ONTARIO, Calif.--(BUSINESS WIRE)--Jan. 19, 2006--CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank ("the Company"), announced record results for the year ending December 31, 2005. This included record deposits, record loans, record assets and record earnings. It was the strongest year in the history of the Company.
Net Income
Net income for the twelve months ending December 31, 2005 was $70.6 million. This represents an increase of $9.1 million, or 14.85%, when compared with net earnings of $61.5 million for the year ending December 31, 2004. Diluted earnings per share were $0.91 for the twelve months ending December 31, 2005. This was up $0.11, or 13.75%, from diluted earnings per share of $0.80 for the same period last year. These per share amounts have been adjusted to reflect the five for four stock split declared in December of 2005.
Net income for the twelve months ending December 31, 2005 produced a return on beginning equity of 22.24%, a return on average equity of 20.87% and a return on average assets of 1.45%. The efficiency ratio for the twelve-month period was 46.13%, and operating expenses as a percentage of average assets were 1.88%.
In the fourth quarter of 2005, the Company took a $2.3 million Other-Than-Temporary Impairment charge on two issues of Federal Home Loan Mortgage Corporation ("Freddie Mac") preferred stock. In March 2004, the Company took a $6.3 million charge on the same two issues. These securities have interest rates that adjust to the three-month LIBOR rate or the 12-month LIBOR rate. While there has been no downgrade in the credit rating of Freddie Mac (it is still rated -AA), there is a perception in the marketplace that the stock may not perform well. There have also been accounting issues centered on the Other-Than-Temporary Impairment. Since these securities have no maturity, the decline in value does not have a defined period in which the fair value will return to its original par value. Therefore, by accounting definition, it is considered as Other-Than-Temporary Impairment. Although we have experienced these charges, we continue to receive a high dividend of 5.15% from a creditworthy company.
Net income before the Other-Than-Temporary Impairment charge ($2.3 million), net loss on sales of investment securities ($46,000) and income from the settlement of robbery loss ($2.6 million) was $70.4 million for the twelve months ending December 31, 2005. This represents an increase of $6.9 million, or 10.91%, when compared to net earnings before the Other-Than-Temporary Impairment charge ($6.3 million), net gains on sales of investment securities ($5.2 million), net gain on sale of real estate ($419,000) and accrual of robbery loss ($2.3 million) of $63.5 million for the same twelve-month period in 2004.
These earnings results reflect a return on beginning equity of 22.18%, a return on average equity of 20.82%, and a return on average assets of 1.45%. The related efficiency ratio for the twelve-month period was 46.89%, and operating costs as a percentage of average assets were 1.93%.
The Company reported net income of $17.2 million for the fourth quarter ending December 31, 2005. This represented an increase of $0.3 million, or 1.69%, when compared with the $16.9 million in net income reported for the fourth quarter of 2004. Diluted earnings per share were $0.22 for the fourth quarter of 2005 and 2004.
Net income for the fourth quarter of 2005 produced a return on beginning equity of 20.21%, a return on average equity of 19.51% and a return on average assets of 1.32%. The efficiency ratio for the fourth quarter was 48.60%, and operating costs as a percentage of average assets were 1.87%.
Net income for the fourth quarter of 2005 before the other-than-temporary impairment charge ($2.3 million) was $18.7 million. This represents an increase of $0.2 million, or 1.28%, when compared to net income before the accrual of robbery loss ($2.3 million) of $18.5 million for the fourth quarter of 2004. These results produced a return on beginning equity of 21.99%, a return on average equity of 21.23%, and a return on average assets of 1.43%. The related efficiency ratio for the fourth quarter of 2005 was 46.50%, and operating costs as a percentage of average assets were 1.87%.
Net Interest Income and Net Interest Margin
Net interest income totaled $171.1 million for the twelve months ending December 31, 2005. This represents an increase of $19.9 million, or 13.14%, over the net interest income of $151.2 million for the same period of 2004. This increase resulted from a $50.8 million increase in interest income, partially offset by a $30.9 million increase in interest expense. The increases in interest income were primarily due to the growth in average earning assets and the increase in interest rates. The increases in interest expense were due to the increases in deposits and borrowed funds and the increase in interest rates.
Net interest income totaled $44.9 million for the fourth quarter of 2005. This represented an increase of $5.1 million, or 12.89%, over the net interest income of $39.7 million for the fourth quarter of 2004. These increases resulted from a $15.6 million increase in interest income, offset by a $10.5 million increase in interest expense.
