-- Net income of $16.1 million for the first quarter of 2010
-- Diluted earnings per common share $0.15
-- Deposits, including customer repos, grew $864.5 million over March 31,
2009
-- Allowance for credit losses 3.20% of total CBB non-covered loans &
leases
ONTARIO, Calif.--(BUSINESS WIRE)-- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank ("the Company"), announced earnings for the first quarter of 2010.
CVB Financial Corp. reported net income of $16.1 million for the first quarter of 2010. This represents an increase of $2.9 million, or 22.42%, when compared with net income of $13.2 million for the first quarter of 2009. Diluted earnings per share were $0.15 for the first quarter of 2010. This was up $0.02, or 13.11%, from diluted earnings per share of $0.13 for the same period last year. First quarter operating results include a $12.2 million provision for credit losses and were impacted by the accounting treatment of credit-related transactions from the San Joaquin Bank ("SJB") loan portfolio as discussed below.
Net income for the first quarter of 2010 produced a return on beginning equity of 10.24%, a return on average equity of 10.07% and a return on average assets of 0.96%. The efficiency ratio, excluding the provision for credit losses, was 50.50% for the quarter. Operating expenses as a percentage of average assets were 2.13%.
Interest income on loans for the first quarter of 2010 totaled $67.8 million, which includes a $13.4 million discount accretion on covered loans acquired from SJB. This amount represents the discount recognized from the sale of two loans and principal payments on other loans. It is recorded as a yield adjustment in interest income. Excluding the discount accretion, interest income on loans would have been $54.4 million for the first quarter of 2010. This represents an increase of $4.9 million when compared to interest income on loans of $49.5 million during the same period last year.
The yield adjustment to interest income of $13.4 million was partially offset by a $10.6 million reduction in the FDIC loss sharing asset. This amount appears as a reduction of other operating income. We also recognized an other-than-temporary impairment on a private-label mortgage-backed investment security during the first quarter of 2010. The credit-impairment loss of $685,000 was recognized as an offset to other operating income.
Net interest income before the provision for credit loss and excluding the $13.4 million discount accretion on SJB covered loans was $60.0 million. This is record quarterly net interest income for the Company. "We are pleased with our top-line performance," said Chris Myers, President and CEO.
Net Interest Income and Net Interest Margin
Net interest income, before the provision for credit losses, totaled $73.3 million for the three months ending March 31, 2010. This represents an increase of $18.0 million, or 32.64%, compared to the same period in 2009. The increase resulted from an $11.6 million increase in interest income and a $6.4 million decrease in interest expense. The increase in interest income includes a $13.4 million yield adjustment to covered loans, partially offset by a decrease in interest income on investments due to a decrease in average investment balances of $397.2 million. The decrease in interest expense was primarily due to the decrease in average borrowed funds of $669.2 million.
Excluding the impact of the yield adjustment to covered loans, net interest margin (tax equivalent) increased from 3.74% for the first quarter of 2009 to 3.96% for the first quarter of 2010. Total average earning asset yields decreased from 5.26% for the first quarter of 2009 to 5.04% for the first quarter of 2010. The cost of funds decreased from 1.60% for the first quarter of 2009 to 1.13% for the first quarter of 2010.
"Our deleveraging strategy has positively impacted our net interest margin and reduced our sensitivity to a potential future rise in interest rates," said Chris Myers.
Assets
The Company reported total assets of $6.79 billion at March 31, 2010. This represented an increase of $48.9 million, or 0.73%, over total assets of $6.74 billion at December 31, 2009. Earning assets totaling $6.07 billion decreased $117.5 million, or 1.90%, when compared with earning assets of $6.18 billion at December 31, 2009. The decrease in earnings assets was due to a decrease in our loan portfolio. Total loans and leases of $3.95 billion at March 31, 2010 decreased $129.4 million, or 3.17% compared to $4.08 billion at December 31, 2009.
