Business Wire | Oct 21, 2020 04:45PM EDT

CVB Financial Corp. Reports Earnings for the Third Quarter of 2020

Oct. 21, 2020

ONTARIO, Calif.--(BUSINESS WIRE)--Oct. 21, 2020--CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the "Company"), announced earnings for the quarter ended September 30, 2020.

CVB Financial Corp. reported net income of $47.5 million for the quarter ended September 30, 2020, compared with $41.6 million for the second quarter of 2020 and $50.4 million for the third quarter of 2019. Diluted earnings per share were $0.35 for the third quarter, compared to $0.31 for the prior quarter and $0.36 for the same period last year. The third quarter of 2020 did not include a provision for credit losses, as the economic outlook is generally consistent with the forecast from the prior quarter end. In comparison, the Company recorded a provision for credit losses of $23.5 million in the first half of 2020, including $11.5 million in the second quarter.

David Brager, Chief Executive Officer of Citizens Business Bank, commented "Although the current uncertain economic situation, coronavirus outlook and low interest rate environment present near term challenges to earnings growth, we will continue to maintain our long-term focus on credit quality, strong capital levels, and consistent earnings. We believe that Citizens Business Bank will be well positioned as we return to a more normal economic environment and continue to generate stable, long-term shareholder returns."

Net income of $47.5 million for the third quarter of 2020 produced an annualized return on average equity ("ROAE") of 9.51% and an annualized return on average tangible common equity ("ROATCE") of 15.20%. ROAE and ROATCE for the second quarter of 2020 were 8.51% and 13.80%, respectively, and 10.18% and 16.53%, respectively, for the third quarter of 2019. Annualized return on average assets ("ROAA") was 1.38% for the third quarter, compared to 1.33% for the second quarter of 2020 and 1.78% for the third quarter of 2019. The efficiency ratio for the third quarter of 2020 was 42.57%, compared to 39.75% for the second quarter of 2020 and 39.60% for the third quarter of 2019.

Net income totaled $127.1 million for the nine months ended September 30, 2020. This represented a $29.4 million, or 18.81%, decrease from the prior year, as the provision for credit losses increased by $18.5 million. Diluted earnings per share were $0.93 for the nine months ended September 30, 2020, compared to $1.12 for the same period of 2019. Net income for the nine months ended September 30, 2020 produced an annualized ROAE of 8.55%, an ROATCE of 13.76% and an ROAA of 1.35%. This compares to ROAE of 10.89%, ROATCE of 17.99% and ROAA of 1.86% for the first nine months of 2019. The efficiency ratio for the nine months ended September 30, 2020 was 41.66%, compared to 39.89% for the first nine months of 2019.

Net interest income before provision for credit losses was $103.3 million for the third quarter of 2020. This represented a $1.2 million, or 1.19%, decrease from the second quarter of 2020, and a $4.8 million, or 4.47%, decrease from the third quarter of 2019. Total interest income was $106.6 million for the third quarter of 2020, which was $1.3 million, or 1.23%, lower than the second quarter of 2020 and $6.9 million, or 6.11%, lower than the same period last year. Total interest income and fees on loans for the third quarter of 2020 of $94.2 million decreased $1.2 million, or 1.21%, from the second quarter of 2020, and decreased $4.6 million, or 4.65%, from the third quarter of 2019. Total investment income of $11.8 million decreased $287,000, or 2.37%, from the second quarter of 2020 and decreased $1.7 million, or 12.56%, from the third quarter of 2019. Interest expense decreased $88,000, or 2.60%, from the prior quarter and decreased $2.1 million, or 38.92%, compared to the third quarter of 2019.

The Company adopted ASU 2016-13, commonly referred to as CECL which replaces the "incurred loss" approach with an "expected loss" model over the life of the loan, effective on January 1, 2020. No provision for credit losses was recorded for the third quarter of 2020. The Company's economic forecast of macro-economic variables was generally consistent to the forecast at the end of the second quarter. A $23.5 million provision for credit losses was recorded in the first half of 2020, due to the economic disruption and forecasted impact resulting from COVID-19. In comparison to the prior year, a $1.5 million loan loss provision was incurred for the third quarter of 2019. During the third quarter of 2020, we experienced minimal credit charge-offs of $231,000 and total recoveries of $117,000, resulting in net charge-offs of $114,000.

Noninterest income was $13.2 million for the third quarter of 2020, compared with $12.2 million for the second quarter of 2020 and $11.9 million for the third quarter of 2019. The third quarter of 2020 included a $1.7 million net gain on the sale of one of our bank owned buildings, related to a banking center that was closed in September. In addition to this gain on sale, the year-over-year increase of $1.3 million included higher swap fee income of $1.2 million, partially offset by a decrease of $863,000 in service charges on deposit accounts.

Noninterest expense for the third quarter of 2020 was $49.6 million, compared to $46.4 million for the second quarter of 2020 and $47.5 million for the third quarter of 2019. There were no merger related expenses related to the Community Bank acquisition for the third quarter of 2020 and the second quarter of 2020, compared to $244,000 for the third quarter of 2019. The $3.2 million quarter-over-quarter increase was primarily due to a $2.3 million increase in salaries and employee benefits, including $1.1 million in additional bonus expense for "Thank You Awards" paid to all Bank employees during the third quarter and $900,000 in lower net deferred loan costs (contra account) primarily due to PPP loan origination costs in the second quarter of 2020. The third quarter of 2020 also reflected an $833,000 increase in regulatory assessments resulting from final application of assessment credits provided by the FDIC at the end of the second quarter of 2020 and a $700,000 write-down of one OREO property. Marketing and promotion expense decreased by $527,000. The year-over-year increase also included a $912,000 increase in salaries and employee benefits, primarily due to the "Thank You Awards". Compared to the third quarter of 2019, regulatory assessments increased $852,000 and OREO expense increased by $829,000, while marketing and promotion expense decreased by $789,000. As a percentage of average assets, noninterest expense was 1.44% for the third quarter of 2020, compared to 1.48% for the second quarter of 2020 and 1.68% for the third quarter of 2019.

Net Interest Income and Net Interest Margin

Net interest income, before provision for credit losses, was $103.3 million for the third quarter of 2020, compared to $104.6 million for the second quarter of 2020 and $108.2 million for the third quarter of 2019. Our net interest margin (tax equivalent) was 3.34% for the third quarter of 2020, compared to 3.70% for the second quarter of 2020 and 4.34% for the third quarter of 2019. Total average earning asset yields (tax equivalent) were 3.45% for the third quarter of 2020, compared to 3.82% for the second quarter of 2020 and 4.55% for the third quarter of 2019. The decrease in earning asset yield from the prior quarter was due to a combination of a 30 basis point decrease in average loan yields, a 23 basis point decrease in investment yields and a change in asset mix with loan balances declining to 67.1% of earning assets on average for the third quarter of 2020, compared to 70.7% for the second quarter of 2020. The decrease in earning asset yield compared to the third quarter of 2019 was primarily due to a 76 basis point decrease in loan yields from 5.23% in the year ago quarter to 4.47% for the third quarter of 2020, a 48 basis point decline in investment yields, as well as a change in asset mix resulting from a $1.28 billion increase in average balances at the Federal Reserve. Discount accretion on acquired loans increased by $122,000 quarter-over-quarter and decreased by $2.9 million compared to the third quarter of 2019. Interest and fee income from PPP loans increased from approximately $8.5 million in the second quarter of 2020, to $9.5 million in the third quarter. The significant decline in interest rates since the start of the pandemic has had a negative impact on loan yields, which after excluding discount accretion, nonaccrual interest income, and the impact from PPP loans, declined by 7 basis points compared to the prior quarter and 44 basis points from the third quarter of 2019. The significant decline in interest rates also impacted the tax equivalent yield on investments, which decreased by 23 basis points from the second quarter of 2020 and decreased 48 basis points from the third quarter of 2019. Average earning assets increased from the second quarter of 2020 by $1.11 billion to $12.50 billion for the third quarter of 2020. Of that increase in earning assets, $402.7 million represented increased balances at the Federal Reserve, while investment securities grew on average by $358.1 million. Average loans grew by $335.2 million quarter-over-quarter, primarily due to PPP loans. Average earning assets increased by $2.55 billion from the third quarter of 2019. Loans on average grew by $887.0 million, including PPP loan balances that were about $1.10 billion, on average, during the third quarter of 2020. Investments increased by $344.1 million, while balances at the Federal Reserve grew on average by $1.28 billion compared to the third quarter of 2019.