Net interest margin (tax equivalent) declined from 3.99% for the twelve months ending December 31, 2004 to 3.89% for the twelve months ending December 31, 2005. Total average earning asset yields increased from 5.16% for 2004 to 5.60% for 2005. The cost of funds increased from 1.21% for 2004 to 1.72% for 2005. The decline in net interest margin is due to the cost of interest-bearing liabilities rising faster than the increase in yields on earning assets. This decline in net interest margin has been mitigated by the strong growth in the balance sheet. The margin compression appears to be moderating with the recent stability of interest rates. The Company has approximately $1.49 billion, or 43.53%, of its deposits in interest free demand deposits.
Net interest margin (tax equivalent) for the fourth quarter of 2005 was 3.86%. This represents a decline of 10 basis points when compared to the 3.96% for the fourth quarter of 2004. Average earning asset yields for the fourth quarter of 2005 were 5.82%, compared with asset yields of 5.23% for the fourth quarter of 2004. The cost of funds for the fourth quarter of 2005 was 1.98% compared with 1.32% for the same period last year.
Balance Sheet
The Company reported total assets of $5.42 billion at December 31, 2005. This represented an increase of $912.0 million, or 20.22%, over total assets of $4.51 billion on December 31, 2004. Earning assets totaling $5.08 billion were up $827.0 million, or 19.43%, when compared with earning assets of $4.26 billion as of December 31, 2004. Deposits of $3.42 billion grew $549.0 million, or 19.10%, from $2.88 billion for the prior year. Demand deposits of $1.49 billion jumped $168.4 million, or 12.73%, from $1.32 billion on December 31, 2004. Gross loans and leases of $2.66 billion on December 31, 2005 rose $523.8 million, or 24.48%, from $2.14 billion on December 31, 2004.
Investment Securities
Investment securities totaled $2.37 billion as of December 31, 2005. This represents an increase of $286.8 million, or 13.75%, when compared with $2.09 billion in investment securities as of December 31, 2004.
Financial Advisory Services
The Financial Advisory Services Group has over $2.7 billion in assets under administration. They provide trust, investment and brokerage related services.
Loan and Lease Quality
CVB Financial Corp. reported no non-performing assets as of December 31, 2005 and $2,000 as of December 31, 2004. The allowance for loan and lease losses was $23.2 million as of December 31, 2005. This represents 0.87% of gross loans and leases. It compares with an allowance for loan and lease losses of $22.5 million, or 1.05% of gross loans and leases on December 31, 2004. The increase was due to the net charge-offs of $46,000 in 2005, offset by the allowance for loan and lease losses acquired from Granite State Bank of $756,000.
The Company has not made a provision for loan and lease losses since 2001 due to the high quality of its loan portfolio. This has been the case even though loans increased from $1.19 billion as of December 31, 2001 to $2.66 billion as of December 31, 2005. This is an increase in loans and leases of $1.47 billion, or 123.5%, over the four-year period.
Other Items in 2005
On February 25, 2005, the Company acquired 100% of the stock of Granite State Bank. The merger agreement provides for Granite State Bank to merge with and into Citizens Business Bank. Citizens Business Bank represents the continuing operation. This transaction added $103.1 million in deposits, $62.8 million in loans and $111.4 million in total assets.
On May 2, 2005, Citizens Business Bank opened its 40th business financial center in the Central Valley city of Madera, California. This increased the total number of offices to seven business financial centers in the fast growing Central Valley area of California.
Corporate Overview
CVB Financial Corp. is the holding company for Citizens Business Bank. The Bank is the largest financial institution headquartered in the Inland Empire region of Southern California. It serves 33 cities with 40 business financial centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. Its subsidiary, Golden West Financial Services, provides vehicle leasing, equipment leasing and real estate loan services.
For the third consecutive year, CVB Financial Corp. received the KBW Honor Roll award at the Annual Community Bank Investor Conference hosted by Keefe, Bruyette & Woods, Inc. in New York on July 25, 26, and 27, 2005. The Company was also recognized as a SmAll-Star by Sandler O'Neill and named on the FPK Honor Roll by Fox-Pitt, Kelton.
