CVB Financial Corp.

Second-quarter 2026 net earnings were $48.3 million, or $0.29 per share, compared with $51.0 million, or $0.38 per share, in Q1 2026 and $50.6 million, or $0.37 per share, in Q2 2025. Pretax income was $65.0 million versus $68.6 million in Q1 2026; excluding $31.4 million of acquisition expense and a $4.25 million provision for unfunded commitments, pretax income would have been $100.7 million. Net interest income rose by $44.6 million sequentially, supported by a 28 basis point expansion in net interest margin. Noninterest income was $17.0 million versus $14.3 million in Q1, and noninterest expense was $114.4 million including acquisition costs. Total assets increased to $21.2 billion from $15.5 billion at March 31, largely due to the Heritage acquisition; loans were $12.1 billion versus $8.64 billion, and deposits and customer repurchase agreements were $16.9 billion versus $12.4 billion. Forward-looking, management said Q3 will still include some acquisition-related noise, though less than Q2, and Q4 should be fairly clean. Allen Nicholson said they expect to achieve 90% to 95% of the promised cost saves by the fourth quarter, with full realization by the beginning of 2027. The company reiterated its long-term deal objectives of EPS accretion of 13% or greater in 2027, a 1.50% return on hedge assets, and a 17% return on tangible common equity.

Dave Brager emphasized that the Heritage acquisition and systems conversion were executed successfully and that the combined company now has greater lending capacity and a broader platform across California. He said loan pipelines remain strong, loan demand is healthy, and the merger expands opportunities in the Bay Area and across former Heritage markets. His tone was constructive and confident, but he also acknowledged pricing pressure, rate volatility, and the need to keep focusing on credit quality.

Allen Nicholson focused on the balance sheet, funding, and capital effects of the merger. He noted that total assets rose to $21.2 billion, the acquisition brought roughly $845 million of consideration and about $450 million of intangible assets including $334 million of goodwill, and the ACL increased to $126.7 million from $80.2 million, lifting ACL/loans to 1.05% from 0.93%. He also said overall cost of funds improved slightly to 0.96% from 0.97%, tangible book value per share was $11.07, tangible common equity was 9.8%, and CET1 was 14.7%; the company repurchased 409,000 shares for $8.9 million through July 21 under a newly authorized $15 million buyback.

Analysts focused on the accretion from the merger, the pace of cost saves, margin outlook, loan growth, and capital deployment. Management said the Q2 earnings included about $2.7 million specifically tied to the merger, that Q3 will still have elevated acquisition expense but less than Q2, and that the full expense-synergy benefit will not be visible until the beginning of 2027. They also said loan pipelines remain strong despite competition and higher rates, and that they are evaluating buybacks and dividends while keeping an eye on ROAA and ROATCE.