CVB Financial in Ontario, Calif., will take a small hit in the first quarter after repaying a Federal Home Loan Bank advance.
The $7.4 billion-asset company said in a press release late Thursday that it paid back $200 million to the FHLB earlier this week. The advance, set to mature in November 2016, had a 4.52% interest rate.
CVB said the repayment resulted in a $13.4 million termination expense.
The company said it paid using funds from deposits at the Federal Reserve Bank of San Francisco. CVB repaid the advance to deleverage its balance sheet and reduce future funding costs.