CVBF - Earnings call transcript Q3 2020

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Operator

Good morning, ladies and gentlemen, and welcome to the Third Quarter 2020 CVB Financial Corporation and its Subsidiary Citizens Business Bank Earnings Conference Call. My name is Kate and I'll be your operator today. [Operator Instructions] Later we will conduct the question-and-answer period. [Operator Instructions] I would now like to turn the presentation over to your host for today's call Christina Carrabino.

You may proceed.

Christina Carrabino

good and Kate, you, morning everyone. Thank for results for you joining XXXX. us financial our review to the today Thank third of quarter

Joining President Dave Allen are me Executive this and Officer Brager, Nicholson, Chief and Chief Vice Financial Officer. Executive morning

the website refer in announcement click tab. the at To www.cbbank.com today yesterday. that copy, a earnings information Investors to and comments was financial Our please released obtain will included the visit our on

business actions on the contained to in governmental by include pandemic. The Private some Securities protection we the current Among today's will Before industry started financial customers conference relate affect statements the operating the will the impact be The our significantly business prospects. position. remind let plans, financial may ultimate in company's industry future uncertain the and of speakers are results materially and and and and company's authorities things, statements. that you other safe forward-looking activities Act partners cannot the affect to get this me economy, events results and business trends ongoing XXXX. other forward-looking the that future the and taken expectations. claim These provisions results call differ on future call response risks pandemic among the expectations, impact COVID-XX the statements uncertainties of of depend duration harbor the developments, involve predicted, scope Reform and banking may including and highly which risks pandemic, and our Litigation our on may and these Such from on

ended see that statements, in XX, of actual XXXX, in forth the For materially to the company's Form the report cause particular, and a may on please Factors annual from year therein. set for results our XX-K XA, more risks information and Item December differ Risk discussion uncertainties forward-looking the complete

Dave? over turn to the I Dave call will Now Brager.

Dave Brager

for quarter morning of $X.XX quarter. share, good joining XXXX earnings third the for us profitability. everyone, and thank million quarter And which again XXXth you, this or net of consecutive reported $XX.X We Thank Christina. our you represented per of

We consecutive represented paying share dividend per of the a XXXX, XXXth to $X.XX our declared dividend third quarter quarter which our cash of also an shareholders. for

earnings XXXX, for net of the $XXX.X we million, million, first million month million earnings for nine September the of of with nine for same quarter. with XXXX. Earnings compared ended second for the quarter, were in $XX year-ago and $XX.X per of period $X.XX the the for $X.XX Through the the first $XXX.X earned months $XX.X and Our quarter XXXX $X.XX for with compared second $X.XX third compared period with year-ago for the of $X.XX XXXX, for share compared per months nine the XXXX. XX, quarter Diluted million quarter. share

macroeconomic Our lower $XX.X pre-tax a quarter, of prior pre-provision for for not quarter have the was $X.X the We did than XXXX. the provision of materially variables quarter second the from and consistent quality change the loan quarter the with at prior our million lower quarter third which million million quarter forecast not asset and income than did third third credit was in was $X.X of our portfolio quarter. end losses as generally the

later our this in will detail We forecast more allowance discuss and our in call. economic

the for quarter. totaled of the billion billion XX% same the and XX with XXXX, deposits the the were the loans. billion XXXX, $XX.X September quarter. $X.X quarter. third for billion, $X.X deposits billion June with XX% year compared quarter billion compared of and for Average September with At $X.XX a year-ago were XXXX at agreements non-interest-bearing At repurchase compared with period for of $XX.X XXXX, and Now for prior deposits like for ago. quarter for I'd XX, discuss deposits billion the Non-interest-bearing and billion the total customer compared quarter $X.XX prior quarter deposits year-ago for were prior billion, the $X.X and quarter, our XX, non-interest-bearing end our total at $X.X year-ago $X.X our our third and deposits XX%

