Core Viewpoint - CVB Financial (CVBF) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, CVB Financial is expected to earn $1.44 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 3.8% over the past three months [8]. - The upgrade to Zacks Rank 2 places CVB Financial in the top 20% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of generating significant returns for top-ranked stocks [7][9]. - Only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating, indicating a balanced approach to stock ratings [9].

Financial Performance - For Q1 2025, CVB Financial Corp. reported net earnings of $51.1 million, a slight increase from $50.9 million in Q4 2024 and $48.6 million in Q1 2024, with diluted earnings per share at $0.36[148] - Noninterest income increased to $16.2 million in Q1 2025, compared to $13.1 million in Q4 2024 and $14.1 million in Q1 2024, including a net gain of $2.2 million from the sale of four OREO properties[150] - The efficiency ratio for Q1 2025 was reported at 46.69%[148] - Net earnings rose to $51,104,000, reflecting a 5.15% increase from $48,599,000 in the prior year[163] - The return on average assets improved to 1.37%, up from 1.21% in the previous year[163] - Noninterest expense was $59,144,000, a slight decrease of 1.05% from $59,771,000 in the previous year[163] Income and Expenses - The net interest income for Q1 2025 was $110.4 million, consistent with Q4 2024, but a decrease of $2.0 million, or 1.79%, from Q1 2024, with a net interest margin of 3.31%[149] - Net interest income for the three months ended March 31, 2025, was $110,444,000, a decrease of 1.79% from $112,461,000 in 2024[163] - Total interest income decreased by $14.7 million or 9.31% to $143.0 million compared to Q1 2024, primarily due to a $1.09 billion decline in earning assets[175] - Interest expense for Q1 2025 was $32.6 million, a decrease of $12.7 million compared to Q1 2024, with a total cost of funds decreasing from 1.31% to 1.04%[179] - Noninterest expense for Q1 2025 was $59.1 million, a decrease of $627,000 or 1.05% compared to Q1 2024, which included a $2.3 million FDIC special assessment[195] Assets and Liabilities - Total assets rose to $15.26 billion as of March 31, 2025, an increase of $102.9 million, or 0.68%, from $15.15 billion at December 31, 2024[152] - Total liabilities rose by $60.8 million, or 0.47%, to $13.03 billion, with total deposits increasing by $41.5 million, or 0.35%[200] - The investment securities portfolio decreased by $27.6 million, or 0.56%, to $4.89 billion, primarily due to a $20.5 million decline in held-to-maturity (HTM) securities[202] - Total loans and leases decreased by $172.8 million, or 2.02%, to $8.36 billion at March 31, 2025, with a yield on loans of 5.22%[154] Deposits and Equity - Noninterest-bearing deposits increased by $147.1 million, or 2.09%, to $7.18 billion at March 31, 2025, representing 59.92% of total deposits[156] - The Company's total equity increased to $2.23 billion at March 31, 2025, up by $42.1 million from $2.19 billion at December 31, 2024, driven by net earnings and other comprehensive income[159] - Total deposits increased by $41.5 million, or 0.35%, to $11.99 billion as of March 31, 2025, compared to $11.95 billion at December 31, 2024[246] Credit Quality - The allowance for credit losses was $78.3 million at March 31, 2025, down from $80.1 million at December 31, 2024, with a recapture of credit losses of $2.0 million in Q1 2025[155] - Nonperforming loans decreased to $25.6 million as of March 31, 2025, representing 0.31% of total loans, down from $27.8 million (0.33%) at December 31, 2024[233] - The percentage of nonperforming assets to total assets decreased to 0.17% as of March 31, 2025, from 0.31% at December 31, 2024[233] - The company reported no nonperforming construction loans as of March 31, 2025[218] Capital Ratios - Capital ratios remained strong, with a Tier 1 leverage capital ratio of 11.81% and a common equity Tier 1 ratio of 16.52% as of March 31, 2025[160] - The company exceeded the minimum risk-based capital ratios required to be considered "well-capitalized" for regulatory purposes as of March 31, 2025[275] Shareholder Actions - The company repurchased 782,063 shares of common stock at an average price of $19.55, totaling $15.3 million in Q1 2025, with no repurchases in Q1 2024[201] - The company had $4.1 billion of secured and unused capacity with the Federal Home Loan Bank as of March 31, 2025[281] Interest Rate Risk - The company's net interest income (NII) sensitivity analysis indicates a 5.25% increase for a +200 basis points shift over a 12-month period by March 31, 2025, and a 4.66% increase for the same shift by December 31, 2024[293] - The overall sensitivity of EVE to changes in interest rates is modest, with significant reductions in value if rates decline by 300 or 400 basis points[295] - The company has replaced LIBOR-indexed loans with one month CME Term SOFR due to the phase-out of LIBOR[297]

