CVB Financial Corp. Reports Earnings for the Fourth Quarter and the Year Ended 2025

Highlights for the Full Year 2025

• 5.5% growth in Earning Per Share and 4.3% growth in Net Income

• Net interest margin of 3.36%, compared to 3.09% for 2024

• Cost of funds of 1.03%, compared to 1.32% for 2024

• Net interest income increased by $13 million, or 2.9%

• Efficiency ratio of 45.3% after excluding expense for acquisition and increased reserves for off-balance sheet

• Loans grew by $163 million, or 2% compared to December 31, 2024

• Average total deposits & customer repurchase agreements increased by 1%, compared to 2024

• Repurchased 4.3 million shares of common stock in 2025

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income was $122.7 million for the fourth quarter of 2025, representing a $7.1 million, or 6.13%, increase from the third quarter of 2025, and a $12.2 million, or 11.09%, increase from the fourth quarter of 2024. Interest income increased by $5.9 million, or 3.91%, from the third quarter of 2025, while interest expense decreased by $1.2 million, or 3.52%, to $33.3 million in the fourth quarter of 2025. The quarter over quarter growth in net interest income resulted from a $152.5 million increase in average earning assets, primarily due to a $144.8 million increase in average loans, and a 16 basis point increase in the net interest margin. The increase in net interest income compared to the fourth quarter of 2024 was due primarily to a 31 basis point increase in the net interest margin, from 3.18% to 3.49%.

Net interest income of $460.3 million for the year ended December 31, 2025, increased $12.9 million, or 2.89%, compared to the same period of 2024. Interest income decreased by $36.8 million, while interest expense decreased by $49.8 million from 2024. The decrease in interest income from 2024 was primarily due to a $798 million decrease in average earning assets, associated with the Bank’s strategy in the later half of 2024 to de-leverage the balance sheet, as well as a two basis point decrease in the earning asset yield. The $49.8 million decrease in interest expense was primarily due to a $48.7 million decrease in interest expense on borrowings. Average borrowings declined by $1 billion year over year, as a result of the strategy to de-leverage the balance sheet during the second half of 2024.

Net Interest Margin

Our tax equivalent net interest margin was 3.49% for the fourth quarter of 2025, compared to 3.33% for the third quarter of 2025 and 3.18% for the fourth quarter of 2024. The 16 basis points increase in our net interest margin compared to the third quarter of 2025, was the result of an 11 basis points increase in our interest-earning assets yield, while our cost of funds decreased four basis points. The 11 basis points increase in our interest-earning asset yield was primarily due to a 22 basis points increase in our loan yield. The loan yield for the fourth quarter of 2025 was impacted by the collection of $3.2 million of interest on a nonperforming loan that was paid off in full during the quarter. Our cost of funds decreased in the fourth quarter to 1.01%, from 1.05% in the third quarter of 2025. The decrease in our cost of funds from the prior quarter was the result of a four basis point decrease in our cost of deposits to 0.82%, from 0.86%. In addition, the cost of customer repurchase agreements decreased to 1.76% in the fourth quarter from 2.00% for the third quarter of 2025.

Net interest margin for the fourth quarter of 2025 increased by 31 basis points compared to the fourth quarter of 2024, based on the impact of both a 19 basis point increase in the earning asset yield and a 12 basis point decrease in cost of funds. The increase in earning asset yield was primarily due to a 32 basis point increase in loan yields. Cost of funds was 1.01% for the fourth quarter of 2025, compared to 1.13% in the same quarter of last year, as the cost of deposits decreased by 11 basis points.

Earning Assets and Deposits

On average, earning assets increased by $152.5 million compared to the third quarter of 2025 and increased $63.4 million when compared to the fourth quarter of 2024. The $152.5 million quarter-over-quarter increase in earning assets resulted from a $144.8 million increase in average loans and a $110.8 million increase in investment securities, offset by a $121.5 million decrease in average funds held at the Federal Reserve. Compared to the fourth quarter of 2024, the average funds held at the Federal Reserve increased by $29.8 million and average investment securities increased by $10.2 million. The average balance on noninterest-bearing deposits decreased by $122 million, or 1.71%, from the third quarter of 2025 and by $114.6 million, or 1.61% from the year ago quarter. The average balance on interest-bearing deposits and customer repurchase agreements increased by $232.2 million from the prior quarter and by $127.0 million from the fourth quarter of 2024. On average, noninterest-bearing deposits were 57.92% of total deposits during the most recent quarter, compared to 59.28% for the third quarter of 2025 and 58.74% for the fourth quarter of 2024.

SELECTED FINANCIAL HIGHLIGHTS

Provision for Credit Losses

There was a $2.5 million recapture of credit losses in the fourth quarter of 2025, compared to a $1 million provision for credit losses in the third quarter of 2025 and a $3 million recapture of credit losses in the fourth quarter of 2024.

For the year ended December 31, 2025, we recorded a $3.5 million recapture of credit losses, compared to a $3 million recapture of credit losses for 2024.