Total cost of funds declined to 0.11% for the third quarter of 2020 from 0.13% for the second quarter of 2020 and 0.23% in the year ago quarter. On average, noninterest-bearing deposits were 61.67% of total deposits during the current quarter. Noninterest-bearing deposits grew on average by $527.4 million, or 8.50%, from the second quarter of 2020. Interest-bearing deposits and customer repurchase agreements grew on average by $402.1 million during the third quarter of 2020, compared to the second quarter of 2020. The cost of interest-bearing deposits and customer repurchase agreements declined from 0.31% for the prior quarter to 0.27% for the third quarter of 2020. In comparison to the third quarter of 2019, our overall cost of funds decreased by 12 basis points, as average noninterest-bearing deposits grew by $1.50 billion. Average Interest-bearing deposits increased by $720.0 million compared to the third quarter of 2019, while the cost of interest-bearing deposits decreased by 25 basis points.

Income Taxes

Our effective tax rate for the nine months ended September 30, 2020 was 29.00%, compared with 29.00% for the nine months ended September 30, 2019. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income as well as available tax credits.

Assets

The Company reported total assets of $13.82 billion at September 30, 2020. This represented an increase of $67.4 million, or 0.49%, from total assets of $13.75 billion at June 30, 2020. Interest-earning assets of $12.59 billion at September 30, 2020 increased $75.8 million, or 0.61%, when compared with $12.52 billion at June 30, 2020. The increase in interest-earning assets was primarily due to a $494.1 million increase in investment securities and a $5.3 million increase in total loans, partially offset by a $429.4 million decrease in interest-earning balances due from the Federal Reserve.

Total assets at September 30, 2020 increased by $2.54 billion, or 22.48%, from total assets of $11.28 billion at December 31, 2019. Interest-earning assets increased $2.57 billion, or 25.59%, when compared with $10.03 billion at December 31, 2019. The increase in interest-earning assets includes a $1.31 billion increase in interest-earning balances due from the Federal Reserve, an $843.3 million increase in total loans, and a $368.6 million increase in investment securities. The increase in total loans was due to the origination of approximately 4,100 PPP loans in the second quarter of 2020, totaling $1.10 billion as of September 30, 2020. Excluding PPP loans, total loans declined by $257.8 million from December 31, 2019.

Total assets increased $2.49 billion, or 21.94%, from total assets of $11.33 billion at September 30, 2019. Interest-earning assets totaled $12.59 billion at September 30, 2020, an increase of $2.59 billion, or 25.83%, when compared with earning assets of $10.01 billion at September 30, 2019. The increase in interest-earning assets was due to a $1.12 billion increase in interest-earning balances due from the Federal Reserve, a $913.4 million increase in total loans, and a $509.0 million increase in investment securities. Excluding PPP loans, total loans declined by $187.7 million from September 30, 2019.

Investment Securities

Total investment securities were $2.78 billion at September 30, 2020, an increase of $494.1 million, or 21.58%, from $2.29 billion at June 30, 2020, an increase of $368.6 million, or 15.27%, from $2.41 billion at December 31, 2019, and an increase of $509.0 million, or 22.38%, from $2.27 billion at September 30, 2019.

At September 30, 2020, investment securities held-to-maturity ("HTM") totaled $577.7 million, a $35.5 million, or 5.79%, decrease from June 30, 2020, a $96.8 million decrease, or 14.35%, from December 31, 2019 and a $126.3 million decrease, or 17.94%, from September 30, 2019.

At September 30, 2020, investment securities available-for-sale ("AFS") totaled $2.21 billion, inclusive of a pre-tax net unrealized gain of $55.3 million. AFS securities increased by $529.6 million, or 31.60%, from $1.68 billion at June 30, 2020, increased by $465.4 million, or 26.74%, from December 31, 2019, and increased by $635.2 million, or 40.45%, from September 30, 2019.

Combined, the AFS and HTM investments in mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMO") totaled $2.48 billion at September 30, 2020, compared to $2.06 billion at December 31, 2019 and $1.91 billion at September 30, 2019. Virtually all of our MBS and CMO are issued or guaranteed by government or government sponsored enterprises, which have the implied guarantee of the U.S. Government.

In the third quarter of 2020, we purchased $720.8 million of securities, primarily MBS, with an average expected yield of approximately 1.20%.

Our combined AFS and HTM municipal securities totaled $198.9 million as of September 30, 2020, or approximately 7% of our entire investment portfolio. These securities are located in 27 states. Our largest concentrations of holdings by state, as a percentage of total municipal bonds, are located in Minnesota at 29.89%, Massachusetts at 13.45%, Connecticut at 7.53%, Wisconsin at 6.79%, and Ohio at 5.89%.

Loans

Total loans and leases, net of deferred fees and discounts, of $8.41 billion at September 30, 2020 increased by $5.3 million, or 0.06%, from June 30, 2020. The $5.3 million increase in loans included increases of $4.0 million in PPP loans, $63.1 million in commercial real estate loans, $4.8 million in other SBA loans, $1.0 million in dairy & livestock and agribusiness loans, and $3.7 million in consumer and other loans, partially offset by decreases of $23.9 million in construction loans, $23.7 million in commercial and industrial loans, $11.8 million in municipal lease financings, and $11.8 million in SFR mortgage loans.

Total loans and leases, net of deferred fees increased by $843.3 million, or 11.15%, from December 31, 2019. The increase in total loans included $1.10 billion in PPP loans and a $130.9 million decline in dairy & livestock and agribusiness loans primarily due to seasonal pay downs, which historically occur in the first quarter of each calendar year. Excluding PPP loans and dairy & livestock and agribusiness loans, total loans declined by $126.9 million, or 1.77%. The $126.9 million decrease in loans included decreases of $118.1 million in commercial and industrial loans, $27.3 million in consumer and other loans, $15.1 million in municipal lease financings, $15.0 million in construction loans, and $8.7 million in SFR mortgage loans. Partially offsetting these declines was an increase in commercial real estate loans of $53.6 million.

Total loans and leases, net of deferred fees increased by $913.4 million, or 12.19%, from September 30, 2019. Excluding $1.10 billion in PPP loans, loans declined by $187.7 million including decreases of $104.6 million in commercial and industrial loans, $58.4 million in dairy & livestock and agribusiness loans, $28.1 million in consumer and other loans, $18.0 million in construction loans, $16.4 million in municipal lease financings, $14.6 million in other SBA loans, and $3.9 million in SFR mortgage loans, partially offset by an increase of $52.6 million in commercial real estate loans.

Asset Quality

The allowance for credit losses ("ACL") totaled $93.9 million at September 30, 2020, compared to $94.0 million at June 30, 2020, $68.7 million at December 31, 2019, and $68.7 million at September 30, 2019. The allowance for credit losses for the first nine months of 2020 was increased by $23.5 million in provision for credit losses due to the severe economic disruption forecasted as a result of the coronavirus pandemic. At September 30, 2020, ACL as a percentage of total loans and leases outstanding was 1.12%, or 1.28% when PPP loans are excluded. This compares to 1.12%, 0.91%, and 0.92% at June 30, 2020, December 31, 2019, and September 30, 2019, respectively.