Financial Data and Key Metrics Changes - The company reported net earnings of $51.1 million or $0.36 per share for Q1 2025, marking the 192nd consecutive quarter of profitability [6] - Return on average tangible common equity was 14.51% and return on average assets was 1.37% for Q1 2025 [6] - Net interest margin expanded by 13 basis points to 3.31% compared to 3.18% in Q4 2024 and 3.10% in Q1 2024 [8] - Total deposits and customer repurchase agreements increased to $12.3 billion, a $56 million increase from Q4 2024 [9] - Non-interest income was $16.2 million for Q1 2025, compared to $13.1 million in Q4 2024 [32] Business Line Data and Key Metrics Changes - Total loans decreased to $8.36 billion, a $173 million decrease from Q4 2024, primarily due to a decline in dairy and livestock loans [12] - Loan originations in Q1 2025 were approximately 13% higher than in Q1 2024, with notable increases in C&I and commercial real estate loans [15] - Nonperforming and delinquent loans decreased to $26.8 million from $47.6 million at the end of Q4 2024 [16] Market Data and Key Metrics Changes - Noninterest-bearing deposits grew by $147 million or 2% compared to the end of 2024 [9] - The cost of deposits and repos was 87 basis points for Q1 2025, down from 97 basis points in Q4 2024 [10] - The company experienced a seasonal decline in average deposits from Q4 2024 to Q1 2025, with a $380 million decline [10] Company Strategy and Development Direction - The company remains focused on banking small to medium-sized businesses and their owners through all economic cycles [131] - The management expressed confidence in continuing share repurchases while also considering potential acquisitions [27][86] - The company is actively looking for opportunities to gain market share from competitors affected by recent disruptions in the banking sector [122][125] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic forecast indicates slower GDP growth and a forecasted unemployment rate of 5% by February 2025 [22] - Customers are generally optimistic despite some concerns about tariffs and economic volatility, with many prepared for potential challenges [108] - The management believes that loan production will begin to outpace payoffs, projecting low single-digit growth by the end of the year [50] Other Important Information - The allowance for credit loss was $78.2 million at the end of Q1 2025, with a recapture of $2 million for the quarter [20] - The company sold $19.3 million of OREO, generating a net gain of $2.2 million [8] - The company’s capital levels allow for continued share repurchases and potential M&A activities [27][86] Q&A Session Summary Question: Impact of tariff policies on the agricultural portfolio - Management indicated it is too early to assess the overall impact, but customers currently feel relatively okay [42][44] Question: Pace of commercial real estate payoff activity - Elevated prepayment penalties were noted, but strong loan activity is expected to continue [46][50] Question: Loan prepayment penalties impact on interest income - The impact was approximately $300,000 quarter over quarter [56] Question: Expectations around deposit cost reduction - Management sees potential for slight reductions in deposit costs, particularly with new money market accounts [60] Question: Focus areas in credit management amid market uncertainty - Management has not changed its disciplined approach to underwriting despite economic volatility [68][71] Question: Competitive landscape for deposits - The majority of deposit growth came from new relationships, with expectations for continued growth in non-interest-bearing deposits [77][81] Question: Appetite for increasing the multifamily portfolio - Management remains open to opportunities in multifamily lending, maintaining a consistent underwriting approach [115] Question: Opportunities for gaining market share - Management sees ongoing opportunities to gain share from disrupted competitors, particularly in specialty banking [122][125]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net earnings of $51.1 million or $0.36 per share, marking the 192nd consecutive quarter of profitability [6] - The return on average tangible common equity was 14.51% and return on average assets was 1.37% for Q1 2025 [6] - Net interest margin expanded by 13 basis points to 3.31% compared to 3.18% in Q4 2024 and 3.10% in Q1 2024 [8] - Total deposits and customer repurchase agreements increased to $12.3 billion, a $56 million increase from Q4 2024 [9] - Non-interest income for Q1 2025 was $16.2 million, up from $13.1 million in Q4 2024 [32] Business Line Data and Key Metrics Changes - Total loans decreased to $8.36 billion, a $173 million decline from Q4 2024, primarily due to a $168 million decrease in dairy and livestock loans [12] - Loan originations in Q1 2025 were approximately 13% higher than in Q1 2024, with notable increases in C&I and commercial real estate loans [15] - Nonperforming and delinquent loans decreased to $26.8 million from $47.6 million at the end of Q4 2024 [16] Market Data and Key Metrics Changes - Noninterest-bearing deposits grew by $147 million