Investment Securities
Investment securities totaled $2.08 billion at March 31, 2010. This represents a decrease of $34.9 million, or 1.65%, when compared with $2.11 billion in investment securities at December 31, 2009.
Our investment portfolio continues to perform well. As of March 31, 2010 we had a net unrealized gain of $33.1 million. We have no preferred stock and no trust preferred securities. Virtually all of our mortgage-backed securities are issued by Freddie Mac or Fannie Mae, which have the guarantee of the U.S. Government. Except for the held-to-maturity bond discussed earlier in this press release, the remaining private-label mortgage-backed issues of approximately $27.0 million are performing well. Our municipal securities, totaling $656.0 million, are located throughout the United States, with approximately $41.2 million, or 6.3%, located within the state of California. All municipal bond securities are performing.
Deposits & Customer Repurchases
Total deposits and customer repos were $5.05 billion at March 31, 2010. This represents an increase of $130.0 million, or 2.64%, when compared with total deposits and customer repos of $4.92 billion at December 31, 2009. Our cost of total deposits was 0.48% for the three months ending March 31, 2010, compared to our cost of total deposits of 0.74% for the same period last year.
Borrowings
At March 31, 2010, we had $907.4 million in borrowings. This represents a decrease of $98.1 million, or 9.76%, from borrowings of $1.01 billion at December 31, 2009 and a decrease of $506.8 million, or 35.84%, from borrowings of $1.41 billion at March 31, 2009. As a result of the increase in deposits and customer repurchases, we continue to reduce our reliance on borrowed funds.
Asset Quality
We have separated the discussion of asset quality into two sections: non-covered loans and covered loans. The non-covered loans represent the legacy Citizens Business Bank loans and exclude all loans acquired in the SJB acquisition. The SJB loans are "covered" loans as defined in the loss sharing agreement with the FDIC. These loans have been marked to fair value and also have a guarantee by the FDIC. The allowance for credit losses as of March 31, 2010 pertains only to those loans made by Citizens Business Bank and not those acquired through the San Joaquin Bank transaction.
Citizens Business Bank Asset Quality (non-covered loans)
The allowance for credit losses increased from $108.9 million as of December 31, 2009 to $112.3 million as of March 31, 2010. The increase was primarily due to a provision for credit losses of $12.2 million during the first quarter of 2010, offset by net loan charge-offs of $8.8 million. By comparison, for the first quarter of 2009, the Company had net charge-offs of $10.2 million and a $22.0 million provision for credit losses. The allowance for credit losses was 3.20% and 1.80% of total loans and leases outstanding as of March 31, 2010 and 2009, respectively.
We had $76.8 million in non-performing loans at March 31, 2010, or 2.19% of total loans. This compares to non-performing loans of $69.8 million at December 31, 2009. The non-performing loans consist of $2.9 million in residential construction and land loans, $31.2 million in commercial construction loans, $13.7 million in single-family mortgage loans, $22.0 million in commercial real estate loans, $6.9 million in commercial loans and $123,000 in consumer loans.
At March 31, 2010, we had $15.2 million in Other Real Estate Owned ("OREO"). This represents an increase of $11.3 million from OREO of $3.9 million at December 31, 2009. At December 31, 2009, we had two OREO properties. During the first quarter of 2010, we added three properties for a total of $12.5 million to OREO. We sold two properties with an OREO value of $1.2 million for cash proceeds of $1.4 million. We now have three OREO properties.
At March 31, 2010, we had loans delinquent 30 to 89 days of $9.8 million. This compares to delinquent loans of $10.5 million at December 31, 2009. As a percentage of total loans, delinquencies, excluding non-accruals, were 0.28% at March 31, 2010 and 0.29% at December 31, 2009.
San Joaquin Bank Asset Quality (covered loans)
At March 31, 2010 we had $602.4 million in gross loans from SJB with a carrying value of $438.5 million. Of the gross loans, we have $161.6 million in non-accrual and $24.9 million in loans delinquent 30 to 89 days. Non-accrual loans represent 26.82% of gross loans and delinquent loans represent 4.14%. We have taken four properties into OREO totaling $10.0 million.
