Core Points - CVB Financial Corp. announced a cash dividend of $0.20 per share for the first quarter of 2025, payable on or about April 16, 2025, to shareholders of record as of April 2, 2025 [1] - This marks the 142nd consecutive quarterly cash dividend paid to shareholders, as stated by the President and CEO David A. Brager [2] Corporate Overview - CVB Financial Corp. is the holding company for Citizens Business Bank and is among the 10 largest bank holding companies in California, with total assets exceeding $15 billion [3] - Citizens Business Bank is recognized as one of the top-performing banks in the nation, offering a wide range of banking, lending, and investing services through more than 60 banking centers and three trust office locations in California [3] Investor Information - Shares of CVB Financial Corp. are listed on NASDAQ under the ticker symbol "CVBF" [4]

Financial Position - As of December 31, 2024, CVB Financial Corp. had total consolidated assets of $15.15 billion, net loans of $8.46 billion, deposits of $11.95 billion, and shareholders' equity of $2.19 billion[18]. - Citizens Business Bank had $15.16 billion in assets, $8.46 billion in net loans, $12.00 billion in deposits, and total equity of $2.16 billion as of December 31, 2024[20]. - The Bank had $300 million in brokered deposits as of December 31, 2024, which is only permissible for well-capitalized institutions[59]. - The total carrying value of the company's securities portfolio was $4.92 billion as of December 31, 2024, with $2.54 billion available-for-sale and $2.38 billion held-to-maturity[134]. - The aggregate pre-tax net unrealized loss in available-for-sale securities was $447.7 million, while the loss in held-to-maturity securities was approximately $425.3 million as of December 31, 2024[134]. Capital Requirements - As of December 31, 2024, the Company and the Bank are well-capitalized, meeting the minimum capital ratios of 7.0% for CET1, 8.5% for Tier 1, and 10.5% for Total Risk-Based Capital Ratio[51]. - The Capital Conservation Buffer is fully phased in at 2.5%, increasing the required minimum risk-based capital ratios[49]. - The Company must maintain a Tier 1 Risk-Based Capital Ratio of 6.0% or greater and a Total Risk-Based Capital Ratio of 10.0% or greater to avoid regulatory actions[47]. - The prompt corrective action standards require a common equity Tier 1 ratio of 6.5% and an increased Tier 1 ratio of 8% to be considered well-capitalized[55]. - The company currently exceeds the minimum capital ratio requirements to be deemed "well-capitalized" for regulatory purposes, but faces risks from economic instability and higher inflation, which could adversely affect liquidity and financial condition[163]. Regulatory Compliance - The Company is subject to the Sarbanes-Oxley Act of 2002, which includes requirements for executive certification of financial presentations and internal controls[65]. - The Bank is regulated by the DFPI and FDIC, which oversee its compliance with capital requirements and operational practices[66]. - The company is subject to various federal and state laws, including the California Consumer Privacy Act, which mandates compliance and could result in penalties for noncompliance[88]. - The company must comply with numerous anti-money laundering and consumer protection statutes, including the USA PATRIOT Act and the Bank Secrecy Act[87]. - The company is subject to increased scrutiny under UDAAP regulations, which may lead to changes in pricing, practices, and potential penalties[96]. Operational Risks - The company faces operational risks related to its technological and organizational infrastructure, which are critical for growth and compliance with laws and regulations[137]. - The company is heavily reliant on third-party vendors for critical technology systems, and any failures could lead to significant operational disruptions and potential losses[139]. - The company is exposed to risks from a downturn in real estate markets, particularly in California, where most loans are secured by real estate[122]. - Liquidity risk could impair the company's ability to fund operations, with potential adverse effects from market downturns or regulatory actions[127]. - Elevated interest rates have decreased the market value of the company's securities and loan portfolios, leading to potential losses if liquidation is required[134]. Employee and Leadership Metrics - The Company employed 1,089 associates as of December 31, 2024, reflecting a 1.6% decrease from 1,107 associates at the end of 2023[28]. - In 2024, 92% of associates participated in the 401(k) plan, with the Company contributing 5% of eligible salaries[31]. - The turnover rate among the leadership group was 5.8% in 2024, with an average tenure exceeding 10 years[32]. - 92% of associates earned an incentive bonus in 2024, compared to 93% in 2023[36]. - 38% of the Board of Directors are female or ethnically diverse as of December 31, 2024[35]. Legal and Litigation Risks - The company is involved in various lawsuits, including securities litigation, employment matters, and regulatory compliance claims[212]. - For lawsuits where a loss is probable and estimable, the company has recorded a liability based on known facts[213]. - The company reviews and adjusts accruals for loss contingencies quarterly as new information becomes available[214]. - The company does not believe that the resolution of current lawsuits will materially affect its financial condition or cash flows[215]. - The outcome of litigation is inherently uncertain, and some legal matters could potentially have a material adverse effect on operations[215]. Cybersecurity and Data Protection - Cybersecurity threats are a significant concern, with the company investing in comprehensive risk management and security measures to protect customer data[197][198]. - The company conducts annual cybersecurity risk assessments to identify vulnerabilities and prioritize security initiatives[201]. - The Board of Directors oversees the cybersecurity program, receiving regular updates on risk assessments and incident responses[207]. Market and Economic Risks - The company is subject to significant competition in California's banking sector, including from larger banks and FinTech companies, which may impact loan and deposit growth[166]. - The company may experience adverse effects from potential downgrades of U.S. government securities, which could impact funding availability and the market value of its securities portfolio[169]. - Climate change poses operational and credit risks, particularly for customers in the agricultural sector, which could adversely affect the company's financial performance[171]. - Recent bank failures in 2023 have led to increased regulatory scrutiny, potentially raising operational costs and affecting acquisition opportunities[178]. - Future legislation and regulatory reforms could materially affect the company's operations and profitability, though the specific impacts are currently unpredictable[165].

