Market Overview

CVB Financial Corp. Reports Earnings for the Second Quarter 2017

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CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business
Bank ("the Company"), announced earnings for the quarter ended June 30,
2017.

CVB Financial Corp. reported net income of $28.4 million for the
quarter ended June 30, 2017, compared with $28.5 million for the first
quarter of 2017 and $25.5 million for the second quarter of 2016. This
represents a decrease of $131,000 over the prior quarter and an increase
of $2.9 million from the second quarter of 2016. Diluted earnings per
share were $0.26 for the second quarter, compared to $0.26 for the prior
quarter and $0.23 for the same period last year.

Chris Myers, President and CEO of Citizens Business Bank, commented, "I
am very pleased with our financial results for the first six months of
2017. Despite substantial expenses related to our acquisition and
integration of Valley Business Bank and the relocation of our
centralized operations and technology building, we still achieved record
earnings compared to the first six months of any prior calendar year."

Net income of $28.4 million for the second quarter of 2017 produced an
annualized return on beginning equity of 10.88%, an annualized return on
average equity of 10.73% and an annualized return on average assets of
1.35%. Net income for the second quarter of 2016 produced an annualized
return on average equity of 10.39% and an annualized return on average
assets of 1.28%. The efficiency ratio for the second quarter of 2017 was
45.38%, compared to 45.78% for the second quarter of 2016.

Net income totaled $56.9 million for the six months ended June 30, 2017.
This represented an $8.0 million, or 16.30%, increase from the prior
year. Earnings for the first six months of 2017 included $5.5 million in
loan loss provision recapture, compared with no loan loss provision
recapture for the first six months of 2016. Diluted earnings per share
were $0.52 for the six months ended June 30, 2017, compared to $0.45 for
the same period of 2016. Net income for the six months ended June 30,
2017 produced a return on beginning equity of 11.58%, a return on
average equity of 11.05% and a return on average assets of 1.39%. The
efficiency ratio for the six months ended June 30, 2017 was 45.68%,
compared to 46.99% for the first six months of 2016.

Net interest income before recapture of loan loss provision was $70.5
million for the second quarter, which was a $5.1 million, or 7.72%,
increase over the first quarter of 2017 and a $4.5 million, or 6.86%,
increase over the second quarter of 2016. Total interest income and fees
on loans for the second quarter of 2017 of $53.6 million increased $5.0
million, or 10.22%, from the first quarter of 2017 and $3.4 million, or
6.68%, from the second quarter of 2016. Total investment income
increased $183,000, or 1.01%, from the first quarter of 2017 and $1.6
million, or 9.36%, from the second quarter of 2016. Interest expense
grew by less than $100,000 in comparison with both the first quarter of
2017 and the second quarter of 2016.

During the second quarter of 2017, $1.0 million of loan loss provision
was recaptured, compared to $4.5 million recaptured for the prior
quarter and zero for the same period last year.

Noninterest income was $10.8 million for the second quarter of 2017,
compared with $8.7 million for the first quarter of 2017 and $9.3
million for the second quarter of 2016. For the first six months of
2017, noninterest income was $19.5 million, compared to $18.0 million
for the same period of 2016. The increase of $2.1 million over the first
quarter was primarily due to $775,000 in tax free income on the death
benefit of a former director included in our BOLI policies, $443,000 of
recoveries on American Security Bank ("ASB") loans that were charged off
prior to the acquisition, a $402,000 gain on sale of an investment
security, and a $317,000 increase in trust and investment management
fees. The year-over-year increase of $1.5 million includes the impact of
the death benefit, gain on sale of security, and recoveries from ASB, as
well as offsetting declines due to a $256,000 decrease in swap fee
income and a $272,000 net gain on the sale of our Porterville branch
during the second quarter of 2016. The $1.5 million increase from the
first six months of 2016 to 2017 was the result of a $913,000 increase
in BOLI income, including the noted death benefit, a $300,000 increase
in merchant and bankcard fees, and a $200,000 increase in trust and
wealth management fees. The first six months of 2016 also included a
$1.1 million net gain on the sale of loans during the first quarter of
that year.

Noninterest expense for the second quarter of 2017 was $36.9 million,
compared to $34.1 million for the first quarter of 2017 and $34.4
million for the second quarter of 2016. Both the $2.8 million quarter
over quarter increase and the $2.4 million increase over the second
quarter of 2016 were primarily the result of increases in occupancy and
equipment costs, higher levels of professional service expense, and
increased acquisition related expenses. The increase in occupancy and
equipment expense was due to expenses associated with our new operations
center and the four additional branches acquired from Valley Commerce
Bancorp ("VCBP"). The increase in professional services included a
$267,000 increase in legal expense compared to the prior quarter and a
$609,000 increase over the prior year. The increase from the prior year
was impacted by $375,000 in recoveries of legal expense on nonperforming
loans during the second quarter of 2016. As a percentage of average
assets, noninterest expense was 1.76% compared to 1.70% for the first
quarter of 2017 and 1.73% for the second quarter of 2016.

