CVB Financial (CVBF) Stock Forecast & Price Target

CVB Financial Corp is expected to witness an increase in earnings per share, with projections rising to $1.47 for 2025 and $1.51 for 2026, attributed to a higher net interest margin (NIM), better fees, and reduced non-interest expenses (NIE). The company's ability to manage non-performing assets (NPAs) and improve classified asset quality, particularly through upgrades in owner-occupied commercial real estate (OO-CRE), signals a strengthening financial position. Furthermore, the expectation of achieving low-single-digit NIE growth in FY25, alongside modest fee growth, enhances the overall outlook for the company's financial stability and performance.

CVB Financial's core noninterest income experienced a notable decline of 9% quarter-over-quarter, reflecting challenges in generating revenue beyond interest income, despite some isolated strength in BOLI and trust services. The net interest margin (NIM) decreased to 3.31%, driven by a small dip in average earning asset yields and a slight reduction in funding costs, suggesting pressure on overall profitability. Additionally, noninterest expenses (NIE) declined by 2.7%, indicating a potential erosion in operational efficiency during a period of typically higher seasonal costs, which may further impede financial stability.