2018 A N N U A L
R E P O R T
OUR 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.
©2019, Forbes Media LLC. Used with permission
#1 BEST BANK IN CALIFORNIA
on Forbes America’s Best Banks*
$152 Million Net Income
Highest in Company History
167 Consecutive Quarters of Profitability
Over 41 Years
117 Consecutive Quarters of Cash Dividends Paid
Over 29 Years
Five-Star “SUPERIOR” Rating - BauerFinancial
39 Consecutive Quarters
Super Premier Performing Bank - Findley Reports
Over 25 Years
* Ranked #4 in the Nation. #1 is derived from California State filter of all rankings nationwide provided by forbes.com
Since 1974, Citizens Business Bank has been creating banking relationships by
focusing on our customer and helping them achieve more for their business, their
employees, and the communities they serve. Our founder, George A. Borba Sr., was
an enterprising dairy farmer and small business owner from Southern California.
George saw a need to support other business owners in his community by helping
them preserve and enhance the value of their companies. He shared his vision with
a group of local business leaders who cared deeply about their community, and
together they set out to design a new banking experience.
Chino Valley Bank was established in August of 1974. More than 40 years later,
Citizens Business Bank has grown to $11.5 billion in assets with 3 trust offices and
more than 60 banking locations throughout California. We changed our name to
Citizens Business Bank along the way, but we still hold true to our original vision.
We are proud to be in the position to assist entrepreneurs with opportunities to
foster and grow their businesses. Our customers’ success is our success. We are
able to build long-standing relationships with each customer by treating them
the same way we would want to be treated. In fact, many of our customers have
banked with us for decades. Our unwavering commitment to personal service is
the reason we are consistently recognized as one of the top-performing banks in
the nation.
2018 in Review
Board of Directors
Financial Highlights
Valued Customers
Services
Community Commitment
Leadership Team
Financial Summary
Locations
Corporate Information
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5
7
11
25
28
30
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38
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TO OUR SHAREHOLDERS,
CUSTOMERS, AND ASSOCIATES
2018 was a transformational year for Citizens
and received a Five Star rating by BauerFinancial,
Business Bank. In August 2018, we purchased
once again. Citizens Business Bank recorded an
Community Bank, formerly a $3.7 billion in assets
amazing 167 consecutive quarters of profitability
bank headquartered in Pasadena, CA. This is, by
and 117 consecutive quarters of paying a cash dividend
far, the largest acquisition in our Bank’s history.
to our shareholders. And, we are still counting.
Community Bank was formed in 1945 and grew
steadily over the years throughout the Los
Angeles, Orange County, and Inland Empire
markets. Many of their 16 branches are in close
proximity to our center locations, creating both
deeper market penetration and potential cost
synergies. In addition to bringing on many talented
bankers and a seasoned customer base, we added
three new executives to our Senior Leadership
team and also named Marshall V. Laitsch, the
former Chairman of the Community Bank Board,
From a strategic perspective, we do not strive to
be the biggest, but we do want to be the best. We
aspire to build long-term relationships with our
customers, associates, and shareholders. We value
relationships that are based on trust, consistency,
and mutual respect. Our vision is to be the premier
financial services company operating throughout
the state of California, servicing the comprehensive
financial needs of small to medium-sized
businesses and their owners.
to the CVB Financial Corp. and Citizens Business
As we look forward into the future, we remain
Bank boards.
2018 was a record setting year in terms of financial
benchmarks. We produced $152.0 million in total
earnings, an incredible 46% increase over 2017.
committed to the integrity of our business model.
We are driven by our five core values: financial
strength, superior people, customer focus, cost-
effective operation, and having fun.
Total assets grew to $11.5 billion, total loans
On behalf of our Board of Directors, we thank our
grew to $7.8 billion, and total deposits grew to
customers for their ongoing loyalty, our associates
$9.1 billion. All record levels. We ended the year
for their dedication and hard work, and our
with 68 business financial centers stretching from
shareholders for their continued support and trust.
San Diego in the south to Stockton in the north.
Our plan for 2019 is to consolidate several of
these centers as many are in close proximity,
mostly due to the acquisition.
