CVB Financial Corp. (NASDAQ:CVBF) Q2 2024 Earnings Conference Call July 25, 2024 10:30 AM ET

Company Participants

David A. Brager - President and Chief Executive Officer
Allen Nicholson - Executive Vice President and Chief Financial Officer

Conference Call Participants

Matthew Clark - Piper Sandler
Andrew Terrell - Stephens
Kelly Motta - KBW
Ahmad Hasan - D. A. Davidson
David Feaster - Raymond James

Operator

Good morning, ladies and gentlemen, and welcome to the Second Quarter of 2024 CVB Financial Corporation and its subsidiary Citizens Business Bank Earnings Conference Call. My name is Sherry, and I’m your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note this call is being recorded.

I would now like to turn the presentation over to your host for today’s call, Allen Nicholson, Executive Vice President and Chief Financial Officer. You may proceed.

Allen Nicholson

Thank you, Sherry, and good morning, everyone. Thank you for joining us today to review our financial results for the second quarter of 2024.

Joining me this morning is Dave Brager, President and Chief Executive Officer. Our comments today will refer to the financial information that was included in the earnings announcement released yesterday. To obtain a copy, please visit our website at www.cbbank.com and click on the Investors tab.

The speakers on this call claim the protection of the Safe Harbor provisions contained in the Private Securities Litigation Reform Act of 1995. For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from our forward-looking statements, please see the Company’s annual report on Form 10-K for the year ended December 31, 2023, and in particular, information set forth in item 1A Risk Factors therein. For a more complete version of the Company’s Safe Harbor disclosure, please see the Company’s earnings release issued in connection with this call.

I will now turn the call over to Dave Brager. Dave?

David A. Brager

Thank you, Allen. Good morning, everyone. For the second quarter of 2024, we reported net earnings of $50 million, or $0.36 per share, representing our 189th consecutive quarter of profitability. We previously declared a $0.20 per share dividend for the second quarter of 2024, representing our 139th consecutive quarter of paying a cash dividend to our shareholders. We produced a return on average tangible common equity of 15.51% and a return on average assets of 1.24% for the second quarter of 2024. Our net earnings of $50 million were $0.36 per share, compared with $48.6 million for the first quarter of 2024, or $0.35 per share and $55.8 million or $0.40 per share for the prior year quarter. The $1.4 million increase in earnings compared to the first quarter of 2024 was primarily due to a $3.3 million decrease in non-interest expense. Non-interest expense was impacted by the change in the estimated cost for the FDIC special assessment. Compared to the first quarter of 2024, non-interest expense related to the special assessment declined by $3 million.