[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION%20(UNAUDITED)) This section provides unaudited condensed consolidated financial statements and management's analysis of financial performance and condition [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Unaudited condensed consolidated financial statements, including balance sheets, earnings, and cash flows, are presented with detailed accounting notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$15.41 billion** by June 30, 2025, driven by cash growth, while net loans decreased and stockholders' equity rose Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$15,414,130** | **$15,153,655** | | Total cash and cash equivalents | $738,636 | $204,698 | | Net loans and lease finance receivables | $8,280,498 | $8,456,310 | | Total investment securities | $4,813,536 | $4,921,783 | | **Total Liabilities** | **$13,173,808** | **$12,967,339** | | Total deposits | $11,984,823 | $11,948,381 | | Customer repurchase agreements | $404,154 | $261,887 | | **Total Stockholders' Equity** | **$2,240,322** | **$2,186,316** | [Condensed Consolidated Statements of Earnings and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Income) Net earnings for Q2 2025 were **$50.6 million**, with six-month earnings increasing to **$101.7 million**, significantly boosting comprehensive income Key Earnings Data (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $111,608 | $110,849 | $222,052 | $223,310 | | Provision for (recapture of) credit losses | $0 | $0 | $(2,000) | $0 | | **Net Earnings** | **$50,564** | **$50,035** | **$101,668** | **$98,634** | | **Diluted EPS** | **$0.37** | **$0.36** | **$0.73** | **$0.71** | | Comprehensive Income | $59,732 | $50,992 | $145,600 | $87,875 | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, investment and loan portfolio composition, credit loss allowance, and subsequent events like a **$6 million** legal settlement - The company operates as a single reportable segment, focusing on relationship-based banking for small to mid-sized companies and individuals primarily in California[25](index=25&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Subsequent to quarter-end, the company received a **$6 million** legal settlement and realized a **$6 million** pre-tax loss from selling available-for-sale securities with a carrying value of approximately **$50 million**[141](index=141&type=chunk)[142](index=142&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, highlighting **$50.6 million** net earnings, **$15.41 billion** total assets, and strategic actions including share repurchases [Overview](index=45&type=section&id=OVERVIEW) Q2 2025 net earnings were **$50.6 million**, with total assets reaching **$15.41 billion**, strong capital ratios, and **$37.5 million** in share repurchases Q2 2025 Financial Highlights | Metric | Q2 2025 | | :--- | :--- | | Net Earnings | $50.6 million | | Diluted EPS | $0.37 | | ROAE (annualized) | 9.06% | | ROAA (annualized) | 1.34% | | Net Interest Margin (NIM) | 3.31% | | Efficiency Ratio | 45.55% | - Total assets increased by **$260.5 million** (**1.72%**) since year-end 2024, primarily due to a **$492.8 million** increase in balances at the Federal Reserve, offset by decreases in loans and investment securities[156](index=156&type=chunk) - During the first half of 2025, the company repurchased **2,063,564 shares** at an average price of **$18.15**, totaling **$37.5 million**[163](index=163&type=chunk) [Analysis of the Results of Operations](index=47&type=section&id=ANALYSIS%20OF%20THE%20RESULTS%20OF%20OPERATIONS) Q2 2025 net interest income was **$111.6 million**, with noninterest income rising to **$14.7 million** and noninterest expense increasing to **$57.6 million** Comparison of Q2 2025 vs Q2 2024 (in thousands) | Item | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $111,608 | $110,849 | $759 | 0.68% | | Noninterest Income | $14,744 | $14,424 | $320 | 2.22% | | Noninterest Expense | $57,557 | $56,497 | $1,060 | 1.88% | | Net Earnings | $50,564 | $50,035 | $529 | 1.06% | - The increase in net interest income compared to Q2 2024 was driven by a **$15.6 million** decrease in interest expense, which more than offset a **$14.9 million** decline in interest income[183](index=183&type=chunk)[187](index=187&type=chunk) - The effective tax rate decreased to **26.50%** for the first six months of 2025 from **27.25%** in the prior year period, primarily due to increased investments in solar tax credits[210](index=210&type=chunk) [Analysis of Financial Condition](index=57&type=section&id=ANALYSIS%20OF%20FINANCIAL%20CONDITION) Financial condition remained strong with **$15.41 billion** in total assets, a **$4.81 billion** investment portfolio, and significantly reduced nonperforming assets - Total