CVBF - Earnings call 3 2023 | CVB Financial Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Third Quarter 2023 CVB Financial Corporation and its subsidiary Citizens Business Bank Earnings Conference Call. My name is Cherie, and I am your operator for today [Operator Instructions] Please note, this call is being recorded.

I would now like to turn the presentation over to your host for today's call, Christina Carrabino.

You may proceed.

David Brager

It looks like Christina may have some technical difficulties. us hear you can okay? Cherie,

Christina Carrabino

line I'm on the now.

David Brager

Go Christina. ahead, Okay.

Christina Carrabino

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

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

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

The Securities the harbor speakers protection of provisions contained this call on claim Act the in Litigation XXXX. safe the of Private Reform

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

complete the harbor version safe of company's release For with call. connection earnings a in company's more this the see please disclosure, issued

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

David Brager

Christina, everyone. and morning, good you, Thank

of per we the quarter For of shareholders. quarter quarter consecutive XXXth cash of to We representing a quarter dividend $XX.X a share, representing XXXX, $X.XX our for third reported our consecutive of net profitability. declared our XXXth previously million share the dividend or $X.XX earnings per XXXX, third of paying

$XX.X million year-ago per share. second earnings net the share $X.XX the million of per Our for $XX.X $X.XX quarter for $XX.X with million of per compares or and XXXX share quarter or and $X.XX or

and quarter. of long environment, operating in the Although producing third the we headwinds current capital in solid earnings quarterly on our history returns continued exist

XX.XX% return tangible of produced common average average third the equity on assets We quarter. and return a of X.X% for on a

second quarter XXXX. quarter million third by compared in XXXX for with total This X.X%. to the the second compared earnings reflects was growing of Our X.X% of of growth pretax operating our income of leverage quarter for over million, revenue with this quarter was $XX generated expense the pre-provision the positive as income XXXX growth pretax pre-provision $XX.X X.X% growth we

be quarter for leaders year among full a to XXXX. respect ratio third the XX% with the to continue efficiency and We with expense industry control

Our points net grew result our XXXX the third to quarter by from X a quarters. basis our yield, The margin net the increase interest of quarter, second margin our declining interest net cost of for from the basis expansion X.XX% in trend point prior was asset of of reversing interest X point funds. XX earning increase of net X a offset in margin basis the a which the

quarter the the at Total outstanding second end to $XX million quarter. of declined loans $X.XX of by approximately from third the billion XXXX

XX and for million third of net $XX,XXX based of million September allowance increased credit recoveries XXXX. $XX in approximately on $X credit to for provision the quarter for Our losses on losses

increased Average approximately quarter total second third the million to compared for the deposits XXXX. $XXX quarter of by

$XX.X billion, deposits. average XX, deposits. were have a million from continue we our noninterest-bearing than [ continue average June to to XX, of greater X Our total total would be decrease At highlight XXXX. XX% $XXX brokered ] September XXXX, I our that deposits deposits

continued end XXXX. to quarter of deposits $XXX the million $XXX increased $XXX sheet velocity in to The and interest-bearing million, transferred of decline quarter by by million off second the declined deposits while quarter compared Noninterest-bearing year. with the deposits from second the in this in moving first quarter million of of balance $XXX the third approximately in $XXX quarter million to the CitizensTrust

customer million lower which experienced than XXXX. $XXX at a million and in end million the the quarter, from was $XXX of Customer decline We've $XXX The the the June deposits repos new noted, these were just I continues $XXX balance million such customers. end the bank as treasury were at moved deposit third assets, XX, in to that includes, to liquid as repos CitizensTrust, funds notes. higher-yielding where was which acquire invested XXXX, of

during approximately X totaled $XXX months opened new XXXX average deposits. first of the accounts million of New

lowest We business have historically of in target cost we the based maintained on deposits industry and one of the customers our the model.

less quarter a of of XXXX and tightening cost for increasing compares the of cost basis quarter Reserve X% our of increased first by basis beta the points this From rates points quarter X since deposits Our of basis of XXXX, than the of through quarter quarter Federal by basis XX basis XXX has points points. for was deposit representing on the XXXX, the XXXX second which third XX began for XX points, of the third deposits average third XXXX. by cycle to

of by discuss led XX, from June from loans. and million XX, decline loans. XXXX. decline let's quarter-over-quarter September at a in loans estate decrease Now XXXX, $X.X $XXX were billion, a end $XX commercial Total XXXX, million was or The decrease million X.X% real $XX the a

