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1. Company Snapshot

1.a. Company Description

CVB Financial Corp.operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals.It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers.


The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit.In addition, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access.Further, the company provides trust services through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts.


As of December 31, 2021, it operated 58 banking centers located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California; and three trust offices located in Ontario, Newport Beach, and Pasadena, as well as two loan production offices in California's Central Valley and the Sacramento area.The company was founded in 1974 and is headquartered in Ontario, California.

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1.b. Last Insights on CVBF

CVB Financial Corp.'s recent performance was driven by strong Q2 2025 earnings, with net earnings of $50.6 million, or $0.36 per share. The company's efficiency ratio stood at 45.6%, and its net interest margin was 3.31%. A subsequent correction to the earnings release increased basic and diluted EPS for Q2 2025 to $0.37. The company also announced a 143rd consecutive quarterly cash dividend of $0.20 per share. Zacks upgraded CVB Financial to a Buy rating, citing growing optimism about its earnings prospects.

1.c. Company Highlights

2. CVB Financial's Q3 2025 Earnings: Steady Performance Amidst Competitive Landscape

CVB Financial Corporation reported net earnings of $52.6 million, or $0.38 per share, for the third quarter of 2025, marking its 194th consecutive quarter of profitability. The company's net interest income was $115.6 million, up $4 million from the second quarter of 2025 and $2 million from the third quarter of 2024. The net interest margin increased to 3.33% from 3.31% in the second quarter of 2025 and 3.05% in the third quarter of 2024. The earnings per share (EPS) of $0.38 beat analyst estimates of $0.37, indicating a strong quarterly performance.

Publication Date: Oct -26

📋 Highlights
  • Consecutive Profitability and Dividend Streaks: 194th consecutive quarter of profitability ($52.6M net earnings) and 144th consecutive quarter of cash dividends ($0.20/share).
  • Earnings Growth: Net earnings rose $2M from Q2 2025 and $1.4M from Q3 2024, reaching $52.6M ($0.38/share).
  • Strong Profitability Metrics: Return on average tangible common equity (ROATCE) of 14.11% and return on average assets (ROA) of 1.35%.
  • Net Interest Income and Margin Expansion: Net interest income climbed to $115.6M (+$4M QoQ, +$2M YoY), with NIM rising to 3.33% from 3.05% YoY.
  • Loan and Deposit Growth: Total loans grew to $8.47B (+5% annualized), while deposits and repurchase agreements increased to $12.6B (+$170M QoQ, +$108M YoY).

Loan and Deposit Growth

Total loans were $8.47 billion, up 5% annualized from the end of the second quarter of 2025, driven by growth in nearly all loan categories. Deposits and customer repurchase agreements totaled $12.6 billion, up $170 million from June 30, 2025, and $108 million from September 30, 2024. The company's ability to grow its loan and deposit base is a positive sign, indicating its strong presence in the market. As David Brager noted, the company is "willing to compete on price for the right relationship," which has helped drive loan growth.

Asset Quality and Capital Position

The allowance for credit losses was $79 million at September 30, 2025, or 0.94% of gross loans, indicating a stable asset quality. The company's tangible common equity ratio was 10.1% at September 30, 2025, and its common equity Tier 1 capital ratio was 16.3%, demonstrating a strong capital position. The company's return on average tangible common equity was 14.11%, and its return on average assets was 1.35%, indicating a good profitability.

Valuation and Dividend Yield

CVB Financial's Price-to-Tangible Book Value (P/TBV) can be calculated using the given P/B Ratio of 1.16. The Dividend Yield is 4.2%, which is attractive for income-seeking investors. The company's ability to maintain a stable dividend payout is supported by its consistent profitability, with 144 consecutive quarters of paying a cash dividend. With analysts estimating revenue growth at 4.3% for next year, the stock appears to be reasonably valued.

Outlook and Management's Strategy

The company's management expects low single-digit growth for the year and is closely managing expenses, with continued investment in technology. The team lift-out from a regional bank will focus on operating companies, high net worth individuals, and investor commercial real estate, expanding the company's presence in Southern California. The company's strategy to hedge against interest rate risk using $700 million of interest rate swaps demonstrates its proactive approach to managing risk.

3. NewsRoom

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Edgestream Partners L.P. Purchases Shares of 181,826 CVB Financial Corporation $CVBF

Dec -04

Source: defenseworld.net

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Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600

Nov -26

Source: seekingalpha.com

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Mutual of America Capital Management LLC Lowers Stock Position in CVB Financial Corporation $CVBF

Oct -30

Source: defenseworld.net

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CVB Financial: Earnings Outlook Remains Stable, Maintaining A Buy Rating

Oct -29

Source: seekingalpha.com

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CVB Financial Corp. Announces Appointment of New Director

Oct -23

Source: globenewswire.com

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CVB Financial Corp. (CVBF) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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CVB Financial (CVBF) Beats Q3 Earnings Estimates

Oct -22

Source: zacks.com

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CVB Financial Corp. Announces 144th Consecutive Quarterly Cash Dividend

Sep -17

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Traditional Banking

Expected Growth: 1.0%

CVB Financial Corp.'s traditional banking segment growth is driven by a 1.0% increase in loan portfolio, fueled by a strong California economy, diversified industry mix, and strategic branch expansion. Additionally, deposit growth and a stable net interest margin contribute to the segment's growth, while disciplined expense management and solid credit quality support profitability.

7. Detailed Products

Commercial Banking

CVB Financial Corp. offers a range of commercial banking services, including cash management, treasury management, and commercial lending to businesses of all sizes.

Consumer Banking

CVB Financial Corp. provides consumer banking services, including checking and savings accounts, credit cards, and personal loans to individuals.

Mortgage Banking

CVB Financial Corp. offers mortgage banking services, including residential and commercial mortgage lending, to help individuals and businesses finance their properties.

Treasury Management

CVB Financial Corp. provides treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their finances.

Wealth Management

CVB Financial Corp. offers wealth management services, including investment management, trust services, and financial planning, to help individuals and businesses achieve their financial goals.

8. CVB Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CVB Financial Corp. operates in the banking industry, which has a moderate threat of substitutes. While customers have some alternatives, such as credit unions and online banking platforms, they are not easily substitutable.

Bargaining Power Of Customers

CVB Financial Corp.'s customers have limited bargaining power due to the company's strong brand and diverse product offerings. Customers are not concentrated, and the company has a large customer base.

Bargaining Power Of Suppliers

CVB Financial Corp. has a diverse supplier base, and no single supplier has significant bargaining power. The company's suppliers are not concentrated, and the company has multiple options for sourcing.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. New entrants would face significant challenges in competing with established players like CVB Financial Corp.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. CVB Financial Corp. faces intense rivalry from other banks and financial institutions, which can lead to pricing pressure and competition for customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.02%
Debt Cost 4.02%
Equity Weight 31.98%
Equity Cost 6.30%
WACC 4.75%
Leverage 212.66%

11. Quality Control: CVB Financial Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.3

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Citizens Business Bank

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Yield: 8.0

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Volatility: 7.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.5$

Current Price

19.5$

Potential

-0.00%

Expected Cash-Flows