CVB Financial
Annual Report 2017

Plain-text annual report

2017 ANNUAL REPORT PERFORMANCE SCORECARD $104.4 Million Net Income 163 Consecutive Quarters of Profitability 113 Consecutive Quarters of Cash Dividends Paid Highest in CVBF History Over 40 Years Over 28 Years Ranked TOP 5 Bank in the U.S. Bank Director, 2017 Five-Star Superior Rating BauerFinancial, 2017 Super Premier Performing Bank Findley Reports, 2017 Four Consecutive Years 35 Consecutive Quarters Over 22 Years CONTENTS 2017 in Review Vision and Mission Board of Directors Our Story Financial Highlights Valued Customers Services 4 6 7 8 9 13 27 Community Commitment 30 Leadership Team Financial Summary 32 35 Locations 40 Corporate Information 42 333 TO OUR SHAREHOLDERS, CUSTOMERS, AND ASSOCIATES 2017 was a historic year for our Bank. We achieved record earnings of $104.4 million, delivered our 163rd consecutive quarter of profitability, and paid our 113th consecutive quarterly cash dividend to shareholders. Citizens Business Bank now consists of 51 banking centers, three trust office locations, and over $8.2 billion in total assets. We also own two 50,000 square foot buildings in the greater Ontario area, a mere two miles apart. These buildings house administration and all support departments including Credit, Human Resources, Marketing, Centralized Operations, Technology, and more. The close proximity of these buildings promotes efficiency and teamwork. Looking back at the previous 12 months, the Bank was once again recognized by Forbes as one of the Best Banks in America and was named a Top 5 Bank for the fourth consecutive year by Bank Director. BauerFinancial also awarded us a Five-Star rating for the 35th consecutive quarter. The Bank reported record earnings of $104.4 million. Total assets increased $196.9 million from 2016, while total loans grew $435.6 million. Total deposits and customer repurchase agreements increased by $187.9 million. Credit quality and profit margins also improved year-over-year. In terms of expansion, we completed the acquisition of Valley Business Bank in March of 2017. Valley Business Bank provided over $400 million in new assets and significant additional opportunities for future growth in the Fresno, Visalia, and Tulare markets. New locations were opened in San Diego and Stockton to expand our geographic presence. We also added a new Director to our Board. Rodrigo Guerra, Jr. joined CVBF in July 2017. His business acumen and legal expertise has already provided valuable insight and will help continue our tradition of excellence. 4 In early 2018, we announced an agreement to acquire Community Bank, headquartered in Pasadena, California. Community Bank was founded in 1945 and has over $3.7 billion in total assets. Community Bank has a similar business and community banking model with a strong corporate culture focused on outstanding customer service. We are excited to join forces with a successful business bank which provides an opportunity to increase our market share in existing locations and to expand our geographic footprint. We anticipate this merger to be completed in the third quarter of 2018. Our goals and aspirations for 2018 are many, but we remain focused on reinforcing our five core values: financial strength, superior people, customer focus, cost effective operation, and having fun. On behalf of our Board of Directors, we thank our customers for their ongoing loyalty, our associates for their dedication and hard work, and our shareholders for their continued support. Christopher D. Myers President and Chief Executive Officer CVB Financial Corp. Citizens Business Bank Raymond V. O’Brien III Chairman of the Board CVB Financial Corp. 5 VISION Citizens Business Bank will strive to become the premier financial services company operating throughout the state of California, serving the comprehensive financial needs of successful small to medium-sized businesses and their owners. MISSION The mission of Citizens Business Bank is to achieve superior performance and rank in the top ten percent of all financial institutions in the nation in return on equity and return on assets. This will be achieved by delivering the finest in financial products and services through relationship banking commitments with businesses and professionals in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. It will be