the agreements total billion average $XXX and of or Our deposits for third X.X% by customer million quarter repurchase the $XX.X grew quarter. from second

over offset in loans; a from quarter. decline loans million were at loan compared loans. quarter. by million loans; C&I segments million This excluding declined million total quarter at Compared by from was increased commitments $XX increased $XXX by The real and across of $XXX and The million, onto XX, million overall a in a and $X.X are million, $X $XX June reduction in with June with all loans, from by loans. September XX% second million was loan increased the second C&I rate exception compared a approximately second end for in loans commercial line XXXX declined residential $XX increased utilization loans by in the $XX XXXX. PPP financing loans increase $XX utilization $XX million with quarter a when the the the Average increased year by PPP balances single-family line third prior XX, in a of loans increase loans million, September the of real loans Bank's a decrease the Program decrease excluded million $XXX year. decline the ago XX generally commercial million total SBA in loans estate to Protection end loan XX, in the million decrease loans. as municipal $X.X or but $XX were estate of through total unused XX quarter. moving XXXX Paycheck the Total the loans and higher, by from Now XXXX, by by grew million construction X.X% approximately impacted September loans $XXX to XX%

only third Net of second loans more submissions in $XXX.X request the quarter, PPP for average to approximately quarter. million losses the the for borrowers, ago credit year the with XXX been for comprised have loans, our million than loans in than million had have to SBA submitted XX% the of an $XXX.X million million to to was the representing $XXX,XXX those was we quarter loans second processed PPP million balance under Of $XXX,XXX and interest XXXX compared income quarter. due The of $X.X for and the the requests net Of with compared on of $XXX.X to X,XXX million before originated forgiveness income originated are billion, between quarter the interest XXX bank prior interest in $XXX,XXX. loans in of loans decline To-date review. forgiveness remaining loans income third provision made requesting the of loan applications interest $XXX a $XX greater primarily for the the quarter X,XXX XX have $X.X not During income. to the from in from in order the decrease The forgiveness, are loan million representing we $X.X decrease in $X.X was loan year interest that level. $X.X million from million forgiveness size income. $XXX,XXX the second due any net half decrease $XXX

and adjusted XXXX, and paid net for the from loans quarter quarter quarter. was of X.XX% third with discount third interest and quarter was Our acquired for of the for compared tax PPP year-ago XXXX, when equivalent on the from third for the net X.XX% X.X% the loans the equivalent X.XX% quarter, quarter impact margin tax second interest is accretion interest X.XX% X.XX% non-accrual excluded, of for the margin down the prior

Reserve. for margin for just interest interest was billion XX deposit points. Reserve without the third on third basis excess Loan due resulted $X.X million decline the have liquidity second in to for to Reserve's $X.X Total the million for income decline would average to income at The quarter. quarter XXXX, loans the the and accretion deposit rate quarter of points compared X.XX% the PPP approximately quarter margin that impact primarily $X.X discount earning in net and impacted net about Our and the basis the during of negatively the XX quarter, Federal in was Federal at loans. quarter. the yields XXXX in were with X.XX% in of interest quarter decreases fee the X.XX% due year-ago second $X.X been This on third acquired the was the compared billion the from third higher Federal on

the non-accrual points of PPP XX third of loan quarter loans, interest and third impact basis quarter, income of the the than for X.XX% paid, Excluding were to X accretion the XXXX. discount points yields XXXX basis lower quarter second purchase than lower related interest and

XX also XX were agreements our Our funds cost and for was of of quarter points. and the deposits total repurchase customer points cost basis third basis

basis Our of and X prior from points third from cost last quarter the the points by XX funds of quarter year. declined basis by

