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Cvb Financial (CVBF)
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Cvb Financial (CVBF) AI Stock Analysis

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CVBF

Cvb Financial

(NASDAQ:CVBF)

Rating:73Outperform
Price Target:
$21.50
▲(15.03% Upside)
CVB Financial's strong financial performance and consistent profitability are the most significant strengths, providing a solid foundation for stability. The stock's valuation is reasonable, offering moderate income potential. While technical analysis presents mixed signals, the company's strategic initiatives, as discussed in recent earnings calls and corporate events, support a positive outlook, albeit with areas for improvement in loan performance and competition.
Positive Factors
Earnings
CVBF reported core EPS of $0.37, above consensus estimate of $0.34.
Financial Performance
The $22 price target offers investors an attractive 28% total return.
Negative Factors
Stock Performance
Shares have fallen -31% since the start of 2023, making CVBF the second-worst performing in the index.

Cvb Financial (CVBF) vs. SPDR S&P 500 ETF (SPY)

Cvb Financial Business Overview & Revenue Model

Company DescriptionCVB 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.
How the Company Makes MoneyCVB Financial Corp. makes money primarily through its commercial banking operations, which include interest income from loans, leases, and debt securities. The company earns revenue by charging interest on loans provided to businesses and individuals, which is its primary source of income. Interest income is derived from various loan products, such as commercial and industrial loans, real estate loans, and agricultural loans. Additionally, CVBF generates non-interest income through fees and services related to deposit accounts, investment management services, and other banking services. The bank also benefits from strategic partnerships and a strong local market presence, which help attract and retain customers, further driving its revenue.

Cvb Financial Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: -5.41%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a stable performance with a strong history of profitability and dividend payments, alongside improvements in net interest margin and deposit growth. However, challenges include a decline in total loans, increased nonperforming loans, lower noninterest income, and a competitive loan pricing environment.
Q2-2025 Updates
Positive Updates
Consistent Profitability and Dividend Payments
193 consecutive quarters of profitability and 143 consecutive quarters of cash dividend payments, demonstrating stability and shareholder returns.
Net Interest Margin Improvement
Net interest margin increased by 26 basis points from 3.05% in Q2 2024 to 3.31% in Q2 2025 due to a deleveraging strategy.
Increase in Loan Originations
Loan originations in Q2 2025 were 58% higher than Q1 2025 and 79% higher than Q2 2024, driven by C&I and commercial real estate loans.
Strong Deposit Pipeline
Total deposits and customer repurchase agreements increased by $123 million from Q1 2025 and $330 million from Q2 2024. Noninterest-bearing deposits grew by $63 million compared to Q1 2025.
Negative Updates
Decline in Total Loans
Total loans decreased by $5 million from Q1 2025 and $178 million from December 31, 2024, largely due to reduced line utilization in C&I and dairy and livestock loans.
Increase in Nonperforming and Delinquent Loans
Nonperforming and delinquent loans increased by $3.2 million to $30 million at June 30, 2025, primarily due to an SBA loan over 30 days past due.
Decreased Noninterest Income
Noninterest income was $14.7 million in Q2 2025, $1.5 million lower than Q1 2025, impacted by a $2.2 million gain from the sale of OREO in Q1.
Competitive Loan Pricing Environment
Intense competition in loan pricing, with spreads observed at 130 to 170 basis points over treasuries, affecting loan origination yields.
Company Guidance
During the second quarter of 2025, CVB Financial Corporation reported net earnings of $50.6 million, or $0.36 per share, marking their 193rd consecutive quarter of profitability. The company declared a $0.20 per share dividend for the quarter, continuing their 143-quarter streak of cash dividends. The return on average tangible common equity stood at 14.08%, while the return on average assets was 1.34%. Pretax pre-provision income reached $68.8 million, up $1.3 million from the previous quarter. Net interest income increased by $1.2 million compared to the prior quarter, with the net interest margin stable at 3.31%. Total deposits and customer repurchase agreements grew to $12.4 billion. The company experienced a decline of $5 million in total loans at quarter-end, attributed mainly to reduced line utilization in C&I and dairy and livestock credit lines. Loan originations were 58% higher than the previous quarter. The company's allowance for credit losses was $78 million, or 0.93% of gross loans. Noninterest income was $14.7 million, and noninterest expenses totaled $57 million, resulting in an improved efficiency ratio of 45.6%. Overall asset and liability management strategies continued to support CVB Financial's robust financial performance.

