CVB Financial
Annual Report 2023

Plain-text annual report

2023 SUMMARY ANNUAL REPORT #12Top 50 Public Banks S&P Global Market Intelligence, 2023 #1 Best Bank in America1 Forbes, 2023 Five-Star Superior Rating BauerFinancial, 2023 Super Premier Performing Bank Findley Reports, 2023 America’s Greatest Workplaces for Women 2024 Newsweek, 2024 BBB+ Strong Rating Outlook Fitch Ratings, 2023 $221.4 Million Net Earnings Second Highest in Company History 187 Consecutive Quarters of Profitability Over 46 Years 137 Consecutive Quarters of Cash Dividends Paid Over 34 Years 1CVB Financial Corp. is the holding company for Citizens Business Bank Since 1974, Citizens Business Bank has been creating banking relationships by focusing on our customers 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. 49 years later, Citizens Business Bank has grown to approximately $16 billion in assets with over 60 banking locations and 3 trust offices 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 way we would want to be treated. In fact, many of our customers have banked with us for decades. Our unwavering commitment to our Five Core Values of Financial Strength, Superior People, Customer Focus, Cost-Effective Operation, and Having Fun is the reason we are consistently recognized as one of the top-performing banks in the nation. 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. 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 throughout 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. Citizens Business Bank 2023 | 3 4 | Citizens Business Bank 2023 Table of Contents Board of Directors 2023 in Review Financial Highlights Valued Customers Services Community Commitment Leadership Team Financial Summary Locations Corporate Information 6 7 9 13 27 32 36 39 44 46 Citizens Business Bank 2023 | 5 Board of Directors Hal W. Oswalt Chairman George A. Borba David A. Brager Raymond V. O’Brien III Vice Chairman President Chief Executive Officer Director Stephen A. Del Guercio Director Anna Kan Director Jane Olvera Majors Kimberly Sheehy Director Director 6 | Citizens Business Bank 2023 To our Shareholders, Customers, and Associates 2023 in Review During 2023, Citizens Business Bank has not only remained safe and sound, but also produced earnings that were the second highest in the company’s history, despite the difficult operating environment and well-known challenges in the regional banking sector. Net earnings were $221.4 million for the year ended 2023, compared with $235.4 million for the year ended 2022. The reduction in our net earnings was due primarily to higher borrowing costs and a one-time FDIC special assessment recorded during the fourth quarter of 2023 to replenish the federal deposit insurance fund. We continue to be among the industry leaders with respect to expense control, as our efficiency ratio for the full year 2023 was 42%. For the year ended December 31, 2023, return on average assets (ROAA) was 1.35% and return on average tangible common equity (ROATCE) was 18.48%, which compares to a 1.39% ROAA and 18.85% ROATCE for 2022. This also put us in the top quartile for performance on these two metrics relative to our peer financial institutions for 2023. We reported our 187th consecutive quarter of profitability and paid our 137th consecutive quarterly cash dividend to our shareholders. In 2023, S&P Global Market Intelligence ranked CVB Financial Corp. as the #3 Best-Performing U.S. Public Bank, and we continue our designation as a “Super Premier” Performing Bank by The Findley Reports, our Five-Star Superior rating from BauerFinancial, and our BBB+ rating from Fitch Ratings. Our Bank has operated in California for 49 years, serving our customers through good and tough times. We have continued to support our customers and communities during periods involving significant financial disruptions, including the unprecedented interest rate hikes in the early 1980s, the Great Recession 15 years ago, and the COVID-19 pandemic. Most importantly, we are a regional and community bank made up of customer-focused, relationship-driven bankers, which means we have historically enjoyed a stable base of long-term and loyal customers. 77% of our customer deposit relationships have banked with us for 3 years or more, while 45% have banked with us for over 10 years. Our strong financial position has allowed our Bank to continue to support the communities we serve. In 2023, Citizens Business Bank contributed approximately $1.65 million in donations to a variety of charitable organizations supporting individuals and businesses in our communities. Our Annual Charity Golf Tournaments raised a combined total of $205,000 in 2023 for community benefit organizations in Orange County and Los Angeles County. Continued on next page Citizens Business Bank 2023 | 7 Continued As we enter 2024, we look forward to celebrating our Bank’s 50th anniversary. Founded in August 1974, our Bank has accomplished more than our founders could have imagined over the last five