We quarter also at the declined in XX% loans the experienced to XX% line as utilization the at end of September end decrease an $XX of C&I XXXX. from million the second

year. livestock last XX, $XXX and year-end Partially Utilization and loans was XX% XX% livestock by at offsetting point PPP XXXX, loan XX, excluding declined after was and commercial loans September loans which same increase to real on million at the From dairy decrease XXXX, from a and dairy on $XX in forgiveness. increase in and loans the million loans. in the estate livestock December compares seasonal dairy

decreased real experience fourth XXXX, the of line of to to C&I Dairy approximately decreased XXXX, same XXXX a decreased September in each XX, loans year. quarter and and seasonal period $XX by by estate in Livestock peak the million from XX, XX%. loans from Commercial the by loans utilization $XX we million $XX December XX% utilization line over from million end as decreased as

by million. by loans construction $XX consumer declined are and addition, loans In $XX million lower

in demand. slowdown loan a by impacted be to continues growth Loan

quarter. new weakened Our production the in third loan

of million the in $XXX of new approximately New loan quarter XXXX XXXX. the second commitments of and of in quarter third $XXX originated we In were third comparison, the approximately $XXX XXXX. loans quarter million million in

of the production at generated third yields of loan average the approximately New XXXX X%. of at was quarter end

declined third the for recorded second loans forecast. economic of Although of losses a million we credit quarter the quarter end of in quarter, $X provision a the our XXXX at end from deterioration for to further reflect

prior owned, the loans nonaccrual X continues quality due The loan to million and was the increase million of as end placed be that on assets. Asset prior basis $XX primarily a quarter real strong, for $XX.X assets, nonaccrual or points the were the to compared the for defined was quarter. of quarter The end, plus At million C&I with in remain nonperforming trends estate nonperforming loans other quarter and $X.X quarter. total the from million at third $XX year-ago stable.

compared During net of the of second charge-offs recoveries $XX,XXX, net third $XX,XXX and quarter, total in we experienced charge-offs net of of resulting XXXX. the $XX,XXX recoveries credit were for charge-offs $XXX,XXX. with $XX,XXX Year-to-date, of quarter

partially million quarter loans. of in loans and at quarter-over-quarter loans million $XX $XX million to in the $XX.X dairy increase million The offset the loans, million Classified classified, decrease classified was real by $XX.X percentage $XX.X agribusiness estate increase second Classified was in quarter for year-ago a loans as a due and $XX compared prior classified commercial million primarily livestock a for end. X.XX% quarter. loans with total were for the quarter and

the is the during classified loans of which commercial nonowner-occupied death The due approximately real increase were third estate is the This is category sale. collateralized one in $XX the currently to to of real property borrower a estate relationship no loan We primarily loans well for loss due property for was and once anticipate sold. the million in commercial listed downgraded quarter.

for losses, the discuss investments, borrowings the call Allen allowance now will credit Allen? and to I turn to over capital.

E. Nicholson

morning, everyone. Good Dave. Thanks,

As to of XX, million was allowance XX, total XXXX, of credit at for million $XX which $XX.X total XXXX, XXXX. of or X.XX% of our September loans and total at or XX, December X% losses compares loans X.XX% loans, $XX June million or ending

September quarter ended XX, ended for $X million XXXX, $XXX,XXX quarter quarter XX, and a June $X to credit XXXX, for the we for the XXXX. recorded compared the losses For of of third provision million

the third end the of estate which and GDP driven compared forecast, real losses values to credit The and by economic our provision commercial in in our in XXXX. lower when growth, unemployment projected for XX the higher lower change resulted June quarter forecast was both at

Our economic forecasts forecast of multiple blend to be continues Moody's. a produced by