Noninterest Income

Noninterest income was $11.2 million for the fourth quarter of 2025, compared with $13.0 million for the third quarter of 2025, and $13.1 million for the fourth quarter of 2024. During the fourth quarter of 2025, we recognized a $2.8 million loss on sale of available-for-sale (“AFS”) investments. The third quarter of 2025 included income from a $6.0 million legal settlement, that was offset by $8.1 million in losses on the sale of AFS investments. Bank-owned life insurance (“BOLI”) income for the fourth quarter decreased by $1.1 million, compared to prior quarter. Trust and investment services income grew by $200,000, or 4.0% and by $519,000, or 14.8% over the third quarter and fourth quarter of 2024, respectively.

For the year ended December 31, 2025, noninterest income was $55.2 million, compared to $54.5 million for 2024. Noninterest income in 2025 included $10.8 million in losses on the sale of AFS investments, a $6.0 million legal settlement, and a $2.3 million gain on OREO, while 2024 included a total pre-tax gain of $25.9 million from the sale-leaseback of four locations partially offset by a $28.1 million pre-tax loss on the sale of AFS investments. Trust and investment services income grew by $1.3 million, or 9.5%.

Noninterest Expense

Noninterest expense for the fourth quarter of 2025 was $62.0 million, compared to $58.6 million for the third quarter of 2025 and $58.5 million for the fourth quarter of 2024. The $3.4 million quarter over quarter increase in noninterest expense includes a $500,000 increase in provision for unfunded loan commitments and $1.6 million in acquisition related expenses incurred in the fourth quarter of 2025. Excluding these expenses, noninterest expense increased from the third quarter by $1.4 million, or 2.3%. Salaries and employee benefits increased by $1.2 million, as bonus and benefit expense increased during the fourth quarter. As a percentage of average assets, noninterest expense was 1.57% for the fourth quarter of 2025, 1.50% for the third quarter of 2025, and 1.49% for the fourth quarter of 2024. The efficiency ratio was 46.3% for the fourth quarter of 2025, 45.6% for the third quarter of 2025, and 47.3% for the fourth quarter of 2024. Excluding acquisition related expenses and increase in provision for unfunded loan commitment, the efficiency ratio for the fourth quarter of 2025 was 44.4%

Noninterest expense of $237.3 million for the year ended December 31, 2025 was $3.7 million, or 1.58% higher than the prior year. After excluding acquisition related expenses and increase in provision for unfunded loan commitments in 2025, noninterest expense was lower than 2024 by $1.1 million. Professional service expense decreased from 2024 by $1.2 million, while software expense grew from 2024 by $1.8 million, or 12.1%.

Income Taxes

Our effective tax rate for the quarter ended December 31, 2025 was 25.98%, compared with 23.80% for the third quarter of 2025, and 25.25% for the fourth quarter of 2024. Investments in tax credits contributed to the year-to-date effective tax rate of 25.7%. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHLIGHTS

Assets

The Company reported total assets of $15.63 billion at December 31, 2025. This represented a decrease of $35.2 million, or 0.22%, from total assets of $15.67 billion at September 30, 2025. The decrease in assets included an $363.2 million decrease in interest-earning balances due from the Federal Reserve, offset by a $76.2 million increase in investment securities, and a $228.3 million increase in total loans.

Total assets increased by $477.4 million, or 3.15%, from total assets of $15.15 billion at December 31, 2024. The increase in assets included a $218.1 million increase in interest-earning balances due from the Federal Reserve, a $162.8 million increase in total loans, and a $31.7 million increase in investment securities.

Investment Securities

Total investment securities were $4.95 billion at December 31, 2025, an increase of $76.2 million, or 1.56% from $4.88 billion at September 30, 2025, and an increase of $31.7 million, or 0.64%, from $4.92 billion at December 31, 2024.

At December 31, 2025, investment securities held-to-maturity (“HTM”) totaled $2.27 billion, a decrease of $27.5 million, or 1.20% from September 30, 2025, and a decrease of $109.3 million, or 4.59% from December 31, 2024.

At December 31, 2025, investment securities available-for-sale (“AFS”) totaled $2.68 billion, inclusive of a pre-tax net unrealized loss of $307.8 million. AFS securities increased by $103.7 million, or 4.02% from September 30, 2025, and increased by $141.0 million, or 5.54% from $2.54 million at December 31, 2024. The pre-tax unrealized loss decreased by $26.0 million from the end of the September 30, 2025, while decreasing $139.9 million from December 31, 2024.

Loans

Total loans and leases, at amortized cost, of $8.70 billion at December 31, 2025 increased by $228.3 million, or 2.69%, from September 30, 2025. The quarter-over quarter increase in loans included increases of $138.6 million in dairy & livestock and agribusiness loans, $39.1 million in commercial real estate loans, $34.5 million in commercial and industrial loans, $16.1 million in Small Business Administration (“SBA”) loans, and $7.8 million in construction loans, partially offset by decreases of $4.3 million in single-family residential (“SFR”) mortgage loans, $1.8 million in municipal lease finance receivables, and $1.6 million in consumer and other loans.