supported by an unqualified commitment to our five core values of financial strength, superior people, customer focus, cost-effective operation, and having fun. 6 BOARD OF DIRECTORS Our continued strength, stability, and success as a financial services company could not be achieved without the leadership, support, and guidance from our Board of Directors. Their combined experience, knowledge, and commitment allow us to meet the needs of the businesses we serve and their owners throughout California. Raymond V. O’Brien III Chairman George A. Borba Vice Chairman Christopher D. Myers President & Chief Executive Officer Kristina M. Leslie Director Stephen A. Del Guercio Director Hal W. Oswalt Director Anna Kan Director Rodrigo Guerra, Jr. Director 7 7 OUR STORY The Bank opened in August of 1974, with a visionary dairy farmer, George A. Borba Sr., and a group of local business leaders, family members, and friends who cared deeply about their community and had a clear vision of how they wanted to make an impact: helping business owners discover, build upon, and enhance the value of their companies. Early on, we took a customer-first approach to doing business. But it wasn’t just about putting our customers first. It was about creating long-lasting, genuinely enriching business relationships. To this day, many of our customers have banked with us for more than thirty years. We believe that means something. Long-term relationships are the foundation of any successful business. We strive to build more and more of these relationships by treating our customers the way we would want to be treated. Our customers’ success is our success. We want our business customers to grow and prosper, and we find meaning in our ability to enable and enhance their entrepreneurial opportunities. Today, our customer commitment, growth-oriented focus and vision remain unchanged. We put our customers first. We help our customers grow and prosper. We strive to build long-standing relationships. Along the way, we changed our name from Chino Valley Bank to Citizens Business Bank and have grown to over $8 billion in assets, with over 50 banking locations, and three trust offices serving the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. 8 FINANCIAL HIGHLIGHTS At year end, we reported our 163rd consecutive quarter of profitability and paid our 113th consecutive quarterly cash dividend to shareholders. Our focus on improving key financial metrics, including profitability and asset quality, is paramount. 9 9 9 $8,073,707 $8,270,586 $7,671,200 $7,377,920 $6,664,967 $4,830,631 $4,395,064 $4,016,937 $3,817,067 $3,546,231 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Total Assets (Dollars in thousands) 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Total Loans (Dollars in thousands) Net of deferred loan fees and discounts $3,846,436 $3,673,541 $3,250,174 $2,866,365 $2,562,980 $7,100,626 $6,912,708 $6,607,964 $6,168,285 $5,533,882 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Noninterest Bearing Deposits (Dollars in thousands) 10 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Total Deposits (Dollars in thousands) Includes customer repurchase agreements $37,374 $36,053 $34,002 $33,636 $33,675 $104,021 $101,429 $99,145 $104,411 $95,608 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Noninterest Income (Dollars in thousands) Excludes gain on sale of loans, securities, branches, and gain on eminent domain, as well as FDIC loss sharing asset changes. 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Net Earnings (Dollars in thousands) 47.21% 46.25% 46.72% 44.27% 43.84% 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Efficiency Ratio* *Noninterest expense, excluding debt termination expense, divided by net interest income before provision for loan losses plus noninterest income. 11 $59,483 $51,849 $51,040 $42,356 $40,469 $0.98 $0.93 $0.94 $0.95 $0.91 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Dividends Declared (Dollars in thousands) 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Diluted Earnings Per Share $1,069,266 $990,862 $923,399 $878,109 $771,887 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 Shareholders’ Equity (Dollars in thousands) 12 VALUED CUSTOMERS Our unwavering commitment to personal service and the success of each and every customer remains unchanged. We put our customers first by providing outstanding service and building long-term relationships. We take the time to understand the opportunities and challenges our customers face to help them thrive in today’s complex environment. “We thank our customers for being a part of this annual report and for their continued business.” 