CVB Financial reports Q2 2026 results with Heritage acquisition adding $5.7B in assets

CVB Financial Corp. issued a press release disclosing its financial results for the second quarter ended June 30, 2026. The 8-K does not provide the actual financial figures in the body text; those details are contained in the attached Exhibit 99.1 press release. The filing also announces information about a quarterly conference call and webcast for investors.

CVB Financial closed its acquisition of Heritage Commerce Corp on April 17, 2026, adding $3.4 billion in loans and $4.7 billion in deposits ($1.2B noninterest-bearing, $3.5B interest-bearing). The deal created $450.7 million in intangible assets including $334.1 million of goodwill. The company incurred $31.4 million in acquisition expenses during the quarter and recorded a $4.25 million provision for unfunded loan commitments related to the acquired portfolio. The systems conversion was completed during the second quarter.

CVB Financial reported Q2 2026 net income of $48.3 million, or $0.29 per diluted share, down from $51.0 million ($0.38 per share) in Q1 2026 and $50.6 million ($0.37 per share) in Q2 2025. The sequential decline reflects $31.4 million in acquisition expenses related to the Heritage merger.

Net interest margin expanded to 3.72% in Q2 2026, up 28 basis points from 3.44% in Q1 2026 and up 41 basis points from 3.31% in Q2 2025. The improvement was driven by higher-yielding assets acquired from Heritage, including a factored receivables portfolio with an 18.04% average yield. Average loan yields increased 21 basis points and investment securities yields rose 11 basis points quarter-over-quarter.

Nonperforming loans increased to $16.6 million (0.14% of total loans) at June 30, 2026, from $6.1 million (0.07%) at March 31, 2026. The increase was primarily due to 12 new nonperforming commercial and industrial loans totaling $6.2 million and three nonperforming commercial real estate loans totaling $4.3 million. Total nonperforming assets were $16.8 million, or 0.08% of total assets. The allowance for credit losses to nonperforming assets ratio was 752%.

CVB Financial closed its acquisition of Heritage Commerce Corp and Heritage Bank of Commerce on April 17, 2026, following shareholder approval on March 26, 2026 and regulatory approval on April 1, 2026. The core system conversion was completed on June 22, 2026, 187 days after the initial announcement. The transaction added 16 business financial centers in the Bay Area and approximately $5.7 billion in assets.

For Q2 2026, CVB reported net income of $48.3 million ($0.29 per diluted share), which included $31.4 million in acquisition-related expenses and a $4.25 million provision for unfunded loan commitments. Core net income was $73.4 million. Net interest margin expanded to 3.72%, total assets exceeded $21 billion, and the company achieved $477 million in organic loan growth. Average noninterest deposits represented over 52% of total deposits, with a cost of deposits and customer repos of 0.86%.

CVB acquired $5.7 billion in total assets from Heritage on April 17, 2026, including $3.1 billion in net loans (after restructuring $327 million in loans held for sale), $528 million in investment securities (after selling $488 million), and $1.4 billion in cash. The transaction added $4.8 billion in deposits, $334 million in goodwill, and $117 million in core deposit intangible. The restructuring converted $815 million of securities proceeds into cash.

On June 15, 2026, CVB's Board authorized a share repurchase program for up to 15 million shares. As of July 21, 2026, the company had repurchased 409,000 shares for $8.9 million. Total shares outstanding increased from 135.8 million at March 31, 2026 to 176.1 million at July 21, 2026, primarily due to the issuance of 40.6 million shares to Heritage shareholders as merger consideration.

CVB maintained strong asset quality with nonperforming assets at 0.08% of total assets ($16.8 million), classified loans at 0.91% of total loans ($110 million), and an allowance for credit losses of 1.05% of total loans ($127 million). Capital ratios remained robust with a CET1 ratio of 14.7%, total risk-based capital ratio of 15.8%, and tangible common equity ratio of 9.8%, all well above regulatory minimums despite the Heritage acquisition impact.