Total loans and leases, at amortized cost, increased by $162.8 million, or 1.91%, from December 31, 2024. The year-over-year increase includes increases of $66.9 million in commercial real estate loans, $48.5 million in commercial and industrial loans, $21.7 million in construction loans, $12.6 million in SFR mortgage loans, $11.7 million in dairy and livestock and agribusiness loans, $9.4 million in SBA loans, $2.3 million in consumer loans, offset by decreases of $6.6 million in municipal lease finance receivables, and $3 million in other loans.

Asset Quality

During the fourth quarter of 2025, we experienced credit charge-offs of $106,000 and total recoveries of $431,000, resulting in net recoveries of $325,000 compared to net recoveries of $333,000 in the prior quarter. For the year ended 2025, we experienced net recoveries of $539,000. Allowance for credit losses represented 0.89% of gross loans at December 31, 2025 compared to 0.94% at September 30, 2025.The allowance for credit losses (“ACL”) totaled $77.2 million at December 31, 2025, compared to $79.3 million at September 30, 2025 and $80.1 million at December 31, 2024. At December 31, 2025, the ACL as a percentage of total loans and leases outstanding was 0.89%. This compares to 0.94% at September 30, 2025 and 0.94% at December 31, 2024.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

The $23.1 million decrease in nonperforming loans from September 30, 2025 was primarily due to a $19.6 million commercial real estate nonperforming loan payoff and a $3.4 million SBA loan payoff.

Classified loans are loans that are graded “substandard” or worse. Classified loans decreased $25.5 million quarter-over-quarter, primarily due to three commercial real estate loans paid off totaling $25.6 million.

Deposits & Customer Repurchase Agreements

Deposits of $12.07 billion and customer repurchase agreements of $490.6 million totaled $12.56 billion at December 31, 2025. This represented a net decrease of $12.9 million compared to $12.58 billion at September 30, 2025. Total deposits and customer repurchase agreements increased by $352.3 million, or 2.89%, compared to December 31, 2024.

Noninterest-bearing deposits were $6.80 billion at December 31, 2025, a decrease of $444.3 million, or 6.13%, when compared to $7.24 billion at September 30, 2025. Noninterest-bearing deposits decreased by $236.4 million, or 3.36%, when compared to $7.04 billion at December 31, 2024. At December 31, 2025, noninterest-bearing deposits were 56.33% of total deposits, compared to 59.76% at September 30, 2025, and 58.90% at December 31, 2024.

Borrowings

As of December 31, 2025, September 30, 2025, and December 31, 2024, total borrowings consisted of $500 million of Federal Home Loan Bank (“FHLB”) advances. The FHLB advances include $300 million, at an average cost of 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027.

Capital

The Company’s total equity was $2.30 billion at December 31, 2025. This represented an overall increase of $108.9 million from total equity of $2.19 billion at December 31, 2024. Increases to equity included $209.3 million in net earnings and a $84.4 million increase in other comprehensive income that was partially offset by $110.3 million in cash dividends. For the year ended 2025, we repurchased, under our stock repurchase plan, 4,321,777 shares of common stock, at an average repurchase price of $18.60, totaling $80.4 million. Our tangible book value per share at December 31, 2025 was $11.24.

Our capital ratios under the revised capital framework referred to as Basel III remain well above regulatory standards.

CitizensTrust
As of December 31, 2025, CitizensTrust had approximately $5.11 billion in assets under management and administration, including $3.75 billion in assets under management. Revenues were $4.0 million for the fourth quarter of 2025 and $15.0 million for the year ended December 31, 2025, compared to $3.5 million and $13.7 million, respectively, for the same periods of 2024. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

Corporate Overview

CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank, National Association. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, January 22, 2026, to discuss the Company’s fourth quarter 2025 financial results. The conference call can be accessed live by registering at: https://register-conf.media-server.com/register/BI0e4821389aa24c70bdd552e807b00aa8

The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

Safe Harbor

Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of business, economic, or political developments, the impact of monetary, fiscal and trade policies, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy and the strength of the local economies in which we conduct business; the effects of, and changes in, immigration, trade, tariff, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target, key personnel and customers into our operations; the timely development of competitive new products and services, and the acceptance of these products and services by potential and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill, including any impairment that may result from increased volatility in our stock price; changes in consumer or business spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits (including low cost deposits) or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers or depositors; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; systemic or non-systemic bank failures or crises; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; ; risks associated with our pending merger with Heritage Commerce Corp (“Heritage”),  including completing the transaction on the terms set forth in our definitive agreement with Heritage, difficulties and delays in integrating Heritage’s business, key personnel and customers into our business and operations, and achieving anticipated synergies, cost savings and other benefits from the transaction; and our ability to manage the risks involved in the foregoing.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2024 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings, equity, or shareholder returns, are for illustrative purposes only, are not forecasts, and actual results may differ.

Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These non-GAAP measures may or may not be comparable to similarly titled measures used by other companies.

Contact: David A. Brager
President and Chief
Executive Officer
(909) 980-4030