CVB Financial Corp. Reports Earnings for the First Quarter 2025

/EIN News/ -- First Quarter 2025

• Net Earnings of $51.1 million, or $0.36 per share
• Return on Average Assets of 1.37%
• Return on Average Tangible Common Equity of 14.51%
• Net Interest Margin of 3.31%

ONTARIO, CA, April 23, 2025 (GLOBE NEWSWIRE) -- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended March 31, 2025.

CVB Financial Corp. reported net income of $51.1 million for the quarter ended March 31, 2025, compared with $50.9 million for the fourth quarter of 2024 and $48.6 million for the first quarter of 2024. Diluted earnings per share were $0.36 for the first quarter, compared to $0.36 for the prior quarter and $0.35 for the same period last year.

For the first quarter of 2025, annualized return on average equity (“ROAE”) was 9.31%, annualized return on average tangible common equity (“ROATCE”) was 14.51%, and an annualized return on average assets (“ROAA”) was 1.37%.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank’s performance in the first quarter demonstrates our continued financial strength and focus on our vision of serving the comprehensive financial needs of small to medium sized businesses and their owners. Our consistent financial performance is highlighted by our 192 consecutive quarters, or 48 years, of profitability, and our 142 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”

Highlights for the First Quarter of 2025

• Pretax income was $69.5 million, up $1.5 million or 2%, from the prior quarter
• Efficiency ratio of 46.7%
• Net gain of $2.2 million on sale of $19.3 million of OREO assets
• Net interest margin of 3.31%, increased by 13 basis points compared to the fourth quarter of 2024
• Cost of funds decreased to 1.04% from 1.13% in the fourth quarter of 2024
• Noninterest bearing deposits grew by $147 million from the end of 2024
• Dairy and Livestock loans decreased by $168 million or 44% from the end of 2024
• Net Recoveries of $130,000 and $2 million recapture of credit losses
• TCE Ratio of 10.0% & CET1 Ratio of 16.5%
  
  

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended
	March 31, 2025				December 31, 2024				March 31, 2024
	(Dollars in thousands, except per share amounts)
Net interest income	$	110,444			$	110,418			$	112,461
Recapure of (provision for) credit losses		2,000				3,000				-
Noninterest income		16,229				13,103				14,113
Noninterest expense		(59,144	)			(58,480	)			(59,771	)
Income taxes		(18,425	)			(17,183	)			(18,204	)
Net earnings	$	51,104			$	50,858			$	48,599
Earnings per common share:
Basic	$	0.37			$	0.36			$	0.35
Diluted	$	0.36			$	0.36			$	0.35
NIM		3.31	%			3.18	%			3.10	%
ROAA		1.37	%			1.30	%			1.21	%
ROAE		9.31	%			9.14	%			9.31	%
ROATCE		14.51	%			14.31	%			15.13	%
Efficiency ratio		46.69	%			47.34	%			47.22	%

Net Interest Income
Net interest income was $110.4 million for the first quarter of 2025, essentially equal to the fourth quarter of 2024, and a $2.02 million, or 1.79%, decrease from the first quarter of 2024. Compared to the prior quarter, net interest income in the first quarter of 2025 was impacted by a 13-basis point increase in net interest margin that was offset by a $405.6 million decline in earning assets.

The decline in net interest income of $2 million compared to the first quarter of 2024 was the net result of a $1.09 billion decline in earning assets partially offset by a 21-basis point increase in net interest margin. The decrease in earning assets was primarily due to the deleveraging strategy deployed in the second half of 2024, which resulted in the Company’s borrowings declining by $1.48 billion.

Net Interest Margin
Our tax equivalent net interest margin was 3.31% for the first quarter of 2025, compared to 3.18% for the fourth quarter of 2024 and 3.10% for the first quarter of 2024. The 13 basis points increase in our net interest margin compared to the fourth quarter of 2024, was the combined result of a four-basis point increase in our interest-earning assets and a nine-basis point decrease in our cost of funds, including a seven-basis point decrease in cost of deposits. The four-basis point increase in our interest-earning asset yield was primarily due to a seven-basis point increase in loan yields and a five-basis points increase in investment securities yields. We experienced an increase in yields on investments in the first quarter of 2025, as a result of the sale of lower-yielding available-for-sale (“AFS”) securities and the purchase of higher-yielding AFS securities during the fourth quarter of 2024. However, this increase in investment yields was partially offset by a decrease during the first quarter of 2025 in the positive carry on our fair value hedging instruments that pay a fixed interest rate while receiving daily SOFR.