assets increased by **$260.5 million** (**1.72%**) from year-end 2024, driven by a **$492.8 million** increase in interest-earning balances at the Federal Reserve[213](index=213&type=chunk) - Nonperforming assets decreased to **0.17%** of total assets, down from **0.31%** at December 31, 2024[235](index=235&type=chunk) Capital Ratios as of June 30, 2025 | Ratio | CVB Financial Corp. | Well-Capitalized Minimum | | :--- | :--- | :--- | | Tier 1 leverage capital ratio | 11.84% | 5.00% | | Common equity Tier 1 capital ratio | 16.52% | 6.50% | | Tier 1 risk-based capital ratio | 16.52% | 8.00% | | Total risk-based capital ratio | 17.33% | 10.00% | [Asset/Liability and Market Risk Management](index=70&type=section&id=ASSET%2FLIABILITY%20AND%20MARKET%20RISK%20MANAGEMENT) The company manages liquidity and interest rate risk, maintaining substantial liquidity and an asset-sensitive balance sheet with projected **4.87%** NII increase in a **+200 bps** rate scenario - The company maintains substantial liquidity sources, including **$4.06 billion** of unused FHLB capacity and **$1.09 billion** of unused borrowing capacity at the Fed's discount window as of June 30, 2025[291](index=291&type=chunk) Estimated Net Interest Income Sensitivity (June 30, 2025) | Interest Rate Scenario | 12-month Period Change | 24-month Period Change (Cumulative) | | :--- | :--- | :--- | | + 200 basis points | 4.87% | 6.82% | | - 200 basis points | -4.38% | -7.41% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, with detailed disclosures provided in the MD&A section of this report - The company's main market risk is interest rate risk. Detailed disclosures are provided in the MD&A section of this report[307](index=307&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[308](index=308&type=chunk) - No material changes were made to the company's internal controls over financial reporting during the quarter ended June 30, 2025[309](index=309&type=chunk) [PART II – OTHER INFORMATION](index=78&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity security sales, and required exhibits [Item 1. Legal Proceedings](index=78&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Management does not anticipate any material adverse effects from pending legal proceedings on the company's financial condition or results - The company does not expect any currently pending lawsuits to have a material adverse effect on its financial results or condition[315](index=315&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the last Annual Report on Form 10-K[316](index=316&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased **1.28 million** shares for **$22.2 million** in Q2 2025, with **7.94 million** shares remaining available under the program Share Repurchase Activity - Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased Under Program | Average Price Paid Under Program | | :--- | :--- | :--- | :--- | :--- | | April 1 - 30, 2025 | 907 | $17.48 | 1,281,501 | $17.30 | | May 1 - 31, 2025 | 651 | $19.42 | — | - | | June 1 - 30, 2025 | 702 | $18.73 | — | - | | **Total Q2** | **2,260** | **$18.43** | **1,281,501** | **$17.30** | - As of June 30, 2025, **7,936,436 shares** remained available for repurchase under the company's 2024 Repurchase Program[317](index=317&type=chunk) [Item 3. Defaults Upon Senior Securities](index=79&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Not applicable [Item 4. Mine Safety Disclosures](index=79&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable [Item 5. Other Information](index=79&type=section&id=ITEM%205.%20OTHER%20INFORMATION) None [Item 6. Exhibits](index=80&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the quarterly report, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and XBRL data files

Core Insights - CVB Financial Corp. reported a net income of $50.6 million for the second quarter of 2025, a slight decrease from $51.1 million in the first quarter of 2025 but an increase from $50.0 million in the same quarter of 2024 [3][39] - The company corrected its earnings per share (EPS) for the second quarter of 2025 to $0.37, up from the previously reported $0.36, and the EPS for the first half of 2025 was adjusted from $0.72 to $0.73 [1][3] - The company maintained a strong financial performance with a return on average equity (ROAE) of 9.06% and a return on average tangible common equity (ROATCE) of 14.08% for the second quarter of 2025 [4][8] Financial Performance - Net interest income for the second quarter of 2025 was $111.6 million, reflecting a 1.1% increase from the first quarter of 2025 and a 0.7% increase from the second quarter of 2024 [11][12] - The net interest margin (NIM) remained stable at 3.31% for the second quarter of 2025, unchanged from the first quarter of 2025 and up