Noninterest expense of $71.0 million for the first six months of 2017
was $2.2 million higher than the prior year period. The year-over-year
increase was primarily due to expenses related to the acquisition of
Valley Business Bank and the build-out and occupation of our new
operations and technology building. Acquisition related expenses were
$1.9 million, up $722,000 from the prior year. Occupancy expense
increased $400,000 and will continue to be impacted over the next two
quarters by the consolidation of three branches in the Central Valley
resulting from the integration of Valley Business Bank. Increases in
professional services included $515,000 in higher legal expenses.
Offsetting these expense increases were lower regulatory assessment fees
of $665,000 and $361,000 in reduced OREO expenses. As a percentage of
average assets, noninterest expense was 1.73% for the six months ended
June 30, 2017, compared to 1.76% for the six months ended June 30, 2016.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $70.5 million
for the second quarter of 2017, compared to $65.4 million for the first
quarter of 2017 and $66.0 million for the second quarter of 2016. Our
net interest margin (tax equivalent) was 3.63% for the second quarter of
2017, compared to 3.51% for the first quarter of 2017 and 3.57% for the
second quarter of 2016. Total average earning asset yields (tax
equivalent) were 3.74% for the second quarter of 2017, compared to 3.62%
for the first quarter of 2017 and 3.68% for the second quarter of 2016.
Total cost of funds of 0.12% for the second quarter of 2017 remained
unchanged from both the first quarter of 2017 and the second quarter of
2016. The increase in the net interest margin over the first quarter of
2017 was the result of an increase in earning asset yield that resulted
from a combination of a 13 basis point increase in loan yields, a 2
basis point increase in tax equivalent yields on investments, and the
change in mix of earning assets represented by an increase in loans as a
percentage of earning assets growing from 57% in the first quarter to
59% in the latest quarter. Likewise, the increase in the net interest
margin over the second quarter of 2016 included an increase in loans as
a percentage of earning assets growing from 55% to 59%. The tax
equivalent yield on investments grew by 4 basis points over the same
period in 2016, while the yield on loans declined by 18 basis points.
Loan yields in the second quarter of 2017 were elevated by 3 basis
points as a result of recognizing interest on nonaccrual loans that paid
in full. During the second quarter of 2016, there were three
nonperforming TDR loans that were paid in full resulting in the
recognition of $2.6 million of interest income, which positively
impacted the tax-equivalent net interest margin by 12 basis points for
the quarter. Quarter-over-quarter, average loans grew by $264.4 million
and year-over-year they grew by $453.2 million. Total investment
securities were lower on average by $4.1 million compared to the first
quarter of 2017, but grew by $175.9 million on average over the prior
year.

Income Taxes

Our effective tax rate for the three and six months ended June 30, 2017
was 37.49% and 36.75%, respectively, compared with 37.00% for the six
months ended June 30, 2016. The effective tax rate for 2017 was impacted
by the tax effects related to the adoption of Accounting Standards
Update ("ASU") No. 2016-09, Compensation - Stock Compensation (Topic
718): Improvements to Employee Share-Based Payment Accounting,
which
resulted in the recognition of excess tax benefits of approximately $1.3
million in our provision for income taxes, rather than as an adjustment
of paid-in capital. Our estimated annual effective tax rate also varies
depending upon the level of tax-advantaged income as well as available
tax credits.

Assets

The Company reported total assets of $8.42 billion at June 30, 2017.
This represented an increase of $344.5 million, or 4.27%, from total
assets of $8.07 billion at December 31, 2016. Interest-earning assets of
$7.92 billion at June 30, 2017 increased $274.8 million, or 3.60%, when
compared with $7.64 billion at December 31, 2016. The increase in
interest-earning assets was primarily due to a $292.6 million increase
in total loans and a $47.9 million increase in interest-earning balances
due from the Federal Reserve. This was partially offset by a $42.9
million decrease in investment securities and a $22.8 million decrease
in interest-earning balances due from depository institutions.

Total assets of $8.42 billion at June 30, 2017 increased $105.9 million,
or 1.27%, from total assets of $8.31 billion at June 30, 2016.
Interest-earning assets totaled $7.92 billion at June 30, 2017, an
increase of $9.1 million, or 0.11%, when compared with earning assets of
$7.91 billion at June 30, 2016.

Investment Securities

Total investment securities were $3.14 billion at June 30, 2017, a
decrease of $42.9 million, or 1.35%, from $3.18 billion at December 31,
2016 and an increase of $166.9 million, or 5.61%, from $2.97 billion at
June 30, 2016.

At June 30, 2017, investment securities held-to-maturity ("HTM") totaled
$869.8 million, a $41.9 million, or 4.60%, decrease from December 31,
2016 and a $145.4 million, or 20.07% increase from June 30, 2016.

At June 30, 2017, investment securities available-for-sale ("AFS")
totaled $2.27 billion, inclusive of a pre-tax net unrealized gain of
$18.2 million. AFS securities declined by $956,000, or 0.04%, from
December 31, 2016, and grew by $21.5 million, or 0.96%, from June 30,
2016.

Combined, the AFS and HTM investments in mortgage backed securities
("MBS") and collateralized mortgage obligations ("CMOs") totaled $2.62
billion at June 30, 2017, compared to $2.62 billion at December 31, 2016
and $2.33 billion at June 30, 2016. Virtually all of our MBS and CMOs
are issued or guaranteed by government or government sponsored
enterprises, which have the implied guarantee of the U.S. Government.

Our combined AFS and HTM municipal securities totaled $351.1 million as
of June 30, 2017. These securities are located in 29 states. Our largest
concentrations of holdings are located in Minnesota at 20.31%,
Massachusetts at 9.47%, Texas at 8.80%, and New York at 5.62%.