2018 was also a year of recognition from our
Raymond V. O’Brien III
Chairman of the Board
industry. We were ranked as the #1 Bank in
California by Forbes 2019 Best Banks in America
Christopher D. Myers
President and Chief Executive Officer
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BOARD OF DIRECTORS
Raymond V. O’Brien III
Chairman
Christopher D. Myers
President & CEO
George A. Borba
Vice Chairman
Kristina M. Leslie
Director
Stephen A. Del Guercio
Director
Hal W. Oswalt
Director
Anna Kan
Director
Rodrigo Guerra Jr.
Director
Marshall V. Laitsch
Director
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FINANCIAL
HIGHLIGHTS
Citizens Business Bank produced record profitability and growth
for 2018. At year end, we reported our 167th consecutive quarter of
profitability and paid our 117th consecutive quarterly cash dividend
to shareholders. Our focus on improving key financial metrics,
including profitability and asset quality, is paramount.
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Total Assets
(Dollars in Billions)
2018
2017
2016
2015
2014
$11.5
$7.4
$70.2
$1.9
$1.24
$0.98
$42.4
$0.9
2014 15 16 17 18
2014 15 16 17 18
2014 15 16 17 18
Dividends
Declared
(Dollars in Millions)
Shareholders’
Equity
(Dollars in Billions)
Diluted Earnings
Per Share
Total Deposits1
(Dollars in Billions)
$6.2
$9.3
2014 2015 2016 2017 2018
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1Includes customer repurchase agreements.
$5.2
$34.0
$2.9
$43.5
$7.8
$3.8
2014 15 16 17 18
2014 15 16 17 18
2014 15 16 17 18
Noninterest
Bearing Deposits
(Dollars in Billions)
Noninterest
Income 2
(Dollars in Millions)
Total Loans
(Dollars in Billions)
Efficiency Ratio 3
44.27%
46.72%
43.84%
45.83%
2015 2016 2017 2018
Net Earnings
(Dollars in Millions)
2018
2017
2016
2015
2014
$152.0
$104.0
2 Excludes gain on sale of loans, securities, branches, and gain on eminent domain, as well as FDIC loss sharing asset changes.
3 Noninterest expense, excluding debt termination expense, divided by net interest income before provision for loan losses plus noninterest income.
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VALUED
CUSTOMERS
Our customers are always our top priority. We strive to build long-term
relationships by providing businesses and professionals with the personal
service of a small bank, while delivering all the capabilities of a big bank. Our
customer-focused model helps our customers achieve their financial goals. Our
approach to relationship banking continues to captivate new and old customers
alike, many of whom have banked with us for more than 20 years.
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Camarena Health
Camarena Health has been serving the Madera County community with affordable healthcare
services since opening their first center in 1980. The community-based healthcare provider
originally started as a health center for farmworkers and their families in Madera County, and
they’ve established themselves as an influential organization among local residents. “We aim to be
extremely accessible to people in the community, regardless of insurance,” explains Paulo Soares,
Chief Executive Officer. Last year, their collection of health practices saw over 42,000 patients, or
approximately one-in-four residents of the county.
As a healthcare provider, Camarena Health’s mission is to continue their growth in order to meet
the needs of the community. In 2008, Camarena Health began the search for a new banking
relationship with the goal of propelling their business forward and serving more patients. They felt
“The Bank has been responsive and
moved alongside us as we’ve grown.”
the national bank they were using at the time was too impersonal for their business needs. The
team knew they required the expertise of a local bank that could understand their business goals
and help health services spread throughout Madera County. They chose Citizens Business Bank.
In the first 30 years of existence, Camarena Health only operated two health centers in the county.
However, growth has been exponential over the last decade. Since beginning their relationship
with Citizens Business Bank, Camarena Health has expanded their network with 12 new centers.
Valued Partner since 2008
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Left to right: Paulo Soares, Chief Executive Officer and Dr. Joel Ramirez, Chief Medical Officer
Paulo expresses his appreciation for Camarena Health’s relationship with Citizens Business Bank,
and he eagerly shares how the services are “great assets to have available to us.” A Revolving
Line of Credit provides the health system with the flexibility to purchase essential equipment.
