CVB Financial Reports Strong Q1 Performance and Growth Strategies

2024-04-26

CVB Financial Corporation, under the leadership of key executives Dave Brager, President and Chief Executive Officer, and Allen Nicholson, Executive Vice President and Chief Financial Officer, reported robust financial performance during the first quarter of 2024. The company achieved net earnings of $48.6 million and earnings per share of $0.35, marking its 188th consecutive quarter of profitability.

The increase in accrued expenses in the first quarter was primarily driven by the FDIC revising its estimate of losses stemming from previous bank failures. Despite a decrease in net interest income, CVB Financial Corporation experienced growth in total deposits, with noninterest-bearing deposits accounting for 60% of the total. The cost of funds rose due to increased borrowings and the inclusion of broker deposits.

Regarding asset quality, the company disclosed net charge-offs of $4 million in the first quarter, along with adjustments in the allowance for credit losses and nonperforming assets. The investment portfolio comprised AFS securities and investment securities held to maturity, with a significant unrealized loss on AFS securities.

During the meeting, emphasis was placed on the company's strategies for enhancing earning asset yields, boosting noninterest income, and effectively managing funding mix and interest rate risk. Discussions also revolved around initiatives aimed at driving deposit growth, overseeing the loan portfolio, and addressing market challenges, particularly within the agricultural sector.

CVB Financial Corporation shared insights into its approach to balance sheet management, regulatory relationships, and potential M&A opportunities. With a solid regulatory capital position and a dedication to upholding profitability and shareholder value, the company continues to navigate the dynamic financial landscape, prioritizing sustainable growth and delivering customer-centric banking services.