In the second quarter of 2017, we purchased $119.0 million of MBS/CMO
securities with an average yield of approximately 2.40%. We also
purchased $18.5 million of municipal securities with an average
tax-equivalent yield of approximately 3.87%.

Loans

Total loans and leases, net of deferred fees and discounts, of $4.69
billion at June 30, 2017 increased by $72.2 million, or 1.56%, from
March 31, 2017. The increase in total loans was principally due to
growth of $40.5 million in commercial real estate loans, $16.5 million
in SBA loans, and $8.4 million in commercial and industrial loans.

Total loans and leases, net of deferred fees and discounts, of $4.69
billion at June 30, 2017 increased by $292.6 million, or 6.66%, from
December 31, 2016. The increase in total loans included $309.7 million
of loans acquired from VBB in the first quarter of 2017. Excluding the
acquired VBB loans, dairy & livestock and agribusiness loans decreased
by $108.3 million, primarily due to seasonal pay-downs. Excluding the
acquired VBB loans and the decrease in dairy & livestock and
agribusiness loans, loans increased by $90.9 million, or 2.24% overall,
for the first half of 2017.

Total loans and leases, net of deferred fees and discounts, of $4.69
billion at June 30, 2017 increased by $449.8 million, or 10.61%, from
June 30, 2016.

Deposits & Customer Repurchase Agreements

Deposits of $6.70 billion and customer repurchase agreements of $546.1
million totaled $7.24 billion at June 30, 2017. This represents a
decrease of $163.9 million, or 2.21%, when compared with total deposits
and customer repurchase agreements of $7.41 billion at March 31, 2017.
Deposits and customer repurchase agreements increased by $330.6 million,
or 4.78%, when compared with total deposits and customer repurchase
agreements of $6.91 billion at December 31, 2016 and increased by $66.8
million, or 0.93%, when compared with $7.18 billion in total deposits
and customer repurchase agreements at June 30, 2016. Time deposits
declined by $284.2 million year-over-year, as the Bank elected to not
renew certain non-core time deposits.

Noninterest-bearing deposits were $3.93 billion at June 30, 2017, an
increase of $255.9 million, or 6.96%, when compared to December 31, 2016
and an increase of $263.2 million, or 7.18%, compared to $3.67 billion
at June 30, 2016. At June 30, 2017, noninterest-bearing deposits were
58.67% of total deposits, compared to 58.22% at December 31, 2016 and
55.67% at June 30, 2016.

The increase in total deposits from the end of 2016 included $172.5
million of noninterest-bearing deposits and $361.8 million of total
deposits acquired from VBB during the first quarter of 2017.

Our average cost of total deposits was 0.09% for the quarter ended June
30, 2017, compared to 0.09% for the prior quarter and 0.10% for the same
period last year. Our cost of total deposits including customer
repurchase agreements was 0.11% for the quarters ending June 30, 2017
and 2016.

FHLB Advance, Other Borrowings and Debentures

At June 30, 2017, we had no short-term borrowings, compared to $53.0
million at December 31, 2016 and zero at June 30, 2016.

At June 30, 2017, we had $25.8 million of junior subordinated
debentures, unchanged from December 31, 2016 and June 30, 2016. These
debentures bear interest at three-month LIBOR plus 1.38% and mature in
2036.

Asset Quality

The allowance for loan losses totaled $60.2 million at June 30, 2017,
compared to $59.2 million at March 31, 2017, $61.5 million at December
31, 2016 and $60.9 million at June 30, 2016. The allowance for loan
losses was increased by net recoveries on loans of $2.0 million for the
second quarter of 2017 and was reduced by a $1.0 million loan loss
provision recapture for the second quarter of 2017. The allowance for
loan losses was 1.28%, 1.28%, 1.40%, 1.42%, and 1.44% of total loans and
leases outstanding, at June 30, 2017, March 31, 2017, December 31, 2016,
September 30, 2016, and June 30, 2016, respectively. The ratio as of the
most recent two quarters was impacted by the $309.7 million loans
acquired from Valley Business Bank that are recorded at fair market
value, without a corresponding loan loss allowance.

Nonperforming loans, defined as nonaccrual loans plus nonperforming TDR
loans, were $12.2 million at June 30, 2017, or 0.26% of total loans, and
included $4.6 million of loans acquired from VBB in the first quarter of
2017. This compares to nonperforming loans of $10.3 million, or 0.22% of
total loans, at March 31, 2017, $7.2 million, or 0.16% of total loans,
at December 31, 2016, and $17.5 million, or 0.41% of total loans, at
June 30, 2016. The $12.2 million in nonperforming loans at June 30, 2017
are summarized as follows: $7.0 million in commercial real estate loans,
$1.7 million in SBA loans, $1.1 million in commercial and industrial
loans, $963,000 in SFR mortgage loans, $829,000 in dairy & livestock and
agribusiness loans, and $771,000 in consumer and other loans. The $1.9
million increase in nonperforming loans quarter-over-quarter was
primarily due to a $1.3 million increase in nonperforming commercial
real estate loans, a $562,000 increase in SBA loans and a $552,000
increase in commercial and industrial loans. This was partially offset
by a $495,000 decrease in nonperforming dairy & livestock and
agribusiness loans.

