CVB Financial Corp. Reports $200.7 Million Net Earnings for 2024, 9.36% Decrease from 2023

CVB Financial Corp. reported net earnings of $200.7 million for the year ended December 31, 2024, a 9.36% decrease compared to $221.4 million in 2023. Diluted earnings per share fell from $1.59 to $1.44, a 9.43% decline. The decrease in net earnings was attributed to a decrease in net interest income, resulting from interest-bearing liabilities increasing faster than interest-earning assets due to higher short-term market interest rates. This decline was further impacted by increased higher-cost borrowings used to manage liquidity following the spring 2023 banking crisis and subsequent deposit reductions. Return on average equity was 9.35%, return on average tangible common equity was 14.95%, and return on average assets was 1.24%.

Net interest income decreased by $40.6 million (8.33%) to $447.3 million in 2024, primarily due to a $64.4 million increase in interest expense, which outweighed a $23.8 million (3.92%) increase in interest income. The cost of funds rose by 49 basis points, while the earning asset yield increased by only 25 basis points. Average earning assets decreased by $275.6 million year-over-year. Noninterest income also decreased by $4.8 million (8.18%) to $54.5 million, reflecting a pre-tax loss of $28.3 million from the sale of available-for-sale securities, partially offset by a pre-tax gain of $25.9 million from a sale-leaseback transaction. Noninterest expense increased by $3.7 million (1.61%) to $233.6 million, largely due to normal inflationary pressures.

Total assets decreased by $867.3 million (5.41%) to $15.15 billion in 2024, primarily due to reductions in investment securities ($499 million), total loans ($368.5 million), and interest-earning balances due from the Federal Reserve ($59.1 million). Total investment securities fell by $499 million (9.20%) to $4.92 billion, mainly due to principal repayments, maturities, and sales exceeding purchases. Total loans and leases decreased by $368.5 million (4.14%) to $8.54 billion, reflecting a slowdown in loan demand due to higher interest rates and borrower uncertainty. The allowance for credit losses decreased to $80.1 million (0.94% of total loans) from $86.8 million (0.98% of total loans) in 2023, reflecting a $3 million recapture of provision for credit losses.

The company completed the merger with Suncrest Bank in January 2022, acquiring approximately $1.38 billion in assets. In November 2024, the Board of Directors approved a share repurchase program for up to 10,000,000 shares. As of December 31, 2024, the company employed 1,089 associates, a 1.6% decrease from the prior year. The company's capital ratios remained well above regulatory requirements. The company noted various risk factors, including credit risk, liquidity risk, interest rate risk, operational risks, and strategic and external risks, and discussed its risk management framework and compliance with various regulations, including the Bank Secrecy Act, the Dodd-Frank Act, and the Community Reinvestment Act. The company did not provide a specific outlook or forward-looking statements beyond the risk factors and discussion of its financial performance.