Core Insights - CVB Financial Corp. has been recognized by Forbes in their annual America's Best Banks list, marking the ninth time in the past decade that the Bank has earned this distinction [1][2] - The recognition reflects the strong financial performance of CVB Financial Corp. and Citizens Business Bank, highlighting the dedication of its associates and customer relationships [2] - In 2024, CVB Financial Corp. was ranked among the Top 50 Public Banks by S&P Global Market Intelligence and recognized as one of America's Greatest Workplaces for Women by Newsweek [2] Corporate Overview - CVB Financial Corp. is the holding company for Citizens Business Bank, one of the 10 largest bank holding companies headquartered in California, with total assets exceeding $15 billion [4] - Citizens Business Bank offers a wide range of banking, lending, and investing services, operating more than 60 banking centers and three trust office locations across California [4] Performance Metrics - Forbes evaluated ten metrics related to credit quality, growth, and profitability for the largest publicly traded banks and thrifts in the nation to establish its rankings [3] - CVB Financial Corp. has maintained a Five-Star Superior rating from BauerFinancial and a "Super Premier" Performing Bank designation from The Findley Reports [2] - The Bank has received a BBB+ rating from Fitch Ratings and was previously named the overall number one "Best Bank in America" by Forbes for four of the past ten years [2]

Financial Data and Key Metrics Changes - The company reported its financial results for Q4 2024, with specific metrics discussed during the call [3][4]. Business Line Data and Key Metrics Changes - Detailed performance across various business lines was not provided in the available content [4]. Market Data and Key Metrics Changes - Specific market data and key metrics were not disclosed in the provided excerpts [4]. Company Strategy and Development Direction and Industry Competition - The company emphasized the importance of understanding risks and uncertainties that may affect future performance, as outlined in their annual report [4]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for awareness of potential risks that could lead to actual results differing from forward-looking statements [4]. Other Important Information - The call included a disclaimer regarding the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 [4]. Q&A Session All Questions and Answers Question: Inquiry about financial performance details - Specific questions regarding financial performance were raised, but detailed responses were not included in the provided content [4].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net earnings of $51 million or $0.36 per share, maintaining profitability for 191 consecutive quarters [7] - The return on average tangible common equity was 14.31% and return on average assets was 1.3% for Q4 2024 [8] - Net interest income decreased by $3.2 million or 2.8% quarter-over-quarter, while non-interest income increased by $269,000 [9][10] - Total deposits and customer repurchase agreements increased by $505 million from December 31, 2023, totaling $12.2 billion [11] Business Line Data and Key Metrics Changes - Total loans at December 31, 2024, were $8.54 billion, a decrease of $36 million from Q3 and a decline of $368 million or 4% from December 31, 2023 [13] - Commercial real estate loans decreased by $111 million quarter-over-quarter, while dairy and livestock loans grew by $87 million [14][15] - Non-performing and delinquent loans decreased from $53.3 million at September 30, 2024, to $47.6 million at December 31, 2024 [15][16] Market Data and Key Metrics Changes - The cost of deposits was 93 basis points for Q4 2024, down from 98 basis points in Q3 2024 and 62 basis points in the year-ago quarter [12] - Non-maturity deposits grew by an average of $188 million compared to Q3, while time deposits declined by an average of $130 million [11] - The company experienced a decrease in deposits from the end of Q3 of $257 million [11] Company Strategy and Development Direction - The company is focused on internal growth and is actively exploring M&A opportunities, with ongoing discussions with various banks [39][40] - The management emphasized a disciplined approach to capital deployment, balancing between M&A and stock buybacks [41][43] - The company aims to continue growing low-cost deposits and has seen a strong year for new deposit relationships [12][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in 2025, noting an improvement in client sentiment and pipeline activity [36][37] - The economic forecast indicates slower GDP growth below 2% for 2025 through 2027, with rising unemployment rates [26] - Despite challenges in the California market, management believes in the bank's growth