-- Record net interest income, before provision for credit losses, of
$222.3 million
-- Net income of $65.4 million for 2009
-- Diluted earnings per common share $0.56 (Reduced by $0.14 due to TARP
preferred stock dividends)
-- Deposits, including customer repos, grew $1.06 billion over December 31,
2008
-- Allowance for credit losses 3.02% of total CBB loans & leases
ONTARIO, Calif.--(BUSINESS WIRE)-- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank ("the Company"), announced earnings for the year ended December 31, 2009.
CVB Financial Corp. reported net income of $65.4 million for the year ended December 31, 2009. This represents an increase of $2.3 million, or 3.72%, when compared with net income of $63.1 million for the year ended December 31, 2008. Diluted earnings per share were $0.56 for the year ended December 31, 2009. This was down $0.19, or 24.55%, from diluted earnings per share of $0.75 for the same period last year.
Chris Myers, President and CEO, commented, "We achieved several goals in 2009: we raised $132.5 million in capital, re-paid all of our TARP funds, acquired San Joaquin Bank, increased our allowance for loan losses by $55 million and had substantial organic deposit growth. All of these efforts contributed to strengthening the Bank and helped us grow and prosper in this challenging environment."
Net income for the year ended December 31, 2009 produced a return on beginning equity of 10.64%, a return on average equity of 10.00% and a return on average assets of 0.98%. The efficiency ratio, excluding the provision for credit losses, the gain on sale of securities, and the gain on acquisition, was 52.64% for the year. Operating expenses as a percentage of average assets were 2.01%.
The Company reported net income of $17.1 million for the fourth quarter ending December 31, 2009. This represented an increase of $4.8 million, or 39.02%, when compared with the $12.3 million in net income reported for the fourth quarter of 2008. Diluted earnings per share were $0.16 for the fourth quarter of 2009. This was up $0.02 from diluted earnings per share of $0.14 for the fourth quarter of 2008. The excess of the acquired assets over assumed liabilities resulted in an after-tax gain of $12.3 million. Fourth quarter operating results also include a $25.5 million provision for credit losses.
Net income for the fourth quarter of 2009 produced a return on beginning equity of 10.39%, a return on average equity of 9.99% and a return on average assets of 0.97%. The efficiency ratio, excluding the provision for credit losses and the gain on acquisition, was 58.88%. Operating expenses as a percentage of average assets were 2.25%.
Net Interest Income and Net Interest Margin
Net interest income, before the provision for credit losses, totaled $222.3 million for the year ended December 31, 2009. "This represents the highest net interest income in the history of the Company, demonstrating our ability to continue to grow top-line income," said Chris Myers. This represents an increase of $28.6 million, or 14.76%, compared to the same period in 2008. The increase resulted from a $50.3 million decrease in interest expense which overshadowed a $21.7 million decrease in interest income. The decrease in interest income was primarily due to the decrease in interest rates. The decrease in interest expense was due to the decrease in the interest rates paid on deposits and borrowed funds, combined with a decrease in average borrowed funds of $670.0 million.
Net interest income, before provision for credit losses, totaled $58.1 million for the fourth quarter of 2009. This represents an increase of $6.0 million, or 11.56%, over net interest income of $52.1 million for the same period in 2008. The increase resulted from a $8.7 million decrease in interest expense, which overshadowed a $2.7 million decrease in interest income.
Net interest margin (tax equivalent) increased from 3.41% for the year ended December 31, 2008 to 3.75% for the year ended December 31, 2009. Total average earning asset yields decreased from 5.71% for 2008 to 5.17% for 2009. Total cost of funds decreased from 2.36% for 2008 to 1.49% for 2009. The increase in net interest margin is due to the cost of interest-bearing liabilities decreasing faster than the decrease in yields on earning assets.