CitizensTrust
CitizensTrust has approximately $2.0 billion in assets under administration, including $1.0 billion in assets under management, as of March 31, 2010. This compares with $1.9 billion in assets under administration, including $1.0 billion in assets under management, at December 31, 2009. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.
Corporate Overview
CVB Financial Corp. is the holding company for Citizens Business Bank, a financial services company based in Ontario, California. Citizens Business Bank serves 42 cities with 44 business financial centers and 6 commercial banking centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California.
Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol of CVBF. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the CVB Investor tab.
Safe Harbor
Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plan and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic conditions and events and the impact they may have on us and our customers; ability to attract deposits and other sources of liquidity; oversupply of inventory and continued deterioration in values of California real estate, both residential and commercial; a prolonged slowdown in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; ability to repurchase our securities issued to the U.S. Treasury pursuant to its Capital Purchase Program; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, executive compensation and insurance) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; inflation, interest rate, securities market and monetary fluctuations; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of pandemic flu; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share and control expenses; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items and other factors set forth in the Company's public reports including its Annual Report on Form 10-K for the year ended December 31, 2009, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
March 31, December 31,
2010 2009 2009
Assets:
Cash and due from banks $ 281,275 $ 101,214 $ 103,254
Investment Securities 2,073,975 2,319,051 2,108,463
available-for-sale
Investment Securities 3,472 6,607 3,838
held-to-maturity
Federal funds sold and
Interest-bearing balances 50,193 285 1,226
due from depository
institutions
Investment in stock of
Federal Home Loan Bank 97,582 93,240 97,582
(FHLB)
Loans held-for-sale 2,621 - 1,439
Loans and lease finance 3,949,650 3,658,859 4,079,013
receivables
Less allowance for credit (112,321 ) (65,755 ) (108,924 )
losses
Net loans and lease finance 3,837,329 3,593,104 3,970,089
receivables
Total earning assets 6,065,172 6,012,287 6,182,637
Premises and equipment, net 41,519 44,015 41,444
Intangibles 11,811 10,231 12,761
Goodwill 55,097 55,097 55,097
Cash value of life insurance 110,331 107,134 109,480
FDIC loss sharing asset 119,108 - 133,258
Other assets 104,339 86,111 101,838
TOTAL $ 6,788,652 $ 6,416,089 $ 6,739,769
Liabilities and
Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits $ 1,598,022 $ 1,396,087 $ 1,561,981
(noninterest-bearing)
Investment Checking 473,287 324,187 469,413
Savings/MMDA 1,223,217 910,571 1,213,002
Time Deposits 1,224,073 1,154,420 1,194,258
Total Deposits 4,518,599 3,785,265 4,438,654
Demand Note to U.S. Treasury 4,232 5,737 2,425
Customer Repurchase 535,214 404,016 485,132
Agreements
Repurchase Agreements 250,000 250,000 250,000
