CVB Financial Corp. (Nasdaq:CVBF), today announced record results for the first quarter of 2002.
This is the 40th consecutive quarter of record results for the company when compared with the same results for the prior year.
Net income for the first quarter of 2002 was $12.3 million. This represents an increase of $3.5 million, or 39.83%, over net income of $8.8 million reported for the first quarter of 2001. Net income of $0.35 per diluted share rose $0.10, or 40%, above the $0.25 per diluted share for 2001.
These earnings results produced a return on beginning equity of 22.63%, a return on average equity of 21.84% and a return on average assets of 1.99%. The efficiency ratio for the first quarter was 44.12%.
During the quarter, the company restructured a portion of the investment portfolio. This involved the sale of $150 million in securities. It was done to align the investment portfolio with the current interest rate environment. The sale of these securities resulted in a gain of $3.1 million before taxes, and a gain of $2 million after taxes.
If the company had not realized this gain on the sale of securities, net income would have been $10.4 million. This would represent an increase in net income of $1.6 million, or 18.18%, over the $8.8 million for 2001. The comparable net income per diluted share would be $0.29. This would be an increase of $0.04, or 16%, over the net income per diluted share of $0.25 for 2001.
These earnings results would have produced a return on beginning equity of 19.16%, a return on average equity of 18.49% and a return on average assets of 1.69%. The related efficiency ratio would have been 48.35%.
Total assets were $2.6 billion as of March 31, 2002. This is an increase of $313.5 million, or 13.8%, when compared with total assets of $2.3 billion on March 31, 2001. Total deposits of $1.9 billion were up $270.6 million, or 16.7%, over the total deposits of $1.6 billion at the same time last year. Gross loans and leases grew to $1.2 billion. They rose $119.7 million, or 11.55%, from $1 billion in 2001. The Wealth Management Group based in Pasadena, Calif. has nearly $1 billion under administration.
"We are extremely pleased with the positive growth trends and earnings results which we achieved during the first quarter," said Linn Wiley, president and chief executive officer of CVB Financial. "We are also optimistic about the prospects for the balance of the year."
CVB Financial reported $1.3 million in non-performing assets. This represents a ratio of non-performing assets to total assets of 0.05% as of March 31, 2002. In addition, the allowance for loan and lease losses of $21.1 million represented 1.82% of total loans and 1572.66% of non-performing loans. This compares with an allowance for loan and lease losses of $20 million on March 31, 2001. This represented 1.93% of gross loans and leases and 2262.29% of non-performing loans.
CVB Financial is the holding company for Citizens Business Bank. The bank is the largest bank with headquarters in the Inland Empire Region of Southern California. It serves 24 cities with 31 branches in Los Angeles, Orange, Riverside, San Bernardino and Kern counties.
Shares of CVB Financial common stock are listed on the Nasdaq under the ticker symbol of CVBF. For investor information on CVB Financial visit its Citizens Business Bank Web site at www.cbbank.com and click on the CVB Stock tab.
Safe Harbor
This document may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected. For a discussion of factors that could cause actual results to differ, see the publicly available Securities and Exchange Commission filings of CVB Financial, including its Annual Report on Form 10-K for the year ended Dec. 31, 2001, and particularly the discussion on risk factors within that document. -0-
CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
March 31
2002 2001
Assets:
Federal funds sold and reverse
repos $ 15,000 $ 7,000
Investment Securities
available-for-sale 1,294,261 1,063,784
Loans and lease finance
receivables 1,155,977 1,036,301
Less allowance for credit losses (21,074) (20,021)
Net loans and lease finance
receivables 1,134,903 1,016,280
Total earning assets 2,444,164 2,087,064
Cash and due from banks 75,440 98,767
Premises and equipment, net 29,733 27,100
Other real estate owned, net 0 358
Goodwill and intangibles 6,413 7,128
Other assets 29,383 51,262
TOTAL $ 2,585,133 $ 2,271,679