XXXX. a an of decline various largest in degrees scenario half decrease forecast We of The in have persist among reflect values recession unemployment XXXX, weighting continue forecasts resulting that individual in of commercial downside estate weighted all risk real first on multiple with a significant and the XXXX economic early to individually economic but rising which modest rate GDP through through reflects XXXX. more forecast, in and XXXX the baseline Moody's

at by The XXXX. X.X% grows of recession modest GDP beginning rate just GDP average by will a at all assumes be peak year in GDP of of followed X.X% increase and the with forecasted X.X% resulting XXXX in growth in in of full weighted and X.X% unemployment X.X% is XXXX. then forecast to for XXXX, unemployment The in XXXX XXXX. X.X% XXXX,

from same $XXX weighted funding term September million XXXX, of by were XXXX average of from a Total as by Bank. X.XX%, million period. of that from program Federal short-term as bank $XXX XX, in drawn cash Borrowings down of million XX, the declined remaining the June borrowings as as Home XXXX, million consisted $XXX $XXX mature that balances Loan time over advances well rate with

advances of were As of cost FHLB September XX, these the X.XX%.

fourth of All the year. quarter will mature this FHLB within of the borrowings

We continue portfolio. to shrink our investment

decline our by investment $X.X securities in for XX. quarter approximately The portfolio as to due approximately AFS or securities. investments cash investment $XX by XX, September $XXX generated billion in total treasuries. the sale, decrease XXXX, overall short-term of flows June was during $XXX of million investment Our our million in million the million portfolio to $XXX reinvested of 'XX, primarily Of declined third from we available

of to XX, loss approximately Investment third approximately the of XXXX. flows $X.XX net $X.XX were totaled totaled $XX at not million a by the The declined unrealized HTM portfolio maturity, June HTM quarter. held or reinvested as securities inclusive at $XXX million. of end during cash securities, pretax AFS the XX September billion billion quarter, from securities

for on this SOFR approximately positive have third the weighted quarter benefited compared fixed The of from interest X.XX% on investment yield income average fair $X.X from fixed pay X.X%. executed rate prior increase of value quarter. of for late tax in of X.XX% quarter in we daily the that carry XXXX entire third to million hedges year. the equivalent swaps a receive The a these We for yield portfolio June the the was on

of ratio position. the our company's quarter's capital September than end XXXX, was tangible X.XX%, at consistent equity being quarter billion Shareholders' quarter. XX, the from common to higher September while X% XXXX. the to $X.XX turning second $XX with of XX, at third equity by Now The at the decreased ratio the X.XX%, million prior

OCI due on of Our by declined $XX portfolio. to that higher interest increased impact rates our the AFS unrealized loss million the

associated the years. X second into derivatives the pay-fixed the pay-fixed of XXXX, of of partially value a fair At to adjustment hedges we fair income X mitigating value we mitigate These as our the million, interest OCI which XX, swaps the by with in comprehensive ranging $XX.X on to quarter increased September other end risks entered maturities fair rising recorded in rate the At of decline swap AFS billion XXXX, portfolio. capital. impact notional swaps the have from of $X rates value our to

X the $XX for by offset earnings X XX.X%. XXXX this increased million. million of payout in year-to-date of by $X year. months ratio the The million months $XXX Retained dividends of increased resulting income dividend year-to-date first for was Equity as was

quarters we March second XXXX XXXX. no XXbX-X the shares XXXX. were repurchase The on third plan purchased initiated of X, stock There during expired in and

first of quarter repurchase we in at year, an shares stock this stock common average of XXX,XXX $XX.XX, the totaling repurchases. During approximately did million price of $XX.X

very to continues be position capital strong. overall Our

common September was At our regulatory above XX.X%. ratio considered and XX.X%, be Our well XXXX, capital well our Tier requirements majority and capitalized risk-based X capital equity the capital of our ratios above XX, are total peers. ratio regulatory was to

quarter earnings. I'll turn third the the call to now Dave further back for discussion of

