		$	7,957,357
Interest-bearing		4,728,864			4,454,135			4,481,766			4,591,500			4,551,121
Total deposits		11,882,179			11,636,853			12,305,262			11,759,516			12,508,478
Customer repurchase agreements		287,128			309,272			495,179			298,200			522,813
Other borrowings		1,850,330			1,991,978			1,526,958			1,921,154			1,250,863
Other liabilities		157,463			168,442			101,417			162,953			99,960
Total liabilities		14,177,100			14,106,545			14,428,816			14,141,823			14,382,114
Stockholders' Equity
Stockholders' equity		2,456,945			2,432,075			2,353,975			2,444,510			2,343,358
Accumulated other comprehensive loss, net of tax		(354,479	)		(333,207	)		(326,267	)		(343,844	)		(340,246	)
Total stockholders' equity		2,102,466			2,098,868			2,027,708			2,100,666			2,003,112
Total liabilities and stockholders' equity	$	16,279,566		$	16,205,413		$	16,456,524		$	16,242,489		$	16,385,226

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)


	Three Months Ended							Six Months Ended
	June 30, 2024			March 31, 2024		June 30, 2023		June 30, 2024			June 30, 2023
Interest income:
Loans and leases, including fees	$	114,200		$	116,349	$	110,990	$	230,549		$	219,384
Investment securities:
Investment securities available-for-sale		21,225			21,446		19,356		42,671			38,952
Investment securities held-to-maturity		13,445			13,402		13,740		26,847			27,696
Total investment income		34,670			34,848		33,096		69,518			66,648
Dividends from FHLB stock		377			419		483		796			832
Interest-earning deposits with other institutions		9,825			6,073		4,670		15,898			5,161
Total interest income		159,072			157,689		149,239		316,761			292,025
Interest expense:
Deposits		25,979			21,366		10,765		47,345			16,130
Borrowings and customer repurchase agreements		22,244			23,862		18,939		46,106			30,632
Total interest expense		48,223			45,228		29,704		93,451			46,762
Net interest income before provision for (recapture of) credit losses		110,849			112,461		119,535		223,310			245,263
Provision for (recapture of) credit losses		-			-		500		-			2,000
Net interest income after provision for (recapture of) credit losses		110,849			112,461		119,035		223,310			243,263
Noninterest income:
Service charges on deposit accounts		5,117			5,036		4,838		10,153			10,182
Trust and investment services		3,428			3,224		3,315		6,652			6,229
Other		5,879			5,853		4,503		11,732			9,447
Total noninterest income		14,424			14,113		12,656		28,537			25,858
Noninterest expense:
Salaries and employee benefits		35,426			36,401		33,548		71,827			68,795
Occupancy and equipment		5,772			5,565		5,517		11,337			10,967
Professional services		2,726			2,255		2,562		4,981			4,258
Computer software expense		3,949			3,525		3,316		7,474			6,724
Marketing and promotion		1,956			1,630		1,321		3,586			3,036
Amortization of intangible assets		1,437			1,438		1,719		2,875			3,439
(Recapture of) provision for unfunded loan commitments		(500	)		-		400		(500	)		900
Other		5,731			8,957		5,634		14,688			10,779
Total noninterest expense		56,497			59,771		54,017		116,268			108,898
Earnings before income taxes		68,776			66,803		77,674		135,579			160,223
Income taxes		18,741			18,204		21,904		36,945			45,183
Net earnings	$	50,035		$	48,599	$	55,770	$	98,634		$	115,040

Basic earnings per common share	$	0.36		$	0.35	$	0.40	$	0.71		$	0.83
Diluted earnings per common share	$	0.36		$	0.35	$	0.40	$	0.71		$	0.82
Cash dividends declared per common share	$	0.20		$	0.20	$	0.20	$	0.40		$	0.40

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Interest income - tax equivalent (TE)	$	159,607		$	158,228		$	149,785		$	317,835		$	293,117
Interest expense		48,223			45,228			29,704			93,451			46,762
Net interest income - (TE)	$	111,384		$	113,000		$	120,081		$	224,384		$	246,355