decades, and we remain committed to our strategy of banking the best small and medium-sized businesses and their owners. We work hard to earn and maintain the trust of our customers and business partners. On behalf of our Board of Directors, we thank our associates for their hard work and dedication, our customers for their business and ongoing loyalty, and our shareholders for their continued support and trust. Hal W. Oswalt Chairman of the Board David A. Brager President and Chief Executive Officer 8 | Citizens Business Bank 2023 Financial Highlights At year end, we reported our 187th consecutive quarter of profitability and paid our 137th consecutive quarterly cash dividend to shareholders. We will continue to focus on improving key financial metrics, including profitability and asset quality. Citizens Business Bank 2023 | 9 Citizens Business Bank 2023 | 9Total Assets (Dollars in Billions) 2023 2022 2021 2020 2019 Total Deposits1 (Dollars in Billions) $9.1 $11.3 $16.0 $11.7 2019 2020 2021 2022 2023 1Includes customer repurchase agreements. $111.6 $2.0 $2.1 $1.48 $1.59 $100.9 2019 20 21 22 23 2019 20 21 22 23 2019 20 21 22 23 Dividends Declared (Dollars in Millions) Shareholders’ Equity (Dollars in Billions) Diluted Earnings Per Share 10 | Citizens Business Bank 2023 $7.2 $48.6 $5.2 $59.3 $8.9 $7.6 2019 20 21 22 23 2019 20 21 22 23 2019 20 21 22 23 Noninterest Bearing Deposits (Dollars in Billions) Noninterest Income 2 (Dollars in Millions) Total Loans (Dollars in Billions) 2 Excludes gain on sale of loans, securities, branches, and gain on eminent domain. Efficiency Ratio 3 40.16% 41.40% 41.09% 38.98% 42.00% 2019 2020 2021 2022 2023 3 Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. Net Earnings (Dollars in Millions) 2023 2022 2021 2020 2019 $221.4 $207.8 Citizens Business Bank 2023 | 11 12 | Citizens Business Bank 2023 12 | Citizens Business Bank 2023Valued Customers Our founders understood that building long-lasting, genuine relationships with our customers would lead to successful outcomes for the customer and the Bank. For over 49 years, we have focused on the power of relationship banking to help set us apart from other financial services companies. We strive to build long-term relationships by getting to personally know our customers and providing superior financial solutions to help guide their business to success. Citizens Business Bank 2023 | 13 Citizens Business Bank 2023 | 13Intertex Companies Valued Customer Since 2015 Intertex General Contractors was founded in 1982 out of Valencia, California, as a construction business focused on commercial and industrial construction management. Dale Donohoe, CEO, later formed Intertex Property Advisors as a property management business to focus on the development and management of retail, industrial, and office properties. Today, both companies are known by the name Intertex Companies. Finding a long-term banking partner was an unexpected challenge for Intertex. “The bank we started with in 1982 got rid of middle market banking, so we left. Then, the next bank we moved to went out of business,” explains Dale. In 2015, Dale reached out to Citizens Business Bank to let them know his latest bank had just announced that it was also discontinuing middle market banking, and Intertex Companies was in search of a new banking partner. After the ordeal of moving from bank to bank, Dale was looking for a financial services company with a history of strength that could handle Intertex’s banking needs well into the future. He chose Citizens Business Bank for its record as a top-performing bank and its primary focus on relationship banking. The partnership between Intertex Companies and Citizens Business Bank has been going strong for nearly a decade, and Dale is pleased with the results and the personalized service he has received. “The team knows us, knows our business, and knows me.” Commercial Lending for real estate development has enabled Intertex Companies to expand their footprint throughout California. A Working Capital Line of Credit provides Dale’s team with the short-term financing necessary to help keep operations running smoothly. “There’s no surprises in our day-to-day banking, and that’s perfect,” says Dale. “Everything is handled like it’s supposed to, and there’s never been an issue, which is important. It’s reassuring to know I don’t have to worry about my bank.” Pictured: Darcey Oldhafer, President, Intertex Property Advisors, Dale Donohoe, CEO, and Bob Lyon, President, Intertex General Contractors “Citizens Business Bank has taken care of us.” Citizens Business Bank 2023 | 15“We get the big bank products, while still getting the small bank service.” 