November 21, 2024
Steady Profitability Amid Asset Decline #UKFinance

Steady Profitability Amid Asset Decline #UKFinance

CashNews.co

  • Net Earnings: $51 million or $0.37 per share for Q3 2024.

  • Return on Average Tangible Common Equity: 14.93% for Q3 2024.

  • Return on Average Assets: 1.23% for Q3 2024.

  • Total Revenue Growth: 2.9% or $3.7 million increase compared to Q2 2024.

  • Net Interest Income Increase: $2.8 million quarter-over-quarter.

  • Core Non-Interest Expense Increase: 3.8% or $2 million compared to the prior quarter.

  • Total Assets: Declined by approximately $750 million from the end of Q2 2024.

  • Net Interest Margin: 3.05% for Q3 2024, unchanged from the prior quarter.

  • Deposits and Customer Repos: Increased by $408 million from the end of Q2 to September 30, 2024.

  • Total Loans: $8.6 billion, a $109 million or 1% decrease from the end of Q2 2024.

  • Allowance for Credit Losses: $83 million at September 30, 2024.

  • Nonperforming Assets: $22.6 million or 15 basis points of total assets.

  • Interest Income Growth: $6.7 million over the prior quarter.

  • Interest Expense Increase: $3.9 million over the prior quarter.

  • Noninterest Income: $12.8 million for Q3 2024.

  • Noninterest Expense: $58.8 million for Q3 2024.

  • Efficiency Ratio: 46.53% for Q3 2024.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • CVB Financial Corp (NASDAQ:CVBF) reported net earnings of $51 million or $0.37 per share for the third quarter of 2024, marking its 190th consecutive quarter of profitability.

  • The company declared a $0.20 per share dividend for the third quarter, continuing its streak of 140 consecutive quarters of cash dividends.

  • Return on average tangible common equity was strong at 14.93%, and return on average assets was 1.23% for the quarter.

  • Total revenue, excluding gains and losses, grew by 2.9% compared to the second quarter of 2024, driven by a $2.8 million increase in net interest income.

  • Nonperforming loans declined by $3 million, and the allowance for credit losses remained stable at approximately $83 million, indicating strong asset quality.

  • Total assets declined by approximately $750 million from the end of the second quarter of 2024 due to the early redemption of the bank term funding program borrowing.

  • Core non-interest expense increased by 3.8% or $2 million compared to the prior quarter, impacting overall profitability.

  • Loan demand, particularly in commercial real estate and construction, remains weak, with total loans decreasing by $109 million or 1% from the end of the second quarter.

  • Interest expense increased by $3.9 million over the prior quarter, reflecting a 9 basis points increase in the cost of funds.

  • The company sold more than $300 million of available-for-sale investment securities at a cumulative loss of $11.6 million, impacting financial results.

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