Net interest margin (tax equivalent) increased from 3.62% for the fourth quarter of 2008 to 3.80% for the fourth quarter of 2009. Total average earning asset yields decreased from 5.60% for the fourth quarter of 2008 to 5.15% for the fourth quarter of 2009. The cost of funds decreased from 2.04% for the fourth quarter of 2008 to 1.39% for the fourth quarter of 2009.
Assets
The Company reported total assets of $6.74 billion at December 31, 2009. This represented an increase of $90.1 million, or 1.36%, over total assets of $6.65 billion at December 31, 2008. Earning assets totaling $6.17 billion decreased $109.5 million, or 1.74%, when compared with earning assets of $6.28 billion at December 31, 2008. The decrease in earnings assets was due to a decrease in our investment portfolio. See discussion below. Total loans and leases of $4.06 billion at December 31, 2009 increased $326.8 million, or 8.75% compared to $3.74 billion at December 31, 2008. The increase in loans was due to the SJB acquisition, which contributed $455.3 million (carrying value).
Investment Securities
Investment securities totaled $2.11 billion at December 31, 2009. This represents a decrease of $388.0 million, or 15.52%, when compared with $2.50 billion in investment securities at December 31, 2008. During 2009, we sold certain securities with relatively short maturities and recognized a gain on sale of securities of $28.4 million. We also recognized an other-than-temporary impairment on a private-label mortgage-backed investment security. The total impairment of $2.0 million was reduced by $1.7 million for the non-credit portion which was reflected in other comprehensive income. The remaining $323,000 loss was recognized as an offset to other operating income.
Our investment portfolio continues to perform well. As of December 31, 2009 we had an unrealized gain of $26.4 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 bond discussed above, the remaining private-label mortgage-backed issues of approximately $30.4 million are performing well. Our municipal securities, totaling $663.4 million, are located throughout the United States, with approximately $40.8 million, or 6.1%, located within the state of California. All municipal bond securities are fully performing.
Deposits & Customer Repurchases
Total deposits and customer repos were $4.92 billion at December 31, 2009. This represents an increase of $1.06 billion, or 27.36%, when compared with total deposits and customer repos of $3.87 billion at December 31, 2008. This growth was due in part to the deposit initiatives we have been working on over the past few years. This growth came primarily from our newly formed Specialty Banking Group and Commercial Banking Centers.
We acquired $529.7 million in deposits from SJB. Of these deposits, $95.0 million were National CDs with high interest rates. As we lowered those rates, we experienced an outflow of these non-customer CDs, which was anticipated. At December 31, 2009, we had $432.0 million in deposits, of which $157.3 million were non-interest bearing demand deposits.
Borrowings
At December 31, 2009, we had $1.01 billion in borrowings. This represents a decrease of $987.5 million, or 49.55%, from borrowings of $1.99 billion at December 31, 2008. As a result of the increase in deposits and customer repurchases of $1.06 billion and the net decrease of $388.0 million in securities, it was possible for us to reduce our reliance on borrowed funds. In addition, we restructured some of our FHLB advances to reduce our interest expense and protect against a rising rate environment. In the fourth quarter of 2009, we restructured a $300 million advance by paying-off $100 million and terming-out $200 million for seven years at a 4.52% fixed rate. Imbedded in this fixed rate is a rate cap protecting an additional $200 million of interest rate risk. We also prepaid another $100 million advance. The prepayment penalty for the two $100 million advances was $4.4 million, which was recognized in other operating expenses in the fourth quarter of 2009. The prepayment penalty on the $200 million restructured advance was $1.9 million and will be amortized to interest expense over the next seven years.
San Joaquin Bank Acquisition
On October 16, 2009, Citizens Business Bank acquired substantially all of the assets and assumed substantially all of the liabilities of San Joaquin Bank ("SJB") headquartered in Bakersfield, California, in an FDIC-assisted transaction. We acquired all five SJB branches, one of which will be consolidated into our existing Bakersfield business financial center in March 2010.