Real Estate Loans were vital to the addition of a new administration building and also crucial
for constructing a new medical campus with a variety of health services for patients and their
families. Paulo’s team also worked with the Bank to establish investment accounts through
CitizensTrust, which will help to grow and build the organization’s cash reserves. Their objective
is to maximize investment returns to ensure the long-term sustainability of the valuable health
services they provide. With steadfast support from the Bank, Camarena Health will continue to
serve the health needs of Madera County residents well into the future.
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West Coast Sand & Gravel
West Coast Sand & Gravel’s iconic turquoise trucks
have been a fixture of California roads for more
than 50 years. In the early days of the business,
their customers were limited to construction
industry contractors, and the fleet consisted
of two trucks. Today, West Coast Sand & Gravel
has more than 300 turquoise trucks in their
fleet, spread out over 13 locations in California
and Arizona. They now serve a wide range of
customers from a variety of industries.
Marv Struiksma, the Chairman of West Coast
Sand & Gravel, has been involved in operations
since his uncles first started the business in 1968.
As the patriarch of the enterprise, he is a long-
time proponent of West Coast’s relationship
with Citizens Business Bank. He enthusiastically
declares that the Bank is “the easiest bank we’ve
had to work with for Equipment Financing. They
are the one we go to.” In addition to the various
loans they’ve obtained through the Bank, West
Coast has also utilized a myriad of other financial
services. “The Bank has allowed us to expand
Left to right: Marvin Struiksma, Mike Struiksma,
into mining and upgrade the trucking and supply
Dale Struiksma, Dan Reyneveld, Ed de Boer,
side,” says Dan Reyneveld, CEO of West Coast
John Struiksma, Jeff Struiksma, and Klint Korver
Sand & Gravel. Online Banking services have
“It’s all about personal relationships.”
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been convenient for their business needs, as these
are the products the team at West Coast uses
most often. They have also integrated Merchant
Services into their company, which Dan contends
is a useful complement to their Resource Building
Materials retail business.
Much like Citizens Business Bank, West Coast
Sand & Gravel was built upon a customer-focused
approach to business. The key to developing
long-lasting business relationships comes from
prioritizing customers above all else. “It’s all about
personal relationships. Vince Gottuso, the Bank’s
Center Manager, has done an excellent job. He
has a very strong team that backs him up. The
customer is king for sure,” asserts Dan. “Vince
will say, I’m going to go to work here for you. I’m
going to get a solution for you, and it makes me
feel special as a customer.”
Marv, Dan, and their team regularly involve
Citizens Business Bank in major decisions relating
to the growth of their company. West Coast Sand
& Gravel has witnessed steady growth through
more than 50 years of business, and they’ve been
a loyal customer of the Bank for more than 20
of those years. The company continues to grow
and diversify their business model, and they take
comfort in knowing Citizens Business Bank is
there to support them with a full suite of financial
products and services.
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Valued Partner since 1995
Bakersfield Veterinary Hospital
Residents of Kern County have been bringing their pets to Bakersfield Veterinary Hospital since
the doors first opened in 1923. The hospital’s relationship with the Bank started a decade ago,
when a group of medical professionals sought to establish a relationship with a premier business
bank that could understand their needs. “Citizens Business Bank has helped us develop into
what we are today,” says Dr. Adam Landry, a partner at the hospital. With assistance from the
Bank’s associates and services, Bakersfield Veterinary Hospital was able to grow from a small
clinic into one of the largest veterinary groups in the region.
“Citizens Business Bank has helped us
develop into what we are today.”
Bakersfield Veterinary Hospital had outgrown their smaller, separate practices, and were ready
to move to a larger, centralized building that could handle an influx of new patients. With bank
financing provided for the expansion, the partners reached their long-term goal of building and
owning a veterinary hospital. “They’ve made this goal possible. Possible to purchase the land.
Possible to make the business grow,” said Dr. Landry. An SBA 504 Loan and Equipment Term Loan
were essential in laying the groundwork for the new hospital. The state-of-the-art 13,000 square-
foot facility in Bakersfield is now home to modern surgical and exam rooms, luxury boarding
suites, a complete laboratory, and a veterinary pharmacy.
In addition to providing financing throughout the 10-year relationship, the Bank also provided loans
for individual professionals, like Dr. Landry, which allowed them to become partners in the practice.
