ONTARIO, Calif.--(BUSINESS WIRE)--July 16, 2003--CVB Financial Corp. (Nasdaq:CVBF) and its subsidiary, Citizens Business Bank, announced record results for the second quarter of 2003. This included record deposits, record loans, record assets and record earnings. It was the 45th consecutive quarter of record earnings for the company.
CVB Financial Corp. reported net income of $12.5 million for the second quarter ending June 30, 2003. This represents an increase of $900,000, or 7.58%, when compared with the $11.6 million in net income reported for the second quarter of 2002. Diluted earnings per share were $0.28 for the second quarter of 2003.
This is up $0.02, or 7.69%, when compared with earnings per share of $0.26 for the second quarter of 2002. Earnings results for the second quarter of 2003 produced a return on beginning equity of 18.87%, a return on average equity of 18.43% and a return on average assets of 1.48%. The efficiency ratio for the second quarter was 48.23%.
Net income for the six months ending June 30, 2003 was $25.2 million. This represents an increase of $1.3 million, or 5.29%, when compared with net earnings of $24 million for the first half of 2002. Diluted earnings per share were $0.57. This was up $0.03, or 5.56%, from diluted earnings per share of $0.54 for the same period last year.
Net income for the first half of 2003 produced a return on beginning equity of 19.58%, a return on average equity of 18.82% and a return on average assets of 1.57%. The efficiency ratio for the first half was 47.36%.
During the first six months of 2002, the company realized a net gain after taxes of $1.8 million from the sale of securities. This increased earnings from $22.2 million from operations to the $24.0 million total for the six-month period. In the first six months of this year, the net gain after taxes from securities sales was $477,000.
This increased net income from $24.7 million from operations to a total of $25.2 million for the first six months ended June 30, 2003. Net income from operations for the first six months of 2003 of $24.7 million was up $2.5 million, or 11.26%, over the net income from operations for the first six months of 2002 of $22.2 million.
At June 30, 2003, total assets were $3.52 billion. This represents an increase of $656.7 million, or 22.97%, over the $2.86 billion in total assets reported on June 30, 2002. Total deposits rose to $2.41 billion. This is up $295.7 million, or 14.00%, from $2.11 billion last year.
Gross loans and leases grew to $1.50 billion as of June 30, 2003. This is an increase of $238.5 million, or 18.85%, from $1.27 billion in gross loans and leases on June 30, 2002. The Wealth Management Group has approximately $1 billion in assets under administration.
CVB Financial Corp reported non-performing assets of $1.1 million as of June 30, 2003. This represents a ratio of non-performing assets to total assets of 0.03%, and it represents 0.07% of gross loans and leases. The allowance for loan and lease losses was $20.8 million as of June 30, 2003. This represents 1.38% of gross loans and leases, and it compares with 1.88% on June 30, 2002. Non-performing loans and leases were 5.41% of the allowance for loan and lease losses.
Citizens Business Bank is the largest financial institution with headquarters in the Inland Empire Region of Southern California. It serves 26 cities with 33 business financial centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. It's subsidiary, Golden West Financial Services, provides vehicle leasing, equipment leasing and real estate loan services. Shares of CVB Financial Corp. common stock are listed on the Nasdaq under the ticker symbol of CVBF.
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, 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 Dec. 31, 2002, and particularly the discussion on risk factors within that document.
CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
June 30
2003 2002
Assets:
Federal funds sold and
reverse repos $ 0$ 34,200
Investment Securities
available-for-sale 1,824,539 1,386,427
Loans and lease finance
receivables 1,504,116 1,265,605
Less allowance for credit
losses (20,808) (23,780)
Net loans and lease
finance receivables 1,483,308 1,241,825
Total earning assets 3,307,847 2,662,452
Cash and due from banks 114,012 121,499
Premises and equipment, net 31,602 29,211
Goodwill and intangibles 15,404 11,610
Other assets 46,362 33,738
TOTAL $3,515,227$2,858,510
Liabilities and Stockholders'
Equity
Liabilities:
Deposits:
Demand
Deposits (noninterest-bearing) $1,008,555$ 832,082
Investment Checking 204,529 161,144
Savings/MMDA 642,979 603,745
Time Deposits 551,107 514,543
Total Deposits 2,407,170 2,111,514
Other borrowings 787,000 449,000
Other liabilities 49,258 56,613
Total Liabilities 3,243,428 2,617,127
Stockholders' equity:
Stockholders' equity 249,203 220,360
Accumulated other
comprehensive income
(loss), net of tax 22,596 21,023
271,799 241,383
TOTAL $3,515,227$2,858,510CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended Six months ended
June 30June 30