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
This document contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected. In addition, these forward-looking statements relate to the Company's current expectations regarding future operating results. Such issues and uncertainties include impact of changes in interest rates, a decline in economic conditions and increased competition among financial services providers. For a discussion of other factors that could cause actual results to differ, please see the publicly available Securities and Exchange Commission filings of CVB Financial Corp., including its Annual Report on Form 10-K for the year ended December 31, 2004, and particularly the discussion on risk factors within that document. The Company does not undertake any, 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.
CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
December 31,
-----------------------
2005 2004
----------- -----------
Assets:
Investment Securities available-for-sale $2,371,775 $2,085,014
Investment in stock of Federal Home Loan Bank
(FHLB) 70,770 53,565
Loans and lease finance receivables 2,663,863 2,140,074
Less allowance for credit losses (23,204) (22,494)
----------- -----------
Net loans and lease finance receivables 2,640,659 2,117,580
----------- -----------
Total earning assets 5,083,204 4,256,159
Cash and due from banks 130,141 84,400
Premises and equipment, net 40,020 33,508
Intangibles 12,474 6,136
Goodwill 28,735 19,580
Cash value of life insurance 71,811 68,233
Other assets 56,586 42,995
----------- -----------
TOTAL $5,422,971 $4,511,011
=========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits (noninterest-bearing) $1,490,613 $1,322,255
Investment Checking 260,484 258,636
Savings/MMDA 889,772 813,983
Time Deposits 783,177 480,165
----------- -----------
Total Deposits 3,424,046 2,875,039
Demand Note to U.S. Treasury 6,433 6,453
Borrowings 1,496,000 1,186,000
Junior Subordinated Debentures 82,476 82,476
Other liabilities 71,139 43,560
----------- -----------
Total Liabilities 5,080,094 4,193,528
Stockholders' equity:
Stockholders' equity 356,263 308,591
Accumulated other comprehensive income
(loss), net of tax (13,386) 8,892
----------- -----------
342,877 317,483
----------- -----------
TOTAL $5,422,971 $4,511,011
=========== ===========
CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended Twelve months ended
December 31, December 31,
2005 2004 2005 2004
----------- ---------- ----------- -----------
Assets:
Federal funds sold and
reverse repos $- $- $- $311
Investment securities
trading - - - 8,761
Investment securities
available-for-sale 2,283,157 2,059,264 2,209,628 1,962,123
Investment in stock of
Federal Home Loan Bank
(FHLB) 70,272 53,371 64,144 46,443
Loans and lease finance
receivables 2,482,190 2,042,148 2,277,304 1,905,144
Less allowance for
credit losses (24,031) (23,148) (23,851) (22,445)
----------- ---------- ----------- -----------
Net loans and lease
finance receivables 2,458,159 2,019,000 2,253,453 1,882,699
----------- ---------- ----------- -----------
Total earning
assets 4,811,588 4,131,635 4,527,225 3,900,337
Cash and due from banks 130,346 112,722 124,988 121,200
Premises and equipment,
net 40,127 27,544 38,155 29,399
Intangibles 12,703 6,253 11,621 6,701
Goodwill 28,735 19,580 26,508 19,580
Cash value of life
insurance 71,473 67,214 70,470 58,540
Other assets 83,633 55,854 70,193 56,785
----------- ---------- ----------- -----------
TOTAL $5,178,605 $4,420,802 $4,869,160 $4,192,542
=========== ========== =========== ===========
Liabilities and
Stockholders' Equity
Liabilities:
Deposits:
Noninterest-
bearing $1,412,029 $1,300,817 $1,382,966 $1,213,884
Interest-bearing 1,840,994 1,552,973 1,680,136 1,547,549
----------- ---------- ----------- -----------
Total
Deposits 3,253,023 2,853,790 3,063,102 2,761,433
Other borrowings 1,442,294 1,117,952 1,347,156 1,005,058
Junior Subordinated
Debentures 82,476 82,476 82,476 82,476
Other liabilities 51,586 46,297 38,067 41,201
----------- ---------- ----------- -----------
Total
Liabilities 4,829,379 4,100,515 4,530,801 3,890,168
Stockholders' equity:
Stockholders' equity 357,622 304,895 340,027 289,053
Accumulated other
comprehensive
income (loss), net
of tax (8,396) 15,392 (1,668) 13,321
----------- ---------- ----------- -----------
