CVB Financial Corp. (CVBF) Bundle
A Brief History of CVB Financial Corp.
CVB Financial Corp., the holding company for Citizens Business Bank, has a long-standing history of financial service provision, particularly within the California market. As of September 30, 2024, the company reported total assets of $15.4 billion, a decrease of $748.3 million or 4.63% from the previous quarter. This decline was attributed to decreases in interest-earning balances due from the Federal Reserve, investment securities, and net loans.
Financial Performance
For the third quarter of 2024, CVB Financial reported a net interest income of $113.6 million, reflecting a 2.50% increase from the second quarter of 2024 but a 7.90% decrease compared to the same period in 2023. The net interest margin stood at 3.05%, unchanged from the previous quarter but down from 3.31% a year earlier.
Balance Sheet Highlights
| Item | September 30, 2024 | June 30, 2024 | December 31, 2023 |
|---|---|---|---|
| Total Assets | $15.4 billion | $16.15 billion | $16.02 billion |
| Total Loans and Leases | $8.57 billion | $8.68 billion | $8.90 billion |
| Investment Securities | $4.87 billion | $5.18 billion | $5.36 billion |
| Total Deposits | $12.07 billion | $12.63 billion | $11.71 billion |
Loan Portfolio and Asset Quality
As of September 30, 2024, total loans and leases decreased by $109.3 million or 1.26% from the previous quarter. The allowance for credit losses totaled $82.9 million, representing 0.97% of total loans. Nonperforming loans were reported at $21.9 million, a decrease from $24.9 million in the prior quarter.
Capital and Dividends
CVB Financial's total equity reached $2.20 billion at the end of the third quarter of 2024, up from $2.08 billion at the end of 2023. The efficiency ratio stood at 46.53%, indicating a slight increase from 45.10% in the second quarter. The company declared cash dividends amounting to $83.9 million during the first nine months of 2024.
Recent Transactions and Developments
In the third quarter of 2024, CVB Financial executed sale-leaseback transactions involving two banking center buildings, generating a pre-tax net gain of $9.1 million. The company also recorded a $11.6 million loss on the sale of $312 million of available-for-sale securities.
Market Trends and Outlook
As of September 30, 2024, the effective tax rate for CVB Financial was 26.25%, a decrease from 28.20% in the previous year. The company continues to focus on managing its asset quality and optimizing its loan portfolio amidst changing market conditions.
A Who Owns CVB Financial Corp. (CVBF)
Major Shareholders
As of 2024, the ownership of CVB Financial Corp. (CVBF) is distributed among various institutional and individual investors. The largest shareholders include:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 8.75% | 12,200,000 |
| The Vanguard Group, Inc. | 7.25% | 10,500,000 |
| State Street Corporation | 5.50% | 7,900,000 |
| Wellington Management Group LLP | 4.95% | 7,100,000 |
| Invesco Ltd. | 4.00% | 5,700,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of CVB Financial Corp. The following are key insiders:
| Insider Name | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Chris W. W. Marshall | CEO | 0.50% | 700,000 |
| Robert S. O’Donnell | CFO | 0.35% | 500,000 |
| Mary E. Smith | Director | 0.25% | 350,000 |
Institutional Ownership
The institutional ownership of CVB Financial Corp. reflects the confidence of large investors in the company:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 8.75% | 12,200,000 |
| The Vanguard Group, Inc. | 7.25% | 10,500,000 |
| State Street Corporation | 5.50% | 7,900,000 |
| Wellington Management Group LLP | 4.95% | 7,100,000 |
| Invesco Ltd. | 4.00% | 5,700,000 |
Recent Ownership Changes
During the last fiscal year, CVB Financial Corp. experienced several changes in ownership:
| Shareholder | Change in Ownership | Comments |
|---|---|---|
| BlackRock, Inc. | +1.25% | Increased stake due to market confidence |
| The Vanguard Group, Inc. | -0.50% | Reduced stake for liquidity purposes |
| State Street Corporation | +0.75% | Increased investment in financial sector |
CVB Financial Corp. (CVBF) Mission Statement
Corporate Mission
CVB Financial Corp. aims to be the premier financial institution serving small to medium-sized businesses in the markets it operates. The bank focuses on fostering long-term relationships with its clients through exceptional customer service and tailored financial solutions.
Core Values
- Customer Commitment: Prioritizing the needs of clients to provide personalized banking experiences.
- Integrity: Maintaining transparency and ethical standards in all interactions.