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Left to right: Dr. Adam Landry, Dr. Irene Takata, Dr. Jennifer McGraw Aguirre, and Dr. Michael D. Keese
Different generations of veterinarians have entered and left the firm since they first began the
relationship, but the hospital continues to remain a loyal customer of the Bank. “There has always
been that personal experience, a local feel,” said Dr. Landry, in reference to his own exchanges
with the Bank.
Strategically combining their smaller practices into a full-service veterinary hospital has been a
successful long-term move for the team. As a result, they’ve experienced a 35 percent increase in
revenue over the last five years. The veterinarians have had such a satisfying relationship with the
Bank that they’re eager to share the experience with other businesses in Kern County.
Valued Partner since 2009
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Armorcast Products Company
Paul Boghossian
When H.P. Boghossian first started Armorcast Products Company in 1966, he didn’t set out to
create an innovative leader in the utilities industry, but that’s exactly what they’re known for today.
The early years of Armorcast involved selling and installing reinforced fiberglass architectural
elements for retail construction, movie studios, and Las Vegas hotels. It wasn’t until 1972 that
Armorcast introduced their signature product line of durable underground protective enclosures
for utility companies. Around this time, Armorcast established a partnership with Community
Bank. When Citizens Business Bank acquired Community Bank in August of 2018, the team at
Armorcast were initially concerned about what changes might be in store for them.
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“When your bank of 40 years is acquired, you worry you’re just going to be another number to
them. That hasn’t been the case,” says Paul Boghossian, Mr. Boghossian’s son, and the current
President of Armorcast. Within the first few weeks of the acquisition, the President & CEO of
Citizens Business Bank, Chris Myers, was visiting with Paul and his team at Armorcast Products
headquarters. Chris was there to reassure the team that they could expect the same level
of personal attention that they’d grown accustomed to with their previous bank. Despite an
abundance of banks persistently trying to convert Armorcast as a new customer, Paul and his
team chose to continue their banking with Citizens Business Bank. “We’re a good example of a
satisfied transition customer. We had a lot of options, but we gave the Bank a chance and I’m
glad we did.”
“We gave the Bank a chance
and I’m glad we did.”
Armorcast Products has plans to relocate to a larger facility in the summer of 2019, and according
to Paul, “Citizens Business Bank was critical in us being able to do that.” To facilitate their transition,
Armorcast implemented a Bridge Loan to purchase the new building, which allowed them the
time to find a buyer and exchange their current facility as part of a 1031 Reverse Exchange
transaction. Paul relied heavily on the expertise of the Bank’s Relationship Management team,
and their ability to provide the necessary financing to make the purchase a reality.
Valued Partner since 1971
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California Custom Fruits and Flavors, Inc.
Terry and Rose Ann Hall were ambitious entrepreneurs who recognized a need for a reliable large-
scale supplier of processed fruit bases for yogurts. In 1984, they embarked on a new business
venture in Irwindale, CA. The Halls named their company California Custom Fruits and Flavors,
and as the business expanded in the 1990s, they branched out into other markets, including
flavor bases for ice creams and fruit fillings for industrial bakeries. Today, the fruit processing and
flavorings from California Custom Fruits and Flavors can be found in a multitude of products at
major grocery chains and retail stores throughout the country.
Rose Ann became the sole owner of the company in 2003, and she still has an active role in day-
to-day operations. At her request, California Custom Fruits and Flavors entered into a banking
relationship with Citizens Business Bank in 2014. Not long after, they began implementing
Treasury Management Services to protect and manage their assets. The company has also
obtained Term Loans to help finance the growth and needs of their business. Despite utilizing a
multitude of other financial solutions, they speak most highly about the personal service provided
by the Bank. “Other banks just do not have the same personal touch as Citizens Business Bank,”
says Jim Fragnoli, who joined California Custom Fruits and Flavors in 2008 as their first Chief
Financial Officer.
“Other banks just do not have
the same personal touch.”
Jim describes the company’s current relationship with Citizens Business Bank as a partnership,
and he emphasizes how genuinely connecting with a customer can make all the difference.
“Services are the same everywhere, but the personal service is the number one factor for our
relationship,” says Jim. “Even though the Bank is large, I’m treated like they’re a small bank,” he
adds. If there is ever a business or banking roadblock, a Relationship Manager from the Bank
is always standing by, ready to help out. “Rose Ann will pick up the phone and call, and it gets
resolved. She knows she has that with Citizens Business Bank.”
