CVB Financial (US:CVBF)2025-05-09 18:57Financial 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]