from 3.05% in the second quarter of 2024 [13][14] - Noninterest income decreased to $14.7 million in the second quarter of 2025 from $16.2 million in the first quarter of 2025, primarily due to a one-time gain in the previous quarter [19][20] Asset Quality and Loans - The allowance for credit losses represented 0.93% of gross loans as of June 30, 2025, compared to 0.94% at the end of the first quarter of 2025 [18][34] - Total loans and leases decreased slightly to $8.36 billion at June 30, 2025, down by $5.1 million from the previous quarter [31][32] - Nonperforming loans totaled $25.97 million, representing 0.31% of total loans, which is consistent with the previous quarter [37] Deposits and Borrowings - Total deposits and customer repurchase agreements increased to $12.39 billion at June 30, 2025, a net increase of $122.9 million from the previous quarter [39][40] - Noninterest-bearing deposits accounted for 60.47% of total deposits, reflecting a slight increase from 59.92% in the previous quarter [40] - Total borrowings decreased significantly by $1.3 billion from June 30, 2024, with current borrowings consisting solely of $500 million in FHLB advances [41] Capital and Equity - The company's total equity increased to $2.24 billion at June 30, 2025, up by $54.0 million from December 31, 2024, driven by net earnings and other comprehensive income [42] - Capital ratios remain well above regulatory standards, with a common equity Tier 1 capital ratio of 16.5% as of June 30, 2025 [44]

Group 1 - CVB Financial (CVBF) is expected to have stable earnings this year [1] - Balance sheet growth is anticipated to be low [1] - Margin is projected to remain rangebound [1]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net earnings of $50.6 million or $0.36 per share, marking the 193rd consecutive quarter of profitability [5][6] - Return on average tangible common equity was 14.08% and return on average assets was 1.34% for Q2 2025 [5] - Net interest income for Q2 2025 was $111.6 million, slightly up from $110.4 million in Q1 2025 and $110.8 million in Q2 2024 [15][16] - Non-interest income was $14.7 million in Q2 2025, down from $16.2 million in Q1 2025 [24] Business Line Data and Key Metrics Changes - Total loans as of June 30, 2025, were $8.36 billion, a decline of $5 million from Q1 2025 and a decrease of $178 million or 2.1% from December 31, 2024 [10][11] - Commercial real estate and single-family loans increased by $27 million and $19 million respectively from Q1 2025 [11] - Non-interest expense for Q2 2025 was $57.6 million, down from $59.1 million in Q1 2025 [25] Market Data and Key Metrics Changes - Total deposits and customer repurchase agreements totaled $12.4 billion as of June 30, 2025, an increase of $123 million from March 31, 2025 [8] - Non-interest bearing deposits grew by $63 million compared to Q1 2025 and were $157 million or 2.2% higher than the end of Q2 2024 [9] Company Strategy and Development Direction - The company is focused on maintaining profitability and has a strong deposit pipeline, particularly in specialty banking [9][10] - Management indicated a potential shift towards expanding investment in the bond book due to increased cash reserves [56] - The company is considering opportunities outside California for acquisitions, reflecting a strategic shift in its growth approach [86] Management's Comments on Operating Environment and Future Outlook - The economic forecast indicates lower GDP growth and higher unemployment, with real GDP expected to remain below 1% until 2026 [18][19] - Management noted intense competition in the loan origination market, particularly from regional banks [58][70] - The company remains optimistic about loan originations outpacing payoffs in the latter half of the year [69] Other Important Information - The company has a tangible common equity ratio of 10% and a common equity Tier 1 capital ratio of 16.5% as of June 30, 2025 [22][23] - The company has authorized a new $10 million share repurchase plan [22] Q&A Session Summary Question: Can you quantify the prepay income this quarter versus last? - Management noted that elevated payoffs impacted volume more than yield, with prepayment penalties down [32] Question: What is the outlook for loan utilization? - Management indicated no changes in line utilization at this point, suggesting customers are utilizing cash instead [31] Question: Where is the most competition coming from? - The fiercest competition is coming from regional banks, with some pricing pressures noted [70] Question: How is the specialty banking group contributing to deposit trends? - The specialty banking group had a good year, contributing positively to deposit trends despite competitive pressures [72] Question: What are the thoughts on M&A