Net interest margin for the first quarter of 2025 increased by 21-basis points compared to the first quarter of 2024, primarily as a result of 27-basis point decrease in cost of funds from 1.31% for the first quarter of 2024 to 1.04% for the first quarter of 2025. The decrease in cost of funds was primarily due to a $1.48 billion decline in borrowings, which had an average cost of 4.76% in the first quarter of 2024. For the first quarter of 2025, the Company had average borrowings of $513 million at a cost of 4.61% and average deposits and customer repos of $12.19 billion at a cost of .87%, which compares to the first quarter of 2024 in which borrowings averaged $2 billion at a cost of 4.76% and average deposits and customer repos of $11.95 billion at a cost of .73%. The decrease in cost of funds was offset by lower interest earning asset yields that declined by 6 basis points from 4.34% in the first quarter of 2024 to 4.28% in the first quarter of 2025. The lower earning asset yields included lower loan yields, which declined from 5.30% for the first quarter of 2024 to 5.22% for the first quarter of 2025.

Earning Assets and Deposits
On average, earning assets decreased by $405.6 million compared to the fourth quarter of 2024 and declined by $1.09 billion when compared to the first quarter of 2024. The decline in earning assets from the fourth quarter of 2024 was primarily a $323 million decrease in funds held at the Federal Reserve, as well as a $55 million average decline in outstanding loans. Compared to the first quarter of 2024, the average balance of outstanding loans was $357 million lower, investment securities decreased by $449.0 million and the average amount of funds held at the Federal Reserve decreased by $272.0 million. Noninterest-bearing deposits declined on average by $109.7 million, or 1.54%, from the fourth quarter of 2024 and interest-bearing deposits and customer repurchase agreements declined on average by $270.9 million. Compared to the first quarter of 2024, total deposits and customer repurchase agreements increased on average by $243.9 million, or 2.04%, including an increase of $420.2 million in interest-bearing deposits and customer repurchase agreements. On average, noninterest-bearing deposits were 59.01% of total deposits during the most recent quarter, compared to 58.74% for the fourth quarter of 2024 and 61.72% for the first quarter of 2024.

		Three Months Ended
SELECTED FINANCIAL HIGHLIGHTS		March 31, 2025						December 31, 2024						March 31, 2024
		(Dollars in thousands)
Yield on average investment securities (TE)			2.63%						2.58%						2.64%
Yield on average loans			5.22%						5.15%						5.30%
Yield on average earning assets (TE)			4.28%						4.24%						4.34%
Cost of deposits			0.86%						0.93%						0.74%
Cost of funds			1.04%						1.13%						1.31%
Net interest margin (TE)			3.31%						3.18%						3.10%
Average Earning Asset Mix		Avg			% of Total			Avg			% of Total			Avg			% of Total
	Total investment securities	$	4,908,718		36.21	%		$	4,936,514		35.36	%		$	5,357,708		36.59	%
	Interest-earning deposits with other institutions		162,389		1.20	%			485,103		3.47	%			444,101		3.03	%
	Loans		8,467,465		62.46	%			8,522,587		61.04	%			8,824,579		60.26	%
	Total interest-earning assets		13,556,584						13,962,216						14,644,400

Provision for Credit Losses
There was a $2.0 million recapture of provision for credit losses in the first quarter of 2025, compared to a $3.0 million recapture of provision for credit losses in the fourth quarter of 2024 and no provision in the first quarter of 2024. Net recoveries for the first quarter of 2025 were $130,000 compared to net recoveries of $180,000 in the prior quarter. Allowance for credit losses represented 0.94% of gross loans at March 31, 2025 and December 31, 2024.

Noninterest Income
Noninterest income was $16.2 million for the first quarter of 2025, compared with $13.1 million for the fourth quarter of 2024 and $14.1 million for the first quarter of 2024. During the first quarter of 2025, the Bank sold four OREO properties resulting in a gain of $2.2 million. Income from Bank Owned Life Insurance (“BOLI”) increased in the first quarter of 2025 by $445,000 from the fourth quarter of 2024 and decreased by $762,000 compared to the first quarter of 2024. Compared to the fourth quarter of 2024 and the first quarter of 2024, income from various equity investments increased by $750,000 and $450,000, respectively.

Noninterest Expense
Noninterest expense for the first quarter of 2025 was $59.1 million, compared to $58.5 million for the fourth quarter of 2024 and $59.8 million for the first quarter of 2024. The $664,000 quarter-over-quarter increase includes a $500,000 provision for unfunded loan commitments in the first quarter of 2025, compared to no provision or recapture of provision in the first and fourth quarter of 2024. Salaries and employee benefit costs increased $479,000, as the first quarter of each calendar year reflects higher payroll taxes than the fourth quarter of the prior year. Offsetting those quarter-over-quarter increases was a decline in legal expenses of $326,000.

