Education
About Us
Working with TipRanks
Follow Us
Cvb Financial Corp. (CVBF)
NASDAQ:CVBF
Top Page
Cvb Financial
(NASDAQ:CVBF)
Select Model
Select Model
Rating:73Outperform
Price Target:
$22.50
â–²(11.33% Upside)
Cvb Financial's strong financial performance and consistent profitability are key strengths, supported by a stable technical outlook and fair valuation. However, challenges in revenue growth and loan balances slightly temper the overall score.
Positive Factors
Consistent Profitability
Cvb Financial's consistent profitability over 193 consecutive quarters highlights its robust business model and effective management, ensuring long-term stability and investor confidence.
Strong Dividend Record
The company's strong dividend record demonstrates financial health and commitment to returning value to shareholders, reinforcing its attractiveness as a long-term investment.
Increased Loan Originations
Significant growth in loan originations indicates effective market penetration and demand for CVBF's lending services, supporting future revenue growth and market position.
Negative Factors
Decline in Loan Balances
A decline in loan balances suggests challenges in maintaining loan growth, which could impact net interest income and overall revenue if not addressed.
Increase in Nonperforming Loans
Rising nonperforming loans indicate potential credit quality issues, which could lead to higher provisions and impact profitability if trends persist.
Intense Competitive Environment
Intense competition in the loan market may pressure margins and limit growth opportunities, challenging CVBF's ability to sustain its competitive advantage.
Cvb Financial (CVBF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.70B
Dividend Yield3.96%
Average Volume (3M)638.15K
Price to Earnings (P/E)13.4
Beta (1Y)0.98
Revenue Growth-5.14%
EPS Growth-0.70%
CountryUS
Employees1,089
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.36
Shares Outstanding137,817,600
10 Day Avg. Volume700,131
30 Day Avg. Volume638,152
Financial Highlights & Ratios
PEG Ratio-1.57
Price to Book (P/B)1.36
Price to Sales (P/S)4.50
P/FCF Ratio12.11
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue5.49
Enterprise Value/Gross Profit7.19
Enterprise Value/Ebitda11.96
Forecast
1Y Price Target
$23.38Price Target Upside15.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 generates revenue through various streams, primarily from net interest income, which is earned by lending money to customers at a higher interest rate than it pays on deposits. This includes loans to businesses and individuals, as well as commercial real estate financing. Additionally, CVBF earns non-interest income from fees associated with banking services, such as account maintenance, transaction fees, and wealth management services. The company also benefits from its investment portfolio, which contributes to overall earnings. Strategic partnerships, particularly with local businesses and community organizations, enhance its market presence and customer base, further supporting its revenue generation.
Cvb Financial Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted consistent profitability and strong dividend payouts, along with stable net interest margins and improved loan originations. However, challenges were noted in declining loan balances and increased nonperforming loans, along with an intensely competitive environment affecting loan yields.Q2-2025 Updates
Positive Updates
Consistent Profitability
Reported net earnings of $50.6 million or $0.36 per share for the second quarter of 2025, marking the 193rd consecutive quarter of profitability.
Strong Dividend Record
Declared a $0.20 per share dividend for the second quarter of 2025, representing the 143rd consecutive quarter of paying a cash dividend.
Stable Net Interest Margin
Net interest margin remained at 3.31%, with net interest income $1.2 million higher than the prior quarter.
Increased Loan Originations
Loan originations in the second quarter of 2025 were approximately 58% higher than the first quarter of 2025 and 79% higher than the second quarter of 2024.
Improved Efficiency Ratio
Efficiency ratio improved to 45.6% in the second quarter compared to 46.9% in the first quarter.
Strong Deposits Growth
Total deposits and customer repurchase agreements increased by $123 million from the previous quarter and $330 million higher than the same quarter last year.
Negative Updates
Decline in Loan Balances
Total loans declined by $5 million from the end of the first quarter of 2025 and $178 million from December 31, 2024, due to reductions in line utilization for C&I and dairy and livestock lines of credit.
Increase in Nonperforming Loans
Total nonperforming and delinquent loans increased by $3.2 million to $30 million at June 30, 2025, primarily due to an SBA loan past due.
Drop in Noninterest Income
Noninterest income was $14.7 million for the second quarter, $1.5 million lower than the first quarter.