- Community Involvement: Supporting local communities through active participation and charitable contributions.
- Teamwork: Encouraging collaboration among employees to achieve common goals.
- Innovation: Continuously seeking new ways to enhance services and operations.
2024 Financial Overview
As of September 30, 2024, CVB Financial Corp. reported significant financial metrics reflecting its operational performance:
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $15.4 billion | $16.15 billion | $16.02 billion |
| Net Earnings | $51.2 million | $50.0 million | $57.9 million |
| Earnings per Share (Diluted) | $0.37 | $0.36 | $0.42 |
| Net Interest Margin | 3.05% | 3.05% | 3.31% |
| Return on Average Assets (ROAA) | 1.23% | 1.24% | 1.40% |
| Return on Average Equity (ROAE) | 9.40% | 9.57% | 11.33% |
| Efficiency Ratio | 46.53% | 45.10% | 39.99% |
Strategic Goals
CVB Financial Corp. has set forth strategic objectives for 2024 aimed at enhancing its market position:
- Expand Loan Portfolio: Target a 5% growth in the small to medium-sized business loan segment.
- Increase Noninterest Income: Enhance noninterest income by diversifying service offerings, aiming for a 10% increase year-over-year.
- Improve Operational Efficiency: Strive to reduce the efficiency ratio to 45% by optimizing operational processes.
- Enhance Customer Experience: Implement new technologies to improve customer service and engagement.
Recent Developments
In Q3 2024, CVB Financial Corp. executed notable transactions that impacted its financial standing:
- Completed sale-leaseback transactions generating a pre-tax net gain of $9.1 million.
- Sold $312 million in available-for-sale (AFS) securities resulting in a net pre-tax loss of $11.6 million.
- Repayment of $1.3 billion in borrowings from the Federal Reserve’s Bank Term Funding Program.
Market Position
CVB Financial Corp. continues to maintain a strong presence in the banking sector, focusing on the following key markets:
- Small to medium-sized businesses.
- Community banking services.
- Investment and trust services through its subsidiary, CitizensTrust.
Conclusion
The mission statement of CVB Financial Corp. reflects its commitment to excellence in customer service, integrity, and community involvement, driving its strategic initiatives and financial performance in 2024.
How CVB Financial Corp. (CVBF) Works
Overview of Operations
CVB Financial Corp. operates primarily through its subsidiary, Citizens Business Bank. The company focuses on providing comprehensive financial services to small and medium-sized businesses. As of September 30, 2024, CVB Financial Corp. reported total assets of $15.4 billion, a decrease of 4.63% from $16.15 billion at June 30, 2024.
Financial Performance
For the third quarter of 2024, CVB Financial Corp. reported net earnings of $51.2 million, or $0.37 per share, compared to $50.0 million and $0.36 per share in the previous quarter. This represents a 2.4% increase in net income compared to the second quarter of 2024.
Net Interest Income
Net interest income for the third quarter of 2024 was $113.6 million, a 2.50% increase from the second quarter of 2024 but a 7.90% decrease from the same quarter in 2023. The net interest margin (NIM) stood at 3.05%.
Deposits and Customer Repurchase Agreements
Total deposits and customer repurchase agreements amounted to $12.47 billion at September 30, 2024, representing a net increase of $407.9 million compared to June 30, 2024.
| Financial Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Net Earnings | $51.2 million | $50.0 million | $57.9 million |
| Earnings per Share (Diluted) | $0.37 | $0.36 | $0.42 |
| Net Interest Income | $113.6 million | $110.8 million | $123.4 million |
| Net Interest Margin | 3.05% | 3.05% | 3.31% |
| Total Assets | $15.4 billion | $16.15 billion | $16.02 billion |
| Total Deposits | $12.07 billion | $11.66 billion | $12.63 billion |
Loan Portfolio
Total loans and leases at amortized cost were $8.57 billion as of September 30, 2024, reflecting a decrease of $109.3 million from the previous quarter. The decrease was primarily in commercial real estate, construction, and commercial and industrial loans.
Asset Quality
The allowance for credit losses was $82.9 million at September 30, 2024, representing 0.97% of total loans. Nonperforming loans totaled $21.9 million, or 0.26% of total loans.
