CVB Financial Corp. reported solid earnings in Q1 2025 with increased pretax income and net interest margin

From GlobeNewswire: 2025-04-23 16:45:00

CVB Financial Corp reported a net income of $51.1 million for the first quarter of 2025, with diluted earnings per share at $0.36. The return on average assets was 1.37%, and the return on average tangible common equity was 14.51%. The company also saw an annualized return on average equity of 9.31%.

Pretax income for the first quarter was $69.5 million, representing a 2% increase from the prior quarter. The net interest margin was 3.31%, up by 13 basis points from the fourth quarter of 2024. Noninterest bearing deposits grew by $147 million, while dairy and livestock loans decreased by $168 million.

Net interest income for the first quarter of 2025 was $110.4 million, essentially the same as the previous quarter, with a decrease from the first quarter of 2024. The net interest margin was 3.31%, an increase from the previous quarter. The decline in net interest income was due to a decrease in earning assets.

The net interest margin for the first quarter of 2025 was 3.31%, compared to 3.18% for the previous quarter and 3.10% for the first quarter of 2024. This increase was a result of higher interest-earning assets and lower cost of funds. Yields on investments also increased due to strategic changes made in the previous quarter. In the first quarter of 2025, outstanding loans decreased by $357 million, investment securities by $449 million, and funds at the Federal Reserve by $272 million. Noninterest-bearing deposits decreased by $109.7 million, while interest-bearing deposits and customer repurchase agreements declined by $270.9 million.

The provision for credit losses recaptured $2 million in the first quarter of 2025, with net recoveries of $130,000. Noninterest income was $16.2 million, with a gain of $2.2 million from the sale of OREO properties. Noninterest expense was $59.1 million, including a $500,000 provision for unfunded loan commitments.

The company reported total assets of $15.26 billion at March 31, 2025, an increase of $102.9 million from December 31, 2024. Total assets decreased by $1.2 billion compared to March 31, 2024. Investment securities were $4.89 billion, down 0.56% from December 31, 2024, and 7.51% from March 31, 2024.

Total loans and leases of $8.36 billion at March 31, 2025, decreased by $172.8 million from December 31, 2024. The effective tax rate for the quarter was 26.50%, compared to 25.25% in the previous quarter. Noninterest expense was $59.1 million, with an efficiency ratio of 46.69% for the quarter. CVB Financial Corp. reported a quarter-over-quarter decrease in loans, totaling $407.1 million, with decreases in various loan categories offset by an increase in commercial and industrial loans. Asset quality remained stable, with net recoveries of $130,000 and ACL as a percentage of total loans at 0.94%. Nonperforming assets decreased by $21.0 million due to a sale of OREO properties.

Deposits and customer repurchase agreements at CVB Financial Corp. increased by $55.8 million to $12.27 billion at the end of the first quarter of 2025. Noninterest-bearing deposits also saw an increase to $7.18 billion. Total borrowings decreased by $1.5 billion, and the company’s total equity reached $2.23 billion, with a tangible book value per share of $10.45.

CitizensTrust, a subsidiary of CVB Financial Corp., managed $4.7 billion in assets, with revenues of $3.4 million in the first quarter of 2025. CVB Financial Corp. is a leading bank holding company in California with over $15 billion in assets, offering banking, lending, and investing services through Citizens Business Bank. Shares are listed on the NASDAQ under “CVBF.” A conference call will be held on April 24 to discuss financial results. Citizens Business Bank will host a conference call that can be accessed live by registering on their website. The call will also be webcast on the bank’s website. The webcast will be recorded and available for replay on the website for approximately 12 months after the call. The bank cautions readers that there are risks and uncertainties involved in such forward-looking statements. The bank’s 2024 Annual Report on Form 10-K filed with the SEC contains additional factors that could affect actual results. The bank does not undertake any obligation to update forward-looking statements. CVB Financial Corp. reported total assets of $15.26 billion on March 31, 2025, with cash and cash equivalents totaling $529.09 million. The company’s net loans amounted to $8.29 billion, and total deposits reached $11.99 billion. Nonperforming assets stood at $26.13 million, with an allowance for credit losses of $78.25 million.

In the first quarter of 2025, CVB Financial Corp. recorded net earnings of $51.1 million, resulting in basic earnings per common share of $0.37 and diluted earnings per common share of $0.36. The company declared cash dividends of $0.20 per common share. Total interest income was $143 million, with net interest income before provision for credit losses at $110.44 million.

CVB Financial Corp. had a tangible common equity ratio of 10.04% on March 31, 2025. The company’s return on average assets was 1.37%, and return on average equity was 9.31% for the same period. The efficiency ratio was 46.69%, indicating effective cost management. In terms of asset quality, the company’s allowance for credit losses to nonperforming assets ratio was 299.46%.

Quarterly common stock prices for CVB Financial Corp. showed fluctuations throughout 2025, with a high of $21.71 and a low of $18.22 in March. The company’s loan portfolio by type totaled $8.36 billion, with commercial real estate loans comprising the largest portion. Deposit composition by type and customer repurchase agreements totaled $12.27 billion, with noninterest-bearing deposits at $7.18 billion. CVB Financial Corp. and Subsidiaries reported nonperforming loans of $25,636, past due loans of $718, and OREO of $495 as of March 31, 2025. Total nonperforming, past due, and OREO assets amounted to $26,849, representing 0.32% of total loans. The company also disclosed regulatory capital ratios for the same period.

The company’s Tier 1 leverage capital ratio stood at 11.8%, exceeding the minimum required plus capital conservation buffer of 4.0% as of March 31, 2025. Common equity Tier 1 capital ratio was 16.5%, Tier 1 risk-based capital ratio was 16.5%, and total risk-based capital ratio was 17.3%. Tangible common equity ratio was 10.0%.

CVB Financial Corp. provided a reconciliation of tangible book value per share, a non-GAAP disclosure, for March 31, 2025. Tangible book value per share was $10.45, calculated by subtracting goodwill and intangible assets from stockholders’ equity. The company also disclosed return on average tangible common equity, a non-GAAP metric, which was 14.51% for the first quarter of 2025.



Read more at GlobeNewswire:: CVB Financial Corp. Reports Earnings for the First Quarter