Non-interest third million the million XXXX, compared prior and income $XX.X quarter with year-ago for $XX.X Now the million for moving was onto quarter. non-interest for the quarter income. $XX.X of

from rate sale highest by September. $X.X significant account quarter grew from The we a was $XXX,XXX, quarter service of quarter the prior closed building were the by of the related non-interest-bearing this that million in in during from quarter, a by was gain balances. increase customers the the The banking highest interest third our of third modestly quarter due generated $XXX,XXX during year. a of second included higher the the fees in prior history to XXXX center swaps second consolidated bank-owned earnings year, a $X.X charges fees to in million $X.X We in quarter Deposit down our but million which and history. from generated credits checking

for to an special effort and and from loan during Now $XXX,XXX elevated due for third $XX.X also for quarter of originations these included expense $X.X million in lower one associates second third quarter also the paid year-ago were million quarter in the of OREO was for to increased for The in to XXXX you their $XX.X $XXX,XXX, compared quarter deferred benefit second included times. prior value -- quarter the quarter. expense net loans. qualifying property. Salary additional origination quarter quarter to loan write-down million that for included related of the for a the $X.X third the by a the commitment to $XX.X unprecedented over Non-interest PPP costs and the award expenses. expense a million XXXX million, thank Non-interest the

quarter quarter during second for of quarter, the expense prior bank as quarter X.XX% totaled by Assessment of from with X.XX% credits fully to second FDIC quarter of compared and quarter its third quarter XXXX. assessment approximately increased the the XXXX. utilized third the third and XXXX, third average the both compared X.XX% assets for expense of the XXXX, for Non-interest of the $XXX,XXX, the

XX.X% and for XXXX. Our efficiency third ratio compared XXXX, quarter was quarter XX.XX% for XX.XX% of the third quarter of the the for with prior

Now at prior million turning assets loans and metrics. to defined as to estate other our quarter for At quality owned quarter September non-accrual million, $XX.X the plus million were end, $XX non-performing $XX.X asset XXXX. XX, real compared

As with $X.X million, $XX.X million, from At of had XX a June of had OREO $X.X XXXX. $XX.X third were September of September million. XX, the million loans XXXX, to loans for XX, delinquent decrease quarter Classified we days prior XXXX XX quarter. XX, we compared $X.X at the million

primarily estate more for loans; received September of XX total real or commercial is deferments. have are classified. million XX-Q. of loans origination, payment on loans and approximately Deep first six rated; million days and X% X% granted XX being loans loans XXXX for properties with were detailed were of to second interest $X in underwritten Form At deferments these of deferments, on these million $XXX to deferment of were totaled of XX% that loans our are originated the loan $XX retail classified retail in the will only averaging It note loans have these values loans X these XX% of third XX important the for a were these prior borrowers. XXXX, loans XXXX. deferment loans information to properties with At October XX%. we also XX, Through We and available have loans quarter on remaining pass primarily temporary a principal amount

are million SBA trade to have or our for total $XX XX% also loans will real and of in Allen? XX, loans classified deferment. the in call approximately industries million only were these represented loans retail September million effective these hospitality the million of and over at for entertainment, allowance $XX but XXXX Commercial X% estate hotel, discuss total loans is credit or levels our classified, loans; None rate, now on less Allen than were to on liquidity. We and turn tax $X.X losses, to X% these recreation restaurant, properties, deferment. are Nicholson customers $X.X I of commercial capital loans approximately loans of of which loans. of

Allen Nicholson

Thanks, Dave and good morning everyone.

for rate XX% the year-to-date. effective Our the was tax quarter and for third

losses Our net of loan the credit as result charge-offs. allowance the third for in decreased by quarter, $XXX,XXX a

as Our economic it our we from allowance to that prior the of end for the the relates modeled remained key forecast macroeconomic mostly variables quarter. stable

loans, deferred ending $XX in for was loans. $X.X of allowance represents total X.XX% of reserve the of when This our loans. Our billion credit PPP net total million losses $XX or or classified loans our classified and XX% excluding approximately XXX% million