potential due to its low market share and diversified economy [78][80] Other Important Information - The company executed two sale-leaseback transactions in Q4 2024, realizing gains on sale totaling $16.8 million [11] - The unrealized loss on available-for-sale securities increased by $80 million from Q3 to Q4 2024 [20] - The company has a new 10 million share repurchase program authorized by the Board of Directors, although no shares were repurchased in Q4 2024 [27] Q&A Session Summary Question: Client sentiment and loan growth outlook - Management noted a sense of optimism among clients and an improving loan pipeline, although not yet at desired levels [36][37] Question: Capital deployment strategy - Management highlighted the importance of internal growth and ongoing M&A discussions, while maintaining a disciplined approach to capital use [39][40] Question: Deposit cost management and outlook - Management reported effective management of interest-bearing deposit costs and expressed confidence in future deposit growth [45][46] Question: Margin and expense outlook for 2025 - Management indicated a focus on maintaining controllable expenses while investing in technology to improve efficiency [60] Question: Impact of wildfires on the balance sheet - Management stated that the impact from the wildfires is limited, with some insurance proceeds already received and a focus on supporting affected clients [91][94]

Financial Performance - Net income for Q4 2024 was $50.9 million, a decrease of 0.6% from Q3 2024 ($51.2 million) and an increase of 5.0% from Q4 2023 ($48.5 million) [2] - Diluted earnings per share for Q4 2024 were $0.36, compared to $0.37 in Q3 2024 and $0.35 in Q4 2023 [2] - For the full year 2024, net income was $200.7 million, down 9.4% from $221.4 million in 2023, with diluted earnings per share decreasing from $1.59 to $1.44 [4] - Net earnings for the three months ended December 31, 2024, were $50,858,000, a decrease of 0.7% from $51,224,000 in the previous quarter [66] - Basic earnings per common share for the three months ended December 31, 2024, were $0.36, unchanged from the previous quarter [66] Income and Expenses - Net interest income for Q4 2024 was $110.4 million, a decrease of 2.82% from Q3 2024 and a decrease of 7.49% from Q4 2023 [9] - Noninterest income for Q4 2024 was $13.1 million, up from $12.8 million in Q3 2024 but down from $19.2 million in Q4 2023, with a pre-tax net gain of $16.8 million from sale-leaseback transactions [22] - Noninterest expense for Q4 2024 was $58.5 million, a decrease from $58.8 million in Q3 2024 and $65.9 million in Q4 2023 [24] - Total noninterest expense was $58,480,000 for the three months ended December 31, 2024, a decrease of 0.6% from $58,835,000 in the previous quarter [66] Asset and Liability Management - Total assets decreased by $249.6 million, or 1.62%, from $15.4 billion at September 30, 2024, to $15.1 billion at December 31, 2024 [27] - Total loans and leases at amortized cost decreased by $36.1 million, or 0.42%, from September 30, 2024, primarily due to decreases in commercial real estate loans [37] - Total deposits and customer repurchase agreements increased by $150.5 million compared to Q3 2024 and by $115.3 million from Q4 2023 [17] - Total liabilities decreased to $12,967,339 thousand from $13,943,021 thousand, a reduction of approximately 7.0% year-over-year [62] Capital and Equity - The Company's total equity increased by $108.34 million to $2.19 billion at December 31, 2024, with a tangible book value per share of $10.10 [47] - The Tier 1 leverage capital ratio was 11.5% at December 31, 2024, above the minimum required of 4.0% [49] - The common equity Tier 1 capital ratio increased to 16.2% in Q4 2024, compared to 14.6% in Q4 2023, reflecting enhanced financial stability [76] - Stockholders' equity rose to $2,498,380 thousand, up from $2,401,541 thousand a year ago, indicating an increase of about 4.0% [62] Credit Quality - The allowance for credit losses (ACL) was $80.1 million at December 31, 2024, representing 0.94% of total loans, down from 0.97% at September 30, 2024 [39] - Total nonperforming assets decreased from $53.3 million at September 30, 2024, to $47.6 million at December 31, 2024 [42] - Total nonperforming loans increased to $27,795 thousand as of December 31, 2024, up from $21,302 thousand a year earlier, representing a rise of 30.5% [74] - The percentage of total loans classified as nonperforming rose to 0.33% in Q4 2024, compared to 0.24% in Q4 2023 [74] Market Activity - The company announced a $10 million share repurchase program [10] - The Company authorized a new 10 million share stock repurchase program during Q4 2024, although no repurchases occurred in that quarter [47] - The high stock price for Q4 2024 reached $24.58, compared to a high of $21.77 in Q3 2024 [70]