or 2% compared to the end of 2024 [9] - The cost of deposits and repos was 87 basis points for Q1 2025, down from 97 basis points in Q4 2024 [10] - The economic forecast indicates real GDP growth slowing to 2% in the second half of 2026, with unemployment expected to remain above 5% until 2028 [22] Company Strategy and Development Direction - The company remains focused on banking small to medium-sized businesses and their owners through all economic cycles [131] - A new share repurchase program was authorized, with 2.05 million shares repurchased at an average price of $18.13 [7] - The company is actively looking for M&A opportunities while continuing to focus on internal growth [85][87] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of tariff policies on the agricultural portfolio is still uncertain, but customers feel relatively okay [43] - There is optimism regarding the commercial real estate market, with strong loan pipelines and increased activity expected [46][48] - Management expressed confidence in the ability to grow loans again by the end of the year, despite some unique challenges in Q1 [51] Other Important Information - The allowance for credit loss was $78.2 million at the end of Q1 2025, with a recapture of $2 million for the quarter [20] - The company’s capital position remains strong, with a tangible common equity ratio of 10% [27] Q&A Session Summary Question: Impact of tariff policies on agricultural portfolio - Management indicated it is too early to tell the overall impact, but customers feel relatively okay so far [43][44] Question: Pace of commercial real estate payoff activity - Elevated prepayment penalties were noted, but strong loan activity is expected moving forward [46] Question: Loan prepayment penalties impact on interest income - The impact was approximately $300,000 quarter over quarter [56] Question: Expectations around deposit cost reduction - Management believes there is still some room for deposit cost reduction, primarily through evaluating customer relationships [60][61] Question: Focus on credit management amid market uncertainty - Management stated that their disciplined approach to underwriting has not changed despite economic uncertainty [68][70] Question: Opportunities for core deposit growth - Most growth came from new relationships, with expectations for continued growth in non-interest-bearing deposits [77][78] Question: Appetite for M&A - Management expressed confidence in pursuing M&A opportunities while balancing share repurchases [85][87] Question: Demand in commercial real estate - Demand is broad-based across asset classes, with a focus on low loan-to-value loans [102] Question: Customer sentiment - Overall sentiment remains positive, with customers prepared for potential volatility [108][109] Question: Underwriting new construction loans - Input costs are a concern, but the company is open to construction lending opportunities [112] Question: Appetite for increasing multifamily portfolio - The appetite remains the same, with a focus on appropriate underwriting [115]

Image source: The Motley Fool.Wednesday, Apr 23, 2025CALL PARTICIPANTSDavid A. Brager: President and Chief Executive OfficerAllen Nicholson: Executive Vice President and Chief Financial OfficerNeed a quote from one of our analysts? Email [email protected]Net Earnings: Reported net earnings of $51.1 million, or $0.36 per share, for Q1 2025, representing the 192nd consecutive quarter of profitability Net Interest Margin: Expanded by 13 basis points to 3.31% in Q1 2025, up from 3.18% in Q4 2024Total Loans: $8. ...

Financial Data and Key Metrics Changes - The company reported net earnings of $51.1 million or $0.36 per share for Q1 2025, marking the 190th consecutive quarter of profitability [4] - Return on average tangible common equity was 14.51% and return on average assets was 1.37% for Q1 2025 [5] - Net interest margin expanded by 13 basis points to 3.31% compared to 3.18% in Q4 2024 [6] - Net interest income was $110.4 million in Q1 2025, unchanged from Q4 2024 but down from $112.5 million in Q1 2024 [17][18] Business Line Data and Key Metrics Changes - Total loans decreased to $8.36 billion, a decline of $173 million from Q4 2024 and a 4.6% decrease year-over-year [10] - Non-interest income increased to $16.2 million in Q1 2025 from $13.1 million in Q4 2024 [21] - Non-interest expense was $59.1 million, slightly up from $58.5 million in Q4 2024 [22] Market Data and Key Metrics Changes - Total deposits and customer repurchase agreements totaled $12.3 billion, an increase of $56 million from Q4 2024 [8] - Non-interest bearing deposits grew by $147 million or 2% compared to Q4 2024 [9] - The cost of deposits decreased to 87 basis points in Q1 2025 from 97 basis points in Q4 2024 [9] Company Strategy and Development Direction - The company continues to focus on maintaining profitability and returning capital to shareholders through dividends and share repurchases [5][16] - The management emphasized a disciplined approach to credit underwriting despite economic