David Brager

for the Thank for second $XXX.X compared before income for you, million losses $XXX.X quarter million was and Net million for quarter. third provision credit Allen. the with year-ago interest the quarter $XXX.X

with compared Our second interest for net equivalent margin X.XX% XXXX third third for X.XX% X.XX% was quarter XXXX. the tax of the of quarter the for quarter and

point basis the based impact million Interest of points on million quarter-over-quarter of pay-fixed positive by income $X quarter on over derivative in yield X swap XX third basis earning increased quarter. prior grew and income as nearly in the increase the carry combination a the $X.X yields our asset loan

earning million due both average of Reserve. average $XX by loans Third million. an securities in from million investment and the an deposit of offset quarter by quarter increase in average those assets outstanding average in The increase decline the second to on decreased $XX at funds assets of $XXX Federal $XXX million was

over Interest quarter points X cost of the funds third quarter of in million basis as quarter a expense the and the expense the average $X.X increase increased increase deposits. million XX due in prior a basis increased cost by $XXX deposits second to by million by XXXX. in on deposits the increased interest-bearing interest-bearing $X.X of from combination point of Interest our

prior compared due XX basis funds, offsetting Interest the an by $XX million. million XX earning increase $X.X our and third in year-over-year decline interest assets. resulted million a XX decrease the The basis basis by on The in of declined was earning expense of XX in margin to interest borrowings net however income net $XXX from yields. in borrowings point cost declined The from in X.XX% point a deposits decline as net asset basis the $XXX quarter. decline in point quarter interest-bearing quarter cost year-ago average points was million in increase interest to average a margin

for XXXX. as from X.XX% XXXX were quarter in basis as in of an earning in compared quarter year of to from and quarter average approximately to quarter to prior in third investment X.XX% the X.XX% third asset in of third well was yields grew yield The the the in quarter third for the higher Investment XX of the assets XXXX, third XXXX yields which XX% increased mix points of increase XX% quarter. improved XXXX in of yields of loan yields result the earning of third loans security asset Loan quarter of XXXX. year-ago X.XX% a the compared the with quarter the

noninterest and quarter. to was for income. third year-ago $XX.X on quarter for prior compared income XXXX the $XX.X Moving with of million million the Noninterest the for $XX.X million quarter

including increased of deposit quarter fees, banking $XXX,XXX and customer-related services, the international compared compared third quarter Our XXXX. $XXX,XXX services, second the bankcard by declined and by to when merchant to

grew of the fees $XX,XXX $XXX,XXX. year-over-year, decreased XXXX, compared Although and our management trust wealth by to second quarter fees these by

BOLI income BOLI asset compared $XXX,XXX of quarter by by included BOLI benefits $XXX,XXX XXXX declined in income XXXX. second quarter third death as exceeded the to $XXX,XXX Third that quarter the policies. value of of the decreased certain

quarter $X.X offset received, partially more policies during of XXXX. account in which favorable third million The was death on of quarter market third separate benefits XXXX included impacts by the

CRA distribution the Compared included to our investments. million investment as from of of quarter quarter $X.X the CRA second of income XXXX, increased income equity an fund to third one related

quarter million of for the Noninterest the second quarter. $XX third with for expenses. and $XX Now XXXX compared for year-ago expense million quarter the million was $XX

provision recapture of of the the to compared was unfunded third $XXX,XXX loan provision for XXXX. $XXX,XXX provision second The in quarter no in of quarter XXXX for There for of XXXX. third included quarter commitments

Salaries quarter-over-quarter, quarter. was or benefit and increases effective in than at annual quarter-over-quarter quarter. million X.X% second of salary beginning increased increase employee that $XXX,XXX expense the the including costs $X.X higher salary the approximately The were

in over Salary or salaries declined, from contra in third The $X.X by the employee by year therefore quarter prior expense in the staff of expense than and lower of resulting were costs additional expense were expense As over or also year $XXX,XXX. increase originations loan expense $XXX,XXX loan increased Regulatory increase $X an year-over-year X.X% than almost prior origination expense Deferred second XXXX. X.X% of the deferred million quarter, an costs lower loan assessment origination grew benefits. the in $XXX,XXX. by approximately $XXX,XXX included quarter, staff million noninterest the more increasing quarter.

of X.XX% for XXXX. for with assets of quarter third X.XX% of for the quarter compares and XXXX. the the third Noninterest X.XX% expense average quarter second totaled This

XX.XX% third Our quarter efficiency the of This quarter with for ratio XXXX. for third prior and was XX.XX% XX.XX% the compares for the XXXX. of quarter

concludes This presentation. today's

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

Operator

question with line Clark of [Operator Instructions] first Matthew Piper And will our Sandler. from the come

Matthew Clark

I to plan due think, year. your want I million, refinance you touch of $XXX off comes just portion some next pay to are first going or for Are the What's on that? it to going you it?