activity? - Conversations are ongoing, with expectations of reasonable pricing for potential transactions [76] Question: How are expenses being managed? - Management indicated that expenses are well controlled, with a focus on technology and automation to manage costs [90]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net earnings of $50.6 million or $0.36 per share, marking the 193rd consecutive quarter of profitability [5][6] - The return on average tangible common equity was 14.08% and return on average assets was 1.34% for Q2 2025 [5] - Net interest income for Q2 2025 was $111.6 million, slightly up from $110.4 million in Q1 2025 and $110.8 million in Q2 2024 [15][16] - Non-interest income was $14.7 million in Q2 2025, down from $16.2 million in Q1 2025 [24] Business Line Data and Key Metrics Changes - Total loans as of June 30, 2025, were $8.36 billion, a decline of $5 million from Q1 2025 and a decrease of $178 million or 2.1% from December 31, 2024 [11][12] - Commercial real estate and single-family loans increased by $27 million and $19 million respectively from Q1 2025 [12] - Non-interest expense was $57 million in Q2 2025, down from $59.1 million in Q1 2025 [25][26] Market Data and Key Metrics Changes - Total deposits and customer repurchase agreements totaled $12.4 billion as of June 30, 2025, an increase of $123 million from March 31, 2025 [8][9] - Non-interest bearing deposits grew by $63 million compared to Q1 2025 and were $157 million or 2.2% higher than the end of Q2 2024 [10] Company Strategy and Development Direction - The company continues to focus on banking small to medium-sized businesses and their owners through all economic cycles [92] - The management indicated a potential shift in acquisition strategy to consider opportunities outside California, reflecting a strategic decision to expand geographic reach [80][81] Management's Comments on Operating Environment and Future Outlook - The economic forecast indicates lower GDP growth, higher unemployment, and declining commercial real estate prices, with real GDP expected to remain below 1% until 2026 [18][19] - Management expressed confidence in the loan pipelines and anticipated that originations could outpace payoffs in the latter half of the year [63] Other Important Information - The company authorized a new $10 million share repurchase plan in November, with 1.28 million shares repurchased at an average price of $17.3 [22] - The efficiency ratio improved to 45.6% in Q2 2025 compared to 46.9% in Q1 2025 [8][27] Q&A Session Summary Question: Can you quantify the prepay income this quarter versus last? - Management noted that prepayment penalties were down, impacting overall loan yields, and indicated that without these factors, yields would have been up about five basis points [31][32] Question: What is the outlook for the competitive environment? - Management described the competition as intense, particularly from regional banks, and indicated that they would remain disciplined in underwriting while focusing on the right relationships [52][64] Question: How is the specialty banking group contributing to deposit trends? - The specialty banking group had a good year, contributing positively to deposit trends, although they are cautious about high earnings credit rates [66][69] Question: Are there any plans for M&A activity? - Management confirmed ongoing conversations regarding M&A, with expectations for reasonable pricing and potential announcements by the end of the year [70][71]

Financial Performance - CVB Financial Corp's total assets reached $15.4 billion[4] - Gross loans amounted to $8.4 billion[4] - Total deposits, including repos, totaled $12.4 billion[4] - Total equity stood at $2.2 billion[4] - Q2 2025 net income was $51 million, with earnings per share (EPS) at $0.36[23] - The Return on Average Tangible Common Equity (ROATCE) was 14.08%[23] - The Return on Average Assets (ROAA) was 1.34%[23] - Net Interest Margin (NIM) was 3.31%[23] - Efficiency Ratio was 45.6%[23] Capital and Asset Quality - The CET1 Ratio was 16.5%[23] - The Total Risk-Based Ratio was 17.3%[23] - The Tangible Common Equity Ratio was 10.0%[23] - Non-Performing Assets (NPA) to Total Assets (TA) ratio was 0.17%, with NPAs totaling $26.6 million[23] - Classified loans represented 0.88% of total loans, amounting to $73.4 million[23] - The Allowance for Credit Losses (ACL) was $78 million, or 0.93% of gross loans[23] Funding and Loan Portfolio - Deposits and customer repos increased by $123 million from March 31, 2025[23] - Noninterest deposits accounted for over 60% of total deposits[23] - Loans decreased by $5 million from March 31, 2025[23] - Loans comprised 54% of assets, while securities accounted for 31%[21] - Commercial Real Estate (CRE) loans constituted 78% of the loan portfolio, followed by Commercial & Industrial (C&I) loans at 11%[21]

