CVB Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CVB Financial Corp. has filed its 2023 10-K report, detailing financial performance and loan portfolio specifics.</b>

AI Summary

CVB FINANCIAL CORP (CVBF) filed a Annual Report (10-K) with the SEC on February 28, 2024. CVB Financial Corp. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The filing includes data related to various loan types, including Commercial Real Estate, Dairy Livestock and Agribusiness, and Consumer and Other Loans. Specific fair value measurement inputs (Level 1, Level 2, Level 3) and categories (Nonrecurring, Recurring) are detailed for different loan segments. The report references accounting standards updates, including ASU 2016-13 and ASU 2014-09. Information on Small Business Administration Loans and Paycheck Protection Program loans is also present.

Why It Matters

For investors and stakeholders tracking CVB FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of CVB Financial Corp.'s financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed breakdown of loan portfolios and fair value measurements offers insights into risk management and asset valuation strategies employed by the company.

Risk Assessment

Risk Level: medium — CVB FINANCIAL CORP shows moderate risk based on this filing. The filing contains extensive details on loan classifications, fair value measurements, and accounting standards, indicating a complex financial structure that requires careful analysis to fully understand potential risks.

Analyst Insight

Investors should review the detailed loan portfolio breakdown and fair value disclosures to assess credit quality and potential impacts of market fluctuations on the company's assets.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-28 — Filed As Of Date (Submission date)
• 6022 — Standard Industrial Classification (Industry code for Commercial Banks)

Key Players & Entities

• CVB FINANCIAL CORP (company) — FILER
• CVBF (company) — ticker symbol
• 2023-12-31 (date) — FISCAL YEAR END
• 2024-02-28 (date) — FILED AS OF DATE
• 701 N HAVEN AVE STE 300 (address) — BUSINESS ADDRESS STREET 1
• ONTARIO (location) — BUSINESS ADDRESS CITY
• CA (location) — BUSINESS ADDRESS STATE
• 91764 (postal_code) — BUSINESS ADDRESS ZIP

FAQ

Risk Factors

• Fair Value Measurements [medium — financial]: The company details fair value measurements for various financial assets, including different levels of input (Level 1, 2, 3) and types of measurements (recurring, nonrecurring).
• Loan Classifications [medium — financial]: The filing categorizes loans into segments such as Commercial Real Estate, Dairy Livestock and Agribusiness, and Consumer and Other Loans, with specific delinquency statuses mentioned.
• Accounting Standards Updates [low — regulatory]: References to accounting standards updates like ASU 2016-13 and ASU 2014-09 indicate adherence to evolving financial reporting requirements.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial overview for CVB Financial Corp.)

Fair Value Measurements

The value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (Details on fair value measurements indicate how the company values its assets and liabilities, impacting financial reporting and risk assessment.)

Key Financial Figures

• $16.02 billion — s of December 31, 2023, the Company had $16.02 billion in total consolidated assets, $8.82 bil
• $8.82 billion — 2 billion in total consolidated assets, $8.82 billion in net loans, $11.43 billion in deposit
• $11.43 billion — ted assets, $8.82 billion in net loans, $11.43 billion in deposits, and $2.08 billion in share
• $2.08 billion — loans, $11.43 billion in deposits, and $2.08 billion in shareholders' equity. The principa
• $16.03 billion — tem. At December 31, 2023, the Bank had $16.03 billion in assets, $8.82 billion in net loans,
• $11.48 billion — in assets, $8.82 billion in net loans, $11.48 billion in deposits, and $2.06 billion in total
• $2.06 billion — loans, $11.48 billion in deposits, and $2.06 billion in total equity. As of December 31, 2
• $1.4 billion — Visalia, California with approximately $1.4 billion in total assets, acquired at fair value
• $765.9 million — t the time of the acquisition, included $765.9 million of acquired net loans at fair value, $1
• $131.1 million — on of acquired net loans at fair value, $131.1 million of investment securities, and $9 millio
• $9 million — 1 million of investment securities, and $9 million in Bank-Owned Life Insurance ("BOLI").
• $102.1 million — e ("BOLI"). The acquisition resulted in $102.1 million of goodwill and $3.9 million in core de
• $3.9 million — ulted in $102.1 million of goodwill and $3.9 million in core deposit premium. Net cash proce
• $39.6 million — Net cash proceeds were used to fund the $39.6 million in cash paid to the former shareholders
• $1.2 billion — r value of liabilities assumed included $1.2 billion in total deposits. In connection with t