The acquisition has been accounted for under the purchase method. The assets and liabilities were recorded at their estimated fair values as of the October 16, 2009 acquisition date. The application of the purchase method of accounting resulted in an after-tax gain of $12.3 million which is included in 2009 earnings. The gain is based on fair values. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the acquisition date. The core deposit intangible of $4.9 million will be amortized over ten years.
A summary of the estimated fair value adjustments resulting in the net gain follows:
October 16, 2009
(in thousands)
SJB's cost basis net assets on October 16, 2009 $ 84,279
Purchase Accounting Fair Value Adjustments
Loans (199,768 )
FDIC loss sharing receivable 131,860
Core Deposit Intangible 4,904
Other assets 145
Time Deposits (298 )
Income tax liability (8,871 )
Net after-tax gain from SJB acquisition $ 12,251
Asset Quality
The SJB loans have a par value of $655.1 million and an adjusted carrying value of $455.3 million. Due to the nature of the transaction and the loss guarantee from the FDIC, 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 December 31, 2009 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 $55.0 million as of December 31, 2008 to $108.9 million as of December 31, 2009. The increase was primarily due to a provision for credit losses of $80.5 million during 2009. During 2009, we had loan charge-offs totaling $26.3 million and recoveries on previously charged-off loans of $803,000. This resulted in net charge-offs of $25.5 million. By comparison, during 2008, the Company had net charge-offs of $5.7 million and a $26.6 million provision for credit losses. The allowance for credit losses was 3.02% and 1.44% of total loans and leases outstanding as of December 31, 2009 and 2008, respectively. "Because the economy continues to struggle, our objective has been to increase our allowance as a percentage of total loans. Although our losses and non-performing loans are low by comparison to peers, they have increased. We regard the overall weakness in the economy as a driving factor in determining our allowance," said Myers.
We had $69.8 million in non-performing loans at December 31, 2009, or 1.93% of total loans. This compares to non-performing loans of $17.7 million at December 31, 2008. The non-performing loans consist of $13.9 million in residential construction and land loans, $23.8 million in commercial construction loans, $11.8 million in single-family mortgage loans, $17.1 million in commercial real estate loans, and $3.2 million in commercial loans.
At December 31, 2009, we had $3.9 million in Other Real Estate Owned ("OREO"). This represents a decrease of $2.7 million from OREO of $6.6 million at December 31, 2008. At December 31, 2008, we had 10 OREO properties. During 2009, we added nine properties for a total of $11.5 million to OREO. During the year, we sold 17 properties with an OREO value of $14.3 million for cash proceeds of $13.9 million. We now have two OREO properties.
At December 31, 2009, we had loans delinquent 30 to 89 days of $10.5 million. This compares to delinquent loans of $5.2 million at December 31, 2008. As a percentage of total loans, delinquencies, excluding non-accruals, were 0.29% at December 31, 2009 and 0.14% at December 31, 2008.
San Joaquin Bank Asset Quality (covered loans)
We acquired $688.9 million in loans from SJB. The FDIC loss threshold is $144.0 million and we have a first loss amount of $26.7 million. We will absorb 20% of the next $117.3 million in losses and the FDIC will absorb 80% of the losses. Thereafter, we will absorb 5% of the losses and the FDIC will absorb 95% of the losses. We have recorded these estimated future losses as a discount to loans acquired at the acquisition date. As such, we don't expect these losses to have a significant impact to future earnings.
At December 31, 2009 we had $655.1 million in gross loans from SJB with a carrying value of $455.3 million. Of the gross loans, we have $163.2 million in non-accrual and $23.2 million in loans delinquent 30 to 89 days. Non-accrual loans represent 24.92% of gross loans and delinquent loans represent 3.54%. We have taken two properties into OREO totaling $5.6 million.