Cvb Financial Financial Statement Overview

Summary
CVB Financial demonstrates strong financial health with solid profitability margins and a sturdy balance sheet. The company maintains low leverage and effective cash management, although a slight revenue decline and free cash flow contraction warrant attention.
Income Statement
78
Positive
Cvb Financial exhibits solid gross and net profit margins, indicative of efficient cost management. The TTM gross profit margin stands at 74.5%, while the net profit margin is 31.4%. However, a slight dip in revenue from the previous year suggests a potential area for improvement. Despite this, EBIT and EBITDA margins remain strong at 42.4% and 45.0%, respectively, demonstrating robust operational efficiency.
Balance Sheet
80
Positive
The balance sheet is strong, with a relatively low debt-to-equity ratio of 0.35, indicating conservative leverage. The equity ratio of 14.6% highlights a stable financial base. Return on equity is healthy at 9.1%, reflecting effective use of shareholders' funds. The company maintains a solid liquidity position with substantial cash reserves.
Cash Flow
75
Positive
Cvb Financial's cash flow performance is stable, with a strong operating cash flow to net income ratio of 1.05, indicating efficient cash generation. However, the free cash flow growth rate shows a decline of 14.8% from the previous year, which may warrant attention. The free cash flow to net income ratio is robust at 1.03, underscoring the company's ability to generate cash beyond its profit.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue646.40M658.69M665.66M561.94M467.83M478.53M
Gross Profit481.74M480.17M545.82M541.30M488.25M440.74M
EBITDA291.06M286.61M333.60M342.01M291.22M248.36M
Net Income203.22M200.72M221.44M235.43M212.52M177.16M
Balance Sheet
Total Assets15.26B15.15B16.02B16.48B15.88B14.42B
Cash, Cash Equivalents and Short-Term Investments597.26M268.94M3.25B3.47B4.94B4.40B
Total Debt824.00M811.50M2.34B1.56B644.67M470.18M
Total Liabilities13.03B12.97B13.94B14.53B13.80B12.41B
Stockholders Equity2.23B2.19B2.08B1.95B2.08B2.01B
Cash Flow
Free Cash Flow208.52M244.63M291.11M268.37M190.56M180.42M
Operating Cash Flow214.17M249.76M295.63M273.73M195.24M185.10M
Investing Cash Flow894.78M852.75M536.28M-1.18B-1.73B-1.27B
Financing Cash Flow-1.53B-1.18B-754.08M-625.85M1.31B2.86B

Cvb Financial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price18.69
Price Trends
50DMA
19.43
Negative
100DMA
18.85
Positive
200DMA
19.69
Negative
Market Momentum
MACD
-0.28
Positive
RSI
44.22
Neutral
STOCH
21.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVBF, the sentiment is Negative. The current price of 18.69 is below the 20-day moving average (MA) of 20.04, below the 50-day MA of 19.43, and below the 200-day MA of 19.69, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVBF.

Cvb Financial Risk Analysis

Cvb Financial disclosed 48 risk factors in its most recent earnings report. Cvb Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cvb Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$2.64B13.1721.98%4.35%-5.14%-0.94%
72
Outperform
$2.58B15.6213.49%3.00%10.28%22.73%
70
Outperform
$2.69B10.518.98%3.36%-2.81%51.85%
70
Outperform
$2.65B15.327.92%2.96%8.35%14.42%
70
Outperform
$2.56B24.695.81%1.52%-5.80%-22.11%
65
Neutral
$2.51B16.5610.20%4.56%2.74%7.24%
65
Neutral
£5.09B9.375.51%4.87%24.62%-23.11%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CVBF
Cvb Financial
19.16
2.93
18.05%
BOH
Bank Of Hawaii
63.15
-0.23
-0.36%
BKU
BankUnited
35.80
2.27
6.77%
PRK
Park National
160.67
4.40
2.82%
TOWN
TowneBank
35.23
4.61
15.06%
FBK
FB Financial
48.36
5.42
12.62%

Cvb Financial Corporate Events

Business Operations and StrategyFinancial Disclosures
CVB Financial Prepares Q3 2025 Investor Presentation
Positive
Jul 24, 2025

CVB Financial Corp. announced that its President and CEO, along with the CFO, will present to institutional investors in the third quarter of 2025, with updated financial information from the second quarter of 2025. The company’s financial highlights for Q2 2025 include a net income of $51 million and an EPS of $0.36, with deposits and customer repos increasing by $123 million since March 2025. The company maintains strong capital ratios and a robust balance sheet, positioning it well within the competitive banking industry in California.

The most recent analyst rating on (CVBF) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Cvb Financial stock, see the CVBF Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025