Nonperforming loans, defined as nonaccrual loans and loans 90 days past due accruing interest plus nonperforming TDR loans, were $11.8 million at September 30, 2020, or 0.14% of total loans. This compares to nonperforming loans of $6.8 million, or 0.08% of total loans, at June 30, 2020, $5.3 million, or 0.07% of total loans, at December 31, 2019 and $6.6 million, or 0.09% of total loans, at September 30, 2019. The $11.8 million in nonperforming loans at September 30, 2020 are summarized as follows: $6.5 million in commercial real estate loans, $1.8 million in commercial and industrial loans, $1.7 million in SBA loans, $849,000 in dairy & livestock and agribusiness loans, $675,000 in SFR mortgage loans, and $224,000 in consumer and other loans.

As of September 30, 2020, we had $4.2 million in OREO compared to $4.9 million at June 30, 2020 and December 31, 2019, and $9.5 million at September 30, 2019.

At September 30, 2020, we had loans delinquent 30 to 89 days of $3.8 million. This compares to $2.6 million at June 30, 2020, $1.7 million at December 31, 2019 and $1.4 million at September 30, 2019. As a percentage of total loans, delinquencies, excluding nonaccruals, were 0.04% at September, 30, 2020, 0.03% at June 30, 2020, 0.02% at December 31, 2019, and 0.02% at September 30, 2019.

At September 30, 2020, we had $2.2 million in performing TDR loans, compared to $3.1 million in performing TDR loans at December 31, 2019 and $3.2 million in performing TDR loans at September 30, 2019. Through October 9, 2020, we have temporary payment deferments (primarily 90 day deferments of principal and interest) in response to the CARES Act for 33 loans totaling $69 million, or less than 1% of total loans at September 30, 2020.

Nonperforming assets, defined as nonaccrual loans and loans 90 days past due accruing interest plus OREO, totaled $16.0 million at September 30, 2020, $11.7 million at June 30, 2020, $10.2 million at December 31, 2019, and $16.1 million at September 30, 2019. As a percentage of total assets, nonperforming assets were 0.12% at September 30, 2020, 0.09% at June 30, 2020, 0.09% at December 31, 2019, and 0.14% at September 30, 2019.

Classified loans are loans that are graded "substandard" or worse. At September 30, 2020, classified loans totaled $72.7 million, compared to $86.3 million at June 30, 2020, $73.4 million at December 31, 2019 and $60.0 million at September 30, 2019. Classified loans decreased $13.6 million quarter-over-quarter and included a $6.1 million decrease in classified commercial real estate loans, a $4.6 million decrease in classified commercial and industrial loans, $3.8 million decrease in classified dairy & livestock and agribusiness loans, and a $1.3 million decrease in classified SBA loans, partially offset by a $2.2 million increase in classified SFR mortgage loans.

Deposits & Customer Repurchase Agreements

Deposits of $11.17 billion and customer repurchase agreements of $483.4 million totaled $11.65 billion at September 30, 2020. This represented an increase of $200.5 million, or 1.75%, when compared with $11.45 billion at June 30, 2020. Total deposits and customer repurchase agreements increased $2.52 billion, or 27.58% when compared with $9.13 billion at December 31, 2019 and increased $2.45 billion, or 26.62%, when compared with $9.20 billion at September 30, 2019.

Noninterest-bearing deposits were $6.92 billion at September 30, 2020, an increase of $18.1 million, or 0.26%, when compared to $6.90 billion at June 30, 2020, an increase of $1.67 billion, or 31.91%, when compared to $5.25 billion at December 31, 2019, and an increase of $1.53 billion, or 28.49%, when compared to September 30, 2019. At September 30, 2020, noninterest-bearing deposits were 61.95% of total deposits, compared to 62.83% at June 30, 2020, 60.26% at December 31, 2019 and 61.23% at September 30, 2019.

Capital

For the first nine months of 2020, shareholders' equity decreased by $12.1 million to $1.98 billion. The decrease was primarily due to $91.7 million in stock repurchases and $73.3 million in cash dividends, offset by net earnings of $127.1 million and a $23.5 million increase in other comprehensive income from the tax effected impact of the increase in market value of available-for-sale securities. Our tangible common equity ratio was 9.8% at September 30, 2020.

Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards. At September 30, 2020, the Company's Tier 1 leverage capital ratio totaled 9.9%, common equity Tier 1 ratio totaled 14.6%, Tier 1 risk-based capital ratio totaled 14.9%, and total risk-based capital ratio totaled 16.1%.

CitizensTrust

As of September 30, 2020 CitizensTrust had approximately $2.91 billion in assets under management and administration, including $2.08 billion in assets under management. Revenues were $2.4 million for the third quarter of 2020 and $7.3 million for the first nine months of 2020, compared to $2.3 million and $7.0 million, respectively, for the same periods of 2019. 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 one of the 10 largest bank holding companies headquartered in California with over $13 billion in total assets. 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 57 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, October 22, 2020 to discuss the Company's third quarter 2020 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 November 5, 2020 at 6:00 a.m. PST/9:00 a.m. EST. To access the replay, please dial (877) 344-7529, passcode 10148385.

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 commercial or residential real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend; 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, key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance forcredit losses and charge-offs; the costs or effects of mergers, acquisitions or dispositions we may make, whether we are able to obtain any required governmental approvals in connection with any such mergers, acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits associated with any such mergers, acquisitions or dispositions; the effects of new laws, regulations and/or government programs, including those laws, regulations and programs enacted by federal, state or local governments in the geographic jurisdictions in which we do business in response to the recent national emergency declared in connection with the COVID-19 pandemic; the impact of the federal CARES Act and the significant additional lending activities undertaken by the Company in connection with the Small Business Administration's Paycheck Protection Program enacted thereunder, including risks to the Company with respect to the uncertain application by the Small Business Administration of new borrower and loan eligibility, forgiveness and audit criteria; the effects of the Company's participation in one or more of the new lending programs recently established by the Federal Reserve, including the Main Street New Loan Facility, the Main Street Priority Loan Facility and the Nonprofit Organization New Loan Facility, and the impact of any related actions or decisions by the Federal Reserve Bank of Boston and its special purpose vehicle established pursuant to such lending programs; the effect of changes in other pertinent laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, bank capital levels, allowance for credit losses, consumer, commercial or secured lending, securities and securities trading and hedging, bank operations, compliance, fair lending, the Community Reinvestment Act, employment, executive compensation, insurance, cybersecurity, vendor management and information security technology) with which we and our subsidiaries must comply or believe we should comply or which may otherwise impact us; changes in estimates of future reserve requirements and minimum capital requirements, based upon the periodic review thereof under relevant regulatory and accounting standards, including changes in the Basel Committee framework establishing capital standards for bank credit, operations and market risks; 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 or currently expected credit losses or delinquencies; inflation, changes in market interest rates, securities market and monetary fluctuations; changes in government-established interest rates, reference rates or monetary policies, including the possible imposition of negative interest rates on bank reserves; the impact of the anticipated phase-out of the London Interbank Offered Rate (LIBOR) on interest rate indexes specified in certain of our customer loan agreements and in our interest rate swap arrangements, including any economic and compliance effects related to the expected change from LIBOR to an alternative reference rate; changes in the amount, cost 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 and/or communication facilities; cyber incidents, attacks, infiltrations, exfiltrations, or theft or loss of Company, customer or employee data or money; political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, the effects of pandemic diseases, climate change or extreme weather events, that may affect electrical, environmental and communications or other services, computer services or facilities we use, or that affect our assets, customers, employees or third parties with whom we conduct business; our timely development and implementation 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 outside vendors with respect to certain of the Company's key internal and external systems, applications and controls; changes in commercial or consumer spending, borrowing and savings preferences or behaviors; technological changes and the expanding use of technology in banking and financial services (including the adoption of mobile banking, funds transfer applications, electronic marketplaces for loans, block-chain technology and other banking products, systems or services); our ability to retain and increase market share, to retain and grow customers and to control expenses; changes in the competitive environment among banks and other financial services and technology 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 capital, assets or 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 to make acquisitions; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by the principal regulatory agencies with jurisdiction over the Company, 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 recruit and retain or expand or contract our workforce, management team, key executive positions and/or our board of directors; our ability to identify suitable and qualified replacements for any of our executive officers who may leave their employment with us, including our Chief Executive Officer; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, lender liability, bank operations, financial product or service, data privacy, consumer or employee class action litigation); 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 DFPI; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company's public reports, including our Annual Report on Form 10-K for the year ended December 31, 2019, and particularly the discussion of risk factors within that document. Among other risks, the ongoing COVID-19 pandemic may significantly affect the banking industry and the Company's business prospects. The ultimate impact on our business and financial results will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the impact on the economy, our customers and our business partners, and actions taken by governmental authorities in response to the pandemic. 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 SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(Dollars in thousands) September 30, December 31, September 30,