CitizensTrust
CitizensTrust has approximately $1.9 billion in assets under administration, including $1.0 billion in assets under management, as of December 31, 2009. This compares with $1.8 billion in assets under administration, including $782.4 million in assets under management at December 31, 2008. 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 40 cities with 46 business financial centers and 5 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, 2008, 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
December 31,
2009 2008
Assets:
Cash and due from banks $ 103,254 $ 95,297
Investment Securities available-for-sale 2,108,463 2,493,476
Investment Securities held-to-maturity 3,838 6,867
Federal funds sold and Interest-bearing balances 1,226 285
due from depository institutions
Investment in stock of Federal Home Loan Bank 97,582 93,240
(FHLB)
Loans held-for-sale 1,439
Loans and lease finance receivables 4,063,664 3,736,838
Less allowance for credit losses (108,924 ) (53,960 )
Net loans and lease finance receivables 3,954,740 3,682,878
Total earning assets 6,167,288 6,276,746
Premises and equipment, net 41,444 44,420
Intangibles 12,761 11,020
Goodwill 55,097 55,097
Cash value of life insurance 109,480 106,366
Other assets 250,445 60,705
TOTAL $ 6,739,769 $ 6,649,651
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits (noninterest-bearing) $ 1,561,981 $ 1,334,248
Investment Checking 469,413 324,907
Savings/MMDA 1,213,002 818,872
Time Deposits 1,194,258 1,030,129
Total Deposits 4,438,654 3,508,156
Demand Note to U.S. Treasury 2,425 5,373
Customer Repurchase Agreements 485,132 357,813
Repurchase Agreements 250,000 250,000
Borrowings 753,118 1,737,660
Junior Subordinated Debentures 115,055 115,055
Other liabilities 57,157 60,702
Total Liabilities 6,101,541 6,034,759
Stockholders' equity:
Stockholders' equity 611,838 586,161
Accumulated other comprehensive income (loss), net 26,390 28,731
of tax
638,228 614,892
TOTAL $ 6,739,769 $ 6,649,651
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended December Twelve months ended
31, December 31,
2009 2008 2009 2008
Assets:
Cash and due from $ 228,178 $ 96,335 $ 156,993 $ 101,282
banks
Investment
securities 2,200,226 2,370,784 2,321,956 2,435,129
available-for-sale
Investment
securities 4,055 6,948 5,826 6,934
held-to-maturity
Federal funds sold
and Interest-bearing
balances due from 98,492 349 76,274 1,086
depository
institutions
Investment in stock
of Federal Home Loan 96,213 92,856 93,989 89,601
Bank (FHLB)
Loans held-for-sale 605 - 153 -
Loans and lease 3,997,884 3,645,278 3,735,339 3,506,510
finance receivables
Less allowance for (92,611 ) (40,893 ) (77,670 ) (37,280 )
credit losses
Net loans and lease 3,905,273 3,604,385 3,657,669 3,469,230
finance receivables
Total earning 6,304,864 6,075,322 6,155,867 6,001,980
assets
Premises and 42,082 44,263 43,266 45,494
equipment, net
Intangibles 12,417 11,366 10,444 12,709
Goodwill 55,097 55,097 55,097 55,105
Cash value of life 109,075 106,172 107,933 105,228
insurance
Other assets 202,246 89,385 112,890 73,115