We had $4.5 million in Other Real Estate Owned ("OREO") at both June 30,
2017 and December 31, 2016, compared to $6.0 million at June 30, 2016.
As of June 30, 2017, we had one OREO property, compared with three OREO
properties at June 30, 2016. There were no additions or sales of OREO
for the six months ended June 30, 2017.

At June 30, 2017, we had loans delinquent 30 to 89 days of $619,000.
This compares to $1.4 million at March 31, 2017, $436,000 at December
31, 2016, and $478,000 at June 30, 2016. As a percentage of total loans,
delinquencies, excluding nonaccruals, were 0.01% at June 30, 2017, 0.03%
at March 31, 2017, 0.01% at December 31, 2016, and 0.01% at June 30,
2016.

At June 30, 2017, we had $16.6 million in performing TDR loans, compared
to $19.7 million in performing TDR loans at March 31, 2017, $19.2
million in performing TDR loans at December 31, 2016, and $20.3 million
in performing TDR loans at June 30, 2016. In terms of the number of
loans, we had 24 performing TDR loans at June 30, 2017, compared to 25
performing TDR loans at March 31, 2017, 26 performing TDR loans at
December 31, 2016, and 31 performing TDR loans at June 30, 2016.

Nonperforming assets, defined as nonaccrual loans plus other real estate
owned, totaled $16.7 million at June 30, 2017, $14.9 million at March
31, 2017, $11.7 million at December 31, 2016, and $23.5 million at June
30, 2016. As a percentage of total assets, nonperforming assets were
0.20% at June 30, 2017, 0.17% at March 31, 2017, 0.14% at December 31,
2016, and 0.28% at June 30, 2016.

Classified loans are loans that are graded "substandard" or worse. At
June 30, 2017, classified loans totaled $93.4 million, compared to
$104.2 million at March 31, 2017, $108.3 million at December 31, 2016,
and $96.8 million at June 30, 2016. Total classified loans at June 30,
2017 included $7.3 million of classified loans acquired from VBB in the
first quarter of 2017. The quarter-over-quarter decrease was primarily
due to a $12.3 million decrease in classified dairy & livestock and
agribusiness loans and a $4.5 million decrease in classified commercial
real estate loans, partially offset by a $2.7 million increase in
classified SFR mortgage loans, a $2.7 million increase in classified
commercial and industrial loans, and a $1.5 million increase in
classified SBA loans.

CitizensTrust

As of June 30, 2017, CitizensTrust had approximately $2.81 billion in
assets under management and administration, including $2.12 billion in
assets under management. Revenues were $2.6 million for the second
quarter of 2017 and $4.9 million for the first six months of 2017,
compared to $2.5 million and $4.7 million, respectively, for the same
period of 2016. CitizensTrust provides trust, investment and brokerage
related services, as well as financial, estate and business succession
planning.

Corporate Overview

CVB Financial Corp. ("CVBF") is the holding company for Citizens
Business Bank. CVBF is the ninth largest bank holding company
headquartered in California with assets of approximately $8.4 billion.
Citizens Business Bank is consistently recognized as one of the top
performing banks in the nation and offers a wide array of banking,
lending and investing services through 54 banking centers and 3 trust
office locations serving the Inland Empire, Los Angeles County, Orange
County, San Diego County, Ventura County, Santa Barbara County, and the
Central Valley area of California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ
under the ticker symbol "CVBF." For investor information on CVB
Financial Corp., visit our Citizens Business Bank website at www.cbbank.com
and click on the "Investors"
tab.

Conference Call

Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT
on Thursday, July 20, 2017 to discuss the Company's second quarter 2017
financial results.

To listen to the conference call, please dial (877) 506-3368. A taped
replay will be made available approximately one hour after the
conclusion of the call and will remain available through August 3, 2017
at 6:00 a.m. PDT/9:00 a.m. EDT. To access the replay, please dial (877)
344-7529, passcode 10109508.