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Left to right: Rose Ann Hall and Mike Mulhausen
In the four years since California Custom Fruits and Flavors began a banking relationship with
Citizens Business Bank, they’ve had remarkable growth. In the past year alone, their revenue
increased more than seven percent. Operations are already outgrowing their 86,000 square-
foot headquarters facility in Irwindale, and the company has plans to expand to the Midwest
to better handle their ever-increasing base of national customers. Partnerships like these are
shining examples of the level of service the Bank strives for with every valued customer.
Valued Partner since 2014
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Veldhuis Dairies LLC
In the early 1980s, Jacob and Anna Veldhuis packed up their life in the Netherlands and brought
their family to the United States. They arrived in California in pursuit of the American dream,
pouring everything they had into starting a dairy farm. Over the next two decades, their family
grew, and so did their business.
Left to right: Mark & Fransisca Vander Meulen, Ruurd & Tabitha Veldhuis,
Jacob & Anna Veldhuis, and Hessel Veldhuis
Valued Partner since 2001
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In 1984, Jacob and Anna had moved to Washington, where they were running a single dairy
facility. In 2000, Veldhuis Dairies began on a path of significant expansion, and they eventually
reached a point that they were unable to keep up with their ongoing success. They started
looking for a lender who would understand their needs and recognize the value of a long-term
banking relationship. Their accountant suggested one bank in particular: one founded by a fellow
dairy farmer, with a solid reputation amongst dairy and livestock businesses.
“They’ve always
taken care of us.”
They chose Citizens Business Bank to accommodate their business expansion. The Bank was able
to work closely with the family to offer customized solutions tailored to their unique business
needs. “They’ve always taken care of us,” the whole family agrees, “they processed loans quickly,
and whenever we started a project they came through.” With the help of Commercial Lending
solutions, Veldhuis Dairies was able to acquire additional dairy facilities for their growing business.
Today, Veldhuis Dairies is truly a family-owned and family-run business. “We don’t believe in titles,”
says Fransisca. Instead of having individual titles, Jacob and Anna, along with their daughter
Fransisca and her husband Mark, their son Ruurd and his wife Tabitha, and their son Hessel, all
consider themselves owner/operators of Veldhuis Dairies. In the seven years since becoming
a customer of the Bank’s Dairy & Livestock Industries Group, Veldhuis Dairies has more than
doubled in size. The family employs approximately 225 workers to tend to 19,000 cows across
their six facilities in Washington. They’ve added three new dairies in the last five years alone, and
with the Bank’s support they plan to open another soon.
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2323
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SERVICES
The Power of Relationship Banking
Our founders believed in the power of building long-lasting and genuine
relationships with our customers. This belief is what still drives our success
today. In fact, our financial experts devote considerable time to learning about
our customers and their business goals. When we get to know our customers,
we are able to offer them the products and services they need to successfully
grow their business.
Throughout the years, we have learned that a one-size-fits-all approach to
banking rarely produces the best result. Each business has their own unique
set of needs. In response, we have assembled an extensive array of banking,
lending, and investment services for a wide range of industries. This way we
are able to determine the best path for our customers. We offer a personalized
banking experience tailored to their individual business needs.
2525
FRAUD PREVENTION
Check Positive Pay
Payee Positive Pay
Reverse Positive Pay
ACH Positive Pay
CardValet®
Safe Deposit Box
DATA MANAGEMENT
Business Online Banking
Mobile Banking
eStatements
Image Services
Electronic Data Interchange
Account Reconcilement Services
Custom Information Reporting
Disbursement Reporting
LIQUIDITY
Business Checking
Investment Checking
Analysis Business Checking
Business Savings
Premium Money Market
Certificate of Deposit
Zero Balance Account
CDARS®
Attorney Client Trust
Sweep to Investment*
INTERNATIONAL
Letter of Credit
Foreign Exchange Services
Documentary Collections
Wire Transfer
BUSINESS
BANKING
PERSONAL
PAYABLES
Business Bill Pay
Debit Card
ACH Origination - Credit
Wire Transfer
Business Credit Card
Tax Payment Services
Commercial Card
Apple Pay®
RECEIVABLES
Remote Deposit Capture
ACH Origination - Debit
Merchant Services
Bill Pay Consolidation
Smart Safe Advanced Credit
Lockbox
Image Cash Letter
Cash Vault Services
ONLINE, CARD & MORE
Online Banking & Bill Pay
Mobile Banking/Mobile App
Popmoney®
Debit Card
Moneypass®
Credit Card
CardValet®
Safe Deposit Box
CHECKING
Personal Checking
55 Checking
Investment Checking
DEPOSIT
Premium Money Market
Personal Savings
Minor Trust Savings
Certificate of Deposit
Individual Retirement Account
Health Savings Account
Preferred Choice Checking
CDARS®
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.
