Fourth Quarter 2024

• Net Earnings of $51 million, or $0.36 per share
• Return on Average Assets of 1.30%
• Net Interest Margin of 3.18%

• Net Earnings of $201 million, or $1.44 per share
• Return on Average Tangible Common Equity of 14.95%

CVB Financial Corp. reported net income of $50.9 million for the quarter ended December 31, 2024, compared with $51.2 million for the third quarter of 2024 and $48.5 million for the fourth quarter of 2023. Diluted earnings per share were $0.36 for the fourth quarter, compared with $0.37 for the prior quarter and $0.35 for the same period last year.

For the fourth quarter of 2024, annualized return on average equity ("ROAE”) was 9.14%, annualized return on average tangible common equity ("ROATCE”) was 14.31%, and annualized return on average assets ("ROAA”) was 1.30%.

For the year ended December 31, 2024, the Company reported net income of $200.7 million, compared with $221.4 million for the year ended December 31, 2023. Diluted earnings per share were $1.44 for the year ended December 31, 2024, compared to $1.59 for the same period last year. For the year ended December 31, 2024, ROAA was 1.24% and ROATCE was 14.95%, which compares to a 1.35% ROAA and 18.48% ROATCE for 2023.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, "We are pleased with our fourth quarter results which represents our 191^st consecutive quarter of profitability. I would like to thank our customers for their loyalty and our associates for their commitment.”

Highlights for the Fourth Quarter of 2024

• Net interest margin of 3.18%
• Efficiency Ratio of 47.34%
• TCE Ratio = 9.82% & CET1 Ratio > 16%
• Announced 10 million Share Repurchase Program
• Q4 average deposits and customer repurchase agreements increased by $150 million
• Noninterest-bearing deposits were 59% of total deposits
• Executed the sale and leaseback of two buildings generating pre-tax gains of $16.8 million
• Sold $155 million in AFS securities for a pre-tax loss of $16.7 million
• Loans declined by $36 million, or 0.4% from the end of the third quarter of 2024
• Net recoveries were $180,000 for the fourth quarter of 2024
• $19 million increase in OREO
• $3 million recapture of allowance for credit losses

• Net interest margin of 3.09%
• Efficiency ratio
• Grew non-maturity deposits by $338 million from the end of 2023
• Loans declined by $368 million, or 4.1% from the end of 2023
• Sold $467 million in AFS securities for a pre-tax loss of $28.3 million
• Executed the sale and leaseback of four buildings generating pre-tax gains of $25.9 million
• Redeemed $2.1 billion of Bank Term Funding Program borrowings

Net interest income was $110.4 million for the fourth quarter of 2024. This represented a $3.2 million, or 2.82%, decrease from the third quarter of 2024, and a $8.9 million, or 7.49%, decrease from the fourth quarter of 2023. The quarter-over-quarter decrease in net interest income was due to a $18.2 million decrease in interest income resulting from a $974 million average decrease in earning assets and a 19 basis point decline in our earning asset yield. The decline in earning assets was primarily a result of a $747 million decrease in interest-earning balances due from the Federal Reserve. The decrease in balances held at the Federal Reserve were the result of the $1.3 billion redemption of a Bank Term Fund Program (BTFP) advance at the end of the third quarter of 2024, which resulted in average total borrowings declining by $1.22 billion in the fourth quarter of 2024. The decline in interest income was partially offset by $15 million decrease in interest expense, including the $14.9 million lower interest on borrowings from the redemption of the BTFP advance.

The decline in net interest income compared to the fourth quarter of 2023 was primarily due to a $10.5 million decrease in interest income resulting from a $684 million decrease in average earning assets and a 6 basis point decline in our earning asset yield. Interest expense decreased by $1.5 million compared to the fourth quarter of 2023, primarily due to $1.1 billion in lower average borrowings in the fourth quarter of 2024.