The conference call will also be simultaneously webcast over the
Internet; please visit our Citizens Business Bank website at www.cbbank.com
and click on the "Investors" tab to access the call from the site.
Please access the website 15 minutes prior to the call to download any
necessary audio software. This webcast will be recorded and available
for replay on the Company's website approximately two hours after the
conclusion of the conference call, and will be available on the website
for approximately 12 months.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto)
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including forward-looking
statements relating to the Company's current business plans and
expectations and our future financial position and operating results.
Words such as "will likely result", "aims", "anticipates", "believes",
"could", "estimates", "expects", "hopes", "intends", "may", "plans",
"projects", "seeks", "should", "will," "strategy", "possibility", and
variations of these words and similar expressions help to identify these
forward looking statements, which involve risks and uncertainties. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results, performance and/or achievements to differ
materially from those projected. These risks and uncertainties include,
but are not limited to, local, regional, national and international
economic and market conditions and political events and the impact they
may have on us, our customers and our assets and liabilities; our
ability to attract deposits and other sources of funding or liquidity;
supply and demand for real estate and periodic deterioration in real
estate prices and/or values in California or other states where we lend,
including both residential and commercial real estate; a sharp or
prolonged slowdown or decline in real estate construction, sales or
leasing activities; changes in the financial performance and/or
condition of our borrowers, depositors or key vendors or counterparties;
changes in our levels of delinquent loans, nonperforming assets,
allowance for loan losses and charge-offs; the costs or effects of
acquisitions or dispositions we may make, whether we are able to obtain
any required governmental approvals in connection with any such
acquisitions or dispositions, and/or our ability to realize the
contemplated financial or business benefits associated with any such
acquisitions or dispositions; our ability to realize cost savings and
business synergies in connection with our recent acquisition of Valley
Commerce Bancorp within expected time frames or at all; the effect of
changes in laws, regulations and applicable judicial decisions
(including laws, regulations and judicial decisions concerning financial
reforms, taxes, banking capital levels, consumer, commercial or secured
lending, securities and securities trading and hedging, bank operations,
compliance, fair lending, employment, executive compensation, insurance,
cybersecurity, vendor management and information technology) with which
we and our subsidiaries must comply or believe we should comply or which
may otherwise impact us, including additional legal and regulatory
requirements to which we may become subject in the event our total
assets exceed $10 billion; changes in estimates of future reserve
requirements and minimum capital requirements based upon the periodic
review thereof under relevant regulatory and accounting requirements,
including changes in the Basel Committee framework establishing capital
standards for credit, operations and market risk; the accuracy of the
assumptions and estimates and the absence of technical error in
implementation or calibration of models used to estimate the fair value
of financial instruments; inflation, changes in market interest rates,
securities market and monetary fluctuations; changes in
government-established interest rates or monetary policies; changes in
the amount and availability of deposit insurance; disruptions in the
infrastructure that supports our business and the communities where we
are located, which are concentrated in California, involving or related
to physical site access; cyber incidents; or theft or loss of Company or
customer data or money; political uncertainty or instability; acts of
war or terrorism, or natural disasters, such as earthquakes, drought, or
the effects of pandemic diseases; the timely development and acceptance
of new banking products and services and the perceived overall value of
these products and services by our customers and potential customers;
the Company's relationships with and reliance upon vendors with respect
to the operation of certain of the Company's
key internal and
external systems and applications; changes in commercial or consumer
spending, borrowing and savings preferences or behaviors; technological
changes and the expanding use of technology in banking (including the
adoption of mobile banking and funds transfer applications); our ability
to retain and increase market share, retain and grow customers and
control expenses; changes in the competitive environment among financial
and bank holding companies, banks and other financial service providers;
competition and innovation with respect to financial products and
services by banks, financial institutions and non-traditional providers
including retail businesses and technology companies, volatility in the
credit and equity markets and its effect on the general economy or local
or regional business conditions or on the Company's customers;
fluctuations in the price of the Company's common stock or other
securities; and the resulting impact on the Company's ability to raise
capital or make acquisitions, the effect of changes in accounting
policies and practices, as may be adopted from time-to-time by our
regulatory agencies, as well as by the Public Company Accounting
Oversight Board, the Financial Accounting Standards Board and other
accounting standard-setters; changes in our organization, management,
compensation and benefit plans, and our ability to retain or expand our
workforce, management team and/or our board of directors; the costs and
effects of legal, compliance and regulatory actions, changes and
developments, including the initiation and resolution of legal
proceedings (including securities, bank operations, consumer or employee
class action litigation), the possibility that any settlement of any
putative class action lawsuits may not be approved by the relevant court
or that significant numbers of putative class members may opt out of any
settlement; regulatory or other governmental inquiries or
investigations, and/or the results of
regulatory examinations or
reviews; our ongoing relations with our various federal and state
regulators, including the SEC, Federal Reserve Board, FDIC and
California DBO; our success at managing the risks involved in the
foregoing items and all other factors set forth in the Company's public
reports, including its Annual Report on Form 10-K for the year ended
December 31, 2016, and particularly the discussion of risk factors
within that document. The Company does not undertake, and specifically
disclaims any obligation, to update any forward-looking statements to
reflect occurrences or unanticipated events or circumstances after the
date of such statements except as required by law.
Any statements
about future operating results, such as those concerning accretion and
dilution to the Company's earnings or shareholders, are for illustrative
purposes only, are not forecasts, and actual results may differ.

       
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
 
June 30, December 31, June 30,
  2017     2016     2016  
Assets
Cash and due from banks $ 134,686 $ 119,445 $ 107,779
Interest-earning balances due from Federal Reserve   50,061     2,188     591,403  
Total cash and cash equivalents   184,747     121,633     699,182  
Interest-earning balances due from depository institutions 25,050 47,848 91,272
Investment securities available-for-sale 2,269,510 2,270,466 2,248,032
Investment securities held-to-maturity   869,769     911,676     724,357  
Total investment securities   3,139,279     3,182,142     2,972,389  
Investment in stock of Federal Home Loan Bank (FHLB) 17,688 17,688 17,688
Loans and lease finance receivables 4,687,698 4,395,064 4,237,928
Allowance for loan losses   (60,201 )   (61,540 )   (60,938 )
Net loans and lease finance receivables   4,627,497     4,333,524     4,176,990  
Premises and equipment, net 47,362 42,086 39,702
Bank owned life insurance 145,441 134,785 133,231
Intangibles 7,519 5,010 5,586
Goodwill 119,193 89,533 88,174
Other assets   104,427     99,458     88,093  
Total assets $ 8,418,203   $ 8,073,707   $ 8,312,307  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 3,929,394 $ 3,673,541 $ 3,666,206
Investment checking 415,768 407,058 408,105
Savings and money market 1,948,634 1,846,257 1,824,119
Time deposits   403,385     382,824     687,556  
Total deposits 6,697,181 6,309,680 6,585,986
Customer repurchase agreements 546,085 603,028 590,465
Other borrowings - 53,000 -
Junior subordinated debentures 25,774 25,774 25,774
Payable for securities purchased 16,346 23,777 44,723
Other liabilities   72,048     67,586     73,896  
Total liabilities   7,357,434     7,082,845     7,320,844  
Stockholders' Equity
Stockholders' equity 1,049,633 980,691 950,391
Accumulated other comprehensive income, net of tax   11,136     10,171     41,072  
Total stockholders' equity   1,060,769     990,862     991,463  
Total liabilities and stockholders' equity $ 8,418,203   $ 8,073,707   $ 8,312,307  
 