uncertainties [50][52] - The company is exploring opportunities for mergers and acquisitions while balancing share repurchases [61][63] Management Comments on Operating Environment and Future Outlook - Management noted that the economic forecast indicates slower GDP growth and a potential rise in unemployment [15] - Customers are generally optimistic despite some concerns about tariffs and economic volatility [84] - The company expects to see loan growth in the coming quarters, particularly in commercial real estate [34][56] Other Important Information - The company has authorized a new share repurchase program and has repurchased 2.05 million shares at an average price of $18.13 [5][16] - The allowance for credit loss was $78.2 million, or 0.94% of gross loans, with a recapture of $2 million in Q1 2025 [14] Q&A Session Summary Question: Impact of tariff policies on the agricultural portfolio - Management indicated it is too early to assess the impact, but customers feel relatively okay, and milk prices remain steady [29][30] Question: Pace of commercial real estate payoff activity - Management noted elevated prepayment penalties and strong loan activity, with more loans closed in April than in any month over the last 14 months [31][32] Question: Loan prepayment penalties impact on interest income - The impact was approximately $300,000 quarter-over-quarter [40] Question: Expectations around deposit cost reduction - Management believes there is some room for deposit cost reduction, particularly with new money market accounts [42][44] Question: Focus areas in credit management amid market uncertainty - Management stated that their disciplined approach to underwriting has not changed, despite increased scrutiny due to economic conditions [50][52] Question: Competitive landscape for deposits - Management reported strong core deposit growth, primarily from new relationships, and anticipates continued growth in the second and third quarters [55][56] Question: Appetite for increasing the multifamily portfolio - Management expressed a consistent appetite for multifamily loans, focusing on strong borrowers [88][89]

[Q1 2025 Earnings Overview](index=1&type=section&id=CVB%20Financial%20Corp.%20Reports%20Earnings%20for%20the%20First%20Quarter%202025) CVB Financial Corp. reported Q1 2025 net income of $51.1 million and diluted EPS of $0.36, driven by an expanded net interest margin and strong asset quality [Performance Summary and Highlights](index=1&type=section&id=Highlights%20for%20the%20First%20Quarter%20of%202025) CVB Financial Corp. reported stable net income of $51.1 million for Q1 2025, with diluted EPS of $0.36, consistent with the prior quarter and up from $0.35 year-over-year. Key performance metrics were strong, with a 1.37% ROAA and a 14.51% ROATCE. The net interest margin expanded by 13 basis points quarter-over-quarter to 3.31%, driven by a lower cost of funds. The company highlighted its 192nd consecutive quarter of profitability Q1 2025 Key Financial Results | Metric | Q1 2025 ($) | Q4 2024 ($) | Q1 2024 ($) | | :--- | :--- | :--- | :--- | | Net Income | $51.1 million | $50.9 million | $48.6 million | | Diluted EPS | $0.36 | $0.36 | $0.35 | | ROAE (annualized) | 9.31% | 9.14% | 9.31% | | ROATCE (annualized) | 14.51% | 14.31% | 15.13% | | ROAA (annualized) | 1.37% | 1.30% | 1.21% | - Management highlighted the company's **192 consecutive quarters (48 years) of profitability** and **142 consecutive quarters of paying cash dividends**, attributing success to its focus on small to medium-sized businesses[5](index=5&type=chunk) - Key operational highlights for the quarter include: * Net interest margin increased **13 basis point QoQ increase in NIM** to **3.31%** * Cost of funds decreased to **1.04%** from **1.13%** in Q4 2024 * A net gain of **$2.2 million** was realized on the sale of **$19.3 million** of OREO assets * Noninterest-bearing deposits grew by **$147 million** from the end of 2024[7](index=7&type=chunk)[12](index=12&type=chunk) [Income Statement Analysis](index=2&type=section&id=INCOME%20STATEMENT%20HIGHLIGHTS) Analysis of net interest income, credit loss provisions, noninterest income, and expenses reveals key drivers of the company's Q1 2025 earnings performance [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income) Net interest income was essentially flat at $110.4 million compared to the prior quarter, as a 13-basis point expansion in net interest margin (NIM) to 3.31% was offset by a $405.6 million decline in average earning assets. The NIM improvement was driven by a 9-basis point decrease in cost of funds and a 4-basis point increase in earning asset yields. Year-over-year, NII decreased by $2.0 million due to a $1.09 billion decline in earning assets resulting from a deleveraging strategy Net Interest Income and Margin Performance | Metric | Q1 2025 ($) | Q4 2024 ($) | Q1 2024 ($) | | :--- | :--- | :--- | :--- | | Net Interest Income | $110.4M | $110.4M | $112.5M | | Net Interest Margin (TE) | 3.31% | 3.18% | 3.10% | | Cost of Funds | 1.04% | 1.13% | 1.31% | - The **13 basis point QoQ increase in NIM** was a result of a **4 basis point increase in earning asset yields** and a **9 basis point decrease in cost of funds**[11](index=11&type=chunk) - The **$2.0 million YoY decrease in NII** was primarily caused by a **$1.09 billion decline in earning assets**, which was part of a deleveraging strategy that reduced borrowings by **$1.48 billion**[10](index=10&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses) The company recorded a $2.0 million recapture of provision for credit losses in Q1 2025, compared to a $3.0 million recapture in Q4 2024 and no provision in Q1 2024. This was supported by net recoveries of $130,000 during the quarter, and the allowance for credit losses remained stable at 0.94% of gross loans - A **$2.0 million recapture of provision for credit losses** was recorded in Q1 2025, with **net recoveries of $130,000**[16](index=16&type=chunk) - The allowance for credit losses as a percentage of gross loans was **0.94%** at March 31, 2025, unchanged from the prior quarter[16](index=16&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income increased to $16.2 million in Q1 2025, up from $13.1 million in Q4 2024 and $14.1 million in Q1 2024. The quarter-over-quarter increase was primarily driven by a $2.2 million net gain from the sale of four OREO properties Noninterest Income Comparison | Period | Noninterest Income ($) | | :--- | :--- | | Q1 2025 | $16.2 million | | Q4 2024 | $13.1 million | | Q1 2024 | $14.1 million | - The Bank sold four OREO properties during the quarter, resulting in a gain of **$2.2 million**[17](index=17&type=chunk) - Income from BOLI increased by **$445,000** QoQ, while income from various equity investments increased by **$750,000** QoQ[18](index=18&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense was $59.1 million, a slight increase from $58.5 million in Q4 2024, mainly due to higher seasonal payroll taxes and a $500,000 provision for unfunded loan commitments. The efficiency ratio improved to 46.69% from 47.34% in the prior quarter Noninterest Expense and Efficiency Ratio | Metric | Q1 2025 ($) | Q4 2024 ($) | Q1 2024 ($) | | :--- | :--- | :--- | :--- | | Noninterest Expense | $59.1 million | $58.5 million | $59.8 million | | Efficiency Ratio | 46.69% | 47.34% | 47.22% | - The **$664,000** quarter-over-quarter increase was primarily due to a **$500,000 provision for unfunded loan commitments** and a **$479,000 increase in salaries and benefits** from higher payroll taxes[19](index=19&type=chunk) - The year-over-year decrease was impacted by a **$2.3 million FDIC special assessment** in Q1 2024, which was partially offset by higher software and occupancy expenses in Q1 2025[20](index=20&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) The effective tax rate for Q1 2025 was 26.50%, compared to 25.25% in Q4 2024 and 27.25% in Q1 2024. The rate can vary based on the level of tax-advantaged income Effective Tax Rate Comparison | Period | Effective Tax Rate (%) | | :--- | :--- | | Q1 2025 | 26.50% | | Q4 2024 | 25.25% | | Q1 2024 | 27.25% | [Balance Sheet Analysis](index=5&type=section&id=BALANCE%20SHEET%20HIGHLIGHTS) Review of assets, asset quality, deposits, borrowings, and capital provides insight into the company's financial position and strategic deleveraging efforts [Assets](index=5&type=section&id=Assets) Total assets were $15.26 billion at March 31, 2025, a slight increase of $102.9 million from the prior quarter but a decrease of $1.2 billion from the prior year. The year-over-year decline reflects strategic decreases in loans, investment securities, and cash balances Total Assets Comparison | Date | Total Assets ($) | | :--- | :--- | | Mar 31, 2025 | $15.26 billion | | Dec 31, 2024 | $15.15 billion | | Mar 31, 2024 | $16.47 billion | - The quarter-over-quarter asset increase was driven by a **$290.3 million rise** in balances at the Federal Reserve, offset by decreases in net loans (**-$170.9M**) and investment securities (**-$27.6M**)[22](index=22&type=chunk) [Investment Securities](index=5&type=section&id=Investment%20Securities) Total investment securities were $4.89 billion, down $397.5 million year-over-year. The portfolio consists of $2.36 billion in Held-to-Maturity (HTM) and $2.54 billion in Available-for-Sale (AFS) securities. The pre-tax net unrealized loss on AFS securities improved, decreasing by $58.9 million during the quarter to $338.4 million Investment Securities Portfolio (Mar 31, 2025) | Category | Balance ($) | Change from Dec 31, 2024 ($) | | :--- | :--- | :--- | | Total Investment Securities | $4.89 billion | -$27.6 million | | Held-to-Maturity (HTM) | $2.36 billion | -$20.5 million | | Available-for-Sale (AFS) | $2.54 billion | -$7.0 million | - The pre-tax unrealized loss on AFS securities decreased by **$58.9 million** from December 31, 2024[25](index=25&type=chunk) [Loans](index=5&type=section&id=Loans) Total loans decreased by $172.8 million (2.02%) from Q4 2024 to $8.36 billion. The decline was primarily driven by a $167.8 million reduction in dairy & livestock loans. Year-over-year, loans decreased by $407.1 million, led by a drop in commercial real estate loans Loan Portfolio Changes | Period | Total Loans (at amortized cost) ($) | Change ($) | | :--- | :--- | :--- | | Mar 31, 2025 | $8.36 billion | -$172.8 million (QoQ) | | Dec 31, 2024 | $8.53 billion | - | | Mar 31, 2024 | $8.77 billion | -$407.1 million (YoY) | - The quarter-over-quarter loan decrease was led by a **$167.8 million drop in dairy & livestock loans** and a **$16.8 million drop in commercial real estate loans**[26](index=26&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality improved significantly, with nonperforming assets decreasing to $26.1 million (0.17% of total assets) from $47.1 million in Q4 2024. This was largely due to the sale of $19.3 million in OREO. The Allowance for Credit Losses (ACL) remained stable at 0.94% of total loans Asset Quality Metrics | Metric | Mar 31, 2025 ($) | Dec 31, 2024 ($) | Mar 31, 2024 ($) | | :--- | :--- | :--- | :--- | | Nonperforming Loans | $25.6 million | $27.8 million | $13.8 million | | OREO | $0.5 million | $19.3 million | $0.6 million | | Total Nonperforming Assets | $26.1 million | $47.1 million | $14.5 million | | NPA / Total Assets | 0.17% | 0.31% | 0.09% | | ACL / Total Loans | 0.94% | 0.94% | 0.94% | - The **$21.0 million decrease in nonperforming assets** from the prior quarter was primarily due to the sale of **$19.3 million of OREO** at a net gain of **$2.2 million**[30](index=30&type=chunk) [Deposits & Customer Repurchase Agreements](index=6&type=section&id=Deposits%20%26%20Customer%20Repurchase%20Agreements) Total deposits and customer repos increased slightly by $55.8 million from the prior quarter to $12.27 billion. A key positive trend was the $147.2 million growth in noninterest-bearing deposits, which now constitute 59.92% of total deposits, up from 58.90% at year-end 2024 Deposit Composition (Mar 31, 2025) | Category | Balance ($) | Change from Dec 31, 2024 ($) | | :--- | :--- | :--- | | Total Deposits & Repos | $12.27 billion | +$55.8 million | | Noninterest-bearing Deposits | $7.18 billion | +$147.2 million | | % of Noninterest-bearing | 59.92% | 58.90% (at Dec 31, 2024) | [Borrowings](index=7&type=section&id=Borrowings) Total borrowings were stable at $500 million in FHLB advances. This represents a significant $1.5 billion decrease from March 31, 2024, as the company redeemed all advances from the Federal Reserve's Bank Term Funding Program (BTFP) before the end of 2024 - As of March 31, 2025, total borrowings consisted solely of **$500 million of FHLB advances**[33](index=33&type=chunk) - Borrowings decreased by **$1.5 billion** from March 31, 2024, following the redemption of advances from the Federal Reserve's Bank Term Funding Program (BTFP)[33](index=33&type=chunk) [Capital](index=7&type=section&id=Capital) Total equity increased by $42.1 million to $2.23 billion, driven by net earnings. All regulatory capital ratios remain well-above required minimums, with the CET1 ratio at 16.5% and the Tangible Common Equity ratio improving to 10.0%. The company repurchased $15.3 million of common stock during the quarter Regulatory Capital Ratios (Consolidated) | Ratio | Mar 31, 2025 (%) | Dec 31, 2024 (%) | Minimum + Buffer (%) | | :--- | :--- | :--- | :--- | | CET1 Capital Ratio | 16.5% | 16.2% | 7.0% | | Tier 1 Risk-Based Capital | 16.5% | 16.2% | 8.5% | | Total Risk-Based Capital | 17.3% | 17.1% | 10.5% | | Tangible Common Equity | 10.0% | 9.8% | N/A | - Tangible book value per share increased to **$10.45** at March 31, 2025, from **$10.10** at December 31, 2024[34](index=34&type=chunk) - The company repurchased **782,063 shares** of common stock for a total of **$15.3 million** during the first quarter of 2025[34](index=34&type=chunk) [Other Information and Disclosures](index=8&type=section&id=Corporate%20Overview) This section covers wealth management performance, corporate overview, and important legal and financial disclosures regarding forward-looking statements and non-GAAP measures [CitizensTrust](index=8&type=section&id=CitizensTrust) CitizensTrust, the company's wealth management division, had approximately $4.7 billion in assets under management and administration as of March 31, 2025. It generated revenues of $3.4 million for the quarter, a slight decrease from the prior quarter but an increase from the prior year - As of March 31, 2025, CitizensTrust had approximately **$4.7 billion in assets under management and administration**, including **$3.38 billion in assets under management**[37](index=37&type=chunk) CitizensTrust Revenue | Period | Revenue ($) | | :--- | :--- | | Q1 2025 | $3.4 million | | Q4 2024 | $3.5 million | | Q1 2024 | $3.2 million | [Corporate Overview and Disclosures](index=8&type=section&id=Safe%20Harbor) CVB Financial Corp. is one of the 10 largest bank holding companies headquartered in California, with over $15 billion in assets. The report includes standard Safe Harbor language regarding forward-looking statements and notes the use of non-GAAP financial measures, for which reconciliations are provided - CVBF is one of the **10 largest bank holding companies** headquartered in California with more than **$15 billion in total assets**[38](index=38&type=chunk) - The report contains forward-looking statements involving risks and uncertainties, and the company disclaims any obligation to update them[41](index=41&type=chunk)[45](index=45&type=chunk) - Certain non-GAAP financial measures are used to provide supplemental information. Investors should refer to the reconciliations included in the release[46](index=46&type=chunk) [Detailed Financial Tables](index=10&type=section&id=CVB%20FINANCIAL%20CORP.