TOTAL $ 6,953,959 $ 6,477,940 $ 6,642,490 $ 6,394,913
Liabilities and
Stockholders'
Equity
Liabilities:
Deposits:
Noninterest-bearing $ 1,573,039 $ 1,300,431 $ 1,431,204 $ 1,268,548
Interest-bearing 2,877,983 2,050,643 2,561,734 2,008,637
Total Deposits 4,451,022 3,351,074 3,992,938 3,277,185
Other borrowings 1,644,925 2,460,252 1,812,873 2,482,888
Junior Subordinated 115,055 115,055 115,055 115,055
Debentures
Other liabilities 65,221 65,052 67,746 61,119
Total Liabilities 6,276,223 5,991,433 5,988,612 5,936,247
Stockholders'
equity:
Stockholders' 631,059 502,247 620,083 457,427
equity
Accumulated other
comprehensive 46,677 (15,740 ) 33,795 1,239
income (loss), net
of tax
677,736 486,507 653,878 458,666
TOTAL $ 6,953,959 $ 6,477,940 $ 6,642,490 $ 6,394,913
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
2009 2008 2009 2008
Interest Income:
Loans held-for-sale $ 5 $ - $ 5 $ -
Loans and leases, including 56,217 53,416 206,074 212,626
fees
Investment securities:
Taxable 16,950 21,482 76,798 86,930
Tax-advantaged 6,769 7,035 27,329 28,371
Total investment income 23,719 28,517 104,127 115,301
Dividends from FHLB Stock - 886 195 4,552
Federal funds sold &
Interest-bearing CDs with 162 4 358 39
other institutions
Total interest income 80,103 82,823 310,759 332,518
Interest Expense:
Deposits 5,993 7,569 24,956 35,801
Borrowings and junior 16,039 23,200 63,539 103,038
subordinated debentures
Total interest expense 22,032 30,769 88,495 138,839
Net interest income before 58,071 52,054 222,264 193,679
provision for credit losses
Provision for credit losses 25,500 17,900 80,500 26,600
Net interest income after 32,571 34,154 141,764 167,079
provision for credit losses
Other Operating Income:
Impairment loss on investment (144 ) - (1,994 ) -
securities
Less: Noncredit-related
impairment loss recorded in 53 - 1,671 -
other comprehensive income
Net impairment loss on
investment securities (91 ) - (323 ) -
recognized in earnings
Service charges on deposit 3,809 3,848 14,889 15,228
accounts
Trust and investment services 1,709 2,020 6,657 7,926
Gain on sale of investment - - 28,446 -
securities
Other 24,476 3,374 31,402 11,303
Total other operating income 29,903 9,242 81,071 34,457
Other operating expenses:
Salaries and employee 16,172 14,284 62,985 61,271
benefits
Occupancy 3,334 2,939 11,649 11,813
Equipment 1,828 1,606 6,712 7,162
Professional services 1,967 1,504 6,965 6,519
Amortization of intangible 906 898 3,163 3,591
assets
Provision for unfunded 1,950 150 3,750 1,300
commitments
OREO Expense 13 89 1,211 89
Other 13,195 6,484 37,151 24,043
Total other operating 39,365 27,954 133,586 115,788
expenses
Earnings before income taxes 23,109 15,442 89,249 85,748
Income taxes 6,041 3,165 23,830 22,675
Net earnings $ 17,068 $ 12,277 $ 65,419 $ 63,073
Basic earnings per common $ 0.16 $ 0.14 $ 0.56 $ 0.75
share
Diluted earnings per common $ 0.16 $ 0.14 $ 0.56 $ 0.75
share
Cash dividends per common $ 0.085 $ 0.085 $ 0.340 $ 0.340
share
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Three months ended December 31, Twelve months ended December