Return on average assets, annualized		1.24	%		1.21	%		1.36	%		1.22	%		1.42	%
Return on average equity, annualized		9.57	%		9.31	%		11.03	%		9.44	%		11.58	%
Efficiency ratio [1]		45.10	%		47.22	%		40.86	%		46.17	%		40.17	%
Noninterest expense to average assets, annualized		1.40	%		1.48	%		1.32	%		1.44	%		1.34	%
Yield on average loans		5.26	%		5.30	%		5.01	%		5.28	%		4.95	%
Yield on average earning assets (TE)		4.37	%		4.34	%		4.01	%		4.36	%		3.96	%
Cost of deposits		0.88	%		0.74	%		0.35	%		0.81	%		0.26	%
Cost of deposits and customer repurchase agreements		0.87	%		0.73	%		0.35	%		0.80	%		0.26	%
Cost of funds		1.38	%		1.31	%		0.83	%		1.34	%		0.66	%
Net interest margin (TE)		3.05	%		3.10	%		3.22	%		3.07	%		3.33	%
[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.

Tangible Common Equity Ratio (TCE) [2]
CVB Financial Corp. Consolidated		8.68	%		8.33	%		7.75	%
Citizens Business Bank		8.57	%		8.23	%		7.67	%
[2] (Capital - [GW+Intangibles])/(Total Assets - [GW+Intangibles])

Weighted average shares outstanding
Basic		138,583,510			138,428,596			138,330,131			138,419,379			138,420,067
Diluted		138,669,058			138,603,324			138,383,239			138,561,481			138,556,510
Dividends declared	$	28,018		$	27,886		$	27,787		$	55,904		$	55,794
Dividend payout ratio [3]		56.00	%		57.38	%		49.82	%		56.68	%		48.50	%
[3] Dividends declared on common stock divided by net earnings.

Number of shares outstanding - (end of period)		139,677,162			139,641,884			139,343,284
Book value per share	$	15.12		$	14.94		$	14.36
Tangible book value per share	$	9.55		$	9.36		$	8.74

	June 30, 2024			December 31, 2023			June 30, 2023

Nonperforming assets:
Nonaccrual loans	$	24,957		$	21,302		$	6,454
Other real estate owned (OREO), net		647			-			-
Total nonperforming assets	$	25,604		$	21,302		$	6,454
Modified loans/performing troubled debt restructured loans (TDR) [4]	$	26,363		$	9,460		$	3,307

[4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.

Percentage of nonperforming assets to total loans outstanding and OREO		0.29	%		0.24	%		0.07	%
Percentage of nonperforming assets to total assets		0.16	%		0.13	%		0.04	%
Allowance for credit losses to nonperforming assets		323.33	%		407.67	%		1347.49	%

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Allowance for credit losses:
Beginning balance	$	82,817		$	86,842		$	86,540		$	86,842		$	85,117
Total charge-offs		(51	)		(4,267	)		(88	)		(4,318	)		(198	)
Total recoveries on loans previously charged-off		20			242			15			262			48
Net recoveries (charge-offs)		(31	)		(4,025	)		(73	)		(4,056	)		(150	)
Provision for (recapture of) credit losses		-			-			500			-			2,000
Allowance for credit losses at end of period	$	82,786		$	82,817		$	86,967		$	82,786		$	86,967

Net recoveries (charge-offs) to average loans		-0.000	%		-0.046	%		-0.001	%		-0.046	%		-0.002	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in millions)

Allowance for Credit Losses by Loan Type

	June 30, 2024					December 31, 2023					June 30, 2023
	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	$	69.4		1.04	%	$	69.5		1.02	%	$	67.9		0.98	%
Construction		0.8		1.51	%		1.3		1.91	%		1.2		1.69	%
SBA		2.5		0.93	%		2.7		0.99	%		2.7		0.95	%
Commercial and industrial		5.1		0.53	%		9.1		0.94	%		9.1		0.95	%
Dairy & livestock and agribusiness		3.8		1.08	%		3.1		0.75	%		5.0		1.66	%
Municipal lease finance receivables		0.2		0.26	%		0.2		0.29	%		0.3		0.35	%
SFR mortgage		0.5		0.19	%		0.5		0.20	%		0.4		0.17	%
Consumer and other loans		0.5		1.07	%		0.4		0.85	%		0.4		0.73	%

Total	$	82.8		0.95	%	$	86.8		0.98	%	$	87.0		0.98	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