16 | Citizens Business Bank 2023 Xponential Fitness Valued Customer Since 2017 Anthony Geisler created Xponential Fitness in 2017 with the intent to grow the brand into a global fitness company. Xponential’s success has been remarkable in the last five years, and Anthony expects the company to double in size in the next five years. As the largest boutique fitness company in the world, Xponential Fitness consists of 11 boutique health and wellness brands across 23 countries. They open a new store every 15 hours, adding to more than 3,000 total locations. Anthony has maintained a banking relationship with Citizens Business Bank since his company’s inception, and he is appreciative of the personalized service he frequently receives. “It’s normal for Bryan Reese, our Relationship Manager, to stop by our office just to check in,” comments Anthony. “I feel like we have an in-house banker. We like the hometown, small-business local feel of Citizens Business Bank. We get that from our Relationship Manager.” Xponential Fitness uses a full suite of Treasury Management solutions, including Remote Deposit Capture for conveniently depositing checks and Positive Pay services that help Anthony’s team prevent check fraud. When Xponential is looking to open a new Line of Credit, Anthony has reassurance that he can call his Relationship Manager any time to initiate the process. Citizens Business Bank has been there for Anthony and Xponential every step of the way, from providing financial services that have supported Xponential’s acquisitions, to meeting their specific banking needs when the private company went public in 2021. With ongoing support from the Bank, Xponential Fitness plans to continue their impressive growth well into the future. Pictured: Anthony Geisler, Founder & CEO Citizens Business Bank 2023 | 17 Citizens Business Bank 2023 | 17 Oak Creek Dairy Valued Customer Since 2019 The De Hoog family has been operating dairy farms in California since the 1950s. Their wholesale dairy farm business originally started in Artesia, California before relocating to a 38-acre facility in Chino, California. In 2019, Joe De Hoog, partner in Michael De Hoog Dairy, LP now doing business as Oak Creek Dairy, had grown weary of the large bank they used for their day-to-day operations, which was winding down its involvement in agriculture. Joe, along with his wife Joy, were looking for a banking partner that understood their industry and was familiar with all of the financial services required for a dairy farm business, while assisting in their ongoing growth. The De Hoog family met with Citizens Business Bank’s Dairy & Livestock Industries Group in 2018 to discuss the future of their dairy farm, beginning a new business banking relationship in early 2019. A 1031 Exchange for the De Hoog’s facility in Chino allowed the family to purchase a 700-acre dairy farm in Merced, California, in addition to leasing another 650 acres nearby. “The team is knowledgeable about costs and needs in the dairy industry,” says Joe. “They explained to us that a lot can happen on a new dairy, and their team worked with us to prepare for the unexpected.” Oak Creek Dairy began implementing services that were specifically tailored to a newly opened and growing dairy farm, starting with an increased Line of Credit. “Without their advice,” adds Joe, “we’d be struggling.” Today, Oak Creek Dairy encompasses 865 acres of farmland with more than 6,000 animals under their care, including 3,300 mature cows. The dairy farm relies on a Dairy Operating Line of Credit, Equipment Term Loans, and Online Banking to keep their day-to-day operations running smoothly. As the De Hoog family continues to grow their dairy business, they plan to work closely with the Dairy & Livestock Industries Group for all of their business banking needs. Pictured: Joe De Hoog, Managing Partner, and wife, Joy De Hoog 18 | Citizens Business Bank 2023 “Every time I go to the Dairy & Livestock Industries Group, it’s been a positive experience.” Citizens Business Bank 2023 | 19 Citizens Business Bank 2023 | 19“Our Relationship Manager was instrumental in “Our Relationship Manager was instrumental helping us put things together.” in helping us put things together.” Greg’s Petroleum Service Valued Customer Since 2009 Greg’s Petroleum Service opened in 1961 when Ron Mariani’s father-in-law, Harold “Greg” Gregory, purchased an oil distributor in Delano, California. Ron Mariani, President & CEO, started working for the company as a fuel truck driver in 1979, before eventually buying the business himself after his father-in-law retired in 1990. In the decades that followed, the company experienced significant growth under Ron’s leadership. Today, Greg’s Petroleum Service consists of four segments: the fuel delivery business, a dedicated lubricants supplier, a cardlock program for fleet fueling, and the retail gasoline business. In 2009, Citizens Business Bank acquired Greg’s Petroleum Service’s long-time bank. “We were suddenly a customer of Citizens Business Bank,” says Ron. “We read up on the Bank, and I asked around because I was unfamiliar with the company. I kept hearing, ‘You’re in great hands. Stick with them.’ So, we did. And it continued to grow into a great relationship.” Ron’s first goal after moving over to Citizens Business Bank was to renew all of his companies’ Lines of Credit. He worked closely with his Relationship Manager to successfully obtain the renewals. When Ron was ready to expand to a new facility in Bakersfield, California, he reached out to the Bank again to secure Commercial Real Estate Financing. “Our Relationship Manager really helps us when we are doing a difficult, complicated loan,” mentions Ron. “They were instrumental in helping us put things together.” Acquisition Financing allowed Greg’s Petroleum Service to purchase another oil company in order to grow their geographic footprint. An Asset-Based Line of Credit and Equipment Financing were vital to their ability to keep operations running smoothly. As Greg’s Petroleum Service continues their growth, Ron plans to continue going to Citizens Business Bank for their long-term banking and lending needs. Pictured: Ron Mariani, President & CEO, and Greg Mariani, General Manager Citizens Business Bank 2023 | 21Akash Management Valued Customer Since 2011 Akash Management LLC was formed in 2014 to oversee operations of local franchise restaurants such as Carl’s Jr., Pieology Pizzeria, Wingstop, and others. Later that same year, Amir Siddiqi, Owner & CEO, was already looking to expand the business. Amir had established a relationship with Citizens Business Bank in 2011 when he helped his friend obtain a loan for their restaurant. When the time came to open accounts for his own business, Amir recalled his positive experience and reached out to his contact at the Bank. “We met with the Relationship Manager, and he asked us all the right questions to help us build our business model,” says Amir. With just five restaurants under their control in 2014, Akash Management obtained Commercial Real Estate Financing for their continued growth and expansion. Amir’s venture quickly saw success, and the business grew to over 150 restaurants in under two years. Akash Management works with other banks too, which gives Amir perspective on his relationship with Citizens Business Bank. “At Citizens Business Bank, I can text or call our Relationship Manager and even the CEO just to congratulate one another on a big win. No other bank I know comes close to that. They really value relationships.” Today, Akash Management operates more than 250 restaurants along the West Coast. They use a full suite of Treasury Management services for each of their locations, which helps to efficiently manage cash flow and prevent fraud. Akash Management also maintains Commercial Financing for their continued expansion and acquisition of new restaurants. “The Bank knows you,” explains Amir. “They understand how we operate and how our business will look in six months. They’re investing with us.” Pictured: Amir Siddiqi, Owner & CEO, and Jazmyn Carpenter, Accounting Manager “The Bank treats you as a business partner and understands what you do.” Citizens Business Bank 2023 | 23“It feels like Citizens Business Bank is in the customer’s corner. They go to bat for us.” 24 | Citizens Business Bank 2023 M.D. Atkinson Company, Inc. Valued Customer Since 2000 Headquartered in Bakersfield, California, M.D. Atkinson Company, Inc. serves as a third- party fee manager for property management. They manage properties throughout Southern California and Central California for clients in office, retail, commercial, industrial, residential, and homeowners associations. M.D. Atkinson was founded in 1982 and has been a valued partner of Citizens Business Bank for more than 20 years. “I’ve known the CEO, Dave Brager, since he was a Regional Manager for the Central Valley,” says Melvin Atkinson, President & CEO of M.D. Atkinson. “Any time there’s an issue, Dave is on it.” In 2018, M.D. Atkinson purchased their largest competitor, a property management company. “The acquisition was a complex transition to get control of,” explains Mel, “but behind the scenes, our Relationship Manager, Scott Begin, made it extremely simple to transition the banking services. I was shocked at how smooth the process was.” As the company continues to grow, Mel’s team relies on Citizens Business Bank to provide customized financial solutions to fit their unique needs. M.D. Atkinson has implemented Treasury Management services, such as Remote Deposit Capture that enables the team to conveniently deposit incoming checks from the comfort of their offices. “We collect rent for lots of different clients, and we need the flexibility,” states Mel. M.D. Atkinson is also a customer of Citizens Business Bank’s Specialty Banking Group, where they have established Property Management accounts for services tailored to their industry. The business regularly opens trust accounts for a significant number of clients, and Mel had sought a way to make the process less time-consuming. “Our Relationship Manager got involved and made that a much smoother situation. They’ve been instrumental in streamlining the process,” says Mel. “The cooperation and customer service are what stands out the most to me.” Pictured: Melvin