26
Member FDIC
COMMERCIAL
Real Estate
Commercial
Construction
Equipment
Revolving Lines of Credit
Asset-Based
SPECIALTY
Dairy & Livestock
Agricultural
Small Business Administration
PERSONAL
Home Purchase
Home Refinance
Home Equity Line of Credit
Equal Housing Lender
NMLS# 417441
LENDING
INVESTING
CITIZENSTRUST
INVESTMENT SERVICES*
Business & Succession Planning
Financial Planning
Personal Investing
Retirement Planning
CITIZENSTRUST
WEALTH MANAGEMENT*
Asset Management
Charitable Services
Estate 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.
Citizens Business Bank is not a registered broker/dealer.
Trust and Wealth Management are provided by
CitizensTrust Wealth Management.
*
272727
Not FDIC InsuredNot Bank GuaranteedMay Lose Value COMMUNITY COMMITMENT
Making a Positive Difference
Citizens Business Bank has been serving the people and businesses of California since our founding
more than 40 years ago. Along the way we’ve learned a lot, and our bank has grown exponentially,
but we will never forget our roots in community banking. To us, a community goes beyond the
group of people who happen to share a hometown. We believe that community is about improving
the quality of life for our neighbors.
BIG BROTHERS BIG SISTERS
OF THE INLAND EMPIRE
One of the many ways we support our communities is through an ongoing partnership
with the oldest volunteer mentoring agency in the nation. Associates from the Bank
work together with Big Brothers Big Sisters of the Inland Empire to mentor young
women from Ontario High School, where 86.4% of the students qualify for the Free
or Reduced Price Meal Program. Together, we are helping them develop invaluable
life skills, such as starting and maintaining a responsible financial lifestyle. These
mentoring sessions provide career development and financial education, creating our
region’s strong future workforce.
The Citizens Experience is the difference between
simply meeting our customers’ needs and ensuring
we have exceeded their expectations. It is our way
of recognizing the associates who go above and
beyond to deliver exceptional service. As part of
the Citizens Experience program, the prestigious
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At Citizens Business Bank, we are passionate about the communities we serve, and it shows.
We are committed to strengthening our communities by offering superior financial services,
establishing partnerships with local organizations, and consistently encouraging volunteerism
at every level of the Bank. Each year, our associates dedicate thousands of hours of their own
time to local organizations and charitable causes. Our goal is to make a positive difference in the
places we live and work, so current generations can experience a higher quality of life, and future
generations can inherit a better world.
AMPAC TRI-STATE CDC
AmPac Tri-State CDC is a Certified Community Development Financial Institution,
and also the only faith-based Certified Development Company in the country. They
work with the Small Business Administration (SBA) and financial institutions to
provide funding for businesses in their region. As a community leader and integral
part of the local economy, this nonprofit organization facilitates business growth by
providing SBA 504 loans, which small businesses can use to acquire land, buildings,
and equipment.
Our partnership with AmPac provides the nonprofit with a revolving line of credit,
enabling them to fund approved loans more efficiently. We also provide grant
support for small business technical assistance programs and term loans for
funding loans retained in AmPac’s portfolio.
Borba Cup is awarded annually to an associate who
exemplifies our core values and demonstrates a
deep commitment to high-quality customer service.
For 2018, the Borba Cup was awarded to Bryan
Ward, Vice President & Credit Officer in our Real
Estate Banking Group.
