Company: CVBF
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029985
Chunk: 241

Company: CVB FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 241
---
 customers, provided there is no violation of any material condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments are generally variable rate, and many of these commitments are expected to expire without being drawn upon. As such, the total commitment amounts do not necessarily represent future cash requirements. We use the same credit underwriting policies in granting or accepting such commitments or contingent obligations as we do for on-balance sheet instruments, which consist of evaluating customers’ creditworthiness individually. The Bank had a reserve for unfunded loan commitments of $6.3 million and $7.5 million as of December 31, 2024 and 2023, respectively, which is included in other liabilities. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing or purchase arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. When deemed necessary, we hold appropriate collateral supporting those commitments.  Management does not anticipate any material losses as a result of these transactions.We invest in LIHTC, tax credit and other CRA-related investments that call for capital contributions up to an amount specified in the partnership agreements. At December 31, 2024 and December 31, 2023, we had commitments to contribute capital to these entities totaling $45.8 million and $8.7 million. At December 31, 2024, the Bank had $0.50 billion in borrowings with the FHLB. The Bank's secured borrowing capacity with the FHLB and FRB totaled $5.73 billion, of which $5.23 billion was available as of December 31, 2024.  The Bank also has $305.0 million in Fed Funds lines of credit with other major U.S. banks. These lines of credit are available for overnight borrowings.At December 31, 2024, investment securities with carrying values of 2.79 billion were pledged to secure various types of deposits, including $1.18 billion of public funds, $315 million for repurchase agreements and $57 million for other purposes as required or permitted by law. In addition, investment securities with carrying values of $1.63 billion were pledged for unused borrowing capacity.

122

 Other Contingencies The Company and its subsidiaries are parties to various lawsuits and threatened lawsuits in the