Headquartered in Ontario, California, CVB Financial Corporation (CVBF) is a $13.8 billion asset holding company and parent to Citizens Business Bank. While primarily located in the Southern California region, CVBF offers a wide range of financial services through its 58 branch locations and three trust offices. While size and scale are very advantageous factors when determining the root causes of success in the banking world, CVBF has managed to carve out a very reputable commercial real estate (CRE) lending franchise. With more than 64% of its portfolio associated with either owner-occupied CRE or non-owner occupied CRE, the bank has a solid grasp on the credit underwriting associated with buildings and real estate loans. Because the combined CRE portfolio has a weighted average of 52% loan to value, I would contend that CVBF is one of the best underwritten banks in the nation.
When thinking about the bank’s valuation,