131313 Gino Roncelli Founder and Chairman of the Board Riley K. Cole Chief Executive Officer Christopher Cole President and Chief Operating Officer Roncelli Plastics, located in Monrovia, California, specializes in precision fabrication, CNC machining, die cutting, rapid prototyping, and clean room assembly of plastic and non-metallic components. Committed to investing in the most efficient manufacturing technologies and outstanding people, Roncelli Plastics is dedicated to delivering the best quality components in the industry. Their diverse team of experienced engineers, machinists, inspectors, supervisors, and managers focus on delivering exceptional customer service alongside precision production of plastic components for every customer. 14 14 Left to right: Riley K. Cole, Gino Roncelli, and Christopher Cole Customer Since 1986 “Citizens Business Bank has been our trusted banking partner for over 30 years. We value the personal, attentive, and dedicated service that they provide. With their broad understanding of our business, we have the peace of mind knowing that if anything out of the ordinary happens, we will get a call from our Relationship Manager. We use their Treasury Management Services to help prevent fraud and maximize cash flow. We count on the stability and reliability of the Bank. Whether it is a Service Representative or the CEO, we know that we will get quality service with a personal touch.” 15 15 Gale Banks Chief Executive Officer Elizabeth Bruny Director of Business Operations Gale Banks Engineering, also known as Banks Power, is a premier designer and manufacturer of power enhancing products for diesel and gas powered light trucks, motorhomes, and sport utility vehicles. Since the 1960s, their futuristic high-performance engines have broken new ground, set world records, and won world championships. Gale Banks Engineering’s fundamental principles combine old-fashioned business ethics and service with leading technology, elegantly engineered products, superior construction, scientifically proven performance, and competitive pricing. 16 16 Customer Since 2001 Left to right: Elizabeth Bruny and Gale Banks “Citizens Business Bank makes every client feel like their business matters. The customer focused service and consistent communication we receive at all levels of the Bank demonstrates their dedication to our success. When we started another company, the Bank made the process seamless and we were able to get up and running in a timely manner. Through solutions such as Positive Pay and Business Online Banking, the Bank provides our companies the ability to be efficient and help to minimize risk. For over 17 years, Citizens Business Bank has remained actively engaged in our business and understands our future goals. The growth of the Bank is a sign that together, we will achieve mutual success.” 17 17 Rich Dyt Managing Partner Jacquie Dyt Partner Moonshine Dairy was established in 1997 as a privately held company located in Crows Landing, California. They are a family-owned and operated dairy with over 2,000 dairy cows. They pride themselves on organization and efficiency with an emphasis on sanitation. Moonshine Dairy strives to constantly improve production by focusing on innovation and the well-being of their livestock. This has led to the ongoing success of their Dairy. 18 18 Customer Since 1997 Left to right: Jacquie and Rich Dyt “Customer service is the highest priority for our Dairy. Everyone in the Bank’s Dairy and Livestock Group is very responsive. As our Dairy grew, Citizens Business Bank provided Asset Based Financing to support our expansion. We also use Business Online Banking to manage our daily finances. Our relationship with Citizens Business Bank goes back decades with our family. The Bank provides valuable insight and always has the best interest of our Dairy and long-term success.” 