           
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
 

Three Months Ended
June 30,

Six Months Ended
June 30,

  2017     2016     2017     2016  
Assets
Cash and due from banks $ 129,922 $ 118,582 $ 128,463 $ 119,612

Interest-earning balances due from Federal Reserve and federal
funds sold

  82,694     304,423     77,796     194,683  
Total cash and cash equivalents   212,616     423,005     206,259     314,295  
Interest-earning balances due from depository institutions 27,371 85,923 35,389 69,129
Investment securities available-for-sale 2,263,932 2,223,415 2,254,915 2,261,713
Investment securities held-to-maturity   870,840     735,469     881,910     781,659  
Total investment securities   3,134,772     2,958,884     3,136,825     3,043,372  
Investment in stock of FHLB 18,675 18,108 18,411 18,060
Loans and lease finance receivables 4,643,505 4,190,332 4,512,039 4,108,955
Allowance for loan losses   (59,476 )   (59,874 )   (60,581 )   (59,586 )
Net loans and lease finance receivables   4,584,029     4,130,458     4,451,458     4,049,369  
Premises and equipment, net 47,810 40,125 45,625 36,800
Bank owned life insurance 145,383 132,478 141,359 131,813
Intangibles 7,725 5,684 6,680 4,565
Goodwill 119,193 88,174 107,886 83,582
Other assets   122,548     114,363     121,855     119,018  
Total assets $ 8,420,122   $ 7,997,202   $ 8,271,747   $ 7,870,003  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 3,890,656 $ 3,440,693 $ 3,796,139 $ 3,362,312
Interest-bearing   2,808,869     2,889,259     2,747,293     2,811,738  
Total deposits 6,699,525 6,329,952 6,543,432 6,174,050
Customer repurchase agreements 554,016 577,026 578,465 631,443
FHLB advances - 1,154 - 1,429
Other borrowings 7,781 102 13,655 3,820
Junior subordinated debentures 25,774 25,774 25,774 25,774
Payable for securities purchased 9,695 11,827 11,758 6,544
Other liabilities   62,589     64,175     60,792     61,200  
Total liabilities   7,359,380     7,010,010     7,233,876     6,904,260  
Stockholders' Equity
Stockholders' equity 1,050,743 950,342 1,027,905 936,902
Accumulated other comprehensive income, net of tax   9,999     36,850     9,966     28,841  
Total stockholders' equity   1,060,742     987,192     1,037,871     965,743  

Total liabilities and stockholders' equity

$ 8,420,122   $ 7,997,202   $ 8,271,747   $ 7,870,003  
 
           
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)
 

Three Months Ended
June 30,

Six Months Ended
June 30,

  2017     2016   2017     2016
Interest income:
Loans and leases, including fees $ 53,614 $ 50,257 $ 102,255 $ 96,027
Investment securities:
Investment securities available-for-sale 13,007 12,018 25,647 24,817
Investment securities held-to-maturity   5,323     4,743   10,830     10,091
Total investment income 18,330 16,761 36,477 34,908
Dividends from FHLB stock 359 439 752 807

Interest-earning deposits with other institutions and federal
funds sold

  286     558   553     773
Total interest income   72,589     68,015   140,037     132,515
Interest expense:
Deposits 1,559 1,582 2,992 3,019
Borrowings and junior subordinated debentures   547     477   1,129     1,024
Total interest expense   2,106     2,059   4,121     4,043

Net interest income before recapture of provision for loan losses

70,483 65,956 135,916 128,472
Recapture of provision for loan losses   (1,000 )   -   (5,500 )   -

Net interest income after recapture of provision for loan losses

  71,483     65,956   141,416     128,472
Noninterest income:
Service charges on deposit accounts 3,982 3,822 7,709 7,569
Trust and investment services 2,613 2,508 4,909 4,711
Gain on sale of loans - - - 1,101
Other   4,181     2,944   6,880     4,576
Total noninterest income   10,776     9,274   19,498     17,957
Noninterest expense:
Salaries and employee benefits 21,706 21,403 43,281 42,601
Occupancy and equipment 4,554 4,125 8,238 7,838
Professional services 1,843 1,075 3,100 2,323
Software licenses and maintenance 1,627 1,445 3,188 2,719
Marketing and promotion 1,190 1,192 2,429 2,619
Acquisition related expenses 1,250 355 1,926 1,204
Other   4,703     4,843   8,828     9,498
Total noninterest expense   36,873     34,438   70,990     68,802
Earnings before income taxes 45,386 40,792 89,924 77,627
Income taxes   17,013     15,278   33,047     28,722
Net earnings $ 28,373   $ 25,514 $ 56,877   $ 48,905
 