2020 2019 2019

AssetsCash and due from banks $ 145,455 $ 158,310 $ 222,248

Interest-earning balances due 1,339,498 27,208 215,300 from Federal ReserveTotal cash and cash equivalents 1,484,953 185,518 437,548

Interest-earning balances due 44,367 2,931 5,673 from depository institutionsInvestment securities 2,205,646 1,740,257 1,570,406 available-for-saleInvestment securities 577,694 674,452 703,953 held-to-maturityTotal investment securities 2,783,340 2,414,709 2,274,359

Investment in stock of Federal 17,688 17,688 17,688 Home Loan Bank (FHLB)Loans and lease finance 8,407,872 7,564,577 7,494,451 receivablesAllowance for credit losses (93,869 ) (68,660 ) (68,672 )

Net loans and lease finance 8,314,003 7,495,917 7,425,779 receivablesPremises and equipment, net 51,477 53,978 53,256

Bank owned life insurance 228,132 226,281 224,841 (BOLI)Intangibles 35,804 42,986 45,446

Goodwill 663,707 663,707 663,707

Other assets 195,240 178,735 184,465

Total assets $ 13,818,711 $ 11,282,450 $ 11,332,762

Liabilities and Stockholders'EquityLiabilities:Deposits:Noninterest-bearing $ 6,919,423 $ 5,245,517 $ 5,385,104

Investment checking 447,910 454,565 433,615

Savings and money market 3,356,353 2,558,538 2,513,888

Time deposits 445,148 446,308 461,723

Total deposits 11,168,834 8,704,928 8,794,330

Customer repurchase agreements 483,420 428,659 407,850

Other borrowings 10,000 - 4,914

Junior subordinated debentures 25,774 25,774 25,774

Other liabilities 148,726 128,991 133,001

Total liabilities 11,836,754 9,288,352 9,365,869

Stockholders' EquityStockholders' equity 1,945,864 1,981,484 1,954,797

Accumulated other comprehensive 36,093 12,614 12,096 income, net of taxTotal stockholders' equity 1,981,957 1,994,098 1,966,893

Total liabilities and $ 13,818,711 $ 11,282,450 $ 11,332,762 stockholders' equityCVB FINANCIAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS(Unaudited)(Dollars in thousands)Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

AssetsCash and due from banks$

156,132

$

140,665

$

173,291

$

154,543

$

172,970

Interest-earning balances due from Federal Reserve1,452,167

1,049,430

168,113

916,849

64,274

Total cash and cash equivalents1,608,299

1,190,095

341,404

1,071,392

237,244

Interest-earning balances due from depository institutions41,982

31,003

6,006

30,362

6,574

Investment securities available-for-sale2,006,829

1,616,907

1,545,276

1,774,620

1,625,648

Investment securities held-to-maturity594,751

626,557

712,199

626,594

725,590

Total investment securities2,601,580

2,243,464

2,257,475

2,401,214

2,351,238

Investment in stock of FHLB17,688

17,688

17,688

17,688

17,688

Loans and lease finance receivables8,382,257

8,047,054

7,495,289

7,972,208

7,571,502

Allowance for credit losses(93,972

)

(82,752

)

(67,186

)

(82,529

)

(65,358

)

Net loans and lease finance receivables8,288,285

7,964,302

7,428,103

7,889,679

7,506,144

Premises and equipment, net52,052

52,719

53,970

52,817

55,436

Bank owned life insurance (BOLI)227,333

225,818

224,526

226,209

223,005

Intangibles37,133

39,287

46,720

39,376

49,682

Goodwill663,707

663,707

663,707

663,707

665,470

Other assets189,117

182,972

174,817

183,118

167,955

Total assets$

13,727,176

$

12,611,055

$

11,214,416

$

12,575,562

$

11,280,436

Liabilities and Stockholders' EquityLiabilities:Deposits:Noninterest-bearing$

6,731,711

$

6,204,329

$

5,227,595

$

6,063,469

$

5,136,233

Interest-bearing4,184,688

3,844,025

3,464,677

3,844,874

3,544,814

Total deposits10,916,399

10,048,354

8,692,272

9,908,343

8,681,047

Customer repurchase agreements504,039

442,580

408,273

475,103

446,721

Other borrowings10,020

3,981

12,040

4,833

101,138

Junior subordinated debentures25,774

25,774

25,774

25,774

25,774

Payable for securities purchased157,057

2,697

-

53,630

983

Other liabilities128,045

121,069

110,630

121,579

102,792

Total liabilities11,741,334

10,644,455

9,248,989

10,589,262

9,358,455

Stockholders' EquityStockholders' equity1,948,351

1,928,210

1,957,195

1,956,676

1,927,076

Accumulated other comprehensive income (loss), net of tax37,491

38,390

8,232

29,624

(5,095

)

Total stockholders' equity1,985,842

1,966,600

1,965,427

1,986,300

1,921,981

Total liabilities and stockholders' equity$

13,727,176

$

12,611,055

$

11,214,416

$

12,575,562

$

11,280,436

CVB FINANCIAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS(Unaudited)(Dollars in thousands) Three Months Ended Nine Months Ended

September 30, June 30, September 30, September 30, September 30,

2020 2020 2019 2020 2019

AssetsCash and due from $ 156,132 $ 140,665 $ 173,291 $ 154,543 $ 172,970 banksInterest-earning 1,452,167 1,049,430 168,113 916,849 64,274 balances due fromFederal ReserveTotal cash and cash 1,608,299 1,190,095 341,404 1,071,392 237,244 equivalentsInterest-earningbalances due from 41,982 31,003 6,006 30,362 6,574 depositoryinstitutionsInvestment 2,006,829 1,616,907 1,545,276 1,774,620 1,625,648 securitiesavailable-for-saleInvestment 594,751 626,557 712,199 626,594 725,590 securitiesheld-to-maturityTotal investment 2,601,580 2,243,464 2,257,475 2,401,214 2,351,238 securitiesInvestment in stock 17,688 17,688 17,688 17,688 17,688 of FHLBLoans and lease 8,382,257 8,047,054 7,495,289 7,972,208 7,571,502 finance receivablesAllowance for (93,972 ) (82,752 ) (67,186 ) (82,529 ) (65,358 )credit lossesNet loans and lease 8,288,285 7,964,302 7,428,103 7,889,679 7,506,144 finance receivablesPremises and 52,052 52,719 53,970 52,817 55,436 equipment, netBank owned life 227,333 225,818 224,526 226,209 223,005 insurance (BOLI)Intangibles 37,133 39,287 46,720 39,376 49,682

Goodwill 663,707 663,707 663,707 663,707 665,470

Other assets 189,117 182,972 174,817 183,118 167,955

Total assets $ 13,727,176 $ 12,611,055 $ 11,214,416 $ 12,575,562 $ 11,280,436

Liabilities andStockholders'EquityLiabilities:Deposits:Noninterest-bearing $ 6,731,711 $ 6,204,329 $ 5,227,595 $ 6,063,469 $ 5,136,233

Interest-bearing 4,184,688 3,844,025 3,464,677 3,844,874 3,544,814

Total deposits 10,916,399 10,048,354 8,692,272 9,908,343 8,681,047

Customer repurchase 504,039 442,580 408,273 475,103 446,721 agreementsOther borrowings 10,020 3,981 12,040 4,833 101,138