19 19 Charles Nichols Founder and Chief Executive Officer Richard Deen Vice President and Senior Purchasing Agent Valarie Deen Vice President and Chief Financial Officer Margaret Cabot Treasurer and Operations Manager Nichols Lumber & Hardware Co. is a leading supplier of lumber, hardware, and building products in Southern California and is headquartered in Baldwin Park. Family-owned and operated, Nichols Lumber & Hardware Co. was established in 1958 and earned a superior reputation by consistently delivering high quality products with exceptional customer support. 20 20 Left to right: Richard Deen, Margaret Cabot, Valarie Deen, and Charles Nichols Customer Since 1999 “Flexibility is critical for our competitive industry. Citizens Business Bank provides innovative solutions, where other banks were unable to adjust to meet our needs. We work closely with the Bank to finance new projects through customized Commercial Lending. The Bank has been a great partner for over 19 years. Our Relationship Manager understands our operations and is very proactive in meeting our needs. The open communication and dedicated service we receive is imperative to our long-term financial goals.” 21 21 Rich Fisher President and Chief Executive Officer Pacific Design Technologies, Inc., located in Goleta, California, is a leading contract, design, and manufacturing company. They specialize in the development of advanced thermal management solutions for space, defense, and commercial aerospace applications. Founded in 2000, Pacific Design Technologies, Inc. has a highly experienced staff of engineers, designers, technicians, and administrative support. They are the only company in the world with an active pump operating on another planet through the Mars Curiosity Rover. 22 22 Customer Since 2015 “We selected Citizens Business Bank because they took the time to get to know our business, our people, and the goals of our company. The willingness and ability of the Bank to put together customized financial solutions based on our needs confirmed our decision to put our trust in them. Currently, we use their Commercial Lending services, which allows us to facilitate our fast paced growth. We use Business Online Banking to manage our daily organizational finances and operation. Whenever we are considering any financial decisions, we discuss it with our Relationship Manager first. The Bank provides us a full financial review prior to execution, which gives us confidence to achieve our goals.” 2323 Greg McDermott President Mike McDermott Chief Financial Officer Bryan Burrow Chief Operations Officer Steven McDermott, Philip McDermott, and Kevin McDermott Sierra School Equipment is family-owned, customer-focused, and has built a strong reputation as a company dedicated to the highest level of quality and satisfaction. Founded in Bakersfield, California in 1957, they offer a wide variety of superior educational and contract office furniture, equipment, auditorium seating, lockers, and tables. They take great pride in knowledgeable selling, servicing, and installation of the products they offer to their customers. 24 24 Left to right: Kevin McDermott, Bryan Burrow, Greg McDermott, Philip McDermott, Steven McDermott, and Mike McDermott Customer Since 2001 “Relationships drive business. Our Relationship Manager with Citizens Business Bank is readily available when any need arises. They have dedicated service professionals who know our business and are willing to step up for us when it counts. Over the years, we have expanded our banking relationship to include Wealth Management services from CitizensTrust, a working capital Line of Credit, and Treasury Management Services which provide the flexibility and functionality we need. Citizens Business Bank has the financial strength to accommodate our growth, understands our business, and provides proactive and excellent service.” 