Net interest income of $447.3 million for the year ended December 31, 2024, decreased $40.6 million, or 8.33%, compared to the same period of 2023. Interest income increased by $23.8 million, while interest expense grew by $64.4 million from 2023. Growth in interest income was primarily due to a 25 basis point increase in the earning asset yield. Interest expense on deposits and customer repurchase agreements increased by $57.8 million, primarily due to a 49 basis point increase in the cost of deposits and repurchase agreements. Average borrowings grew by $163.6 million year over year, resulting in a $6.1 million increase in interest expense. Overall, cost of funds grew from 0.83% for 2023 to 1.32% in 2024.

Net Interest Margin

Our tax equivalent net interest margin was 3.18% for the fourth quarter and 3.05% for the third quarter of 2024, compared to 3.26% for the fourth quarter of 2023. Fourth quarter cost of funds decreased 34 basis points compared to the third quarter of 2024, partially offset by a 19 basis point decrease in our interest-earning asset yield. Our cost of funds decreased from 1.47% in the third quarter of 2024 to 1.13% in the fourth quarter, as average borrowings declined quarter over quarter by $1.2 billion. The cost of borrowings decreased from 4.77% in the third quarter of 2024 to 4.62% in the fourth quarter due to the redemption of a $1.3 billion BTFP advance in September 2024. In addition, cost of deposits and customer repurchase agreements decreased by four basis points to 0.97% for the fourth quarter of 2024. The 19 basis point quarter over quarter decrease in our interest-earning asset yield was primarily due to a 16 basis point decrease in loan yields and an 80 basis point decrease in the positive carry on fair value hedging instruments that pay a fixed interest rate and receive daily SOFR. These swaps originally had a total notional value of $1 billion, of which $700 million remained outstanding at December 31, 2024. A $300 million swap that matured in 2027 was terminated in December of 2024. The fourth quarter yield on funds on deposit at the Federal Reserve decreased by 50 basis points compared to the third quarter of 2024, although these funds decreased as a percentage of earnings assets to 3.5%, from 8.2% in the prior quarter.

Net interest margin for the fourth quarter of 2024 decreased by 8 basis points compared to the fourth quarter of 2023, as a result of lower interest earning asset yields that declined by 6 basis points and a 4 basis point increase in funding costs. Earning asset yields declined from 4.30% in the fourth quarter of 2023 to 4.24% in the fourth quarter of 2024. The lower earning asset yields included lower loan yields, which declined from 5.18% for the fourth quarter of 2023 to 5.15% for the fourth quarter of 2024, as well as a 66 basis point quarter over quarter decrease in the positive carry on fair value hedging instruments. Funds on deposit at the Federal Reserve yielded 100 basis points less than the prior year quarter. Compared to the fourth quarter of 2023, the cost of deposits and customer repurchase agreements increased by 36 basis points in the fourth quarter of 2024, but cost of funds only increased by 4 basis points due to a $1.1 billion decrease in average borrowings.

Earning Assets and Deposits

On average, total earning assets declined by $974 million, or 6.52%, compared to the third quarter of 2024 and declined by $684 million, or 4.67% when compared to the fourth quarter of 2023. The quarter-over-quarter decrease includes a $747 million decrease in average funds on deposit at the Federal Reserve, $143.5 million decline in average investment securities, and a $82.7 million decrease in average loans outstanding. Compared to the fourth quarter of 2023, the decrease in earnings assets was primarily due to a $328.1 million decline in average loans outstanding and a $391.7 million decrease in total investment securities.   Total deposits and customer repurchase agreements increased on average by $150.5 million compared to the third quarter of 2024 and increased on average by $115.3 million from the fourth quarter of 2023. Noninterest-bearing deposits declined on average by $8.9 million, or 0.12%, from the third quarter of 2024 and by $334.8 million, or 4.5%, from the fourth quarter of 2023. On average, noninterest-bearing deposits were 58.7% of total deposits for the fourth quarter of 2024, compared to 59.10% for the third quarter of 2024 and 61.30% in the fourth quarter of 2023.