In acquisitions. losses, discounts million and credit we remaining the for value from addition allowance $XX to have fair

of quarters $XX.X in in due result, provision a million losses for economic the decline As the we pandemic, the two recorded credit during activity XXXX. first to

produced With reopening XX%. rate be continues forecast forecast having by economy economic than Our the Moody's. an and multiple unemployment blend slowly of California greater a to

a waiting the forecast includes to on downside economic Moody's. partial forecast Our scenarios

baseline elevated XXXX However, X.X% and then X.X% in X.X% to XXXX, than before is forecast forecast increase fourth an unemployment third GDP third The baseline XX% the quarter, more XXXX. The level by in weighting through and quarter our the the X% the represent quarter, declining continues X.X% forecast in stay by XXXX. to rate in the will in multi-weighted then X% be over scenario. XX% U.S. in grow in forecasted at assumes

our to capital turning position. Now

available repurchases primarily during billion, decreased offset to quarter million dividend, from first a million in and $XX stock of sale equity in the $XX comprehensive securities. by decrease first million nine For of cash for and of million of $XX.X impact income was million net other to the increase $XXX.X tax-effected shareholders' earnings the months market a by increase the in $X.XX $XX.X due value

very strong. continues be overall Our capital to position

of September capital our quarter. ratio are the our considered capitalized. Our and And common tangible well common at of XX.X% regulatory ratio X.X% capital ratio regulatory third end capital above At was risk-based equity be was our ratios equity X Tier to well XXXX, the requirements total XX, was positioned and sheet core with entirely billion with that liquid significant had deposit the XX.X%. balance availability the at of $X.XX sources is liquidity. balance off Federal We're well highly on deposits funded At the XX, sheet we almost a Reserve. base September

the much excess security totaled purchasing had zero expected funds started $XX.X closing invest sub-debt of mortgage-backed call million purchases, investment continue from of of comprised available These place approximately $XX.X a we of and some mortgage-backed In Dave the FHLB. for credit with of and now During in pledge million. the securities available at Reserve The second the million amount exceeding portfolio I'll At primarily will At mortgage-backed had September September remarks. current lines yield how $XXX low-yielding which advances government the quarter in XX, securities, we is totaled $X our third of billion, portfolio environment Bank to totaled we to At quarter, the combined some are sales, secured a and XXXX, such the available liquid the securities. $XX turn The loans. we to interest $X.XX by sale for unrealized from increase low most which end, securities pre-tax million limit end into $XXX billion. XX, $X.X This investment XXXX. billion, back XXXX. XX, the highly million excess in from for agency quarter of gain $XXX to has increase Federal rate securities X.X%. a million significant securities, securities. liquidity quarter held-to-maturity September

Dave Brager

Thanks, Allen.

and been during of strong consistent a financially over variety partner cycles business past stable economic a Our and sound has the years. and XX remains Bank

a our been As and participating our financially program previously and to to discussed, funding pandemic have $X.X in employees, contributing You we during Protection The customers Paycheck lending in over Street through impacted supporting most the providing of loan loans various our charitable through communities and donations. Award Main our including closing communities methods, associates. first billion Thank

safety associates, times, source these customers strength relationships, and and communities. the our prioritize as our being partner continue other we a of customers solid and and During as well health good of to difficult business to

As the in to associates, of pandemic has protect been portion to our to of a of our a the decision. award was long-standing annual the the we agreed and result the and of party. to Board cancel anticipated Thankfully, tradition health safety further order our made Bank, and cost it the holiday decision communities. our reallocate party celebration a and a support This difficult event of

and banks multiple needed within the donate territories most. that the those made identified have the food to to geographic our money We decision

activity per under shows While in can Tier, The COVID-XX the track as to largely some a with rates. business many there and which for XX of more on challenging as X,XXX the markets businesses The Governor's for had each system remain to of been established each positivity determines COVID-XX than framework case Governor. California's to reopen positive signs lockdowns, based and numbers residents, of open daily geographic and guidelines counties has new the which is resume. county our well reopening once. monitor by have our have It the extent been reopening California's into