2525 26 SERVICES At Citizens Business Bank, we take the time to understand our customers’ financial objectives. Working closely with our customers each step of the way, we find the right solutions to help reach their goals. Every industry is different, with unique needs and goals. We have the financial expertise, successful track record, and powerful products and services to meet the needs of successful businesses in a wide range of industries. Industrial Manufacturing Wholesalers Distributors Professionals Dairy & Livestock Agriculture Government Title & Escrow Property Management Medical, Dental & Health Energy Real Estate Not-for-Profit Community Benefit Organizations 272727 BUSINESS BANKING FRAUD PREVENTION DATA MANAGEMENT INTERNATIONAL Check Positive Pay Payee Positive Pay Reverse Positive Pay ACH Positive Pay CardValet® Safe Deposit Box Business Online Banking eStatements Image Services Electronic Data Interchange Account Reconciliation Information Reporting Disbursement Reporting $ Letter of Credit Foreign Exchange Services Documentary Collections LIQUIDITY RECEIVABLES PAYABLES Remote Deposit Capture Electronic Debit Origination Merchant Services Lockbox Image Cash Letter Cash Vault Services Business Bill Pay Debit Card Electronic Credit Origination Wire Transfer Business Credit Card Tax Payment Services Commercial Card Business Checking Investment Checking Analysis Business Checking Business Savings Premium Money Market Certificate of Deposit Zero Balance Account CDARS® Attorney Client Trust Sweep Manager Account* * PERSONAL BANKING CHECKING DEPOSIT ONLINE, CARD & MORE Personal Checking 55 Checking Investment Checking Preferred Choice Checking Premium Money Market Personal Savings Minor Trust Savings Certificate of Deposit Individual Retirement Account Health Savings Account CDARS® Online Banking & Bill Pay Mobile Banking/Mobile App Popmoney® Debit Card Moneypass® Credit Card CardValet® Safe Deposit Box CDARS is a registered service mark of Promontory Interfinancial Network, LLC. Popmoney is a registered trademark of Fiserv, Inc. MoneyPass is a registered trademark of Elan Financial Services. CardValet is a registered trademark of Fiserv, Inc. 28 Member FDIC Not FDIC InsuredNot Bank GuaranteedMay Lose ValueLENDING COMMERCIAL SPECIALTY PERSONAL Real Estate Commercial Construction Equipment Revolving Lines of Credit Asset-Based Dairy & Livestock Agricultural Small Business Administration Home Purchase Home Refinance Home Equity Line of Credit Equal Housing Lender NMLS# 417441 INVESTING CITIZENSTRUST WEALTH MANAGEMENT Asset Management Charitable Services Estate Planning Citizens Business Bank is not a registered broker/dealer. Trust and Wealth Management are provided by CitizensTrust Wealth Management. CITIZENSTRUST INVESTMENT SERVICES* Business & Succession Planning Financial Planning Personal Investing Retirement Planning Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Citizens Business Bank and CitizensTrust Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. * 29 Not FDIC InsuredNot Bank GuaranteedMay Lose ValueCOMMUNITY COMMITMENT We are dedicated to making a positive impact in the communities we serve throughout Southern and Central California. We help strengthen those communities by delivering superior financial services, providing focused corporate giving, and encouraging associate volunteerism. Walk to End Alzheimers Community Donations Back-to-School Backpacks Rose Queen Coronation OC Charity Golf Classic LA Charity Golf Classic 30 Over the years, Citizens Business Bank has supported over 300 local organizations. Helping our friends, our colleagues, and our neighbors leads to the mutual success, growth, and stability of the communities, businesses, and customers we serve. Principal for a Day Financial Education SERVICE COMMITMENT Citizens Experience The Citizens Experience program recognizes associates that go above and beyond in delivering superior customer service each and every day. Our founder, George A. Borba, Sr., strongly believed outstanding customer service was the key to our ongoing success. As part of the Citizens Experience program, the prestigious Borba Cup is awarded annually to an associate who exemplifies our core values and demonstrates a deep commitment to high quality customer service. For 2017, the Borba Cup was awarded to Lucy Rua, Lead Banking Specialist at the Fullerton Business Financial Center. Lucy Rua Lead Banking Specialist Fullerton Business Financial Center 3131 EXECUTIVE LEADERSHIP With an average banking experience of more than 34 years, our Executive and Senior Leadership team is comprised of experienced individuals with a wide range of industry knowledge. Each of our executives play an integral role in the overall success of Citizens Business Bank. Christopher D. Myers President Chief Executive Officer E. Allen Nicholson Executive Vice President Chief Financial Officer David A. Brager Executive Vice President Sales Division David C. Harvey Executive Vice