Quarterly Common Stock Price

		2024					2023						2022
Quarter End	High		Low			High			Low			High			Low
March 31,	$	20.45	$	15.95		$	25.98		$	16.34		$	24.37		$	21.36
June 30,	$	17.91	$	15.71		$	16.89		$	10.66		$	25.59		$	22.37
September 30,	$	-	$	-		$	19.66		$	12.89		$	28.14		$	22.63
December 31,	$	-	$	-		$	21.77		$	14.62		$	29.25		$	25.26

Quarterly Consolidated Statements of Earnings

			Q2			Q1			Q4			Q3			Q2
				2024			2024			2023			2023			2023
Interest income
Loans and leases, including fees			$	114,200		$	116,349		$	115,721		$	113,190		$	110,990
Investment securities and other				44,872			41,340			42,357			43,037			38,249
Total interest income				159,072			157,689			158,078			156,227			149,239
Interest expense
Deposits				25,979			21,366			18,888			16,517			10,765
Borrowings and customer repurchase agreements				22,244			23,862			19,834			16,339			18,939
Total interest expense				48,223			45,228			38,722			32,856			29,704
Net interest income before (recapture of) provision for credit losses				110,849			112,461			119,356			123,371			119,535
(Recapture of) provision for credit losses				-			-			(2,000	)		2,000			500
Net interest income after (recapture of) provision for credit losses				110,849			112,461			121,356			121,371			119,035

Noninterest income				14,424			14,113			19,163			14,309			12,656
Noninterest expense				56,497			59,771			65,930			55,058			54,017
Earnings before income taxes				68,776			66,803			74,589			80,622			77,674
Income taxes				18,741			18,204			26,081			22,735			21,904
Net earnings			$	50,035		$	48,599		$	48,508		$	57,887		$	55,770

Effective tax rate				27.25	%		27.25	%		34.97	%		28.20	%		28.20	%

Basic earnings per common share			$	0.36		$	0.35		$	0.35		$	0.42		$	0.40
Diluted earnings per common share			$	0.36		$	0.35		$	0.35		$	0.42		$	0.40

Cash dividends declared per common share			$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

Cash dividends declared			$	28,018		$	27,886		$	27,945		$	27,901		$	27,787

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Loan Portfolio by Type
	June 30,			March 31,			December 31,			September 30,			June 30,
		2024			2024			2023			2023			2023

Commercial and industrial	$	6,664,925		$	6,720,538		$	6,784,505		$	6,843,059		$	6,904,095
Construction		52,227			58,806			66,734			63,022			68,836
SBA		267,938			268,320			270,619			283,124			278,904
SBA - PPP		1,757			2,249			2,736			3,233			5,017
Commercial and industrial		956,184			963,120			969,895			938,064			956,242
Dairy & livestock and agribusiness		350,562			351,624			412,891			351,463			298,247
Municipal lease finance receivables		70,889			72,032			73,590			75,621			77,867
SFR mortgage		267,593			276,475			269,868			268,171			263,201
Consumer and other loans		49,771			57,549			54,072			51,875			54,988
Gross loans, at amortized cost		8,681,846			8,770,713			8,904,910			8,877,632			8,907,397
Allowance for credit losses		(82,786	)		(82,817	)		(86,842	)		(88,995	)		(86,967	)
Net loans	$	8,599,060		$	8,687,896		$	8,818,068		$	8,788,637		$	8,820,430



Deposit Composition by Type and Customer Repurchase Agreements

	June 30,			March 31,			December 31,			September 30,			June 30,
		2024			2024			2023			2023			2023

Noninterest-bearing	$	7,090,095		$	7,112,789		$	7,206,175		$	7,586,649		$	7,878,810
Investment checking		515,930			545,066			552,408			560,223			574,817
Savings and money market		3,409,320			3,561,512			3,278,664			3,906,187			3,627,858
Time deposits		774,980			675,554			396,395			305,727			316,036
Total deposits		11,790,325			11,894,921			11,433,642			12,358,786			12,397,521

Customer repurchase agreements		268,826			275,720			271,642			269,552			452,373
Total deposits and customer repurchase agreements	$	12,059,151		$	12,170,641		$	11,705,284		$	12,628,338		$	12,849,894