E. Nicholson

continue the Well, future. But over to just that think I as I mean, in love we'd with deposits as time pay of grow fairly and paydowns it to a deposits well that's time. off period long security strategically, --

see what future but the we'll brings. So --

Matthew Clark

lines increased those the of along and of there? a we all were was side, given just the period months I the together in had flat. the think a but since like on And you just -- bit how average were I could markets things then disruption it pipeline quite touch down, end on mean, ago, I And turmoil. the Okay. sounded just relatively the noninterest-bearing deposit deposits when think couple

color any pipeline. the just there movement So in around the

David Brager

Yes. on it mean, quite when I operating relationships. to companies, time you're The move strong. still working pipeline does those is some take

remains like a The commercial get loan. set to in bit have pipeline is strong, sales stronger there's a loan treasury real cycle still pure from the dollars, a a management our than longer. close-ask pipeline but perspective. everything [ estate It's You not ] up little deposit growing

And to on we're focus continuing growth. deposit so

timing by was of And the you primarily just result always on days million, $XXX more business due a us of just that that month already little had that deposits, know, some have the color most you challenging to down I people bit got our then taxes but the the prior that, taxes payment the As of And fact seasonality. a to XX to give just deposits taxes sent quarter last some around people the fourth later for paid pay is don't until went and September, in could to of moved And now think the because of that. their the year. sort their and ultimately, the taxes. of November, be out

So prior so average we to were being by high last on evidenced the during the side, deposit XX the the stable quarter. deposits up days, as very

us there about relatively quarter the have we a relatively I feel in do positive little go-forward. the seasonality will bit some But I feel fourth positive So deposit pipeline. challenge about the historical as well. that

So we of work spot, in a all, do. lot to I but have we're in really a think good all

to have We execute.

Matthew Clark

Got it.

Okay. the an up and another XX.X%, appetite I to And we're like given then mean, on CETX is basis securities guess, it us portfolio, your update your on easily a that your ability those losses? can give you to to restructure seems higher-for-longer environment. points I XX absorb in portfolio,

E. Nicholson

evaluate anything point, of at always don't opportunities. significance. I We foresee But this

Matthew Clark

small Okay. around it's And the lastly, the still side, But amount. then commercial just any I uptick. -- like on relatively relatively book non-owner and know estate. classified a it owner-occupied looked color real

any to there, deal your credits. Just those kind color plans with of

David Brager

Yes.

was from any It's than street well sales apparently should property majority I our by the relationship, amount We're a the proposed close or fourth Xx that higher We don't on UCLA it's anticipate in across collateralized. of the the it charge-off, property. the quarter. one significantly really Xx. is price loan that loan. actually, anticipate for mixed-use the It's increase paying, have current. sale. They So offer a is an listed

problem So I don't there. any anticipate

problem. been fourth credit his obviously, listed sell process any of and has have But in and the But barring trends stable well. the it's quarter, The it's should -- downgraded mean, the -- loan. quarter, very third as are in to we the the the heirs I in been it borrower big died loan close.

Operator

KBW. [Operator of with Instructions] line will the come Kelly Motta Question from

Kelly Motta

for you growth. perspective getting us outlook a be bit Could about was us could of loan hoping any pipeline you areas little more a on I of you is? talk the cautious. Remind any may bit seasonality, little give your how

up, how where new loan As spreads pricing and are and holding any on coming originations well as are provide color on?