Atkinson, President & CEO Citizens Business Bank 2023 | 25 Citizens Business Bank 2023 | 2526 | Citizens Business Bank 2023 26 | Citizens Business Bank 2023 Services We’re in the business of helping our customers build their business. We achieve this by taking the time to learn about our customers, their businesses, and their long-term goals. Then, we identify the most relevant banking, lending, and investing solutions that would best fit their unique needs. Our approach allows us to offer our customers a customized banking experience tailored to their individual needs. Citizens Business Bank 2023 | 27 Citizens Business Bank 2023 | 27Banking Business Accounts Business Checking Business Savings Zero Balance Account Attorney Client Trust Investment Checking Premium Money Market CDARS® Business Sweep1 Analysis Business Plan Certificate of Deposit Fraud Prevention Check Positive Pay Reverse Positive Pay CardValet® Safe Deposit Box Positive Pay Payee Match ACH Positive Pay Payables Bill Pay Debit Card Wire Transfer Credit Card Samsung Pay Apple Pay® Commercial Card Zelle® for Small Business ACH Origination Tax Payment Services Google Pay™ $ Receivables Remote Deposit Capture Bill Pay Consolidation Image Cash Letter Smart Safe Advanced Credit ACH Origination Merchant Services Data Management Lockbox Cash Vault Services Mobile Deposit Business Online Banking Mobile Banking Disbursement Reporting Information Reporting E-Statements Image Services Personal Online & Cards Online Banking Bill Pay Mobile Banking Mobile Deposit E-Statements Checking Personal Checking 55 Checking Accounts Business Insights Account Reconcilement Electronic Data Interchange Debit Card Credit Card Samsung Pay Apple Pay® Personal Financial Management (PFM) Google Pay™ Safe Deposit Box CardValet® Zelle® Investment Checking Preferred Choice Checking Premium Money Market CDARS® Personal Savings Minor Trust Savings Certificate of Deposit Individual Retirement Account Health Savings Account Equal Housing Lender | Member FDIC | NMLS# 417441 1 Not Insured by FDIC or Any Other Government Agency Not Bank Guaranteed Not Bank Deposits or Obligations May Lose Value CDARS is a registered service mark of IntraFi Network LLC. CardValet is a registered trademark of Fiserv, Inc. Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license. Apple Pay is a registered trademark of Apple Inc. Samsung Pay is a registered trademark of Samsung Electronics Co., Ltd. Google Pay is a trademark of Google LLC. 28 | Citizens Business Bank 2023 Lending Business Revolving Lines of Credit Commercial Real Estate Lending Dairy & Livestock Asset-Based Lending Term Lending Equipment Financing Agricultural Lending Construction Lending Small Business Administration C-PACE Financing Municipal Financing Personal Citizens Home Lending Auto Financing Home Purchase Home Refinance Home Equity Line of Credit Equal Housing Lender | Member FDIC | NMLS# 417441 Citizens Business Bank 2023 | 29 Investing For more than 100 years, business owners and families in California have depended on the conscientious and disciplined wealth management strategies and seasoned experience available from CitizensTrust. CitizensTrust Wealth Management1 Asset Management Charitable Services Estate Planning CitizensTrust Investment Services2 Business & Succession Planning Financial Planning Personal Investing Retirement Planning 1 Citizens Business Bank is not a registered broker/dealer. Trust and Wealth Management services are provided by CitizensTrust Wealth Management. 2 Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Citizens Business Bank and CitizensTrust Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using CitizensTrust Investment Services, and may also be employees of Citizens Business Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Citizens Business Bank or CitizensTrust Investment Services. Securities and insurance offered through LPL or its affiliates are: Not Insured by FDIC or Any Other Government Agency Not Bank Guaranteed Not Bank Deposits or Obligations May Lose Value Citizens Business Bank provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information. 30 | Citizens Business Bank 2023 Industry Expertise Every industry is different, with unique needs and goals. Our financial expertise and successful track record enable us to specialize in providing powerful financial solutions for a wide range of industries. Industrial & Manufacturing Property Management Title & Escrow Agriculture Nonprofit Professional Services Medical Labor Management Fiduciary Services Dairy & Livestock International Services Government Citizens Business Bank 2023 | 31 32 | Citizens Business Bank 2023 32 | Citizens Business Bank 2023 Community Commitment At Citizens Business Bank, we are passionate about our communities, and it shows. Each year, our associates dedicate thousands of hours of their own time to local organizations and charitable causes in the communities we live and serve. 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. 