CVB Financial (CVBF) risk factors, 2025 10-K

Other

1. 01Our allowance for credit losses may not be sufficient to cover actual losses
2. 02We may be required to make additional provisions for credit losses and charge-off additional loans in the future, which could adversely affect our results of operations
3. 03Our dairy & livestock and agribusiness lending presents unique credit risks
4. 04Our loan portfolio is predominantly secured by real estate in California and thus we have a higher degree of credit risk from a downturn in our real estate markets
5. 05Our commercial real estate loan portfolio exposes us to risks that may be greater than the risks related to our other loans
6. 06We are exposed to risk of environmental liabilities with respect to properties to which we take title
7. 07Liquidity risk could impair our ability to fund operations and jeopardize our financial condition
8. 08Negative developments affecting the banking industry could adversely impact our liquidity
9. 09The actions and commercial soundness of other financial institutions could affect our ability to engage in routine funding transactions
10. 10We may not be able to maintain a strong core deposit base or other low-cost funding sources
11. 11Our business is subject to interest rate risk and variations in interest rates may negatively affect our financial performance
12. 12Elevated interest rates have decreased the market value of the Company’s available for sale and held-to-maturity securities and loan portfolios, and the Company would realize losses if it were required to sell such securities or loans to meet liquidity needs
13. 13Hedging against interest rate exposure may adversely affect our earnings

Operational Risks

1. 14We face risks related to our operational, technological and organizational infrastructure
2. 15interface with our customers and to manage our internal financial records and other systems. Any shortcomings in our technology systems subjects us to risk of misconduct by our employees that may go undetected
3. 16Failure to manage our growth may adversely affect our performance
4. 17Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits from an acquisition could have a material adverse effect on our business, financial condition and results of operations
5. 18Our business is exposed to the risk of changes in technology
6. 19Our controls and procedures could fail or be circumvented
7. 20Failure to maintain effective internal control over financial reporting or disclosure controls and procedures could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis
8. 21We rely on communications, information, operating and financial control systems technology from third-party service providers, and we may suffer an interruption in those systems
9. 22We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects
10. 23If our enterprise risk management framework is not effective at mitigating risk and loss to us, we could suffer unexpected losses and our results of operations could be materially adversely affected
11. 24Changes in stock market prices could reduce fee income from our brokerage, asset management and investment advisory businesses
12. 25Our accounting estimates and risk management processes rely on analytical and forecasting models
13. 26Our decisions regarding the fair value of assets acquired could be different than initially estimated, which could materially and adversely affect our business, financial condition, results of operations, and future prospects
14. 27If the goodwill that we recorded in connection with business acquisitions becomes impaired, it could require charges to earnings, which would have a negative impact on our financial condition and results of operations

Strategic and External Risks

1. 28Changes in economic, market and political conditions can adversely affect our liquidity, results of operations and financial condition
2. 29Further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations, may result in changes in applicable rates of interest, difficulty in accessing capital or an inability to borrow on favorable terms or at all from other financial institutions
3. 30Our earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies
4. 31Future legislation, regulatory reform or policy changes could have a material effect on our business and results of operations
5. 32We face strong competition from financial services companies and other companies that offer banking services
6. 33Consumers may decide not to use banks to complete their financial transactions
7. 34Climate change and climate change regulation could have a material adverse effect on us and our customers

Legal, Regulatory, Compliance and Reputational Risks

1. 35We are subject to extensive government regulation that could limit or restrict our activities, which, in turn, may hamper our ability to increase our assets and earnings
2. 36Any enhanced regulatory examination scrutiny or new regulatory requirements arising from recent events in the banking industry could increase the Company’s expenses and affect the Company’s operations and acquisition opportunities
3. 37We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations
4. 38The impact of current capital rules may materially affect our operations
5. 39Increasing scrutiny and evolving expectations from regulators, customers, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks
6. 40Managing reputational risk is important to attracting and maintaining customers, investors and employees
7. 41We depend on the accuracy and completeness of information provided by customers and counterparties
8. 42We are subject to legal and litigation risk which could adversely affect us
9. 43The price of our common stock may be volatile or may decline
10. 44domestic and international economic factors, whether related or unrelated to the Company’s performance
11. 45An investment in our common stock is not an insured deposit
12. 46Our common stock is subordinate to our existing and future indebtedness and preferred stock
13. 47Anti-takeover provisions and federal law may limit the ability of another party to acquire us, which could cause our stock price to decline
14. 48We could reduce or discontinue the payment of dividends on our common stock