The year-over-year decrease in noninterest expense of $627,000 was impacted by the higher level of assessment expense in the first quarter of 2024, in which we had an additional accrual of $2.3 million associated with the 2023 FDIC special assessment. The decline in assessment expense was offset by increases in software expenses of $696,000 and occupancy expenses of $433,000, as well as the $500,000 recapture of provision for unfunded loan commitments in the first quarter of 2025. As a percentage of average assets, noninterest expense was 1.58% for the first quarter of 2025, compared to 1.49% for the fourth quarter of 2024 and 1.48% for the first quarter of 2024. The efficiency ratio for the first quarter of 2025 was 46.69%, compared to 47.34% for the fourth quarter of 2024 and 47.22% for the first quarter of 2024.

Income Taxes
Our effective tax rate for the quarter ended March 31, 2025 was 26.50%, compared with 25.25% for the fourth quarter of 2024, and 27.25% for the same period of 2024. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHLIGHTS

Assets
The Company reported total assets of $15.26 billion at March 31, 2025. This represented an increase of $102.9 million, or 0.68%, from total assets of $15.15 billion at December 31, 2024. The increase in assets included a $290.3 million increase in interest-earning balances due from the Federal Reserve, offset by a $27.6 million decrease in investment securities, and a $170.9 million decrease in net loans.

Total assets at March 31, 2025 decreased by $1.2 billion, or 7.36%, from total assets of $16.47 billion at March 31, 2024. The decrease in assets was primarily due to a decrease of $476.5 million in interest-earning balances due from the Federal Reserve, a decrease of $397.5 million in investment securities and a $402.5 million decrease in net loans.

Investment Securities
Total investment securities were $4.89 billion at March 31, 2025, a decrease of $27.6 million, or 0.56% from December 31, 2024, and a decrease of $397.5 million, or 7.51%, from $5.29 billion at March 31, 2024.  

At March 31, 2025, investment securities held-to-maturity (“HTM”) totaled $2.36 billion, a decrease of $20.5 million, or 0.86% from December 31, 2024, and a decrease of $95.4 million, or 3.89%, from March 31, 2024.

At March 31, 2025, investment securities available-for-sale (“AFS”) totaled $2.54 billion, inclusive of a pre-tax net unrealized loss of $338.4 million. AFS securities decreased by $7.0 million, or 0.28% from December 31, 2024 and decreased by $302.0 million, or 10.65%, from $2.84 billion at March 31, 2024. The pre-tax unrealized loss decreased by $58.9 million from December 31, 2024 and decreased by $97.2 million from March 31, 2024.

Loans
Total loans and leases, at amortized cost, of $8.36 billion at March 31, 2025 decreased by $172.8 million, or 2.02%, from December 31, 2024. The quarter-over quarter decrease in loans included decreases of $16.8 million in commercial real estate loans and $167.8 million in dairy & livestock loans, partially offset by an increase of $17.1 million in commercial and industrial loans.

Total loans and leases, at amortized cost, decreased by $407.1 million, or 4.64%, from March 31, 2024. The $407.1 million decrease included decreases of $229.9 million in commercial real estate loans, $43.1 million in construction loans, $20.8 million in commercial and industrial loans, $99.1 million in dairy & livestock and agribusiness loans, $6.8 million in municipal lease financings, and $7.0 million in SFR mortgage loans.

Asset Quality
During the first quarter of 2025, we experienced credit charge-offs of $40,000 and total recoveries of $170,000, resulting in net recoveries of $130,000. The allowance for credit losses (“ACL”) totaled $78.3 million at March 31, 2025, compared to $80.1 million at December 31, 2024 and $82.8 million at March 31, 2024. At March 31, 2025, ACL as a percentage of total loans and leases outstanding was 0.94%. This compares to 0.94% and 0.94% at December 31, 2024 and March 31, 2024, respectively.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

Nonperforming Assets and Delinquency Trends		March 31, 2025				December 31, 2024				March 31, 2024
Nonperforming loans		(Dollars in thousands)
Commercial real estate		$	24,379			$	25,866			$	10,661
SBA			1,024				1,529				54
Commercial and industrial			173				340				2,727
Dairy & livestock and agribusiness			60				60				60
SFR mortgage			-				-				308
Consumer and other loans			-				-				-
Total		$	25,636			$	27,795			$	13,810
% of Total loans			0.31	%			0.33	%			0.16	%
OREO
Commercial real estate		$	495			$	18,656			$	-
Commercial and industrial			-				-				647
SFR mortgage			-				647				-
Total		$	495			$	19,303			$	647
Total nonperforming assets		$	26,131			$	47,098			$	14,457
% of Nonperforming assets to total assets			0.17	%			0.31	%			0.09	%
Past due 30-89 days (accruing)
Commercial real estate		$	-			$	-			$	19,781
SBA			718				88				408
Commercial and industrial			-				399				6
Dairy & livestock and agribusiness			-				-				-
SFR mortgage			-				-				-
Consumer and other loans			-				-				-
Total		$	718			$	487			$	20,195
% of Total loans			0.01	%			0.01	%			0.23	%
Total nonperforming, OREO, and past due		$	26,849			$	47,585			$	34,652
Classified Loans		$	94,169			$	89,549			$	103,080