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Nonperforming Assets and Delinquency Trends
	June 30,			March 31,			December 31,			September 30,				June 30,
		2024			2024			2023			2023				2023
Nonperforming loans:
Commercial real estate	$	21,908		$	10,661		$	15,440		$	3,655			$	3,159
Construction		-			-			-			-				-
SBA		337			54			969			1,050				629
Commercial and industrial		2,712			2,727			4,509			4,672				2,039
Dairy & livestock and agribusiness		-			60			60			243				273
SFR mortgage		-			308			324			339				354
Consumer and other loans		-			-			-			4				-
Total	$	24,957		$	13,810		$	21,302		$	9,963		[1]	$	6,454
% of Total loans		0.29	%		0.16	%		0.24	%		0.11	%			0.07	%

Past due 30-89 days (accruing):
Commercial real estate	$	43		$	19,781		$	300		$	136			$	532
Construction		-			-			-			-				-
SBA		-			408			108			-				-
Commercial and industrial		103			6			12			-				-
Dairy & livestock and agribusiness		-			-			-			-				555
SFR mortgage		-			-			201			-				-
Consumer and other loans		-			-			18			-				-
Total	$	146		$	20,195		$	639		$	136			$	1,087
% of Total loans		0.00	%		0.23	%		0.01	%		0.00	%			0.01	%

OREO:
Commercial real estate	$	-		$	-		$	-		$	-			$	-
SBA		-			-			-			-				-
Commercial and industrial		647			647			-			-				-
SFR mortgage		-			-			-			-				-
Total	$	647		$	647		$	-		$	-			$	-
Total nonperforming, past due, and OREO	$	25,750		$	34,652		$	21,941		$	10,099			$	7,541
% of Total loans		0.30	%		0.40	%		0.25	%		0.11	%			0.08	%

[1] Includes $2.6 million of nonaccrual loans past due 30-89 days.

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Regulatory Capital Ratios



		CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer	June 30, 2024	December 31, 2023	June 30, 2023

Tier 1 leverage capital ratio	4.0%	10.5%	10.3%	9.8%
Common equity Tier 1 capital ratio	7.0%	15.3%	14.6%	14.1%
Tier 1 risk-based capital ratio	8.5%	15.3%	14.6%	14.1%
Total risk-based capital ratio	10.5%	16.1%	15.5%	14.9%

Tangible common equity ratio		8.7%	8.5%	7.8%

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 June 30, 2024, December 31, 2023 and June 30, 2023.

		June 30, 2024			December 31, 2023			June 30, 2023
		(Dollars in thousands, except per share amounts)

	Stockholders' equity	$	2,112,427		$	2,077,972		$	2,001,367
	Less: Goodwill		(765,822	)		(765,822	)		(765,822	)
	Less: Intangible assets		(12,416	)		(15,291	)		(18,303	)
	Tangible book value	$	1,334,189		$	1,296,859		$	1,217,242
	Common shares issued and outstanding		139,677,162			139,344,981			139,343,284
	Tangible book value per share	$	9.55		$	9.31		$	8.74

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										Six Months Ended
			June 30,			March 31,			June 30,			June 30,			June 30,
				2024			2024			2023			2024			2023
			(Dollars in thousands)

	Net Income		$	50,035		$	48,599		$	55,770		$	98,634		$	115,040
	Add: Amortization of intangible assets			1,437			1,438			1,719			2,875			3,439
	Less: Tax effect of amortization of intangible assets [1]			(425	)		(425	)		(508	)		(850	)		(1,017	)
	Tangible net income		$	51,047		$	49,612		$	56,981		$	100,659		$	117,462

	Average stockholders' equity		$	2,102,466		$	2,098,868		$	2,027,708		$	2,100,666		$	2,003,112
	Less: Average goodwill			(765,822	)		(765,822	)		(765,822	)		(765,822	)		(765,822	)
	Less: Average intangible assets			(13,258	)		(14,585	)		(19,298	)		(13,922	)		(20,136	)
	Average tangible common equity		$	1,323,386		$	1,318,461		$	1,242,588		$	1,320,922		$	1,217,154

	Return on average equity, annualized [2]			9.57	%		9.31	%		11.03	%		9.44	%		11.58	%
	Return on average tangible common equity, annualized [2]			15.51	%		15.13	%		18.39	%		15.32	%		19.46	%


	[1] Tax effected at respective statutory rates.
	[2] Annualized where applicable.

CVB Financial Corp. Reports Earnings for the Second Quarter 2024

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