David Brager

Yes.

challenged. fourth X%. the or originations would were end third the up the -- I me, over The loan of at pipelines, excuse end the new quarter, So remained say, of

However, are for quarter fourth some The working is we're on. quarter things there a good that us. always

close amount, -- just you we anticipate seasonal If at averages because looking years. look that gross being the have we dairy the back over over to pretty advances,

still smaller that's But turn Pricing I decisions. a lot quality is I want -- the where sort but they of think make ago. see there's year to take to definitely opportunities. impacting people those they on were the of loans, still things are can than pipelines sidelines a advantage of people's ugly waiting if We

I'm of loans, a We point quarter-over-quarter, single-digit were So obviously. that a quarter, it hit half but little point. for growth. ago. low new we down still didn't to than were We still aiming But it's less $XX we're this booking million doing year what

your got I questions. of Was all there I anything... think

Kelly Motta

your I Sorry, that was approaching how for securities, like a the restructuring appreciate and on color five-parter. that. appetite you're

put rate nicely think Just Can X.X%. -- the the helped you said wondering, you you remind us $X quarter. really the billion in on swaps on I that margin this was

and remind more what more exposure. could about be swap adding or your out potentially on is your appetite us that, securities tenure Just duration to the of what

E. Nicholson

Kelly, to say we The evaluate. And the I sheet, it's space. We're average X.X%. we but the happy cost evaluate X. on think tenors, there that to I will don't positioned need and immediately we towards hedging in Yes. know other that those with do that correct. more and swaps continue that to We'll continue weighted more weighted is balance X-year X- how fixed opportunities. would average are -- you're

Kelly Motta

a you where from the have of rate quarter? at was end me. last deposit Maybe maybe two-parter spot Do the your

to you expansion the I XQ, had margin really nice. as you quarter this think look was And

margin for this about think do of last deposit year. Just you're and how the you you -- can inflection the are how continue? where And costs quarter thinking

E. Nicholson

last you'll on deposits you we cost as interest-bearing of that see XX, go of night, Page September, presentation if X.XX%. that, Kelly, investor and repos to published the was

I think, -- to, Page XX. it's if And go then page you sorry,

the was that look of XX line a right at if both points. there, I total basis continuing you for think in You'll those the last trend think increase of at months. in cost the And couple deposits but of go in pace is up, to the the I see upper slower

Operator

[Operator Instructions] the with Davidson. of From Tenner D.A. line Gary

Gary Tenner

just is quarter. rates This loan in Fed I loan about basis kind prospectively X from in not yields wanted ask the third yields, increase the here. to changing of assuming point

Just repricing with again, similar kind over pretty book that of would Assuming, a XXXX, here. is you the of from course within ongoing and of rate the quarterly the environment stable trajectory sort is expect?

E. Nicholson

I understood on I'm the certainly. general, if continuation loans not sure Fed's if quite at full of higher question, Gary. the see were But repricing we'll that a adjustable rates in hold,

Fed will And moving, be in this But so that the be saw it earlier year year the we a repricing. variable were what loans all and catalyst. last when won't it was

it you of that mature. will might reprice get going disclosures in the in or some our it to can is sense where, CRE how think give will of a quickly the office investor That of So appendix, how you I turn. sense a -- from deck show our we of much

David Brager

Yes. the is that, off to a rate. And on commercial the would repricing portfolio estate add based of Gary, real most the of X-year only treasury thing I

look to XXX basis a a today, X-year it X if XXX be you compared ago point So increase. is treasury not increase. XXX years It the basis might or point at

an From perspective, not as credit a asset meaningful. it's perspective, growth good. from yield that's so And

of real but pretty rest think individually, as out just see is probably office the call and We rest the will maturities that the far we similar portfolio estate the do the the the portfolio as the far I portfolio to as similar of maturities. is as repricing the But and office commercial repricings. very

because pretty significantly treasury higher so. up and and see loans the X%, in month But originating are yes, we'll to continue gone or XX-year X- we the and above later have that, last

the today. And is and/or we're so that the incremental how loans borrowing cost pricing

Gary Tenner

be. was Well, you question. I to where the to Apparently, well, answer it but appreciate not me phrased got the needed I

small to announced. market really And transaction, it environment. then of after West of obviously, relative deal the West obviously, on footprint, CVCY-Community Community quick your the the mean, recently by size. first just But well the pretty days was in was your that M&A couple pretty I kind received initially just

of in of well expectation seen potentially of giving you've that the sellers' Just it the at stance willingness take of the what wondering if or the least is would better kind market. prospective in kind to market them change kind be any by received

