- CVB Financial Corp. (CVBF, Financial) reported Q1 2025 net income of $51.1 million, or $0.36 per share, showing a slight increase from the previous quarter.
- The company's net interest margin improved to 3.31%, marking an increase of 13 basis points from Q4 2024.
- Noninterest-bearing deposits grew by $147 million, while the cost of funds decreased to 1.04% from 1.13% in the prior quarter.
CVB Financial Corp. (CVBF), the parent company of Citizens Business Bank, announced its financial results for the first quarter of 2025. The company reported a net income of $51.1 million, or $0.36 per share, up from $50.9 million, or $0.36 per share, in Q4 2024 and $48.6 million, or $0.35 per share, in Q1 2024.
The financial institution's performance was highlighted by a return on average assets of 1.37% and a return on average tangible common equity of 14.51%. The net interest margin improved to 3.31%, a 13 basis-point increase from the previous quarter, despite a decrease in net interest income, attributed to a decrease in average earning assets.
The bank also reported an improvement in its efficiency ratio, down to 46.7%, indicating effective cost management. Noninterest-bearing deposits saw a robust growth of $147 million, and the cost of funds decreased to 1.04% from the previous quarter's 1.13%. Additionally, the company recorded a net gain of $2.2 million from the sale of other real estate owned (OREO) assets.
Despite the positive financial metrics, CVBF continues to face challenges, including a decrease in total loans by $407.1 million year-over-year, and an increase in nonperforming commercial real estate loans. Nevertheless, the bank has maintained a strong capital position, with a Tangible Common Equity (TCE) Ratio of 10.0% and a Common Equity Tier 1 (CET1) Ratio of 16.5%.
CEO David Brager highlighted the bank's steadfast focus on serving the financial needs of small to medium-sized businesses and acknowledged the company's longstanding record of profitability and dividend payments, marking 192 consecutive profitable quarters and 142 consecutive cash dividend payments.