President Chief Operations Officer David F. Farnsworth Executive Vice President Chief Credit Officer R. Daniel Banis Executive Vice President CitizensTrust Yamynn De Angelis Executive Vice President Chief Risk Officer Ted J. Dondanville Executive Vice President San Fernando Valley Region & Senior Lender Hector G. Gutierrez, Esq. Executive Vice President Deputy Chief Credit Officer Richard H. Wohl Executive Vice President General Counsel Elsa I. Zavala Executive Vice President Chief Information Security Officer G. Larry Zivelonghi Executive Vice President Dairy & Livestock Industries 32 32 SENIOR LEADERSHIP David M. Krebs Senior Vice President Human Resources James E. Mead Senior Vice President Inland Empire Region Michael B. Mulcahy Senior Vice President Los Angeles Region Timothy B. Noone Senior Vice President Mark C. Richardson Senior Vice President San Gabriel Valley Region & Real Estate Banking Group David S. Stong Senior Vice President San Diego Region Specialty Banking Group Michael D. Stain Senior Vice President Central Valley Region Donald R. Toussaint Executive Vice President Robert E. Zeltner Senior Vice President Santa Barbara & Ventura Region Orange County Region 3333 34 FINANCIAL SUMMARY 353535 CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share amounts) DECEMBER 31, 2017 2016 Assets Cash and due from banks $119,841 $119,445 Interest-earning balances due from Federal Reserve Total cash and cash equivalents Interest-earning balances due from depository institutions Investment securities available-for-sale, at fair value (with amortized cost of $2,078,131 at December 31, 2017, 24,536 144,377 17,952 2,188 121,633 47,848 and $2,255,874 at December 31, 2016) 2,080,985 2,270,466 Investment securities held-to-maturity (with fair value of $819,215 at December 31, 2017, and $897,374 at December 31, 2016) Total investment securities Investment in stock of Federal Home Loan Bank (FHLB) 829,890 2,910,875 17,688 911,676 3,182,142 17,688 Loans and lease finance receivables 4,830,631 4,395,064 Allowance for loan losses (59,585) (61,540) Net loans and lease finance receivables 4,771,046 4,333,524 Premises and equipment, net Bank owned life insurance (BOLI) Accrued interest receivable Intangibles Goodwill Other real estate owned (OREO) Income taxes Asset held-for-sale Other assets Total assets 36 46,166 146,486 22,704 6,838 116,564 4,527 40,046 - 25,317 42,086 134,785 22,259 5,010 89,533 4,527 45,429 3,411 23,832 $8,270,586 $8,073,707 Liabilities and Stockholders’ Equity Liabilities: Deposits: Noninterest-bearing Interest-bearing Total deposits DECEMBER 31, 2017 2016 $3,846,436 $3,673,541 2,700,417 2,636,139 6,546,853 6,309,680 Customer repurchase agreements 553,773 603,028 Other borrowings Deferred compensation Junior subordinated debentures Payable for securities purchased Other liabilities Total liabilities Commitments and Contingencies Stockholders’ Equity - 18,223 25,774 - 56,697 53,000 12,361 25,774 23,777 55,225 7,201,320 7,082,845 Common stock, authorized, 225,000,000 shares without par; issued and outstanding 110,184,922 at December 31, 2017, and 108,251,981 at December 31, 2016 Retained earnings Accumulated other comprehensive income, net of tax Total stockholders’ equity 573,453 494,361 1,452 1,069,266 531 ,1 92 449,499 10, 1 7 1 990,862 Total liabilities and stockholders’ equity $8,270,586 $8,073,707 37 CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Dollars in thousands, except per share amounts) FOR THE YEAR ENDED DECEMBER 31, 2017 2016 $214,126 $192,992 Interest income: Loans and leases, including fees Investment securities: Investment securities available-for-sale Investment securities held-to-maturity Total investment income Dividends from FHLB stock Interest-earning deposits with other institutions and federal funds sold Total interest income Interest expense: Deposits Borrowings and customer repurchase agreements Junior subordinated debentures Total interest expense 49,778 21,015 70,793 1,375 932 287,226 6,044 1,579 673 8,296 Net interest income before recapture of provision for loan losses 278,930 Recapture of provision for loan losses (8,500) Net interest income after recapture of provision for loan losses 287,430 Noninterest income: Service charges on deposit accounts Trust and investment services Bankcard services BOLI income Gain on sale of loans Other Total