[Earnings Release Overview](index=1&type=section&id=Earnings%20Release%20Overview) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) CVB Financial Corp. reported stable Q2 2025 earnings with net income of $50.6 million and diluted EPS of $0.36, maintaining strong ROAA of 1.34% and ROATCE of 14.08% Net Income and Diluted EPS (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $50.6 million | $51.1 million | $50.0 million | | Diluted EPS | $0.36 | $0.36 | $0.36 | Key Performance Ratios (Annualized %) | Performance Ratio | Q2 2025 | | :--- | :--- | | Return on Average Equity (ROAE) | 9.06% | | Return on Average Tangible Common Equity (ROATCE) | 14.08% | | Return on Average Assets (ROAA) | 1.34% | - The company highlighted its consistent financial performance, marking **193 consecutive quarters of profitability** (over 48 years) and **143 consecutive quarters of paying cash dividends**[5](index=5&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased to $111.6 million, with NIM expanding to 3.31% year-over-year due to a 35-basis point reduction in the cost of funds Net Interest Income (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $111.6 million | $110.4 million | $110.8 million | - The year-over-year increase in net interest income was due to a **$15.6 million decline in interest expense**, which more than offset a **$14.9 million decrease in interest income**, a direct result of reducing average interest-bearing liabilities by **$1.19 billion**[9](index=9&type=chunk) Net Interest Margin and Cost of Funds (%) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin (TE) | 3.31% | 3.31% | 3.05% | | Yield on Earning Assets (TE) | 4.28% | 4.28% | 4.37% | | Cost of Funds | 1.03% | 1.04% | 1.38% | - The **26-basis point year-over-year increase in NIM** was primarily caused by a **35-basis point decrease in the cost of funds**, largely due to a **$1.34 billion decline in average borrowings** which had a higher cost[12](index=12&type=chunk) [Provision for Credit Losses](index=4&type=section&id=Provision%20for%20Credit%20Losses) No provision for credit losses was recorded in Q2 2025, with minimal net charge-offs of $249,000 and ACL at 0.93% of total loans - There was **no provision for credit losses in Q2 2025**, compared to a **$2.0 million recapture in Q1 2025** and no provision in Q2 2024[15](index=15&type=chunk) - Net charge-offs for Q2 2025 were **$249,000**, a shift from net recoveries of **$130,000** in the prior quarter[15](index=15&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income decreased to $14.7 million, primarily due to a one-time $2.2 million gain on OREO property sales in Q1 2025 Noninterest Income (Millions USD) | Period | Noninterest Income | | :--- | :--- | | Q2 2025 | $14.7 million | | Q1 2025 | $16.2 million | | Q2 2024 | $14.4 million | - The sequential decrease was mainly due to a **$2.2 million gain on the sale of four OREO properties in Q1 2025**, excluding this, income grew by approximately **$700,000**[16](index=16&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense decreased to $57.6 million, mainly due to a $1.5 million reduction in salaries and benefits, improving the efficiency ratio to 45.6% Noninterest Expense and Efficiency Ratio (Millions USD, %) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Noninterest Expense | $57.6 million | $59.1 million | $56.5 million | | Efficiency Ratio | 45.6% | 46.7% | 45.1% | - The quarter-over-quarter decrease was mainly driven by a **$1.5 million decline in salaries and benefits**, of which **$1.2 million was due to higher payroll taxes** in the first quarter[17](index=17&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) The effective tax rate for Q2 2025 was 26.50%, unchanged sequentially but lower than Q2 2024 Effective Tax Rate (%) | Period | Effective Tax Rate | | :--- | :--- | | Q2 2025 | 26.50% | | Q1 2025 | 26.50% | | Q2 2024 | 27.25% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) [Asset Composition](index=4&type=section&id=Asset%20Composition) Total assets increased by 1.03% to $15.41 billion, driven by a $202.5 million rise in cash, partially offset by declines in investments and loans Total Assets (Billions USD) | Date | Total Assets | | :--- | :--- | | June 30, 2025 | $15.41 billion | | March 31, 2025 | $15.26 billion | | June 30, 2024 | $16.15 billion | [Investment Securities](index=6&type=section&id=Investment%20Securities) The investment securities portfolio decreased to $4.81 billion, with the pre-tax net unrealized loss on AFS improving by $24.7 million Investment Securities Portfolio (Billions USD) | Security Type | June 30, 2025 Balance | | :--- | :--- | | Total Investment Securities | $4.81 billion | | Held-to-Maturity (HTM) | $2.33 billion | | Available-for-Sale (AFS) | $2.49 billion | - The pre-tax net unrealized loss on AFS securities decreased by **$24.7 million** from the end of Q1 2025[25](index=25&type=chunk) [Loans and Leases](index=6&type=section&id=Loans%20and%20Leases) Total loans and leases remained stable at $8.36 billion, with a marginal $5.1 million decrease offset by growth in commercial real estate and single-family loans Total Loans and Leases (Billions USD) | Date | Total Loans & Leases | | :--- | :--- | | June 30, 2025 | $8.36 billion | | March 31, 2025 | $8.36 billion | | June 30, 2024 | $8.68 billion | - Quarter-over-quarter loan changes included decreases of **$29.9 million in commercial and industrial loans** and **$18.1 million in dairy loans**, offset by increases of **$26.8 million in commercial real estate** and **$18.9 million in single-family residential loans**[26](index=26&type=chunk) [Asset Quality](index=6&type=section&id=Asset%20Quality) Asset quality remained strong with ACL at 0.93% of loans and nonperforming assets at 0.17% of total assets, as classified loans decreased by $20.7 million Asset Quality Metrics (%) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | ACL / Total Loans | 0.93% | 0.94% | 0.95% | | Nonperforming Assets / Total Assets | 0.17% | 0.17% | 0.16% | Classified Loans (Millions USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Classified Loans | $73.4 million | $94.2 million | $124.7 million | - Classified loans decreased by **$20.7 million** quarter-over-quarter, driven by a **$19.9 million reduction in classified commercial real estate loans**[31](index=31&type=chunk) [Deposits and Funding](index=7&type=section&id=Deposits%20and%20Funding) Total deposits and customer repurchase agreements increased by $122.9 million to $12.39 billion, with noninterest-bearing deposits at 60.47% and borrowings reduced to $500 million Deposits and Customer Repurchase Agreements (Billions USD) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Deposits & Customer Repos | $12.39 billion | $12.27 billion | | Noninterest-bearing Deposits | $7.25 billion | $7.18 billion | - Noninterest-bearing deposits constituted **60.47% of total deposits** at the end of Q2 2025, up from **59.92%** at the end of Q1 2025[33](index=33&type=chunk) - Total borrowings were **$500 million in FHLB advances**, a decrease of **$1.3 billion** from June 30, 2024, after the company redeemed all its borrowings from the Federal Reserve's Bank Term Funding Program[34](index=34&type=chunk) [Capital Adequacy](index=8&type=section&id=Capital%20Adequacy) The company's capital position remains robust, with CET1 at 16.5% and Tangible Common Equity at 10.0%, supported by $37.5 million in H1 2025 share repurchases Capital Ratios (%) | Capital Ratio | June 30, 2025 | Minimum Required + Buffer | | :--- | :--- | :--- | | Tier 1 Leverage | 11.8% | 4.0% | | Common Equity Tier 1 (CET1) | 16.5% | 7.0% | | Total Risk-Based Capital | 17.3% | 10.5% | | Tangible Common Equity | 10.0% | N/A | - In the first half of 2025, the company repurchased **2,063,564 shares of common stock** for a total of **$37.5 million**[35](index=35&type=chunk) - Tangible book value per share increased to **$10.64** at June 30, 2025[35](index=35&type=chunk) [Other Corporate Information](index=8&type=section&id=Other%20Corporate%20Information) [CitizensTrust Performance](index=8&type=section&id=CitizensTrust%20Performance) CitizensTrust reported strong results with $5.0 billion in assets under management and administration, and Q2 revenues increasing to $3.7 million - As of June 30, 2025, CitizensTrust had approximately **$5.0 billion in assets under management and administration**[38](index=38&type=chunk) CitizensTrust Revenue (Millions USD) | Period | CitizensTrust Revenue | | :--- | :--- | | Q2 2025 | $3.7 million | | Q1 2025 | $3.4 million | | Q2 2024 | $3.4 million | [Corporate Overview and Conference Call](index=8&type=section&id=Corporate%20Overview%20and%20Conference%20Call) CVB Financial Corp., a top 10 California bank holding company with over $15 billion in assets, will host a conference call on July 24, 2025 - CVBF is one of the **10 largest bank holding companies headquartered in California** with over **$15 billion in total assets**[39](index=39&type=chunk) - A conference call to discuss Q2 2025 results is scheduled for 7:30 a.m. PDT/10:30 a.m. EDT on **Thursday, July 24, 2025**[41](index=41&type=chunk) [Financial Statements and Supplementary Data](index=10&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section contains unaudited Condensed Consolidated Balance Sheets, Average Balance Sheets, and Statements of Earnings for recent periods [Selected Financial Highlights and Trends](index=13&type=section&id=Selected%20Financial%20Highlights%20and%20Trends) This section provides detailed tables covering key performance ratios, earnings trends, asset quality, loan portfolio, and deposit composition [Regulatory Capital and Non-GAAP Reconciliations](index=19&type=section&id=Regulatory%20Capital%20and%20Non-GAAP%20Reconciliations) This section presents regulatory capital ratios under Basel III and detailed reconciliations of non-GAAP financial measures to GAAP