Borrowings 653,186 1,158,500 753,118
Junior Subordinated 115,055 115,055 115,055
Debentures
Other liabilities 59,601 71,155 57,157
Total Liabilities 6,135,887 5,789,728 6,101,541
Stockholders' equity:
Stockholders' equity 619,641 591,355 611,838
Accumulated other
comprehensive income
(loss), net of tax 33,124 35,006 26,390
652,765 626,361 638,228
TOTAL $ 6,788,652 $ 6,416,089 $ 6,739,769
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended March 31,
2010 2009
Assets:
Cash and due from banks $ 264,268 $ 95,339
Investment securities available-for-sale 2,084,660 2,496,590
Investment securities held-to-maturity 3,658 6,692
Federal funds sold and Interest-bearing 13,749 285
balances due from depository institutions
Investment in stock of Federal Home Loan Bank 97,582 93,240
(FHLB)
Loans held-for-sale 2,143 -
Loans and lease finance receivables 4,011,896 3,680,258
Less allowance for credit losses (114,536 ) (60,323 )
Net loans and lease finance receivables 3,897,360 3,619,935
Total earning assets 6,099,152 6,216,742
Premises and equipment, net 41,431 44,542
Intangibles 12,237 10,519
Goodwill 55,097 55,097
Cash value of life insurance 109,780 106,708
FDIC loss sharing asset 133,141 -
Other assets 122,621 81,741
TOTAL $ 6,837,727 $ 6,610,688
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 1,574,633 $ 1,342,229
Interest-bearing 2,905,302 2,260,850
Total Deposits 4,479,935 3,603,079
Other borrowings 1,540,496 2,209,679
Junior Subordinated Debentures 115,055 115,055
Other liabilities 53,150 59,156
Total Liabilities 6,188,636 5,986,969
Stockholders' equity:
Stockholders' equity 622,627 594,919
Accumulated other comprehensive income
(loss), net of tax 26,464 28,800
649,091 623,719
TOTAL $ 6,837,727 $ 6,610,688
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the Three Months
Ended March 31,
2010 2009
Interest Income:
Loans held-for-sale $ 18 $ -
Loans and leases, including fees 67,750 49,526
Investment securities:
Taxable 16,084 22,436
Tax-advantaged 6,532 6,996
Total investment income 22,616 29,432
Dividends from FHLB Stock 66 -
Federal funds sold & Interest-bearing CDs
with other 102 4
institutions
Total interest income 90,552 78,962
Interest Expense:
Deposits 5,288 6,590
Borrowings and junior subordinated 11,925 17,080
debentures
Total interest expense 17,213 23,670
Net interest income before provision for 73,339 55,292
credit losses
Provision for credit losses 12,200 22,000
Net interest income after
provision for credit losses 61,139 33,292
Other Operating Income:
Impairment loss on investment securities (98 ) -
Plus: Portion of loss reclassified from
(587 ) -
other comprehensive income
Net impairment loss on investment
securities (685 ) -
recognized in earnings
Service charges on deposit accounts 4,264 3,717
Trust and investment services 2,118 1,661
Gain on sale of investment securities - 8,929
Reduction in FDIC loss sharing asset (10,583 ) -
Other 2,675 2,050
Total other operating income (expense) (2,211 ) 16,357
Other operating expenses:
Salaries and employee benefits 18,073 15,819
Occupancy 3,133 2,851
Equipment 1,919 1,597
Professional services 2,807 1,695
Amortization of intangible assets 950 789
Provision for unfunded commitments 950 900
OREO Expense 13 1,031
Other 8,077 6,715
Total other operating expenses 35,922 31,397
Earnings before income taxes 23,006 18,252
Income taxes 6,887 5,084
Net earnings $ 16,119 $ 13,168
Basic earnings per common share $ 0.15 $ 0.13