Intense Competitive Environment
The loan market faces intense competition, particularly from regional banks, 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, continuing its streak of 143 consecutive quarters of cash dividends. Their return on average tangible common equity was 14.08%, and the return on average assets was 1.34%. Pretax pre-provision income increased by $1.3 million from the previous quarter, reaching $68.8 million, while net interest income rose by $1.2 million to $111.6 million. The net interest margin remained stable at 3.31%, benefiting from a deleveraging strategy that improved it by 26 basis points year-over-year. Total deposits and customer repurchase agreements grew by $123 million from the first quarter to $12.4 billion, with noninterest-bearing deposits increasing by $63 million. Loan originations surged by 58% quarter-over-quarter, though total loans slightly declined by $5 million due to lower line utilization. Noninterest income was $14.7 million, with trust and international fees contributing to a $700,000 increase, excluding the impact of a prior $2.2 million OREO gain. Noninterest expenses decreased by $1.6 million to $57 million, improving the efficiency ratio to 45.6%. The allowance for credit losses was $78 million, representing 0.93% of gross loans. Overall, the company maintained strong capital ratios, with a common equity Tier 1 capital ratio of 16.5% and a total risk-based capital ratio of 17.3%.Cvb Financial Financial Statement Overview
Summary
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. 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. 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.Income Statement
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.75
Positive
Balance Sheet
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.68
Positive
Cash Flow
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 632.04M | 658.69M | 665.66M | 561.94M | 467.83M | 478.53M |
| Gross Profit | 482.81M | 480.17M | 545.82M | 541.30M | 488.25M | 440.74M |
| EBITDA | 290.22M | 286.61M | 333.60M | 342.01M | 291.22M | 248.36M |
| Net Income | 203.75M | 200.72M | 221.44M | 235.43M | 212.52M | 177.16M |
Balance Sheet | ||||||
| Total Assets | 15.41B | 15.15B | 16.02B | 16.48B | 15.88B | 14.42B |
| Cash, Cash Equivalents and Short-Term Investments | 2.68B | 268.94M | 3.25B | 3.47B | 4.94B | 4.40B |
| Total Debt | 904.15M | 811.50M | 2.34B | 1.56B | 644.67M | 470.18M |
| Total Liabilities | 13.17B | 12.97B | 13.94B | 14.53B | 13.80B | 12.41B |
| Stockholders Equity | 2.24B | 2.19B | 2.08B | 1.95B | 2.08B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 236.41M | 244.63M | 291.11M | 268.37M | 190.56M | 180.42M |
| Operating Cash Flow | 241.13M | 249.76M | 295.63M | 273.73M | 195.24M | 185.10M |
| Investing Cash Flow | 775.96M | 852.75M | 536.28M | -1.18B | -1.73B | -1.27B |
| Financing Cash Flow | -1.12B | -1.18B | -754.08M | -625.85M | 1.31B | 2.86B |
Cvb Financial Technical Analysis
Negative
20.21
Price Trends
19.89
Negative
19.46
Positive
19.58
Negative
Market Momentum
0.05
Positive
43.51
Neutral
14.13
Positive
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 20.21 is above the 20-day moving average (MA) of 20.04, above the 50-day MA of 19.89, and above the 200-day MA of 19.58, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.51 is Neutral, neither overbought nor oversold. The STOCH value of 14.13 is Positive, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 2.66B | 16.10 | 12.17% | 2.78% | 10.28% | 22.73% | |
74 Outperform | 2.66B | 17.55 | 9.82% | 4.12% | 2.74% | 7.24% | |
73 Outperform | $2.70B | 13.35 | 9.30% | 3.96% | -5.14% | -0.70% | |
72 Outperform | 2.87B | 11.20 | 8.74% | 3.04% | -2.80% | 51.85% | |
70 Outperform | 2.85B | 15.24 | 7.56% | 2.80% | 8.34% | 14.44% | |
70 Neutral | 2.84B | 27.41 | 5.61% | 1.36% | -5.80% | -22.11% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
CVBF
Cvb Financial
20.21
2.39
13.41%
BOH
Bank Of Hawaii
67.98
4.53
7.14%
BKU
BankUnited
39.49
3.10
8.52%
PRK
Park National
171.57
-4.91
-2.78%
TOWN
TowneBank
36.39
2.57
7.60%
FBK
FB Financial
54.29
5.81
11.98%
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.