CVB FINANCIAL CORP Leases Disclosure
21. LEASES
All of the Company’s operating leases, where the Company is a lessee, are for real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings. Right-of-use (“ROU”) assets and lease liabilities are included in other assets and other liabilities, respectively, on the Company’s consolidated balance sheet.
While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements.
The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.
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December 31, |
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2025 |
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2024 |
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(Dollars in thousands) |
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Lease Assets and Liabilities |
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ROU assets |
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$ |
43,786 |
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$ |
47,117 |
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|
46,537 |
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49,617 |
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Year Ended December 31, |
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2025 |
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2024 |
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(Dollars in thousands) |
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Lease Cost |
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Operating lease expense (1) |
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$ |
10,277 |
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$ |
8,109 |
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Sublease income |
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— |
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— |
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Total lease expense |
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$ |
10,277 |
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$ |
8,109 |
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Other Information |
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Cash paid for amounts included in the |
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Operating cash outflows from operating |
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$ |
9,772 |
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$ |
8,094 |
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December 31, |
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2025 |
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2024 |
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Lease Term and Discount Rate |
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Weighted average remaining lease term |
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9.92 |
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9.99 |
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Weighted average discount rate |
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6.13 |
% |
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5.95 |
% |
During the third and fourth quarters of 2024, the Bank executed sale-leaseback transactions with the sale of four properties for an aggregate sale price of $47.1 million, resulting in a pre-tax net gain of $25.9 million and cash proceeds of $44.76 million. The Bank simultaneously entered into lease agreements with the respective purchasers for initial terms of and 18 years with specified renewal options for each respective lease. The Bank also recorded ROU assets and corresponding of $26.8 million.
The Company’s lease arrangements that have not yet commenced as of December 31, 2025 and the Company’s short-term lease costs and variable lease costs, for the year ended December 31, 2025 are not material to the consolidated financial statements. The future lease payments required for leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2025, excluding property taxes and insurance, are as follows:
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December 31, 2025 |
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(Dollars in thousands) |
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Year: |
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2026 |
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$ |
9,858 |
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2027 |
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8,664 |
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2028 |
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|
6,887 |
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2029 |
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5,122 |
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2030 |
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4,386 |
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Thereafter |
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29,656 |
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Total future lease payments |
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64,573 |
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Less: Imputed interest |
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(18,036 |
) |
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$ |
46,537 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.