Basic earnings per common share $ 0.26   $ 0.23 $ 0.52   $ 0.46
Diluted earnings per common share $ 0.26   $ 0.23 $ 0.52   $ 0.45
Cash dividends declared per common share $ 0.14   $ 0.12 $ 0.26   $ 0.24
 
           
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
 

Three Months Ended
June 30,

Six Months Ended
June 30,

  2017     2016     2017     2016  
 
Interest income - tax-equivalent (TE) $ 73,615 $ 69,393 $ 142,137 $ 135,429
Interest expense   2,106     2,059     4,121     4,043  
Net interest income - (TE) $ 71,509   $ 67,334   $ 138,016   $ 131,386  
 
Return on average assets, annualized 1.35 % 1.28 % 1.39 % 1.25 %
Return on average equity, annualized 10.73 % 10.39 % 11.05 % 10.18 %
Efficiency ratio [1] 45.38 % 45.78 % 45.68 % 46.99 %
Noninterest expense to average assets, annualized 1.76 % 1.73 % 1.73 % 1.76 %
Yield on average earning assets (TE) 3.74 % 3.68 % 3.68 % 3.66 %
Cost of deposits 0.09 % 0.10 % 0.09 % 0.10 %
Cost of deposits and customer repurchase agreements 0.11 % 0.11 % 0.11 % 0.11 %
Cost of funds 0.12 % 0.12 % 0.12 % 0.12 %
Net interest margin (TE) 3.63 % 3.57 % 3.57 % 3.55 %
 
[1] Noninterest expense divided by net interest income before
provision for loan losses plus noninterest income.
 
Weighted average shares outstanding
Basic 109,730,278 108,834,268 109,038,546 106,917,080
Diluted 110,078,433 109,244,093 109,445,295 107,323,107
Dividends declared $ 15,617 $ 12,951 $ 28,635 $ 25,885
Dividend payout ratio [2] 55.04 % 50.76 % 50.35 % 52.93 %
[2] Dividends declared on common stock divided by net earnings.
Number of shares outstanding - (end of period) 110,149,314 107,946,952
Book value per share $ 9.63 $ 9.18
Tangible book value per share $ 8.48 $ 8.32
 
June 30,
  2017     2016  
Nonperforming assets:
Nonaccrual loans $ 7,831 $ 5,443

Loans past due 90 days or more and still accruing interest

- -
Troubled debt restructured loans (nonperforming) 4,391 12,029
Other real estate owned (OREO), net   4,527     6,049  
Total nonperforming assets $ 16,749   $ 23,521  
Troubled debt restructured performing loans $ 16,574   $ 20,292  
 

Percentage of nonperforming assets to total loans outstanding and
OREO

0.36 % 0.55 %
 

Percentage of nonperforming assets to total assets

0.20 % 0.28 %
 

Allowance for loan losses to nonperforming assets

359.43 % 259.08 %
 

Six Months Ended
June 30,

 
  2017     2016  
Allowance for loan losses:
Beginning balance $ 61,540 $ 59,156
Total charge-offs (2 ) (188 )
Total recoveries on loans previously charged-off   4,163     1,970  
Net recoveries 4,161 1,782
Recapture of provision for loan losses   (5,500 )   -  
Allowance for loan losses at end of period $ 60,201   $ 60,938  
 
Net recoveries to average loans 0.092 % 0.043 %
 
           
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
 
Quarterly Common Stock Price
 
2017   2016   2015  
Quarter End High Low High Low High Low
March 31, $ 24.63 $ 20.58 $ 17.70 $ 14.02 $ 16.21 $ 14.53
June 30, $ 22.85 $ 19.90 $ 17.92 $ 15.25 $ 18.11 $ 15.45
September 30, - - $ 17.88 $ 15.39 $ 18.37 $ 15.30
December 31, - - $ 23.23 $ 16.32 $ 18.77 $ 15.82
 
Quarterly Consolidated Statements of Earnings
 
Q2 Q1 Q4 Q3 Q2
  2017     2017     2016     2016     2016  
Interest income
Loans, including fees $ 53,614 $ 48,641 $ 49,211 $ 47,754 $ 50,257
Investment securities and other   18,975     18,807     18,153     17,417     17,758  
Total interest income   72,589     67,448     67,364     65,171     68,015  
Interest expense
Deposits 1,559 1,433 1,413 1,525 1,582
Other borrowings   547     582     510     485     477  
Total interest expense   2,106     2,015     1,923     2,010     2,059  

Net interest income before recapture of provision for loan losses

70,483 65,433 65,441 63,161 65,956
Recapture of provision for loan losses   (1,000 )   (4,500 )   (4,400 )   (2,000 )   -  

Net interest income after recapture of provision for loan losses

  71,483     69,933     69,841     65,161     65,956  
 
Noninterest income 10,776 8,722 8,412 9,183 9,274
Noninterest expense   36,873     34,117     34,932     33,006     34,438  
Earnings before income taxes 45,386 44,538 43,321 41,338 40,792
Income taxes   17,013     16,034     16,245     15,890     15,278  
Net earnings $ 28,373   $ 28,504   $ 27,076   $ 25,448   $ 25,514  
 
Effective tax rate 37.49 % 36.00 % 37.50 % 38.44 % 37.45 %
 
Basic earnings per common share $ 0.26 $ 0.26 $ 0.25 $ 0.23 $ 0.23
Diluted earnings per common share $ 0.26 $ 0.26 $ 0.25 $ 0.23 $ 0.23
 