David Brager

Yes. picked And marks up. have consummate Well, There math deal. different things and with some are I and think issues below deal definitely that I a book believe first foremost, to value. conversations closed

that sellers book value, bank, sell that are depending willing obviously. us, to of to be interest So the on below could

do the want other do deal ratios. impact I going of would be impact don't to that sheet have that for We mark losses. picked up. taking a rather our balance to do maybe think the there's have I where But sort potentially we might to our conversations capital of capital, sheet think the balance to That's restructure to and position that we'd related opportunities been of capital the have the us. excess and sort be prepared a

think that actively just our think keep be And looking interested at opportunity for I in right I we here. short we'll the are meets us for in the opportunities there's So midterm going and to to looking criteria. opportunities,

Operator

Tim with Janney [Operator Coffey From line the Montgomery Instructions] Scott. of

Timothy Coffey

$XXX back that in might kind Dave, any to first that million-ish Have of that sheet, of some be you X/X in the have to the went quarter, back? the I come you think on visibility do -- deposits able left when CitizensTrust. of balance

David Brager

more moving There might they a little fee that on stick while. rate a more left to I different securities million this the went look, than flat we're $XXX amount environment, in treasury for total. at those that And CitizensTrust is those working bit a if CitizensTrust. think that think buying treasuries. that high was relationships the actually purchased higher-for-longer So CitizensTrust just managed in was I and sort of relationships structure little to

some will than would at that it believe trust relationships, manage the I rather I think do But time that I keep liquidity else that let the it I ultimately of the something. in our anticipate we But those come potentially need coming do barring somewhere back. cash bankers to family any get our CitizensTrust back. -- don't it go do or really individual somebody's for it and any soon, back of never group,

we're think I some still roll ways little away So to a on. of from that back starting see

Timothy Coffey

to were deposits your to where then the pre-COVID. right And top much Okay. mix? of pretty on there total you noninterest-bearing downward more Do be deposit you is expect percentage pressure on

David Brager

there. into Yes. The they market if I the account of rate -- and would would we we pure psychology of operating was than keep management the always type we're everybody treasury mean, math then money companies, high, to years, just larger keep for ECR, in There's get need go after. just way operating companies so is not free of I is we do that a need a deep maintaining that's higher with lot But cost that. a some the and products. works, talked there's doing -- they especially larger about mean, I to client paying as that years balances. sell larger equation, and it years pretty still mean, risk. we've which relationships a

my especially when sort XX client. that So I of XX mean, It's we work here. was was type to the the the hard company, thing, over in while at going last of even here our been same XX been years years doing Wiley of built after and Linn predecessor

haul. built we've this the over deposit base long So

off deposits there have in so be balance impacted gone changes the of far, the that of have could pretty there come there's that into that, but lot the sheet some always hanging well. But in A we've been that trust pressure. So mix. have excess

Timothy Coffey

are like loan could your would book normal death, kind the performing business anything switch status. what I Okay. into you divorce, change or those of in drive quality in are to dissolution, seeing And loans and a in economic the But then outlook. mean, nonperforming I if environment? the indicate business times, that credit

David Brager

mean, up Yes. I outs. mentioned But I flat. mean, large mean, you pretty the there take if I are and call I the earlier, stayed well. speaking, I that answered generally out on have other one really, in question pretty It's and the things ins held mean, the interesting. numbers loan

about I less any small so case-by-case nothing sort basis. group, mean we they things maybe but I get less all it's these team, that of just seeing hard the early been borrower, are of to doesn't change, the C&I But work our can't of. really material. special of where And things and sort work good. areas I and the And out sort have it's assets so stable. far, still some X(a) type our It always pretty get SBA but concerned mean, salespeople, credit to been our problems. mean, we're those stuff, just which hiccups, potential

Operator

further the I'm Instructions] time. the queue like in Dave closing call to remarks. for showing Mr. questions I would turn now this back at [Operator to no over Brager

David Brager

appreciate for I this joining to January in to Thank forward Fourth you us Earnings thank very you with speaking everybody We for quarter. our look interest XXXX much. Call. want your and Quarter

just always, As questions. any you a if Bye-bye. and for let Have day, great or Allen have thanks listening. I know

Operator

participating. Thank today's This you concludes for program.

disconnect. now may You

CVB Financial (CVBF) 26 Oct 232023 Q3 Earnings call transcript