assistance as to assist through We we historically this through uncertainty times. provide our will continue navigate have customers and appropriate challenging done

our while On discussed on favorably, focused speaking strong managing capital while earnings, that have stable excellent been the and through future we our customers quarter In consistent the the we business metrics third closing, losses. and see we've allowance credit for obviously as quality levels, as liquidity. credit continue our pandemic, asset We've assisting portfolio solid remain reflected which remains overall the positive to pleased to and generally in relevant perform our customers our appropriately credit uncertain. year, up side, maintaining and is finish

continuing remains and continue will grow expansion healthy opportunities and strategy evaluate Our concludes manner today's safe. That on presentation. the to potential disciplined we focused as a in stay arise. balanced Please and and other they to Bank acquisitions

happy any Allen to questions take might Now I will and be you have. that

Operator

you. Thank

will first We Feaster [Operator Go Raymond question-and-answer Our James. David now session. from ahead. from begin question is Instructions] the

David Feaster

everybody. Hey, good morning

Dave Brager

David. morning, Good

Allen Nicholson

Good morning, David.

David Feaster

I'd that's start I growth on deploy to to off front, this just wanted mean, opportunity -- liquidity. excess the obviously best the loan I

trended? seeing seeing how you And Just originations are down the you are however opportunities, front? pay pay-off attractive what -- where new and on

Dave Brager

you're is obviously question, first I versus opportunity best production the Yes, XX%. months David the nine XXXX our our and mean, it's it nine a actually right. loan good in months and first of is XXXX up of

closing we're actually number actually that's seeing and opportunities a them, of opportunity side. So a lot of significant the

we're the there of of you be larger the margins On rate they're, at competitors net competing for our that, interest see to enormous know, the below you continues is X%, back customers, look end floating some of best pressure when and that we're and generally get. best been production the so and can competing and they pretty get to try best rate it's and require that we a had for from positive. standpoint, very best the careful be the pricing, with But relationships we've

happy optimistic by the million grow the trend, quarter relatively looks PPP excluding I'm did quarter but So good. were with loans that loans, fourth $X.X albeit for look pipelines good. we fourth can continue that that looks and we our We

David Feaster

Okay.

Dave Brager

decline David, utilization. either is And really in headwind the

rebound start could so that to see that And help. we'd

David Feaster

how along then, in kind those yields same loan new of, our that's the quarter? And lines helpful. Okay, trending

Dave Brager

it the X% somewhere that, we it. the average. on of little on north that in any to line has to of type loan general if it's about X.XX% any Obviously, kind in loan, I'd range but -- I of, excited on kind X.X% of has term of in of a X.X%, depends we're X.X% kind the Yes, but so bit can it's we, that at that -- get front something a drawn it, say

David Feaster

Okay, that's helpful.

I deferral Now clients? guys the You curious, no staggering. what tremendous it's but longer from still have front, on paying early, are I'm P&I? decrease done mean, SBA know and agencies a your the job that you hearing is just the I

Dave Brager

my previously, I are is sales the team did XX larger and how about basically Yes, I credit my concerns a from that's far one out. play that we loans on to SBA and going our we What quality a group created mean, associates I of took as that Xa as mentioned that's the one really mean evaluate as to our created team, of books. is we

doing on a September trying that been due just they've relationships diligence the was government. that. so enhanced those month to tell feel them made last by the for And too of and is behalf get on It to payment some a early was

but some be been So still I there's problems October so has going more believe far there. good, to

David Feaster

the about worked to extremely think offset opportunities operated other going Okay. this how at potentially successful pressures. least Or reduce the from you already the efficient. And forward? any on one do inflationary then last to environment? incredibly guys mean, I lien headwinds, make just you branches to light in to in potentially side, converse I And you on of continue you investments expenses have that guys institution And me, are need revenue there be somewhat. know But already