2003 2002 2003 2002
Assets:
Federal funds sold and
reverse repos $ 8,681$ 11,538$ 4,807$ 33,127
Investment securities
available-for-sale 1,714,885 1,294,392 1,582,174 1,219,325
Loans and lease
finance
receivables 1,481,196 1,150,845 1,457,773 1,155,894
Less allowance for
credit
losses (21,384) (21,278) (21,522) (20,982)
Net loans and lease
finance
receivables 1,459,812 1,129,567 1,436,251 1,134,912
Total earning
assets 3,183,378 2,435,497 3,023,232 2,387,364
Cash and due from
banks 108,140 102,809 110,254 102,594
Premises and
equipment, net 31,128 29,573 30,505 29,867
Other real estate
owned, net 0 0 0 0
Goodwill and
intangibles 15,490 6,396 15,611 6,420
Other assets 65,380 33,748 61,549 30,278
TOTAL $3,403,516$2,608,023$3,241,151$2,556,523
Liabilities and
Stockholders'
Equity
Liabilities:
Deposits:
Noninterest-
bearing $ 916,311$ 770,938$ 904,966$ 751,151
Interest-
bearing 1,426,371 1,175,312 1,410,219 1,157,105
Total
Deposits 2,342,682 1,946,250 2,315,185 1,908,256
Other borrowings 705,508 391,818 586,932 381,176
Other liabilities 82,919 39,538 68,796 37,520
Total
Liabilities 3,131,109 2,377,606 2,970,913 2,326,952
Stockholders' equity:
Stockholders'
equity 248,932 219,916 245,690 217,409
Accumulated other
comprehensive
income (loss),
net of tax 23,475 10,501 24,548 12,162
272,407 230,417 270,238 229,571
TOTAL $3,403,516$2,608,023$3,241,151$2,556,523CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the For the
Three Months Six Months
Ended June 30, Ended June 30,
2003 2002 2003 2002
Interest Income:
Loans, including fees $23,813$21,183$47,633$42,307
Investment
securities:
Taxable 12,802 12,400 25,186 23,536
Tax-advantaged 4,021 3,952 8,150 8,056
Total
investment
income 16,823 16,352 33,336 31,592
Federal funds sold 28 54 40 320
Total
interest
income 40,664 37,589 81,009 74,219
Interest Expense:
Deposits 4,266 5,315 8,782 10,607
Borrowings 5,851 4,827 10,441 9,530
Total
interest
expense 10,117 10,142 19,223 20,137
Net interest income
before provision
for credit losses 30,547 27,447 61,786 54,082
Provision for credit
losses 0 0 0 0
Net interest income
after
provision for
credit losses 30,547 27,447 61,786 54,082
Other Operating Income:
Service charges on
deposit accounts 3,749 3,456 7,445 6,755
Wealth Management
services 925 959 1,972 1,971
Gain (Loss) on sale
of securities 29 25 823 3,096
Gain on sale of
other real estate
owned 0 0 0 0
Other 1,777 1,860 3,129 2,963
Total other
operating
income 6,480 6,300 13,369 14,785
Other operating
expenses:
Salaries and
employee benefits 9,907 8,637 19,895 17,149
Occupancy 1,621 1,593 3,172 3,128
Equipment 1,579 1,440 3,071 2,893
Professional
services 1,302 1,182 1,983 2,063
Goodwill
Amortization 204 40 315 79
Other 3,245 3,131 7,161 6,205
Total other
operating
expenses 17,858 16,023 35,597 31,517
Earnings before income
taxes 19,169 17,724 39,558 37,350
Income taxes 6,649 6,085 14,334 13,393
Net earnings $12,520$11,639$25,224$23,957
Basic earnings per
common share $ 0.29$ 0.26$ 0.58$ 0.54
Diluted earnings per
common share $ 0.28$ 0.26$ 0.57$ 0.54
Cash dividends per
common share $ 0.12$ 0.14$ 0.24$ 0.28
All per share information has been retroactively adjusted to reflect
the 5-for-4 stock split declared on Dec. 19, 2002.
CVB FINANCIAL CORP.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
Dollar Amounts in Thousands, Except Per Share
Three months ended Six months ended
June 30June 30
2003 2002 2003 2002
Interest income
-- (Tax
Effective)(te) $42,071$38,972$83,862$77,039
Interest
Expense 10,117 10,142 19,223 20,137
Net Interest
income -- (te) $31,954$28,830$64,639$56,902
Gain (Loss) on
sale of
securities $29$25$823$3,096
Gain on sale of
OREO $0$0$0$0
Return on
average assets 1.48% 1.79% 1.57% 1.89%
Return on
average equity 18.43% 20.26% 18.82% 21.04%
Efficiency
ratio 48.23% 47.48% 47.36% 45.77%
Net interest
margin (te) 4.00% 4.79% 4.31% 4.76%
Weighted
average shares
outstanding
Diluted 44,631,733 44,592,684 44,594,295 44,677,613
Basic 43,778,659 43,643,959 43,707,780 43,740,506
Dividend payout
ratio 41.93% 41.99% 41.84% 44.67%
Number of
shares
outstanding --
EOP 43,740,020 43,627,329
Book value per
share $6.21$5.53June 30
2003 2002
Non-performing
Assets (dollar
amount in
thousands):
Non-accrual
loans $1,126$835
Loans past due
90 days or
more and still
accruing interest 0 1
Restructured loans 0 0
Other real estate owned
(OREO), net 0 0
Total non-performing
assets $1,126$836
Percentage of
non-performing
assets to total
loans outstanding
and OREO 0.07% 0.07%
Percentage of
non-performing
assets to total
assets 0.03% 0.03%
Non-performing
loans to allowance
for loan losses 5.41% 3.51%
Net loan losses
to Average loans 0.12% -0.17%
Allowance for
Credit Losses
at Beginning
of Period:
Citizens
Business Bank $21,666$20,469
Acquisition
of Western
Security Bank 2,325
Total Loans
Charged-Off 1,309 54
Total Loans
Recovered (451) (1,040)
Net Loans
Charged-Off 858 (986)
Provision Charged
to Operating Expense 0 0
Allowance for
Credit Losses
at End of period $20,808$23,780
CONTACT: CVB Financial Corp., Ontario
D. Linn Wiley, 909-980-4030
SOURCE: CVB Financial Corp.