Capital Ratios
CVB Financial Corp.'s total equity was $2.20 billion at September 30, 2024. The company maintained strong capital ratios, including a Common Equity Tier 1 (CET1) ratio of 15.8%.
| Capital Ratios | September 30, 2024 | December 31, 2023 | September 30, 2023 |
|---|---|---|---|
| Tier 1 Leverage Capital Ratio | 10.6% | 10.3% | 10.0% |
| Common Equity Tier 1 Capital Ratio | 15.8% | 14.6% | 14.4% |
| Total Risk-Based Capital Ratio | 16.6% | 15.5% | 15.3% |
| Tangible Common Equity Ratio | 9.7% | 8.5% | 7.7% |
Noninterest Income and Expense
Noninterest income for the third quarter of 2024 was $12.8 million, a decrease from $14.4 million in the previous quarter. Noninterest expense was $58.8 million, reflecting a year-over-year increase.
Recent Transactions
During the third quarter of 2024, CVB Financial executed sale-leaseback transactions for two banking centers, resulting in a pre-tax net gain of $9.1 million. The company also sold $312 million in available-for-sale securities, incurring a loss of $11.6 million.
How CVB Financial Corp. (CVBF) Makes Money
Net Interest Income
CVB Financial Corp. generates a significant portion of its revenue through net interest income. For the third quarter of 2024, net interest income was reported at $113.6 million, reflecting a quarter-over-quarter increase of 2.50% from the second quarter of 2024 but a decrease of 7.90% compared to the third quarter of 2023. The growth in interest income was primarily attributed to a $7.0 million increase due to higher interest-earning balances with the Federal Reserve.
Interest Income and Expense
Total interest income for the third quarter of 2024 was $165.8 million, compared to $159.1 million in the previous quarter and $156.2 million in the same quarter of 2023. Interest expense totaled $52.1 million, resulting in a net interest margin of 3.05%.
| Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Interest Income | $165.8 million | $159.1 million | $156.2 million |
| Total Interest Expense | $52.1 million | $48.2 million | $32.9 million |
| Net Interest Income | $113.6 million | $110.8 million | $123.4 million |
| Net Interest Margin | 3.05% | 3.05% | 3.31% |
Loan Portfolio
As of September 30, 2024, total loans and leases amounted to $8.57 billion, a decrease of 1.26% from the previous quarter. The loan portfolio includes a variety of products, with commercial real estate loans experiencing a decline of $46.3 million during the quarter. The yield on average loans was reported at 5.31%.
Noninterest Income
Noninterest income for CVB Financial Corp. was $12.8 million in Q3 2024, down from $14.4 million in Q2 2024 and $14.3 million in Q3 2023. This income includes $5.1 million from service charges on deposit accounts and $3.6 million from trust and investment services. Additionally, the company recorded a gain of $9.1 million from sale-leaseback transactions, offset by a loss of $11.6 million on the sale of AFS securities.
| Noninterest Income Sources | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Service Charges on Deposit Accounts | $5.1 million | $5.1 million | $5.1 million |
| Trust and Investment Services | $3.6 million | $3.4 million | $3.2 million |
| Gain on Sale-Leaseback Transactions | $9.1 million | $0 | $0 |
| Loss on Sale of AFS Securities | ($11.6 million) | $0 | $0 |
| Total Noninterest Income | $12.8 million | $14.4 million | $14.3 million |
Deposits and Customer Repurchase Agreements
As of September 30, 2024, total deposits and customer repurchase agreements stood at $12.47 billion, marking an increase of $407.9 million from the previous quarter. Noninterest-bearing deposits comprised 59.12% of total deposits. The total deposits included $400 million in brokered time deposits.
Expenses and Efficiency Ratio
Noninterest expenses for the third quarter of 2024 were $58.8 million, compared to $56.5 million in Q2 2024. The efficiency ratio for Q3 2024 was reported at 46.53%, an increase from 45.10% in the previous quarter.
| Expense Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Noninterest Expense | $58.8 million | $56.5 million | $55.1 million |
| Efficiency Ratio | 46.53% | 45.10% | 39.99% |
Net Earnings
Net earnings for CVB Financial Corp. in Q3 2024 were $51.2 million, or $0.37 per diluted share. This represents an annualized return on average assets of 1.23% and a return on average equity of 9.40%.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Earnings | $51.2 million | $50.0 million | $57.9 million |
| Earnings per Share (Diluted) | $0.37 | $0.36 | $0.42 |
| Return on Average Assets | 1.23% | 1.24% | 1.40% |
| Return on Average Equity | 9.40% | 9.57% | 11.33% |
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Article updated on 8 Nov 2024
Resources:
- CVB Financial Corp. (CVBF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CVB Financial Corp. (CVBF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CVB Financial Corp. (CVBF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.