The $21.0 million decrease in nonperforming assets from December 31, 2024 was primarily due to the sale of $19.3 million of OREO at a net gain of $2.2 million during the first quarter of 2025. Classified loans are loans that are graded “substandard” or worse. Classified loans increased $4.6 million quarter-over-quarter, primarily due to increases of $6.5 million in classified dairy and livestock loans.

Deposits & Customer Repurchase Agreements
Deposits of $12.0 billion and customer repurchase agreements of $276.2 million totaled $12.27 billion at March 31, 2025. This represented a net increase of $55.8 million compared to December 31, 2024. Total deposits and customer repurchase agreements increased $95.4 million, or .78% when compared to $12.17 billion at March 31, 2024.

Noninterest-bearing deposits were $7.18 billion at March 31, 2025, an increase of $147.2 million, or 2.09%, when compared to $7.04 billion at December 31, 2024. Noninterest-bearing deposits increased by $71.5 million, or 1.00% when compared to $7.11 billion at March 31, 2024. At March 31, 2025, noninterest-bearing deposits were 59.92% of total deposits, compared to 58.90% at December 31, 2024 and 59.80% at
March 31, 2024.

Borrowings
As of March 31, 2025, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include maturities of $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. Total borrowings decreased by $1.5 billion from March 31, 2024. The $2.0 billion of borrowings at March 31, 2024 consisted of one-year advances from the Federal Reserve’s Bank Term Funding Program, at an average cost of approximately 4.75%, all of which were redeemed before the end of 2024.

Capital
The Company’s total equity was $2.23 billion at March 31, 2025. This represented an overall increase of $42.1 million from total equity of $2.19 billion at December 31, 2024. Increases to equity included $51.1 million in net earnings and a $34.8 million increase in other comprehensive income that were partially offset by $27.9 million in cash dividends. During the first quarter of 2025, we repurchased, under our stock repurchase plan, 782,063 shares of common stock, at an average repurchase price of $19.55, totaling $15.3 million.   Our tangible book value per share at March 31, 2025 was $10.45.

Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

				CVB Financial Corp. Consolidated
Capital Ratios		Minimum Required Plus Capital Conservation Buffer		March 31, 2025		December 31, 2024		March 31, 2024
Tier 1 leverage capital ratio		4.0%		11.8%		11.5%		10.5%
Common equity Tier 1 capital ratio		7.0%		16.5%		16.2%		14.9%
Tier 1 risk-based capital ratio		8.5%		16.5%		16.2%		14.9%
Total risk-based capital ratio		10.5%		17.3%		17.1%		15.8%
Tangible common equity ratio				10.0%		9.8%		8.3%

CitizensTrust
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. Revenues were $3.4 million for the first quarter of 2025, compared to $3.5 million in the fourth quarter of 2024 and $3.2 million for the first quarter of 2024. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

Corporate Overview
CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

Conference Call

Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, April 24, 2025, to discuss the Company’s first quarter 2025 financial results. The conference call can be accessed live by registering at: https://register-conf.media-server.com/register/BI643a97d119af4b899539fee84f093408

The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

Safe Harbor
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, the impact of monetary, fiscal and trade policies, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, immigration, trade, tariff, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target and key personnel into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the transition away from USD LIBOR and uncertainties regarding potential alternative reference rates, including SOFR; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state in employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2024 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