Core Insights - CVB Financial reported revenue of $123.52 million for Q4 2024, a year-over-year decline of 10.8% and below the Zacks Consensus Estimate of $128.07 million, resulting in a surprise of -3.55% [1] - The company's EPS for the same period was $0.36, down from $0.39 a year ago, but exceeded the consensus estimate of $0.34, delivering a surprise of +5.88% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.2%, slightly above the average estimate of 3.1% from four analysts [4] - The Efficiency Ratio stood at 47.3%, compared to the average estimate of 46.5% from four analysts [4] - Total interest-earning assets amounted to $13.96 billion, below the average estimate of $14.20 billion from three analysts [4] - Net Charge-off as a percentage of Average Loans was 0%, better than the average estimate of 0.1% from two analysts [4] - Total NonPerforming Loans were reported at $27.80 million, significantly lower than the average estimate of $35.88 million from two analysts [4] - Total NonPerforming Assets reached $47.10 million, higher than the average estimate of $38.50 million from two analysts [4] - Net Interest Income was $110.42 million, below the average estimate of $112.27 million from four analysts [4] - Total Noninterest Income was $13.10 million, also below the average estimate of $15.21 million from four analysts [4] - Net Interest Income (FTE) was reported at $110.95 million, slightly below the average estimate of $111.96 million from three analysts [4] - Service Charges on Deposit Accounts were $5.10 million, in line with the average estimate of $5.11 million from two analysts [4] - Trust and Investment Services generated $3.51 million, below the average estimate of $3.82 million from two analysts [4] Stock Performance - Over the past month, shares of CVB Financial have returned -5.6%, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

CVB Financial (CVBF) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this bank holding company would post earnings of $0.35 per share when it actually produced earnings of $0.37, delivering a surprise of 5.71%.Over the last four quarters, the ...

Fourth Quarter 2024 Net Earnings of $51 million, or $0.36 per share Return on Average Assets of 1.30%Net Interest Margin of 3.18% Full Year 2024 Net Earnings of $201 million, or $1.44 per share Return on Average Tangible Common Equity of 14.95% Ontario, CA, Jan. 22, 2025 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the "Company"), announced earnings for the quarter and the year ended December 31, 2024. CVB Financial Corp. reported net income of $50.9 mi ...

Corporate Donation and Community Support - Citizens Business Bank has committed $200,000 to local community organizations for wildfire relief in Los Angeles County [1] - The donation will be distributed equally among four organizations, each receiving $50,000 [2] - The recipient organizations include Foothill Unity Center, Union Station Homeless Services, Pasadena Community Foundation's Eaton Fire Relief & Recovery Fund, and the Los Angeles Regional Food Bank [2] - The Bank's President and CEO emphasized the devastating impact of wildfires on Southern California and the need for community support [3] Corporate Overview - CVB Financial Corp is the holding company for Citizens Business Bank and is one of the 10 largest bank holding companies headquartered in California [5] - CVB Financial Corp has total assets exceeding $15 billion [5] - Citizens Business Bank operates more than 60 banking centers and three trust office locations across California [5] - The Bank is recognized as one of the top-performing banks in the nation, offering a wide range of banking, lending, and investing services [5] Investor Information - Shares of CVB Financial Corp are listed on NASDAQ under the ticker symbol "CVBF" [6] - Investor information is available on the Citizens Business Bank website under the "Investors" tab [6]