Regional bank holding company CVB Financial (NASDAQ: CVBF) fell short of the market’s revenue expectations in Q3 CY2025 as sales only rose 1.7% year on year to $128.6 million. Its non-GAAP profit of $0.38 per share was 2.7% above analysts’ consensus estimates.
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CVB Financial (CVBF) Q3 CY2025 Highlights:
- Net Interest Income: $115.6 million vs analyst estimates of $116 million (1.7% year-on-year growth, in line)
- Net Interest Margin: 3.3% vs analyst estimates of 3.4% (2.8 basis point miss)
- Revenue: $128.6 million vs analyst estimates of $130.2 million (1.7% year-on-year growth, 1.2% miss)
- Efficiency Ratio: 45.6% vs analyst estimates of 44.9% (74.2 basis point miss)
- Adjusted EPS: $0.38 vs analyst estimates of $0.37 (2.7% beat)
- Tangible Book Value per Share: $10.98 vs analyst estimates of $10.87 (7.9% year-on-year growth, 1% beat)
- Market Capitalization: $2.58 billion
David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank’s performance in the third quarter demonstrates our continued financial strength and focus on our vision of serving the comprehensive financial needs of small to medium sized businesses and their owners. Our consistent financial performance is highlighted by our 194 consecutive quarters, or more than 48 years, of profitability, and our 144 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”
Company Overview
With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Over the last five years, CVB Financial grew its revenue at a tepid 1.6% compounded annual growth rate. This fell short of our benchmarks and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. CVB Financial’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 4.9% annually. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, CVB Financial’s revenue grew by 1.7% year on year to $128.6 million, falling short of Wall Street’s estimates.
Net interest income made up 79.5% of the company’s total revenue during the last five years, meaning lending operations are CVB Financial’s largest source of revenue.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
CVB Financial’s TBVPS grew at a tepid 3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 14.4% annually over the last two years from $8.39 to $10.98 per share.
Over the next 12 months, Consensus estimates call for CVB Financial’s TBVPS to grow by 6.4% to $11.69, mediocre growth rate.
Key Takeaways from CVB Financial’s Q3 Results
It was good to see CVB Financial narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its revenue slightly missed and its EPS slightly exceeded Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 1.2% to $18.40 immediately after reporting.
CVB Financial’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