Contact:
David A. Brager
President and Chief Executive Officer
(909) 980-4030

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
		March 31, 2025				December 31, 2024				March 31, 2024
Assets
Cash and due from banks		$	187,981			$	153,875			$	131,955
Interest-earning balances due from Federal Reserve			341,108				50,823				817,634
Total cash and cash equivalents			529,089				204,698				949,589
Interest-earning balances due from depository institutions			3,451				480				12,632
Investment securities available-for-sale			2,535,066				2,542,115				2,837,100
Investment securities held-to-maturity			2,359,141				2,379,668				2,454,586
Total investment securities			4,894,207				4,921,783				5,291,686
Investment in stock of Federal Home Loan Bank (FHLB)			18,012				18,012				18,012
Loans and lease finance receivables			8,363,632				8,536,432				8,770,713
Allowance for credit losses			(78,252	)			(80,122	)			(82,817	)
Net loans and lease finance receivables			8,285,380				8,456,310				8,687,896
Premises and equipment, net			26,772				27,543				43,448
Bank owned life insurance (BOLI)			318,301				316,248				310,744
Intangibles			8,812				9,967				13,853
Goodwill			765,822				765,822				765,822
Other assets			406,745				432,792				374,464
Total assets		$	15,256,591			$	15,153,655			$	16,468,146
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing		$	7,184,267			$	7,037,096			$	7,112,789
Investment checking			533,220				551,305				545,066
Savings and money market			3,710,612				3,786,387				3,561,512
Time deposits			561,822				573,593				675,554
Total deposits			11,989,921				11,948,381				11,894,921
Customer repurchase agreements			276,163				261,887				275,720
Other borrowings			500,000				500,000				1,995,000
Other liabilities			262,088				257,071				215,680
Total liabilities			13,028,172				12,967,339				14,381,321
Stockholders' Equity
Stockholders' equity			2,505,719				2,498,380				2,422,110
Accumulated other comprehensive loss, net of tax			(277,300	)			(312,064	)			(335,285	)
Total stockholders' equity			2,228,419				2,186,316				2,086,825
Total liabilities and stockholders' equity		$	15,256,591			$	15,153,655			$	16,468,146

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
		Three Months Ended
		March 31, 2025				December 31, 2024				March 31, 2024
Assets
Cash and due from banks		$	154,328			$	152,966			$	162,049
Interest-earning balances due from Federal Reserve			161,432				484,038				433,421
Total cash and cash equivalents			315,760				637,004				595,470
Interest-earning balances due from depository institutions			957				1,065				10,680
Investment securities available-for-sale			2,539,211				2,542,649				2,900,097
Investment securities held-to-maturity			2,369,507				2,393,865				2,457,611
Total investment securities			4,908,718				4,936,514				5,357,708
Investment in stock of FHLB			18,012				18,012				18,012
Loans and lease finance receivables			8,467,465				8,522,587				8,824,579
Allowance for credit losses			(80,113	)			(82,960	)			(85,751	)
Net loans and lease finance receivables			8,387,352				8,439,627				8,738,828
Premises and equipment, net			27,408				29,959				44,380
Bank owned life insurance (BOLI)			316,643				316,938				309,609
Intangibles			9,518				10,650				14,585
Goodwill			765,822				765,822				765,822
Other assets			419,116				406,898				350,319
Total assets		$	15,169,306			$	15,562,489			$	16,205,413
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing		$	7,006,357			$	7,116,050			$	7,182,718
Interest-bearing			4,866,318				4,998,424				4,454,135
Total deposits			11,872,675				12,114,474				11,636,853
Customer repurchase agreements			317,322				456,145				309,272
Other borrowings			513,078				500,000				1,991,978
Other liabilities			239,283				278,314				168,442
Total liabilities			12,942,358				13,348,933				14,106,545
Stockholders' Equity
Stockholders' equity			2,523,923				2,507,060				2,432,075
Accumulated other comprehensive loss, net of tax			(296,975	)			(293,504	)			(333,207	)
Total stockholders' equity			2,226,948				2,213,556				2,098,868
Total liabilities and stockholders' equity		$	15,169,306			$	15,562,489			$	16,205,413

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)
		Three Months Ended
		March 31, 2025				December 31, 2024				March 31, 2024
Interest income:
Loans and leases, including fees		$	109,071			$	110,277			$	116,349
Investment securities:
Investment securities available-for-sale			18,734				18,041				21,446
Investment securities held-to-maturity			13,021				13,020				13,402
Total investment income			31,755				31,061				34,848
Dividends from FHLB stock			379				380				419
Interest-earning deposits with other institutions			1,797				5,881				6,073
Total interest income			143,002				147,599				157,689
Interest expense:
Deposits			25,322				28,317				21,366
Borrowings and customer repurchase agreements			6,800				8,291				23,862
Other			436				573				-
Total interest expense			32,558				37,181				45,228
Net interest income before (recapture of) provision for credit losses			110,444				110,418				112,461
(Recapture of) provision for credit losses			(2,000	)			(3,000	)			-
Net interest income after (recapture of) provision for credit losses			112,444				113,418				112,461
Noninterest income:
Service charges on deposit accounts			4,908				5,097				5,036
Trust and investment services			3,411				3,512				3,224
Loss on sale of AFS investment securities			-				(16,735	)			-
Gain on OREO, net			2,183				-				-
Gain on sale leaseback transactions			-				16,794				-
Other			5,727				4,435				5,853
Total noninterest income			16,229				13,103				14,113
Noninterest expense:										.
Salaries and employee benefits			36,477				35,998				36,401
Occupancy and equipment			5,998				5,866				5,565
Professional services			2,081				2,646				2,255
Computer software expense			4,221				3,921				3,525
Marketing and promotion			1,988				1,757				1,630
Amortization of intangible assets			1,155				1,163				1,438
Provision for unfunded loan commitments			500				-				-
Other			6,724				7,129				8,957
Total noninterest expense			59,144				58,480				59,771
Earnings before income taxes			69,529				68,041				66,803
Income taxes			18,425				17,183				18,204
Net earnings		$	51,104			$	50,858			$	48,599
Basic earnings per common share		$	0.37			$	0.36			$	0.35
Diluted earnings per common share		$	0.36			$	0.36			$	0.35
Cash dividends declared per common share		$	0.20			$	0.20			$	0.20