Dave Brager

Yes, that's in run bank, I pretty I pretty, the mean, through our consistently we invest stable expense rate. think

bit mean to as constantly going to had a it's as material possible. operate there's to have of the expenses. that a I Thank not evaluating as we I overall. of some at possible. as the do. quarter process while our You in we the as operate call efficiently network looking something what it's We're Award, we part what something by impacted one and impact is constantly our that's The writedown, and network, mean, we're at that, impacted little looking This office, our our branch the center a opportunities we consolidation the a I loan But things want you saw couple originations, mean, of was things that increase efficiently just

Allen, bit that. I -- run giving So lower, it quarter, anything I you if to know but think se, I this guidance don't it without that that think per little a was add a have elevated I think will little

Allen Nicholson

David, saw we're which you rate assessment No. the to course, back now that. FDIC expense up, went for sort [indiscernible] a normal And run of

David Feaster

everybody. Okay. Alright, that's helpful. Thanks

Dave Brager

Thanks, David.

Operator

question Jackie Go from is ahead. next Our Bohlen KBW. from

Jackie Bohlen

morning. good Hi,

Dave Brager

Good morning, Jackie.

Jackie Bohlen

the topic to you toward the rather sheet talked saw you that purchase of the quarter. and end challenging liquidity. securities of touch on balance about size I happening Wanted have that the

So in looked just the deposit have October about extent how like flows what months? that with thinking, over to you're I next to starting off, the thinking first comment able sheet on you're balance size several guess, and

Dave Brager

has But been jump Yes, monetary a I'll Allen policy, have start then for the liquid add. that our inflated and obviously in, maybe much anything to if and can a he reasons, balance has Fed sheet cash. size of maintained position, customers variety maintaining more

used think the of was that, PPP this would everybody the balances as beginning thought start sheets and to money your I in balance decline. the that

know, seen even have here, think it's think start remained you that to hasn't some go I the a been we XX relatively the through a We anticipate. I here days the haven't month longer point, away, money do balances at will bit that, stable, move for really there that than either first of but big way. little

earning think assets. we are in securities of But as of assets we loans maturing. to securities of that's and goal replenishing our I We'll is So in our investing our to sort to a assets. our the that our grow of the is total And to kind a probably need be higher percentage overall, really of just that on. grow total percentage XX% goal have focus earning earning higher loans what

credit at have, know, in tools respects, our good to are challenging because going it's so some we you but it, So manage can. it's the that look strong as, the it's to investment all side, problem the our quality and on best very front. toolbox bodes well customers But in a challenging of the we're from to

Allen Nicholson

impact that be liquidity approach, couple versus, what we'll we securities. Jackie, you ton don't Hey, focus the years, earnings want might balanced know, obviously is move extremely into this short-term looks preferably like balance to in a We really of of on a not we have low-yielding just in so to our our long-term. on really really like

Jackie Bohlen

this shorter the an interest duration at is maybe And effort Okay. you worth not do any pickup or yield have in the securities point?

Dave Brager

There is anywhere. little very yield

Jackie Bohlen

okay. understood, Understood,

on until I excess the I around is, we that that is if environment, just averaging mentioned, So this see weighing higher my yields challenging loan to guess correctly really sheet fair? liquidity with heard X.XX%. rates, net balance is I the interest then mean, X.XX% and a interpretation of margin you

Dave Brager

challenging, have I some it our goal again, changing Yes, really think fair. but just is what is to the and we that's offset that's challenging mean, very that I ability it mix environment a by is,

Jackie Bohlen

Okay.

Okay, you. thank

Operator

Matthew Instructions] from ahead. next Clark Piper question Go is [Operator from Our Sandler.

Matthew Clark

guys. Hey, good morning

Dave Brager

morning, Good Matthew.