noninterest income 15,809 9,845 3,406 3,420 - 9,638 42,118 38 47,702 20,227 67,929 2,224 1,905 265,050 5,957 1,478 541 7,976 257,074 (6,400) 263,474 15,066 9,595 2,921 2,612 1,101 4,257 35,552 Noninterest expense: Salaries and employee benefits Occupancy and equipment Professional services Software licenses and maintenance Marketing and promotion Recapture of provision for unfunded loan commitments Debt termination expense Acquisition related expenses Impairment loss on asset held-for-sale Legal settlement Other Total noninterest expense Earnings before income taxes Income taxes Net earnings FOR THE YEAR ENDED DECEMBER 31, 2017 87,065 16,756 5,940 6,385 4,839 (400) - 2,251 - - 17,917 140,753 188,795 84,384 $104,411 2016 82,630 15,641 5,054 5,465 5,027 (450) 1 6 1,897 2,558 1,500 17,402 136,740 162,286 60,857 $101,429 Other comprehensive loss: Unrealized loss on securities arising during the period, before tax $(14,629) $(17,966) Less: Reclassification adjustment for net (gain) loss on securities included in net income Other comprehensive loss, before tax Less: Income tax benefit related to items of other comprehensive loss Other comprehensive loss, net of tax Comprehensive income Basic earnings per common share Diluted earnings per common share Cash dividends declared per common share (402) (15,031) 6,312 (8,719) $95,692 $0.95 $0.95 $0.54 (548) (18,514) 7,776 (10,738) $90,691 $0.94 $0.94 $0.48 39 LOCATIONS Citizens Business Bank has 43 business financial centers and eight commercial banking centers serving the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. Business Financial Centers LOS ANGELES COUNTY SAN BERNARDINO COUNTY RIVERSIDE COUNTY Apple Valley 760.961.6900 Chino 909.627.7316 Fontana 909.350.8080 Ontario Airport 909.980.1080 San Bernardino 909.381.5561 San Bernardino (Tri-City) 909.888.6363 ORANGE COUNTY Brea 714.996.8150 Fullerton 714.773.0600 Laguna Beach 949.494.9474 Laguna Hills (Spectrum) 949.581.4444 Laguna Niguel 949.249.0740 Orange (Katella) 714.288.5203 Orange (Plaza) 714.288.5300 Santa Ana 714.967.7222 Corona 951.734.6120 Riverside 951.683.2112 SAN DIEGO COUNTY San Diego (Carmel Valley) 858.847.6500 San Diego (Downtown) 858.350.8650 VENTURA COUNTY Camarillo 805.482.7600 Ventura 805.477.7600 Westlake Village 805.557.7600 KERN COUNTY Bakersfield (Downtown) 661.281.0300 Bakersfield (Rosedale) 661.589.9040 Bakersfield (Stockdale) 661.281.0325 Delano 661.725.8888 Arcadia 626.445.7350 Covina 626.915.8931 El Segundo 310.322.2222 Glendale 818.550.0400 La Cañada Flintridge 818.952.6085 Lancaster 661.723.2000 Manhattan Beach 310.802.4015 Monrovia 626.303.4661 Pasadena 626.405.4915 Pomona 909.629.4151 San Gabriel 626.286.3166 San Marino 626.281.0083 South El Monte 626.442.4470 South Pasadena 626.403.5900 40 TULARE COUNTY Tulare 559.687.3350 Visalia 559.622.9000 FRESNO COUNTY Fresno 559.261.0222 MADERA COUNTY Madera 559.664.9222 Commercial Banking Centers Burbank 818.843.0707 Los Angeles 213.542.3760 Newport Beach 949.440.5200 San Fernando Valley (Encino) 818.905.5760 Santa Barbara 805.324.5920 South Bay (Torrance) 310.217.6000 Upland 909.946.6921 Oxnard 805.485.7600 CitizensTrust Loan Production Office Newport Beach 949.440.5200 Ontario 909.980.1080 Pasadena 626.405.4915 North Valley (Stockton) 209.470.4228 Visit cbbank.com/locations for more information. 41 CORPORATE INFORMATION Transfer Agent Computershare 250 Royall Street Canton, MA 02021 866.280.0564 computershare.com/investor NASDAQ Listing CVB Financial Corp. stock is listed on the NASDAQ under the symbol of CVBF. The securities listed consist of one class of common stock. As of December 31, 2017, there were 110,184,922 shares of common stock outstanding to approximately 13,565 shareholders. Stockholder Information Stockholders may obtain, without charge, Form 10-K of CVB Financial Corp. on written request to Myrna DiSanto, Corporate Secretary. Mailing Address CVB Financial Corp. P. O. Box 51000 Ontario, CA 91761 Street Address 701 N Haven Avenue, Suite 350 Ontario, CA 91764 909.980.4030 Phone: 877.422.2265 Fax: 909.481.2130 cbbank.com Copies of this annual report and interim reports are available upon written request, or by visiting our website at cbbank.com/investors. Equal Housing Lender Member FDIC 42 701 N Haven Avenue | Ontario, CA 91764 | 909.980.4030 | cbbank.com 

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