Junior subordinated 25,774 25,774 25,774 25,774 25,774 debenturesPayable for 157,057 2,697 - 53,630 983 securitiespurchasedOther liabilities 128,045 121,069 110,630 121,579 102,792

Total liabilities 11,741,334 10,644,455 9,248,989 10,589,262 9,358,455

Stockholders'EquityStockholders' 1,948,351 1,928,210 1,957,195 1,956,676 1,927,076 equityAccumulated othercomprehensive 37,491 38,390 8,232 29,624 (5,095 )income (loss), netof taxTotal stockholders' 1,985,842 1,966,600 1,965,427 1,986,300 1,921,981 equityTotal liabilities $ 13,727,176 $ 12,611,055 $ 11,214,416 $ 12,575,562 $ 11,280,436 and stockholders'equityCVB FINANCIAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)(Dollars in thousands, except per share amounts)Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

Interest income:Loans and leases, including fees$

94,200

$

95,352

$

98,796

$

281,669

$

300,326

Investment securities:Investment securities available-for-sale8,447

8,449

9,222

26,945

29,985

Investment securities held-to-maturity3,375

3,660

4,298

11,033

13,249

Total investment income11,822

12,109

13,520

37,978

43,234

Dividends from FHLB stock215

214

301

761

931

Interest-earning deposits with other institutions389

283

946

1,285

1,140

Total interest income106,626

107,958

113,563

321,693

345,631

Interest expense:Deposits2,958

2,995

4,589

10,077

12,553

Borrowings and junior subordinated debentures343

394

815

1,416

4,326

Total interest expense3,301

3,389

5,404

11,493

16,879

Net interest income before provision for credit losses103,325

104,569

108,159

310,200

328,752

Provision for credit losses-

11,500

1,500

23,500

5,000

Net interest income after provision for credit losses103,325

93,069

106,659

286,700

323,752

Noninterest income:Service charges on deposit accounts3,970

3,809

4,833

12,555

15,039

Trust and investment services2,405

2,477

2,330

7,302

6,964

Gain on OREO, net13

-

-

23

129

Gain on sale of building, net1,680

-

-

1,680

4,545

Gain on eminent domain condemnation, net-

-

-

-

5,685

Other5,085

5,866

4,731

15,385

14,040

Total noninterest income13,153

12,152

11,894

36,945

46,402

Noninterest expense:Salaries and employee benefits31,034

28,706

30,122

90,617

88,286

Occupancy and equipment5,275

5,031

4,879

15,143

15,730

Professional services2,019

2,368

1,688

6,643

5,653

Computer software expense2,837

2,754

2,663

8,407

8,032

Marketing and promotion728

1,255

1,517

3,538

4,149

Amortization of intangible assets2,292

2,445

2,648

7,182

8,338

Acquisition related expenses-

-

244

-

6,005

Other5,403

3,839

3,774

13,097

13,474

Total noninterest expense49,588

46,398

47,535

144,627

149,667

Earnings before income taxes66,890

58,823

71,018

179,018

220,487

Income taxes19,398

17,192

20,595

51,915

63,941

Net earnings$

47,492

$

41,631

$

50,423

$

127,103

$

156,546

Basic earnings per common share$

0.35

$

0.31

$

0.36

$

0.93

$

1.12

Diluted earnings per common share$

0.35

$

0.31

$

0.36

$

0.93

$

1.12

Cash dividends declared per common share$

0.18

$

0.18

$

0.18

$

0.54

$

0.54

CVB FINANCIAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)(Dollars in thousands, except per share amounts) Three Months Ended Nine Months Ended

September June 30, September September September 30, 30, 30, 30,

2020 2020 2019 2020 2019

Interest income:Loans and leases, $ 94,200 $ 95,352 $ 98,796 $ 281,669 $ 300,326including feesInvestmentsecurities:Investment 8,447 8,449 9,222 26,945 29,985securitiesavailable-for-saleInvestment 3,375 3,660 4,298 11,033 13,249securitiesheld-to-maturityTotal investment 11,822 12,109 13,520 37,978 43,234incomeDividends from FHLB 215 214 301 761 931stockInterest-earning 389 283 946 1,285 1,140deposits with otherinstitutionsTotal interest 106,626 107,958 113,563 321,693 345,631incomeInterest expense:Deposits 2,958 2,995 4,589 10,077 12,553

Borrowings and 343 394 815 1,416 4,326junior subordinateddebenturesTotal interest 3,301 3,389 5,404 11,493 16,879expenseNet interest income 103,325 104,569 108,159 310,200 328,752before provision forcredit lossesProvision for credit - 11,500 1,500 23,500 5,000lossesNet interest income 103,325 93,069 106,659 286,700 323,752after provision forcredit lossesNoninterest income:Service charges on 3,970 3,809 4,833 12,555 15,039deposit accountsTrust and investment 2,405 2,477 2,330 7,302 6,964servicesGain on OREO, net 13 - - 23 129

Gain on sale of 1,680 - - 1,680 4,545building, netGain on eminent - - - - 5,685domain condemnation,netOther 5,085 5,866 4,731 15,385 14,040

Total noninterest 13,153 12,152 11,894 36,945 46,402incomeNoninterest expense:Salaries and 31,034 28,706 30,122 90,617 88,286employee benefitsOccupancy and 5,275 5,031 4,879 15,143 15,730equipmentProfessional 2,019 2,368 1,688 6,643 5,653servicesComputer software 2,837 2,754 2,663 8,407 8,032expenseMarketing and 728 1,255 1,517 3,538 4,149promotionAmortization of 2,292 2,445 2,648 7,182 8,338intangible assetsAcquisition related - - 244 - 6,005expensesOther 5,403 3,839 3,774 13,097 13,474

Total noninterest 49,588 46,398 47,535 144,627 149,667expenseEarnings before 66,890 58,823 71,018 179,018 220,487income taxesIncome taxes 19,398 17,192 20,595 51,915 63,941

Net earnings $ 47,492 $ 41,631 $ 50,423 $ 127,103 $ 156,546

Basic earnings per $ 0.35 $ 0.31 $ 0.36 $ 0.93 $ 1.12common shareDiluted earnings per $ 0.35 $ 0.31 $ 0.36 $ 0.93 $ 1.12common shareCash dividends $ 0.18 $ 0.18 $ 0.18 $ 0.54 $ 0.54declared per commonshareCVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands, except per share amounts)Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

Interest income - tax equivalent (TE)$

106,950

$

108,305

$

113,964

$

322,732

$

346,912

Interest expense3,301

3,389

5,404

11,493

16,879

Net interest income - (TE)$

103,649

$

104,916

$

108,560

$

311,239

$

330,033

Return on average assets, annualized1.38

%

1.33

%

1.78

%

1.35

%

1.86

%

Return on average equity, annualized9.51

%

8.51

%

10.18

%

8.55

%

10.89

%

Efficiency ratio [1]42.57

%

39.75

%

39.60

%

41.66

%

39.89

%

Noninterest expense to average assets, annualized1.44

%

1.48

%

1.68

%

1.54

%

1.77

%

Yield on average loans4.47

%

4.77

%

5.23

%

4.72

%

5.30

%

Yield on average earning assets (TE)3.45

%

3.82

%

4.55

%

3.82

%

4.63

%

Cost of deposits0.11

%

0.12

%

0.21

%

0.14

%

0.19

%

Cost of deposits and customer repurchase agreements0.11

%

0.12

%

0.22

%

0.14

%

0.21

%

Cost of funds0.11

%

0.13

%

0.23

%

0.15

%

0.24

%

Net interest margin (TE)3.34

%

3.70

%

4.34

%

3.68

%

4.41

%

[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.Weighted average shares outstandingBasic135,016,723

134,998,440

139,823,833

136,368,742

139,729,752

Diluted135,183,918

135,154,479

139,975,372

136,536,372

139,946,685

Dividends declared$

24,419

$

24,417

$

25,276

$

73,252

$

75,692

Dividend payout ratio [2]51.42

%

58.65

%

50.13

%

57.63

%

48.35

%

[2] Dividends declared on common stock divided by net earnings.Number of shares outstanding - (end of period)135,509,143