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. $1.65 Million Total Amount Donated in 2023 Citizens Business Bank 2023 | 33 Citizens Business Bank 2023 | 33 Clearinghouse CDFI B BOLD(ER) Internship Program The purpose of the Clearinghouse Community Development Financial Institution (CCDFI) B BOLD(ER) Internship Program is to invest in tomorrow’s leaders. Clearinghouse CDFI college interns benefit from exposure to a professional setting, access to positive role models, and receiving real-life job skills that help build a solid foundation for future success. Citizens Business Bank was the Legacy funder for the B BOLD(ER) Internship Program, providing capacity-building resources to develop and launch the program, and hosted the program’s first onsite intern in 2022. The program offers paid internships and scholarships to low-to-moderate income college students. The Bank hosted another intern in 2023 and has already agreed to host a third onsite intern during the summer of 2024. College students participate in a combination of virtual workshops presented by subject-matter experts and on-site experiences. Workshop topics include career exploration/preparedness, financial wellness, community development, and office skills. Tasks may include research, outreach, marketing, affordable homeownership work, networking, loan servicing, Community Reinvestment Act documentation, and more. In addition, interns interact with dozens of professionals to begin their network. The internship may be eligible for academic credit depending on the academic program’s internship criteria. Youth Business Alliance Financial Sports Program Financial education is a preventative measure that can lead to more responsible financial management, helping young people make wiser decisions about debt, savings, credit, and investing. Like football, successful financial management requires strategy, discipline, and endurance. In 2023, Citizens Business Bank continued its partnership with Youth Business Alliance to grow the Financial Sports Program, teaching personal financial management principles to low-to-moderate income youth. The Financial Sports Program is presented as an interactive, educational video game designed to help students test their knowledge of personal finance in a fun, competitive, learning environment using football. The program continues to receive enthusiastic positive feedback from students and school administrators as an effective learning model. Mission Community Services Corporation (MCSC) Kern Women’s Business Center California Hispanic Chamber of Commerce (CHCC) Programa Hispano MCSC hosts the Women’s Business Center in Kern The CHCC and its network of over 100 chambers County by helping women, low-income, minority, and and associations represent the interest of California’s nonprofit businesses gain the knowledge they need 815,000 Hispanic-owned businesses. Through its to start and run successful businesses. They offer advocacy, education, and empowerment programs, business start-up classes, monthly workshops, and the CHCC brings California’s small business free business consulting with special assistance for community’s issues and needs to the forefront of women, low-income, minority, veterans, and nonprofit the California and National economic agendas. businesses. The Bank provided $10,000 in funding The Bank provided $10,000 in funding to support to support MCSC’s small business opportunities for the California Hispanic Regional SBDC - Programa potential entrepreneurs and small business owners Hispano. Bank associates also volunteered, providing to become self-sustaining, successful contributors to in-person and virtual small business and financial their communities. Bank associates also volunteered education workshops in 2023. to provide small business and financial education workshops to the participants. 34 | Citizens Business Bank 2023 Big Brothers Big Sisters Workplace Mentoring Program Inland SoCal United Way 211 Careers Program The Bank is building the next-generation workforce Entering its fourth year of collaboration, the Bank supporting Big Brothers Big Sisters (BBBS) of Orange continues to partner with Inland SoCal United Way County and the Inland Empire by providing low- (ISCUW) and its 211 Careers Program to assist low- to-moderate income college students a Workplace to-moderate income individuals to enter or re-enter Mentoring Program. Focused on developing financial the workforce by providing one-on-one resume literacy skills, increasing soft skills, and supporting reviews along with mock interview sessions. The college/career readiness, Bank executive officers Bank provided $32,500 in donations in 2023 in and managers volunteer to educate, teach, and support of this critical program to residents in the coach college students about banking and the Inland Empire. Some of the participants have been financial services industry during an eight-month previously involved in the criminal justice system program. Various