CVBF - CVB Financial: Navigating Through A Tough CRE Backdrop

2024-03-15 13:55:21 ET

Summary

• CVB Financial Corp. has seen a 25% decline in its shares since December 2023 due to concerns about the regional bank sector.
• Despite this, CVB Financial had its second most profitable year in 2023 and has been consistently profitable since 1977.
• The bank has a conservative approach, targeting privately held businesses in California, but its high exposure to commercial real estate is a concern.
• With low valuations, a nearly five percent dividend yield, and recent insider buying; the stock merited further investigation.
• A full investment analysis of CVB Financial follows in the paragraphs below.

Shares of California bank holding company CVB Financial Corp. ( CVBF ) have fallen some 20% since December 2023 on a plethora of nagging concerns regarding the regional bank sector. That said, 2023 was the business-centric bank's second most profitable year in its history, and it has been in the black every quarter since 1977. With a 4.8% dividend yield but 76% of its loan portfolio in commercial real estate, the recent insider buying merited a deeper dive. An analysis follows below....

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