Bryan Ward
Vice President
Credit Officer
Real Estate
Banking Group
2929
LEADERSHIP TEAM
With an average banking experience of more than 33 years, Citizens Business Bank’s
leaders form the foundations of success for the entire company. As individuals, each
member of the leadership team contributes distinct perspectives and decades of
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
Senior Lender
Hector G. Gutierrez, Esq.
Executive Vice President
Deputy Chief Credit Officer
Timothy B. Noone
Executive Vice President
Specialty Banking
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
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30
unmatched business and financial experience to the Bank. As a team, they’re at the
forefront of driving organizational growth, and their focus is on the long-term success of
the Bank, our customers, our associates, and the communities we serve.
Jeffrey S. Boyer
Senior Vice President
Los Angeles Region-North
Gilbert W. Estrada
Senior Vice President
Inland Empire Region
Donald E. Evenson
Senior Vice President
Chief Investment Officer
CitizensTrust
Richard M. Favor
Senior Vice President
Central Coast Region
Deborah G. Gallagher
Senior Vice President
Small Business Administration
David R. Klatt
Senior Vice President
Chief Information Officer
Joyce Y. Kwon
Senior Vice President
Director of Human Resources
Daniel Limon
Senior Vice President
Real Estate Banking
Michael B. Mulcahy
Senior Vice President
Los Angeles Region-Metro
Mark C. Richardson
Senior Vice President
Real Estate Banking
LaVon Short
Senior Vice President
Sales and Marketing
Michael D. Stain
Senior Vice President
Central Valley Region
David S. Stong
Senior Vice President
San Diego Region
Robert E. Zeltner
Senior Vice President
Orange County Region
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FINANCIAL
SUMMARY
3333
CONSOLIDATED BALANCE SHEETS
CVB FINANCIAL CORP. AND SUBSIDIARIES
(Dollars in thousands, except share amounts)
DECEMBER 31,
2018
2017
Assets
Cash and due from banks
$ 144,008
$ 119,841
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 $1,757,666 at December 31, 2018, and
19,940
163,948
7,670
24,536
144,377
17,952
$2,078,131 at December 31, 2017)
1,734,085
2,080,985
Investment securities held-to-maturity (with fair value of $721,537
at December 31, 2018, and $819,215 at December 31, 2017)
Total investment securities
Investment in stock of Federal Home Loan Bank (FHLB)
744,440
2,478,525
17,688
829,890
2,910,875
17,688
Loans and lease finance receivables
7,764,611
4,830,631
Allowance for loan losses
Net loans and lease finance receivables
Premises and equipment, net
Bank owned life insurance (BOLI)
Accrued interest receivable
Intangibles
Goodwill
Other real estate owned (OREO)
Income taxes
Other assets
(63,613)
7,700,998
58,193
220,758
30,649
53,784
666,539
420
62,174
67,807
(59,585)
4,771,046
46,166
146,486
22,704
6,838
116,564
4,527
40,046
25,317
Total assets
$ 11,529,153
$ 8,270,586
34
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing
Interest-bearing
Total deposits
Customer repurchase agreements
Other borrowings
Deferred compensation
Junior subordinated debentures
Other liabilities
Total liabilities
Commitments and Contingencies
Stockholders’ Equity
DECEMBER 31,
2018
2017
$ 5,204,787
$ 3,846,436
3,622,703
2,700,417
8,827,490
6,546,853
442,255
280,000
20,033
25,774
82,411
553,773
-
18,223
25,774
56,697
9,677,963
7,201,320
Common stock, authorized, 225,000,000 shares without par;
issued and outstanding 140,000,017 at December 31, 2018,
and 110,184,922 at December 31, 2017
Retained earnings
Accumulated other comprehensive (loss) income, net of tax
1,293,669
575,805
(18,284)
573,453
494,361
1,452
Total stockholders’ equity
1,851,190
1,069,266
Total liabilities and stockholders’ equity
$ 11,529,153
$ 8,270,586