volunteer associates from the Bank and require special attention to help them return coordinated their schedules to provide individual to the workforce. Each month, the Bank makes mentoring to each of the low-to-moderate income ten sessions available to ISCUW, with two Bank youth. This unique program enables students to volunteers per session to help address ISCUW’s be given one-on-one attention with a mentor who clients’ individual needs. Citizens Business Bank provides professional support. Two Bank associates associates participated in over 450 hours of were recognized by BBBS as Mentors of the Year for volunteer service under this program. their outstanding service throughout 2023. Community Service Employment Training (CSET) Biz Hub The Bank provided a $15,000 donation to support CSET’s micro and small business development program, Biz Hub, and a new Workforce and Business Lab for CSET’s Navigation Center. The Biz Hub program is a unique hybrid program to help low-income Tulare County entrepreneurs achieve their dreams by providing business development assistance, financial literacy education, coaching, micro-loans, and resource navigation services in several languages. The Business Lab also assists low-income individuals with workforce development needs and will prepare them to gain job opportunities and become self-sufficient. The Workforce and Business Lab provides computers, presentation equipment, and office supplies for job seekers to create resumes and participate in workshops taught by CSET’s professional Career Coaches, preparing them to re-enter the 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 Borba Cup is awarded annually to an associate who exemplifies our Core Values and demonstrates a deep commitment to high-quality customer service. For 2023, the Borba Cup was awarded to Francisco Estrada, Assistant Vice President and Service Manager for the Camarillo Business Financial Center. Citizens Business Bank 2023 | 35 Leadership Team With an average banking experience of more than 36 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 unique 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. David A. Brager President Chief Executive Officer E. Allen Nicholson Executive Vice President Chief Financial Officer David C. Harvey Executive Vice President Chief Operating Officer David F. Farnsworth Executive Vice President Chief Credit Officer Richard H. Wohl Executive Vice President General Counsel R. Daniel Banis Executive Vice President CitizensTrust Yamynn De Angelis Executive Vice President Chief Risk Officer Ted J. Dondanville Executive Vice President Banking Division Hector G. Gutierrez, Esq. Executive Vice President Deputy Chief Credit Officer Susan M. Mlot Executive Vice President Operations Timothy B. Noone Executive Vice President Specialty Banking G. Larry Zivelonghi Executive Vice President Dairy & Livestock Industries 36 | Citizens Business Bank 2023 Jeffrey S. Boyer Senior Vice President Los Angeles Region-North Michael K. Currie Senior Vice President Information Technology Gilbert W. Estrada Senior Vice President Inland Empire Region Donald E. Evenson Senior Vice President CitizensTrust Richard M. Favor Senior Vice President Central Coast Region Deborah G. Gallagher Senior Vice President Small Business Administration Derrick I. Hong Senior Vice President Internal Audit Joyce Y. Kwon Senior Vice President Human Resources Daniel Limon Senior Vice President Specialty Lending Michael B. Mulcahy Senior Vice President Los Angeles Region-Metro Rudy I. Ramirez Senior Vice President Information Security Mark C. Richardson Senior Vice President Real Estate Banking LaVon Short Senior Vice President Treasury Management 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 Citizens Business Bank 2023 | 37 38 | Citizens Business Bank 2023 38 | Citizens Business Bank 2023Financial Summary Citizens Business Bank 2023 | 39 Citizens Business Bank 2023 | 39Consolidated Balance Sheets CVB Financial Corp. and Subsidiaries (Dollars in thousands, except share amounts) Assets Cash and due from banks 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 $3,398,942 at December 31, 2023, December 31, 2023 2022 $ 171,396 $ 158,236 109,889 281,285 8,216 45,225 203,461 9,553 and $3,755,297 at December 31, 2022) 2,956,125 3,255,211 Investment securities held-to-maturity (with fair value of $2,082,881 at December 31, 2023, and $2,155,587 at December 31, 2022) Total investment securities Investment in stock of Federal Home Loan Bank (FHLB) Loans and lease finance receivables Allowance for credit losses Net loans and lease finance receivables Premises and equipment, net Bank owned life insurance (BOLI) Accrued interest receivable Intangibles Goodwill Income taxes Other assets 2,464,610 5,420,735 18,012 8,904,910 (86,842) 8,818,068 44,709 308,706 48,994 15,291 765,822 163,968 127,187 2,554,301 5,809,512 27,627 9,079,392 (85,117) 8,994,275 46,698 255,528 46,692 21,742 765,822 186,684 108,946 Total assets $ 16,020,993 $ 16,476,540 40 | Citizens