135,516,316

140,157,063

Book value per share$

14.63

$

14.46

$

14.03

Tangible book value per share$

9.46

$

9.28

$

8.97

September 30,

December 31,

September 30,

2020

2019

2019

Nonperforming assets:Nonaccrual loans$

11,775

$

5,033

$

6,363

Loans past due 90 days or more and still accruing interest-

-

-

Troubled debt restructured loans (nonperforming)-

244

249

Other real estate owned (OREO), net4,189

4,889

9,450

Total nonperforming assets$

15,964

$

10,166

$

16,062

Troubled debt restructured performing loans$

2,217

$

3,112

$

3,168

Percentage of nonperforming assets to total loans outstanding and OREO0.19

%

0.13

%

0.21

%

Percentage of nonperforming assets to total assets0.12

%

0.09

%

0.14

%

Allowance for credit losses to nonperforming assets588.00

%

675.39

%

427.54

%

Nine Months Ended

September 30,

September 30,

2020

2019

Allowance for credit losses:Beginning balance$

68,660

$

63,613

Impact of adopting ASU 2016-131,840

-

Total charge-offs(484

)

(428

)

Total recoveries on loans previously charged-off353

487

Net (charge-offs) recoveries(131

)

59

Provision for credit losses23,500

5,000

Allowance for credit losses at end of period$

93,869

$

68,672

Net (charge-offs) recoveries to average loans-0.002

%

0.001

%

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands, except per share amounts) Three Months Ended Nine Months Ended

September 30, June 30, September 30, September 30, September 30,

2020 2020 2019 2020 2019

Interest income $ 106,950 $ 108,305 $ 113,964 $ 322,732 $ 346,912 - taxequivalent (TE)Interest 3,301 3,389 5,404 11,493 16,879 expenseNet interest $ 103,649 $ 104,916 $ 108,560 $ 311,239 $ 330,033 income - (TE) Return on 1.38 % 1.33 % 1.78 % 1.35 % 1.86 %average assets,annualizedReturn on 9.51 % 8.51 % 10.18 % 8.55 % 10.89 %average equity,annualizedEfficiency 42.57 % 39.75 % 39.60 % 41.66 % 39.89 %ratio [1]Noninterestexpense to 1.44 % 1.48 % 1.68 % 1.54 % 1.77 %average assets,annualizedYield on 4.47 % 4.77 % 5.23 % 4.72 % 5.30 %average loansYield on 3.45 % 3.82 % 4.55 % 3.82 % 4.63 %average earningassets (TE)Cost of 0.11 % 0.12 % 0.21 % 0.14 % 0.19 %depositsCost ofdeposits and 0.11 % 0.12 % 0.22 % 0.14 % 0.21 %customerrepurchaseagreementsCost of funds 0.11 % 0.13 % 0.23 % 0.15 % 0.24 %

Net interest 3.34 % 3.70 % 4.34 % 3.68 % 4.41 %margin (TE)[1] Noninterest expense divided by net interest income before provision forcredit losses plus noninterest income. Weightedaverage sharesoutstandingBasic 135,016,723 134,998,440 139,823,833 136,368,742 139,729,752

Diluted 135,183,918 135,154,479 139,975,372 136,536,372 139,946,685

Dividends $ 24,419 $ 24,417 $ 25,276 $ 73,252 $ 75,692 declaredDividend payout 51.42 % 58.65 % 50.13 % 57.63 % 48.35 %ratio [2][2] Dividends declared on common stock divided by net earnings. Number ofshares 135,509,143 135,516,316 140,157,063 outstanding -(end of period)Book value per $ 14.63 $ 14.46 $ 14.03 shareTangible book $ 9.46 $ 9.28 $ 8.97 value per share September 30, December 31, September 30,

2020 2019 2019

Nonperformingassets:Nonaccrual $ 11,775 $ 5,033 $ 6,363 loansLoans past due90 days or more - - - and stillaccruinginterestTroubled debtrestructured - 244 249 loans(nonperforming)Other real 4,189 4,889 9,450 estate owned(OREO), netTotal $ 15,964 $ 10,166 $ 16,062 nonperformingassetsTroubled debtrestructured $ 2,217 $ 3,112 $ 3,168 performingloans Percentage ofnonperformingassets to total 0.19 % 0.13 % 0.21 %loansoutstanding andOREOPercentage ofnonperforming 0.12 % 0.09 % 0.14 %assets to totalassetsAllowance forcredit losses 588.00 % 675.39 % 427.54 %tononperformingassets Nine Months Ended

September 30, September 30,

2020 2019

Allowance forcredit losses:Beginning $ 68,660 $ 63,613 balanceImpact of 1,840 - adopting ASU2016-13Total (484 ) (428 )charge-offsTotalrecoveries on 353 487 loanspreviouslycharged-offNet (131 ) 59 (charge-offs)recoveriesProvision for 23,500 5,000 credit lossesAllowance forcredit losses $ 93,869 $ 68,672 at end ofperiod Net(charge-offs) -0.002 % 0.001 %recoveries toaverage loansCVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in millions)Allowance for Credit Losses by Loan TypeSeptember 30, 2020June 30, 2020December 31, 2019AllowanceFor CreditLossesAllowanceas a % ofTotal Loansby RespectiveLoan TypeAllowanceFor CreditLossesAllowanceas a % ofTotal Loansby RespectiveLoan TypeAllowanceFor LoanLossesAllowanceas a % ofTotal Loansby RespectiveLoan TypeCommercial and industrial$

8.6

1.1

%

$

8.0

1.0

%

$

8.9

0.9

%

SBA3.5

1.1

%

3.7

1.2

%

1.5

0.5

%

SBA - PPP-

-

-

-

-

-

Real estate:Commercial real estate74.5

1.4

%

74.9

1.4

%

48.6

0.9

%

Construction1.9

1.9

%

2.3

1.8

%

0.9

0.7

%

SFR mortgage0.2

0.1

%

0.2

0.1

%

2.3

0.8

%

Dairy & livestock and agribusiness3.7

1.5

%

3.4

1.3

%

5.3

1.4

%

Municipal lease finance receivables0.2

0.4

%

0.3

0.6

%

0.6

1.2

%

Consumer and other loans1.3

1.4

%

1.2

1.4

%

0.6

0.5

%

Total$

93.9

1.1

%

$

94.0

1.1

%

$

68.7

0.9

%

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in millions)Allowance for Credit Losses by Loan Type September 30, 2020 June 30, 2020 December 31, 2019 Allowance Allowance Allowance Allowance as a % of Allowance as a % of as a % of For Total For Total Allowance Total Credit Loans Credit Loans For Loan Loans Losses by Losses by Losses by Respective Respective Respective Loan Type Loan Type Loan Type Commercial and $ 8.6 1.1 % $ 8.0 1.0 % $ 8.9 0.9 %industrialSBA 3.5 1.1 % 3.7 1.2 % 1.5 0.5 %

SBA - PPP - - - - - -

Real estate:Commercial real 74.5 1.4 % 74.9 1.4 % 48.6 0.9 %estateConstruction 1.9 1.9 % 2.3 1.8 % 0.9 0.7 %

SFR mortgage 0.2 0.1 % 0.2 0.1 % 2.3 0.8 %

Dairy & livestock 3.7 1.5 % 3.4 1.3 % 5.3 1.4 %and agribusinessMunicipal lease 0.2 0.4 % 0.3 0.6 % 0.6 1.2 %finance receivablesConsumer and other 1.3 1.4 % 1.2 1.4 % 0.6 0.5 %loans Total $ 93.9 1.1 % $ 94.0 1.1 % $ 68.7 0.9 %

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands, except per share amounts)Quarterly Common Stock Price2020