Cash dividends declared per common share $ 0.14 $ 0.12 $ 0.12 $ 0.12 $ 0.12
 
Cash dividends declared $ 15,617 $ 13,018 $ 12,996 $ 12,968 $ 12,951
 
         

CVB FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
 
Loan Portfolio by Type
June 30, March 31, December 31, September 30, June 30,
  2017     2017     2016     2016     2016  
 
Commercial and industrial $ 539,260 $ 530,856 $ 487,387 $ 496,814 $ 481,713
SBA 130,716 114,265 97,511 104,379 112,110
Real estate:
Commercial real estate 3,312,068 3,271,592 2,997,735 2,981,859 2,954,921
Construction 77,294 72,782 85,879 90,710 94,009
SFR mortgage 250,104 245,537 250,783 241,672 237,674
Dairy & livestock and agribusiness 245,600 244,724 339,847 239,749 214,333
Municipal lease finance receivables 66,048 62,416 64,639 68,309 71,929
Consumer and other loans   74,714     81,534     79,743     81,143     81,541  
Gross loans 4,695,804 4,623,706 4,403,524 4,304,635 4,248,230
Less:
Purchase accounting discount on PCI loans (1,008 ) (1,258 ) (1,508 ) (1,894 ) (2,430 )
Deferred loan fees, net   (7,098 )   (6,951 )   (6,952 )   (7,574 )   (7,872 )
Gross loans, net of deferred loan fees and discounts 4,687,698 4,615,497 4,395,064 4,295,167 4,237,928
Allowance for loan losses   (60,201 )   (59,212 )   (61,540 )   (61,001 )   (60,938 )
Net loans $ 4,627,497   $ 4,556,285   $ 4,333,524   $ 4,234,166   $ 4,176,990  
 
 
 
Deposit Composition by Type and Customer Repurchase Agreements
 
June 30, March 31, December 31, September 30, June 30,
  2017     2017     2016     2016     2016  
 
Noninterest-bearing $ 3,929,394 $ 3,999,107 $ 3,673,541 $ 3,657,610 $ 3,666,206
Investment checking 415,768 424,077 407,058 413,789 408,105
Savings and money market 1,948,634 1,993,196 1,846,257 1,823,163 1,824,119
Time deposits   403,385     426,433     382,824     426,433     687,556  
Total deposits 6,697,181 6,842,813 6,309,680 6,320,995 6,585,986
 
Customer repurchase agreements   546,085     564,387     603,028     577,990     590,465  
Total deposits and customer repurchase agreements $ 7,243,266   $ 7,407,200   $ 6,912,708   $ 6,898,985   $ 7,176,451  
 
       
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
   
Nonperforming Assets and Delinquency Trends
 
June 30, March 31, December 31, September 30, June 30,
  2017     2017     2016     2016     2016  

Nonperforming loans:

Commercial and industrial $ 1,058 $ 506 $ 156 $ 543 $ 568
SBA 1,651 1,089 2,737 3,013 2,637
Real estate:
Commercial real estate 6,950 5,623 1,683 2,396 11,396
Construction - 384 - - -
SFR mortgage 963 983 2,207 2,244 2,443
Dairy & livestock and agribusiness 829 1,324 - - -
Consumer and other loans   771     438     369     470     428  
Total $ 12,222   $ 10,347   $ 7,152   $ 8,666   $ 17,472  
% of Total gross loans 0.26 % 0.22 % 0.16 % 0.20 % 0.41 %

Past due 30-89 days:

Commercial and industrial $ - $ 219 $ - $ - $ 61
SBA - 329 352 - -
Real estate:
Commercial real estate 218 - - 228 320
Construction - - - - -
SFR mortgage 400 403 - - -
Dairy & livestock and agribusiness - - - - -
Consumer and other loans   1     429     84     294     97  
Total $ 619   $ 1,380   $ 436   $ 522   $ 478  
% of Total gross loans 0.01 % 0.03 % 0.01 % 0.01 % 0.01 %

OREO:

Commercial and industrial $ - $ - $ - $ - $ -
Real estate:
Commercial real estate - - - - 1,209
Construction   4,527  

 

  4,527  

 

  4,527  

 

  4,840  

 

  4,840  
Total $ 4,527   $ 4,527   $ 4,527   $ 4,840   $ 6,049  
Total nonperforming, past due, and OREO $ 17,368   $ 16,254   $ 12,115   $ 14,028   $ 23,999  
% of Total gross loans 0.37 % 0.35 % 0.28 % 0.33 % 0.57 %
 

Tangible Book Value Reconciliations (Non-GAAP)

The tangible book value per share is a Non-GAAP disclosure. The Company
uses certain non-GAAP financial measures to provide supplemental
information regarding the Company's performance. The following is a
reconciliation of tangible book value to the Company stockholders'
equity computed in accordance with GAAP, as well as a calculation of
tangible book value per share as of June 30, 2017 and 2016.

     
June 30,
  2017     2016  
(Dollars in thousands, except per share amounts)
 
Stockholders' equity $ 1,060,769 $ 991,463
Less: Goodwill (119,193 ) (88,174 )
Less: Intangible assets   (7,519 )   (5,586 )
Tangible book value $ 934,057 $ 897,703
Common shares issued and outstanding   110,149,314     107,946,952  
Tangible book value per share $ 8.48   $ 8.32  
 

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