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
		Three Months Ended
		March 31, 2025				December 31, 2024				March 31, 2024
Interest income - tax equivalent (TE)		$	143,525			$	148,128			$	158,228
Interest expense			32,558				37,181				45,228
Net interest income - (TE)		$	110,967			$	110,947			$	113,000
Return on average assets, annualized			1.37	%			1.30	%			1.21	%
Return on average equity, annualized			9.31	%			9.14	%			9.31	%
Efficiency ratio [1]			46.69	%			47.34	%			47.22	%
Noninterest expense to average assets, annualized			1.58	%			1.49	%			1.48	%
Yield on average loans			5.22	%			5.15	%			5.30	%
Yield on average earning assets (TE)			4.28	%			4.24	%			4.34	%
Cost of deposits			0.86	%			0.93	%			0.74	%
Cost of deposits and customer repurchase agreements			0.87	%			0.97	%			0.73	%
Cost of funds			1.04	%			1.13	%			1.31	%
Net interest margin (TE)			3.31	%			3.18	%			3.10	%
[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.
Tangible Common Equity Ratio (TCE) [2]
CVB Financial Corp. Consolidated			10.04	%			9.81	%			8.33	%
Citizens Business Bank			9.92	%			9.64	%			8.23	%
[2] (Capital - [GW+Intangibles])/(Total Assets - [GW+Intangibles])
Weighted average shares outstanding
Basic			138,973,996				138,661,665				138,428,596
Diluted			139,294,401				139,102,524				138,603,324
Dividends declared		$	27,853			$	27,978			$	27,886
Dividend payout ratio [3]			54.50	%			55.01	%			57.38	%
[3] Dividends declared on common stock divided by net earnings.
Number of shares outstanding - (end of period)			139,089,612				139,689,686				139,641,884
Book value per share		$	16.02			$	15.65			$	14.94
Tangible book value per share		$	10.45			$	10.10			$	9.36
		March 31, 2025				December 31, 2024				March 31, 2024
Nonperforming assets:
Nonaccrual loans		$	25,636			$	27,795			$	13,810
Other real estate owned (OREO), net			495				19,303				647
Total nonperforming assets		$	26,131			$	47,098			$	14,457
Modified loans/performing troubled debt restructured loans (TDR) [4]		$	11,949			$	6,467			$	10,765
[4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.
Percentage of nonperforming assets to total loans outstanding and OREO			0.31	%			0.55	%			0.16	%
Percentage of nonperforming assets to total assets			0.17	%			0.31	%			0.09	%
Allowance for credit losses to nonperforming assets			299.46	%			170.12	%			572.85	%
		Three Months Ended
		March 31, 2025				December 31, 2024				March 31, 2024
Allowance for credit losses:
Beginning balance		$	80,122			$	82,942			$	86,842
Total charge-offs			(40	)			(64	)			(4,267	)
Total recoveries on loans previously charged-off			170				244				242
Net recoveries (charge-offs)			130				180				(4,025	)
(Recapture of) provision for credit losses			(2,000	)			(3,000	)			-
Allowance for credit losses at end of period		$	78,252			$	80,122			$	82,817
Net recoveries (charge-offs) to average loans			0.002	%			0.002	%			-0.046	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in millions)
Allowance for Credit Losses by Loan Type
		March 31, 2025								December 31, 2024								March 31, 2024
		Allowance For Credit Losses				Allowance as a % of Total Loans by Respective Loan Type				Allowance For Credit Losses				Allowance as a % of Total Loans by Respective Loan Type				Allowance For Credit Losses				Allowance as a % of Total Loans by Respective Loan Type
Commercial real estate		$	65.3				1.01	%		$	66.2				1.02	%		$	69.4				1.03	%
Construction			0.2				1.52	%			0.3				1.94	%			1.3				2.20	%
SBA			2.6				0.96	%			2.6				0.96	%			2.5				0.94	%
Commercial and industrial			6.1				0.65	%			6.1				0.66	%			5.1				0.53	%
Dairy & livestock and agribusiness			2.8				1.12	%			3.6				0.86	%			3.3				0.92	%
Municipal lease finance receivables			0.2				0.32	%			0.2				0.31	%			0.2				0.27	%
SFR mortgage			0.5				0.16	%			0.5				0.16	%			0.5				0.17	%
Consumer and other loans			0.6				0.94	%			0.6				1.04	%			0.5				0.97	%
Total		$	78.3				0.94	%		$	80.1				0.94	%		$	82.8				0.94	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
Quarterly Common Stock Price
			2025								2024								2023
Quarter End		High				Low				High				Low				High				Low
March 31,		$	21.71			$	18.22			$	20.45			$	15.95			$	25.98			$	16.34
June 30,		$	-			$	-			$	17.91			$	15.71			$	16.89			$	10.66
September 30,		$	-			$	-			$	20.29			$	16.08			$	19.66			$	12.89
December 31,		$	-			$	-			$	24.58			$	17.20			$	21.77			$	14.62
Quarterly Consolidated Statements of Earnings
						Q1				Q4				Q3				Q2				Q1
							2025				2024				2024				2024				2024
Interest income
Loans and leases, including fees						$	109,071			$	110,277			$	114,929			$	114,200			$	116,349
Investment securities and other							33,931				37,322				50,823				44,872				41,340
Total interest income							143,002				147,599				165,752				159,072				157,689
Interest expense
Deposits							25,322				28,317				29,821				25,979				21,366
Borrowings and customer repurchase agreements							6,800				8,291				22,312				22,244				23,862
Other							436				573				-				-				-
Total interest expense							32,558				37,181				52,133				48,223				45,228
Net interest income before (recapture of)
provision for credit losses							110,444				110,418				113,619				110,849				112,461
(Recapture of) provision for credit losses							(2,000	)			(3,000	)			-				-				-
Net interest income after (recapture of)
provision for credit losses							112,444				113,418				113,619				110,849				112,461
Noninterest income							16,229				13,103				12,834				14,424				14,113
Noninterest expense							59,144				58,480				58,835				56,497				59,771
Earnings before income taxes							69,529				68,041				67,618				68,776				66,803
Income taxes							18,425				17,183				16,394				18,741				18,204
Net earnings						$	51,104			$	50,858			$	51,224			$	50,035			$	48,599
Effective tax rate							26.50	%			25.25	%			24.25	%			27.25	%			27.25	%
Basic earnings per common share						$	0.37			$	0.36			$	0.37			$	0.36			$	0.35
Diluted earnings per common share						$	0.36			$	0.36			$	0.37			$	0.36			$	0.35
Cash dividends declared per common share						$	0.20			$	0.20			$	0.20			$	0.20			$	0.20
Cash dividends declared						$	27,853			$	27,978			$	27,977			$	28,018			$	27,886