2019

2018

Quarter EndHigh

Low

High

Low

High

Low

March 31,$

22.01

$

14.92

$

23.18

$

19.94

$

25.14

$

21.64

June 30,$

22.22

$

15.97

$

22.22

$

20.40

$

24.11

$

21.92

September 30,$

19.87

$

15.57

$

22.23

$

20.00

$

24.97

$

22.19

December 31,$

22.18

$

19.83

$

23.51

$

19.21

Quarterly Consolidated Statements of EarningsQ3

Q2

Q1

Q4

Q3

2020

2020

2020

2019

2019

Interest incomeLoans and leases, including fees$

94,200

$

95,352

$

92,117

$

97,302

$

98,796

Investment securities and other12,426

12,606

14,992

14,917

14,767

Total interest income106,626

107,958

107,109

112,219

113,563

Interest expenseDeposits2,958

2,995

4,124

4,567

4,589

Other borrowings343

394

679

632

815

Total interest expense3,301

3,389

4,803

5,199

5,404

Net interest income before provision for credit losses103,325

104,569

102,306

107,020

108,159

Provision for credit losses-

11,500

12,000

-

1,500

Net interest income after provision for credit losses103,325

93,069

90,306

107,020

106,659

Noninterest income13,153

12,152

11,640

12,640

11,894

Noninterest expense49,588

46,398

48,641

49,073

47,535

Earnings before income taxes66,890

58,823

53,305

70,587

71,018

Income taxes19,398

17,192

15,325

19,306

20,595

Net earnings$

47,492

$

41,631

$

37,980

$

51,281

$

50,423

Effective tax rate29.00

%

29.23

%

28.75

%

27.35

%

29.00

%

Basic earnings per common share$

0.35

$

0.31

$

0.27

$

0.37

$

0.36

Diluted earnings per common share$

0.35

$

0.31

$

0.27

$

0.37

$

0.36

Cash dividends declared per common share$

0.18

$

0.18

$

0.18

$

0.18

$

0.18

Cash dividends declared$

24,419

$

24,417

$

24,416

$

25,248

$

25,276

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands, except per share amounts)Quarterly Common Stock Price 2020 2019 2018

Quarter High Low High Low High LowEndMarch 31, $ 22.01 $ 14.92 $ 23.18 $ 19.94 $ 25.14 $ 21.64

June 30, $ 22.22 $ 15.97 $ 22.22 $ 20.40 $ 24.11 $ 21.92

September $ 19.87 $ 15.57 $ 22.23 $ 20.00 $ 24.97 $ 22.19 30,December $ 22.18 $ 19.83 $ 23.51 $ 19.21 31, Quarterly Consolidated Statements of Earnings Q3 Q2 Q1 Q4 Q3

2020 2020 2020 2019 2019

Interest incomeLoans and leases, $ 94,200 $ 95,352 $ 92,117 $ 97,302 $ 98,796 including feesInvestment 12,426 12,606 14,992 14,917 14,767 securities andotherTotal interest 106,626 107,958 107,109 112,219 113,563 incomeInterest expenseDeposits 2,958 2,995 4,124 4,567 4,589

Other borrowings 343 394 679 632 815

Total interest 3,301 3,389 4,803 5,199 5,404 expenseNet interest income 103,325 104,569 102,306 107,020 108,159 before provisionfor credit lossesProvision for - 11,500 12,000 - 1,500 credit lossesNet interest income 103,325 93,069 90,306 107,020 106,659 after provision forcredit losses Noninterest income 13,153 12,152 11,640 12,640 11,894

Noninterest expense 49,588 46,398 48,641 49,073 47,535

Earnings before 66,890 58,823 53,305 70,587 71,018 income taxesIncome taxes 19,398 17,192 15,325 19,306 20,595

Net earnings $ 47,492 $ 41,631 $ 37,980 $ 51,281 $ 50,423

Effective tax rate 29.00 % 29.23 % 28.75 % 27.35 % 29.00 %

Basic earnings per $ 0.35 $ 0.31 $ 0.27 $ 0.37 $ 0.36 common shareDiluted earnings $ 0.35 $ 0.31 $ 0.27 $ 0.37 $ 0.36 per common share Cash dividends $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 declared per commonshare Cash dividends $ 24,419 $ 24,417 $ 24,416 $ 25,248 $ 25,276 declaredCVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands)Loan Portfolio by TypeSeptember 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2020

2019

2019

Commercial and industrial$

817,056

$

840,738

$

960,761

$

935,127

$

921,678

SBA304,987

300,156

313,071

305,008

319,571

SBA - PPP1,101,142

1,097,150

-

-

-

Real estate:Commercial real estate5,428,223

5,365,120

5,347,925

5,374,617

5,375,668

Construction101,903

125,815

128,045

116,925

119,931

SFR mortgage274,731

286,526

278,743

283,468

278,644

Dairy & livestock and agribusiness252,802

251,821

272,114

383,709

311,229

Municipal lease finance receivables38,040

49,876

51,287

53,146

54,468

Consumer and other loans88,988

85,332

114,206

116,319

117,128

Gross loans8,407,872

8,402,534

7,466,152

7,568,319

7,498,317

Less:Deferred loan fees, net [1]-

-

-

(3,742

)

(3,866

)

Gross loans, net of deferred loan fees and discounts8,407,872

8,402,534

7,466,152

7,564,577

7,494,451

Allowance for credit losses(93,869

)

(93,983

)

(82,641

)

(68,660

)

(68,672

)

Net loans$

8,314,003

$

8,308,551

$

7,383,511

$

7,495,917

$

7,425,779

[1] Beginning with March 31, 2020, gross loans are presented net of deferred loan fees by respective class of financing receivables.Deposit Composition by Type and Customer Repurchase AgreementsSeptember 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2020

2019

2019

Noninterest-bearing$

6,919,423

$

6,901,368

$

5,572,649

$

5,245,517

$

5,385,104

Investment checking447,910

472,509

454,153

454,565

433,615

Savings and money market3,356,353

3,150,013

2,635,364

2,558,538

2,513,888

Time deposits445,148

459,690

451,438

446,308

461,723

Total deposits11,168,834

10,983,580

9,113,604

8,704,928

8,794,330

Customer repurchase agreements483,420

468,156

368,915

428,659

407,850

Total deposits and customer repurchase agreements$

11,652,254

$

11,451,736

$

9,482,519

$

9,133,587

$

9,202,180

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands)Loan Portfolio by Type September 30, June 30, March 31, December 31, September 30,

2020 2020 2020 2019 2019

Commercial and $ 817,056 $ 840,738 $ 960,761 $ 935,127 $ 921,678 industrialSBA 304,987 300,156 313,071 305,008 319,571

SBA - PPP 1,101,142 1,097,150 - - -

Real estate:Commercial real 5,428,223 5,365,120 5,347,925 5,374,617 5,375,668 estateConstruction 101,903 125,815 128,045 116,925 119,931

SFR mortgage 274,731 286,526 278,743 283,468 278,644

Dairy & livestock 252,802 251,821 272,114 383,709 311,229 and agribusinessMunicipal lease 38,040 49,876 51,287 53,146 54,468 finance receivablesConsumer and other 88,988 85,332 114,206 116,319 117,128 loansGross loans 8,407,872 8,402,534 7,466,152 7,568,319 7,498,317

Less:Deferred loan fees, - - - (3,742 ) (3,866 )net [1]Gross loans, net of 8,407,872 8,402,534 7,466,152 7,564,577 7,494,451 deferred loan feesand discountsAllowance for (93,869 ) (93,983 ) (82,641 ) (68,660 ) (68,672 )credit lossesNet loans $ 8,314,003 $ 8,308,551 $ 7,383,511 $ 7,495,917 $ 7,425,779

[1] Beginning with March 31, 2020, gross loans are presented net of deferredloan fees by respective class of financing receivables. Deposit Composition by Type and Customer Repurchase Agreements September 30, June 30, March 31, December 31, September 30,

2020 2020 2020 2019 2019

Noninterest-bearing $ 6,919,423 $ 6,901,368 $ 5,572,649 $ 5,245,517 $ 5,385,104

Investment checking 447,910 472,509 454,153 454,565 433,615

Savings and money 3,356,353 3,150,013 2,635,364 2,558,538 2,513,888 marketTime deposits 445,148 459,690 451,438 446,308 461,723