31,
2009 2008 2009 2008
Interest income
- $ 82,870 $ 85,684 $ 321,917 $ 344,040
(Tax-Effected)
(te)
Interest 22,032 30,769 88,495 138,839
Expense
Net Interest $ 60,838 $ 54,915 $ 233,422 $ 205,201
income - (te)
Return on 0.97 % 0.75 % 0.98 % 0.99 %
average assets
Return on 9.99 % 10.04 % 10.00 % 13.75 %
average equity
Efficiency 63.01 % 64.42 % 59.95 % 57.45 %
ratio
Net interest 3.80 % 3.62 % 3.75 % 3.41 %
margin (te)
Weighted
average shares
outstanding
Basic 105,902,311 83,165,763 92,955,172 83,120,817
Diluted 106,023,730 83,383,653 93,055,801 83,335,503
Dividends $ 9,054 $ 7,078 $ 32,228 $ 28,317
declared
Dividend payout 53.05 % 57.65 % 49.26 % 44.90 %
ratio
Number of
shares 106,231,511 83,270,263
outstanding-EOP
Book value per $ 6.01 $ 5.92
share
December 31,
2009 2008
(Non-covered
loans)
Non-performing
Assets (dollar
amount in
thousands):
Non-accrual $ 69,779 $ 17,684
loans
Loans past due
90 days or more
and still - -
accruing
interest
Other real
estate owned 3,936 6,565
(OREO), net
Total
non-performing $ 73,715 $ 24,249
assets
Percentage of
non-performing
assets to total 1.81 % 0.65 %
loans
outstanding and
OREO
Percentage of
non-performing 1.09 % 0.36 %
assets to total
assets
Allowance for
loan losses to 147.76 % 222.52 %
non-performing
assets
Net Charge-off
to Average 0.68 % 0.16 %
loans
Allowance for
Credit Losses:
Beginning $ 53,960 $ 33,049
Balance
Total Loans (26,339 ) (6,037 )
Charged-Off
Total Loans 803 348
Recovered
Net Loans (25,536 ) (5,689 )
Charged-off
Provision
Charged to 80,500 26,600
Operating
Expense
Allowance for
Credit Losses $ 108,924 $ 53,960
at End of
period
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
Quarterly Common
Stock Price
2009 2008 2007
Quarter High Low High Low High Low
End
March 31, $ 12.11 $ 5.31 $ 11.20 $ 8.45 $ 13.38 $ 11.42
June 30, $ 7.77 $ 5.69 $ 12.10 $ 9.44 $ 12.40 $ 10.63
September $ 8.70 $ 4.90 $ 15.01 $ 7.65 $ 12.71 $ 9.51
30,
December $ 9.00 $ 6.93 $ 13.89 $ 9.29 $ 11.97 $ 9.98
31,
Quarterly Consolidated
Statements of Earnings
4Q 3Q 2Q 1Q 4Q
2009 2009 2009 2009 2008
Interest
income
Loans, including $ 56,222 $ 50,561 $ 49,771 $ 49,526 $ 53,416
fees
Investment securities and 23,881 25,358 26,004 29,436 29,407
federal funds sold
80,103 75,919 75,775 78,962 82,823
Interest expense
Deposits 5,993 5,934 6,439 6,590 7,569
Other borrowings 16,039 15,179 15,241 17,080 23,200
22,032 21,113 21,680 23,670 30,769
Net interest income before 58,071 54,806 54,095 55,292 52,054
provision for credit losses
Provision for 25,500 13,000 20,000 22,000 17,900
credit losses
Net interest income after 32,571 41,806 34,095 33,292 34,154
provision for credit losses
Non-interest income 29,903 15,102 19,709 16,357 9,242
Non-interest 39,365 29,845 32,979 31,397 27,954
expenses
Earnings before 23,109 27,063 20,825 18,252 15,442
income taxes
Income 6,041 7,741 4,964 5,084 3,165
taxes
Net earnings $ 17,068 $ 19,322 $ 15,861 $ 13,168 $ 12,277
Basic earning per $ 0.16 $ 0.10 $ 0.17 $ 0.13 $ 0.14
common share
Diluted earnings $ 0.16 $ 0.10 $ 0.17 $ 0.13 $ 0.14
