Second Quarter 2025
Net Earnings of $50.6 million, or $0.36 per share Return on Average Assets of 1.34ficiency Ratio of 45.6%Net Interest Margin of 3.31% Ontario, CA, July 23, 2025 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended June 30, 2025.
CVB Financial Corp. reported net income of $50.6 million for the quarter ended June 30, 2025, compared with $51.1 million for the first quarter of 2025 and $50.0 million for the second quarter of 2024. Diluted earnings per share were $0.36 for the second quarter, compared to $0.36 for the prior quarter and $0.36 for the same period last year.
For the second quarter of 2025, annualized return on average equity (“ROAE”) was 9.06%, annualized return on average tangible common equity (“ROATCE”) was 14.08%, and annualized return on average assets (“ROAA”) was 1.34%.
David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank’s performance in the second 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 193 consecutive quarters, or more than 48 years, of profitability, and our 143 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”
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Additional Highlights for the Second Quarter of 2025
Pre-provision / pretax income increased from $67.5 million in the first quarter of 2025 to $68.8 millionCost of funds decreased to 1.03% from 1.04% in the first quarter of 2025Deposits and customer repos grew by $123 million from the end of the first quarter of 2025Loans decreased by $5 million from the end of the first quarter 2025TCE Ratio of 10.0% & CET1 Ratio of 16.5% INCOME STATEMENT HIGHLIGHTS
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Three Months Ended Six Months Ended June 30,
2025 March 31,
2025 June 30,
2024 June 30,
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2025 June 30,
2024 (Dollars in thousands, except per share amounts) Net interest income$111,608 $110,444 $110,849 $222,052 $223,310 Recapture of (provision for) credit losses – 2,000 – 2,000 – Noninterest income 14,744 16,229 14,424 30,973 28,537 Noninterest expense (57,557) (59,144) (56,497) (116,701) (116,268)Income taxes (18,231) (18,425) (18,741) (36,656) (36,945)Net earnings$50,564 $51,104 $50,035 $101,668 $98,634 Earnings per common share: Basic$0.36 $0.37 $0.36 $0.72 $0.71 Diluted$0.36 $0.36 $0.36 $0.72 $0.71 NIM 3.31% 3.31% 3.05% 3.31% 3.07%ROAA 1.34% 1.37% 1.24% 1.35% 1.22%ROAE 9.06% 9.31% 9.57% 9.18% 9.44%ROATCE 14.08% 14.51% 15.51% 14.29% 15.32ficiency ratio 45.55% 46.69% 45.10% 46.12% 46.17% Net Interest Income
Net interest income was $111.6 million for the second quarter of 2025, representing a $1.2 million, or 1.1%, increase from the first quarter of 2025, and a $0.8 million, or 0.7%, increase from the second quarter of 2024. Interest income increased by $1.2 million, or 0.84%, from the first quarter, while interest expense remained the same at $32.6 million in the second quarter of 2025.
The increase in net interest income of $0.8 million, or 0.7%, compared to the second quarter of 2024 was the net result of a $15.6 million decline in interest expense, that exceeded the $14.9 million decline in interest income. The decrease in interest expense was the result of a $1.19 billion decrease in average interest-bearing liabilities compared to the second quarter of 2024. The decline in interest-bearing liabilities was driven by a decrease in borrowings that resulted from the early redemptions of Bank Term Funding Program (“BTFP”) advances in the third quarter of 2024. The decrease in interest income was the result of a $1.11 billion decrease in average interest-earning assets, that coincided with the Company’s deleveraging strategy in the second half of 2024 resulting in the Company’s borrowings declining by $1.34 billion.
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Net Interest Margin
Our tax equivalent net interest margin was 3.31% for the second quarter of 2025, compared to 3.31% for the first quarter of 2025 and 3.05% for the second quarter of 2024. The yield on our interest-earning assets for the second quarter of 2025 remained unchanged, at 4.28%, compared to the prior quarter, while our cost of funds decreased slightly to 1.03% for the second quarter of 2025, from 1.04% in the prior quarter. Loan yields remained unchanged for the second quarter of 2025 at 5.22%. The slight decrease in our cost of funds was primarily due to a two-basis point decrease in our cost of deposits, from .86% to .84%. The decrease in cost of deposits was partially offset by an increase in the average balance and cost of customer repurchase agreements. For the second quarter of 2025 average customer repurchase agreements were $376.6 million at a cost of 1.66%, compared to $317.3 million and 1.24% for the prior quarter.
Net interest margin for the second quarter of 2025 increased by 26-basis points compared to the second quarter of 2024, primarily as a result of 35-basis point decrease in cost of funds, to 1.03% for the second quarter of 2025, from 1.38% in the same quarter of last year. The decrease in cost of funds was primarily due to a $1.34 billion decline in average borrowings, which had an average cost of 4.79% in the second quarter of 2024. For the second quarter of 2025, the Company had average deposits and customer repurchase agreements of $12.18 billion, at an average cost of 0.87%, and average borrowings of $508.2 million, at an average cost of 4.61%, compared to the second quarter of 2024 in which borrowings averaged $1.85 billion, at an average cost of 4.79%, and average deposits and customer repurchase agreements of $12.17 billion had an average cost of 0.87%. The decrease in cost of funds, exceeded the modest decrease in interest earning asset yields from 4.37% for the second quarter of 2024 to 4.28% in the second quarter of 2025. The decrease in earning asset yields was impacted by a decrease in loan yields from 5.26% for the second quarter of 2024 to 5.22% for the second quarter of 2025, and a decrease in investment securities yields to 2.62% in the second quarter of 2025, from 2.71% for the second quarter of 2024. The decrease in investment yields was primarily the result of a $2.8 million decrease in the positive interest spread on pay-fixed swaps.
Earning Assets and Deposits
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Average earning assets increased by $1.7 million compared to the first quarter of 2025 and declined by $1.12 billion when compared to the second quarter of 2024. The average balance in funds held at the Federal Reserve increased by $170.5 million in the second quarter of 2025 compared to the first quarter of 2025, while average loans decreased by $112.6 million and average investment securities decreased by $61.3 for the same period. Compared to the second quarter of 2024, the decrease in average earning assets was due to decreases of $376.7 million in average loans, $359.5 million in average investment securities, and $372.1 million in funds held at the Federal Reserve. The average balance on noninterest-bearing deposits increased by $45.3 million, or 0.65%, from the first quarter of 2025 and the average balance on interest-bearing deposits and customer repurchase agreements decreased by $51.2 million from the same period. Compared to the second quarter of 2024, the average balance on total deposits and customer repurchase agreements increased by $14.9 million, or 0.12%. On average, noninterest-bearing deposits were 60.47% of total deposits during the most recent quarter, compared to 59.92% for the first quarter of 2025 and 60.13% for the second quarter of 2024.
SELECTED FINANCIAL HIGHLIGHTSThree Months Ended
June 30, 2025 March 31, 2025 June 30, 2024 (Dollars in thousands) Yield on average investment securities (TE)2.62% 2.63% 2.71% Yield on average loans5.22% 5.22% 5.26% Yield on average earning assets (TE)4.28% 4.28% 4.37% Cost of deposits0.84% 0.86% 0.88% Cost of funds1.03% 1.04% 1.38% Net interest margin (TE)3.31% 3.31% 3.05% Average Earning Asset MixAvg % of Total Avg % of Total Avg % of Total Total investment securities$4,847,415 35.75% $4,908,718 36.21% $5,206,959 35.49%
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