349,226 320,287 338,359 302,374
----------- ---------- ----------- -----------
TOTAL $5,178,605 $4,420,802 $4,869,160 $4,192,542
=========== ========== =========== ===========
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,
2005 2004 2005 2004
----------- -------- ----------- ---------
Interest Income:
Loans, including fees $42,872 $31,095 $149,961 $114,543
Investment securities:
Taxable 19,980 17,859 76,573 66,109
Tax-advantaged 5,205 3,825 19,078 15,087
----------- -------- ----------- ---------
Total
investment
income 25,185 21,684 95,651 81,196
Dividends from FHLB Stock 810 500 2,623 1,960
Federal funds sold - - 2 3
Interest-bearing CDs with
other institutions 44 - 251 -
----------- -------- ----------- ---------
Total interest
income 68,911 53,279 248,488 197,702
Interest Expense:
Deposits 10,060 4,356 28,908 15,508
Borrowings and junior
subordinated debentures 13,991 9,183 48,528 31,009
----------- -------- ----------- ---------
Total interest
expense 24,051 13,539 77,436 46,517
----------- -------- ----------- ---------
Net interest income
before provision for
credit losses 44,860 39,740 171,052 151,185
Provision for credit losses - - - -
----------- -------- ----------- ---------
Net interest income
after provision for
credit losses 44,860 39,740 171,052 151,185
Other Operating Income:
Service charges on
deposit accounts 3,481 3,119 13,251 13,663
Financial Advisory
Services 1,723 1,633 6,652 6,054
Gain/(Loss) on sale of
investment securities - - (46) 5,219
Other-than-temporary
impairment write down (2,270) - (2,270) (6,300)
Other 2,339 2,844 9,918 9,271
----------- -------- ----------- ---------
Total other
operating
income 5,273 7,596 27,505 27,907
Other operating expenses:
Salaries and employee
benefits 13,651 11,970 53,075 47,292
Occupancy 2,279 1,930 8,327 7,891
Equipment 1,995 2,397 7,578 8,003
Professional services 1,001 1,746 4,268 4,776
Amortization of
intangible assets 588 296 2,061 1,185
Other 4,852 7,123 16,284 20,575
----------- -------- ----------- ---------
Total other
operating
expenses 24,366 25,462 91,593 89,722
----------- -------- ----------- ---------
Earnings before income
taxes 25,767 21,874 106,964 89,370
Income taxes 8,593 4,986 36,346 27,884
----------- -------- ----------- ---------
Net earnings $17,174 $16,888 $70,618 $61,486
=========== ======== =========== =========
Basic earnings per common
share $0.22 $0.22 $0.92 $0.81
=========== ======== =========== =========
Diluted earnings per common
share $0.22 $0.22 $0.91 $0.80
=========== ======== =========== =========
Cash dividends per common
share $0.09 $0.11 $0.42 $0.48
=========== ======== =========== =========
All per share information has been retroactively adjusted to reflect
the 5 for 4 stock split declared on December 21, 2005.
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Interest income - (Tax
Effective)(te) $70,581 $54,507 $254,612 $202,549
Interest Expense 24,051 13,539 77,436 46,517
----------- ----------- ----------- -----------
Net Interest income -
(te) $46,530 $40,968 $177,176 $156,032
=========== =========== =========== ===========
Other-than-temporary
impairment write-down ($2,270) $0 ($2,270) ($6,300)
Return on average
assets 1.32% 1.52% 1.45% 1.47%
Return on average
equity 19.51% 20.98% 20.87% 20.33%
Efficiency ratio 48.60% 53.79% 46.13% 50.10%
Net interest margin
(te) 3.86% 3.96% 3.89% 3.99%
Weighted average
shares outstanding
Basic 76,410,985 75,718,733 76,490,231 75,655,905
Diluted 77,048,139 76,733,508 77,192,630 76,599,030
Dividends declared $6,877 $6,733 $27,963 $23,821
Dividend payout ratio 40.04% 39.87% 39.60% 38.74%
Number of shares
outstanding-EOP 76,432,524 75,835,686
Book value per share $4.49 $4.19
December 31,
2005 2004
-------- --------
Non-performing Assets (dollar amount in thousands):
Non-accrual loans $0 $2
Loans past due 90 days or more and still accruing
interest - -
Restructured loans - -
Other real estate owned (OREO), net - -
-------- --------
Total non-performing assets $0 $2
======== ========
Percentage of non-performing assets to total loans
outstanding and OREO 0.00% 0.00%
Percentage of non-performing assets to total assets 0.00% 0.00%
Non-performing assets to allowance for loan losses 0.00% 0.01%
Net Charge-off (Recovered) to Average loans -0.03% -0.06%
Allowance for Credit Losses:
Beginning Balance $22,494 $21,282