per common share
Cash dividends per $ 0.085 $ 0.085 $ 0.085 $ 0.085 $ 0.085
common share
Dividends Declared $ 9,054 $ 9,012 $ 7,079 $ 7,083 $ 7,078
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Distribution
of Loan
Portfolio
(Non-covered
loans)
12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
Commercial
and $ 413,715 $ 385,274 $ 372,162 $ 355,591 $ 370,829
Industrial
Real Estate:
Construction 265,444 295,315 303,629 333,234 351,543
Commercial 1,989,644 1,959,725 1,964,258 1,965,531 1,945,706
Real Estate
SFR Mortgage 265,543 290,831 306,225 328,145 333,931
Consumer 67,693 67,317 67,947 69,708 66,255
Municipal
lease 159,582 162,962 165,527 169,230 172,973
finance
receivables
Auto and
equipment 30,337 34,072 37,242 41,708 45,465
leases
Dairy and 422,958 411,574 405,427 404,090 459,329
Livestock
Gross Loans 3,614,916 3,607,070 3,622,417 3,667,237 3,746,031
Less:
Deferred net (6,537 ) (6,983 ) (7,661 ) (8,378 ) (9,193 )
loan fees
Allowance
for credit (108,924 ) (87,316 ) (74,755 ) (65,755 ) (53,960 )
losses
Net Loans $ 3,499,455 $ 3,512,771 $ 3,540,001 $ 3,593,104 $ 3,682,878
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Non-Performing Assets &
Delinquency Trends
Total Covered Loans Non-covered loans
December 31, December 31, December September June 30, March 31, December
31, 30, 31,
2009 2009 2009 2009 2009 2009 2008
Non-Performing
Loans
Residential
Construction $ 35,049 $ 21,206 $ 13,843 $ 15,729 $ 17,348 $ 20,943 $ 7,524
and Land
Commercial 84,632 60,800 23,832 19,636 21,270 22,102 -
Construction
Residential 15,205 3,418 11,787 8,102 4,632 2,203 3,116
Mortgage
Commercial 86,843 69,714 17,129 13,522 7,041 1,661 4,658
Real Estate
Commercial and 11,256 8,083 3,173 1,045 859 792 2,074
Industrial
Consumer 15 - 15 100 115 336 312
Total $ 233,000 $ 163,221 $ 69,779 $ 58,134 $ 51,265 $ 48,037 $ 17,684
% of Total 5.46 % 24.92 % 1.93 % 1.61 % 1.42 % 1.31 % 0.47 %
Loans
Past Due 30-89
Days
Residential
Construction $ 369 $ 369 $ - $ - $ - $ - $ -
and Land
Commercial 13,089 13,089 - - - - -
Construction
Residential 5,203 282 4,921 1,510 2,069 3,814 1,931
Mortgage
Commercial 10,603 8,196 2,407 190 1,074 8,341 2,402
Real Estate
Commercial and 4,254 1,281 2,973 5,094 590 1,720 592
Industrial
Dairy & - - - - 3,551 - -
Livestock
Consumer 239 - 239 87 8 62 231
Total $ 33,757 $ 23,217 $ 10,540 $ 6,881 $ 7,292 $ 13,937 $ 5,156
% of Total 0.79 % 3.54 % 0.29 % 0.19 % 0.20 % 0.38 % 0.14 %
Loans
OREO
Residential
Construction $ 75 $ 75 # $ - $ 1,137 $ 1,789 $ 2,416 $ 6,158
and Land
Commercial 5,490 5,490 - - - - -
Construction
Commercial - - - - 1,187 4,612 87
Real Estate
Commercial and 3,936 - 3,936 - 893 893 -
Industrial
Residential - - - - - 745 320
Mortgage
Consumer - - - - 166 - -
Total $ 9,501 $ 5,565 $ 3,936 $ 1,137 $ 4,035 $ 8,666 $ 6,565
Total
Non-Performing, $ 276,258 $ 192,003 $ 84,255 $ 66,152 $ 62,592 $ 70,640 $ 29,405
Past Due & OREO
% of Total 6.47 % 29.31 % 2.33 % 1.84 % 1.73 % 1.93 % 0.79 %
Loans
Source: CVB Financial Corp.Contact: CVB Financial Corp. Christopher D. Myers President and CEO 909-980-4030