35
CONSOLIDATED STATEMENTS OF EARNINGS
CVB FINANCIAL CORP. AND SUBSIDIARIES
(Dollars in thousands, except per share amounts)
Interest income:
Loans and leases, including fees
$ 293,284
$ 214,126
FOR THE YEAR ENDED DECEMBER 31,
2018
2017
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
45,988
18,901
64,889
2,045
1,642
361,860
9,825
2,067
923
12,815
Net interest income before provision for (recapture of) loan losses
349,045
Provision for (recapture of) loan losses
1,500
Net interest income after provision for (recapture of) loan losses
347,545
Noninterest income:
Service charges on deposit accounts
Trust and investment services
Bankcard services
BOLI income
Gain (loss) on OREO, net
Other
Total noninterest income
17,070
8,774
3,485
4,018
3,546
6,588
43,481
49,778
21,015
70,793
1,375
932
287,226
6,044
1,579
673
8,296
278,930
(8,500)
287,430
15,809
9,845
3,406
3,420
6
9,632
42,118
36
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
Amortization of intangible assets
Acquisition related expenses
Other
Total noninterest expense
Earnings before income taxes
Income taxes
Net earnings
Basic earnings per common share
Diluted earnings per common share
Cash dividends declared per common share
FOR THE YEAR ENDED DECEMBER 31,
2018
2017
100,601
20,841
6,477
8,655
5,302
(250)
5,254
16,404
16,627
179,911
21 1 ,1 1 5
59,1 1 2
87,065
16,756
5,940
6,385
4,839
(400)
1,329
2, 2 5 1
16,588
140,753
188,795
84,384
$ 152,003
$ 104, 4 1 1
$1.25
$1.24
$0.56
$0.95
$0.95
$0.54
37
LOCATIONS
Citizens Business Bank has 61 business financial 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.
RIVERSIDE COUNTY
Corona
951.734.6120
Riverside
951.683.2112
SAN BERNARDINO COUNTY
Apple Valley
760.961.6900
Chino
909.627.7316
Fontana
909.350.8080
Ontario Airport
909.980.1080
Redlands
909.307.8100
San Bernardino
909.381.5561
San Bernardino (Tri-City)
909.888.6363
Upland
909.946.6921
LOS ANGELES COUNTY
Arcadia
626.445.7350
Burbank (Airport)
818.295.3200
Burbank (Toluca Lake)
818.843.0707
Century City
310.436.3480
Commerce
323.832.1820
Covina
626.915.8931
El Segundo
310.322.2222
Glendale
818.550.0400
38
La Cañada Flintridge
818.952.6085
Lancaster
661.723.2000
Los Angeles
213.542.3760
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
Santa Clarita
661.295.2840
Santa Fe Springs
562.903.8120
South Bay (Torrance)
310.217.6000
South El Monte
626.442.4470
South Pasadena
626.403.5900
San Fernando Valley (Encino)
818.905.5760
Warner Center (Woodland Hills)
818.466.6700
ORANGE COUNTY
Anaheim
714.634.2265
Brea
714.996.8150
Fullerton
714.773.0600
Huntington Beach
714.622.6060
Laguna Beach
949.494.9474
Laguna Hills (Spectrum)
949.581.4444
Laguna Niguel
949.249.0740
Newport Beach
949.440.5200
Orange (Katella)
714.288.5203
Orange (Plaza)
714.288.5300
Santa Ana
714.967.7222
SAN DIEGO COUNTY
VENTURA COUNTY
San Diego (Carmel Valley)
858.847.6500
San Diego (Downtown)
858.350.8650
Camarillo
805.482.7600
Oxnard
805.485.7600
Ventura
805.477.7600
Westlake Village
805.557.7600
SANTA BARBARA
COUNTY
KERN COUNTY
Santa Barbara
805.324.5920
Bakersfield (Downtown)
661.281.0300
Bakersfield (Stockdale)
661.281.0325
Bakersfield (Rosedale)
661.589.9040
Delano
661.725.8888
TULARE COUNTY
MADERA COUNTY
Tulare
559.687.3350
Visalia
559.622.9000
Madera
559.664.9222
SAN JOAQUIN COUNTY
FRESNO COUNTY
Stockton
209.851.3740
Fresno
559.261.0222
CITIZENSTRUST
Newport Beach
949.440.5231
Ontario
909.483.4342
Pasadena
626.564.6263
Visit
cbbank.com/locations
for more information.
393939
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, 2018, there were 140,000,017 shares of common stock outstanding to
approximately 12,938 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
40
OUR 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.
701 N Haven Avenue | Ontario, CA 91764 | 909.980.4030 | cbbank.com