Company: CVBF
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029985
Chunk: 169

Company: CVB FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 169
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-quarter, primarily due to a $24.6 million decrease in classified commercial real estate loans and a $10.8 million decrease in classified dairy & livestock and agribusiness loans. Classified loans as a percentage of total loans was 1.05% at December 31, 2024, compared to 1.45% at September 30, 2024 and 1.15% at December 31, 2023.

At December 31, 2024 we had four OREO properties totaling $19.3 million which were all additions to OREO in the year ended December 31, 2024, consisting of three commercial real estate properties and one single-family residential property. At December 31, 2023, we had no OREO properties.

Changes in economic and business conditions have had an impact on our market area and on our loan portfolio. We continually monitor these conditions in determining our estimates of needed reserves. However, we cannot predict the extent to which the deterioration in general economic conditions, real estate values, changes in general rates of interest and changes 

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in the financial conditions or business of a borrower may adversely affect a specific borrower’s ability to pay or the value of our collateral. See “Risk Management – Credit Risk Management” included herein. 

Allowance for Credit Losses 

The allowance for credit losses totaled $80.1 million as of December 31, 2024, compared to $86.8 million as of December 31, 2023. Our allowance for credit losses at December 31, 2024 was 0.94% of total loans, compared to 0.98% at December 31, 2023. The ACL decreased by $6.7 million for 2024, including $3.0 million recapture of provision for credit losses. The ACL increased by $1.7 million for 2023, including $2.0 million in provision for credit losses. The ACL increased by $20.1 million for 2022 compared to December 31, 2021, including $8.6 million for the acquired Suncrest PCD loans and $10.6 million in provision for credit losses for 2022.  Net charge-offs were $3.7 million for 2024, which compares with net charge-offs of $275,000 for 2023. 

The allowance for credit losses as of December 31, 2024 is based upon lifetime loss rate models developed from an