%20AND%20SUBSIDIARIES) Comprehensive unaudited financial statements and supplementary data are provided, including balance sheets, income statements, and reconciliations of non-GAAP measures [Condensed Consolidated Balance Sheets](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Detailed period-end consolidated balance sheets provide a snapshot of the company's assets, liabilities, and equity at key reporting dates Condensed Consolidated Balance Sheets (Unaudited) | (Dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | **Total Assets** | **$15,256,591** | **$15,153,655** | **$16,468,146** | | Net loans and lease finance receivables | $8,285,380 | $8,456,310 | $8,687,896 | | Total investment securities | $4,894,207 | $4,921,783 | $5,291,686 | | Total deposits | $11,989,921 | $11,948,381 | $11,894,921 | | Other borrowings | $500,000 | $500,000 | $1,995,000 | | **Total Liabilities** | **$13,028,172** | **$12,967,339** | **$14,381,321** | | **Total Stockholders' Equity** | **$2,228,419** | **$2,186,316** | **$2,086,825** | [Condensed Consolidated Average Balance Sheets](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20AVERAGE%20BALANCE%20SHEETS) Average balance sheets offer insights into the company's asset and liability structure over the reporting periods, aiding in financial ratio analysis Condensed Consolidated Average Balance Sheets (Unaudited, Three Months Ended) | (Dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | **Total Assets** | **$15,169,306** | **$15,562,489** | **$16,205,413** | | Loans and lease finance receivables | $8,467,465 | $8,522,587 | $8,824,579 | | Total investment securities | $4,908,718 | $4,936,514 | $5,357,708 | | Total deposits | $11,872,675 | $12,114,474 | $11,636,853 | | Other borrowings | $513,078 | $500,000 | $1,991,978 | | **Total Liabilities** | **$12,942,358** | **$13,348,933** | **$14,106,545** | | **Total Stockholders' Equity** | **$2,226,948** | **$2,213,556** | **$2,098,868** | [Condensed Consolidated Statements of Earnings](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) Detailed statements of earnings present the company's revenues, expenses, and net income for the reported quarters, highlighting profitability trends Condensed Consolidated Statements of Earnings (Unaudited, Three Months Ended) | (Dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $110,444 | $110,418 | $112,461 | | (Recapture of) provision for credit losses | ($2,000) | ($3,000) | $0 | | Noninterest income | $16,229 | $13,103 | $14,113 | | Noninterest expense | $59,144 | $58,480 | $59,771 | | Earnings before income taxes | $69,529 | $68,041 | $66,803 | | **Net Earnings** | **$51,104** | **$50,858** | **$48,599** | | **Diluted EPS** | **$0.36** | **$0.36** | **$0.35** | [Selected Financial Highlights](index=13&type=section&id=SELECTED%20FINANCIAL%20HIGHLIGHTS) Key financial metrics and breakdowns of the loan portfolio and deposit composition are presented, offering a concise overview of performance and structure Loan Portfolio by Type (Gross, at amortized cost) | (Dollars in thousands) | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Commercial real estate | $6,490,604 | $6,507,452 | $6,720,538 | | Commercial and industrial | $942,301 | $925,178 | $963,120 | | Dairy & livestock and agribusiness | $252,532 | $419,904 | $351,624 | | Other | $677,095 | $683,298 | $735,431 | | **Gross loans** | **$8,363,632** | **$8,536,432** | **$8,770,713** | Deposit Composition by Type | (Dollars in thousands) | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Noninterest-bearing | $7,184,267 | $7,037,096 | $7,112,789 | | Savings and money market | $3,710,612 | $3,786,387 | $3,561,512 | | Time deposits | $561,822 | $573,593 | $675,554 | | Investment checking | $533,220 | $551,305 | $545,066 | | **Total deposits** | **$11,989,921** | **$11,948,381** | **$11,894,921** | [Non-GAAP Reconciliations](index=19&type=section&id=Tangible%20Book%20Value%20Reconciliations%20(Non-GAAP)) Reconciliations of non-GAAP financial measures, such as tangible book value and return on average tangible common equity, are provided for investor clarity Tangible Book Value per Share (Non-GAAP) | (Dollars in thousands, except per share) | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Stockholders' equity | $2,228,419 | $2,186,316 | $2,086,825 | | Less: Goodwill & Intangibles | ($774,634) | ($775,789) | ($779,675) | | **Tangible book value** | **$1,453,785** | **$1,410,527** | **$1,307,150** | | **Tangible book value per share** | **$10.45** | **$10.10** | **$9.36** | Return on Average Tangible Common Equity (Non-GAAP) | (Dollars in thousands, annualized) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Tangible net income | $51,918 | $51,677 | $49,612 | | Average tangible common equity | $1,451,608 | $1,437,084 | $1,318,461 | | **Return on avg. tangible common equity** | **14.51%** | **14.31%** | **15.13%** |