Business Bank 2023 Liabilities and Stockholders’ Equity Liabilities: Deposits: Noninterest-bearing Interest-bearing Total deposits Customer repurchase agreements Other borrowings Deferred compensation Accrued interest payable Other liabilities Total liabilities Commitments and Contingencies Stockholders’ Equity December 31, 2023 2022 $ 7,206,175 $ 8,164,364 4,227,467 4,671,881 11,433,642 12,836,245 271,642 2,070,000 22,335 23,268 122,134 565,431 995,000 22,092 433 108,822 13,943,021 14,528,023 Common stock, authorized, 225,000,000 shares without par; issued and outstanding 139,344,981 at December 31, 2023, and 139,818,703 at December 31, 2022 Retained earnings Accumulated other comprehensive (loss) income, net of tax Total stockholders’ equity 1,288,899 1,112,642 (323,569) 2,077,972 1,300,466 1,002,847 (354,796) 1,948,517 Total liabilities and stockholders’ equity $ 16,020,993 $ 16,476,540 Citizens Business Bank 2023 | 41 Consolidated Statements of Earnings CVB Financial Corp. and Subsidiaries (Dollars in thousands, except per share amounts) 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 Total interest income Interest expense: Deposits Borrowings and customer repurchase agreements Total interest expense Net interest income before provision for credit losses Provision for credit losses Net interest income after provision for credit losses Noninterest income: Service charges on deposit accounts Trust and investment services Bankcard services BOLI income Gain on sale of building, net Other Total noninterest income Year Ended December 31, 2023 2022 $ 448,295 $ 389,192 83,563 54,750 138,313 1,861 17,861 606,330 51,535 66,805 118,340 487,990 2,000 485,990 20,219 12,556 1,627 12,751 - 12,177 59,330 68,508 49,048 117,556 1,207 6,713 514,668 6,830 2,325 9,155 505,513 10,600 494,913 21,382 11,518 1,470 5,356 2,717 7,546 49,989 42 | Citizens Business Bank 2023 Noninterest expense: Salaries and employee benefits Occupancy and equipment Professional services Computer software expense 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 Year Ended December 31, 2023 2022 139,191 22,109 9,082 14,051 6,756 (500) 6,452 - 32,745 229,886 315,434 93,999 131,596 22,737 9,362 13,503 6,296 - 7,566 6,013 19,482 216,555 328,347 92,922 $ 221,435 $ 235,425 $ 1.59 $ 1.67 $ 1.59 $ 1.67 Cash dividends declared per common share $ 0.80 $ 0.77 Citizens Business Bank 2023 | 43 Locations Los Angeles County Arcadia 626.445.7350 Beach Cities (El Segundo) 310.802.4015 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 La Cañada Flintridge 818.952.6085 Lancaster 661.723.2000 Monrovia 626.303.4661 Pasadena 626.405.4915 Pomona 909.629.4151 San Fernando Valley (Encino) 818.905.5760 San Gabriel 626.286.3166 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 Bernardino County Riverside County Apple Valley 760.961.6900 Chino 909.627.7316 Fontana 909.350.8080 Ontario Airport 909.980.1080 Orange County Brea 714.996.8150 Fullerton 714.773.0600 Huntington Beach 714.622.6060 Laguna Beach 949.494.9474 Laguna Hills (Spectrum) 949.581.4444 44 | Citizens Business Bank 2023 Redlands 909.307.8100 San Bernardino (Tri-City) 909.888.6363 Upland 909.946.6921 Corona 951.734.6120 Riverside 951.683.2112 San Diego County San Diego (Carmel Valley) 858.847.6500 San Diego (Downtown) 858.350.8650 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 Ventura County Santa Barbara County Camarillo 805.482.7600 Oxnard 805.485.7600 Ventura 805.477.7600 Westlake Village 805.557.7600 Santa Barbara 805.324.5920 Kern County Tulare County Fresno County Bakersfield (Downtown) 661.281.0300 Bakersfield (Rosedale) 661.589.9040 Bakersfield (Stockdale) 661.281.0325 Delano 661.725.8888 Porterville 559.306.1300 Tulare 559.687.3350 Visalia 559.622.9000 Fresno 559.261.0222 Kingsburg 559.802.1070 Stanislaus County San Joaquin County Modesto 209.353.2399 Lodi 209.334.7400 Stockton 209.851.3740 Madera County Yolo County Sutter County Madera 559.664.9222 West Sacramento 916.830.3560 Yuba City 530.674.8900 CitizensTrust Newport Beach 949.440.5231 Ontario 909.483.4392 Pasadena 626.564.6263 Visit cbbank.com/locations for more information Citizens Business Bank 2023 | 45 Corporate Information Transfer Agent Computershare 150 Royall Street, Suite 101 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. There were approximately 139,374,072 shares of common stock outstanding with 1,916 registered shareholders of record as of February, 9, 2024. Stockholder Information Stockholders may obtain, without charge, Form 10-K of CVB Financial Corp., copies of this annual report, and interim reports by visiting our website at investors.cbbank.com Mailing Address CVB Financial Corp. P O Box 5 1 0 0 0 Ontario, CA 91761 Street Address 701 N Haven Avenue, Suite 350 Ontario, CA 91764 909.980.4030 Phone: 877.422.2265 cbbank.com Equal Housing Lender | Member FDIC | NMLS# 417441 46 | Citizens Business Bank 2023 701 N Haven Avenue | Ontario, CA 91764 | 909.980.4030 | cbbank.com 

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