Matthew Clark

related income get next should income. of the we're way to Just interest maybe how starting assume that coming like mentioned think related the like a XX you much a more had base pace were forgiveness similar of sound Is last net some It on PPP life. it here? income, you think quarters, think to-date, I than I -- but month going into rate. quarter three about assuming in the you've do you doesn't it we PPP we should looks the kind acceleration guess, you're over accruing

Dave Brager

will still the the to acceleration look but the life, about will next we we we'll assuming some would those through, early we that provided we're expect get start Matthew, if of year. year in the by start there, forgiveness you and probably expect average actually, some at some coming we'll accelerate we end data XX-month of have

Matthew Clark

of single-digit if loan the a or don't be liner assume dairy not exclude it you in think line about expectations? I then know And kind opportunity exclude low able you But a pipeline rate. on if when more and with growth, should for of, had and the PPP, I Okay. you that's or the that's whether your to grow,

Dave Brager

toward Yes. excluding things, we growing, you the are I mean, dairy seasonal. those working know,

& to some we're livestock. dairy the quarter, So growth in going the see fourth in

and mentioned from mentioned, year. Allen and utilization As rate year the in my is the our previous comments, of I down significantly end

lot impact. that's determined. continue I I people didn't we do I the this all to rate that's borrow still is that loans cash is, in something specifically C&I an that that, and some to large credit if to sit us good -- on quality been go of side our some say getting but credit some decent what for be will one at organically is So created from out opportunities thing are to I quality, larger grow there. wildcard, can confident have relationship loan feel the The if we've been decent relationships a those. And say the there's fair after disruption banks on share of and that the that's

are seeing where those open loan for we've by do continuing think business, quarter. we're we're I through the about foresee those fourth been mentioned, C&I been not still outstandings necessarily of production as that XX% we've our business, we've year-over-year. relationships, grown some on But I for booking -- the that but open Now loans. commitments, I

all the as from real doing So we'll know, plays But and our wildcard we're estate out. a like loans. new it utilization see how line far then what existing loans you loans permanent loans the and is more as,

Matthew Clark

from to would get assume some months points three take to to XX I the that that the X.XX%core is at while then maybe it next opportunity. XX Fed, over remix the It a two, And of fair? back. to like get six, spoken able years basis basis that point you'd nine, on the all billion $X.X it margin will drag the Okay. XX you've But sounds be help NIM,

Dave Brager

low lot it as rates policy, of it's now. right flat fair. obviously depends that on are and far mean the rates long-term mean what and Yes, I is everything doing, Fed's I as I a think

that banks rebounds hoping do And drive curve, boat. better the to help that on the so can side and we most continue the I'm deeper sheet the yield it asset is in balance and But this protect of the same and that we're for NIM.

Matthew Clark

last me. just then and Okay one from

On when that reserves the start or? the in and match we just assuming the have should we might release? reserve this you'll you've assume to see And assumptions your don't we reserve material a peaked change model used, and get at that charge-offs stage, some underlying do

Dave Brager

in downturn reflection was quarters. a first reserve think buildup as economy. about the of prior talked the the on I in the year we've half The really the of

credit our very so been improving. maybe have obviously And even metrics, stable,

the or think on hold can economic into we year So than strong. we once increases be that. anything terms we I looking dependent really to But right next be actual very any in of are to those going to things losses see now outlook as that of what we'll might you impact metrics releases more our look again really of at presented continues before be probably from future even well up, the tell

Matthew Clark

you. thank Great, Yes.

Dave Brager

welcome. You're

Operator

no questions. Instructions] [Operator this time At there are more

over I turn to would call Brager. like Mr. So the back to

Dave Brager

to joining this Allen for speaking you want your to interest quarter and I everybody I year-end healthy. listening let our appreciate great know thank Please thank and a look questions. Have and call. We with any stay us January XXXX Great, you earnings Thank if and have quarter. day. you. fourth forward for you in safe for and

Operator

concluded. for The today's Thank attending now conference presentation. is you

now disconnect. may You

CVB Financial (CVBF) 22 Oct 202020 Q3 Earnings call transcript