Diluted earnings per common share $ 0.15 $ 0.13
Cash dividends per common share $ 0.085 $ 0.085
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Three months ended March 31,
2010 2009
Interest income - (Tax-Effected) $ 93,236 $ 81,808
(te)
Interest Expense 17,213 23,670
Net Interest income - (te) $ 76,023 $ 58,138
Return on average assets 0.96 % 0.81 %
Return on average equity 10.07 % 8.56 %
Efficiency ratio 60.96 % 63.24 %
Net interest margin (te) excluding 3.96 % 3.74 %
discount
Weighted average shares outstanding
Basic 105,928,593 83,174,373
Diluted 106,121,135 83,303,201
Dividends declared $ 9,035 $ 7,083
Dividend payout ratio 56.05 % 53.79 %
Number of shares outstanding-EOP 106,293,270 83,326,511
Book value per share $ 6.14 $ 6.04
March 31,
2010 2009
(Non-covered loans)
Non-performing Assets (dollar
amount in thousands):
Non-accrual loans $ 76,840 $ 48,037
Loans past due 90 days or more
and still accruing interest - -
Other real estate owned (OREO), net 15,178 8,666
Total non-performing assets $ 92,018 $ 56,703
Percentage of non-performing assets
to total loans outstanding and OREO 2.61 % 1.55 %
Percentage of non-performing
assets to total assets 1.36 % 0.88 %
Allowance for loan losses to
non-performing assets 122.06 % 115.96 %
Net Charge-off to Average loans 0.25 % 0.28 %
Allowance for Credit Losses:
Beginning Balance $ 108,924 $ 53,960
Total Loans Charged-Off (8,931 ) (10,304 )
Total Loans Recovered 128 99
Net Loans Charged-off (8,803 ) (10,205 )
Provision Charged to Operating 12,200 22,000
Expense
Allowance for Credit Losses at End $ 112,321 $ 65,755
of period
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
Quarterly
Common Stock
Price
2010 2009 2008
Quarter End High Low High Low High Low
March 31, $ 10.89 $ 8.44 $ 12.11 $ 5.31 $ 11.45 $ 8.40
June 30, $ 7.77 $ 5.69 $ 12.62 $ 9.18
September $ 8.70 $ 4.90 $ 20.00 $ 7.12
30,
December 31, $ 9.00 $ 6.93 $ 14.75 $ 8.58
Quarterly
Consolidated
Statements
of Earnings
1Q 4Q 3Q 2Q 1Q
2010 2009 2009 2009 2009
Interest
income
Loans,
including $ 67,768 $ 56,222 $ 50,561 $ 49,771 $ 49,526
fees
Investment
securities 22,784 23,881 25,358 26,004 29,436
and federal
funds sold
90,552 80,103 75,919 75,775 78,962
Interest
expense
Deposits 5,288 5,993 5,934 6,439 6,590
Other 11,925 16,039 15,179 15,241 17,080
borrowings
17,213 22,032 21,113 21,680 23,670
Net interest
income
before
provision
for credit 73,339 58,071 54,806 54,095 55,292
losses
Provision
for credit 12,200 25,500 13,000 20,000 22,000
losses
Net interest
income after
provision
for credit 61,139 32,571 41,806 34,095 33,292
losses
Non-interest (2,211 ) 29,903 15,102 19,709 16,357
income
Non-interest 35,922 39,365 29,845 32,979 31,397
expenses
Earnings
before 23,006 23,109 27,063 20,825 18,252
income taxes
Income taxes 6,887 6,041 7,741 4,964 5,084
Net earnings $ 16,119 $ 17,068 $ 19,322 $ 15,861 $ 13,168
Basic
earning per $ 0.15 $ 0.16 $ 0.10 $ 0.17 $ 0.13
common share
Diluted
earnings per $ 0.15 $ 0.16 $ 0.10 $ 0.17 $ 0.13
common share
Cash
dividends $ 0.085 $ 0.085 $ 0.085 $ 0.085 $ 0.085
per common
share
Dividends $ 9,035 $ 9,054 $ 9,012 $ 7,079 $ 7,083
Declared
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Distribution
of Loan
Portfolio
3/31/2010 12/31/2009 9/30/2009 6/30/2009 3/31/2009
Commercial
and $ 471,071 $ 475,517 $ 385,274 $ 372,162 $ 355,591
Industrial
Real Estate:
Construction 351,567 401,509 295,315 303,629 333,234