Filing Documents

• cvbf-20231231.htm (10-K) — 10176KB
• cvbf-ex21.htm (EX-21) — 5KB
• cvbf-ex23.htm (EX-23) — 4KB
• cvbf-ex31_1.htm (EX-31.1) — 12KB
• cvbf-ex31_2.htm (EX-31.2) — 12KB
• cvbf-ex32_1.htm (EX-32.1) — 6KB
• cvbf-ex32_2.htm (EX-32.2) — 7KB
• cvbf-ex97.htm (EX-97) — 68KB
• img180528852_0.jpg (GRAPHIC) — 32KB
• img180528852_1.jpg (GRAPHIC) — 206KB
• 0000950170-24-022216.txt (&nbsp;) — 40580KB
• cvbf-20231231.xsd (EX-101.SCH) — 2894KB
• cvbf-20231231_htm.xml (XML) — 11455KB

of Form 10-K

Part III of Form 10-K Auditor Firm Id: 185 Auditor Name: KPMG LLP Auditor Location: Irvine, California CVB FINANCIAL CORP. 2023 ANNUAL REPORT ON FORM 10-K TABLE OF CONTENTS PART I ITEM 1.

BUSINESS

BUSINESS 3 ITEM 1A.

RISK FACTORS

RISK FACTORS 19 ITEM 1B. UNRESOLVED STAFF COMMENTS 32 ITEM 1C. CYBERSECURITY 32 ITEM 2.

PROPERTIES

PROPERTIES 34 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 34 ITEM 4. MINE SAFETY DISCLOSURES 35 PART II ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHO10-LDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 35 ITEM 6. RESERVED 37 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 37 CRITICAL ACCOUNTING POLICIES 37 OVERVIEW 39 ANALYSIS OF THE RESULTS OF OPERATIONS 41 ANALYSIS OF FINANCIAL CONDITION 51 RISK MANAGEMENT 70 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 79 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 80 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 80 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 80 ITEM 9B. OTHER INFORMATION 82 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 82 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 83 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 83 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 83 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 84 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 84 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 85 ITEM 16. FORM 10-K SUMMARY 85

Forward-Looking Statements Safe Harbor

Forward-Looking Statements 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, capital and liquidity levels, loan and deposit growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, and 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

BUSINESS

ITEM 1. BUSINESS CVB Financial Corp. CVB Financial Corp. (referred to herein on an unconsolidated basis as "CVB" and on a consolidated basis as "we", "our" or the "Company") is a bank holding company incorporated in California on April 27, 1981 and registered with the Board of Governors of the Federal Reserve System ("Federal Reserve") under the Bank Holding Company Act of 1956, as amended (the "Bank Holding Company Act"). The Company commenced business on December 30, 1981 when, pursuant to a reorganization, it acquired all of the voting stock of Chino Valley Bank. On March 29, 1996, Chino Valley Bank changed its name to Citizens Business Bank ("CBB" or the "Bank"). The Bank is our principal asset. The Company has one inactive subsidiary, Chino Valley Bancorp. CVB's principal business is to serve as a holding company for the Bank and for other banking or banking related subsidiaries, which the Company may establish or acquire. CVB has not engaged in any other material activities to date. As a legal entity separate and distinct from its subsidiaries, CVB's principal source of funds is, and will continue to be, dividends paid by and other funds advanced from the Bank and capital raised directly by CVB. Legal limitations are imposed on the amount of dividends that may be paid and loans that may be made by the Bank to CVB. See "Item 1. Business — Regulation and Supervision — Dividends ." As of December 31, 2023, the Company had $16.02 billion in total consolidated assets, $8.82 billion in net loans, $11.43 billion in deposits, and $2.08 billion in shareholders' equity. The principal executive offices of CVB and the Bank are located at 701 North Haven Avenue, Suite 350, Ontario, California. Our phone number is (909) 980-4030. Citizens Business Bank The Bank commenced operations as a California state-chartered bank on August 9, 1974. The Bank's deposit accounts are insured under the Federal Deposit Insurance Act up to applicable limits. The Bank is not a memb

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