Total Loans Charged-Off (1,380) (2,320)
Total Loans Recovered 1,334 3,532
Acquisition of Granite State Bank 756 -
-------- --------
Net Loans Recovery (Charged-Off) 710 1,212
Provision Charged to Operating Expense - -
-------- --------
Allowance for Credit Losses at End of period $23,204 $22,494
======== ========
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
Quarterly Common Stock Price
2005 2004 2003
--------------- --------------- ---------------
Quarter End High Low High Low High Low
------- ------- ------- ------- ------- -------
March 31, $21.30 $17.60 $17.04 $15.13 $18.50 $14.10
June 30, $20.12 $17.00 $17.56 $15.72 $16.06 $14.07
September 30, $21.90 $18.04 $18.70 $16.16 $15.69 $13.35
December 31, $20.90 $17.37 $22.34 $17.80 $15.87 $13.94
Quarterly Consolidated Statements of Earnings
4Q 3Q 2Q 1Q 4Q
2005 2005 2005 2005 2004
-------- -------- -------- -------- --------
Interest income
Loans, including fees $42,872$38,777$35,619$32,693$31,095
Investment securities
and federal funds
sold 26,039 24,057 24,454 23,303 22,184
-------- -------- -------- -------- --------
68,911 62,834 60,073 55,996 53,279
Interest expense
Deposits 10,060 7,539 6,247 5,061 4,356
Other borrowings 13,991 12,950 11,589 9,998 9,183
-------- -------- -------- -------- --------
24,051 20,489 17,836 15,059 13,539
Net interest income
before provision for
credit losses 44,860 42,345 42,237 40,937 39,740
Provision for credit
losses - - - - -
-------- -------- -------- -------- --------
Net interest income
after provision for
credit losses 44,860 42,345 42,237 40,937 39,740
Non-interest income 5,273 7,861 7,293 7,079 7,596
Non-interest expenses 24,366 23,115 23,415 20,697 25,462
-------- -------- -------- -------- --------
Earnings before income
taxes 25,767 27,091 26,115 27,319 21,874
Income taxes 8,593 9,499 8,637 9,618 4,986
-------- -------- -------- -------- --------
Net earnings $17,174 $17,592 $17,478 $17,701 $16,888
======== ======== ======== ======== ========
Basic earnings per common
share $0.22 $0.24 $0.23 $0.23 $0.22
Diluted earnings per
common share $0.22 $0.23 $0.22 $0.23 $0.22
Cash dividends per common
share $0.09 $0.11 $0.11 $0.11 $0.11
Dividends Declared $6,877 $6,722 $6,716 $6,775 $6,733
Financial Measures That Supplement GAAP
Our discussions sometimes contain financial information not required
to be presented by generally accepted accounting principles (GAAP). We
do this to better inform readers of our financial statements. The SEC
requires us to present a reconciliation of GAAP.
The following table reconciles the differences in net earnings with
and without the accrual/settlement of robbery loss, gain/loss on sale
of securities, gain on sale of real estate, and the
other-than-temporary impairment write down in conformity with GAAP.
Net Earnings Reconciliation Three months ended Twelve months ended
(non-GAAP disclosure): December 31, December 31,
2005 2004 2005 2004
--------- -------- ---------- --------
Net earnings without the
settlement of robbery loss,
the gains/(loss) on sales of
securities, the gain on sale
of real estate, and other-
than-temporary impairment
write-down $18,687 $18,450 $70,430 $63,503
Accrual/Settlement of
robbery loss, net of tax 0 (1,562) 1,717 (1,562)
Gain/(Loss) on Sale of
Securities, net of tax 0 0 (30) 3,591
Gain on Sale of Real
Estate, net of tax - 0 0 288
Other-than-temporary
impairment write-down,
net of tax (1,513) 0 (1,499) (4,334)
--------- -------- ---------- --------
Reported net earnings $17,174 $16,888 $70,618 $61,486
========= ======== ========== ========
Accrual/Settlement of
robbery loss $0 ($2,269) $2,600 ($2,269)
Gain/(Loss) on Sale of
Securities - - (46) 5,219
Gain on Sale of Real
Estate - 0 0 419
Other-than-temporary
impairment write-down (2,270) 0 (2,270) (6,300)
Tax effect 757 707 (96) 914
--------- -------- ---------- --------
Net of taxes ($1,513) ($1,562) $188 ($2,017)
========= ======== ========== ========
We have presented net earnings without the accrual/settlement of
robbery loss, gain/loss on sale of securities, gain on sale of real
estate, and other-than-temporary impairment write-down on investment
securities to show shareholders the earnings from operations
unaffected by the impact of these items. We believe this presentation
allows the reader to more easily assess the results of the Company's
operations and business.