Commercial 2,318,905 2,346,784 1,959,725 1,964,258 1,965,531
Real Estate
SFR Mortgage 261,676 283,053 290,831 306,225 328,145
Consumer 74,308 78,759 67,317 67,947 69,708
Municipal
lease 156,392 160,565 162,962 165,527 169,230
finance
receivables
Auto and
equipment 27,546 30,337 34,072 37,242 41,708
leases
Dairy and 458,057 493,451 411,574 405,427 404,090
Livestock
Gross Loans 4,119,522 4,269,975 3,607,070 3,622,417 3,667,237
Less:
Purchase
Accounting (163,842 ) (184,419 )
Discount
Deferred net (6,030 ) (6,543 ) (6,983 ) (7,661 ) (8,378 )
loan fees
Allowance
for credit (112,321 ) (108,924 ) (87,316 ) (74,755 ) (65,755 )
losses
Net Loans $ 3,837,329 $ 3,970,089 $ 3,512,771 $ 3,540,001 $ 3,593,104
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Non-Performing
Assets &
Delinquency
Trends
(Non-Covered
Loans)
March 31, December September June 30, March 31,
31, 30,
2010 2009 2009 2009 2009
Non-Performing
Loans
Residential
Construction $ 2,855 $ 13,843 $ 15,729 $ 17,348 $ 20,943
and Land
Commercial 31,216 23,832 19,636 21,270 22,102
Construction
Residential 13,726 11,787 8,102 4,632 2,203
Mortgage
Commercial Real 22,041 17,129 13,522 7,041 1,661
Estate
Commercial and 6,879 3,173 1,045 859 792
Industrial
Consumer 123 15 100 115 336
Total $ 76,840 $ 69,779 $ 58,134 $ 51,265 $ 48,037
% of Total 2.19 % 1.93 % 1.61 % 1.42 % 1.31 %
Loans
Past Due 30-89
Days
Residential
Construction $ - $ - $ - $ - $ -
and Land
Commercial - - - - -
Construction
Residential 3,746 4,921 1,510 2,069 3,814
Mortgage
Commercial Real 3,286 2,407 190 1,074 8,341
Estate
Commercial and 2,714 2,973 5,094 590 1,720
Industrial
Dairy & - - - 3,551 -
Livestock
Consumer 28 239 87 8 62
Total $ 9,774 $ 10,540 $ 6,881 $ 7,292 $ 13,937
% of Total 0.28 % 0.29 % 0.19 % 0.20 % 0.38 %
Loans
OREO
Residential
Construction $ 11,113 $ - $ 1,137 $ 1,789 $ 2,416
and Land
Commercial - - - - -
Construction
Commercial Real 3,746 3,936 - 1,187 4,612
Estate
Commercial and - - - 893 893
Industrial
Residential 319 - - - 745
Mortgage
Consumer - - - 166 -
Total $ 15,178 $ 3,936 $ 1,137 $ 4,035 $ 8,666
Total
Non-Performing, $ 101,792 $ 84,255 $ 66,152 $ 62,592 $ 70,640
Past Due & OREO
% of Total 2.90 % 2.33 % 1.84 % 1.73 % 1.93 %
Loans
Net interest income and net interest margin reconciliations (Non-GAAP)
We use certain non-GAAP financial measures to provide supplemental information
regarding our performance. The first quarter of 2010 net interest income and
net interest margin include a yield adjustment of $13.4 million from discount
accretion on covered loans. We believe that presenting the net interest income
and net interest margin excluding the yield adjustment provides additional
clarity to the users of financial statements regarding core net interest income
and net interest margin.
Quarter-to-date March 31, 2010
( amounts in thousands )
Average Volume Interest Yield
Total interest-earning assets $ 6,213,688 $ 90,552 6.06 %
Less:
Yield adjustment to interest income 188,812 13,378
from discount accretion
Total interest-earning assets,
excluding SJB loan discount and yield $ 6,402,500 $ 77,174 5.04 %
adjustment
Net interest income and net interest $ 73,339 4.95 %
margin
Less:
Yield adjustment to interest income 13,378
from discount accretion
Net interest income and net interest $ 59,961 3.96 %
margin, excluding yield adjustment
Source: CVB Financial Corp.Contact: CVB Financial Corp. Christopher D. Myers, President and CEO 909-980-4030