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits
(noninterest-bearing) $ 746,121 $ 622,603
Investment Checking 169,811 117,852
Savings/MMDA 559,337 430,131
Time Deposits 416,095 450,166
Total Deposits 1,891,364 1,620,752
Other borrowings 380,000 410,000
Other liabilities 90,103 41,848
Total Liabilities 2,361,467 2,072,600
Stockholders' equity:
Stockholders' equity 213,523 186,857
Accumulated other comprehensive income
(loss), net of tax 10,143 12,222
223,666 199,079
TOTAL $ 2,585,133 $ 2,271,679
CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended March 31
2002 2001
Assets:
Federal funds sold and
reverse repos $ 54,956 $ 4,994
Investment securities
available-for-sale 1,143,423 1,065,104
Loans and lease
finance receivables 1,160,999 1,043,452
Less allowance for
credit losses (20,683) (19,466)
Net loans and lease
finance receivables 1,140,316 1,023,986
Total earning assets 2,338,695 2,094,084
Cash and due from banks 102,377 97,822
Premises and equipment, net 30,163 27,369
Other real estate owned, net 0 359
Goodwill and intangibles 6,445 7,282
Other assets 26,768 32,747
TOTAL $ 2,504,448 $ 2,259,663
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 731,146 $ 609,723
Interest-bearing 1,138,695 972,877
Total Deposits 1,869,841 1,582,600
Other borrowings 375,877 457,153
Other liabilities 30,014 25,456
Total Liabilities 2,275,732 2,065,209
Stockholders' equity:
Stockholders' equity 214,875 187,531
Accumulated other
comprehensive income
(loss), net of tax 13,841 6,923
228,716 194,454
TOTAL $ 2,504,448 $ 2,259,663
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the Three Months
Ended March 31,
2002 2001
Interest Income:
Loans, including fees $ 21,125 $ 23,176
Investment securities:
taxable 11,137 12,941
Tax-advantaged 4,105 3,753
Total investment income 15,242 16,694
Federal funds sold 266 68
Total interest income 36,633 39,938
Interest Expense:
Deposits 5,292 9,303
Borrowings 4,703 6,636
Total interest expense 9,995 15,939
Net interest income before
provision for credit losses 26,638 23,999
Provision for credit losses 0 750
Net interest income after
provision for credit losses 26,638 23,249
Other Operating Income:
Service charges on deposit accounts 3,299 3,146
Trust services 1,012 1,109
Gain(Loss) on sale of securities 3,071 (605)
Gain on sale of other real estate owned 0 0
Other 1,102 2,021
Total other operating income 8,484 5,671
Other operating expenses:
Salaries and employee benefits 8,513 7,933
Occupancy 1,535 1,387
Equipment 1,453 1,223
Professional services 882 1,255
Goodwill Amortization 40 274
OREO expense 0 25
Other 3,074 3,000
Total other operating expenses 15,497 15,097
Earnings before income taxes 19,625 13,823
Income taxes 7,308 5,014
Net earnings $ 12,317 $ 8,809
Basic earnings per common share $ 0.35 $ 0.26
Diluted earnings per common share $ 0.35 $ 0.25
Cash dividends per common share $ 0.14 $ 0.14
All per share information has been retroactively adjusted to
reflect the 5-for-4 stock split declared on Dec. 19, 2001.
Three months ended March 31
2002 2001
Interest income -
(Tax Effective)(te) 38,357 41,514
Interest Expense 9,995 15,939
Net Interest income - (te) 28,362 25,575
Gain(Loss) on sale of securities 3,071 (605)
Gain on sale of OREO 0 0
Return on average assets 1.99% 1.58%
Return on average equity 21.84% 18.37%
Efficiency ratio 44.12% 50.88%
Net interest margin (te) 4.88% 4.91%
Weighted average shares outstanding
Diluted 35,583,093 35,258,135
Basic 34,848,050 34,628,361
Dividend payout ratio 39.65% 37.78%
Number of shares outstanding-EOP 34,882,946 34,690,573
Book value per share 6.41 5.74
March 31
2002 2001
Non-performing Assets
(dollar amount in thousands):
Non-accrual loans $ 1,340 $ 885
Loans past due 90 days or more
and still accruing interest 0 86
Restructured loans 0 0
Other real estate owned (OREO), net 0 358
Total non-performing assets $ 1,340 $ 1,329
Percentage of non-performing assets
to total loans outstanding and OREO 0.12% 0.13%
Percentage of non-performing
assets to total assets 0.05% 0.06%
Non-performing loans to
allowance for loan losses 6.36% 4.42%
Net loan losses to Average loans -0.21% -0.05%
Allowance for Credit Losses at
Beginning of Period $ 20,469 $ 19,152
Total Loans Charged-Off 52 1
Total Loans Recovered (657) (120)
Net Loans Charged-Off (605) (119)
Provision Charged to Operating Expense 0 750
Allowance for Credit Losses at
End of period 21,074 20,021
Contact: D. Linn Wiley
909-980-4030