Ratios Reconciliation (non-GAAP disclosure):
The following table reconciles the differences in ratios with and
without the accrual/settlement of robbery loss, the
other-than-temporary impairment write down on investment securities,
the net gain/loss on sale of securities and the gain on sale of real
estate in conformity with GAAP.
Ratios Reconciliation
For the Three Months
Ended December 31,
2005
---------------------------------
Without Other-than- Reported
other- temporary earnings
than- impairment
temporary writedown
impairment
writedown
----------- ----------- ---------
( amounts in thousands )
Other Operating Expense $24,366 $- $24,366
----------- ----------- ---------
Net Revenues $52,403 $(2,270) $50,133
----------- ----------- ---------
Net Earnings $18,687 $(1,513) $17,174
----------- ----------- ---------
Return on Beginning Equity 21.99% 20.21%
Return on Average Equity 21.23% 19.51%
Return on Average Assets 1.43% 1.32%
Efficiency Ratio 46.50% 48.60%
Operating Costs as % of Average
assets 1.87% 1.87%
Ratios Reconciliation
For the Three Months
Ended December 31,
2004
---------------------------
Without Accrual Reported
the of earnings
accrual robbery
of loss
robbery
loss
-------- -------- ---------
( amounts in thousands )
Other Operating Expense $23,193 $2,269 $25,462
-------- -------- ---------
Net Revenues $47,336 $- $47,336
-------- -------- ---------
Net Earnings $18,450 $(1,562) $16,888
-------- -------- ---------
Return on Beginning Equity 23.67% 21.67%
Return on Average Equity 22.92% 20.98%
Return on Average Assets 1.66% 1.52%
Efficiency Ratio 49.00% 53.79%
Operating Costs as % of Average assets 2.09% 2.29%
Ratios Reconciliation
For the Twelve Months
Ended December 31,
2005
---------------------------------
Without Other-than- Reported
other- temporary earnings
than- impairment
temporary writedown,
impairment settlement
writedown, of robbery
settlement loss, and
of robbery net loss
loss, and on
net loss securities
on sale of
securities
----------- ----------- ---------
( amounts in thousands )
Other Operating Expense $94,193 $(2,600) $91,593
----------- ----------- ---------
Net Revenues $200,873 $(2,316) $198,557
----------- ----------- ---------
Net Earnings $70,430 $188 $70,618
----------- ----------- ---------
Return on Beginning Equity 22.18% 22.24%
Return on Average Equity 20.82% 20.87%
Return on Average Assets 1.45% 1.45%
Efficiency Ratio 46.89% 46.13%
Operating Costs as % of Average
assets 1.93% 1.88%
Ratios Reconciliation
For the Twelve Months
Ended December 31,
2004
----------------------------------
Without Impairment Reported
other- write-down, earnings
than- net gain on
temporary securities,
impairment gain on
write- sale of
down, net real estate
gain on
sale of
securities
and gain
on sale of
real
estate
----------- ------------ ---------
( amounts in thousands )
Other Operating Expense $87,453 $2,269 $89,722
----------- ------------ ---------
Net Revenues $179,754 $(662) $179,092
----------- ------------ ---------
Net Earnings $63,503 $(2,017) $61,486
----------- ------------ ---------
Return on Beginning Equity 22.15% 21.44%
Return on Average Equity 21.00% 20.33%
Return on Average Assets 1.51% 1.47%
Efficiency Ratio 48.65% 50.10%
Operating Costs as % of Average
assets 2.09% 2.14%
We have presented ratios without the accrual/settlement of robbery
loss, the other-than-temporary impairment write-down on investment
securities, the net gain/loss on sale of securities and the gain on
sale of real estate to show shareholders the earnings from operations
unaffected by the impact of these items. We believe this presentation
allows the reader to more easily assess the results of the Company's
operations and business.
CONTACT: CVB Financial Corp.D. Linn Wiley, 909-980-4030
SOURCE: CVB Financial Corp.