Company: CVBF
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-051966
Chunk: 89

Company: CVB FINANCIAL CORP
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 89
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 functions tie more closely to these credit-related performance and management goals than those of our other NEOs.

For the first component, which was based on the five financial performance metrics set forth in Mr. Farnsworth’s incentive performance plan, as enumerated in the preceding Tables, Mr. Farnsworth’s aggregate incentive compensation for 2024 was $57,680. This amount was based on achieving the Level 1 benchmark on three of the five financial metrics and falling short of the Level 1 threshold on the other two financial metrics.

For the second component, in calculating the plan-based discretionary bonus to be paid to Mr. Farnsworth for 2024, the Compensation Committee acknowledged that the short term increases in delinquent loans experienced by Citizens Business Bank’s loan portfolio during the latter part of 2024 were primarily due to unique credit issues with a discrete group of four borrowers, and that the loans in question were expected to incur minimal (if any) losses due to proactive credit management and conservative underwriting at the time of loan origination. In addition, the Committee noted Mr. Farnsworth’s key role in

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supporting the sales-credit partnership throughout Citizens Business Bank’s geographic footprint, including implementation during 2024 of electronic loan processing across all of Citizens Business Bank’s geographic sales regions. Lastly, the Committee recognized that, under Mr. Farnsworth’s leadership, the Credit Management Department had reviewed and adopted validated stress testing models for Citizens Business Bank’s commercial real estate and commercial and industrial loan portfolios during 2024. In view of these considerations, the Compensation Committee approved a plan-based discretionary bonus of $82,400 for Mr. Farnsworth (which represents 20% of his base salary in effect as of March 1, 2024).

As a result of this mix of accomplishments, the Compensation Committee awarded Mr. Farnsworth an aggregate objective incentive award and plan-based discretionary bonus award equal to $140,080 for 2024, which represents a cumulative total of 34% of his base salary in effect as of March 1, 2024. This compared to an aggregate amount of 48.5% of base salary for 2023 (which amount included a one-time supplemental discretionary bonus).

Mr. Harvey’s Annual Bonus.Mr. Harvey’s incentive compensation and bonus compensation for 2024 likewise consisted of our traditional two components of a metrics-based incentive award and a plan-based discretionary award, pursuant to the financial metrics and subjective criteria outlined in his ECP Plan.