...Ratings Affirmed: Fitch Ratings reviewed CVB Financial's (CVB) ratings during its annual community bank peer review. CVB's ratings and outlook were affirmed, reflecting improved credit metrics and financial performance in line with expectations and solid capital measures. Consistently Profitable: CVB's earnings continue to remain among the highest and most consistent within the community bank peer group. The company's ROA over the past five quarters has averaged nearly 1.54%, driven by a fairly stable NIM and good cost controls. CVB has maintained nearly 150 quarters of profitability. Spread Reliance Constrains Ratings: Fitch observes that CVB's earning profile continues to consist primarily of spread income, which constrains its rating. Net interest income for 1Q14 accounted for around 87% of core revenue, compared to the community bank average of between 70%¡75%. This presents an elevated risk of earnings deterioration in the event of material NIM compression. NPAs Elevated but Improving:...