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
Loan Portfolio by Type
		March 31,				December 31,				September 30,				June 30,				March 31,
			2025				2024				2024				2024				2024
Commercial real estate		$	6,490,604			$	6,507,452			$	6,618,637			$	6,664,925			$	6,720,538
Construction			15,706				16,082				14,755				52,227				58,806
SBA			271,844				273,013				272,001				267,938				268,320
SBA - PPP			179				774				1,255				1,757				2,249
Commercial and industrial			942,301				925,178				936,489				956,184				963,120
Dairy & livestock and agribusiness			252,532				419,904				342,445				350,562				351,624
Municipal lease finance receivables			65,203				66,114				67,585				70,889				72,032
SFR mortgage			269,493				269,172				267,181				267,593				276,475
Consumer and other loans			55,770				58,743				52,217				49,771				57,549
Gross loans, at amortized cost			8,363,632				8,536,432				8,572,565				8,681,846				8,770,713
Allowance for credit losses			(78,252	)			(80,122	)			(82,942	)			(82,786	)			(82,817	)
Net loans		$	8,285,380			$	8,456,310			$	8,489,623			$	8,599,060			$	8,687,896
Deposit Composition by Type and Customer Repurchase Agreements
		March 31,				December 31,				September 30,				June 30,				March 31,
			2025				2024				2024				2024				2024
Noninterest-bearing		$	7,184,267			$	7,037,096			$	7,136,824			$	7,090,095			$	7,112,789
Investment checking			533,220				551,305				504,028				515,930				545,066
Savings and money market			3,710,612				3,786,387				3,745,707				3,409,320				3,561,512
Time deposits			561,822				573,593				685,930				774,980				675,554
Total deposits			11,989,921				11,948,381				12,072,489				11,790,325				11,894,921
Customer repurchase agreements			276,163				261,887				394,515				268,826				275,720
Total deposits and customer repurchase agreements		$	12,266,084			$	12,210,268			$	12,467,004			$	12,059,151			$	12,170,641

