Company: CVBF
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-051966
Chunk: 6

Company: CVB FINANCIAL CORP
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 6
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 labor costs, as well as water scarcity and allocation issues, while California’s dairy industry benefitted in 2024 from improving milk prices and lower feed costs, although California dairies have also been disproportionately affected by the recent spread of bird flu to bovine populations.

The banking environment presented a mixed picture in 2024. On the positive side, the U.S. economy grew a higher-than-expected rate of approximately 2.8%, while adding in excess of two million jobs. Inflation continued to moderate from an annualized rate of 3.4% in December 2023 to a rate of 2.5% by August 2024. This in turn led the Federal Reserve Bank to cut short-term interest rates three times in 2024, reducing the federal funds rate from 5.5% to 4.5 %. However, bank funding costs persisted in trending higher during most of 2024, and bank operational and compliance risks increased, due to evolving cyber threats from malicious actors and enhanced regulatory oversight due to prominent regional bank failures in 2023. Commercial credit risk remained elevated, particularly in certain pockets such as the office and retail real estate sectors, and commercial real estate lending levels remained muted compared to prior years. In addition, due to the 2023 regional bank failures, many banks, including Citizens Business Bank, continued to experience deposit outflows and higher borrowing costs. The sheer variety and combination of these numerous economic and financial market cross-currents created a demanding environment for banking institutions during the course of 2024.

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We believe that CVB Financial Corp. and Citizens Business Bank performed respectably during 2024, particularly on a relative basis compared to our peers, across a range of financial and credit metrics. Most importantly, the Company maintained its traditionally safe and sound financial position and stable customer franchise in a demanding environment, while exceeding the threshold of earning over $200 million in a fiscal year for the fifth time in our 50-year history. As a result, over the course of 2024, CVB Financial Corp. continued its record of achieving its 191st consecutive quarter of profitability, and its 141st consecutive quarter of paying our shareholders cash dividends. Additionally, for 2024 CVB Financial Corp. was ranked by S&P Global Market Intelligence as one of the Top 50 Best-Performing U.S. Public Banks, Citizens Business Bank was designated as a “Super Premier” Performing Bank by The Findley Reports, and the Company received a Five-Star