Core Insights - CVB Financial reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, with an earnings surprise of +2.86% [1] - The company posted revenues of $126.35 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.09% [2] - CVB Financial has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once during the same period [2] Earnings Performance - The earnings report indicates a stable performance year-over-year, with earnings remaining at $0.36 per share compared to the previous year [1] - The company has shown a positive earnings surprise trend, with a +9.09% surprise in the previous quarter [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $131.3 million, and for the current fiscal year, it is $1.44 on revenues of $518.65 million [7] - The earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for assessing future stock movements [3][4] Industry Context - CVB Financial operates within the Zacks Banks - West industry, which is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of CVB Financial's stock may also be affected by the overall industry trends and the performance of peer companies, such as Bank of Hawaii, which is expected to report earnings soon [9][10]

Core Insights - CVB Financial Corp. reported net income of $50.6 million for Q2 2025, consistent with Q1 2025 and showing a slight increase from $50.0 million in Q2 2024 [2][6] - The company maintained a diluted earnings per share of $0.36 for the second quarter, unchanged from both the previous quarter and the same quarter last year [2][6] - The annualized return on average equity (ROAE) was 9.06%, while the return on average assets (ROAA) was 1.34% for the same period [3][6] Financial Performance - Net interest income for Q2 2025 was $111.6 million, a 1.1% increase from Q1 2025 and a 0.7% increase from Q2 2024 [5][8] - Noninterest income decreased to $14.7 million in Q2 2025 from $16.2 million in Q1 2025, primarily due to a one-time gain in the previous quarter [16] - Noninterest expense was $57.6 million, down from $59.1 million in Q1 2025, reflecting a decrease in salaries and benefits [17][18] Asset Quality and Loans - Total loans and leases at amortized cost were $8.36 billion, a slight decrease of $5.1 million from Q1 2025 [26] - The allowance for credit losses represented 0.93% of gross loans as of June 30, 2025, compared to 0.94% at the end of Q1 2025 [15][29] - Nonperforming loans totaled $25.97 million, accounting for 0.31% of total loans [32] Deposits and Borrowings - Total deposits and customer repurchase agreements increased to $12.39 billion, a net increase of $122.9 million from Q1 2025 [33] - Noninterest-bearing deposits were $7.25 billion, representing 60.47% of total deposits [34] - Total borrowings decreased significantly by $1.3 billion from June 30, 2024, primarily due to the redemption of Bank Term Funding Program advances [35][36] Capital and Ratios - The company's total equity increased to $2.24 billion as of June 30, 2025, with a tangible book value per share of $10.64 [37] - Capital ratios remained well above regulatory standards, with a common equity Tier 1 capital ratio of 16.5% [39] - The efficiency ratio for Q2 2025 was 45.6%, an improvement from 46.7% in Q1 2025 [18]

Core Viewpoint - CVB Financial (CVBF) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the consensus EPS estimate at $0.35, reflecting a -2.8% change from the previous year, while revenues are expected to reach $127.75 million, up 2% [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for July 23, and the stock may rise if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Potential - The Most Accurate Estimate for CVB Financial is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.13%, suggesting a likelihood of beating the consensus EPS estimate [12]. - Historical performance shows that CVB Financial has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +9.09% in the last reported quarter [13][14]. Industry Context - FS Bancorp (FSBW), another player in the Zacks Banks - West industry, is expected to report an EPS of $0.97 for the same quarter, indicating a -14.2% year-over-year change, with revenues projected at $36.5 million, up 0.6% [18]. - FS Bancorp also shows a positive Earnings ESP of +3.45% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of surpassing the consensus EPS estimate [19].