CVB Financial Corp. Reports Earnings for the First Quarter 2025

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 quarterEfficiency ratio of 46.7%Net gain of $2.2 million on sale of $19.3 million of OREO assetsNet interest margin of 3.31%, increased by 13 basis points compared to the fourth quarter of 2024Cost of funds decreased to 1.04% from 1.13% in the fourth quarter of 2024Noninterest bearing deposits grew by $147 million from the end of 2024Dairy and Livestock loans decreased by $168 million or 44% from the end of 2024Net Recoveries of $130,000 and $2 million recapture of credit lossesTCE 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 IncomeNet 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 MarginOur 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 DepositsOn 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 HIGHLIGHTSMarch 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 MixAvg % 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 IncomeNoninterest 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 ExpenseNoninterest 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 AssetsThe 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. LoansTotal 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 QualityDuring 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 TrendsMarch 31, 2025 December 31, 2024 March 31, 2024Nonperforming 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 AgreementsDeposits 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. BorrowingsAs 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. CapitalThe 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% CitizensTrustAs 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 OverviewCVB 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 HarborCertain 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. BragerPresident and Chief Executive Officer(909) 980-4030 CVB FINANCIAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(Dollars in thousands) March 31, 2025 December 31, 2024 March 31, 2024Assets 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 SUBSIDIARIESCONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS(Unaudited)(Dollars in thousands) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Assets 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)(Dollars in thousands, except per share amounts) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Interest 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 SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands, except per share amounts) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Interest 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, 2024Allowance 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 SUBSIDIARIESSELECTED 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 SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)(Dollars in thousands, except per share amounts) Quarterly Common Stock Price 2025 2024 2023 Quarter End High Low High Low High LowMarch 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 SUBSIDIARIESSELECTED 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 SUBSIDIARIESSELECTED 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 SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited) Regulatory Capital Ratios CVB Financial Corp. ConsolidatedCapital 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.

CVB Financial Corp. Reports Earnings for the First Quarter 2025

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