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
Nonperforming Assets and Delinquency Trends
		March 31,				December 31,				September 30,				June 30,				March 31,
			2025				2024				2024				2024				2024
Nonperforming loans:
Commercial real estate		$	24,379			$	25,866			$	18,794			$	21,908			$	10,661
Construction			-				-				-				-				-
SBA			1,024				1,529				151				337				54
Commercial and industrial			173				340				2,825				2,712				2,727
Dairy & livestock and agribusiness			60				60				143				-				60
SFR mortgage			-				-				-				-				308
Consumer and other loans			-				-				-				-				-
Total		$	25,636			$	27,795			$	21,913			$	24,957			$	13,810
% of Total loans			0.31	%			0.33	%			0.26	%			0.29	%			0.16	%
Past due 30-89 days (accruing):
Commercial real estate		$	-			$	-			$	30,701			$	43			$	19,781
Construction			-				-				-				-				-
SBA			718				88				-				-				408
Commercial and industrial			-				399				64				103				6
Dairy & livestock and agribusiness			-				-				-				-				-
SFR mortgage			-				-				-				-				-
Consumer and other loans			-				-				-				-				-
Total		$	718			$	487			$	30,765			$	146			$	20,195
% of Total loans			0.01	%			0.01	%			0.36	%			0.00	%			0.23	%
OREO:
Commercial real estate		$	495			$	18,656			$	-			$	-			$	-
SBA			-				-				-				-				-
Commercial and industrial			-				-				-				-				-
SFR mortgage			-				647				647				647				647
Total		$	495			$	19,303			$	647			$	647			$	647
Total nonperforming, past due, and OREO		$	26,849			$	47,585			$	53,325			$	25,750			$	34,652
% of Total loans			0.32	%			0.56	%			0.62	%			0.30	%			0.40	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
Regulatory Capital Ratios
						CVB Financial Corp. Consolidated
Capital Ratios		Minimum Required Plus Capital Conservation Buffer				March 31, 2025				December 31, 2024				March 31, 2024
Tier 1 leverage capital ratio			4.0	%			11.8	%			11.5	%			10.5	%
Common equity Tier 1 capital ratio			7.0	%			16.5	%			16.2	%			14.9	%
Tier 1 risk-based capital ratio			8.5	%			16.5	%			16.2	%			14.9	%
Total risk-based capital ratio			10.5	%			17.3	%			17.1	%			15.8	%
Tangible common equity ratio							10.0	%			9.8	%			8.3	%

Tangible Book Value Reconciliations (Non-GAAP)
The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of tangible book value to the Company stockholders' equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of March 31, 2025, December 31, 2024 and March 31, 2024.
		March 31, 2025				December 31, 2024				March 31, 2024
		(Dollars in thousands, except per share amounts)
Stockholders' equity	$	2,228,419			$	2,186,316			$	2,086,825
Less: Goodwill		(765,822	)			(765,822	)			(765,822	)
Less: Intangible assets		(8,812	)			(9,967	)			(13,853	)
Tangible book value	$	1,453,785			$	1,410,527			$	1,307,150
Common shares issued and outstanding		139,089,612				139,689,686				139,641,884
Tangible book value per share	$	10.45			$	10.10			$	9.36

 

Return on Average Tangible Common Equity Reconciliations (Non-GAAP)
The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.
		Three Months Ended
			March 31,				December 31,				March 31,
			2025				2024				2024
		(Dollars in thousands)
Net Income		$	51,104			$	50,858			$	48,599
Add: Amortization of intangible assets			1,155				1,163				1,438
Less: Tax effect of amortization of intangible assets (1)			(341	)			(344	)			(425	)
Tangible net income		$	51,918			$	51,677			$	49,612
Average stockholders' equity		$	2,226,948			$	2,213,556			$	2,098,868
Less: Average goodwill			(765,822	)			(765,822	)			(765,822	)
Less: Average intangible assets			(9,518	)			(10,650	)			(14,585	)
Average tangible common equity		$	1,451,608			$	1,437,084			$	1,318,461
Return on average equity, annualized (2)			9.31	%			9.14	%			9.31	%
Return on average tangible common equity, annualized (2)			14.51	%			14.31	%			15.13	%
(1) Tax effected at respective statutory rates.
(2) Annualized where applicable.