Core Insights - CVB Financial reported revenue of $126.67 million for Q1 2025, a year-over-year increase of 0.1%, with an EPS of $0.36 compared to $0.35 a year ago, exceeding the Zacks Consensus Estimate of $124.95 million by 1.38% and delivering an EPS surprise of 9.09% [1] Financial Performance Metrics - Efficiency ratio was 46.7%, better than the estimated 48% [4] - Net Interest Margin stood at 3.3%, surpassing the estimated 3.2% [4] - Total Non-Performing Loans were reported at $25.64 million, lower than the estimated $28.41 million [4] - Total interest-earning assets amounted to $13.56 billion, slightly below the average estimate of $13.60 billion [4] - Total Non-Performing Assets were $26.13 million, significantly lower than the estimated $38.06 million [4] - Net Charge-off as a percentage of Average Loans was 0%, better than the estimated 0.1% [4] - Net Interest Income reached $110.44 million, exceeding the average estimate of $109.47 million [4] - Total Noninterest Income was $16.23 million, above the average estimate of $14.02 million [4] - Net Interest Income (FTE) was reported at $110.97 million, higher than the average estimate of $108.97 million [4] Stock Performance - CVB Financial shares returned -2.8% over the past month, outperforming the Zacks S&P 500 composite's -6.6% change, and currently holds a Zacks Rank 2 (Buy) indicating potential for near-term outperformance [3]

Core Insights - CVB Financial (CVBF) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing a slight increase from $0.35 per share a year ago, resulting in an earnings surprise of 9.09% [1] - The company achieved revenues of $126.67 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.38%, and showing a marginal increase from $126.57 million year-over-year [2] - CVB Financial has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.34, with projected revenues of $127.35 million, while the estimate for the current fiscal year is $1.39 on revenues of $517.55 million [7] - The trend of estimate revisions for CVB Financial is currently favorable, contributing to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Market Performance - CVB Financial shares have declined approximately 14% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [3] - The outlook for the industry, particularly the Banks - West sector, is currently in the bottom 43% of over 250 Zacks industries, which may impact the stock's performance [8]

Core Insights - CVB Financial Corp. reported a net income of $51.1 million for Q1 2025, showing a slight increase from $50.9 million in Q4 2024 and $48.6 million in Q1 2024, with diluted earnings per share remaining stable at $0.36 [2][4][7] Financial Performance - The annualized return on average equity (ROAE) was 9.31%, return on average tangible common equity (ROATCE) was 14.51%, and return on average assets (ROAA) was 1.37% for Q1 2025 [3][7] - Net interest income for Q1 2025 was $110.4 million, nearly unchanged from Q4 2024, but down by $2.02 million or 1.79% from Q1 2024 [10][11] - The net interest margin (NIM) increased to 3.31%, up 13 basis points from Q4 2024 and 21 basis points from Q1 2024 [12][13] Income Statement Highlights - Noninterest income rose to $16.2 million in Q1 2025, compared to $13.1 million in Q4 2024 and $14.1 million in Q1 2024 [18] - Noninterest expense was $59.1 million, slightly higher than $58.5 million in Q4 2024 but lower than $59.8 million in Q1 2024 [19][20] Balance Sheet Highlights - Total assets increased to $15.26 billion as of March 31, 2025, up $102.9 million from December 31, 2024, but down $1.2 billion from March 31, 2024 [22][23] - Total loans and leases decreased to $8.36 billion, down 2.02% from Q4 2024 and 4.64% from Q1 2024 [26][27] Asset Quality - The allowance for credit losses was 0.94% of gross loans as of March 31, 2025, consistent with the previous quarters [28] - Nonperforming assets totaled $26.1 million, a decrease from $47.1 million at December 31, 2024, primarily due to the sale of OREO properties [30] Capital and Ratios - Total equity increased to $2.23 billion, with a tangible common equity (TCE) ratio of 10.0% and a common equity tier 1 (CET1) ratio of 16.5% [36][38] - The efficiency ratio improved to 46.69% in Q1 2025, compared to 47.34% in Q4 2024 [20][9] Deposits and Borrowings - Total deposits and customer repurchase agreements reached $12.27 billion, reflecting a net increase of $55.8 million from December 31, 2024 [32] - Total borrowings decreased significantly by $1.5 billion from March 31, 2024, with current borrowings consisting of $500 million of FHLB advances [34]