Total deposits 11,168,834 10,983,580 9,113,604 8,704,928 8,794,330

Customer repurchase 483,420 468,156 368,915 428,659 407,850 agreementsTotal deposits and $ 11,652,254 $ 11,451,736 $ 9,482,519 $ 9,133,587 $ 9,202,180 customer repurchaseagreementsCVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands)Nonperforming Assets and Delinquency TrendsSeptember 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2020

2019

2019

Nonperforming loans [1]:Commercial and industrial$

1,822

$

1,222

$

1,703

$

1,266

$

1,550

SBA1,724

1,598

2,748

2,032

2,706

Real estate:Commercial real estate6,481

2,628

947

724

1,083

Construction-

-

-

-

-

SFR mortgage675

1,080

864

878

888

Dairy & livestock and agribusiness849

-

-

-

-

Consumer and other loans224

289

166

377

385

Total$

11,775

$

6,817

$

6,428

$

5,277

$

6,612

% of Total loans0.14

%

0.08

%

0.09

%

0.07

%

0.09

%

Past due 30-89 days:Commercial and industrial$

3,627

$

630

$

665

$

2

$

756

SBA66

214

3,086

1,402

303

Real estate:Commercial real estate-

4

210

-

368

Construction-

-

-

-

-

SFR mortgage-

446

233

249

-

Dairy & livestock and agribusiness-

882

166

-

-

Consumer and other loans67

413

-

-

-

Total$

3,760

$

2,589

$

4,360

$

1,653

$

1,427

% of Total loans0.04

%

0.03

%

0.06

%

0.02

%

0.02

%

OREO:SBA$

797

$

797

$

797

$

797

$

444

Real estate:Commercial real estate1,575

2,275

2,275

2,275

2,275

SFR mortgage1,817

1,817

1,817

1,817

6,731

Total$

4,189

$

4,889

$

4,889

$

4,889

$

9,450

Total nonperforming, past due, and OREO$

19,724

$

14,295

$

15,677

$

11,819

$

17,489

% of Total loans0.23

%

0.17

%

0.21

%

0.16

%

0.23

%

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands)Nonperforming Assets and Delinquency Trends September June 30, March 31, December September 30, 31, 30,

2020 2020 2020 2019 2019

Nonperformingloans [1]:Commercial and $ 1,822 $ 1,222 $ 1,703 $ 1,266 $ 1,550 industrialSBA 1,724 1,598 2,748 2,032 2,706

Real estate:Commercial real 6,481 2,628 947 724 1,083 estateConstruction - - - - -

SFR mortgage 675 1,080 864 878 888

Dairy & 849 - - - - livestock andagribusinessConsumer and 224 289 166 377 385 other loansTotal $ 11,775 $ 6,817 $ 6,428 $ 5,277 $ 6,612

% of Total 0.14 % 0.08 % 0.09 % 0.07 % 0.09 %loans Past due 30-89days:Commercial and $ 3,627 $ 630 $ 665 $ 2 $ 756 industrialSBA 66 214 3,086 1,402 303

Real estate:Commercial real - 4 210 - 368 estateConstruction - - - - -

SFR mortgage - 446 233 249 -

Dairy & - 882 166 - - livestock andagribusinessConsumer and 67 413 - - - other loansTotal $ 3,760 $ 2,589 $ 4,360 $ 1,653 $ 1,427

% of Total 0.04 % 0.03 % 0.06 % 0.02 % 0.02 %loans OREO:SBA $ 797 $ 797 $ 797 $ 797 $ 444

Real estate:Commercial real 1,575 2,275 2,275 2,275 2,275 estateSFR mortgage 1,817 1,817 1,817 1,817 6,731

Total $ 4,189 $ 4,889 $ 4,889 $ 4,889 $ 9,450

Totalnonperforming, $ 19,724 $ 14,295 $ 15,677 $ 11,819 $ 17,489 past due, andOREO% of Total 0.23 % 0.17 % 0.21 % 0.16 % 0.23 %loans[1] As of June 30, 2020, nonperforming loans included $25,000 of commercial and industrial loans past due 90 days or more and still accruing.[1] As of June 30, 2020, nonperforming loans included $25,000 of commercial andindustrial loans past due 90 days or more and still accruing.CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)Regulatory Capital RatiosCVB Financial Corp. ConsolidatedMinimum Required Plus

September 30,

June 30,

December 31,

Capital RatiosCapital Conservation Buffer

2020

2020

2019

Tier 1 leverage capital ratio4.0

%

9.9

%

10.6

%

12.3

%

Common equity Tier 1 capital ratio7.0

%

14.6

%

14.5

%

14.8

%

Tier 1 risk-based capital ratio8.5

%

14.9

%

14.8

%

15.1

%

Total risk-based capital ratio10.5

%

16.1

%

16.0

%

16.0

%

Tangible common equity ratio9.8

%

9.6

%

12.2

%

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 September 30, 2020, December 31, 2019 and September 30, 2019.

CVB FINANCIAL CORP. AND SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)Regulatory Capital Ratios CVB Financial Corp. Consolidated Minimum Required Plus September June December 30, 30, 31,

Capital Conservation 2020 2020 2019Capital Ratios Buffer

Tier 1 leverage capital 4.0 % 9.9 % 10.6 % 12.3 %ratioCommon equity Tier 1 7.0 % 14.6 % 14.5 % 14.8 %capital ratioTier 1 risk-based capital 8.5 % 14.9 % 14.8 % 15.1 %ratioTotal risk-based capital 10.5 % 16.1 % 16.0 % 16.0 %ratio Tangible common equity 9.8 % 9.6 % 12.2 %ratio 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 September 30, 2020, December 31, 2019 and September 30, 2019.

September 30, December 31, September 30,

2020 2019 2019

(Dollars in thousands, except per share amounts)

Stockholders' equity $ 1,981,957 $ 1,994,098 $ 1,966,893

Less: Goodwill (663,707 ) (663,707 ) (663,707 )

Less: Intangible assets (35,804 ) (42,986 ) (45,446 )

Tangible book value $ 1,282,446 $ 1,287,405 $ 1,257,740

Common shares issued and 135,509,143 140,102,480 140,157,063 outstandingTangible book value per share $ 9.46 $ 9.19 $ 8.97

Return on Average Tangible Common Equity Reconciliations (Non-GAAP)

The return on average tangible common equity 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 net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.

Three Months Ended Nine Months Ended

September 30, June 30, September 30, September 30, September 30,

2020 2020 2019 2020 2019

(Dollars in thousands) Net Income $ 47,492 $ 41,631 $ 50,423 $ 127,103 $ 156,546

Add:Amortization 2,292 2,445 2,648 7,182 8,338 of intangibleassetsLess: Taxeffect of (678 ) (723 ) (783 ) (2,123 ) (2,465 )amortizationof intangibleassets [1]Tangible net $ 49,106 $ 43,353 $ 52,288 $ 132,162 $ 162,419 income Average $ 1,985,842 $ 1,966,600 $ 1,965,427 $ 1,986,300 $ 1,921,981 stockholders'equityLess: Average (663,707 ) (663,707 ) (663,707 ) (663,707 ) (665,470 )goodwillLess: Average (37,133 ) (39,287 ) (46,720 ) (39,376 ) (49,682 )intangibleassetsAverage $ 1,285,002 $ 1,263,606 $ 1,255,000 $ 1,283,217 $ 1,206,829 tangiblecommon equity Return onaverage 9.51 % 8.51 % 10.18 % 8.55 % 10.89 %equity,annualizedReturn onaveragetangible 15.20 % 13.80 % 16.53 % 13.76 % 17.99 %commonequity,annualized[1] Tax effected at respective statutory rates. View source version on businesswire.com: https://www.businesswire.com/news/home/20201021006001/en/

CONTACT: David A. Brager Chief Executive Officer (909) 980-4030